EKMH Innovators Interview Series
An interview series spotlighting global tech influencers, disruptors, visionaries, and of course, innovators.
Many readers are seeking qualified information about how to move forward in the current global economic environment, ranging from investing to communicating well virtually to finding a job during and after the quarantine.
As the Founder and General Partner of Blockchain Valley Ventures, Heinrich Zetlmayer not only has built long-term relationships with his portfolio companies but also possesses vast experience in turning around small and medium-sized businesses in periods of distress.
Based in Zurich, Switzerland, Zetlmayer commits his capital to blockchain and Artificial Intelligence (A.I.) start-ups that are putting forward technology solutions in supply chain management and trade finance. Zetlmayer also invests in digital asset payments companies and competitive gaming; he was Co-CEO of competitive gaming giant ESL, when it was acquired by Modern Times Group in 2015 for €74 million. Prior to founding Blockchain Valley Ventures, Zetlmayer served as VP and Country Manager at IBM Switzerland and was a Senior Partner at Arthur D. Little.
Launched in 2018 in the center of the Crypto Valley, Swiss-based Blockchain Valley Ventures originally came to life as a spin-off from blockchain-based trading pioneer Lykke Corporation. The BVV team, a mixture of successful entrepreneurs, finance professionals and business executives, seeks to address the clear market opportunity for smart investments in the blockchain ecosystem. Through its venture capital, its digital asset and corporate finance advisory practice, BVV is pioneering a hybrid approach to evaluating, developing and investing in blockchain-enabled businesses combining venture capital with token offerings. Some of BVV portfolio startups include Smart Containers, Securosys, Teleport, Sanostro, Ebakus, Cloudeo, Modum, Lykke, RiceX, Instimatch, EX Sports, Keyless, Peddler, Coinfirm, Veratrak, Measure Protocol and Algotrader.
Amid the challenging environment startups currently find themselves, VCs and angel investors can play a crucial role in supporting portfolio companies navigate these uncertain times. I connected with Zetlmayer via email to learn more about his insight on a wide range of topics including how Venture Capital firms and early-stage investors can respond effectively in supporting portfolio companies during and after the COVID-19 quarantine economic environments, his advice for successful global communication, suggestions for securing new employment and issues currently facing the blockchain community. Our interview follows.
EKMH: What techniques have you adapted in your daily schedule to ensure you and your team’s connectivity and productivity during the quarantine?
Heinrich Zetlmayer: Due to having offices in multiple locations around the world, we are accustomed to remote working. We use the various video conference tools, as well as electronic document signing tools like Hellosign to keep in touch and support our colleagues and partners. What we have changed is that we try to always have the video camera on to give more visibility to colleagues, partners and clients. This allows for better engagement and overcomes some of the challenges with social distancing.
EKMH: What are the keys to not only staying in touch and communicating well, but also effectively troubleshooting and problem solving?
Heinrich Zetlmayer: For formal documentation, we still need access to print, sign, scan and mail documents in the original paper version, as certain public and banking processes, even today, only work with “wet” signatures. In order to keep informed and stay on top of outstanding business, I’ve found that the rate of communication has to be increased by at least three-fold with everybody in lockdown.
EKMH: What past experiences have helped you grow as a global leader?
Heinrich Zetlmayer: I’ve always had management responsibility for challenging situations, focusing on strong growth and turnaround situations. I think turnarounds shaped me the most because of the added survival threat, along with the normal challenges in business. You always learn more from challenging situations, and turnaround solutions are a big part of this learning curve.
Secondly, my experience working in both large corporations, as well as smaller companies, from staff to board level exposed me to working effectively with every level and gave me experience in many situations. Business managers that only work in one environment all their lives will always have more difficulties adapting to new and challenging situations.
EKMH: On 3rd April the Online Seedstars Summit 2020 commenced. What did you hope to address during the Summit?
Heinrich Zetlmayer: Our main objective was to understand how the entrepreneurs are shaping industries.
EKMH: Through its offices in Zug, Zurich, Singapore and partners in London, Paris and Shanghai BVV provides global coverage of blockchain technology and innovation. What issues are currently facing the blockchain community?
Heinrich Zetlmayer: The most immediate challenge is pooling investors together with startups. Until recently, we had a very good climate for entrepreneurs. A lot of PoV and Pilots produced a vibrant industry and with that, also a vibrant investor and conference community. So, of the 12,000 blockchain companies we have today, many will struggle. At the same time, there are strong opportunities for blockchain to gain enormous awareness and prominence as a solution to tackling problems, such as aid tracking and distribution, supply chain tracking and transparency, and simply enabling much better financial processes online.
EKMH: What opportunities do you see for blockchain technology and emerging business models to bring to companies post-pandemic? Please share more about BVV's portfolio vetting and selection process.
Heinrich Zetlmayer: Since our inception, what we have focused on is enabling much better and new business applications and processes in areas like institutional and retail finance, pharmaceuticals, and industrial segments. Blockchain has the potential to enable trusted digital and online processes, and data sharing across different entities and geographies. This is providing cost savings to many dated manual or semi-manual processes, and bringing about totally new methods of value-added activities.
For example, there is a whole industry focusing on user authentication to manage the explosion of personal passwords and private keys. We had chosen to invest in Keyless because they have solved the problem in the most disruptive and authentic way. Keyless is completely eliminating the need for passwords and just having biometric information, combined with cryptographic methods from the blockchain world in a safe and secure way. The current crisis is helping to speed up the acceptance of solutions like Keyless as it becomes a necessity, and not just a new way of doing things.
EKMH: Due to COVID-19, the employment market will be in flux. What advice do you have about the interview process for those entering the blockchain sector and for those remaining in the sector?
Heinrich Zetlmayer: Unfortunately, many companies will be forced to dissolve. However, this also means that there will be a lot of good people available. My recommendation is to always make the effort to choose companies you truly want to work for. Target and approach them and see how you are relevant to their success. Don’t forget to use your contacts for recommendations. Just sending CVs will not be enough as you will be one of many. You need to act like a startup yourself, and take a proactive approach.
EKMH: And finally, which books are you currently reading and which books would you recommend to readers?
Heinrich Zetlmayer: I recently picked up Michael Porter’s Competitive Strategy again, as it offers a grounding in some of the basics. It is extremely helpful as I think through all the various blockchain sectors, and wonder how they will evolve, and which of them will be able to carve out leadership positions. That combined with Blitzscaling by Reid Hoffmann and Chris Yeh, which I recently read, offers a great understanding of our current market situation.
*Disclaimer: The views and opinions expressed in this series are those of the speakers and do not necessarily reflect the views or positions of any entities they represent.
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