Alexey Skobelkin of Raw Ventures: 5 Things I Need To See Before Making A VC Investment

An Interview With Jason Hartman

Competent Team with Relevant Experience: We look for teams with expertise in their chosen niche and industry. Advisors from the target industry can further enhance the team’s credibility.

As part of our series called “5 Things I Need To See Before Making A VC Investment” we had the pleasure of interviewing Alexey Skobelkin.

Alexey Skobelkin is a CPO of Raw Ventures and a product leader with over 15 years of experience in management, business development, IT and engineering. He has been integral in the launch, search and analysis of 100+ digital products in different sectors, evaluated 14 due diligence cases, and led 7 M&A deals. He has driven portfolio revenue growth from $116 million to $207 million per year and implemented 50+ product processes.

Thank you so much for joining us in this interview series! Before we dig in, our readers would like to get to know you a bit. Can you please share with us the “backstory” behind what brought you to this specific career path?

I studied systems engineering, specializing in automated control systems and information processing. The key subjects in our department included Mathematical Statistics, Probability Theory, Optimal Planning and Control, and Cybernetics, among other topics considered essential to understand the development of information technologies in our time. While still a student, I started working in the IT field, and over the years, I progressed from a systems administrator and support engineer to CIO and director of digital transformation. After that, I worked in IT in the banking sector, and then, went to work for a large FMCG company. I was also a part of the IT department in the largest private medical network in my country, and in a leading company in the telecommunications industry.

As I became interested in business, I decided to pivot, shifting towards product development and portfolio management. I worked in these roles for a large telecommunications corporation. Later on, I moved into business development, and in this field, I had the chance to work with startups and negotiate M&A deals. This journey naturally led me to the world of venture capital and investments, where I am currently working.

Embracing the opportunity to work across different fields and industries led me to gain very valuable experience, and to understand how technologies operate in different types of businesses. I learned how products are launched and developed, how different frameworks work, and when they are applicable.

Is there a particular book that made a significant impact on you? Can you share a story or explain why it resonated with you so much?

Often, people expect mentions of popular and trendy books like “Thinking, Fast and Slow” by Daniel Kahneman or “The Black Swan” by Nassim Taleb, or even “Sapiens” or “Homo Deus” by Yuval Noah Harari. While these are wonderful books that help make sense of the world and our crazy reality in meaningful ways, the book that had the most profound influence on me is “Burning Daylight” by Jack London. I read it during my childhood, and it deeply impacted my aspirations and values. The title of this book even serves as my life motto.

Do you have a favorite “Life Lesson Quote”? Do you have a story about how that was relevant in your life or your work?

Having pursued a sports degree in basketball during my high school years and being a passionate fan of the game, I’ve always resonated with Michael Jordan’s quote: “Talent wins games, but teamwork and intelligence win championships.” This wisdom goes beyond the court and has shaped my approach to teamwork and strategy, both in sports and in the business world. Also, I often use this quote by W. Edwards Deming: “In God we trust; all others must bring data.” It proves highly valuable when working with startups.

How do you define “Leadership”? Can you explain what you mean or give an example?

Considering that there are various types of leadership, I believe that the applicability of different approaches and behaviors can vary depending on the context. My experience shows that authoritarian leadership can be effective in certain situations. However, personally, I find myself more aligned with leadership styles that are softer, where the leader doesn’t necessarily have to be explicit or formal, but is someone who is naturally accepted by the team and prioritizes the team’s improvement above all else.

How have you used your success to bring goodness to the world?

In the different roles I have played at an investment firm, I have utilized my success to support several projects that foster startup ecosystems and advance industries worldwide. This includes investing in startups in Africa to contribute to the region’s development and promote a thriving startup ecosystem.

As a Head of Product and Tech in an investment company, I’ve fostered innovation by guiding startups towards success, creating jobs, and driving technological advancement. My consulting work also empowers entrepreneurs to develop products that solve real-world problems, aligning profit with social consciousness. By mentoring and advising on creativity and product vision, I’ve helped pave the way for solutions that enhance quality of life and contribute to a more equitable society. Therefore, my success translates into nurturing a culture of responsible innovation and positive social impact.

Ok, thank you for that. Let’s now jump to the main part of our discussion. The United States is currently facing a very important self-reckoning about race, diversity, equality and inclusion. This is, of course a huge topic. But briefly, can you share a few things that need to be done on a broader societal level to expand VC opportunities for women, minorities, and people of color?

As an investment professional, I am deeply committed to creating a more inclusive and diverse venture capital landscape. For me, it’s all about focusing on skills, talent, and potential rather than anyone’s gender, sexuality, or ethnicity. I firmly believe that providing equal opportunities to all aspiring entrepreneurs is not only the right thing to do but also essential for driving innovation and success in the startup ecosystem. By fostering an environment that values merit and capability above all else, we can build a stronger, more vibrant, and inclusive VC community that truly represents the diversity of talent in the world.

In line with this, the more inclusive we are when giving people opportunities, the more we eliminate the “us vs them” mentality that nowadays drives so much of the political discourse. The wealth gap has created a lot of resentment, and this is because often people do not feel like they are being included or feel marginalized. I believe that, when we invest in someone that, historically, has felt unseen or unsupported, we are, in one way or another, changing their view of the world. Instead of feeling like it is them against the world, now they start to believe that it is them with the world, and it is a very empowering feeling. So this increases the odds that this person will succeed, and then, they will invest, mentor or help in any capacity to pay it forward to someone else, and this way, the virtuous circle can keep expanding, providing opportunities for all regardless of their background.

Can you share a story with us about your most successful Angel or VC investment? What was its lesson?

I want to note here that, when I was making corporate investments and M&A, I completed projects with clearly measurable successful results, which led to realized synergies and exponential growth. However, it is in the venture capital industry, where I work now, where we talk about successful exits. But, to answer your question, I must say that most of our portfolio companies will force me to make a difficult choice in two to three years.

However, about the lessons I’ve learned, I can answer now. It was very important for me to understand the importance of creating a positive environment and an atmosphere that helps teams succeed and encourages creative and critical thinking. Thinking, especially collective critical thinking, can be key to correct course and realize the lessons learned from our mistakes.

Can you share a story of an Angel or VC funding failure of yours? What was its lesson?

One of my funding failures was due to internal constraints. The corporation I was working for wasn’t prepared to look at a product based on their strategy at the time, and as a result, the product didn’t take off. Interestingly, the market it could have entered boomed significantly a year later. The lesson I learned from this experience is not to give up and to pay significant attention to the people surrounding the project or startup. Convincing those around you that success will come and being patient are crucial aspects to focus on.

Can you share a story with us about a problem that one of your portfolio companies encountered and how you helped to correct the problem? We’d love to hear the details and what its lesson was.

One of the startups we invested in showed great promise, and we believed in its potential. However, after a while, it became apparent that the company was not achieving the desired traction. Upon further analysis, we identified the root cause — a lack of expertise in product marketing. The team was highly skilled in software development but struggled to effectively market and position their product. Recognizing the importance of resolving this issue, we brought in marketing experts who could provide valuable insights and strategies.

The lesson we learned from this story is that initially, what’s going wrong is not always clear. Sometimes it even seems like there is no problem — the product is being developed, new features are appearing, the team is motivated, but when revenue is supposed to grow, it does not. And in such moments, it is important to set every task aside, and figure out where we are messing up. Because if you can precisely articulate the problem, you’ve already solved it by 50%, and for the other 50%, you have an investor (if it is like us, of course.)

Is there a company that you turned down, but now regret? Can you share the story? What lesson did you learn from that story?

There was an opportunity for a strategic investment in a company that manufactured telecom equipment. However, I decided not to invest because the market seemed overvalued and saturated at that time, and I anticipated a potential market downturn. However, the market dynamics changed radically, and the company ended up occupying a lucrative niche. Consequently, its valuation increased by 12 times, and I realized I missed a big opportunity.

The lesson I learned from this experience is to be cautious about making decisions based solely on short-term market conditions. While it is essential to consider market trends and potential risks, there is a need to evaluate the long-term potential and unique value propositions that a company has to offer.

Super. Here is the main question of this interview. What are your “5 things I need to see before making a VC investment” and why?

Currently our team at Raw Ventures is organizing an initiative for mediatech startups called MediaTech Pitch Day, which simplifies the fundraising process and offers an opportunity to raise up to $1M in investment. We have received a large number of applicants, and these are the things we pay attention to during the selection process:

1. Customer-oriented solution: While a unique product is valuable, we also appreciate innovations that improve existing solutions. Ultimately, the customer pays for a product that solves their problem and meets their needs. So, it’s essential for startups to demonstrate how their product benefits the customer.
2. Realistic Market Assessment: We not only focus on the Total Addressable Market (TAM). Instead, we value a well-defined customer persona and a detailed analysis of the Serviceable Addressable Market (SAM) and Serviceable Obtainable Market (SOM). Don’t forget to show the market in terms of money and customers. If your product is needed by a huge number of people, but you can’t figure out how to monetize it, an investor will help you find monetization strategies, develop synergies with adjacent products, and build the necessary partnerships.
3. Competent Team with Relevant Experience: We look for teams with expertise in their chosen niche and industry. Advisors from the target industry can further enhance the team’s credibility.
4. Financial Forecasts and Monetization Strategy: Even without an MVP, startups must present financial forecasts based on sound business models and unit economics. A clear monetization strategy is essential. If you’re struggling with financial modeling and forecasts, show how much you will earn in three years, how much you will spend, and when you will break even.
5. Demonstrating Future Funding Potential: To capture a venture fund’s attention, showcase your vision for future funding rounds. Outline the next funding rounds with projected numbers and key milestones in a concise format.

You are a person of enormous influence. If you could inspire a movement that would bring the most amount of good to the most amount of people, what would that be? You never know what your idea can trigger. :-)

I would lead a movement to purify the news agenda, free from AI-related stories, but I’m afraid that while I’m gathering supporters, humanity will come up with some new sensationalist headline material :)

But on a serious note, I’d like to engage as many people as possible in a movement for conscious content consumption. First, we would spread the truth that ‘not all content must be consumed,’ and second, we would spark critical thinking in people.

We are very blessed that some of the biggest names in Business, VC funding, Sports, and Entertainment read this column. Is there a person in the world, or in the US whom you would love to have a private breakfast or lunch with, and why? He or she might see this. :-)

I would be thrilled to have a conversation with Satya Nadella. As my background revolves around corporate work and product management, his experience and leadership as the CEO of Microsoft are truly remarkable. I’m not sure if anyone else in history has managed to transform such a massive corporation in such a short period of time — in terms of product development, corporate culture, management, and strategy. The main question I would ask him would be something like, “You successfully changed the mindset of a vast number of people at Microsoft. Was there ever a moment in these nine years when you wished you could press Ctrl+Z and revert any changes?”

This was really meaningful! Thank you so much for your time.

About The Interviewer: Jason Hartman is the Founder and CEO of Empowered Investor. Jason has been involved in several thousand real estate transactions and has owned income properties in 11 states and 17 cities. Empowered Investor helps people achieve The American Dream of financial freedom by purchasing income property in prudent markets nationwide. Jason’s Complete Solution for Real Estate Investors™ is a comprehensive system providing real estate investors with education, research, resources and technology to deal with all areas of their income property investment needs. Through Jason’s podcasts, educational events, referrals, mentoring and software to track your investments, investors can easily locate, finance and purchase properties in these exceptional markets with confidence and peace of mind.

Starting with very little, Jason, while still in college at the age of 19, embarked on a career in real estate. While brokering properties for clients, he was investing in his own portfolio along the way. Through creativity, persistence and hard work, he earned a number of prestigious industry awards and became a young multi-millionaire. Jason purchased a California real estate brokerage firm that was later acquired by Coldwell Banker. He combined his dedication and business talents to become a successful entrepreneur, public speaker, author, and media personality. Over the years he developed his Complete Solution for Real Estate Investors™ where his innovative firm educates and assists investors in acquiring prudent investments nationwide for their portfolio. Jason’s sought after educational events, speaking engagements, and his popular “Creating Wealth Podcast” inspire and empower hundreds of thousands of people in 189 countries worldwide.

While running his successful real estate and media businesses, Jason also believes that giving back to the community plays an important role in building strong personal relationships. He established The Jason Hartman Foundation in 2005 to provide financial literacy education to young adults providing the all-important real world skills not taught in school which are the key to the financial stability and success of future generations. We’re in a global monetary crisis caused by decades of misguided policies and the cycle of financial dependence has to be broken, literacy and self-reliance are a good start. Visit JasonHartman.com for free materials and resources.