Florin Pop On Smart Business And How Investors Think

Florin Pop is a seasoned business angel.

He’s a member on a lot of boards of directors.

He invested in famous Romanian startups while they were in the early stage.

And he’s a fun guy to be around.

But it’s more than just work and great times.

Florin Pop understands what it takes to build a community. And he works hard to give back what he learned.

That’s why he took some time to share his story with us.

Because he wasn’t always an entrepreneurial veteran.

Let’s dig deeper.

Florin Pop’s Life In A Snapshot

Florin was born in Cluj, and while he grew up in the countryside, he went on to graduate from The University of Economics.

After getting his Bachelor’s Degree, he did a master in stock exchange, and then went on to become a stock broker.

One of the first stock brokers in Romania.

He then started investing in different enterprises in 2006, and now he enjoys travelling, meeting new people, nature, and mentoring the right entrepreneurs.

The first thing you’ll notice about Florin is that he’s honest.

“I’m not going to lie — I got into the stock exchange to make money, but I was also driven by curiosity, and in the end it taught me a lot.” — Florin Pop

After venturing into the world of stock exchange, he also went on to work in the banking industry. He was a consultant for Banca Transilvania, which taught him the importance of networking and building foreign relationships.

All of those experiences bundled up together…

Made him realize he wants to do more with his time.

Making money wasn’t enough anymore.

So he chose to become an investor.

“Even while I was still a banker, and still wanted to make loads of money, I still felt something was off. That’s why I changed the path I was on, and I’m very happy I did that.” — Florin Pop

The Life Of An Active Investor

After exiting the stock exchange world, Florin went on to found a consultancy business. He uses that entity to invest and do asset management even today.

When they started, consultancy was in its infancy in Romania.

But there still a lot of offer, and very little demand for their services.

So he restructured the company and made it focused on investments. He still kept an eye on the stock market, but he supported a lot of startups throughout the years.

One of his early investments was in Blugento, an ecommerce startup that flourishes to this day. He also made more obscure investments, for example in a company that sells wood mechanical toys.

Florin did exit both after two or three years.

But he still keeps a close relationship with the founders of those startups.

He also dabbled in an animation studio, for example, but if you want to find out more about his ventures, you’ll need to listen to the full show here.

But no, we’re not done yet.

All those years as an investor taught Florin a lot.

Here’s some of that wisdom…

The first thing he learned as an investor was that psychology and mental well being are very important for any entrepreneur.

But it’s not all clear-cut healing.

“I think our well-being as entrepreneurs is a big issue, but we need to remember that everyone has a different psychological evolution” — Florin Pop

You can take examples from the healing path of other people.

But everyone’s going to grow in a different way.

For example, everyone has different goals. Reaching those goals, in turn, means adapting your healing process to your personal trajectory.

However…

One thing all of us must overcome is fear.

“Everybody has fears. But if we want to grow, it’s essential to face and overcome them.” — Florin Pop

And that’s true for founders and investors alike.

For example, if you have a fear of losing money, that’ll dictate the risk profile of your ventures.

Of course, the quickest way to solve your fears is facing them head-on.

But Florin also has some more tricks up his sleeve.

For example, he’s hell bent on learning from negative experiences. He thinks that’s one of the fastest ways to overcome fears and grow as a person.

On top, it’s also important to surround yourself with people who share your values.

“Attracting the right people around me had a huge impact on my progress. It taught me how to be more open, and that helped me evolve.” — Florin Pop

So definitely get the right people around.

But the thing is…

There’s more to success than that.

You also need to be aware of your own value.

Sometimes that’s hard to do. But Florin found that you can only develop a true understanding of your worth when you gain experience.

So just like him…

You must roll-up your sleeves and put in the hours.

But we don’t want to leave you just yet.

Sure, life lessons are important, especially from someone that’s been around.

However, it’d be a shame if we cut it short without giving you some insights into how business angels and investors think.

How Do Business Angels Choose Who They Invest In?

Well, we can’t speak for everyone, but Florin has a clear mindset when it comes to investing in startups.

“When I look to invest in startups, I don’t just check the return on investment. I’m also thinking about the impact a certain startup can have for the community, and we should never lose sight of that.” — Florin Pop

When you want to invest in stocks or regular companies, you need to look at the numbers.

With startups, besides the amazing enthusiasm they usually bring to the table, you also have the chance to think about other things.

But you do need a certain mindset to invest in startups.

Florin’s former colleagues from stock exchange have a hard time enjoying startup investments.

They’re caught up in the numbers of the deal.

“The bottom line is this: Investing in startups is all about investing in people, teams products, and ideas, not numbers.” — Florin Pop

And that’s 10 times more enjoyable than just looking at the numbers.

It’s even impossible to look at the numbers in some cases. In the early stage, some startups don’t have the figures.

However…

You do need to balance all of that enthusiasm with rational thinking.

So Florin has a clear process for financing startups.

And the first step…

A visionary.

“Every startup needs a visionary. Someone who’s able to bring people together and make them strive towards a common goal. That’s the first thing I look for before investing in a startup.” — Florin Pop

The right leader is a guarantee that the company will succeed.

So Florin takes that into consideration before investing.

Up next, he checks a few other things that a worthy startup needs:

• A good team, with competent people.
• The right product, which is clearly differentiated on the market and innovative
• A well thought out business model, and Florin usually prefers B2B, subscription based models
• An exit strategy and a clear plan for the financing rounds

When numbers do exist, Florin looks at income and the evolution of income in time.

From his point of view, the proof of sales and the capacity to increase income, those are way more important than profit margin.

But not all startups have that.

(although it’s pretty important)

So what can we do about it?

Lessons For Aspiring Entrepreneurs

In Eastern Europe, we have less managerial experience, and less entrepreneurial culture. We’re working on it, but there’s still room for improvement.

Florin has met people involved in the European ecosystem that do a great job.

But we need to focus on developing leadership skills more.

In fact, Florin has three clear areas where founders need to excel at:

• Leadership
• Teamwork
• Planning

Those are cornerstones of a successful startup.

Hey, and if you don’t have them yet, don’t worry. The key is to understand you need them and work on building them.

One of the best ways to do that is…

Communicate honestly and get rid of your ego. We know it’s your project, but don’t be afraid to stop it from changing.

Because it will change.

Besides getting out of his comfort zone, that was the hardest thing Florin had to do:

Fighting the ego.

But you can do better.

Accept the change coming your way and make the best of it.

Oh And, One More Thing

This article was a retelling of one of our Fireside chats.

We spoke to Florin, had a great time, and learned a lot.

If you missed it, you can still watch it here.

Just make sure you go into it with an open mind.

And make sure you strive to be the best version of yourself. Fight your fears, fight your ego and, if you need to, become the visionary investors are looking for.

Your future self will thank you for it.