Working as an Investment Analyst: chats with Sean Stuart

Sean is an investment analyst at Aura Group. He obtained a bachelor’s degree in Science and Law at the University of Sydney and has actively committed himself to a variety of roles with his book The Curious Ape published through Amazon and his internship positions at Blackbird Ventures and Perx Health. We spoke to him about his journey into startups, what it’s like to be an investment analyst and future goals.

How did Sean get interested in the startup space?

Sean’s interest in the startup space was ignited at an early age where he began selling secondhand laptops at school and also started his own photography business. He was enticed by the flat organisational structures and idea meritocracies. He believes the flatter hierarchy enables unrivalled creativity and innovation.

“The stubbornness and passion entrepreneurs have really interested me.”

Intel was one of the first organisations to adopt a flat hierarchy and set the tone for the next generation of companies in Silicon Valley. Sean mentioned the American technology company and its founder Robert Noyce as a personal hero. He embodied both a laissez-faire approach to management with a radical stubbornness to change the future.

“I couldn’t help but be drawn towards these contrarian companies challenging the status quo.”

What does a typical day as an Investment Analyst look like?

There are a vast array of things Sean could do in a typical day within his role at Aura Group.

1. Dealing with opportunities

This involves deal sourcing and deal screening. Every analyst is always trying to find the best founders and Aussie start-ups to back. While every approach is different, this often involves monitoring metrics as well as meeting with as many founders as possible.

Sean also assisted in developing Aura’s investment thesis to recommend new investments.

The process also involves conducting due diligence on companies that Aura might potentially invest in. This process involves financial modelling, research and matching the opportunity to the investment thesis.

2. Portfolio management

There’s a lot involved with managing a portfolio. Analysts act as a support role for the very experienced members of the team who provide guidance and analysis to their portfolio companies. Evaluating markets, offering pricing strategies and assisting with M&A are all important parts of the job. Sean says that a highlight of the role has been working with the amazing team at Shippit who are a portfolio company of Aura Ventures.

What are the most important things investors look for in a portfolio company?

There are a lot of things investors, and more specifically, investment analysts like Sean look for in portfolio companies. Sean emphasised how much he had to learn and that making definitive and absolute statements in investing is asking for trouble.

“We want to back the best Aussie founders,” Sean explains when discussing the decision process.

There are a lot of things venture capital firms look for and the judging criteria are far from unanimously agreed upon.

“Great teams, great products and great markets are about all that VC’s agree on. In terms of the relative weight of each, there is no shortage of debate.”

There is a lot more granularity that goes into assessing the strength of opportunities but at the end of the day, all VC’s really want is an exceptional team going after a large market with a product that people love.

What does the future look like for Sean?

The idea of drawing a concrete blueprint is not a part of Sean’s approach to the future.

“I used to be ambitious in goals, but now I’m modest in goals and ambitious with action.”

“With the pandemic, the future is hard to envisage and control. Focusing on the present is more important for me than setting out grand future plans.”

Sean emphasises the importance of goal setting and future planning, but he refrains from setting definite long-term goals. Instead, he concentrates on refining his present work, keeping his feet on the ground.

A goal without a plan is only a wish. Sean stresses the need to commit to short-term plans that go towards a goal without narrowing one’s mindset.

How Failures and Hardships Build to Future Success

Failures and hardships are obstacles that everyone eventually runs into — big and small, significant and trivial — but the value comes from the journey of solving them.

For Sean, he said his biggest failure was not learning enough before he joined the startup world.

“I think there is a lot of emphasis on young people joining start-ups right now. It’s a great movement. But what is often not talked about, is that this is a very different world to multinational corporates that often have monopolies over the industry. Naturally, these organisations have a lot of time and money to invest in young graduates. Start-ups are often on the brink of success or failure and require you to bring your absolute A-game. My biggest failure was not developing more skills before I joined the big league. That’s my biggest failure and piece of advice — learn more, provide value.”

“Start-ups are like the NBA,” — Michael Siebel

Finding an employer that’s right for your skills is great for both you and the employer. You have the time and room to develop yourself without having to stress.

Tips and Resources for Interested Students

1. Skill Set

Building and expanding a skill set is important for stretching your capabilities. Don’t go to big start-ups with a low skill set. It’s important to build on your capabilities to make sure that you are able to thrive in any work environment for any employer.

2. Relevant Knowledge

Having the right knowledge before stepping into the industry is critical. It is possible to attain relevant knowledge even if you’re not studying a course related to business or technology. You can try to join societies and events such as case competitions and mentor programs to get yourself familiarised with the information.

In terms of reading, Sean recommends Paul Graham’s Essays, Lenny’s Newsletter and pretty much anything by A16z.

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