My time as a Sturgeon intern - Part II
Some of the different projects I was involved in
As a follow-up to my previous blog post, I wanted to share some more insights that may benefit individuals applying for Sturgeon's upcoming summer internship or any undergraduate aspiring to join the world of VC. If you missed my previous blog post, where I cover 23 things I learned during my summer internship at Sturgeon, I recommend you read that first. You can find the post here.
Here, I will provide an overview of some of the projects I had the opportunity to take charge of during my summer internship. Where necessary, I will define and explain different abbreviations/names of software Sturgeon use. The list of projects I will cover in this piece are shown in the list below:
1.    SEO I Comparables and Notion Database
2.    DealCloud Data Building
3.    iLevel Data Enhancement
4.    UzVC Investment Committee Preparation
5.    Push30 – An Azerbaijani Multi-Gym Access Platform
6.    Hexa Initial Founder Call: Exploring Opportunities
7.    Venturing into Geopolitics – Georgia Jurisdictional Risk Assessment
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1. SEO I Comparables and Notion Database
Timeframe: 2.5 weeks (initially allocated 2 weeks)
Project Purpose: My objective in this project was to gain a deeper understanding of Sturgeon Capital's portfolio companies within the SEO I (Sturgeon Emerging Opportunities I) fund. Alongside my fellow intern, Zhen, we aimed to create concise yet informative one-page summaries for the top 2-3 comparable companies associated with each SEO I portfolio company.
Key Insights
The immense value of understanding the journey of comparable companies was clear. Our one-page summaries included essential data such as their inception, fundraising, valuation evolution, and the evolution of their business model. This offered a snapshot of each company's growth trajectory.
Moreover, we examined the current state of these companies, specifically their growth stage and whether they had remained privately held or undergone acquisitions. This data not only provided valuable insights into their present status but also hinted at the strategies and opportunities that had been used in similar emerging markets.
Thoughts on the Process
The process involved extensive research and data compilation. To make this task accessible to the Sturgeon team, we decided to employ Notion, a productivity and note-taking web application. Notion allowed us to create a visual, interconnected representation of our research, making it more user-friendly.
Before transferring our research onto Notion, I collected information on the comparables I had identified. In collaboration with Zhen, we divided the SEO I portfolio by sector, and I focused on Marketplaces and Fintech Infrastructure. We documented our findings in Word documents for later incorporation into Notion.
Notion as the Perfect Platform
Notion's flexibility played a pivotal role in streamlining our project. It enabled us to store our research in one cohesive location and clearly illustrate the connections between different pieces of information.
Once our research was complete, we moved on to constructing the exit database within Notion. We separated this into two categories: acquisitions and comparables databases.
For the acquisitions database, Zhen and I aimed to present the exit data in an interactive mind map format. This feature allowed Sturgeon's team to efficiently access the information they required. Using the 'Mermaid' coding language within Notion, we created a JavaScript-based diagram that visually displayed the exit data in an easily digestible manner.
Key Takeaway
This project underscored the significance of comprehensive research and the benefits of using tools like Notion to facilitate data management and accessibility. It also emphasized the need for in-depth data on acquisitions and comparables to enhance decision-making within emerging markets. If given more time, delving further into valuations of acquisitions would have been a valuable addition to the project.
2. DealCloud Data Building
Timeframe: 2 months (initially allocated 1 month)
Project Purpose: The primary goal of the DealCloud project was to enhance the completeness and depth of the data in Sturgeon’s CRM system, which is instrumental in tracking deal flow and fundraising activities. Our focus was directed towards gaining an overview of the venture ecosystems within our Central and South Asian investment territories. Key areas of concentration included deal flow and potential co-investors.
Key Insights
DealCloud, the CRM system employed by Sturgeon Capital, serves as a database for monitoring of deal flow and fundraising endeavours. My fellow intern, Zhen, and I were tasked with expanding the DealCloud database to encompass VC firms operating in Central and South Asia, including both international VCs and those from the GCC region. Additionally, we paid attention to later-stage VCs that held the potential for involvement in later investment rounds. We also sought to populate the database with their relevant portfolio companies.
Data Points of Significance
The nature of the information we needed to collate was multifaceted and included:
Investment thesis of VC firms.
A comprehensive list of portfolio companies actively engaged within Sturgeon's investment territories.
Identification of key team members within VCs and respective portfolio companies.
For the relevant portfolio companies, we were tasked with sourcing:
Website information.
Detailed business descriptions.
Sector classifications.
Year of founding.
Founder(s) information.
List of existing investors.
Details regarding the most recent funding round (stage, capital raised, valuation).
Thoughts on the Process
This project was straightforward in terms of its objectives, but it proved to be research-intensive, time-consuming, and demanding in terms of data administration. The sheer volume of data that needed to be gathered and organized made it challenging to allocate large chunks of time to the project, especially considering the simultaneous progress of several other more exciting projects.
Looking back, our manager, Robin, had advised us to tackle the task in smaller increments — just 30 minutes a day. We did not follow this advice, leading to a last-minute rush during the final days of our internship to ensure that the DealCloud database contained comprehensive and detailed information about VCs and their portfolio companies. Below is an example of a completed VC page on DealCloud:
Key Takeaway
The project emphasized the importance of managing time effectively and breaking down complex, time-intensive tasks into manageable daily portions. Implementing a daily 30-minute routine would have certainly enhanced the project's overall efficiency, but when faced with more exciting tasks to complete, I gave in to my human desire for more instant gratification.
3. iLevel Data Enhancement
Timeframe: 3 months (entire internship duration)
Project Purpose: The objective of the iLevel project was to enhance the portfolio data that Sturgeon Capital had already gathered from their portfolio companies. This entailed collecting desired data points, including KPIs, impact KPIs, and financial information, with a focus on improving completeness.
Key Insights
iLevel, as the portfolio monitoring software of choice for Sturgeon Capital, plays a pivotal role in collecting and managing data from portfolio companies. However, previous attempts to gather this information from founders revealed challenges such as data gaps and slow response times. These past setbacks were a driving factor in extending the timeline for this project to span the entire duration of my internship.
The Approaches
 Attempt 1
Attempt 2
1.    Missing data request sent to Sturgeon rep.
2.    Sturgeon rep. contacts founder
3.    founder finds missing data
4.    founder collates missing data
5.    founder sends data back to Sturgeon rep.
6.    Sturgeon rep. sends me the data
7.    I input missing data into iLlevel
1.    Request Sturgeon rep. to put me in contact with founder
2.    I give founder a formatted spreadsheet showing missing data
3.    Founder fills out missing data and sends back to me
4.    I upload missing data into iLevel
My first data collection attempt was inefficient and resulted in no responses to my data requests. The second attempt was far more efficient and resulted in all the data being collected. My involvement in more pressing tasks with tight deadlines caused me to temporarily set aside the iLevel project after my first attempt. However, I later returned with renewed determination to improve response rates. This is when attempt 2 was conducted.
Key Takeaway
A valuable lesson learned from this project was the need to formulate a clear data collection plan from the outset, which would have enabled the project's completion earlier in the internship. Like my experience with the DealCloud project, I shifted my focus from this task as more engaging projects were assigned to me. It is worth noting that not all tasks are exciting, yet recognising the inherent value and purpose in each assignment is essential. Every task, no matter how mundane, contributes to the greater objectives of the Sturgeon team.
4. UzVC Investment Committee Preparation
Timeframe: 3 weeks (initially allocated 2.5 weeks)
Project Purpose: The UzVC project marked a transition from the learning and observational phase of our internship to the practical application of the skills we had acquired during the first half. Its primary objective was to create an IC (Investment Committee) memo to support our recommendations when presenting companies to the IC. We divided the UzVC portfolio equally, and I focused on researching Tass Vision, Sugurta Bozor, and ModMe.
Key Insights
UzVC is an incubator/accelerator fund in Uzbekistan, in which Sturgeon Capital has strong ties. UzVC invests at an earlier stage (pre-seed) than Sturgeon, making their portfolio a valuable source for potential future deal flow in Sturgeon's core funds.
The IC Memo
The IC memo served as a comprehensive document encompassing various sections, each crucial in evaluating the potential of a company:
Summary
Sturgeon View
Decision Driver Matrix
Team
Problem: Market & Competition
Solution: Product & Technology
GTM Strategy
Traction
Business Model
Sturgeon Relationship
Future Success
Challenges
Funding & Valuation
Impact
The Due Diligence Process
To complete these memos, Zhen and I conducted due diligence interviews with the founders of the respective companies. Other due diligence practices used were sending DD questionnaires to founders, analysing their financials and KPIs, as well as follow-up email with any smaller questions we had.
Key Takeaway
The most vital aspect of conducting research for a potential investment is to start from first principles. This involves identifying whether the business is developing any economic moats that will guarantee its success against competitors, both established and emerging. It also entails identifying the 3-5 variables that the company must manage and control to ensure its success.
Presenting to the IC
Once the research was complete and the IC memos were finalized, I submitted them to the Sturgeon IC committee a few days before our scheduled meeting. This presentation was a unique challenge, as it marked my first attempt at presenting an investment to a room full of seasoned investors. Despite my nervousness, I remembered that there are no adults in the room, and that this presentation was all part of the learning process of becoming an effective VC analyst. Another thing to remember is that the Q&A after your presentation is not there to catch you out, but to highlight gaps in Sturgeon’s collective knowledge, so the team know which areas require further research during later DD processes. I understand that this part of the process may seem like an attack on your work and your ideas, but it is vital to remember that this is an important part of the DD process and is there to strengthen the investment case, not to break you and your ideas down.
Reflecting on the UzVC Project
The UzVC project was a highlight of my internship at Sturgeon Capital. It required a deep understanding of the investment process and challenged mine and Zhen's ability to apply the knowledge we had gained. It also offered valuable insights into how to assess investment suitability for Sturgeon and the importance of well-structured due diligence. I am confident saying very few VC internships will give interns the opportunity to present investments to IC. From my own previous experiences, I was only allowed to take minutes during IC meetings or speak to one or two sections of a company at most, so having the opportunity to present live deals to IC was a unique opportunity.
5. Push30 - An Azerbaijani Multi-Gym Access Platform
Timeframe: 2 weeks
Project Objective: My final project during my internship at Sturgeon Capital was to present another company to the Investment Committee (IC). However, the distinction between this company and the UzVC projects I previously presented was that this company was in the active deal pipeline of Sturgeon's core funds. Like the UzVC process, my responsibility was to meet with the founders of the company and conduct due diligence interviews to gather essential information.
Push30: A Unique Opportunity
The company I worked with was Push30, an Azerbaijani multi-gym access platform. At that time, Push30 was the largest startup in Azerbaijan in terms of revenue and boasted over 8,000 monthly active users. Push30's business model involved partnering with gyms and hospitality businesses, such as hotels, with the promise of boosting sales through hosting their fitness centres on the Push30 platform. Additionally, Push30 collaborated with large corporations, providing them with the opportunity to offer gym-access benefits to their employees. This arrangement allowed employees to choose from a wide array of gyms, offering far more options than the largest gym chain in Azerbaijan, which had only seven gyms in comparison to Push30's 300+ gyms.
Detailed Due Diligence
Over the span of a week, I engaged in several calls with the Push30 founders and key members of their management team to gain an in-depth understanding of their business and their future. These conversations served as the foundation for a detailed IC memo and a robust investment proposal that I presented to the IC.
Investment Proposal
Unlike some of the UzVC companies that may not have been ready for investment from Sturgeon's core funds, Push30 clearly aligned with our initial requirements and exhibited a promising growth trajectory. I presented a compelling case for investment, and the IC shared my excitement, leading to their agreement that Push30 merited further due diligence.
The Reward of a Shared Vision
Bringing a company to the IC is a demanding and intricate process, requiring considerable effort and dedication. However, when the enthusiasm surrounding a proposal is shared by other team members, it makes the entire journey worthwhile. As of now, Push30 is progressing through the later stages of the due diligence process, on its way to the final IC presentation where Sturgeon will decide whether to invest in this promising venture.
Key Takeaways
The experience with Push30 highlighted the value of thorough due diligence, a compelling investment proposal, and the collaborative spirit of the team. It reinforced the notion that presenting a company to the IC is an endeavour that demands effort, but when met with enthusiasm and shared vision, it can yield significant rewards.
4. Hexa Initial Founder Call: Exploring Opportunities
Timeframe: 1 hour
Project Overview
The Hexa initial founder call was a brief yet insightful encounter in the penultimate week of our internship. Although Zhen and I had limited time to prepare, it provided an excellent opportunity to evaluate Hexa, an EdTech startup focused on online tutoring for International British Curriculum students in some of Sturgeon's target geographies.
Key Objectives
As with most initial screening calls, the primary goal was not to delve deeply into the company's investment proposal but rather to gauge its alignment with our interests and assess the founder, Hamza Yusuff, within a limited time. We based our evaluation on the following areas:
Excitement: Were we genuinely intrigued by the idea being presented?
Founder Evaluation: Did the founder come across as likeable, competent, and well-structured?
Communication and Problem-Solving: Could the founder effectively answer challenging questions and communicate their vision?
Transparency: Were there any signs of misinformation or ambiguity?
Deal Evaluation: Were there any fundamental red flags or issues with the investment opportunity?
Exploring Hexa: Gathering Key Insights
I sat on many founder calls during the Sturgeon internship, and after listening to team members interact with founders, I developed a rough guide of topics that must be covered in an initial founder call:
Team: We inquired about the senior team, the founder's strengths and weaknesses, and any plans for hiring.
Market: We discussed current market trends and the Total Addressable Market (TAM).
Competition: We explored the competitive landscape, encompassing incumbents, startups, and potential moats.
Product: We probed into the unique selling proposition (USP), pricing strategies, and the product roadmap.
Traction: We scrutinized revenue figures, relevant Key Performance Indicators (KPIs) like Customer Lifetime Value (LTV) and Customer Acquisition Cost (CAC), churn rates, customer demographics, burn rate, and runway.
Previous Fundraising: When relevant, we discussed the cap table, highlights and lowlights since the last funding round, and the allocation of funds.
Current Fundraise: We explored the target fundraise amount, total commitments received to date, investor demographics, expected round closing date, valuation, and intended use of funds.
Assessing Alignment with Sturgeon's Mandate
After a thorough exploration, it became evident that Hexa did not align with Sturgeon's investment mandate. Nevertheless, the call served as a valuable opportunity to gain insight into Hamza's company and Hexa's future. We provided a list of other venture capital firms that might be better suited to Hexa's current size and stage.
Key Takeaways
The Power of Networking - Maintaining communication with founders after such meetings is crucial for building a founder network and staying informed about the progress of various companies over time. Seeing other team members cultivate relationships with founders over years and eventually bringing them into the Sturgeon portfolio shows the potential value of keeping good relations with founders.
Learning from Experience - Throughout my internship at Sturgeon Capital, I had the privilege of sitting in on various founder calls. For those new to these calls, I recommend listening carefully to the questions asked by the team and using them as a source of inspiration when structuring your own founder calls in the future.
7. Venturing into Geopolitics - Georgia Jurisdictional Risk Assessment
Timeframe: 2 days
Working within the venture capital sector primarily involves investor-centric tasks and projects. However, every so often, the opportunity arises to delve into the geopolitical nuances of the markets where Sturgeon invests. This is precisely what I experienced when tasked with updating the jurisdictional risk assessment for Georgia.
Navigating Risk in Ventures
Sturgeon Capital's investment portfolio extends into regions characterized by higher risk factors, including money laundering, financial crime, corruption, and associations with terrorist financing or proliferation. The jurisdictional risk assessment's primary objective is to illuminate the key risks associated with these factors, form the mitigation measures, and ensure their alignment with Sturgeon’s risk tolerance.
Unravelling Georgia
I covered the following topics for this risk assessment:
Assessing Country Profile
Population Metrics: Evaluating the demographic landscape, including population size and urban vs. rural distribution.
Digital Landscape: Examining internet and smartphone penetration levels to understand the nation's connectivity.
Political Dynamics: Analysing the type of government and its implications.
Economic Canvas: Delving into economic data and indicators.
Trade Insights: Exploring import/export statistics.
Historical Perspective: Reviewing the geopolitical history and significant historical events involving the country.
Identifying Investment Opportunities
Case for Investment: Crafting a summary of the investment case in Georgia for Sturgeon Capital.
Sectoral Prospects: Outlining investment opportunities in Sturgeon's preferred sectors.
Dominant Industries: Identifying the key sectors driving the country's economy.
Educational Landscape: Analysing the education levels of the population.
VC Ecosystem: Providing an overview of the venture capital landscape in the country.
Sturgeon's Footprint: Describing Sturgeon Capital's current presence in Georgia.
Mitigating Risks
Economic Challenges: Evaluating economic risks and potential vulnerabilities.
Geopolitical Complexities: Analysing geopolitical risks and their potential impacts.
Governance and Compliance: Scrutinizing issues related to corporate governance, anti-money laundering, and corruption.
Societal and Political Factors: Exploring socio-political considerations and their implications.
Key Takeaways
Documents like the jurisdictional risk assessment serve multiple vital purposes. They not only help pinpoint risks and develop mitigation strategies but are also instrumental for ensuring compliance, managing reputation, and informing strategic planning. I enjoyed this task because it allowed me to engage with the geopolitics of a country, whereas most of the internship so far had been focused on evaluating startups. Having studied Politics with Economics at university, it was interesting to see how the politics side of my degree is also relevant and useful in the work Sturgeon Capital do, not just the economics side.
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