Year to date, Mitchell Bissinger has reviewed over 700 big ideas from ANZ founders and brought 2 companies to ‘Eyes Open’ (Folklore’s final step before investment). This is no mean feat, considering Folklore on average, funds less than 0.01% of the startups that it sees each year.
As a friend and colleague, I can honestly say that Mitch brings a positive spin on the sometimes overused ‘Ex - xxx’ LinkedIn bio. Most recently joining the team from scale-up, Eucalyptus, where he managed the company's strategy and capital allocation, Mitch has already worked with a few of our portfolio companies - sharing learnings from past roles to help businesses succeed in scaling from ANZ.
This article shares more about Mitch’s drive, lessons he’s taken from past experiences and what he looks for in new companies when he’s chatting with ANZs most ambitious founders.
Tell us a little about your background?
“I grew up with parents who ran a family business (started by my Grandpa and my Grandma’s dad) in Melbourne, and I suppose that gave me a slightly warped perspective on the world of employment - and risk tolerance.
For an embarrassingly long time, I would say that I harboured an insecurity around the “less glamorous” aspects of running a business (particularly one that wasn’t in professional services) and that gave me a desire to have a job where I would wear a suit to work every day.
Close to the end of my commerce degree - I found some part time work at a food technology startup. I was working there a few days a week, initially. It was a tiny team and almost immediately I fell in love with the sense of agency, freedom (and accountability) that comes with every problem being completely your own. If you don’t do the work, no one does it. That kind of environment was liberating.
One role expanded into another, and so over 3 years, we purchased a manufacturing facility, commercialised the product, grew revenue from $0 - $20m, listed on the stock exchange and I remember being straddled with learning after learning.
Things started to slow after we listed. I then worked for a boutique investment bank, for a firm that provided insight to mainly unlisted companies (scaleups, pre-IPO types) on how to position their business narrative, who you should be talking to, how to look at capital raising, how to price the business, what does founder liquidity look like etc.
In the 3+ years I was there, I remember meeting with hundreds of investors - being the third person / fly on the wall in the room with investors and founders - and thinking “I can’t believe that people are paid to do this [investing].”
The second, probably more arrogant thought was, I think I can do better.”
Is this what led you to join Eucalyptus?
“When compiling my list of prerequisites for what I was seeking out in my next role, there were a few requirements I was grading opportunities against. A few of these include:
Would it have mattered what role you took there?
“This is the generalist / speciaIist argument - at a quickly growing company there’s almost endless opportunity for the former, with the right mindset.
At a company like Eucalyptus (at the time I joined), for example, I would say that aside from doctors, pharmacists and software engineers, everyone else is a generalist in some capacity - maybe that’s a bit harsh - but that gives you a lot of room to move around to find what you like. That level of ambiguity and career chaos can be daunting for some.
In that sense, I was more interested in joining the right place, rather than joining in the right role. As I knew I would end up in the right position to suit my skill set eventually.”
Where do you see the most opportunity for first movers (small businesses looking to scale)?
“If you’re a startup or scaleup business, your primary competitive advantage is that you’re nimble. Either because you’re creating a new category - or because you’re innovating on a current category. Either way, speed is an advantage.
If you’re building in a category where there’s an incumbent, the incumbent might eventually create a similar product/service - so you’re in a race against time. The benefit here is you have the agility for people, processes and systems to change. As much as possible, you should lean into that.
I think one of my main learnings is around understanding what has to be perfect, what has to be good, and what can be ok (given the priorities and the stage of the business). Keeping the work that you’re doing in this perspective is important - not doing so can slow you down.
As an aside - I will say that I have a unique admiration for people who have moved from roles/positions as academics / “linear” careers in professional services, to other startup/scaleup positions. These are amazingly smart people who move from a largely structured position to a world full of ambiguity. It’s a big adjustment!”
What advice would you give to senior operators at a scaleup?
“As businesses mature along the line from idea to public business - there’s a spectrum of operational roles, all with their own benefits, perils and risks.
From what I’ve found, there’s an outsized benefit (both in personal and professional growth) in partnering or helping a startup grow along this curve. You won’t be able to find the same level of exposure at a more established business (because you’re growing into each new role as the company grows).
The rub is that sometimes, the things that made you the best operator at the early stages of a business - grit, determination to complete something with speed, just ‘getting it done’, willingness to quickly pivot, understanding areas where polish wasn’t needed, may not be the things that will serve you well at later stages.”
Also - it may be that the role and company you loved at Series A doesn’t feel the same at Series C or beyond. Maybe you’re better suited to the businesses that are earlier (or vice versa) - and that’s completely fine!”
How does your experience colour how you view investment opportunities?
“It’s worth qualifying this question first by framing it by investment opportunities that are within the scope of the types of companies that Folklore invests in.
Primarily, Folklore is a software investor (software or advanced technology businesses with software at their core). Secondly, Folklore is an early investor (Folklore is often the first “external” capital investing into a company). There are more nuances to our mandate from there, but even with those two qualifying factors, a lot of companies looking to raise capital are excluded due to just not being the right fit for the fund.
After applying a “fund-fit” lens to an investment opportunity, my focus is on the people in the team and the market in which the team is operating.
Founders and early team members are the heart and soul of a startup. Ultimately, investing in businesses that aim to deliver a 100x+ return means that you’re looking for outliers with characteristics that can appear at odds with each other on paper. Meeting these types of people is an exciting and rewarding experience. I also try to think about how founding teams will evolve to meet the changing requirements of their roles as their company matures. The requirements for an effective founding team are remarkably different at Seed Stage vs Series C (and then again at Series C v IPO).
There’s a thesis I’m currently playing around with, which is that high performers are attracted to work with / for other high performers. When I’m unpicking this, things I’m considering are a) can I see the founding team attracting high-quality talent (that’s a great sign) and b) are there future great founders within the concentric circles of existing ones (and I think the answer is probably yes, which plays into my thesis that A players attract A players).
So, when I think about companies or founders I chat to - I’m always interested in where people operate and interesting places where good people congregate. I place a lot of emphasis on personal stories in shaping character.
I think about markets as “needs” (consumer need, business need, government need, environmental need, etc) - which can be met or unmet. I think about a great market as either a) a large unmet need, or b) a sector where technology can fundamentally change the nature of how the need is being met, where those experiencing the need are looking for / welcoming something new or better to solve it. I try not to underestimate the importance of the market in which potential investments operate.
This isn’t new ground, but I think that a great market, at the right time, has the ability to pull great products out of companies. I’ve seen this first-hand. If you place a great team in a great market, there’s a good chance of success. Conversely, great teams in hard markets can struggle to get momentum."
Tell me something that no one else knows.
“I’m slightly (maybe a bit more than slightly) obsessed with shoes and clothes. Beyond the brand - the journey to being a finished product, the value of one method of production over another method, etc. I love going deep on how things are made and what marks the quality of the “best” against the rest of the market.
I have a real appreciation for things that are made as well as it is possible to make them - think Japanese denim, certain types of food, smart product design, etc. I think this may come from my dad - who would comment on the finer details of every house / cafe / building we go into (the quality of the build components as opposed to an overall aesthetic that may mask cut corners).
This definitely carries over into business - I love companies that obsess over the experience of their product and in pushing what “the best” can look like. I find that oftentimes there’s a crossover of beauty and simplicity when admiring these types of things.”
Tell me something everyone believes to be true - that you think is false.
“Hmm. I think Friday will be a weekend (for better or worse) by 2030. I don’t think California will be part of the US by 2050. I think maybe we’ve hit (or are about to hit) a high water mark for global air travel. I don’t think Google will be a monopoly in 2030 (maybe that’s not that controversial).”
Find out why Mitch believes this - or share your big idea with him via mitch@folklore.vc. He also loves discussing contrarian views or trying to pick an emerging market/society need before it’s eventuated. You can also send him your big ideas via mitch@folklore.vc.
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