Life Lessons I Learned from Investing in Vector Watch
I have served as an angel investor to tens of startups in the decade or so I have been in this sector. However, my time at Vector Watch — a homegrown Romanian startup sold to Fitbit in 2017 — stands out from the rest. I can genuinely say that this experience has shaped the way I do business and that I have learned and implemented a lot from it.
About four years ago, an interview with me on Vector Watch was published in one of Romania’s top economic news portals: profit.ro. In it, I described what I call the “Silicon Valley recipe” to a successful startup. Let’s look at some of the more important points I raised, so you can better understand what this experience meant to me.
First, a few words about the “Silicon Valley recipe”
Let’s start with the bottom line: The people at Silicon Valley, California, are, obviously, doing something right. There’s no other way to explain the stream of successful startups and ideas that keeps flowing from there. The “Silicon Valley recipe”, as the name implies, is the attempt to copy what works there to other innovation hubs around the world. I would define the essence of this recipe as the “three E’s”: employees, energy and entrepreneurship.
A successful startup must be a result of a willing and able workforce. It’s not only about choosing the right people for the role; it’s also about choosing the right people for you, the entrepreneur. Energy is a must — in a world where 90% of startups fail to get anywhere, the energy and drive to succeed are key factors, often underestimated. Last but not least, entrepreneurship is not just about definition. It’s about spirit, out-of-the-box thinking, stubbornness (but the good kind), and most of all, creativity.
Bring the young mind on board
Putting all stereotypes regarding millennials aside, some of these young guys and girls are success-driven in ways that former generations are not accustomed to. That’s why it is essential to choose people with progressive — and different — ideas and practical plans on how to turn these ideas into actions.
Alt text: It’s all about the people.
Source: https://unsplash.com/s/photos/business-meeting
Stay connected to Silicon Valley
Always stay updated on what happens out in California. When working with Vector Watch, my contact was my very own brother, who lived and flourished there at the time. His advice was golden in Vector Watch’s growth process.
Don’t forget to stay real
While trying to duplicate the success of Silicon Valley is the general path, you must not forget that you are not in Silicon Valley. In the case of Vector Watch, we were in Romania. That’s why it was essential to understand the local mentality and create the right kind of healthy partnerships for the business’s growth.
Take advantage of what you have
Circling back to the workforce, it is well-known that Bucharest, just like Silicon Valley, is filled with young, tech-savvy and quickly adapting people just waiting for the opportunity to put their skills to work. If the whole world is eyeing Romania for its workforce, there’s no reason for us to overlook them.
Play on your home court first
One of the main driving forces behind Vector Watch’s success was our “Romania first” tactic. When we started with this product, it did not even have a touch screen, and the battery would last for about a month. Nevertheless, our marketing team worked hard on penetrating the local market as a gateway to the rest of the world — and that, in my opinion, is one of the main reasons behind Fitbit’s decision to give us a chance.
Stay yourself, even after you make it big
In less than two years, Vector Watch just couldn’t be ignored. After a relatively fast exit, being purchased by the global brand Fitbit, it was decided that the original platform and team would stay on. This continuity was important first and foremost as a sign of appreciation to the people who had worked hard for the company to reach that point and build more products and features.
