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EP31 From Investment Banking to E-commerce: Alexej Pikovsky’s Dynamic Career Journey

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00:00 Built CBD marketplace, pivoted to agency and acquisitions.

08:18 Top VC firms outperform due to high demand.10:08 VCs help more if you’re already succeeding.

14:57 Family offices are difficult; consider angel investors.

19:56 Focused on wellness, sourced brands via databases.

24:55 Raised $4M, cannabis promise unfulfilled, maintaining investor trust.

29:10 SBA program unique; venture debt risky alternative.

32:21 Inventory mismanagement hindered growth; strategy improvements boosted success.

37:24 Focus on profitability and omnichannel expansion.

42:21 E-commerce acquisitions are challenging, focus essential.

45:30 Embrace lifelong learning, adapt to new industries.

49:03 Embrace industry evolution; avoid rigid identity labels.

– Began in investment banking in 2010 with a focus on natural resources, power, and chemicals.

– Obtained a master’s degree in oil, gas, and mining at Imperial College London.

– Transitioned to venture capital, investing in early-stage technology.

– Gained experience across various industries including cannabis, psychedelics, Amazon, and SEO.

– Emphasizes the significance of transitioning between industries.

– Advocates for continuous learning using the 10,000-hour rule as a metaphor.

– Launched the podcast SaaS Minds to explore software-as-a-service (SaaS) businesses.

– Characteristics of businesses suitable for private equity.

– Use of leverage for acquisition to enhance returns.

– Challenges faced in private equity including high valuations and market conditions.

– Experience with acquisition strategies, especially in the wellness sector.

– Sale of a large German fertilizer business.

– Managing pressure due to debt and acquisition strategies.

– Discussion on private equity as an asset class, especially in declining valuation periods.

– Focus on the wellness sector due to CBD marketplace background.

– Methods for sourcing deals, including Amazon scraping, databases, and broker outreach.

– Acquisition of a smaller scented candle brand and post-acquisition challenges.

– Enhancements in marketing efficiency and product development.

– Geographic expansion to the UK, Germany, Canada, and Mexico.

– Future opportunities including agency growth, brand sales, and exploring new markets.

– Differences between VC and private equity.

– Average returns for VC funds and challenges in raising VC.

– Networking importance and value creation in VC.

– Case studies like Rand Fishkin’s Moz for illustrating risks in VC funding.

– Raising $4 million and managing investor relations.

– Dynamics in the cannabis market following legalization expectations.

– Funding mechanisms including venture debt funds and managing high-profit margin acquisitions.

– Importance of expanding omnichannel retail and D2C presence.

– Discussions about selling the agency for further growth or raising more capital.

– Reflections on growing from zero to one million vs. one to ten million in revenue.

– Emphasis on singular focus and strategic planning for growth.

– Insight into industry trends, operational strategies, and scaling businesses. 

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