LJ: Since some of our readers may not be familiar with Trident Capital, would you give us an overview of the firm?
MB: Trident Capital is a leading venture capital and venture growth firm that invests in companies that are solving big problems of our time through technology and innovation. We invest across multiple stages, from early startup to growth buyouts, in the Software, Internet and Technology-Enabled Services sectors.
Trident has helped build large numbers of successful companies within its areas of focus by applying substantial investment experience, deep sector expertise and operating skills as well as broad networks of entrepreneurs and industry executives.
Trident has $2 billion of capital under management, including its most recent fund, Trident Capital Fund VII, and has invested in more than 150 companies since the firm’s inception in 1993. The firm is headquartered in Palo Alto, California.
LJ: What sectors does Trident focus on?
MB: Trident’s most significant advantage is the strength of its experience in the industries it invests in. Trident engages in industry sectors where its team has intimate knowledge and extensive experience. This commitment and focus enable Trident’s leadership to bring more than funding to the table – insight into market dynamics, competitive intelligence, and long-term growth strategies.
Trident is particularly recognized for its expertise and successful track record in IT Security, Health Care IT, Internet Advertising Technology, Software-as-a-Service, and Business Services. Trident takes a thesis-based approach to investing: we identify big problems of our time, look over the horizon, and pursue companies that can solve them. Trident has clear points of view on where the market is going, and how we can help a company become an industry leader.
The firm has built an extensive network of relationships in each focus domain that help us form and tests our sector theses. Portfolio companies also value the fact that we leverage these sector ecosystems on their behalf by introducing them to prospective customers, management candidates, potential acquirers, and other strategic partners.
We believe we are in the early innings of one of the greatest technology platform shifts in history. The pace of innovation in cloud, mobile, social and big data analytics technologies is fundamentally transforming the way global organizations leverage and consume IT. These shifts will continue to drive attractive investment opportunities in Trident’s focus sectors over the next several years.
Geographically, the firm is focusing primarily on deals in North America, but open to investments internationally provided the companies have meaningful operations in the United States.
LJ: What is your role in the firm?
MB: I am a Principal with Trident. I joined the firm in 2005 and have been in private equity investing for eleven years. At Trident, I focus on growth-stage investments in Enterprise Software and Business Services companies. The role of a Principal at Trident includes:
Relationship Building – Continue to expand on the firm’s network and sector ecosystem, proprietary knowledgebase and visibility
Investment Sourcing – Analyze sector dynamics; develop and test market theses; identify actionable, high quality investment opportunities
Transaction Execution – Perform investment due diligence including financial, legal, business, technology and market diligence
Portfolio Company Support – Help the management team build a great company – recruiting, customer and partner introductions, product strategy, go-to-market strategy, inorganic growth, fundraising.
LJ: When you consider investing in a company, what are the business criteria?
MB: We partner with strong, passionate teams to help them bring to market innovative solutions to difficult business problems through scalable business models. Critical to our investment process is to identify growth-stage companies with the following key criteria:
- Defensible use of unique technology
- Sufficiently large market
- Market dislocation or inflection point
- Differentiable industry expertise
- Unwavering focus & commitment
- Flexibility & responsiveness
- Passion to innovate
LJ: When you decide to bring in outside talent to a portfolio company what are the top five attributes you look for?
MB: Each scenario is unique but Trident consistently looks for the following characteristics and attributes when looking to add to senior management positions within our portfolio companies:
- Leadership Qualities – Has the candidate proven that he/she can create and articulate a vision, and motivate others to achieve that vision?
- High Bar – Has the candidate shown that he/she will do whatever it takes to get the job done, and that he/she expects the same from his/her team? Does the candidate hire A-players?
- Nimble – Is the candidate capable of anticipating changing market conditions and customer priorities and quickly pivoting the business strategy or adjusting the product positioning in order to out-maneuver the competition?
- Strong Integrity – Is the candidate solid ethically – does what is right, not just convenient, earns respect and maintains confidence?
- Proven Track Record – Does the candidate have a demonstrable track record of success within a relevant field or industry?
LJ: What has enabled you to be successful?
MB: I have reached a few personal and professional goals so far, but my journey to success is still very much under way. In my opinion there are countless recipes for success. So far, I’ve taken a certain approach. I keep it simple. I try to emulate the characteristics that I observe in the most successful professionals that I’ve worked with.
Thoughtful – Choose your words and actions carefully – it’s not about quantity, in my opinion, it’s about quality. Spend the extra time, do the diligence required to have an informed opinion, voice that opinion, and back it up with thoughtful analysis.
Modest & Likeable – I think the best cheerleaders are those on the sidelines, not in the game. There is a fine line between gaining the required amount of visibility and shameless self-promotion. When positioned appropriately, I believe high quality work will always be recognized.
Help – Co-workers, customers, partners, family members, almost everyone remembers when you unexpectedly go out of your way, and a little above and beyond when someone else needs the help.
Balanced – Prioritization is always key – whether it’s the balance of work and family life, or the balance between time spent on new investment opportunities versus helping existing portfolio companies. There is always more to be done than there is time to accomplish. Being efficient while staying effective helps.
Be Right – Do the extra work, pay attention to the details, carefully consider the alternatives – so that when you deliver you know for sure that it is of high quality and it is right.
LJ: How do you define success?
MB: My definition of success is simple. It is over-achievement. The process of: (i) setting a clear but stretch goal; (ii) laying out a thoughtful game plan to reach that goal; (iii) executing and maneuvering past the mine fields along the way; and (iv) at the end of the day – hitting it out of the park. As the cliché goes, success is a journey, not a destination. Whether it’s personal or professional, we may not succeed on every task but what makes for a successful journey is learning from failure, getting back up, altering the course, and trying again.