Are Angel Investors and VCs Blind to Global, Diverse Investment Opportunities?

Blind Justice (Photo credit: Wikipedia)

Blind Justice (Photo credit: Wikipedia)

BY: Geri Stengel, Contributor  When Annabelle Diamantino, co-founder and CEO of Video Recruit, was considering where to locate her company, a top priority was finding a city in which the cost of doing business and living was affordable. Another factor was access to a plentiful supply of high-quality, inexpensive talent.

Video Recruit is targeting the global recruitment market which, according to Bersin & Associates, is a €220 billion global market. A typical company spends €2,700 to hire an employee. Pre-screening is the most time-intensive and least effective phase of the recruitment process. Sifting through resumes, scheduling interviews and spending time with unsuitable candidates can suck up a lot of time. Worse yet, you may not find a quality candidate.

Video Recruit’s automated video interviewing platform reduces the time spent on interviewing and increases the likelihood of finding a quality candidate. While the U.S. is the largest single market for recruitment services, it is also the most competitive. Diamantino and her co-founder,Philip Staehelin, strategically decided to target Europe instead.

Both Diamantino and Staehelin lived in the Czech Republic. It was also where they both had good connections, and was near their initial clients. They chose to base the company’s headquarters in Prague.

Video Recruit initially self-funded. Later, the founders were lucky enough to find a local entrepreneur who not only invested in the company, but joined it. The process took a couple months. Easy peasy.

They’ve had success bringing on board regional divisions of global companies, such as Danone and Molson Coors, as well as regional and local companies such as Česká Spořitelna!, VIVACOM, and AmRest among others. They had proof of concept. You’d think they would be all set to easily raise money to ramp up the business.

But one thing that Diamantino hadn’t considered: access to angel and venture capital. While angel investing is on the rise in Europe, it’s still small compared to the U.S. Europe represents only 29% of U.S. activity according to EBAN, the European trade association for business angels. The Czech Republic isn’t even mentioned in EBAN’s report. It’s hard to find an investor when the market doesn’t really exist.

Diamantino is not alone in her frustration. She recently attended We Own It Summit, a forum to explore women’s participation in high-growth businesses and increasing it. Held in London, the summit was produced by Astia, which provides leadership training, access to capital, and connections for high growth women-led companies. Women raising money outside the U.S. and U.K. expressed similar disillusionment, said Diamantino. The lower level of funding for high-growth companies outside of the U.S. and U.K. is a market failure and represents an opportunity for investors, she continued.

Whether it is gender, geography or industry, many sectors are undervalued and ripe for astute investors. Angels need to spread their wings and soar into the 21st century. Venture capitalists need to look at business leaders who aren’t white males like them. The economy is global, women in charge make good investments, and business models do not conform to either Facebook or PayPal. It’s a creative, diverse world out there.

In what ways do you think investors should change their filters?


This RSS feed URL is deprecated, please update. New URLs can be found in the footers at [...]

NPRAfter Outcry, Crowdfunding Site Patreon Backs Off Plan To Raise FeesNPRThe popular crowdfunding service Patreon has backed off plans to change its payment structure, after widespread, vocal and passionate opposition from creators and their fans. Last week, the site announced it wou [...]

TechCrunchHow hate speech crowdfunding outfit Hatreon crept back online ...TechCrunchIf you want to make a living creating white supremacist content, you're probably not going to do it via sites like Kickstarter and Patreon, which prohibit hate speech. Fortunately there's Ha [...]

CoinDeskKickstarter ICO? Don't Count On It Says Crowdfunding Leader ...CoinDeskThe company most widely associated with crowdfunding, Brooklyn-based Kickstarter, has no plans to get into the initial coin offering (ICO) business. Coming in response to the news yesterday that compet [...]

HuffPostIs Crowdfunding Really a Good Idea for Innovation?HuffPostHere's a head-scratcher for you: according to new research, if you refer to your product or idea as both “novel” and “useful” in your crowdfunding campaign, your funding will be lower than it would if you just decl [...]

Coindesk (press release) (blog)Crowdfunding Giant Indiegogo Opens to ICOs - CoinDeskCoindesk (press release) (blog)The startup revealed today that, through an existing partnership with MicroVentures, it will begin offering services to projects seek to use the blockchain funding model. [...]

ForbesCrowdfunding Do's And Dont's From iFundWomen's Karen CahnForbesDuring our conversation, she was transparent in sharing that her first software company, VProud, failed because she “did everything backwards” and spent too much time trying to perfect the product. “Pe [...]

FortuneWant to Hold Your Own ICO? Indiegogo Can Help You With ThatFortuneCrowdfunding sites like Kickstarter (kickstarter, +0.00%) and Indiegogo raised start-up cash for a generation of online entrepreneurs, but one increasingly visible method of internet-sourced financing seemed to h [...]

TechCrunchFormer Gawker employees are crowdfunding an effort to buy Gawker.comTechCrunchWhile Univision acquired most of Gawker Media's sites last year (and renamed them as the Gizmodo Media Group), the deal didn't include Gawker itself. In fact, BuzzFeed reported last month [...]

Boing BoingGawker alumni are crowdfunding to outbid Peter Thiel for control of ...Boing BoingGawker was bankrupted by Peter Thiel, who secretly backed Hulk Hogan's lawsuit against the network of news, entertainment and gossip sites in an act of petty revenge. Now, Gawker's a [...]

CFB Finance


  • Crowdfunding
  • Crowdfund
  • Peer to Peer Lending
  • FinTech
  • Reg A+
  • Reg CF
  • Crowdfunding USA

Press Release

Live Crowdfunding .tv

What's Next Step in Regulation A+ JOBS ACTS Title IIII :L Interview : Steve Cinelli with Brian Korn Securities and Crowdfunding/Peer-to-Peer Lending Lawyer, Watch more video library | Conference | Interview | Campaign Showcase | Research | Education |