Urs Cete rose the ranks of Germany-based publisher Bertelsmann and its corporate venturing unit after he joined his “first real employer” eight years ago.
Cete said: “I have a German business degree, so education-wise it looks like pure business. Yet part-time I am pure geek, using a soldering iron in my spare time. With this background I ended up in venturing.
“In addition to my day-to-day job I worked as chief of staff or executive assistant to the chief executive, preparing his presentations and things like that.
“For three years I worked across all different media businesses and travelled a lot with the chief executive. When Bertelsmann set up its VC fund, BDMI, they wanted to staff it with people who know the group well, know different people and know who to call internally with a start-up you want to connect with the group.”
Before his time in the chief executive’s office, Cete worked in control and strategy.
He added: ”At the beginning of 2007 I started here as principal and chief financial officer. As I had been in the corporate control and strategy department, people assume you know how to do financials and accounting. I have now been one and a half years running the whole fund, which is run out of New York. Bertelsmann also has funds and/or people on the ground in China, Brazil and India.”
BDMI aims to have a similar incentive framework to a more traditional venture capital firm. Cete said: “Some investors and entrepreneurs can be a little afraid of corporate VCs. With us that is not the case as we behave like a financial VC.
“If Bertelsmann is bidding for the company, I will still be ringing round trying to get the best price. Yet to get strategic mileage out of the endeavour, for every investment we have to convince an operating unit to act as a mentor or sponsor.”
Cete sits on the boards of wireless industry company Mojiva and Blue Lion Mobile.
Lessons from the top: Cete said: “If you want to be in early with the best entrepreneurs, the sane way is to follow the same rules other VC investors are following. This means we have a carry-like structure, where we actually get a share of every dollar over a minimum hurdle. This aligns our goals with entrepreneurs and co-investors.”