AMA with Investments Director Kathleen Kaulins
By Raman Kang
Kathleen Kaulins has over ten years of experience scaling high-growth companies in various industries. She has worked as both an advisor and operator across functions including Finance, Strategy, Operations and Product. Kathleen currently serves as Director, Investments at Vistara Capital Partners. As a member of the firm’s investment team, she actively evaluates prospective opportunities in the technology space and partners with portfolio companies to drive continued growth. Before joining Vistara, Kathleen was Chief Strategy Officer at MealPal, a food tech startup in New York. She was responsible for leading strategic planning and growth initiatives at the company, including driving expansion across seven countries. Kathleen previously served as the Director of Finance & Strategy at Zocdoc, a healthcare tech company in New York. She oversaw various expansion efforts, including the company’s rollout to all 50 states in the US. She also helped raise over $130 million of growth capital for Zocdoc. She began her career as an investment banker at UBS in the firm’s global Consumer Products and Retail Group, advising clients on capital offerings, M&A and strategic alternatives. Kathleen received her Master of Business Administration from Columbia University and her Bachelor of Business Administration and Bachelor of Arts in Psychology from the University of Michigan.
Q: Hi Kathleen! Can you please describe a bit about what you do and how you've shifted into the tech world from a career in investment banking?
A: For sure! I started my career as an investment banker in NYC, advising consumer products and retail companies on M&A and IPOs. I loved the breadth of working with different companies. Still, at the end of the day, as an advisor, I realized that I didn't know the internal operations of how to run a company (i.e. how do you grow revenue efficiently, expand margin, etc.). I figured no better place to learn this than a hands-on role at a start-up where you can wear multiple hats and have broader exposure to how a company scales across its life cycle. After spending ~10 years as an operator, I decided to take all of my learnings (what worked, what didn't) and apply them at scale to help other companies as an investor. So today, I invest in and partner with tech companies across North America.
Q: Hi Kathleen! Do you have any general advice for aspiring entrepreneurs looking to start a company in today's climate? How are things looking on your end regarding investments & start-ups in the age of COVID-19?
A: Great question. From my perspective, our fund has never been busier. We've closed several new investments over the past few months. My biggest piece of advice in this uncertain environment is to show traction. Investors are looking beyond promise, and they want proof. If you are in revenue, this will look like the ability to sign up new customers even though budgets may be frozen or the ability to retain and renew contracts with existing customers. But I would say this applies even to pre-revenue companies. What proof can you show that de-risks the investment? For example, do you have a compelling focus group or survey data? Anything you can show that provides some certainty to your business model will go a long way when there is broader market uncertainty.
Q: What is the most challenging part of the work you do?
A: One of the hardest parts of being an investor is sometimes delivering a difficult message to a founder or CEO. Oftentimes, investors sit on a board or hold board observer seats, giving them a unique preview into the company. As an operator, having grown two early-stage companies, you become quite attached to what you are building, and it is hard to stay unbiased. That is where boards and advisors can be beneficial... but sometimes that comes with having to share tough feedback with a management team, such as the need to change a go-to-market strategy or shift the direction of a product roadmap. Good investors, however, will share honestly, and good founders/management teams will be receptive to considering another point of view.
Q: Hello Kathleen, thank you for coming to AMA. I have a career growth question. How and when did you decide it was a good time to move on to another company to advance your career? What was/is your decision framework?
A: This is always a tough one... but I follow one north star: when I feel it is time to explore other opportunities, if my rate of learning is slowing, or I think I have maximized what I could learn from a particular opportunity. Time goes by so quickly, and I am conscious about always being learning and not getting complacent. Each year I always ask myself, am I going to learn the same, if not hopefully more, this year compared to last year? If this answer is no, I think it is an excellent time to consider exploring another opportunity to keep your growth rate accelerating, stretching, and challenging yourself to build on your existing skillset.
Q: Can you tell me what's your favourite part of your job?
A: This is a tough one as I love all parts my job! One of the elements that I find most stimulating is getting to talk to a wide breadth of companies across different industries, at other points in their growth cycle, with varying needs of capital. I love this diversity... never a dull moment. Additionally, I mentioned earlier, but it’s a subtle thing that many people outside of VC may not realize, but investing is truly a people business. I love getting to talk every day with entrepreneurs and hear their stories... I appreciate what they are doing, having also been in the trenches before too. It is tough work building a company, so I love brainstorming different capital solutions that can help them achieve their goals.