Early Stage and Growth Companies Are a Team Sport - an interview with Pieter Dorsman

Steven Forth is co-founder and managing partner at Ibbaka. See his skill profile here.

Pieter Dorsman has had a catalytic impact on the Vancouver innovation economy since arriving in Vancouver some twenty years ago. He has helped many companies restructure their businesses and raise financing, has had a big impact on Angel Investing through eFund and has also led the acquisition and renewal of the Vancouver Angel Forum.

Pieter has seen a lot of boards, the good the bad and the ugly, and thought hard about how to build teams at all levels of the organization.

Ibbaka spoke with Pieter in early November of 2020.

Ibbaka: Can you share with us something of your background on where you come from, and how you got to be in your position in the innovation economy in Vancouver?

Pieter: I started my banking career in London working for Barclays Bank and was told from the outset that our jobs wouldn’t be around for long. Even that long ago, people in large corporations were well aware of the technological, political, and social changes around the world. It became apparent where the world was going throughout the 90’s. After a number of years doing corporate finance in Hong Kong and having acquired my corporate and financial skills, I moved to North America and refashioned myself as an advisor for early stage companies, turning towards investing and sitting on boards. In the end, I help bring capital and financial solutions to the innovation economy.

Ibbaka: How would you characterize the innovation economy in Vancouver, and how has it changed in the time you have been here?

Pieter: It has changed considerably. I came here wanting to work in the start-up economy and people thought I was crazy. Back then, Vancouver was a mining and forestry city with some technology mixed in. People would say to move to Toronto or New York. The potential was here, and I felt it needed to be unlocked. With the number of new immigrants that came here to start a company, seeing the amount of capital that came in and was mobilised, you could clearly see the various successes that were being built. Vancouver has grown exponentially, and I would say it is a testament to the great work we have done here, making it one of the fastest growing technology centers in all of North America.

Ibbaka: What is the role of the board for early-stage and growth companies? What are your thoughts on the different functions that a board may play at early stage versus growth versus a mature company?

Pieter: Knowing the framework of the board is important. The board generally is not involved with the daily affairs of the company and are mainly there to represent the interests of the shareholders. The founders, management, and executive team deal with the day-to-day operations. In the early stage however, things can be quite different, with people having to deal with multiple things at the same time with limited resources. So then often the board role can be a hands-on job for board members and it should be, depending on the situation. The separation that you’re not working for the company, but for all shareholders, is what needs to be clear however and in the early stages founders and board members need to make an effort to find the right balance.

Ibbaka: When you think of early-stage boards, do you see them acting as individual actors or more as teams?

Pieter: It depends, but I often see them behaving as individual actors and that’s not the proper way to do it. Acting as teams is a much better approach. It requires a collaborative effort to allocate tasks, giving support to management, and bringing those different skill sets to the board when they are needed. Operating as a team is imperative. When you are on a board that doesn’t function as a team, that’s where energy is expended and wasted, I have seen that very often. Skills need to interact, as do people, to intuitively understand one another.

Ibbaka: Do you see a set of common or crosscutting skills that you would like to see people bring into boards and to use and select board teams?

Pieter: On one side, there are the technical, finance, product, and sales & marketing skills. On the other, there are things like maturity, intelligence, collaborative and even compassionate skills. You need to have both sides. When you recruit a board member, the person needs to have an overall sense of business and the ability to solve problems even if they lack the specific industry knowledge. I am not an industry expert, but I like to think I can unwind many issues and help founders in areas where they fall short or run out of time.  Again, board members do not need to be experts in everything, but a level of general expertise and maturity is key if you are going to share your experiences and wisdom while collaborating. Combining technical and human skills is essential. And time, be prepared to invest time as a board member.

Ibbaka: Is there a role for diversity and how important is it to have diversity on a board?

Pieter: The early stage formation of a board is usually a combination of the founders and initial investors, and they often come from personal networks. Bringing together friends, colleagues and obtaining a diverse group of outsiders is always a great idea and you do see that from time to time. It often happens during later, subsequent financings. I strongly believe in having a broader advisory group of support around a start-up beyond just the board and that is an opportunity to cast the net wider. Creating more successful companies in our ecosystem helps create more individuals with the variety of skills and experiences needed to think outside the box. I think the talent pool is limited in Vancouver so if we keep building our ecosystem we will see growth in more diverse skill sets and backgrounds and from that we can over time recruit more board members.

Ibbaka: If you were advising a younger person today, or a younger version of yourself, as to how they might learn and prepare to be on a board, what advice would you give them?

Pieter: To try and gather different experiences in multiple roles and capacities, inside and outside work. I spent time on the board of trustees of a school district and learned an awful lot from that in terms of board dynamics and managing people. Being open to what is happening in the business world and the world itself is vital too, you’re educating yourself on a daily basis. All that will contribute to being a mature and well rounded person with deep resources (in terms of ideas and experiences) that can build a strong board and contribute to a great company.

Ibbaka: What are the things that people could and should be doing today to help grow and strengthen the innovation economy in Vancouver?

Pieter: With the talent pool that is growing, we’re seeing entrepreneurs wanting to work with seasoned, more experienced individuals. I want to encourage them to reach out to advisors and potential mentors for general advice about business or life factors. Building relationships, building trust, that is the foundation of what we are doing.  Participating in events is another option. The opportunities are there for people who aren’t active in the field to get involved and they may end up with their career path opening out right in front of them. There are also so many immigrants with all sorts of backgrounds that can contribute and they are very often keen to get active into the community. Use them.

Ibbaka: Is the innovation economy something that is limited to large urban areas, or is this something that can engage people in smaller and even rural areas?

There are already examples of innovation from all over the province, with our fund for instance we have invested in SaaS companies based in Squamish and Nelson. Experience in the recent pandemic has shown that people do not have to be in the same room together. There is more work we can be doing to extend our networks beyond the cities, to bring in investors from across the province and to support more and more varied companies. We should actively be promoting this, I think the region presents a huge opportunity for tech companies, also because people want to live in affordable places where they can enjoy life. In the long run I am betting on the region, not on cities.  

Ibbaka: With limited social interactions, are there things that people can be doing over the next 3 to 6 months to engage with the community?

Pieter: Building that system of relationships and connections amongst ourselves, even though the circumstances are not ideal. The setting of being in-person with others is important within any relationship. We know that body language and our facial expressions are vastly different from being in-person than what we see on our computer screens. People should also eat and drink together. Working more efficiently is what I hope will happen once this crisis evaporates. Hopefully, we’ll look back in the end and appreciate the growth we have achieved from our relationship building during this pandemic.