Q&A: Brian Caulfield, partner at Dublin-based venture capital firm DFJ Esprit tells us about his career

We asked Brian Caulfield, partner at Dublin-based venture capital firm DFJ Esprit how he got where he is today, what he can impart to those who'd like to follow in his footsteps, and what he thinks of the situation facing Ireland today. This is what he said:

Q: What was the pivotal moment of your career, and why?

A: I’ve probably had more “pivots” than most in my career but probably the most important was the withdrawal of Landis & Gyr from the Irish market in 1991 and the resulting loss of my job.  It was the event that pushed me (with 3 colleagues) to become an entrepreneur and set up my first business.  Without that push, I might still be a “salaryman” as the Japanese say.

Q: What matters most: talent or hard work?

A: You need both.  But if I had to choose between the two, I would take hard work every time.  Better the willing and less able than the able and unwilling.  That’s the combination that really causes problems.

Q: What would you always advise people to do before they step into an interview with you?

Relax and be yourself…and try to know at least something about the company that you are interviewing for.  If I ask you about the value proposition for a customer, I don’t really expect you to nail it but you should at least know who a likely customer might be.

Q: What do you know now about working in financial services that you wish you’d known 15 years ago?

I’ve never really considered myself as working in financial services.  I’m an engineer to begin with, so the prospect of working in financial services appals me.  I’ve always considered venture capital to be about partnering with the best entrepreneurs to build great companies.  Unlike our colleagues in private equity, the financial structuring skills in venture capital are actually pretty minimal.  For us, it’s all about growth.

Q: What is the most unbelievable or amusing thing you have ever seen on a CV/ in an interview?

Two incidents stand out. Firstly, the candidate who’s CV led us to believe that she played piano at a very high level but when asked who her favourite composer was, said “Richard Clayderman”.  The second was the guy who gave as a reference a senior executive of a supermarket chain not known for being shrinking violets.  When I called the executive she said “Ah, yes, I remember Mr. X.  I met him three times…and each time was one of the most unpleasant experiences of my life!”  I can only assume that the candidate thought we wouldn’t bother doing reference calls.

Q: In no more than three sentences, can you say what your business area will look like in 2015?

The fund-raising environment for venture capital funds will remain tough with limited interest from pension funds.  As governments realise the importance of venture capital to driving innovation and entrepreneurship, venture capital as an asset class will be “democratised” with direct access to the asset class for individuals through tax-driven and crowd-sourcing products.  Funds (like our current fund) raised and invested in the past few years will be starting to show strong returns based on realistic entry prices and a recovering world economy.

Q:  I want to work for you. What will persuade you to hire me?

Intelligence, a willingness to take initiative and to do whatever it takes for a customer.  The thing that I hate most to hear is “that’s not part of my job”,

Q: Do you think Ireland should have defaulted on its bank debts, like Iceland?

No but whether we should have taken on those debts in the first place is a separate question.  I’ve spoken to VC colleagues fromIcelandin the past year or so and they are finding themselves pretty friendless right now.  That isn’t reported.  Having said that, I believe we will see a gradual process whereby Irish banking related debts are “socialised” over time…except this time with the German and French taxpayers rather than the Irish taxpayers.  I heard Colm McCarthy say recently that there are no longer any unilateral solutions, only negotiated solutions.  I think that’s exactly right.