Lucid People II: Interview with Johann

Continuing our interview series with the individuals who have shaped Lucid Capital's short history.

Earliest childhood memory.

As a child, I enjoyed playing in my cousin's massive sandbox at my grandparents' place. We would spend hours rebuilding castles from the Roman empire, complete with moats and drawbridges, and imitating battles, with toy soldiers and tanks. Even though I didn't know much about these historical events, my cousin was a history buff and would share fascinating stories and facts with me.

I was also driven to build the tallest Lego towers at kindergarten. I would spend countless hours constructing these structures, experimenting with different shapes and sizes, and learning about basic principles of engineering and physics. I’d often challenge my kindergarten mates to build taller and more complex structures.

What values did your parents instill in you?

Growing up, my parents instilled a strong sense of confidence in me and encouraged me to believe in myself and my abilities, even during difficult times. They also taught me the importance of accepting responsibility and owning up to my mistakes from a young age. As a result, I was able to become head of the student government in high school and coach a soccer team that was barely older than myself.

Family always came first in our household. My parents made it clear that no matter what, our family - including grandparents, parents, cousins, aunts, and uncles - was the most important element in our lives. They prioritized spending time together and ensured that we supported each other through thick and thin. These values have stayed with me throughout my life and have helped shape me into the person I am today.

What was your earliest experience with entrepreneurship?

I have two uncles who are entrepreneurs. One runs a manufacturing company, and the other is an independent financial wealth advisor. During my spring and summer vacations, I used to work at my uncle's factory, learning what it means to work in the German Mittelstand by turning screws and supporting mounting instructions.

In addition, my cousins and I ingeniously sourced corncobs and pumpkins from nearby fields or our neighbors' gardens, keeping our costs low. We skillfully transformed these natural treasures into charming decorations, which we then sold on the street.

Recognising a gap in the market, my closest friend from high school and I embarked on an entrepreneurial venture, offering catering and music services on the side. We noticed that many parents hosting parties in the countryside were constantly struggling to find DJs and service staff to enhance their celebrations. At one point, we spent a weekend black copying Bravo Hit CDs. Those were fun times.

How did your time at Stanford influence you?

My time at Stanford was an incredible experience that helped shape who I am today. One of the most impactful aspects of my time there was the opportunity to connect with such a diverse group of people. Whether I was chatting with fellow students in the dorms or meeting new people at events, I was constantly exposed to fascinating new perspectives and ideas.

This environment of passion and entrepreneurial drive was contagious, and it quickly rubbed off on me. I found myself seeking out new opportunities and adventures, and I even started to explore my own entrepreneurial aspirations. With optimo.ai, I helped mobility companies to apply geospatial optimisation to increase the utilisation of their fleets.

Despite being busy with classes and other commitments, I made it a point to attend some of the amazing talks and events happening on campus. Three of the highlights for me were hearing Doug Leone, Andy Racheleff, and Tim Draper speak. As three of the most influential figures in venture capital, their insights and experiences were truly inspiring. I was particularly moved by Doug Leone's parable about having green blood running through his veins, which demonstrated his deep commitment to Sequoia.

What were some of the most memorable experiences building companies with Rocket?

One of my very first tasks at Rocket Internet was starting a direct-to-consumer company and going to $1 million in monthly burn within 6 months. That itself was obviously no achievement. Standing in front of 70 employees and announcing its insolvency was brutal: this was one of the toughest and most humbling moments in my career so far. It was a heartbreaking decision, but it was necessary to ensure the survival of the company. I had to be transparent and honest with my team, and it was a difficult conversation to have. However, I learned a lot about leadership and resilience during this time.

Another memorable experience was convincing founders with over 10 years of experience, despite only being in the job for a couple of weeks: this was a challenging task that required a lot of persuasiveness. I was able to use my passion for the industry and my energy to build strong relationships to convince them to trust me and my vision.

Finally, travelling the portfolio a week before the global lockdown: this experience was both exciting and nerve-wracking. It was a critical time for the portfolio, and I had to ensure that everything was running smoothly and that we were prepared for the big unknown crisis ahead. It was a unique experience that taught me a lot about crisis management and adaptability.

What was unique about how Rocket built companies vs. what you saw elsewhere e.g. SF?

1. Focus on Execution: Rocket prioritized execution above all else. Rather than getting caught up in endless discussions and theoretical debates, they emphasized taking action and getting things done. This relentless focus on implementation set them apart from others.

2. Speed over Patience: Unlike the prevailing culture that emphasized patience and meticulous planning, Rocket valued speed and agility. They operated in a fast-paced environment, where decisions were made swiftly, and rapid progress was the norm. This allowed them to quickly seize opportunities and gain a competitive edge.

3. Ownership over Collaboration: While collaboration is often praised as a cornerstone of entrepreneurship, Rocket placed a strong emphasis on individual ownership. They believed that taking full responsibility for one's projects and ventures drove accountability, efficiency, and ultimately, success. This self-driven approach differentiated Rocket's style from the more collaborative environments commonly found elsewhere.

How did the transition from Rocket to Flash come about?

Whilst company building with Rocket taught me some important lessons, the pandemic offered me a real opportunity to reflect on how we were kickstarting companies. It was obvious that some changes needed to be made to the model and that I would need to persuade our stakeholders.

I founded Flash off the back of some important insights:

1. Founders always first: it became clear that the founders we backed would need to be in the driving seat. Specifically, it was important that founders would reach their own internal point of clear conviction around the opportunity and space that they were going after. We would be their sparring partner to help them get there.

2. No shared services: it was important that each individual company would become its own nexus for great talent. The best product led companies and founders are able to recruit outstanding talent. The shift from B2C to B2B companies also invalidated the need for internal resources from Rocket to be deployed to companies.

3. Competitive deal terms: we realised that in order to compete for the best talent that we need to invest on fair and competitive terms to win the best founders.

After convincing our stakeholders, Flash was born and off to the races.

What’s your superpower?

My energy level because it translates in to persistence, resilience, relationship building and relentless support of founders.

We know that you wanted to be an entrepreneur - so why start Lucid Capital now?

Partnering with amazing entrepreneurs from companies like Everstox, Razor, Spenmo, Ofload, Flash Coffee, and many others taught me great humility. I realized that there are many entrepreneurs who are better suited to running companies than I am. They are smarter, more charismatic, and more patient. However, I also realized that I excel at helping founders navigate the enormous uncertainty in building a company from zero to one.

So, I asked myself how I can maximize my personal impact and realized that it's by supporting exceptional people and helping them make the right decisions. Lucid Capital is my calling.

What are your biggest passions outside of work?

1. Family: Spending time with my wife Kira and daughter Cosima is my top priority. Whether it's weekend brunch, tummy time, or simply having a date night once a week together, I always make sure to carve out quality time for my family.

2. Football: I am a huge fan of Bayern Munich and love watching games on TV or even attending live matches. Since my teenage years I am fascinated by the solidarity and unconditional support I experienced from fans in multiple stadiums across Europe.

3. Hunting: Another activity that I enjoy is hunting. There's something about being out in nature and tracking down game that is both challenging and rewarding.

4. Working out and playing padel: Staying active is important to me, and I enjoy working out at the gym or going for a run. I also recently discovered the sport of padel, which is similar to tennis but played on a smaller court with walls. It's a great way to stay fit and have fun at the same time!

We heard you just became a father - how is fatherhood treating you?

Starting another fund may not be a top priority for new parents, especially in the first few weeks after the child's birth. There are a lot of changes that come with a new baby, such as new routines and schedules, and a shift in the relationship with your spouse. It can be a chaotic time, with little sleep and frequent diaper changes. However, as the baby begins to smile and show their personality, it can completely change your perspective and priorities in life. Suddenly, love takes on a whole new dimension and becomes your top priority.

Tell us your favourite joke.

I’m not a joker. I leave that to Yash.