Lucid People III: Interview with Srecko
Continuing our interview series with the individuals who have shaped Lucid Capital's short history.
Tell us a little about your upbringing.
I was born and raised in Frankfurt, Germany to Croatian parents. My father came to Germany with nothing more than the clothes on his back. My mother raised the first two of my four sisters alone while my father was working as what later became known as a “Gastarbeiter”. Every summer we went to Croatia. Being raised in two cultures and a large family had a profound impact on me.
I was an unusual child in school, memorizing the lexicon and walking around during class when I grew bored. After failing miserably at a football career (people called me "Lucio" because I was a tall center-back who loved to push forward aggressively), I became fascinated by philosophy. This curiosity led me to finish my Abitur as valedictorian with one of the best diplomas in the county. One evening, I googled "Best German Business School" and luckily ended up studying at WHU in Germany with multiple scholarships, and later at the LSE, writing about George Soros' Theory of Reflexivity.
What values did your parents instill in you?
Hard work and integrity. I am particularly in awe of my parent's generation, who always had a smile on their faces despite facing numerous hardships. They were deeply entrepreneurial, venturing into unknown countries, not knowing where they would sleep, and surrounded by people speaking a language they did not understand.
My father, in particular, is one of the most honest and principled people I know. It is important to me that I approach all business partnerships and opportunities with the same integrity, treating others as I would like to be treated myself.
What was your earliest experience with entrepreneurship?
I got my first job when I was 14 years old, and as soon as I turned 18, I opened a trade business in Germany to freelance ("Gewerbe"). I was obsessed with being independent and not relying on my parents for money. During this time, I did almost everything to generate cash - selling G-Shock watches during a Christmas promotion at Galeria Kaufhof, writing reviews for the newly launched Yelp in Germany, working as a security guard at Frankfurt Stadium, and even selling a special edition Vogue Magazine in person on a shopping street.
However, my entrepreneurial spirit truly ignited when I grasped the concept of leverage. When an opportunity arose, we organized more freelancers for our gig, and the cut that we received through our referrals was more than our personal wage. That's when I realized, "OK, so this is how the world works." From that moment, I knew that I wanted to be an entrepreneur one day, and that productivity stems from building scalable products and organizations.
What was Srecko the teenager like?
I wish I was rebellious - unfortunately, I was not! Instead, I was an insanely determined student who actually enjoyed school and learning about subjects like Physics and Math. I remember a friend of mine coming to me at some point and saying: “You are like a werewolf - every time you enter school, you shape-shift”. I was the kind of guy who would play football, go out, and have a strong social circle, but then in school, I would sit in the first row and be relentless in discussions. It may sound cheesy, but my goal was always to make the most of the opportunity I was given and not waste it.
You studied at WHU - what influence did it have on your life?
An incredible one. The first one was realising that all the founders of successful companies like Zalando, Rocket Internet, StudiVZ, Hellofresh, or Enpal had started exactly where I stood. You get to see colleagues that are just 1 or 2 years older than you starting ventures. And then you realize: everybody just cooks with water, and the palm is in your hands.
The second was the tight-knit network I built. WHU is the university in Germany that historically produced the highest number of unicorns per student. Many of my closest friends and business contacts come from people I met during the introductory week. I like to think of WHU as a "big boarding school for grown-ups" - out of 8,500 people in Vallendar, around 1,000 are students, so it's impossible not to meet everyone. I spent a lot of time with my classmates, many of whom went on to become operators or investors.
You later went on to become a VC-backed founder. How did your time as an operator shape your role as an investor?
Being a founder is one of the toughest things you can do in life. In the beginning, it's feels like chewing glass and staring into the abyss. I believe it's incredibly tough to do what we did at Flash and now Lucid if you haven't sat in these shoes yourself. It involves understanding what it takes in the 0 to 1 phase, the emotional stress, the madness of the journey, and what "help" really means. It's different when you invest at Foundation vs. Growth. I always give the example of an investor who tells their founder they should increase their retention by 5%. It’s easy to come to that conclusion, but how do you do it? I think many just lack the motivation to take this step.
On the other hand, it's incredibly important to understand your role as a partner to a company. You are not the founder, although it may be tempting to act like one. I love to voice my opinions strongly but respect that it's not my decision to make. Although I believe it’s job to be brutally honest, it's always the founders who are in control of their ships. This respect starts for me the first time I meet a founder. I have a policy: if somebody takes time to talk to me, they will always receive a transparent answer. You would be surprised by the amount of bad processes and ghosting founders witness.
How did you select your first investor as a founder?
For us, the number one factor was the personal relationship. I believe this is how most early-stage founders choose their partners (there is even a great survey by our friends from Creandum). Many VCs and LPs believe it's all about the brand.
The first person who believed in us was Christophe from Atlantic Labs. He was not only our investor, but also our mentor. He showed us unwavering belief and support as a team. I still remember that every time we came in on Saturdays to work, Christophe was there, answering emails and working for his founders. There are few people who put in the amount of energy and positivity as he does, and when I worked at Atlantic, I never heard him asking "Who else is looking at this?" because what he only cared about was our conviction and diligence.
There is something magical about the first check you receive as a founder - it's a bit like your first girlfriend or boyfriend. More will come along the way, but I never forget the first person who believed in you when there was just an idea. This is why I'm so excited to shape this stage with Lucid, and to do so with a clear strategy of working with a prepared mind at foundation stage.
What are you looking for in founders?
There are actually many things that I look for, and our Founder Napkin summarizes them quite well. But for me, there are two things in particular: firstly, I love people with an "X-Factor". It's that special something that makes them unique, that draws you to them, the 5% craziness that pushes them. Think about any great founder of the past decade; I'm sure you'll find something in that regard. That's why I also love meeting people in person. You can often feel this in face-to-face conversations.
The second thing I look for is endurance. The very first angel investment I made was in Finoa, which is now a leading global crypto custodian backed by Balderton and licensed by the German Bafin, among others. Finoa was founded in the middle of the crypto winter in 2018. I remember having lunch with the founder, Chris, who had had a terrible week. I told him, "You're a cockroach - you would even survive nuclear winter" (…he proved to be one). As a founder, you're constantly up against the wall, and every day you solve one problem only to be met with the next one.
What is your vision for Lucid Capital?
The vision is simple: to build a category-defining fund that delivers top-decile returns. We will treat our firm like a venture, and think deeply about how we can create a long-lasting, top-performing organization that provides the best possible product to our founders. I am thrilled to be a founder once again, this time in Venture Capital.
What are hobbies of yours that few people know of?
Like Ben Horowitz, I am a huge fan of hip-hop and rap music. Some may rightfully attribute this to my upbringing in Frankfurt, but I believe there are even some business lessons to take away from some of the lyrics. While football is my first love, I also watch and occasionally practice jiu-jitsu and mixed martial arts. It's a stark contrast to my love for more intellectual topics like philosophy or technology, but I enjoy the opportunity to switch my brain off and focus completely on the task at hand. It also teaches humility.
Last but not least: what’s up with your name & how do I pronounce it?
The “cko” is pronounced “tschko”, if you know this it becomes easy: “Sretschko”. It’s the Croatian name for Felix - the lucky one.