Rostislav Riabchikov
"Just like Giorgio Moroder supported artists to create iconic music, great VC investing is about backing founders and helping them bring their vision to life"
My Backstory
Where were you born?
I grew up in Essen, the industrial heart of Germany, where people are known for being hard workers, straight shooters, down to earth, and easy to grab a beer with. My parents taught me the value of dreaming big and working hard. My mother founded a successful biomedical startup in the 1990s, growing it for 15 years before selling to a large firm. She taught me about perseverance, breaking through barriers, and doing simple things better than overconfident incumbents. My father started as a car mechanic before founding his own dealership in the 1970s. He saw success come and go with industry changes, but his amazing relationship skills allowed him to relate to anyone.
Starting at age 8, my parents had me help out on a small farm, which helped me appreciate physical labor. In my teens, I worked admin roles at my mom's startup, learning efficiency and attention to detail. At 16, I took a monotonous job besides high school at a bank’s account statement printing department that taught me patience - which is valuable as an early-stage investor. I studied energy management and finance, doing my undergrad in Germany before a Master's at Purdue and Tsinghua.
After university, I started in corporate finance and M&A, focusing on renewable energy deals. I then joined a large utility amid industry transformation during and after Fukushima. My role changed to business development in batteries, grid storage, and distributed energy. I also supported early tech investments at the intersection of energy and power retail tech. Later, I helped a global engineering firm leverage its vast hardware expertise to partner with early-stage hard tech founders - right before embarking on my own journey as a founder (unsuccessfully).
Where were you born, where were you raised?
I was born and raised in Sochi, Russia.
What is the area you are from famous for?
Sochi, once a premier Russian resort town, shot to international fame after hosting the 2014 Winter Olympic Games. This transformation into an Olympic hub has highlighted its wide array of opportunities, from tourism to sports infrastructure. Life in Sochi is typically relaxed, with a laid-back southern vibe, but when it’s time for business, the locals quickly spring into action.
What did/do your parents do?
My parents have been deeply involved in the real estate industry. From a young age, I spent time on construction sites, where I developed a deep love for architecture and the processes involved in building and designing structures.
Any siblings when you grew up?
I have a younger sister, six years my junior. Growing up, I got to play the role of the older sibling while simultaneously being her best friend, offering advice and support as she navigated her studies and life.
What are the two things (outside of school) that you spent the most time on when you were a kid or teenager?
I was really into sports, especially ice hockey. Taught me discipline, teamwork, and how to stay upright on slippery surfaces. Besides that, I spent a lot of time volunteering as a lifeguard's assistant. These experiences gave me a deep sense of teamwork and valuable life lessons about the importance of helping others.
What are you missing from your younger years?
The village where my grandparents lived holds so many cherished memories. I spent summers there, helping out on the farm and tending to the garden. Whenever I think about it, I can't help but smile and reminisce about the simple joys and hard work that shaped me. It's a place that always brings a flood of happy memories and a grin to my face.
Did you have a side job during school?
During my high school years, from 14 to 18, my summers were spent working in coffee shops and bars. Those experiences taught me more than just how to make the perfect cappuccino or mix a decent lemonade. I honed my ability to connect with people, mastering the art of listening attentively and understanding their needs. Plus, I learned how to juggle multiple orders and handle the occasional coffee spill with grace. It was a crash course in customer service and multitasking that has served me well ever since.
What did you study, and where?
I pursued International Relations at Saint Petersburg State University of Economics and Finance, and one degree wasn't enough, I delved into a double degree in Law, Economics, and Management at University Grenoble Alpes. For my Master's, I moved to Germany to study Management in Hamburg, with an exciting Erasmus+ stint in Paris at INSEEC Grande Ecole. It was a whirlwind academic adventure across Europe, packed with learning, exploring new cultures, and perhaps a bit too much coffee.
Summarize your work after university and before Foundamental.
Throughout university, I sought diverse experiences across industries globally. From media-strategy consulting to in-house roles in emergency medical equipment and climate tech startups, I delved into fundraising, strategy, and operational insights. My ultimate aim was to explore the other side of the coin in venture capital. Building a robust network, I eventually secured a role in an industry-agnostic VC fund from Singapore. It was a whirlwind tour of industries, packed with lessons, challenges and good friends.
What is your story of getting into Foundamental?
My journey to Foundamental began unexpectedly during my time at a previous, industry-agnostic VC firm. Amid our exploration across sectors, I became captivated by mining tech. I sought out like-minded funds and found Foundamental, drawn by their commitment to innovating AEC and mining.
What solidified my connection was more than professional—it was personal. Growing up around construction sites because of my father's career, Foundamental felt like a nod to my roots, fueling my desire to create direct change in the industry.
I Am On The Lookout For
What makes a great VC investor?
A great VC investor probably possesses a blend of many skills, among others strong people skills, a knack for networking, and solid negotiation abilities. Being people-centric helps in understanding founders' visions and building relationships. Networking aids in sourcing promising opportunities, while negotiation skills are crucial for structuring beneficial deals.
Additionally, successful VCs often have a keen eye for market trends, a strategic approach to risk assessment, and the ability to offer valuable guidance and support to portfolio companies. It's a mix of being part detective, part coach, and partner to all the founders.
What are 3 things you look for in a founder?
First and foremost, exceptional communication skills are crucial. The ability to convey intricate concepts in a manner that's understandable to various stakeholders—whether it's investors, team members, or customers—is vital. Complex ideas need to be distilled into clear, digestible information, and founders who excel at this have a significant advantage.
Secondly, having a clear vision throughout the fundraising process is imperative. Understanding the relationship between risk and cash flow is pivotal in securing funding. It's about peeling away layers of risk with each funding round, demonstrating milestones achieved and risks mitigated. This strategic approach to aligning funding needs with risk reduction sets successful founders apart from the majority.
Lastly, beyond these factors, I also look for adaptability and resilience in founders. The entrepreneurial journey is rife with unforeseen challenges, and the ability to pivot, learn, and persist through difficulties is paramount. Founders who can navigate uncertainty, learn from setbacks, and adjust their strategies accordingly tend to build more robust and enduring ventures. It's like being a superhero who can turn obstacles into stepping stones.
What are the things in a business that excite you?
In the business world, what really excites me is a unique branding. While making a difference and contributing are important, I see branding as the key that supercharges a company's ability to stand out. It's not just about looks; it's about building trust and telling a memorable story. A strong identity turns heads, earns loyalty, and makes a lasting impact, making it the secret sauce for success.
What are values that are ultra important to you in other people in business life. Why?
In the business realm, integrity tops my list. It's all about honesty, reliability, and ethical behavior. When people do what they say they'll do and are upfront about things, it builds trust, and that's crucial in any partnership.
Respect is another big one. It's about valuing everyone's opinions, time, and contributions. When there's mutual respect for diverse viewpoints, it creates a positive work environment and sets the stage for effective collaboration.
Adaptability is a must-have today. Being open to change and new ideas, and swiftly adjusting to evolving circumstances, is what keeps businesses ahead of the curve.
Lastly, collaboration is key for me. Working together, sharing knowledge, and supporting each other breeds innovation and problem-solving, leading to better outcomes. It's like a well-oiled machine where every part works in harmony to drive success.
Describe what 'partnership' means to you.
Partnership is like forming a dynamic duo where two or more entities join forces to achieve common goals. It's a collaboration rooted in shared values, complementary skills, and a mutual commitment to success. Imagine Batman and Robin teaming up, each bringing their unique strengths to the table, creating a synergy that propels both parties forward. It's about working together, having each other's backs, and celebrating victories as a united front.
What are you chasing in your life?
It's about finding that genuine happiness in connections, experiences, and personal growth. I'm chasing those moments where everything's a bit on the edge, where there's a hint of risk because, well, no risk, no champagne, right? It's in those moments of challenge and thrill that life feels truly alive, where growth and excitement merge to create an unforgettable journey. It's like living on the edge of your seat, where the thrill of the unknown keeps you engaged and exhilarated, making every step of the journey memorable and rewarding.
What intrigues you? As in, you see or hear something like this, you stop whatever you currently do.
What intrigues me most are transformative solutions with the potential to change lives on a grand scale. I'm all about diving in, understanding the details, and championing their adoption. But equally significant are those spontaneous moments with my family. Whether it's an unplanned gathering or some quality time together, these moments are priceless. They ground me, offering joy, support, and a sense of belonging. I prioritize and cherish these relationships, knowing that balancing my pursuit of world-changing solutions with nurturing these vital connections is key.
Think of VC as an artisan craft, where every craftsmen has their unique method and finesse. How would you describe your unique 'craft' to VC?
I focus on the founders themselves. Every investment feels like entering a unique partnership, something truly special. I prioritize understanding the vision, passion, and resilience of the founders. My approach isn't just about funding; it's about building relationships, offering support, and providing tailored assistance to help founders thrive. Think of it as being a mix of mentor, cheerleader, and occasional therapist—because sometimes, the road to success needs a bit of encouragement and a lot of coffee.
Any favorite readings?
My favorite readings cover a wide spectrum, each offering a unique lens on the human experience. 'Robinson Crusoe' captivates me with its exploration of survival and human resilience. There's something fascinating about a guy who turns a deserted island into his personal DIY project. Then there's Dostoevsky's 'Crime and Punishment'" a classic that dives deep into the murky waters of human psychology—it's like a psychological thriller with a Russian twist. And let's not forget "Steppenwolf" by Hermann Hesse, a book that takes you on a mind-bending journey through the complexities of identity and existential angst. Each of these books brings something different to the table, whether it's adventure, introspection, or a touch of philosophical pondering.
What is your favorite quote or mantra that can be applied in a business context?
'The greatest glory in living lies not in never falling, but in rising every time we fall.' - Nelson Mandela. This quote speaks to the value of resilience and perseverance in overcoming challenges. In business, it underscores the importance of bouncing back from failures or setbacks. It's a reminder that even when things go sideways, the real victory lies in how you pick yourself up, dust yourself off, and dive back into the fray. After all, in the rollercoaster world of business, it's not about avoiding the falls but mastering the art of the comeback.
Cool. Now give a second quote or mantra you like in a business context.
'Believe you can and you're halfway there.' - Theodore Roosevelt. It's a reminder that the biggest hurdle is often our own mindset. Whether you're launching a startup or tackling a tough project, believing in yourself is the first step toward success. It's your secret weapon; with confidence on your side, you're already halfway to victory.
What is your secret ninja-skill?
My strength is probably adapting to various situations swiftly. I aim to understand and adjust to different contexts, much like a ninja navigating different environments and challenges. Whether it's providing information, generating ideas, or just having a chat, I try to be flexible and helpful in any scenario that comes my way. It’s all about being quick on my feet and ready to tackle whatever pops up, with the agility of a ninja and the helpfulness of a trusty sidekick.
In what ways do you feel inferior to some people you look up to?
Sometimes I might feel like I lack a particular skill or experience that someone I admire possesses. Yet, I view it as an opportunity to learn and grow, rather than feeling inferior. Everyone brings something unique to the table, and I believe in embracing those differences as chances to improve myself. It's like seeing someone else's superpower and deciding to add it to your own toolkit. Instead of feeling down, I see it as a chance to level up and become even better.
If you were a super-hero, what would be your super-hero name?
Quantum.
What is one person in the world you would like to have dinner with?
I'd love to sit down with Giorgio Moroder. His influence on music, especially in the realms of electronic and disco, is legendary. This is the man who basically put the 'boom' in the boom-boom beat. His innovative approach to sound and production techniques has shaped the music industry in profound ways. Imagine getting to pick his brain about his creative process and the evolution of music—what an incredible experience that would be. Plus, the stories he could share from the golden age of disco would probably be worth their weight in gold records. It would be like having a backstage pass to the coolest music history lesson ever.
What can you nerd out over for hours with the right discussion partner?
The evolution of synthesizers, the birth of different sub-genres, and the impact of certain artists on soundscapes—there's so much depth and history to explore. From the glittery disco days of the '70s to the rise of electronic music in the '80s and beyond, it's all endlessly fascinating.
Synthesizers transformed from quirky gadgets to the backbone of modern music, sparking new genres along the way. DJs played a crucial role, using these technological marvels to create seamless musical journeys. The influence of artists like Daft Punk and Laurent Garnier adds even more layers to this rich tapestry. Each has shaped the ever-evolving landscape of music, making it a treasure trove of innovation and inspiration that never ceases to amaze me.
When someone who knows you in your business life very well were to describe you, what adjectives would they use for you?
I've heard people describe me as thoughtful, resolute, fun, and direct.
Is there something you would never mind spending a lot of money on?
Family, education, music.