Apr 1, 2024
Andreas Stavropoulos, a venture capitalist and entrepreneur, came to the United States from Greece at 18 and has been in the United States ever since. His big moves include marrying his high school sweetheart, arranging their lives around graduate school, medical school, business school, and moving to California. He is now 55-years-old and is excited about the third act of his life, where he can choose where to spend his time more than he used to.
A Career as a Venture Capitalist
Andreas started his career as a venture capitalist in 1999 and has been doing so for over two and a half years. He has stopped making new investments in this endeavor and is now spending most of his time back to nonprofit public service and helping his country. He is increasingly spending more time back in Greece. In the third act, Andreas is considering the empty nest and choosing where to spend his time. He is now in the third act phase, where he is stepping back from full-time work, focusing on what he chooses to do with his 20+ 25+ productive years. This involves stepping back from full-time work, reducing board load, and not chasing after new deals.
A View of the Business Landscape in Greece
Andreas talks about his decision to pursue public service in his third act. He gives a brief overview of the crisis Greece has experienced since the 1980s. The crisis was ushered in after a short, populist five-year phase of trying empty promises. However, in 2019, a new generation of moderate, business-friendly leaders emerged, inoculating voters against the empty promises of populism. Greece is now a leader in this regard, showing the rest of Europe how a post-populist society and governance model can look like. The generation of leaders in power is younger and more business friendly, making them an opportunity to help the country catch up with Western Europe. He is also working on a board of a private company that manages large privatization and public-private partnerships in Greece, such as airports, ports, and highways. Another area of focus is AI. He is on an advisory committee to the prime minister on topics related to artificial intelligence, and he talks about the influence of Greek diaspora.
On the Board of a Privatization Entity
Andreas discusses his experience on the board of an entity that manages privatization. The board includes seven independent members. The nominating committee has combined complementary skills, providing a sound foundation of skills in various areas. The finance side of the board includes working with portfolio companies to mature them for financing, going public, or getting sold. The board also oversees state assets that are not ready for deal-making, designing business plans and leveraging them to create something attractive to private investment while maintaining upside for the state. The board also involves working with bankers and consultants to do transactions, as well as fiduciary duties. They also work with assets to maximize value and develop eco-friendly tourism activities. The advantage of being on the board is learning about the country's large construction projects and local opportunities efficiently. Additionally, working with local players, such as large investors and consultants, allows the board to build a network that allows them to understand data and the players in a relatively small economy.
Managing and Motivating People
Andreas shares his insights on the business world and the way things work. He explains that talented people, particularly project managers, can be difficult to unleash due to non-meritocratic and bureaucratic processes. For example, Greece's promotion system was purely seniority-based, based on degrees and years of service. However, this approach has led to a loss of motivation for people to go above and beyond. Andreas has learned the importance of thinking about reward systems and what drives human motivation. He believes that humans are rational and evaluative maximizers, constantly processing inputs and making decisions.
Third Act Pursuits and Dharma as a Guiding Principle
Andreas discusses his personal portfolio, including his involvement in public service, sailing, and travel. The couple plans to focus on their children and professional responsibilities, with Andreas' wife aiming to maintain her FTE at Stanford. He and his wife have also been involved with education, serving as chair of the board and treasurer at their children's school. He is currently president of the Alumni Board for Harvard Business School and has recently joined the board of a nonprofit that provides policy recommendations for the diaspora of Greece.
Andreas believes that leaving professional firms is intentional and requires planning and commitment. He has had to tell his partners about entering a new phase, which involves changing their brand and deciding who will be in and who will not. Andreas discusses the concept of Dharma, which translates to roughly "destiny, duty, purpose.” Meditation, a spiritual element that began about 567 years ago, helped him understand their essence and purpose in life. The COVID-19 pandemic forced him to reevaluate and rethink his beliefs. He suggests that the Dharma concept is not prescriptive, but rather a gradual, intentional approach to life. He suggests that by focusing on the essence of their goals and leaving a mark on the world, they can evolve in the right way.
Lessons Learned in Hiring Talent
Andreas shares his lessons in hiring people who are not just like him, but also have different backgrounds, approaches, and styles. He emphasizes that having diverse people around you can lead to better outcomes overall. The biggest lesson learned is to stop thinking about hiring people based on their appearance or experience. Instead, focus on having people with different backgrounds, approaches, and styles that work well together. It's not about being friends or building a nice place to work, but about creating fair and purposeful environments. Another important lesson learned is the importance of communication and truthfulness in venture capital. Building a reputation goes beyond single interactions, and it's never about a single moment. Instead, it's about building value over multiple years, and in many cases, those same founders or employees will go on to other companies. Instead of being transactional, it's crucial to be upfront about what you stand for and what you can help with. Being upfront and admitting that you don't know is difficult, but it's essential for long-term success.
Influential Courses and Professors at Harvard
Andreas discusses his courses and professors at Harvard that continue to resonate with him, whether it's professional or side interest. He highlights Justice with Michael J. Sandel as the most relevant course, and his computer science classes on algorithms have taught him the ability to think systematically and break down problems in a way that works for him. He plans to spend a chunk of his third act living in Greece, despite being away for nearly 35 years, and he believes that the culture, business outlook, and family connections are all factors that lead to better quality of life.
Timestamps:
02:56 Life phases and prioritizing personal choices in the third act
07:22 Greece's economic crisis and potential for growth
14:06 Board experience and diaspora contributions
19:07 Government work, talent, and motivation
25:10 Human behavior and personal interests
27:58 Personal growth and planning for a successful third act
33:44 Intentional exit from professional firm after 10+ years
39:31 Selecting and working with talented individuals in the venture capital industry
45:28 Retirement, quality of life, and family ties in Greece
Links:
LinkedIn: https://www.linkedin.com/in/andreasstavropoulos/