A conversation with Katrin Geyskens: Pioneering venture capital and embracing innovation.
As a prominent venture capitalist and Managing Partner at Capricorn Partners, Katrin Geyskens has carved a niche in the world of private equity and venture capital. With over two decades of experience, she has been at the forefront of transformative investments in technology, digital health, and cleantech. In an insightful interview, she shares her journey, the challenges she faced, her investment philosophy, and her view on the responsible use of artificial intelligence (AI). “We have a role in promoting the positive aspects of AI and educating people about its potential benefits.”
From consulting to VC: Impact and long term horizon
Before falling in love with venture capital (VC), Katrin Geyskens had a short career in banking and management consulting followed by a try at a start-up. “This was at the time of the internet hype”, Katrin looks back. “This turned out to be a bubble, but many management consultants - including myself - thought they knew better and wanted to get involved in the internet space.”
Katrin and her colleagues from what is now known as A.T. Kearney started their own company and tried to raise capital. “As good consultants, we analyzed everything in great detail before taking action, but by the time we were ready, the window of opportunity had passed”, she says. “In hindsight, it's probably good that we had some commitments, but we never finalized them, especially as the internet bubble burst shortly thereafter.”
One of the VC funds she talked to was Capricorn Partners. “They quickly told me that our idea was not sustainable, but if I was ever looking for a job as an investment manager, I could come back.”
Katrin did go back, and the VC-industry suited her so well that she never left it again. “The big difference compared to consulting is that in venture capital, you’re involved in building something, similar to what I experienced with the startup. My respect for entrepreneurs is endless because it is incredibly difficult. The key difference with consulting is that, as a consultant, you usually remain on the sidelines, and when you leave, not much typically changes. In venture capital, you really have a long-term impact. You’re not the entrepreneur, but you’re fully behind them, working together to build something, both in good and bad times.”
Challenges and triumphs as the first female president of the BVA
Reflecting on her tenure as the first female president of the BVA, Katrin recounts the early days of private capital in Belgium. "When I became president over ten years ago, private capital was still less recognized", she explains. "The major challenge was uniting the diverse groups within private equity and venture capital to speak with one unified voice, particularly when addressing policymakers."
Katrin emphasizes the importance of advocating for favorable fiscal policies and programs that support innovation and startups. "My goal was to highlight the positive impact of venture capital, not just in terms of subsidies but also through commercial investment", she says. "I am most proud of how we worked to shape positive perceptions of venture capital and private equity and highlighted how this type of investment creates jobs, fosters innovation, and helps bring new technologies to market.”
Qualities of an inspiring leader in technology and venture capital
Named one of Belgium’s ‘Inspiring Fifty’, Katrin believes that certain qualities are essential for success in venture capital. "Optimism, curiosity, and openness are crucial", she notes. "It's about maintaining a long-term vision and avoiding the hype. You need to be comfortable with uncertainty and taking risks, but not be impulsive. Humility is also important because there's so much we don't know.”
Katrin also stresses the importance of humility and human relationships in venture capital. "Our role is to support entrepreneurs, not control them", she asserts. "Even in a deep tech environment, the success or failure of a company often comes down to the human factor - how well entrepreneurs and investors work together. In venture capital, we often work as part of a consortium, and it's vital to keep everyone aligned and working towards the same goals to ultimately achieve a successful exit. Human relationships are key. We say 'no' much more often than 'yes', and it’s important to do this in a constructive and positive way. There’s plenty of money and smart people in the market, but you need to build trust and foster long-term relationships with entrepreneurs who are the right fit for you.”
Capricorn Partners’ investment strategy: A focus on technology and impact
Capricorn Partners has developed a distinct investment strategy centered around technology-driven differentiation. Although not officially an impact investor due to various legal considerations, positive social impact alongside financial returns is also deeply ingrained in Capricorn’s DNA. "We invest in companies where technology or intellectual property serves as a differentiating factor", Katrin explains. "We generally avoid companies with 'me-too' products that focus on marginal improvements . We focus on themes like digital health and cleantech, where we see the potential for substantial impact."
Katrin highlights Capricorn's selective approach to digital investments, particularly those aligned with the Sustainable Development Goals (SDGs) and robust Environmental, Social, and Governance (ESG) strategies. "We were among the first in the Benelux and Europe to focus on digital healthcare about 15 years ago when it was still a nascent field", she says. "On the cleantech side, we were pioneers in clean chemistry, recognizing the need for innovation in one of the most polluting sectors."
An example of a successful investment is in Icometrix, a company based in Leuven that specializes in analyzing brain scans using artificial intelligence. Capricorn invested in Icometrix in early 2016 when it was a small spin-off from a university. Initially, the company lacked a clear focus, but over time it has successfully found its niche, achieving product-market fit and gaining acceptance among various stakeholders in the healthcare sector.
Geyskens highlights the importance of AI in healthcare, for example in making processes like brain scans for Alzheimer's patients more efficient, objective, and cost-effective. Icometrix's technology is well-positioned to scale within the healthcare industry exploring several partnerships with large OEM (original equipment manufacturer) and pharma companies. Icometrix remains in Capricorn's portfolio, with high expectations for its potential global impact.
Navigating challenges in responsible AI and regulation
Katrin is acutely aware of the challenges companies face when adhering to responsible AI principles. "The first challenge, especially in Europe, is finding a balance between regulation and innovation", she notes. “Europe has some of the strictest regulations you can imagine, which is why some big tech companies have decided not to develop their AI models in Europe or to introduce them here. We try to help our start-ups navigate this complex regulatory landscape. When you have an idea for a product and want to develop a new model or algorithms, you need access to the right data. But it's not always top of mind to consider the regulatory implications, like those coming with the AI Act when it is fully implemented. A lot of work is needed to ensure compliance from the start, which can be daunting for start-ups. We help by breaking it down into smaller steps that don't require a lot of resources or time but put them on the right path, ensuring that they avoid issues later on.”
She also addresses the sustainable footprint of AI and its societal impact. "AI's energy consumption can be alarming, and we focus on making our operations as energy-efficient as possible", she says. The third major challenge is the societal impact of AI. “It’s important to ensure that AI is not seen as something dangerous that will take away jobs, but rather as a tool that is necessary and beneficial. For example, with companies like Icometrix, AI can have a very positive impact on healthcare. It’s crucial to focus on AI applications that won't take jobs away but will improve our lives, our healthcare or our energy supply. We have a role in promoting the positive aspects of AI and educating people about its potential benefits.”
Looking ahead: Trends in venture capital and technology
Looking to the future, Katrin sees more evolutionary than revolutionary trends in venture capital. “VCs are very good at marketing the next big thing, but I actually see more of a trend toward continuing to develop and bring to market technologies that have been around for a while, rather than something completely new and groundbreaking suddenly emerging", she explains. "The last two years have been difficult for the venture capital market and we are likely to see changes among the VC players themselves."
Katrin believes that the current tough environment will weed out those who entered the market during easier times. "Venture capital is a long-term business", she asserts. "The question is, can you weather the storm? Hopefully, you have enough solid investments and haven’t chased too many hype-driven deals."
Work-Life balance and mentorship: A blended approach
On the topic of work-life balance, Katrin believes that if you enjoy what you do, balance comes naturally. "There isn't a strict separation between my professional and personal life - it's more of a mix", she says. "I’ve been fortunate to be surrounded by interesting and smart people who have acted as mentors, even if it wasn't structured. If I can name one person who influenced me, it would be Jos Peeters, the founder of Capricorn. He was one of the first in Europe to start in venture capital back in the early 90s.”
Katrin also values the opportunity to learn from young professionals. "I believe I learn as much from young people as they learn from me", she notes. "Mentoring isn’t always about passing on what you know - it’s also about being open to learning from others."
Conclusion
Katrin Geyskens’ journey in venture capital is a testament to the importance of vision, resilience, and adaptability in a rapidly evolving industry. Her commitment to fostering innovation, supporting entrepreneurs, and promoting responsible investment practices continues to shape the future of venture capital. As the industry faces new challenges and opportunities, leaders like Katrin will be instrumental in driving positive change and ensuring sustainable growth.
Read also: The inspiring career path of Jos Peeters, winner of the Lifetime Achievement Award
