In this episode of "20 minutes VC," host Harry Stebings interviews Christian Lang, the visionary founder and CEO of Tradeshift, a company revolutionizing business interactions with a network-connected cloud platform. Lang shares his entrepreneurial journey from digitizing invoices in Denmark to reshaping the EU's digital landscape, emphasizing the transformative potential of technology in global trade and the job market. He also discusses the impact of automation and the necessity of sustainable energy solutions to mitigate job displacement. Lang's unique approach to VC fundraising, his insights on brand importance in B2B, and his take on universal basic income and competition in the software industry are also explored. With over $200 million in funding, Tradeshift's growth story reflects Lang's innovative thinking and his ability to attract investment from diverse global sources.
You are listening to the 20 minutes VC with your host Harry Stebbings, found on Snapchat at H Stepbings with two B's. I'd absolutely love to see you there. And for the show today, being a founder's Friday, we have an incredible founder in the hot seat for you today. So joining me we have Christian Lang. Now. Christian is the founder and CEO at Tradeshift, the startup with the vision to transform the way businesses work.
The quote introduces the podcast and the guest, highlighting the significance of both the host and the entrepreneur being interviewed.
Yeah, I did my first startup when I was 19 years old, way before it. It was even cool back in 98. Read the book microserfs by Douglas Kuplan. I thought, this is what I have to do with my life.
Christian Lang discusses his early inspiration and the beginning of his entrepreneurial journey, tracing back to a book that influenced his career path.
And we decided, you know what? That's going to be the next big thing for business. And that's why and how we founded tradeshift.
This quote encapsulates the founding vision of Tradeshift, emphasizing the gap in the market that the company aimed to fill.
I think while we talk about globalization, we forget that technology is actually the biggest driver in change. In the job market, 80% of the jobs that disappeared in us manufacturing did not go to China. They went to technology.
The quote provides insight into Christian's perspective on the impact of technology on the global job market, suggesting that the focus should be on technology's role in economic changes.
So, I mean, actually right now robots are extremely primitive. We see these big automated factories and we think, wow, this is really fascinating. But they're super primitive.
This quote highlights the current limitations of automation technology and the potential for future growth and sophistication through machine learning and neural networks.
night. And I think these kind of things is going to be huge boosts to productivity and obviously also going to be rapidly outering the job landscape.
The quote suggests that technological advancements are anticipated to enhance productivity and change the current job market.
Look, overall, I actually think how you deal with the declining job market globally is probably going to be the biggest decider of who wins.
Christian Lan posits that managing the global job market decline will be critical in determining the leader in the technological race.
Because if you have free renewable energy, we have less of a social impact as jobs go, because we can actually produce food, we can produce almost anything we want.
Christian Lan advocates for investing in renewable energy to mitigate the social impact of job losses by facilitating the production of essential goods.
Yeah, absolutely right. I mean, if you think about the most of the things we consume on a daily basis, it comes down to energy cost.
Christian Lan confirms that energy costs are a fundamental constraint affecting daily consumption and the job market.
I mean, I come from a country know we essentially have universal basic income already implemented.
Christian Lan discusses the implementation of UBI in Denmark and its effects on ambition and innovation.
I mean, be very frank. Right. I think most of the b two b software space, the way we've been selling, the way we've been approached, it is pretty fucked if you look at it, right...
Christian Lan criticizes the traditional B2B software sales approach and suggests a customer-centric model similar to consumer software.
So what I'm asking is, how central do you think b to B brand is then, considering it's not been front and center for you in your growth and has never stalled you in you
Harry Stebbings questions the importance of branding in the B2B sector, referencing the company Tradeshift as an example.
"I think it's important to be very well known within the segment that making decisions of who you're interested in talking to."
This quote emphasizes the significance of brand awareness within a specific target market, particularly for decision-makers in that segment.
"How we structure our global supply chains is essentially how we structure the economy."
This quote relates the importance of supply chain to the overall structure of the global economy, highlighting the significance of what might otherwise be seen as a mundane aspect of business.
"I wear sneakers and cap to most of my meetings."
Christian uses personal style as an example of how branding can differentiate oneself in the B2B space, even in interactions with high-level executives.
"The first nine months we're essentially just working off tweets to try to get free work."
This quote describes the initial struggle of starting a business during an economic crisis and using creative means to compensate for the lack of funds.
"You need to compete harder. And a lot of your competitors, I mean, if you're fundraising or in an industry that's in an upcycle, everybody has money and everybody's trying to do something."
Christian explains the difference in fundraising dynamics between economic upcycles and downcycles, with downcycles requiring more effort to secure funding.
"I probably pitched 1000 plus times. And that's probably even an underestimate to raise the capital we raised."
This quote highlights the extensive effort and numerous pitches required to raise significant capital, illustrating the tenacity needed in fundraising.
"You got to believe more even than the vc that you are the best, right?"
Christian reflects on the importance of self-belief and confidence when pitching to investors, suggesting that entrepreneurs should have even more faith in their venture than potential investors.
"As you move from c to d round, it's all about the data, right?"
This quote indicates that as a company progresses through funding rounds, the emphasis shifts towards concrete performance data and metrics.
"Everybody knows the metrics. And I think you need to educate your investors about something new."
Christian comments on the current sophistication level of investors and the necessity for entrepreneurs to bring something new to the table to capture their interest.
Unfortunately, the transcript provided does not include details about Christian's networking strategies or how he inspires others, as the conversation on this topic was not completed in the excerpt. Therefore, no quotes or explanations can be provided on this theme.
"Capital is global today, right? I think lots of startups sitting in Silicon Valley, when you say vc to them, they think Sandhill Road."
This quote introduces the idea that the concept of venture capital is often geographically limited in the minds of many startups, despite the global availability of capital.
"We want to work with investors who have the long term view, who is not necessarily classic funds with rapid turnover, but who is almost more like Greenfield, who can think long term."
Christian Lan describes the type of investors Tradeshift seeks—those with a long-term investment strategy rather than short-term, rapid turnover funds.
"There is more capital than ever before in the world and they're all looking for things that stand."
Christian points out that there is an abundance of capital globally, and investors are searching for distinctive and compelling opportunities.
"Because essentially it shows you how many stupid things you spend your energy on every day you shouldn't spend your energy on."
Christian explains that the book provides insight into the unnecessary concerns that consume people's daily energy, suggesting a more selective approach to caring.
"Probably more diversified funds from the VC side, more diversified portfolios."
Christian calls for greater diversification in venture capital to foster a broader range of innovation.
"There's a huge opportunity in the ten to 15 year cycles because that's honestly how long it takes to develop the big things in this world, if not longer."
He highlights the mismatch between typical VC funding cycles and the actual time required to develop substantial innovations, suggesting longer funding cycles as an opportunity.
"Different mentors at different stages."
Christian emphasizes the importance of having mentors throughout different phases of one's career.
"Dave Pell is probably one of them I really love."
Christian identifies Dave Pell as a content creator he particularly enjoys for his humor.
"Podcast 20 minutes vc obviously Jason Lemkin and Saster is a must read for any startup SAS CEO."
He recommends specific podcasts and blogs that are essential for startup CEOs in the SaaS industry for their valuable insights.
"All of the ape software in the world in the future is going to be networked, it's going to be AI driven."
Christian predicts a shift towards AI and networked solutions in the future of enterprise software.
"It's been such a pleasure to have you on the show today."
Harry Stebbings conveys his appreciation for Christian Lan's contribution to the podcast.
"A big thanks to Morton Lund and Matt Oko for the intro today to Christian, without which the show would not have been possible."
Harry acknowledges the individuals who made Christian Lan's appearance on the show possible.