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Today β€” 23 December 2024Main stream

This 28-year-old went from summer intern to McKinsey partner in 7 years. This is what helped him progress.

23 December 2024 at 03:42
Aamanh Sehdev
Aamanh Sehdev is a member of McKinsey's most recent partner cohort.

McKinsey

  • 28-year-old Aamanh Sehdev was named a McKinsey partner this December.
  • After joining as a summer intern, he's climbed the ranks in just seven years.
  • Sehdev spoke to BI about how he heard the news and what helped him progress at McKinsey.

Aamanh Sehdev had spent a week in early December trying to distract himself by seeing friends and playing padel.

He'd been an associate partner for two of his seven-year career at McKinsey and knew there was a chance he'd be promoted to partner.

But there was a low number of elections this year, so he thought it was fifty-fifty.

The news usually arrives at the end of the week. But at around 8:30 p.m. on Wednesday, Sehdev received a call at home. It was from Tunde Olanrewaju, managing partner of McKinsey's UK, Ireland, and Israel offices.

"The nerves were kicking in, but he got straight to the point," Sehdev told Business Insider.

"Hey, it's great news. Welcome to the partnership. We're really excited to have you on board," Sehdev recalled Olanrewaju telling him. "I said thanks, but in a slightly higher pitch voice than I typically have."

Sehdev is one of around 200 McKinsey employees promoted to partner this December. Amid a slowdown in demand for consulting services, this year's cohort is one of the firm's smallest in recent years.

The promotion elevates him to one of the most senior positions you can reach in a major consulting firm. Partnerships are participatory, giving individuals a say in the direction of the firm. Those promoted to equity partners receive a share of the annual profits.

Tunde Olanrewaju
Tunde Olanrewaju, managing partner of McKinsey's UK, Ireland, and Israel offices, called Sehdev to give him the news.

Leon Neal/Getty Images

On McKinsey's website, partners are described as "not only meeting McKinsey's high bar for exceptional leadership, but they are also dedicated to finding solutions to some of the world's most pressing challenges."

At 28, Sehdev is one of the youngest in the cohort. He spoke to BI about what it was like to receive the news and what it takes to make partner.

'Enjoy the moment'

Although his call with Olanrewaju lasted only a few minutes, Sehdev spent the next hour and a half on the phone with sponsors and mentors.

"Obviously, there was a lot of excitement, a lot of congratulations, and a bit of a common thread of 'let it sink in, don't rush into the next thing, enjoy the moment,'" he said.

He also called his mother and brother that evening. His parents didn't go to university, so it was a major milestone for the family. "They were super proud and excited," he said. "They've obviously been pretty key in shaping my journey."

But the following morning, it was into the office to carry on as usual and keep the news a secret from his colleagues until McKinsey's formal announcement a week and a half later.

Sehdev said he was still digesting the achievement. In the new year, he's taking a 17-day trip to Australia to "carve out a little bit of time to think about it a bit more formulaically."

His first focus is to switch off and get some sun, he added.

Aamanh Sehdev
Sehdev joined McKinsey as a summer intern in 2017.

Aamanh Sehdev

Becoming a partner is notoriously difficult and competitive. It's the ultimate goal for many consultants starting their careers.

Not for Sehdev.

When he began studying mechanical engineering at London's Imperial College, Sehdev had never heard of McKinsey.

"It was something that people around me were talking about alongside banking," he told BI. "I turned up to a career fair, it was interesting, and I applied for the internship."

For the first half of his career, Sehdev said he was doing "a bit of a random walk" through a whole host of sectors and different functions. It helped him find the right home at the firm β€” he now works on a combination of private capital and McKinsey's telecommunications (TMT) practice.

Sehdev acknowledged that seven years was a fast ascent up the ranks, but said that meritocracy was one of McKinsey's benefits.

"What McKinsey has a tendency to do is when you get comfortable, they take you to the next role or level, and then you get uncomfortable again. That snowballed for me over the last seven years."

Sehdev said three reasons he was selected as a partner came through in his evaluation.

First, he always has a focused strategy for what he's doing and what he wants to do next at the firm. Second, he showed entrepreneurship and originality, particularly when it came to creating novel ways to work with the smaller software businesses he concentrates on. Lastly, he invested time with the teams and created a positive, energizing atmosphere.

There's an element of luck involved in it as well, he added, saying he was fortunate to have met managers early on who would stay late in the evenings to teach him.

No matter how good you are, working at a top consultancy can be intense. Sehdev said he carves out time to exercise, spend time with family, and protect his weekends. He doesn't expect that to change now he's a partner.

"My mindset has always been, look, I'll set a really high bar, but I'll not let the micro-events or little things take away too much energy. That's made me better at my job."

Read the original article on Business Insider

Before yesterdayMain stream

Insight VC describes Databricks’ wild $10B deal and the bad advice the CEO ignored

17 December 2024 at 14:10

It’s been a wild week for investors clawing their way intoΒ Databricks' record-breaking $10 billion fund raising, one of the VCs told TechCrunch.

Β© 2024 TechCrunch. All rights reserved. For personal use only.

AI boom masks fundraising struggles for non-AI startups

17 December 2024 at 11:20

Earlier this year, IVP general partner Tom Loverro proclaimed that the post-pandemic downturn is over, and companies that made it this far should prioritize growth over cost-cutting. Yet, the companies still struggling to raise their next round of financing at a higher valuation or survive altogether could still be in the thousands, according to Brian […]

Β© 2024 TechCrunch. All rights reserved. For personal use only.

Jay-Z’s Marcy Venture Partners merges with investment arm of Pendulum Holdings

16 December 2024 at 15:02

Jay-Z’s venture capital firm, Marcy Venture Partners, has merged with another Black-owned investment firm, Pendulum Holdings’ investment arm Pendulum Opportunities, to form MarcyPen Capital Partners, a MarcyPen spokesperson confirmed to TechCrunch. The newly formed MarcyPen Capital Partners has $900 million in assets under management, according to PitchBook.Β  MarcyPen’s spokesperson declined to comment further on the […]

Β© 2024 TechCrunch. All rights reserved. For personal use only.

Evinced’s $55M C round will help bring its accessibility dev tools (and AI) to Europe

12 December 2024 at 06:01

Making sure your software is accessible is fast becoming a must rather than a nice-to-have, and Evinced is one of a wave of startups helping make that happen. The company is about to expand to Europe, where new accessibility regulations are about to take effect, and has raised $55 million to fuel the expansion. Evinced […]

Β© 2024 TechCrunch. All rights reserved. For personal use only.

SolarSquare raises $40 million in India’s largest solar venture round

11 December 2024 at 16:50

SolarSquare has raised $40 million in a round led by Lightspeed in what is the largest venture round in India’s solar sector. The Mumbai-based startup was bootstrapped and profitably selling to corporate customers for five years before it switched to residential solar in 2021. Now it has scaled to powering over 20,000 homes and 200 […]

Β© 2024 TechCrunch. All rights reserved. For personal use only.

HongShan, Peak XV back stablecoin-powered neobank KAST

11 December 2024 at 00:32

Peak XV and HongShan, the Indian and Chinese investment firms that split from powerhouse Sequoia last year, have co-led a $10 million seed investment in KAST, a dollar-denominated neobank-like platform that lets customers hold and spend stablecoins through traditional payment avenues.Β  Kast also issues credit cards that work with standard merchant networks, enabling users to […]

Β© 2024 TechCrunch. All rights reserved. For personal use only.

OpenWeb's ousted CEO who refused to quit speaks exclusively with BI about his battle with the board

5 December 2024 at 11:18
Nadav Shoval, CEO of OpenWeb
Nadav Shoval was ousted as CEO of OpenWeb.

OpenWeb

  • OpenWeb's board ousted the company's founder and CEO, Nadav Shoval, earlier this year.
  • In his first interview since his removal, he said his situation is a cautionary tale for other founders.
  • A legal battle between Shoval and OpenWeb is ongoing in an Israeli court.

Nadav Shoval says the conflict that culminated in his dramatic ouster from OpenWeb, the company he cofounded, started with a disagreement over a prospective BlackRock investment.

In his first interview since his removal as CEO, which is still playing out in court, Shoval told Business Insider that tensions with OpenWeb's board bubbled up when the company received "several term sheets" for further investment in mid-2024, including an offer from BlackRock.

OpenWeb, which provides tech to publishers to help manage the comment sections of their sites, create newsletters, and sell advertising, had previously raised $392 million and was last valued at $1.5 billion.

BlackRock's capital infusion, Shoval said, would have been a "game changer," allowing the company to make its fourth acquisition and advance toward an initial public offering. But it hit a roadblock.

"We brought in some of the best bankers in the world to support the process, and everybody was very excited until we started to see that one of the board members, specifically, one of the funds, was really pushing against taking this money," Shoval said, without naming the fund.

Two people familiar with the discussions said some board members had concerns about the conditions tied to BlackRock's proposed investment. They asked for anonymity to discuss private conversations. Their identities are known to BI.

BlackRock declined to comment.

OpenWeb's big-name investors include Insight Partners and Georgian Partners. It has also attracted investments from Samsung's Next investment group, The New York Times, and the famed NYU Stern professor and podcaster Scott Galloway, who sits on the company's board.

Shoval's relationship with his board of directors went rapidly downhill from there β€” and was thrust into public view.

Shoval's messy battle with the board goes public

Tensions boiled over in mid-2024 when OpenWeb's board changed Shoval's reporting line, a move he felt breached his contract. He sent an ultimatum to reverse the change to the board, which responded by firing him.

Then the company announced to staffers that Shoval would be replaced with an interim CEO, OpenWeb's former chair Tim Harvey.

Shoval went on a rampage.

Cut off from his business accounts, he used his personal Gmail to send a companywide email saying that he refused to step down.

He also took to LinkedIn, writing: "I do not accept these actions. I will continue to fight for OpenWeb's mission and purpose alongside our team."

Nadav Shoval LinkedInPost
Shoval made his dispute with the OpenWeb board public in October by posting on LinkedIn.

Screenshot from LinkedIn

Two former colleagues of Shoval and four people who have worked closely with him described him as a force of nature who's extremely passionate about the publishing industry. They said he could also be hotheaded and sometimes lacked the willingness to listen to others, including the board. They declined to be named to protect business relationships. Their identities are known to BI.

In October, Shoval sued OpenWeb and many of its board members in a Tel Aviv, Israel, court, alleging he had been the victim of an illegal boardroom coup enacted so investors could seize control of the company. His complaint argued that he should be reinstated as CEO and able to appoint two new board directors of his choosing.

The litigation is ongoing, and OpenWeb is seeking to have the case dismissed. BI has reviewed copies of some of the related court filings, translated from Hebrew to English.

In denying Shoval's claim for a temporary injunction against his firing, Ariel Zimmerman, the Tel Aviv judge presiding over that case, said the chances of Shoval succeeding in his claim for reinstatement as CEO "do not appear promising, to say the least."

In response to Shoval's suit, OpenWeb said in court filings that the case was a classic situation in which the board of directors had lost confidence in its CEO. OpenWeb said Shoval was trying to extract money that was not owed to him and that he had chosen to give up control of the company when he brought in investors.

In a statement to BI, a spokesperson for OpenWeb said the company was excited about the steps it had taken to set it up for long-term success.

"The company is moving forward without distractions, fully committed to the success of our employees, partners, and the broader community we serve," the statement said.

Shoval told BI he's optimistic that "justice will come" as he continues his legal fight. He said he hoped his story would serve as a lesson to other founders to vet the funds and directors they work with closely.

"No one wants to see the behind the scenes of restaurants," Shoval said. "This is what I feel like I've seen about the VC industry."

Shoval's path to the New York startup scene

Shoval said he's used to defying the odds.

He often describes how he came close to death when he was 2 years old from Kawasaki disease, a rare condition that causes swelling of the blood vessels and can lead to heart problems.

The disease, Shoval said, affected his motor skills, making it difficult to write. He later struggled with dyslexia and didn't finish high school.

After serving in the Israel Defense Forces' elite Maglan commando unit β€” famed for going behind enemy lines β€” he moved to New York City in 2012 at the age of 21. There he cofounded OpenWeb, then known as Spot.IM, alongside two other cofounders who have since left the company.

Nadav Shoval on stage at TechCrunch Disrupt.
OpenWeb was founded in 2012 under the name Spot.IM.

Kimberly White/Getty Images for TechCrunch

Shoval said he had noticed that publishers and content creators were "under massive threat" from Big Tech companies that wouldn't compensate them for their content.

The startup sought to build tech to keep people more engaged on publishers' websites. It began with the comment section, providing community-management tools and analytics to help make online conversations less toxic. It later acquired three other companies to help publishers in other areas, like advertising and newsletter building.

OpenWeb grew to more than 370 employees and says it reaches more than 150 million active monthly users across sites such as Fox News, CNN, and Yahoo.

Through secondary transactions, as OpenWeb raised more capital, Shoval diluted his stake in the company, leaving him with less than 2% of issued shares and a remaining 5% in unvested options, per OpenWeb's legal filings.

The sales, which OpenWeb calculated earned Shoval tens of millions of dollars, resulted in him ceding his control of the company to its investors.

The board calls Shoval's bluff

Shoval said in legal filings that OpenWeb's sudden decision in mid-2024 to change his reporting line was an illegal move that hindered his management capabilities and diminished his role. The board had decided he would start reporting to a newly appointed temporary executive chair, Omer Cygler, the managing partner of its investor Lion Investment. Shoval had previously reported to the entire board.

Furious, he sent a letter in September to the board demanding it reverse the decision.

OpenWeb's legal filing said Shoval's letter had also set out "excessive and baseless financial demands" amounting to tens of millions of dollars in exchange for his continued appointment as its chief executive. In an attachment to his letter, Shoval mapped out a scenario where he would resign as CEO and help with the search for a replacement until summer 2025, on the condition that the investors bought his shares and accelerated the vesting of his options.

The board called his bluff.

Board members convened an urgent telephone meeting in which the directors who attended, including those appointed by Shoval himself β€” Galloway and Cygler β€” unanimously voted for his dismissal.

Scott Galloway Kara Swisher
Scott Galloway invested in OpenWeb in 2021.

Andrew Harnik/Getty Images

In the statement to BI, OpenWeb said: "OpenWeb is laser-focused on continued growth and advancing our mission to foster healthier online discourse β€” creating a web that is safe for users, profitable for publishers, and fair for advertisers."

Shoval says his ousting is a cautionary tale for other startup founders

Looking forward, Shoval told BI he remained committed to fixing toxicity in online discourse and promoting independent journalism.

Shoval didn't start the company "for a small secondary," he said, referring to money he might have taken off the table were the company to raise a further investment round. "It's not a nonprofit. I'm here also for everybody to make money, but it's not the only reason why I started the business. I'm an extremely mission-driven person. I love what we do."

Nadav Shoval at TechCrunch Disrupt
Shoval onstage at TechCrunch Disrupt in San Francisco in 2019.

Kimberly White/Getty Images for TechCrunch

Shoval maintains that OpenWeb board meetings and decisions were conducted improperly and that he still has the right to appoint two new board directors of his choosing.

He said that he wanted to impart a lesson to other founders: There can be some occasions in startups when "there is inherent conflict between the fund and the founder."

After the huge investment boom of 2021 amid a stock-market rally and low interest rates, many startup valuations plunged in the following years, and IPO and M&A activity dramatically slowed.

"When those funds are successful, they act like a cheerleader," Shoval said. "They agree with you. They follow your strategy. As soon as market conditions change β€” and it really, really changed β€” some of those people change."

Read the original article on Business Insider

Cleerly raises $106M from Insight Partners for AI heart health early detection

4 December 2024 at 14:44

Although heart disease is the leading cause of death in the United States, a significant portion of people who experience heart attacks are unaware that they have the underlying condition. Cleerly, a cardiovascular imaging startup, hopes to fix this. By analyzing CT scans of the heart, the company’s AI software aims to identify early-stage coronary […]

Β© 2024 TechCrunch. All rights reserved. For personal use only.

Sequoia nears first Asia-Pacific deal since regional split

29 November 2024 at 07:00

Sequoia is closing in on making its first deal in India and the broader Asia Pacific region since its split with former partners, according to four sources familiar with the matter. The venture capital firm, one of the world’s largest, is in advanced talks to back Vance, a Bengaluru-based cross-border payments startup, the sources said, […]

Β© 2024 TechCrunch. All rights reserved. For personal use only.

Read a VC firm's advice for founders about how to use AI

28 November 2024 at 01:11
A robot hand over a human hand on a laptop computer keyboard.

iStock; Rebecca Zisser/BI

  • It's still a good time to embrace the AI revolution, according to VC firm Insight Partners.
  • A recent Insight survey showed that 72% of its portfolio companies are using AI in their workflows.
  • The firm advised founders to take a "crawl, walk, run" approach to automating parts of their business.

Insight Partners, one of the largest and most active venture capital and private equity firms of the last decade, is advising founders that artificial intelligence is here to stay.

In a two-page memo shared with Business Insider, Insight issued a forecast that, while somewhat expected, carries weight for the industry's future: "AI was the buzzword of 2024 and isn't going anywhere in the next year."

A recent survey by Insight showed that 72% of its portfolio companies are using AI, with 36% of them allocating new budgets specifically for these initiatives. Its portfolio includes Wiz, the Israeli cybersecurity firm that declined a $23 billion sale to Alphabet over the summer, and Weights & Biases, a machine-learning operations company used by OpenAI for tracking and comparing its experiments.

Insight said automation has the potential to boost productivity and simplify tasks across functions, but acknowledged that founders might feel overwhelmed when trying to integrate these new technologies into their workflows. The firm advised a stepped approach.

"As AI assistants and GenAI continue evolving, founders should take a 'crawl, walk, run' approach β€” starting with simpler automated tasks and gradually incorporating more advanced workflows," said the memo. "Embracing a 'human-in-the-loop' framework, which combines AI with human oversight, will be essential as these systems are still maturing."

While automation plays a vital role across business functions, Insight highlighted three areas for early-stage companies to focus on: knowledge management, content generation, and customer insights. For developers, coding assistants can speed up code generation and reviews, enabling quicker market entry and a broader range of products. In marketing, automated copy and content testing can enhance engagement, while AI-powered tools in customer support can accelerate response times and improve access to the company's knowledge base.

Insight also identified one area where human connection can't be beat. It encouraged founders of growth-stage companies to lean into events β€” from intimate gatherings with potential buyers to larger industry events β€” as a means of connecting with customers and scaling demand. This will help companies "stand out in a world increasingly flooded with digital, AI-powered outreach," the memo said.

Read the letter Insight shared with execs.

All,

Loyal Field Notes readers, as 2025 approaches, we wanted to share some insights on high-impact strategies for scaling your company effectively in the coming year. Our Insight Onsite team, made up of 130+ professionals with deep operational expertise, is here to support your growth journey and help you capitalize on opportunities across AI, go-to-market (GTM) strategies, talent, and beyond. We hope you find the following helpful and as always, reach out to your Portfolio Manager or Onsite contact if you have any questions.

The shift to AI is imminent and leads to advanced scaling and sophistication among entrepreneurs

AI was the buzzword of 2024 and isn't going anywhere in the next year. AI has the potential to drive the next wave of innovation, offering growth opportunities. For early-stage companies looking to scale with AI in 2025, the focus should be on high-impact applications that drive efficiency and empower teams. Key areas for immediate gains include developer productivity, quality assurance/testing, and marketing content creation.

Automation can simplify repetitive tasks across functions: for developers, it means faster code generation and reviews; for marketing, automated copy and content testing enhance engagement strategies; and for customer support, AI-powered tools streamline response times and improve knowledge management.

Talent acquisition and sales also benefit from AI, with tools like "Copilot" that assist in candidate research, onboarding, and customer relationship managementβ€”enhancing personalization, productivity, and scalability.

Tracking progress and refining AI strategies over time enables companies to scale efficiently, positioning them for sustainable growth and a competitive edge in the market.

Focus on leveraging emerging AI technologies

The idea of incorporating generative AI (GenAI) into companies can be daunting but it also has the potential to impact every function of a business. In a recent portfolio company survey, we found that 72% of portfolio companies are using Artificial Intelligence, with 36% of those companies creating a net new budget for those initiatives.

To scale effectively with AI in 2025, early-stage companies should prioritize practical GenAI use cases that can yield high impact in areas like knowledge management, content generation, and customer insights. GenAI can enable efficient product development by automating tasks such as coding, design and rapid prototyping, leading to faster market entry and broader product variety.

In market research, GenAI supports data-driven decisions by analyzing unstructured data sets, including customer interviews and competitor reviews, to reveal actionable insights. Additionally, for go-to-market (GTM) efforts, AI can streamline lead scoring, personalize customer engagement, and optimize sales campaigns, making the process scalable and significantly enhancing customer satisfaction and loyalty.

AI-driven automation presents a huge opportunity to boost productivity and streamline operations. As AI assistants and GenAI continue evolving, founders should adopt a "crawl, walk, run" approachβ€”starting with simpler automated tasks and gradually incorporating more advanced workflows. Embracing a "human-in-the-loop" framework, which combines AI with human oversight, will be essential as these systems are still maturing.

To differentiate themselves, founders should focus on creating unique, data-driven workflows that add clear value and improve user experience, setting their businesses up for sustainable growth in an AI-enhanced market. We created a blog post exploring this topic earlier this spring.

Scale your GTM engine on strong foundations and personalized engagement

For early-stage founders, especially B2B SaaS companies, aiming to scale effectively in 2025, ensuring GTM strategy and engine works before you scale is critical. Once you have Product Market Fit (PMF) it's critical to continue to validate that your product creates real, differentiated value for your buyers (and that your messaging effectively communicates this).

It's not just about having a great product with cutting-edge features. Having a customer-centric mindset is key; products that solve a pressing problem, resonate authentically, and are easy to use will drive organic word-of-mouth and advocacy, which are priceless (and cost-effective) assets for growth. Add in high retention rates from strong PMF and effective onboarding and you've got the foundation for efficient, sustainable scaling.

For growth stage companies and beyond, it's key to scale demand on top of this foundation by leaning back into events and in person connection. Look to personal, high-impact engagements to stand out in a world increasingly flooded with digital, AI-powered outreach. Companies can build meaningful connections and gain firsthand insights into their audience needs through hosting intimate gatherings with target buyers or attending larger industry events.

AI-powered outreach can't be ignored though – just don't expect AI to do it all for you. It's imperative to first find a battle-tested approach that works, and then augment it with AI to help scale personalized outreach efficiently.

Know and understand your brand to hire key talent

In 2025, early-stage founders need to approach talent acquisition with a compelling and cohesive narrative that highlights the unique value and culture of their company. Given the competitive landscape, your company's story should resonate through every touchpoint, especially the company website and the CEO's personal brand.

Candidates are increasingly thorough, relying not only on public content but also on personal reference checks to understand a company's values and trajectory. A well-defined, authentic narrative that reflects both the mission and culture of the company can attract high-caliber talent by demonstrating transparency, stability, and alignment with employee priorities.

Managing relationships effectively with candidatesβ€”even those not selected immediatelyβ€”will be equally essential. With top talent in high demand, it's important to view every interaction as part of an ongoing relationship; a candidate who may not be the right fit today could become an ideal match as the company evolves. Keeping doors open with a gracious and professional approach to rejections can foster goodwill, making it easier to reconnect with talented individuals down the line.

By cultivating a respectful and thoughtful hiring process, founders can build a network of potential future hires who feel positively about the brand, regardless of the immediate outcome.

Read the original article on Business Insider

Benchmark invests $19M in New Lantern, a smarter way for radiologists to use AI

20 November 2024 at 10:58

Shiva Suri gained a unique perspective into how radiologists work when he quarantined and shared a home office with his mom, a well-regarded radiologist. β€œI watched her work day in and day out, and she was wasting about seven to eight hours on boring workflow tasks,” Suri said. β€œOnly 5% of her time, she had […]

Β© 2024 TechCrunch. All rights reserved. For personal use only.

Database startup Neo4j embraces AI to supercharge growth

19 November 2024 at 05:59

To make AI possible, you need to create connections between vast quantities of data. That’s where tech like graph databases come into play. Graph databases handle fast-changing, interconnected data more adeptly than traditional databases, which were designed to store rigidly structured information. Of course, graph databases need to be managed in order to be useful. […]

Β© 2024 TechCrunch. All rights reserved. For personal use only.

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