Episode Summary

In this episode of On Boards, Joe and Raza welcome Marc Schneider, an accomplished e-commerce and fintech executive with decades of experience building and scaling mission-driven companies.

Marc shares his entrepreneurial journey, including his tenure as co-founder and CEO of Zebit, a transformative e-commerce and fintech platform, and his current role as an Operating Venture Partner at Ulu Ventures.

The discussion dives into governance challenges in venture-backed startups, the evolution of boards from early-stage to IPO, and how founders can effectively leverage board expertise. Marc also discusses Ulu Ventures' commitment to supporting diverse entrepreneurs and shares insights into his innovative role as an “active” board observer and mentor to founders.

Key Topics Discussed

1. Marc Schneider’s Career Journey

• Background and Passion for Mission-Driven Companies: Marc’s journey began with his personal experience of financial hardship, which inspired his work at Zebit to provide credit-impaired consumers with fair access to products without interest or penalties.
• Key Roles: From managing customer service operations at ProFlowers to leading Zulily and founding Zebit, Marc’s career has been defined by innovation and scaling impactful businesses.

2. Zebit’s Business Model and Mission

• Zebit’s Unique Value Proposition: Providing underserved consumers with fair, interest-free payment options for e-commerce purchases.
• Challenges: Operating efficiently without typical revenue streams like interest or penalties, while predicting customer payment behavior with data-driven models.
• IPO Journey: Zebit went public on the Australian Stock Exchange (ASX) to access liquidity, even though the process posed significant challenges, including valuation issues and market unfamiliarity with its business model.

3. Board Governance in Startups

• Evolution of Boards: Marc discusses the progression of boards through funding stages, from limited investor involvement in early rounds to more structured and diverse boards in public companies.
• Lessons for Founders:
• • Understand the dual role of investors as board members and stakeholders.
  • Take an active role in shaping board dynamics and agendas.
  • Prioritize chemistry and diverse perspectives in board composition.

4. Ulu Ventures and Supporting Diverse Entrepreneurs

• Ulu Ventures’ Mission: Backing women, minority, and diverse entrepreneurial teams using decision analytics to assess investments.
• “Active” Board Observer: Marc’s role involves mentoring founders, facilitating board discussions, and bridging gaps between management and governance.

5. Lessons Learned and Giving Back

• Persistence and Adaptability: Marc’s reflections on navigating challenges, from startup struggles to delisting Zebit, emphasize resilience.
• Mentorship and Legacy: By supporting young entrepreneurs, Marc hopes to inspire a cycle of giving back within the startup ecosystem.