Evolving Industry
Cultural DNA: The American Versus European Tech Mindset
What happens when a venture capitalist embedded in the fast-paced American tech ecosystem moves to Europe?
They find an entirely different mindset shaping the industry.
Kenneth Kashif Thomas, Principal at BackFuture, is helping startups navigate this exact turning point.
In this episode of Evolving Industry, he shares what he’s learned about the differences in tech culture between the U.S. and Europe, why the "human element" is more important than ever, and how to spot real value in the AI storm.
Kenneth talked with us about:
- What makes American VC so different from its European counterpart
- Why founders should prioritize people and community over process
- How to find real-world use cases amid the AI hype
The American “Napkin Deal” Mindset
Kenneth has seen the stark contrast between American and European investors firsthand.
He’s found that while the U.S. has a reputation for being more vision-based, European investors can be more risk-averse.
“[Americans] are more vision-based,” Kenneth suggested. “We can underwrite what we typically call the ‘napkin deals,’ but really napkin deals means we just have a framework that we can work through really quickly in how we underwrite something at our early stage.”
This difference is often tied to the historical and cultural DNA of each place. Kenneth argued that the American “Wild West” spirit of risk-taking and conquering new frontiers still influences how investors evaluate a startup.
“From a historical context, the people who went to America from the Old World were absolute nut jobs,” he said. “That population who went further west were the nut jobs of the nut jobs.”
In Europe, a more traditional fundraising approach can be seen in demands for deep data rooms and financial plans for pre-seed deals.
Yet for founders, understanding this difference isn't about choosing one side over the other. It's about recognizing that the core of every deal, regardless of geography, is human connection.
The Human Element: Building Community and Trust
Kenneth believes that regardless of the technology or business model, the human element remains at the heart of everything.
He sees the best tech communities as places where people can bond over shared challenges, not just business.
“I think the connections there speak a lot more to the human element,” Kenneth said. “Whether it’s science or AI, that aspect of the human-to-human connection underpins everything.”
This focus on people extends to Kenneth’s work with founders. He’s often surprised by how many teams begin building a product without ever talking to people in their ICP.
“I find myself asking founders, ‘Have you spoken to any customers? Are you building with a customer?’ And more often than not, the answer's no.”
He argued that the most successful founders are those who sell first and build second, using conversations with customers to validate their ideas.
“We’re in a space where you can build a lot faster. AI is definitely good for helping [with] that,” Kenneth said. “It allows us to get to the human aspect a bit earlier.”
The AI Hype: Finding Real-World Use Cases
The conversation also tackled a topic that has dominated tech headlines: the AI boom.
While many investors are rushing to fund the latest AI projects, Kenneth is more pragmatic.
“It's just asking yourself, ‘Why does this use case matter? Is this a real use case?’ Have you spoken to your customers?”
He sees a difference between “tech for tech's sake” and technology that solves a real-world problem.
“A lot of the C-suite doesn't understand what [AI] actually means and how to use it and what the value actually is. They just say, ‘We need AI,’” Kenneth said. “There’s just a fundamental misunderstanding of why they actually need AI in the first place.”
While AI can automate workflows and improve efficiency, it's often a company's ability to execute and their domain expertise that become the only viable moats.
For Kenneth, the key is to cut through the buzzwords and get back to basics, like brand storytelling.
It’s about understanding why a solution is needed and who it’s for, a fundamental truth that holds whether you're a founder or an investor.
“Maybe it's just the American in me, but I really focus on the story aspect of things,” he noted. “ They’re often very good at telling you the ‘what,’ [but] why should I or anyone else care? I understand what you're talking about, but what does it actually mean?”
Ultimately, the best advice Kenneth ever received from a college mentor perfectly captures the mentality of successful founders and leaders.
“In life, you can either be a participant or a spectator. If you are not a participant, then someone’s participating for you.”
Craving more? You can find this interview and many more by subscribing to Evolving Industry on Apple Podcasts, on Spotify, or here.