Perseverance and optimism—according to Pieter Schoen, these are the key traits of a successful entrepreneur and investor.
At the Marktlink Capital Investor Day, he shared his story.
Are entrepreneurs born or raised? The answer likely lies somewhere in between, but in Pieter Schoen’s case, his entrepreneurial spirit was sparked at an early age. Since he didn’t receive pocket money from his parents, he had to start earning his own way in high school. Delivering newspapers and washing cars were a good start, but Schoen quickly realized he could make much more by hiring classmates as car washers while he focused on sales. He also dabbled in various small businesses—bringing an extra suitcase on vacation to import branded clothing and selling flashy turbo lighters to classmates who wanted to be the cool kids on the playground.
Although studying wasn’t an obvious choice, Schoen headed to Rotterdam to pursue a degree in Business Administration at Erasmus University—what else? His first success soon followed. No, not the waterbeds he sold to poor students (who quickly discovered the electricity bill was twice the price of the bed itself), but the Career Choice Book. Schoen noticed a lack of good resources on study choices at the time, so he and his friend Harald Swinkels reached out to prominent figures to ask about their education and career paths. Once the first big names were on board, it became easier to approach others. In no time, the book was a Christmas gift for thousands of students. In total, they sold 300,000 copies, earning the equivalent of €750,000 in the first year alone.
Internet's Wild West
After the success of their book, it was clear that the publishing market was on the brink of disruption. It was the late ‘90s, and personal computers were slowly making their way into everyday life. A golden era for entrepreneurs, and Schoen and his partner quickly saw how they could translate their concept into the Wild West of the emerging internet.
They developed a virtual job fair—on CD-ROM—where companies could purchase virtual square meters to showcase themselves to graduates and job seekers. A virtual recruiter would then ask candidates questions, and if there was a match, their CV would be emailed to the company. Schoen understood that even in the digital world, it was all about location, location, location—always managing to sell just a bit more prime digital real estate by convincing clients that otherwise, their competitors might take the spot.
Initially, the business seemed like a success. They raised ten million guilders in growth capital, expanded to six countries, and hired expensive staff—it all seemed limitless. During the dot-com boom, valuations skyrocketed, and acquisition offers regularly came in. Schoen could have cashed out for millions—40 million, even—but each time, he believed there was more to gain. Then the bubble burst. The company could no longer meet its financial obligations and went bankrupt. In the end, it was sold to Ordina for a fraction of the once-dreamed 40 million.
Optimist till the very end
A lesser entrepreneur might have thrown in the towel and settled for a corporate job. Not Schoen. He’s an “optimist till the end” who believes that every failed venture is just the beginning of the next success. One of his signature one-liners is that entrepreneurs need to “develop a steel chin from falling.” So, onward.
His next venture would be the one to cement his reputation. Using the proceeds from selling Career Fever and a family-owned paint business, Schoen entered the newly liberalized energy market. The “old-fashioned mastodons” like Eneco and NUON were ripe for disruption, and the Nederlandse Energiemaatschappij (NEM) launched with an aggressive marketing campaign promising lower rates.
A wave of nostalgic recognition swept through the audience when moderator Dionne Stax played some old NEM commercials. “We were constantly at the Advertising Code Committee,” Schoen admitted, and the company was a regular nominee for the infamous Loden Leeuw award for most annoying ads. It didn’t matter—business was booming. Challenging the establishment with a bit of bravado suited him perfectly. In his office, he proudly displays a toilet roll printed with the logos of major energy companies, a cheeky Christmas gift he sent their executives each year.
But this venture, too, had an expiration date. As NEM transformed into a corporate entity with a full-blown meeting culture, Schoen knew it was time to exit. The company sold for a substantial amount—“more than 200, less than 300” million. However, retiring to a beach with a cocktail, as Stax suggested, was never an option. “No one would enjoy that,” he said. The drive to build remains, though now more as an investor than an entrepreneur.
Today, Schoen manages his own family office, ensuring his capital keeps working. Through his investment firm, Shoe Investments, he operates across four asset classes: direct investments, fund investments, real estate, and stocks. The first two are particularly interesting, as many entrepreneurs face this dilemma after selling their business: Should I start again myself, or put my money to work elsewhere?
From software to cool glasses
Schoen directly invests in scale-ups with tickets ranging from €2 to €10 million. His portfolio spans a variety of sectors: from software and biodegradable coffins to a company selling trendy eyeglasses. He also participates in select funds managed by Marktlink Capital. There are several reasons for this, according to Schoen. On one hand, there’s the risk diversification argument—because while investing in promising growth companies offers all the excitement of entrepreneurship, it also comes with the associated risks. Additionally, Marktlink Capital’s feeder funds give access to some of the best-performing private equity funds in the Netherlands, such as CVC, Egeria, and Main Capital.
And—if you can call it a luxury problem—it’s not always easy to find enough direct investments or the right people to manage those tickets. Schoen isn’t one for keeping money in the bank. “Money should sweat!” he insists when we meet him in his office. All in all, investing through fund-of-funds and feeders complements his direct investments perfectly.
What's next? Well, Schoen aims to break the magic €1 billion mark in assets under management with Shoe Investments by 2032. This means significant growth for the firm. He doesn’t have trouble finding the right people to make this happen. With a big grin, Schoen pulls out a tile with the phrase “No hassle, get rich together.” Every new employee receives one of these tiles when they join Schoen’s team—it's for the bathroom. More importantly, the tile represents the mindset that all employees share in the company’s profits. This is different from other funds, says Schoen, where only partners and senior investment managers benefit from the profits. He believes this approach allows him to hire people who are “much smarter than I am” to manage the investments.
Schoen has six children, which led one of the attendees at the Investor Day to ask if he gives them pocket money. This triggered another great story. Schoen had decided not to give them direct pocket money, but instead, he matched the amount they earned. This worked well until one of his children figured out that if they collected money from classmates, they could double it with dad’s matching contribution and then take a percentage off before handing it back to the class. So, with the next generation of entrepreneurial Schoens, things are looking promising.
This article was originally published in the Marktlink Capital Magazine. You can read the entire magazine [here].
