At a VC, deals are literally the business.

But Rachel Townend's philosophy? People first, always.

As Chief of Staff and General Partner at Illuminate Financial - employee #1, 12 years, fourth fund, Rachel's watched what happens when founders get this right versus wrong.

Her take: Without the right people in the right seats, you can't do deals. It's a multiplier effect. Good people attract good people. Get the first hires wrong and everything compounds negatively.

This episode breaks down how to build a people-first culture from day one, why frameworks matter more than you think, and how Illuminate does things differently from typical finance culture.

You'll hear about sharing carry with everyone (not just deal makers), building a culture that scales, the performance and behaviour framework, and why starting early beats retrofitting later.

Rachel also covers the zero-based org chart exercise, why onboarding gets skipped, and what founders need to carve out time for today.

One action: Listen to the end for Rachel's specific advice.

More from James:

Connect with James on LinkedIn or at peer-effect.com

Most VCs work non-stop and still feel like they're failing. They do 2x the deals of their peers. They're at every event. And they still feel like they're not doing enough.

What James Johnson and Freddie Birley reveal in this episode is what VCs won't say publicly: the loneliness, the ambiguity, the constant feeling of underperforming despite objectively crushing it.

What drives this?

Founders want freedom. VCs want peak performance. When you're optimizing for achievement but venture's ambiguity makes it impossible to define what "good" looks like, you're stuck in perpetual dissatisfaction.

In this episode:

Why most VCs feel like they're failing even when they're crushing it

The loneliness both founders and investors experience (and why both jobs are more similar than different)

What actually drives each group - and why this explains why they talk past each other

How to shift from outcome obsession (exits - out of your control) to input control (craft mastery - in your hands)

For founders: Understanding this changes how you work with your board

For VCs: This is the validation you didn't know you needed

This is Peer Effect Post Bag - James and Freddie answering your toughest questions.

More from James:

Connect with James on LinkedIn or at peer-effect.com

You spent a year building a feature. Someone just replicated it in a day using AI.

This isn't hypothetical. Roei Samuel is watching it happen in real-time. As founder of Connected - a marketplace helping 5,700 fractionals work with scale-ups - he's spinning up products daily that took his team a year to build in 2020.

His conclusion? Unless you're building quantum computing or genuine deep tech, your technology moat is dead. AI killed it.

Here's what makes this different:

Roei isn't being dramatic. He built and sold a media company that scaled to 9 million monthly users, worked with the Premier League, NBA, and NFL, and joined the senior management team of a PLC at 26. He's seen what creates lasting value.

And his take is clear: product doesn't create defensibility anymore. Network effects do. When every feature can be replicated in weeks, the only moat is how your users create value for each other - and how hard that is to reproduce.

You'll learn:

Why AI just eliminated technology moats. What took a year to build in 2020 now takes a day. Your 10% optimization? It'll be copied in months. The only defensible businesses are built on network effects and brand—mechanisms competitors can't easily replicate.

What network effects actually mean. It's when one user's participation improves the experience for all users. Could be data (more users = better matching), could be multi-sided supply (Roei's fractionals average 3 roles each, solving the liquidity problem), could be customers becoming promoters.

How most businesses can access network effects. You don't need to be a marketplace. If you're good at turning customers into promoters—testimonials, LinkedIn posts, word-of-mouth - you're building network effects. The best businesses layer multiple mechanisms.

Why hiring full-time is becoming the last resort. Smart founders now think: (1) What can I automate? (2) What requires a fractional specialist? (3) Only then, do I need full-time? This isn't theory - startups on Connected average 3.7 fractionals each.

How to solve marketplace liquidity problems when starting. Don't try to build both sides simultaneously - it kills companies. Use SaaS-enabled networks: give one side free tools (dashboards, benchmarking) while you populate the other side. Roei did this launching Connected in the US.

Why you shouldn't scale until you nail cohort metrics. Don't worry about growth. Start with 150-200 users. Measure daily active usage, retention, behaviors that drive engagement. Roei invested in Lapse based purely on cohort analysis—they raised £8M seed, then £30M Series A from Greylock. Zero monetization. Just strong network effect metrics.

How to identify your specialty if going fractional. Lean into where you deliver tangible results fastest. Not what you're best at. Not what's most fun. Where can you prove ROI in 6 months? That's your first case study. That's how you build track record.

Why living out of alignment destroys everything. Roei's real mission isn't about fractional work - it's about helping people live authentically.

The reality check:

This isn't anti-product. Product still matters. But product alone won't save you when competitors can replicate features in weeks. Network effects create the compounding advantages that turn good products into defensible businesses.

If you're building a business in 2026 and you haven't thought about network effects, you're building on sand. AI just raised the stakes.

One action: Listen to the end for Roei's hiring sequence every founder should use immediately.

More from James:

Connect with James on LinkedIn or at peer-effect.com

"What do I do if my investors tell me to fire a bunch of my team?"

Alex sent this question to the Peer Effect Post Bag. And the answer from James Johnson and Freddie Birley cuts deeper than "evaluate your team."

This is Season 6, Episode 1 of Post Bag—where founders, CEOs, and leaders submit their hardest questions and get straight answers from two coaches who've worked with dozens of scale-ups. No fluff. No corporate speak. Just practical takes on the problems that keep you up at night.

Here's what makes this different:

The question seems straightforward: investors say fire people, what do you do? But James and Freddie immediately go two levels deeper.

First: Is your team actually the problem?

Second (and this is the one most founders miss): Why are you even asking this question?

The reality check:

This isn't about whether your team needs changes. That's the surface question. The deeper issue is: who controls your business? If you feel like your board does, you've already lost. They're there to enable and magnify you, not direct you.

Disagreements often come from fundamental misunderstandings. High stakes and exhaustion make founders defensive. And once you're defensive, you're reactive. Once you're reactive, you've given up control.

If you're asking "what do I do when investors tell me X," the real question is: why are you asking permission?

One action: Listen to the full episode for James and Freddie's complete framework on founder-board dynamics.

More from James:

Connect with James on LinkedIn or at peer-effect.com

You've got £250K in the bank. You're profitable. Everything looks fine.

Then your VAT bill hits and you're scrambling. Or a major client payment is 60 days late and suddenly you can't make payroll.

Marc Obrart has seen this exact scenario play out dozens of times. As co-founder of Fin House, he provides finance teams and CFOs to 50+ scale-ups. And the pattern he sees most often? Founders managing by their bank account instead of understanding the two stories every business tells.

Here's what makes this different:

Marc's not talking about hiring expensive CFOs or implementing complex ERP systems. He's talking about getting the basics right - and most founders don't have them in place.

His approach is simple: finance should be embedded in your business, not isolated in a dark corner. When finance is done right, you have access to forward-looking data that lets you make confident decisions about hiring, marketing spend, and growth.

You'll learn:

Why your bank balance is a terrible way to manage your business. It tells you where you are now, not where you're going. Founders look at £250K and think they're fine—then their VAT bill goes out in three days and they've forgotten to connect the dots.

The rolling 13-week cash flow framework and why this specific timeframe matters. In 13 weeks (roughly 3 months), you should know everything: new hires coming in, monthly payroll, payment terms from customers (30-90 days), supplier obligations. This is your Bible. If you don't have this, you're flying blind.

Why VAT catches founders out more than margins, profitability, or any other metric. It's a red herring—you're collecting it, sitting on it, and then suddenly you owe £150K and don't have the cash because you thought it was available. Ring-fence it. Track available cash separately.

The two stories your business tells: your profit story (management accounts) and your cash story (cash flow). These are completely different. You can be profitable and run out of cash. You can have cash and be unprofitable. Get your profit wrong, you have time to fix it. Get cash wrong, you're out of business in 30 days.

Why you probably don't need an ERP system or NetSuite. Most businesses can run on Xero with proper bookkeeping, controls, and forward-looking insights. Don't overcomplicate it.

How to know if your finance setup is useful. If you're skipping pages in your management pack, they shouldn't be there. If you don't understand something, it's not simple enough—and that's the finance team's fault, not yours.

Marc also shares his background as an FA-qualified football coach and how explaining tactics to 9-year-olds taught him to simplify finance for founders. The crossover is remarkable: clear, concise messaging that people can actually understand and act on.

The reality check:

This isn't about fancy systems or complicated models. It's about nailing the basics: up-to-date bookkeeping, a rolling 13-week cash flow, and understanding your 3-5 key KPIs (not 25). If you don't have these in place, you're managing by gut feel—and that's how businesses end up in trouble.

If you've been managing by your bank balance or avoiding your finance function because it feels too complicated, this episode shows you exactly what to fix.

One action: Listen to the end for Marc's single recommendation every founder should implement immediately.

Questions? Email hello@peereffect.com or find us on LinkedIn.

More from James:

Connect with James on LinkedIn or at peer-effect.com

PR feels like an unquantifiable luxury when you're trying to hit profitability. But Harrison Duhr has helped hundreds of startups use media to drive actual business outcomes - fundraising, hiring top talent, and landing ideal customers.

As Head of North American Brand at London and Partners, Harrison's secured coverage in CNBC, Bloomberg, Fortune, and TechCrunch for startups scaling between the UK and US. But his approach completely flips the traditional PR playbook.

Here's what makes this different:

Harrison's not talking about press releases or chasing tier-one publications on day one. He's showing you how the PR landscape has fundamentally shifted - and why the independent media trend is where smart founders are focusing their energy now.

You'll learn:

Why Wall Street Journal coverage isn't the right first move (and what actually builds momentum)

The independent media opportunity that's wide open right now - and why journalist-turned-founders are your ideal partners

How to build PR relationships that tangibly support fundraising rounds, customer acquisition, and hiring

The one tactic that puts you in rooms with investors and ideal customers without any cold outreach

Why testing your narrative internally comes before pitching externally

The cultural nuance between pitching in New York vs. London that trips up most founders

The reality check: This isn't quick-win PR. Harrison built a Bloomberg partnership over 8 months. But those relationships compound - they drive business outcomes, not just vanity metrics.

If you've been treating PR as "nice to have," this episode shows you exactly how to make it drive revenue.

One action: Listen to the end for Harrison's single recommendation every founder should act on immediately.

Questions? Email hello@peereffect.com or find us on LinkedIn.

More from James:

Connect with James on LinkedIn or at peer-effect.com

After 9 conversations with entrepreneurs and business leaders, three patterns emerged about scaling successfully.

In this Season 5 recap, I share the key lessons from conversations with founders like Mark Shepherd (Gathr), George Sullivan (Sole Supplier), and Gaurav Bhattacharya (Jeeva AI), plus insights from Darcy Martin (Outward VC) and Steve Duncan (C Studios).

The 3 patterns:

Pattern 1: Vulnerability is the unlock, not the weakness Mark launched a 10,000-member community with a LinkedIn post about mental health. Asim went from contemplating suicide to building mental health platform Plumm. Kate lost passion until she invested in personal development. The insight? Successful founders admit "I'm struggling" instead of projecting false certainty.

Pattern 2: Strategic resource allocation beats grinding George turned down VC investment knowing it would break him. Gaurav walked away from $2.5M ARR to pivot (now 300 customers in 9 months). Steve's Monday WIN list connects weekly tasks to annual goals. The insight? Real resilience is saying no strategically.

Pattern 3: Peer learning accelerates growth Mark built his business around genuine peer connections. Darcy helped one founder get their first US enterprise client through a single introduction. The insight? No one scaled alone - everyone mentioned coaches, mentors, or peer groups.

Here's the thing: These patterns work together. You can't access peer learning without vulnerability. You can't allocate resources without outside perspective. You can't be vulnerable without psychological safety.

Your challenge: Pick one pattern and do one thing this week - have one honest conversation, create your Monday WIN list, or make three specific asks to your network.

Season 6 launches in 2026. Subscribe so you don't miss it.

More from James:

Connect with James on LinkedIn or at peer-effect.com

LinkedIn feels noisier than ever. AI posts, surface-level expertise, endless scroll. So is it still worth your time as a founder?

James Johnson and Freddie Birley tackle the question: should you still be posting on LinkedIn in 2025, or is there a better way to build your personal brand?

The honest answer: It depends on what you're trying to achieve.

Are you building for speaking opportunities? Attracting clients? Hiring talent? Or just holding yourself accountable to write? The strategy changes completely based on intention - and most founders skip this step.

What you'll learn:

• Why the more you use LinkedIn, the worse it feels
• The exact question to ask before spending another hour on social media
• How to know if LinkedIn is right for your goals (or if you're wasting time)
• The 80/90% delegation model that cuts your time from 10 hours to 1 hour/week
• Alternative ways to build personal brand without LinkedIn
• Why committing to one strategy beats trying 500 things at once

Key insight: Personal brand ≠ LinkedIn. If you've decided it's right, commit fully. But if you're doing it because "everyone says you should" - pause.

More from James:

Connect with James on LinkedIn or at peer-effect.com