Guillaume Jacquet

Below is a good summary and context for the Q3 quarterly report released by the CVCA. On the surface, it seems like it was a good quarter for venture investment in Canadá. But a quick look under the surface paints a potentially very different picture: - the 130 deals closed in Q3 matches the lows during COVID in 2020 - the $2,651MM in deal value appears fairly robust other than the heady days of 2021. But it includes both the Clio deal of $1,240MM and the Cohere deal of $616MM leaving the remaining 128 deals totalling $795MM, matching the levels last seen during COVID in 2020 - the vast majority of the source of the capital invested in Q3 are from US or other foreign sources of capital - early stage investments continue their trend of performing poorly this year What does this all mean? Not really sure yet. It certainly was not a good quarter of activity but it’s too early to call this a trend. But is it a leading indicator that deal activity will continue to be constrained? Is there evidence of a lack of Canadian source capital required to invest in startups, and in particular, early stage opportunities. When the Federal government decided to increase capital gains taxes, many people in the innovation community sounded the alarm bells. The fear was that such an increase will further take the air out of the sails of funding startups in Canadá. While it is still too early to conclude the impact of such a move, it is clear the timing of this decision is very unfortunate because there is a clear trend that the activity in venture from Canadian sources of capital is slowing down materially.

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If you are a #Canadian #startup frustrated by the lack of #investment opportunities and wondering if #SiliconValley is worth the trip ... I wanted to share a few notable comments from #startups that recently participated in our CELS - Canadian Entrepreneurs in Life Science Showcase. To the companies that participated, I won't drop the F bomb and risk being banned from LinkedIn 😆 but feel free to chime in and share, in your own words, why you think your peers need to take a leap ✈️ and visit #SiliconValley. It's really close to 🇨🇦 but in so many ways, a 🌏 apart. ✍️ "A lot of the people we met with will be relevant in the future. CELS made the introduction. We now have to build the relationship." 💰 "Everyone we met with had a friend or a contact that is relevant to us, even if they were not in our space, so basically everyone we met with was relevant!!" 🚀 "The biggest take away was the different mentality. Risk taking is seen positively here! Innovation is seen as a value driver. Investors want to see the BIG idea!" 🎙 "The Showcase format allowed us to have meaningful conversations. There was lots of time for real networking. Everyone asked, 'what is your ask?'. That was so refreshing!" ⏰ "It's just more sophisticated here. Time to market is faster in the US. We didn't have to spend our time explaining the tech and it felt like conversations got progressively better". So the next opportunity to leverage Connection Silicon Valley to build your network here is May 14th to 16th - open to #FemaleFounders. Don't let fear stop you. If you are looking for global capital, #SiliconValley is where you need to be to build the right connections. Register here - https://bit.ly/48SDuzF Or DM me to chat!

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Some VCs call it "diversification" when it is really just a lack of conviction.  They spread their investments in as many companies as possible and hope one succeeds—” spray and pray,” as it's called. At Bonfire Ventures 🔥, we do the opposite: Instead of chasing every shiny opportunity, we invest in fewer companies and go all in. We are a low-volume, high-conviction, high-support investor, and as Fred Wilson says, "That is who you want on your side." We invest in 8-10 deals per year, with a first check of $2-4 million each, and reserve plenty of follow-on capital. Why? Anyone can write a check. The real challenge—and the actual value—is in the subsequent and ongoing partnership. You can’t build meaningful relationships with founders, provide hands-on support, and be there for the good days and the bad if you're juggling a hundred projects. You need to know the founders, the market, and the business inside and out. That's what we do. During my investment banking days, I learned that you can’t work with every company that knocks on your door. You pick the ones you truly believe in, where you can see the potential in both the people and the product. Scopely is a prime example. We didn’t just invest in 2012. We worked closely with them and rolled up our sleeves. That partnership turned into a $5 billion cash exit in 2023. That’s what happens when you focus on quality over quantity. At Bonfire, our founders aren’t just another check in a portfolio. We’re not in the game of betting on every horse - we’re here to invest in the right ones - and then we go to work. How do you decide where to focus your energy? What drives your decisions, whether you're building a business, launching a project, or choosing investments?

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Whatever happened to VC-backed IPOs? Looks like the volumes are at all time low, according to Eric Newcomer, and the M&A activity isn't enough to cover the delta. Back in the "olden days" going public was the highest badge of honour! If we are in a trend where the C-suite is comfortable with being liquid but wants none of the accountability of being public, I sense our industry is ripe for some regulatory improvements. How about SaaS leadership ISO ? 😂 Anyway, what am I missing? #saas #vc

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I led 20 deals and spoke to thousands of startups in the last 6 years. Here's how I'd expect a good cold email to be structured👇🏻 𝐒𝐮𝐛𝐣𝐞𝐜𝐭: 𝐁𝐧𝐝𝐥 - $𝟑𝐌 𝐒𝐞𝐞𝐝 𝐫𝐨𝐮𝐧𝐝, 𝐔𝐒-𝐛𝐚𝐬𝐞𝐝, 𝐜𝐨𝐧𝐬𝐮𝐦𝐞𝐫 𝐬𝐩𝐚𝐜𝐞 Hi Elena, I'm Alex, the founder of Bndl, a U.S.-based company. We're currently raising a $3M Seed round with a great consumer-focused VC as the lead investor, [name of the VC]. I'm looking for partners to fill the rest of the round. I looked through your portfolio and believe we align well with your thesis. Below is a quick overview of Bndl. Please let me know if you'd be open to a conversation. Best, Alex *** The global video streaming market is currently valued at $50B, projected to hit $330B by 2030. Yet, 85% of U.S. households can afford only one streaming service. Only 7% can afford six or more. Bndl makes streaming accessible for all, offering top shows across major platforms for just $20/month. Users can access everything through Bndl, instead of subscribing separately to HBO just to watch "House of the Dragon," Hulu just for "The Kardashians," or Amazon Prime just for "The Boys." ▪️ Traction: $10k MRR; ongoing negotiations with Disney+ and Netflix; integrations with HBO, Hulu, and Amazon Prime. ▪️ Team: Alex, CEO – 5 yrs in VC (One Ventures, Two Ventures); John, CBDO – ex-Netflix, ex-Spotify; Emily, CTO – ex-Reddit, ex-Stripe. ▪️ Backed by: XX, YY, and angels from Wise, Google, and Revolut. We're raising a $3M round, led by [name of the VC], and expect to close within the next month. [Brief note on the lead investor]. P.S. a catchy picture for your attention 🐾

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At Insiber.com, we're always exploring innovative ways to enhance our partnerships and drive growth. That's why we're thrilled to dive into "The Partner Operating Model - A Guide to Predictable Ecosystem Revenue" by Frie Pétré ! Understanding and leveraging ecosystem revenue is essential in today's dynamic business landscape. Petre's insights on building a predictable and sustainable partner operating model are invaluable and enhance our knowledge and skills. Key takeaways for us: 1. Structured Approach: Learn how to design a robust partner operating model that drives consistent revenue. 2. Best Practices: Discover practical strategies for managing and nurturing partner relationships. 3. Real-World Examples: Gain insights from case studies that illustrate successful implementations. A recommendation by Harry V. of NN Group, one of the leadings experts in Brokers and Partnerships, underscores the significance of this book. His endorsement is one we cannot ignore. If you're interested in partner ecosystems and revenue growth, this is definitely a book to add to your reading list! You can find it here https://amzn.eu/d/0iMLsaWr #PartnerOperatingModel #EcosystemRevenue #BusinessStrategy #Partnerships #RevenueGrowth #FriePetre #BookRecommendation #Insiber #cyberinsurance #insurance ---

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10 Harvard-Founded, YC-Backed Unicorns Worth $141B 🦄 According to YC's website, the combined valuation of YC-backed startups is $600B. This means that ~1/4 of YC's value has been created by Harvard founders--Incredible! Stripe, Airbnb, & Rippling drive the power law (93% of value) Btw, who's in Boston this week?! Let's catch up -- Phoenix Fund invests in pre-seed and seed stage startups founded by students and alumni of Harvard/HBS

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How to invest in a Venture Fund? Calling all Limited Partners (LPs) and Family Offices! 📢 Are you looking to dive deeper into the world of venture capital? Want to understand how to invest in venture funds? This is a fantastic opportunity for you! We are excited to invite you to Venture Summit: Toronto Collision, where industry leaders and experts will share insights & strategies in venture capital investing. Event Highlights: 🔹 Engaging Panels: Gain practical knowledge on structuring investments, managing portfolios, and navigating the VC landscape. 🔹 Networking Opportunities: Connect with like-minded investors, LPs, family offices, and founders to build valuable relationships. 🔹 Meet Fund Managers Starting their next Fund: meet emerging managers and learn about their experience, thesis, strategy, expertise and passion for venture investing. 🔹 Startup Spotlight: Listen to shortlisted startup pitches & and connect with founders throughout the event. Date: Thursday, June 20th Register: https://lnkd.in/garRw37p Message me for a free investor ticket if you are interested in attending (limited quantity)! Don’t miss out on this exclusive chance to enhance your investment strategy and expand your network. #VentureSummit #TorontoCollision #VentureCapital #Investing #LPs #FamilyOffices #Networking #Innovation #InvestmentStrategy #VC #startups #fundraising #deals #founders #investors #limitedpartners #innovation #diversification

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Just finished reading an insightful analysis by John Rikhtegar at RBCx on the Canadian venture capital landscape over the past decade, focusing on capital exited rather than capital invested. This deep dive sheds light on the challenges and successes of our venture ecosystem and provides valuable lessons for the future. Here are my top 5 takeaways: 1️⃣ Liquidity Volatility Challenges the VC Ecosystem Over 50% of Canada's exit value in the past decade occurred in just 2020 and 2021. This surge pulled fund cycles forward as GPs rushed to redeploy record waves of LP capital. Consequently, 2023 and 2024 have seen some of the lowest levels of capital allocated to Canadian venture in years. 2️⃣ The Dominance of Top 50 Exits A staggering 85% of Canada's aggregate exit value came from only 27% of all exits—the Top 50 largest. Achieving such large exit outcomes remains critical for VC investors aiming to build lasting franchises in Canadian venture. 3️⃣ Exit Success Isn't Just About Size There's a misconception that bigger exits equate to greater success. By evaluating exit capital efficiency (exit value relative to total capital raised), we can better assess the profitability to shareholders. Capital-efficient exits often yield higher returns, regardless of their size. 4️⃣ Canada's Exit Growth Outpaces the U.S. While smaller in scale, Canada's exit value and volume have grown faster than the U.S. over the past decade. Given that the U.S. VC market is 30x larger and more mature, this is a healthy sign for Canada's developing ecosystem. 5️⃣ Managing the Exit Value to Fundraised Ratio is Key To continue building a capital-efficient VC ecosystem, Canada must focus on improving its cumulative exit value to capital fundraised ratio. Shrinking the gap between Canada and the U.S. in this ratio is vital as we anticipate exit activity to rebound in the coming years. This analysis aligns closely with Ripple Ventures' strategy. At Ripple Ventures, we prioritize investing early and staying disciplined on entry valuations, all while focusing on capital efficiency. We believe that supporting capital-efficient startups not only drives better returns but also strengthens the overall ecosystem. It's encouraging to see data supporting this approach, emphasizing the importance of disciplined investing and capital efficiency in achieving successful exits. 📖 Read the full analysis below: #VentureCapital #CanadianVC #RBCx #RippleVentures #CapitalEfficiency #StartupEcosystem

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Don’t stack post-money SAFEs. I know YC backs them & I, as an investor, love them. But for founders, 1 post-money SAFE is fine—2+ can be deadly: What if I told you I’ll lead your seed round but I want: 1- Full ratchet anti-dilution rights. If your next round is say at a 50% lower valuation, my share price gets lowered by 50%. 2- Anti-dilution against future options. If you if you increase the size of your ESOP, 100% of the dilution goes to founders and existing employees. 3- Anti-dilution against future notes. If you raise a pre-or post money SAFE or a convertible note, only the founders and employees get diluted, not me. You’d tell me I’m crazy, right? You’d at least tell me it’s not market, not standard? But it is market, it is standard, and it’s called a post money SAFE. #startups #founders #venturecapital

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The private markets are so much more forgiving than the public markets They’re two different universes. Private investors could benefit from public experience to better feel the reality of multiples and the importance of profitability. Public investors could benefit from private experience to think longer-term rather than quarter-to-quarter. While technically the public markets live downstream of the private markets, it’s really the public markets that upstream dictate the realities of the private markets. So there’s benefit to having feet in both markets.

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Dilution is not neutral and shouldn't be viewed as such. It's either positive or negative, good or bad. In the world of VC-backed companies, dilution is such a normalized part of the journey that it is often passively accepted. This often leads to the negative form of dilution such as capital raised for: → inefficient sales and marketing spend → R&D supporting technology searching for a market → layers of unnecessary organizational overhead → supporting broken business models → vanity valuations → etc... However, dilution has a positive and accretive expression as well such as capital raised for: → scaling efficient go-to-market efforts → product and channel expansion with clear ROI → deleveraging and strengthening the balance sheet → accelerating market share gains for a sound business model → transformative investments (e.g. M&A, R&D, capex) → etc... Therefore, dilution should neither be passively accepted nor should it be categorically prohibited. It shouldn't be viewed as always positive or always negative because it can be either. The purpose and quality of the use of capital is what ultimately defines the merit of any dilution. For this reason, capital allocation is one of the most essential responsibilities and capabilities of a CEO. Effective capital allocation leads to dilution being positive. Ineffective capital allocation leads to dilution being negative. It's usually that linear.

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$3-6M ARR SaaS companies with moderate growth (15-30%) enter the no-mans land of capital. ❌They are too large for a seed check ❌ Not growing fast enough for a Series A ❌ Debt providers offer too little capital and amortize quickly, and ❌ Too small for private equity Luckily, I’ve found a few funds with a viable option for companies at this juncture: HYBRID FUNDS A hybrid fund offers a product with elements of debt and elements of equity. This can take the form of a term loan with minimal amortization but with a warrant to create equity upside or it could come in the form of two securities invested at the same time such as a term loan and a convertible note. With structures like these, the funds often are willing to put up more capital. Sometimes as much as 1.5x ARR. This level of investment gives a founder the firepower they need to scale their way to $10 million in ARR. Once the $10 million ARR milestone is reached, the world of private equity becomes a lot more attractive to founders. They are able to sell shares creating a large windfall for founders and employees AND maintain some ownership in the go-forward business creating an opportunity for another windfall down the road. Do you know any founders using or interested in this capital pathway?

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Thank you, Marcel Miu, CFA, CFP, CDAA, for joining the StockClubs community on Friday and educating us on strategies for handling concentrated stock positions. We discussed why deferring paying taxes is beneficial in investing and can generate 2-3% of annualized tax-alpha if you have positions with a low cost basis: ✅ Compounding Growth: When taxes are deferred, the money that would have been paid in taxes remains invested and continues to grow  ✅ Time Value of Money: Money today is worth more than the same amount of money in the future due to inflation ✅ Tax Rate Differences: Deferring taxes can be advantageous if you anticipate being in a lower tax bracket in the future, such as during retirement If you would like to learn more, we are sharing a deck and spreadsheet models to help you understand how these strategies work and their impact on your investment returns: Deck: https://lnkd.in/gt_zSMRK Google Spreadsheet models: https://lnkd.in/gyMsVexJ Video recording is  published in the StockClubs app

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Valuation multiples step down at each new round …and that’s completely normal 👀 These drops are not a sign of weird times or a broken system ARR multiples are supposed to go down over time Because eventually they have to trend to the public multiples ✅ Now… As long as your revenue stays on the venture scale path → your revenue multiples will keep dropping → but your overall valuation will go up So if you’re going to raise capital… I think it’s important to understand that the multiple you raise at isn’t what you’re actually worth TODAY ❌ It’s the multiple you’re worth assuming you hit those FUTURE venture scale expectations (once you hit $1M ARR, can you get to $100M ARR in 7 to 10 years?) Which basically means that once you hit $1M ARR... You’re growing at 10% month over month for the next 24 months straight before starting to slow down to 2x year over year growth So even though Seed to Series A sees the biggest drop in multiples, that 10% mom growth will still drive up your valuation ----------------- But here’s the thing… If you’re growth slows to less than 2-3x between Seed and Series B → or sub $10M in ARR Your multiple doesn’t just drop to the Public Index (currently at 6.4x) It’ll actually fall below that index (closer to a 1-3x multiple) Because the acquirer is now arbitraging between they pay for you (1-3x multiple) and what they’re worth (6.4x multiple) ----------------- So what can you do? Focus on the milestones that’ll fuel your growth → instead of fundraising rounds or paper valuations And keep your cap table as light as possible until you’re ready for step 3️⃣ 1️⃣ Problem Solution Fit 2️⃣ Go to Market Fit - unlocks Series A 3️⃣ Scale PMF #1 - Series A use of funds 4️⃣ Scale PMF #2 -- ♻️ Repost to help a founder in your network Click 'visit my website' at the top of this post to register for my free Unlock your Series A session on how to navigate VC expectations in this market

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Great presentation of the laws of gravity in Venture Capital and startups

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Valuation multiples step down at each new round …and that’s completely normal 👀 These drops are not a sign of weird times or a broken system ARR multiples are supposed to go down over time Because eventually they have to trend to the public multiples ✅ Now… As long as your revenue stays on the venture scale path → your revenue multiples will keep dropping → but your overall valuation will go up So if you’re going to raise capital… I think it’s important to understand that the multiple you raise at isn’t what you’re actually worth TODAY ❌ It’s the multiple you’re worth assuming you hit those FUTURE venture scale expectations (once you hit $1M ARR, can you get to $100M ARR in 7 to 10 years?) Which basically means that once you hit $1M ARR... You’re growing at 10% month over month for the next 24 months straight before starting to slow down to 2x year over year growth So even though Seed to Series A sees the biggest drop in multiples, that 10% mom growth will still drive up your valuation ----------------- But here’s the thing… If you’re growth slows dramatically between Seed and Series B → or sub $10M in ARR Your multiple doesn’t just drop to the Public Index (currently at 5.7x) It’ll often fall below that, often closer to a 1-3x multiple (or more likely a 4-6x EBITDA multiple) ----------------- So what can you do? Focus on the milestones that’ll fuel your growth → instead of fundraising rounds or paper valuations And keep your cap table as light as possible until you’re ready for step 3️⃣ 1️⃣ Problem Solution Fit 2️⃣ Go to Market Fit - unlocks Series A 3️⃣ Scale PMF #1 - Series A use of funds 4️⃣ Scale PMF #2 -- ♻️ Repost to help a founder in your network Click 'visit my website' at the top of this post to register for my Seed to Series A session -- *Note that a huge jump in Series D & E+ valuations in Q2 2024 are based on a low number of deals (35 and 19) compared to Seed (492), Series A (415) and Series B (185) skew the multiples for those rounds much higher this quarter

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THIS is one of the best analyses I've read on the VC ecosystem as of late. While John Rikhtegar spends the report covering the Canadian ecosystem, I find it as useful - and lots of parallels to the US VC ecosystem and where LP dollars went - for the broader global economy. It's a longer read, but I promise, worth every minute. Some of the notes that stuck out most for me: 1/ 50% of the past decade's exit values were generated in 2020 and 2021. Great liquidity for LPs, but that forced LPs to have an unprecedented amount of capital to redeploy, which made them redeploy quickly to VC, but caused a vacuum and left 2023 and 2024 years far drier for GPs fundraising in market. 2/ From peak in 2021/2022, there's been a 76% drop in exit value in the Canadian ecosystem, 85% drop in Canadian VCs fundraising, and a 77% drop in capital Canadian VCs invest into the ecosystem. 3/ The median exit age of for the top 50 Canadian companies is 12 years. The median time between first financing and its exit for the top 50 is 8 years, leaving a median time of 4 years from a company's founding to their first financing. As such, if a Canadian VC's deployment period is 4 years, it's right to assume as an LP, that you're not going to see the end of the fund till 12 years after you invest. Even if the GP pitches a 10-year fund. 4/ Not all exits are created equal. The top quartile of top 50 exits raised more capital than the lower quartile. The median exit capital efficiency for Canada's top 50 companies for was 7.7X. Meaning the median company exited for $7.70 on every $1 they raised. 5/ Median US exit values are 2X Canada's. That said, Canada is catching up. In the past decade, the US produced $2.6T in exit value, compared to Canada's $56B, only a 46X. Lowest delta on record.

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