Conor Sheridan

Every (pre) seed stage tech founder talks to VCs about 'traction'. Here's the hierarchy of traction: Revenue / Annualised Recurring Revenue (ARR) --> Contracted ARR --> Paid Proof of Concepts --> Unpaid Proof of Concepts --> Trials --> Master Service Agreements --> Letters of Intent --> Pipeline value If you are pitching to VCs, focus their time and attention as far up the hierarchy as you possibly, credibly can. And don't even bother telling us about your awards. It doesn't move the needle at all. #founders #startups #vcfunding

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Having a hard time finding checkwriters to fund your startup? Look no further—these firms are ready to write checks! 🔴 San Francisco based Initiate Ventures launched their debut $45M fund to focus on early-stage startups at the intersection of tech and life sciences. 🔴 Portugal based Bynd Ventures launched its third €40 million fund to invest in early stage technology startups in Portugal or Spain. 🔴 Warsaw based Cogito Capital Partners closed its €90M Cogito Fund II to focus on enterprise software, fintech and healthtech sectors. 🔴 Zurich based Founderful closed its $140M Fund II to support tech startups in Switzerland. 🔴 Luxembourg based Bek Ventures closed its third $250M fund to back early stage tech companies in Central and Eastern Europe. 🔴 Chicago based Chicago Ventures closed $80M between its CV Fund IV and CV Opportunity Fund. The CV Fund IV will focus on supply chain, logistics and warehousing, fintech, and digital health while the CV Opportunity Fund will invest in existing portfolio companies. 🔴 New York City based Portal Ventures closed its second $75M fund to invest in early stage crypto companies. 🔴 San Francisco based Forerunner Ventures announced a new $500M early stage fund. 🔴 Singapore based Wavemaker Partners closed its $30M Wavemaker Growth Opportunities Fund to support startups in the Enterprise, Deep Tech, and Sustainability sectors across Southeast Asia. 🔴 Miami Beach based Bling Capital raised $270M for its Bling Capital Fund IV.

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Compare this to founders and startups from developing Asia. The avg pre-seed round would be around €100K and Founder's salary would be around €10K PA. Startups with lower burn will be invincible as Innovation and tech tools aren't geo-restricted anymore. #Startups #VentureCapital #Investment #Innovation #Funding

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🚨 Funding Alert: It's the last day of October, and 2024 is slipping away faster than you think... You know it, I know it – the funding world moves at LIGHTNING speed ⚡️ Timing is everything, and opportunities vanish in the blink of an eye. If you're aiming to land a funding deal before year's end, we've got your back! 💪 At Magdalena Reith, we're offering a special Q4 deal: Book a pitch deck package before November 15th and get a FREE one-pager 🎁 Your strategic conversation starter that turns "Maybe later" into "Let's talk!" Looking to finish Q4 strong and slingshot your startup into 2025? Here's what you get in our Q4 Power Package: 🎯 Expert guidance  🎁 FREE one-pager  💼 Professional pitch deck  ⏰ Priority completion (optional) Reach out via DM or drop a comment below to learn more and lock in your package before November 15th! #StartupFunding #PitchDecks #Startups

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Some great insights on Fintech here...."We now have 11 fintech “thoroughbreds” in our portfolio generating ARR (annual recurring revenue) of $100m+ and the value of the infrastructure moats they are building is clear for us to see. However, this is hard to quantify and may only become visible in years to come."

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This guide outlines the funding journey from Pre-Seed to Series C and beyond: - Pre-Seed: Focus on concept, team, and initial validation. - Seed: Prove market fit and scalability. - Series A: Demonstrate revenue growth and user base. - Series B: Scale operations with solid financials. - Series C+: Prepare for major expansion and exit strategies. Insight: Each funding stage builds on the previous one. Early rounds focus on validation and product-market fit, while later stages emphasize scaling and financial stability. The goal is to show continuous growth and potential to attract investors. Subscribe to ‘Siliconnector’ Telegram channel for insights and news from Tech world and Silicon Valley: https://t.me/siliconnector

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**Exploding Myths: Not All Money Is Good Money for Startups** In the heady rush to secure funding, it's a narrative seldom challenged—that all investments are a boon. However, the right partnership with investors goes far beyond mere capital. In our recent analysis, the stark contrasts between strategic fit and merely financial injections come to light. A venture capital investor isn't just a bank but should be a partner that aligns with your startup's vision, growth trajectory, and ethos. They bring not just money but invaluable experience, networks, and guidance. As founders navigate these waters, remember that choosing an investor is as critical as they choose you. Compatibility in visions can mean the difference between scaling effectively or misaligned priorities leading to friction down the line. #StartupFunding #InvestorFit #StrategicInvesting #VentureCapitalInsights #venturebacked

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"Is there a fast way to sell to the NHS as an early stage HealthTech Startup?" A founder asked me this sincerely yesterday. 𝐓𝐡𝐞 𝐬𝐡𝐨𝐫𝐭 𝐚𝐧𝐬𝐰𝐞𝐫: Generally No. Let us review the position of this founders startup: 1. First version of MVP ready. 2. Compliance almost done (DTAC). 3. No current evidence yet (Pilot in 2-3 months hopefully). 4. Looking to sell to primary care/ generate leads ASAP. Which to be fair, is where many founders find themselves. ______________________________ There are 4 main factors why I say no. 1. 𝐓𝐡𝐞 𝐍𝐇𝐒 𝐢𝐬 𝐡𝐢𝐠𝐡𝐥𝐲 𝐝𝐢𝐯𝐞𝐫𝐬𝐞 𝐚𝐧𝐝 𝐟𝐫𝐚𝐠𝐦𝐞𝐧𝐭𝐞𝐝. - There isn't a single unified way to reach out to all 1250 Primary Care Networks (PCN) and the 42 integrated care boards in the UK. - If selling to GP clinics, there are 6311 clinics that you will have to approach one by one if not going through the ICB and PCN level. 2. 𝐓𝐡𝐞 𝐍𝐇𝐒 𝐢𝐬 𝐥𝐞𝐬𝐬 𝐤𝐞𝐞𝐧 𝐨𝐧 𝐬𝐦𝐚𝐥𝐥 𝐮𝐧𝐩𝐫𝐨𝐯𝐞𝐧 𝐬𝐨𝐥𝐮𝐭𝐢𝐨𝐧𝐬 (𝐞𝐬𝐩𝐞𝐜𝐢𝐚𝐥𝐥𝐲 𝐚𝐭 𝐭𝐡𝐞 𝐈𝐂𝐁 𝐥𝐞𝐯𝐞𝐥) - First off, the NHS is cash strapped. Meaning it will need significant proof to justify buying any new solutions. - A lot of software solutions are often bought in bulk (EHRs, Video Communication) at the ICB level and distributed. - But those often are from established companies with substantial experience and evidence. (Note, evidence in this case does not mean just published clinical studies in peer reviewed journals. But real world case applications) 3. 𝐓𝐡𝐞 𝐬𝐚𝐥𝐞𝐬 𝐜𝐲𝐜𝐥𝐞 𝐢𝐧 𝐭𝐡𝐞 𝐍𝐇𝐒 𝐢𝐬 𝐫𝐞𝐚𝐥𝐥𝐲 𝐥𝐨𝐧𝐠. - Even if a procurement decision is agreed upon at the board level, it still takes a while for procurement to complete. - The shared experience points towards a sales cycle of approx 6-12 months at the higher levels. 4. 𝐄𝐯𝐞𝐧 𝐍𝐚𝐭𝐢𝐨𝐧𝐚𝐥 𝐬𝐮𝐩𝐩𝐨𝐫𝐭𝐢𝐯𝐞 𝐬𝐲𝐬𝐭𝐞𝐦𝐬 𝐭𝐚𝐤𝐞 𝐭𝐢𝐦𝐞 𝐭𝐨 𝐬𝐡𝐨𝐰 𝐢𝐭𝐬 𝐛𝐞𝐧𝐞𝐟𝐢𝐭. - Established channels for HealthTech companies to scale such as the NHS Innovation Accelerator takes time for its benefits to be shown. - Joining national procurement frameworks like the G-cloud or Dynamic Purchasing Systems takes time and vetting as well. (Same for applying for any tender) _________________________________ Does this mean one should abandon all hope selling to the NHS? Certainly not. But it does tell founders to: 1. Prepare for the long run. 2. Prioritise developing evidence for your solutions. 3. Develop great assets that communicate your product's value proposition. Lead generation follows a great product with a track record. Overnight successes rarely happen overnight. To those in my network that have been there and done that, 🙏 What advice can you give? Grace Gimson | Raj Kohli | Alexandra Eavis | Patrick Harding | Liam Cahill

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The UK is well ahead of its continental counterparts when it comes to tech startups* generating revenue. 🇬🇧 👑 💂 *Let’s be honest, at these revenue levels most of the companies counted here aren’t startups. They’re scaleups or established privately held tech companies. https://lnkd.in/ebSnfcYz #vc #venturecapital #startups #entrepreneurs #entrepreneurship #tech #technology #innovation #money #business

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Here’s Sophie, making fun of VCs like ourselves, trying to tell those “value-add” stories. You see it so often, founders focusing on the venture capital “value add”. Some people create the image that a VC that can "make" your company. They can’t. We can’t. 😇 Sure, it’s nice if the investor helps where (s)he can. Helps define strategy, find interesting candidates or experts, arrange subsequent financing. 👉  But it’s more important to have an investor you really trust. One who won’t "break" your company. One who invests time and stays responsive, even if you’re not the “fund returner". One who doesn't change terms last-minute, when you’re out of options. Unfortunately, we see that happen far too often. So, to all #entrepreneurs: ✅  please do personal reference checks, ❌  instead of demanding value add and then hearing VCs tell great “value-add” stories Or, we’ll just go full Ryan Reynolds on you, your choice 😁

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❌ don't focus on Revenue or Fundraising Rounds If you want find (and scale) Product Market Fit... → simply focus on derisking your venture milestones Because that's your leading indicators to revenue and fundraising rounds ✅ So here are your 4 core venture milestones to focus on... 1️⃣ Problem Discovery & Solution Experiments Often called Founder Market Fit these days. This stage will typically line up with your pre-seed raise and most startups are sub $250K in revenues. 2️⃣ Problem Solution Fit This is where you've proven you can make customers happy. This stage typically unlocks your seed round and for most startups they're doing between $250K to $1M in revenues. 3️⃣ Go to Market Fit This is where you've found a repeatable & scalable GTM motion. This is usually a prerequisite for raising a $10M Series A (and being able to spend it productively). Most startups are doing between $1M and $3M when they figure out a GTM motion that works. 4️⃣ Scale Product Market Fit #1 This is where you've figured out your ideal customer profile, you've proven that you can make them happy, you've derisked a GTM motion that can scale and you've actually proven that you can scale it. This is typically what Series B investors are looking for and most startups will be doing $5M to $10M in revenue at this stage. By this stage you'll be somewhere on the middle of the S-curve for your first PMF and eventually your growth will start slowing... You'll need to expand to new products and/or new markets And you'll want to repeat these 1️⃣2️⃣3️⃣4️⃣ core milestones for each new version of PMF 💪 -- ♻️ 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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❌ don't focus on Revenue or Fundraising Rounds If you want find (and scale) Product Market Fit... → simply focus on derisking your venture milestones Because that's your leading indicators to revenue and fundraising rounds ✅ So here are your 4 core venture milestones to focus on... 1️⃣ Problem Discovery & Solution Experiments Often called Founder Market Fit these days. This stage will typically line up with your pre-seed raise and most startups are sub $250K in revenues. 2️⃣ Problem Solution Fit This is where you've proven you can make customers happy. This stage typically unlocks your seed round and for most startups they're doing between $250K to $1M in revenues. 3️⃣ Go to Market Fit This is where you've found a repeatable & scalable GTM motion. This is usually a prerequisite for raising a $10M Series A (and being able to spend it productively). Most startups are doing between $1M and $3M when they figure out a GTM motion that works. 4️⃣ Scale Product Market Fit #1 This is where you've figured out your ideal customer profile, you've proven that you can make them happy, you've derisked a GTM motion that can scale and you've actually proven that you can scale it. This is typically what Series B investors are looking for and most startups will be doing $5M to $10M in revenue at this stage. By this stage you'll be somewhere on the middle of the S-curve for your first PMF and eventually your growth will start slowing... You'll need to expand to new products and/or new markets And you'll want to repeat these 1️⃣2️⃣3️⃣4️⃣ core milestones for each new version of PMF -- ♻️ Repost to help a founder in your network Click 'visit my website' at the top of this post to register for my free Seed to Series A training session 💪

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There has to be a fair and transparent process to any change to taxes and a coherent plan for the future. Unfreezing fuel duty would raise £3bn to absolutely dwarf these taxes on ambition and value creation. And benefit the environment.

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When the market has shifted from growth at all costs, to efficient growth - but we still want growth, what's a CFO to do? Imagine being a CFO at a high growth startup who has to manage costs whilst still ensuring they've got their foot on the accelerator to make sure the company continues to scale. Well the team at Vertice have teamed up with Pleo for a practical webinar where me and an experienced CFO panel will share how we've successfully. Join me on the 27th of June alongside Alison Rose - CFO of the fast-growing Ebuyer and former leader at SharkNinja, bringing expertise in navigating growth while optimising costs and, Philip Watson - Former finance leader at ZoomInfo, current CFO at Paddle (175% average growth over 4 years). And, in case you're wondering, here’s what’s on the agenda: → How to balance daily tasks with tech management → Identifying and preventing tech overspend → Tips for conducting tech audits → How to decide on tech contracts June 27 | 10AM BST | 11AM CEST | 3PM EST Link to the webinar in the comments :)

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Last week I advised startups to drop the 5-year revenue projection. If a VC asks for it, I said, I'll eat my hat. One common reaction was "but Europe!" So here I am eating a tasty beret. (See link in comments for last week's post and the discussion that followed.) Having eaten that beret, here's my analysis of the Europe point, as well as some others that were made in the comments: ¶ First, it's certainly true that where you stand depends on where you sit. I've lived in Silicon Valley for 30-odd years, and I currently do seed-stage VC. So there's that. ¶ In any geography there is a range of investor styles. As commenters made clear, European VCs are 𝘮𝘰𝘳𝘦 𝘭𝘪𝘬𝘦𝘭𝘺 to insist on these projections than their US counterparts, but individuals don't always match the stereotype, on either side of the pond. ¶ If we accept, though, that the detailed 5-year projection is a mostly European requirement, then let me ask a (deliberately) provocative question: how's that working out for you? Correlation is not causality; and there are lots of other factors at play; but it's also the case that US-style venture investing (and specifically California-style venture investing) has been empirically more successful than that practiced in other places. It's certainly possible that this success is despite us "doing it wrong" for all this time; and it's also possible that what's worked for the last 50 years is no longer valid in 2024; but neither of those seems like the most likely conclusion. If anything, time horizons are getting shorter, not longer. Now, all that said, there 𝘪𝘴 information content in a 5-year projection. Last week I mentioned four things that are important to VCs: 1) are you ambitious enough, 2) are you realistic, 3) what's your Price and Cost at Scale (PACAS), 4) what's your Customer Acquisition Cost at Scale (CACAS). (Et oui, je me suis bien rendu compte des autres significations :). To those I would add: 5) what's your level of business and financial sophistication? The thing is, these are all things I have to 𝘪𝘯𝘧𝘦𝘳 from a 5-year model. All of them can be gotten in other, usually better, ways. Such as the direct approach: "what's your ambition here? can you show me your unit economics? how much marketing spend do you think it will take to deliver $100 million in revenue?" Some founders in last week's comments said that when a VC demands a 5-year projection, that's someone you don't want to work with. That's an overreaction. More important is to get to the question behind the question: I understand that you're asking for this, but what is the real concern? It's good to figure out if it's one of the five things above, or something else entirely, as that will tell you a lot about the investor as well as how best to answer the request. OTOH, if they don't know why they're asking, or if they won't tell you - "that's just how we've always done it" - that's a red flag; you want your investors to be thoughtful and transparent.

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There’s a concept in fundraising that I keep going back to, coined by Benchmark, which they call 'Liquidity Quality': It refers to how impressive are the early product engagement numbers, independently of our likely flawed assumptions about the initial market size and the world. What’s the main take-away? Work on proving liquidity quality > quantity. Tell a story that clearly displays the quality of your traction. Here’s Bill Gurley explaining the concept using Yelp as an example: #tech #startups #fundraising

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📋 15 Cheat Sheets on Marketing, Sales, Fundraising, Pitch Decks, and More 🔹 Pricing and Packaging Software 🔹 Five Prospect Stages 🔹 2024 Fundability Benchmarks 🔹 Leadership Transitions 🔹 SaaS Monetization Steps 🔹 Essential Pitch Slides 🔹 Paul Graham’s Investor Guide 🔹 Investor Question Types 🔹 TAM, SAM, SOM Explained 🔹 Comprehensive Pitch Deck Guide 🔹 SaaS Sales with MEDDICC 🔹 Identifying the Right Customers 🔹 Anatomy of a Perfect Pitch Deck 🔹 Prioritization Frameworks #Marketing #Sales #Fundraising #Business #CheatSheets

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Over the last few months, I've had countless conversations with founders. Many raised huge rounds in 2021, at sky-high valuations. But now? They're running out of capital, facing tough fundraising realities. → Down rounds → Lower valuations → Raising far less than before Some companies smashed their targets and are still seeing traction. But many? They spent like it was always going to be 2021. Now, they're paying the price. The lesson? In good times or bad—sustainable growth matters. P&L’s matter. Are you building for the moment, or for the future? #Startups #Fundraising #SustainableGrowth

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