Nick Katz

At the seed stage, the most exciting conversations occur when a founder conveys a clear and compelling vision of the opportunity they are pursuing. Although the path to get there is uncertain, they have an extraordinary clarity about the destination. Our role is to "see what they see." In 2016, Simon Phelan pitched us an "Amazon for energy," a one-stop shop for all energy needs enabled by technology. He described a future where, as the grid becomes more decentralized and closer to our homes (solar panels, heat pumps, etc), value would shift from traditional energy suppliers to those who can connect customers with multiple renewable solutions as well as finance them. He saw an opportunity to build a new type of energy company. Last week, Simon's vision came one step closer to reality with the announcement of a £250 million asset-backed facility with Barclays. It's amazing to see his original idea materialise after eight years of building the company step by step. Simon chose the unglamorous boiler as his entry point; then grew an installer network, both organically and through M&A; before expanding their product range to solar panels and heat pumps. The next stage was to bring in financing from one of the UK’s best known banks, as well as a debt facility from one of the world’s biggest asset managers, BlackRock. It's estimated that an investment of £250 billion will be needed to fully decarbonise UK homes by 2050. Who is going to finance this infrastructure upgrade? Hometree 's connection to the capital markets is a real milestone to get us there and signals the emergence of a new type of energy company that is just getting started.

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The impact of Airbnb on housing markets has long been debated, especially as cities worldwide crackdown on short-term rentals. EY’s recent study, however, reveals that Airbnb has limited influence on housing prices. The study points out that the real challenge lies in the UK's shortage of 5 million homes, while also highlighting Airbnb’s £5.7 billion economic contribution and the 75,000 jobs it supports. From reading the report, it seems clear that governing bodies have underestimated the economic benefits of Airbnb, and overstated its role in housing challenges. You can read the full report here 👉 https://lnkd.in/epXX28dt I’m interested to know others' take on this. Do you agree that this is a distraction from the real issue of housing supply?

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🕵‍♀️ We meet a lot of the founders we invest in at our events. When is the next one, you ask? 13 November, in sunny Lisbon. As someone spending a lot of time between London and Hamburg, I'd say don't go for the money and don't go for the network. Go for the weather. 😉 Jokes aside, even if you don't want to or can't travel, you should still apply, as we review every application - and who knows what will happen... 💫 #diversefounders #impactinvesting #climatetech #inclusiontech

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When buying a business, bigger is always better... right?? Some people say that, but of course the answer is nuanced. Plenty of guests on Acquiring Minds bought quite small businesses for very good reasons. Well, having seen hundreds of searchers as director of Acquisition Lab, Chelsea Wood will give a presentation on how to answer this question for the particulars of *your* life & goals. It's a webinar this coming Thursday: How Big a Business Should You Buy? Come find out. 👉 link to register in the comments below

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Money comes with a lot of strings attached. Know the terms whether it’s debt or equity….

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🚀 Mattioli Woods' Rise: From Garage Startup to Managing £15 Billion 🚀 Join Ian Mattioli as he recounts the humble beginnings of Mattioli Woods plc, from making pivotal calls in a garage to managing £15 billion. This video captures the essence of entrepreneurial spirit, illustrating how shared drive and proper alignment can elevate a simple idea to remarkable heights. Learn about the strategic choices in office locations and the importance of environment in fostering growth. Whether you're an aspiring entrepreneur or a seasoned business leader, this story of progression from grassroots to greatness offers valuable lessons in scaling and strategic development. #Leadership #BusinessGrowth #FinanceSuccess #EntrepreneurJourney #MattioliWoods

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I don't go in for 'building in public' in general, but every now and then I think it's worth sharing what I'm seeing in the market. The below graph shows the average time to close a deal over time at EmergeOne and you can see that this has been creeping up since last year (adjusted for seasonality) and is currently close to 3 months to close a deal. So what's happening? Well, I was recently at an CFO event where we got a bit of a data driven view into the state of private markets. Some key points that came out: 🏷️ Median post money at Series A has dropped from 80m USD in 21/22 to 65m USD in 2024. This is still up from 40m from circa 2020. ％ Top quartile is significantly over at 107m. 📈 Series B median post money is $137m, top quartile $287m USD, but bottom quartile significantly struggling. 🚀 Deal velocity has slowed but started recovering. 💰 Lots of deals are happening but not priced - bridges abound. So how does this therefore relate to what we're seeing in terms of time to close? Firstly, we are a consultancy providing fractional CFO support to venture backed tech startups typically post Seed and pre Series A so this data reflects what we are generally seeing in the market as well. But the two main issues that are seemingly impacting our numbers are around deal velocity and bridge financing. There are simply fewer deals being done and they are taking longer to close, so the volume of potential clients we can target has dropped significantly. This does, however, mean that the quality of deals we're working on is significantly higher this year. Secondly, as companies struggle to raise priced rounds, they are raising lower amounts of capital on convertibles. This impacts us as CFOs are only truly valuable when there is a significant balance sheet to manage, less capital = less need for CFOs and hence the decision as to when to bring us in gets pushed out. But equally, that insecurity over funds means that founders are much more hesitant to make significant hiring decisions, prioritising hires that can directly influence revenue / traction in the near term. But they also know that they need the support so are often waiting for the 'magic moment' where they hit an inflection point that gives them confidence to pull the trigger. Outside of the deal data, we are also seeing venture indexing towards more R&D heavy businesses (life science, hardware etc.) and these sort of companies are often not commercialising for several years. They have security over spend and regard finance as a future problem. We are seeing a lot of companies approaching Series B without anyone in finance, deferring that decision till they close. But we are also seeing leads come through from a multitude of sources proving there is appetite for strong commercially minded CFOs to support and grow these scaling businesses. So as the market stabilises, I would expect to see these numbers come back. Business wouldn't be any fun if it was all easy, would it?!

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This week, Phuong Ireland and I dive into one of the most crucial yet often perplexing aspects of startup formation: cap table construction and equity distribution. If you're setting up a startup or restructuring your cap table, this conversation is a must-listen. We discuss the essentials of how to navigate structuring equity so that the cap table aligns with industry norms, aiming to attract investors while motivating founders and early employees. From understanding equity splits among co-founders to planning an option pool for future hires, we cover actionable insights that can help founders avoid common pitfalls. This is a tough topic for new entrepreneurs. Hopefully this episode can help folks build a balanced and adaptable ownership structure that supports growth and long-term success. https://lnkd.in/emWEer9B

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Our mission is clear: to make top-tier services affordable and accessible to the mid-market. Freelancers were often the only viable option in the past, while consultancies came with high costs and other downsides. Our experience shows that a small integrated team of senior operators delivers the best results. A rapidly growing number of repeat customers agrees. Reach out to learn how we can help you accelerate growth affordably yet through a best-in-class delivery model. #operatingpartner #commercialexcellence #privateequity #freelancer #managementconsultant Mitul Ruparelia Pedro Correia Krishna Chaitanya Simon Blackburn

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Taavet Hinrikus and I made the Financial Times Due Diligence email. https://lnkd.in/ez2AuGQx One 'unintended consequence' is that if there is a 45% tax on carry and CGT (raising £40m per year, remember) it for all intents and purposes closes the door on new VCs in the UK. Especially started by teams from non-traditional backgrounds. To meet the GP commit, you need to be already part of the 'wealthy' as you cannot rely on the value you create - nearly half of it will disappear - to fund it. We have both had extremely successful startups which are few and far between. The smaller number of new VCs will therefore more likely increasingly be for people who have inherited the capital or can draw it from their already rich family. Probably not want they have in mind with this policy.

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There's plenty to think about in the inaugural State of European VC Fundraising Report. The significant decrease in the amounts being raised by European funds following the Tech Reset is, frankly, on the alarming side for European eco-system. Not that the report is all doom and gloom - anything but - as it shares thoughts of various fund managers on the various strategies adopted. Plenty of food for thought. #VC #EuropeanVC #Fundraising #TechReset #Investment #StartupEcosystem #VentureCapital #EuropeanFunds #TechIndustry #Innovation #InvestmentStrategies #EcosystemGrowth https://lnkd.in/dzEJiG7C

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Despite the industry shakeup, I’m incredibly bullish on the office. And I see HUGE opportunities emerging for European entrepreneurs. Who will capitalize on it? The Shakeup: 1. Supply <> demand imbalance ∙ Rising vacancy rates ∙ A surge of quality spaces on rental portals 2. Surge in sub-lease market ∙ Blitzscale era companies offloading (or exiting) lease commitments ∙ 48% of all companies are looking to decrease office footprint in next 3-5 years (source: JLL) 3: Flight to quality ∙ Favor towards Class A, amenitized, prime locations ∙ Plummeting Building Valuations But this shakeup is unlocking a new market opportunity. Tech companies demand better space, and landlords desperately need to attract customers to theirs. Both need support. Brokers and Flex will take a share of the pie, but there’s a huge chunk left to bite into. Who’s at the forefront? I have some thoughts of my own… Drop a note in the comments. Let’s chat. #futureofwork

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Check out Garibaldi's Mid-Year report on Technology M&A and investment trends. We are starting to see a slight **knocks on wood** recovery in both investments and exits!

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Imagine speaking without saying a word! Sci-fi? Not Anymore 🧠🗣️ Rubén D. and I had the chance of interviewing Vasco Pedro, the CEO & Co-Founder of Unbabel, who demoed their mind-blowing product, Halo Halo is a revolutionary technology that combines hardware, software Gen AI and a non invasive neural interface to translate brain signals into words hence - "speaking without saying a word" 🤯 Early usage is transforming the lives of ALS patients who haven't been able to speak in years. Seeing it in action is absolutely jaw-dropping 📽️ You've got to see the demo in the interview below 👇 AI For Good 🤖💖 - It's here ✅

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Highlighting: "The market for a bespoke solution like Holoride may be narrower than its founders once hoped." "No shit, Sherlock." This was a niche of a niche of a niche that I honestly never understood. Imagine starting with the people who are VR enthusiasts, and then reducing by the people who want VR in cars, and then the people who have recent year Audis, and then people in Germany (the USA was added later), and then the people who will buy a $700 semi-enterprise package that comes with access to only a dozen games, but also a $20 a month subscription. This is like 1% of 1% of 1% of 1% of 1% of 1%. The shocking thing is not that they ran out of funding. The shocking thing is that they EVER got any funding. Oh and keep in mind, all that fun stuff about VR being 6DoF, roomscale, body movements, arm movements, hand tracking? All gone. This is semi-3DOF locked in your seat holding a console style knock off bluetooth controller. The VR headset? HTC Vive Flow. The gamepad? 8BitDo Pro 2 Gamepad. The cars supported? Only the Audi A4, A5, A6, A7, A8, Q5, Q7, Q7, Q8, Audi e-tron, Audi e-tron Sportback, Audi e-tron GT* Nothing else. No other makes and models. Just a few Audis. Who does this?! Seriously? Its like developing a PC Game that can only be played by people in Madison, Wisconsin running Mac Pro towers built between 2009-2015, and they can play that game on Wednesday on odd dates of the month. Who does this?! This isn't a business. It's a boutique artisanal popup shop selling handcrafted farts to people who can't smell. It's just confusing. ----- UploadVR: "Holoride Insolvent As Investment Falls Through: 'Pioneering Is Painful'" (IAN HAMILTON) (10 MAY 2024) Holoride's founders say they've filed "for insolvency" after an investment round fell apart. The startup built a platform to present VR headset as in-car entertainment with demos offered at trade shows like CES showing off the concept and a partnership with Audi to sell it to for use in cars in Germany. Holoride CEO and co-founder Nils Wollny acknowledged making mistakes in a post on LinkedIn, that “pioneering is painful” and they "missed our first shot." Responding to questions from UploadVR, Wollny explained over direct message that some employees had been laid off “in February this year based on a new strategic direction. Our team's right-sizing was also based on terms we had agreed on with our planned lead investor.” “While our business operations continue, we are working with the provisional insolvency administrator to find a solution by the end of June to ensure the continued existence of holoride GmbH and conclude our strategic repositioning, which we have intensively worked on.” UploadVR: https://lnkd.in/g32pFPrA #vr #xr #holoride #puzzling

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One thing I’ve learned over the years is that partnerships are the backbone of sustainable growth. A great partner integrates seamlessly with your team; they become an extension of your team. I’ve found the most success with partners who align with our values and can scale alongside us. The right partnership goes beyond transactions. It’s about finding those who fit seamlessly with your team’s values and goals. #Partnerships #BusinessGrowth #Collaboration #Teamwork

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🌍 Pitchbook has shared their European VC Investment in Climate Tech report 🌍 swipe 👉 to read the highlights on Europe's evolving climate tech investment landscape #ClimateTech #Sustainability #GreenEnergy #VC #Europe #CleanTech #Innovation #NetZero #GreenDeal #CleanEnergy

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I have expressed incredulity with news stories from the The Information and they have proven me wrong so this report is truly shocking. Bolt was valued in a peak market Series E in early 2022 at over $11 billion by BlackRock then almost fully written down in 2023 (as many seemed to indicate there was limited revenue or a business model) and now the company is raising $450 million of capital from investors in the United Arab Emirates and the United Kingdom at a $14 billion valuation? What am I missing here? Hopefully earlier investors have sold secondary shares into this round. #valuations #bolt #ecommerce #alternativeassets #privatemarkets #venturecapital #startups #fintech https://lnkd.in/extH76g2

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