Chris Worsey

Numbers & insights from a deep tech venture studio that launched 11 companies (all are active) in the last 7 years, reaching £85M valuation across the portfolio: 1. Post Urban, initially bootstrapped by Luke Robinson, an academic with a PhD in physics from Cambridge, now operates with external funding from a UK-based fund. 2. Launched 5 companies during the first 5 years and 6 companies during the last 2 years. 3. All 11 completed pre-seed rounds; 1 of them got Series A, 2 of them are approaching their Series A. 4. The startups have collectively raised ~£25M in venture capital, in addition to receiving grants. The total valuation of the 11 companies is ~£85M, half of which have not yet undergone subsequent funding rounds. 5. Initial equity splits: the venture builder 20%, CEOs of startups 35% (vests over 4 years), CTOs – 20-25%, employees 10-15%. 6. The initial valuation of startups was £2 million, with £300K invested by the venture builder. The last 2 startups were at £3.5-4M initial valuation. 7. Building deep tech ventures requires significantly higher initial funding because these projects need more time to develop demonstrable products. Two portfolio companies hit £1M in ARR. 8. The venture builder has increased the capital for the last 2 startups to ensure they reach meaningful milestones. The CEOs of the startups were able to secure additional funding through their networks, £350K and £450K, respectively. 9. The deep tech investor pool is smaller than that for sectors like SaaS, which requires a stronger proof of concept and market readiness to attract funding. 10. 3-4 times, potential customers became investors in Post Urban Ventures. This is a great approach because it secures investment and validates the concept by gauging whether these potential customers truly believe in the solution and its market necessity. 11. They don't start with a technology or an idea; instead, they integrate insights about global problems and, by actively engaging with advisory boards, founders, and industry experts, identify pain points and align them with technological solutions. 12. They do not bring universities in as co-founders but source scientists or professors to contribute to research and development. This involves leveraging academic expertise to support the technical aspects of startup projects until a prototype is developed. 13. The studio maintains strong connections with major academic institutions, including Cambridge, Oxford, Imperial College, and UCL, supporting its deep tech focus and facilitating access to new technologies and potential founders. 14. Areas of focus in deep tech: AI (Knowledge Graphs, NLP, DNNs, Computer Vision, Edge AI, Active Learning), Quantum Technologies, Biotech, AgTech, Enterprise SaaS. Watch the full interview to gain insights into the portfolio companies, handling IP collaborations with universities, key challenges, and team construction: https://lnkd.in/dCi7fZ7G

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Best founders are absolutely obsessed with what they are building. They think of their startup 24/7. They are resourceful and relentless. VCs like myself want to invest in teams that are all in for global domination and want to succeed no matter what. But it's such a fine line between a healthy obsession and an unhealthy addiction that ruins lives. Venture Capital is a tough business to be in if you want to stay sane and ethical. To be honest, I don't know if you can. #mentalhealth #venturecapital #startups

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🔥🔥🔥 TikTok Ban Predictions: A connected US investor group will buy it, at a premium, thinking they're getting a good deal. The Chinese will sell it happily, having already trained their AI models adequately as well as successfully using it to wedge a gap between the US and Israel. The Chinese will sell it happily, but will remove certain nuanced aspects of the algorithm that drives user engagement (understanding what a video is about and suggesting videos you'll like is critical in its growth). The engagement will drop. US buyers will want to recoup their high bid ($100B, I'd guess) and they'll dial down the ability to go viral for free to encourage more ad buying. The fact that a brand new account can go viral is the reason people make so many videos. Less virality, less great content: engagement will drop. To boost falling numbers, possibly against a reverse acquisition stock price, the new owner will push platform revenue and this will cause too many tiktok shop posts, which are perceived as ads of sorts. This will drop engagement. This downward spiral will not be recoverable without great content and virality for all. If the new owners don't do this, they'll have to sell it one day thereafter. If these predictions come true, Meta will most likely buy it for the user base for $10B (my estimate). These are just predictions, let's see if any come true. CC: Chamath Palihapitiya in case this goes viral lol.

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Medial's first pitch deck was a two page word document. Here's what it had in total - 1) About the founders. (3-4 lines each with LinkedIN links). 2) About the product and "Why Now?". 3) Our vision in longterm. 4) How'd we utilise the capital. 5) How much are we looking to raise. All text, a few screenshots from the apps figma design. That's it. Scored us our first VC investment alongside 5 angels. When we extended this round recently, it was the same text deck with metrics. That's it. I had thought of getting a deck designed, building a story but then resorted to doing what I do best- Write.

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This is an excellent article (loong one, pls note) on a step by step guide to hitting PMF or product-market fit. Love how PostHog cofounder 🦔 james hawkins visualises PMF akin to a game, with 5 levels and how to jump levels. More relevant for B2B / SaaS founders than B2C given James' experience w Posthog. One quibble would be keeping the ICP definition process on Level 5, whereas it should be something that you freeze on with picking the problem (his Level 1) ideally. While James describes this as getting to PMF, in my #pmfplaybook this is actually PPF or product to problem fit. In my definition, PPF + MMF (GTM Motion to Market Fit) = PMF. Repeatable scaling post this stage (5 reference customers) via a scalable GTM playbook is what is truly PMF. But this is my opinion against his opinion + track record of building to $20m ARR. This is a truly masterful resource for iterating to PMF. Every B2B / SaaS founder starting out or an aspiring B2B / SaaS founder should eyeball / read this. https://lnkd.in/ghGhBn-v

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⏰There is a Tick Tock pulse in fundraising and sales⏱️ If Tick is fundraising, Tock is sales. ❌ The problem is most founders go Tick Tick Tick > Tock Tock Tock ❗️Now the next Tick will be much harder because your valuation has now priced in all that past revenue (fair) but without a clear line of sight to future revenues that drive venture-scale growth. 🕥This can prolong the fundraising process as investors wait to see your next batch of contracts come in. 💡One solution is to fundraise after signing a contract but before servicing it. In other words, pre-A/B rounds. It’s a short window but this is the Tick Tock pulse that works incredibly well if you get it right. Here’s the narrative: 1️⃣We have $x in signed contracts and will have to service them over the next 12 months 2️⃣We’re raising now so we can focus on pleasing our customers when the time comes. 3️⃣For this peace of mind, we’re willing to take a 20% discount on our next round valuation given the contracts are already signed. 4️⃣Of course, you are welcomed to join after we’ve closed the revenues. We might be raising at 20% discount to the following round by then. 💡As an added benefit, founders get to focus on one thing at a time - fundraising > sales > fundraising > sales (Tick Tock Tick Tock!) ➡️As with most things I share, works for B2B deep tech. I think? 🧐 💸Don’t try this at home (consumer tech).

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🔴 Many founders think a VC investor will write them a cheque after the first meeting. The reality is quite different. It takes months for an investor to: ▪ Fully grasp your business and the market you're in ▪ Build trust in you as a founder ▪ Develop conviction in your deal A powerful way to nurture this relationship is by sending a monthly email update to the investors you're most keen on. 🔥 Here are a few tips on how to make your updates more effective: 1. Keep it text only, short in length and scannable. Don’t record a video, investors won’t watch it. 2. Start the email with a summary that highlights the challenges, breakthroughs, and key learnings from the past month. 3. Emphasize on KPIs and metrics. Limit to the most important 5 metrics, including month-on-month growth. This is the most important section of your email. 4. Ask for help. Include a section where you ask for introductions, strategic advice or any kind of help that you need to overcome a challenge. 5. Ensure your email is well-written. This is an opportunity to demonstrate the clarity and sharpness of your thinking. 6. Be selective with your recipients. Only send updates to investors you’ve met and are seriously considering. 7. Address challenges candidly. Don’t sugar coat anything. Investors appreciate transparency and problem-solving capabilities. 8. Make it memorable. Add a unique insight, story, or achievement that leaves an impression. Every update should have a theme. 💯 Investors are not just looking for the next big idea - they're investing in people and the journey they are on. The chemistry between you and your investors is crucial. Regular updates are a great way to lay the foundation and build that connection over time. 🤔 What do you think? What other tips would you add to the list? What other fundraising strategies have worked for you? I’d love to hear your thoughts. #venturecapital #startups #founders #entrepreneurship #fundraising

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It’s foolish to expect startups to grow non-stop in a straight line. Some of the best ones we’ve seen have had major ups and downs. Some examples from our own portfolio at Tin Men Capital: GlobalTix's revenue went to zero during the pandemic - Their revenue is now 3x of pre-CoVid levels. Zipline.io was faced with their business declining quickly - They pivoted their model completely and grew to their new product to US$4mm in ARR in <2 years. Surviving as a startup is by no measure an easy feat. Thriving and growing is even tougher. Sometimes growth will seem stagnant. There will be manic highs and depressive lows. What matters is what you’ll learn from the challenges. Investors have to evaluate carefully, make smart bets and then let the thesis play out with some patience. The startup journey is a roller coaster ride not for the faint of heart. And we’re proudly in the business of backing these thrill-seekers. Startup growth is NOT a straight line up and to the right. Agree?

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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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UK venture capital fuels startup triumphs The UK is home to some of the most successful venture capital firms in the world. These firms specialize in providing funding and resources for startups, as well as guidance on navigating the early stages of business ownership. Some of these VCs have made massive investments into early stage companies, leading to their incredible growth and successes. UK's venture capital expands global investment reach The UK venture capital landscape continues to grow. With some of the top firms in Europe being situated in the UK, It's no surprise that there are a number of venture capital firms from the country which are leading the way when it comes to investing in European and global startups. Here two of my favourite lists please comment like and share :- Mountside Ventures’ list of 50+ VC firms with fresh capital and UK focus: https://lnkd.in/dAFrtNaz . https://lnkd.in/e7nwKMBv

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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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🚨 𝐀𝐩𝐩𝐥𝐢𝐜𝐚𝐭𝐢𝐨𝐧𝐬 𝐚𝐫𝐞 𝐨𝐩𝐞𝐧 𝐟𝐨𝐫 𝐭𝐡𝐞 𝐧𝐞𝐱𝐭 𝐄𝐖𝐎𝐑 𝐟𝐞𝐥𝐥𝐨𝐰𝐬𝐡𝐢𝐩 𝐜𝐨𝐡𝐨𝐫𝐭𝐬 🚨 𝐓𝐡𝐫𝐞𝐞 𝐫𝐞𝐚𝐬𝐨𝐧𝐬 𝐰𝐡𝐲 𝐲𝐨𝐮 𝐬𝐡𝐨𝐮𝐥𝐝 𝐚𝐩𝐩𝐥𝐲: 🚀 Real founders (who have built companies worth €12BN collectively) as one-to-one mentors. 🚀 Immediate funding up to €150,000. 🚀 A focus on hands-on company building, not just theory. A bonus fourth: I am a fellow already, so let's hang and build the future together! More about the Fellowships EWOR 𝐡𝐚𝐯𝐞 𝐭𝐰𝐨 𝐩𝐚𝐭𝐡𝐬: 💡 𝐈𝐝𝐞𝐚𝐭𝐢𝐨𝐧 𝐅𝐞𝐥𝐥𝐨𝐰𝐬𝐡𝐢𝐩 - for founders who are pre-idea or early stage 📈 𝐓𝐫𝐚𝐜𝐭𝐢𝐨𝐧 𝐅𝐞𝐥𝐥𝐨𝐰𝐬𝐡𝐢𝐩 - for founders already generating revenue More about EWOR The community is incredible. I never expected such a warm and supportive group of Mentors or Peers. I thought business was meant to be cut-throat and ruthless?! Some examples from the current cohort include: Konstantinos (Kostas) Fetfatsidis: A former aerostructures engineer who founded a 3D printing company that was acquired by Desktop Metal. Natalie Pace: A Los Alamos National Laboratory fellow who developed a first-in-class rapid diagnostic test for bacterial pneumonia. Ricky Knox: A serial entrepreneur who has built 3 businesses, each with 1,000+ employees, respectively securing 8 and 9 figure acquisitions. Best part? 💰 You get real support securing your next funding round within 12 months. 🗓 𝐀𝐩𝐩𝐥𝐢𝐜𝐚𝐭𝐢𝐨𝐧 𝐝𝐞𝐚𝐝𝐥𝐢𝐧𝐞: 02 December 2024 💬 Happy to answer questions about my experience - DM me or drop a comment 👇 📝 Ready to apply? https://lnkd.in/eCRVcTRJ

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🚀 We're raising up to £500k of EIS Qualifying equity to power the next phase of growth at The Wealth Mosaic! 🚀 After 7 years of building a loyal community of over well over 10,000 subscribers and 150,000+ website users, The Wealth Mosaic is ready to monetise its strong global network within the wealth management industry. 🌐 Why Invest? - The Wealth Mosaic is the leading digital vendor directory for the wealth management sector, connecting 30,000+ contacts and generating 24 million impressions annually. - With our new strategy, we’re unlocking scalable revenue streams through subscription-based access and enhanced member services. - Our goal: to revolutionise engagement, positioning, and discoverability for vendors of all forms across the global wealth management sector. A true shop window to support an increasingly complex and changing market. 📈 Join Us on Our Journey  We're seeking sophisticated investors and UHNW individuals to join us in this advanced subscription agreement, with a target raise of up to £500k to fuel our ambitious plans for growth. 🔒 To learn more about this opportunity, please contact us directly to access our investor deck. Due to initial positive interest, we anticipate closing the funding round on 20th December 2024. #Fundraising #WealthManagement #DigitalDirectory #TheWealthMosaic #InvestmentOpportunity #EIS #DirectInvesting #PrivateBanking #TWMMembers #WealthisChanging #DigitalMarketplace #VendorDirectory Mungo Guy-Vaughan Hamlet Marc Bussell Lea Espanta John Marcus Pangilinan Mike Iles Simon Ramery Greg Simidian Jamie Keen Ian Max Ewart Ian Woodhouse Phil Watson Efi Pylarinou Alois Pirker April Rudin Christian Jedlicka Pamela Cytron Nat Clarkson Kendrick Wakeman, CFA Jasmine Willis Keith MacDonald Steve Dyson Michael Walford-Grant Ivan Schouker James Goad Philip J. Weights Mark Yeo Tee Shen, CAIA, FRM Gar Chung Alessandro Tonchia Gregor Mueller Marc Oliver Hauser Brigitta Gyoerfi, CFA Gareth Davies Beth Goldstein Marshall Smith Keith MacDonald Sharmil Patwa John Pepin Dr Mario A Bassi Capital at risk.

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Securing venture capital for your startup means targeting revenues of $100M to $1B within 7-10 years. Falling short at $10M can be viewed as unsuccessful in this context. However, such outcomes can still represent successful businesses; they might just not be suitable for venture capital funding. While these might not be blockbuster unicorns, they can still yield significant personal wealth. Many entrepreneurs aim high, but starting with self-funding or small investments from friends and family can often be more prudent. If your business rapidly escalates, you can always seek additional funding. If growth is steady and you're enjoying the journey, continuing on your current path is perfectly fine. Both approaches are valid, but maintaining flexibility in your business decisions can often be the wisest strategy.

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Fundraising, its the hardest it’s even been. Fundraising along most stages of a business cycles have been very tough. Speaking to fellow founders, or even funds raising capital - money is harder to come by. But, it’s not impossible. I recently closed an additional round of £300k from angel investors to help us for our next stage of growth. Here’s some suggestions to anyone looking to raise funds in this climate: 1. Do a rolling close, you can bank the money in whilst raising the rest. Don’t wait for a target - it only takes one investor to pull out for you to be back at square one. 2. A company in the same industry that has just raised? Speak to them for tips, intros and more 3. Targeted approach to relevant investors with personalised intros - most are happy for cold DM’s 4. It’s a numbers game, make your life easier - use tools that can scale your outreach when you’ve figured out 2 5. Go back to existing funders or those you may have engaged with before, it’s easier to raise from people who are familiar with you 6. Hustle, engage with pitching events, angel networks and people who are connected to the ecosystem Do these 6 things and give yourself 6 months from when you start. P.S - the word from credible VC investors is that in the next 9 months, there is a LOT of dry powder becoming available. Exciting times ahead to build exciting products, services and businesses. ♻️ Repost this to help others who might be fundraising, too. Follow Dhruvin Patel for more.

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😱Fundraising Scam - Part 2 and What I've Decided to Do About It😱 After the post I did a week ago, I was contacted by 6 other founders who went through the same experience. It's unbelievable how common this is, and yet no one is talking about it, let alone doing something about it. I have just posted my latest blog talking more about fundraising scams. This time it's about the experiences of other founders I know. With all these scary stories and bad market players, I know there are more decent people in the startup ecosystem (I can guarantee this as I've met many of them). I do not think the scammers can be stopped, but together we can raise awareness so these scammers won't stand a chance. I decided to start collecting data on scam incidents and the scammers, and later make it available to a wider audience. See more details in the post: https://lnkd.in/eXCfS86a

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49 founders and senior startup leaders respond to a survey from Sifted on the relationship between founders and VCs. Are expectations off from the start as VCs try too hard to pander to their founders with over promises of "value-add" and extensive platform teams? Do founders need to be reminded of their primary role - execution?

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Here’s what a general partner once told me: (It’s been stuck in my head since then.) “By approaching the wrong investors, founders are wasting both the investors' time and their own.” Let me explain: One of the biggest mistakes founders make when raising early investment rounds is targeting the wrong investors. It’s easy to assume that any investor is a good investor, but that couldn’t be further from the truth. Approaching the wrong ones wastes time, burns bridges, and derails your fundraising efforts. How to fix it: 1. Do your research Make sure you’re sending your deck to investors who invest in your industry, stage, or geography. 2. Learn from history History doesn’t repeat itself, but it rhymes. Investors often have niches or preferred industries. If they’ve never funded anything like your startup before, it’s unlikely they’ll start now. 3. Personalize your outreach A generic message makes you look unprepared and unprofessional. Take the time to tailor your pitch to each investor. 4. Be strategic Whenever possible, start with warm introductions, and focus on quality over quantity. 10 well-targeted pitches are far more effective than sending 100 to random investors. Now that you know how to avoid these common mistakes, go out there and get what you want! But remember, before you start pitching, make sure your deck is investor-ready. ⬇️ P.S. We just launched a free pitch deck guide. It’s meant for entrepreneurs looking for help with building a pitch deck. You can get it on my profile!

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