Paul Whitehead

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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Sir Martin Sorrell built and ran the world’s largest ad agency, WPP, and has consistently been one of the UK's highest-paid executives. We had him back on Riding Unicorns for one of the furthest reaching discussions we’ve had so far.. Sir Martin has bucket loads of charisma and a unique no-BS style. I thoroughly enjoyed this one. Some of his takes ⤵ "Globalisation is in reverse. Businesses must now focus on strategic regions like North and South America, the Middle East, and Asia to find growth opportunities." "AI is as fundamental as the iPhone—it's transforming industries through efficiency and hyper-personalisation. The key is to leverage AI for democratising knowledge within organisations." "In a world of slower growth, digital transformation and cost efficiency are paramount. Success comes from adapting to change and maintaining a long-term perspective." "The languages of the future are Chinese, Spanish, and code. Mastering these will be crucial for navigating tomorrow's business landscape." "Stay curious and passionate. Continuous learning and adaptability are vital to thriving in today's ever-changing business environment." Episode in comments

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TLDR: EIS should be scrapped as a fund structure but retained for Angel investments by individuals. Alex Chalmers has done all the work which in 10 years I've never got around to doing: why 95% of EIS/VCT funds are bad for our tech ecosystem, rip #startups off, and why as a Founder you should push back against their stupid fees or not take their money. https://lnkd.in/dnq9ZScS

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Taking Windward public in London was a significant milestone, but the landscape has shifted dramatically. The startup and VC world is facing a silent recession as severe as 2008, yet it’s flying under the radar. Funding is scarce, and many promising companies are quietly closing their doors. But this isn't just about survival—it's about adapting and thriving. In tough times, resilience is key. The startups that emerge from this storm will be the next Airbnb, Uber, or Microsoft. How are we positioning ourselves to not just survive but lead in this new era? For us - it’s very clear. Leveraging our blue chip customer base, proprietary data and mature tech platform to build #generetiveai first products (stay tuned!) Don’t take anything as trivial . Success requires a combination of so many factors. Every day is day 1! Link to the full piece on Forbes : https://lnkd.in/e-5kENaT #wnwd

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Entrepreneurs like Tom Blomfield and Barney Hussey-Yeo are right to flag the risks facing the UK’s tech scene. But having built two tech companies here, in Beam and JustPark, I’ve seen the UK's moat that makes it a great place to grow a start-up. The talent here is world-class and we attract people from across the globe. The UK’s location, time zone and language makes it a gateway to global expansion. And, to top it off, it’s a great place to live. As #Budget2024 approaches, though, the government mustn’t be complacent about this. I know entrepreneurs in my network who are considering crossing the pond and growing their start-ups and scale-ups in the US, taking with them the jobs and growth these businesses create. The government's focus has to be on getting the financial incentives right for founders, getting more investment into UK start-ups from our institutions and from overseas, and keeping red tape in check to allow entrepreneurs to flourish. What do you think? Is the UK in danger of losing its status as a tech superpower?

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This week’s headlines bring a sobering reminder of the profound impact AI can have on our lives. On Character.ai Sewell Setzer, 14, grew close to the bot version of Games of Thrones character Daenerys Targaryen, often spending hours talking to it/her before taking his life The boy’s family has filed a lawsuit against Character.ai and its parent company, Alphabet (who acquired the team for $2.7bn this year), following his passing. Additionally, chatbots impersonating sensitive figures were discovered on the platform, prompting Character.ai to remove violative content and delete months of chat histories—a move that has stirred debate among users. "During a recent interview, and in court filings, Ms. Garcia, 40, said she believed that the company behaved recklessly by offering teenage users access to lifelike A.I. companions without proper safeguards. She accused it of harvesting teenage users’ data to train its models, using addictive design features to increase engagement and steering users toward intimate and sexual conversations in the hopes of luring them in." (Full article in comments) As AI technologies like ChatGPT become more integrated into our daily lives, it’s crucial to limit the personal data and emotional depth we share with them. Protecting our personality insights and personal information isn’t just about data security—it’s about safeguarding our mental well-being and the importance of moderation.

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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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This may be anti-narrative given the buzz in the market. Paul Graham’s Founder Mode essay (link in comments) glorifies the relentless hands-on approach, suggesting founders must stay deeply involved in every facet of their business. I have a different POV—clinging to every detail may choke your company’s potential and prevent your team from evolving into capable decision-makers. In the early days of Magento, I was committed to ensuring the product met my vision. While I wasn’t coding, I was heavily involved in refining and guiding the direction. As we grew, it became clear that holding onto every detail was slowing us down. When I trusted my team to lead, make decisions, and solve problems creatively, everything changed. Stepping back allowed the team to thrive and the product to excel. Graham implies that only founders are invested enough to make the right decisions. But here’s the thing: founders who micromanage because they don’t trust their team are bottlenecks. Many great decisions at Magento didn’t come from me—they came from empowering our engineers and product leaders to solve problems and be creative. In many cases, I got out of the way, and it worked. Yes, founders must be hands-on early on. Their vision, passion, and deep understanding of the problem they’re solving are invaluable in shaping the direction. But if you’re still overseeing every detail years later, you’re not fostering growth—you’re bottlenecking progress and holding back your team’s ability to step up. True scale happens when you trust your team to carry the vision forward and make decisions independently. (in the photo, the empowered core development team, ~2006) Do you think founders should empower teams as the company scales, or stay hands-on?

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Listening to 🌻 Laura Beales chat with Alastair Barlow FCCA on the flinder podcast, speaking about: - Creating a respected brand in business - The importance of adaptability - Prioritising advice over money - Understanding strategic drivers in a two-sided marketplace model #podcast #startup #londonstartup #marketplace #seedtosuccess

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Introducing Furnitured.co.uk a London-based platform built to empower UK businesses with cutting-edge solutions for the buying and selling of new and pre-owned furniture. Our platform connects individuals across the UK, providing an easy, sustainable way to discover and share quality furniture. 🌟 Community-Driven Marketplace: Furnitured enables smooth, trusted transactions between buyers and sellers, creating a vibrant marketplace where furniture finds a second life. 💼 Effortless Listing & Discovery: Our platform simplifies the listing process, making it easy for users to upload and browse furniture, bringing unique pieces to a wider audience. 🌱 Sustainability at Heart: With Furnitured, we're not just connecting buyers and sellers; we’re encouraging sustainable choices by extending the life of furniture. 📈 Seamless User Experience: Designed with both ease and efficiency in mind, Furnitured offers a straightforward, intuitive interface, making buying and selling furniture effortless for everyone. Join us as we transform the way furniture is traded, bringing convenience and sustainability together. Follow us for updates on this exciting journey!

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2024 is no better than 2023. UK Tech investment landscape surely can't get any gloomier than this, could it? Up to date data from https://deallite.uk Please note we only cover UK Tech Companies. #techinvestment #venturecapital #vc #privateequity #equityinvestment #equity #tech #uktech #techcelerate #deallite #deals #techdeals #funding #techfunding #investment #seed #seriesA #preseed #growthcapital

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As we wind down the year, let us take stock of what is happening in the UK tech investment landscape. Deal Lite just reported the weekly stats. If you have not received it in your inbox, please subscribe at https://lnkd.in/efmz5xBP UK Tech Investment News by Deal Lite - Week 337 A total of £200 Million was raised by 21 UK technology companies during the period ending 8th December 2024. Total raised this year so far is: £9.069 billion. Last year, it was £9.749 billion. 2021 was the mega year with £21.292 billion. Would 2025 be the turnaround year? With Syria falling and the conflicts accelerate, no one can predict the future. One thing is sure though. There would be more investment going into DefenceTech as alluded by Steve Blank - Steve is calling for private sector to get involved. I prefer no wars altogether but humans are complex beings who cannot live in harmony. Let's take a quick look at some of the companies who announced investment rounds last week: - Wexler raised £1.1 million Pre-Seed round led by Myriad Venture Partners. Wexler is incubated by Entrepreneur First. Gregory Mostyn is the CEO. - Jove Insurance raised £3.6 million Seed round led by Explorer. Want access to data? Subscribe https://lnkd.in/dcBH9kx Join us on 18th https://lu.ma/5se8gmqs to learn more and meet other tech founders. #DealLite #TechInvestment #funding #investment #venturecapital #seed #seriesA #preseed

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VivaTech was a lot of fun. 3 days 80k steps 450 business cards handed out (thanks to Zoe Robson and Licia Graves and Twist Print) A lot of people in France and around the world now aware of shipshape.vc What does this mean? Possibly hundreds of funding rounds sped up with free investment research from shipshape.vc also great to spend a bit of time with old friends and new... also got to love the French having a steak frites place at a startup conference! #capitalraising #startups #fundraising #founders #venturecapital #investors #vc #vcfunding #technology #startup #tech

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I do love talking to founders about the cost of equity. This summary says it all and this calculator customises it. All types of capital should be considered for different purposes at different times. Enjoy this tool

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SwimAbility.co.uk is now available for sale through Sedo.com. This is a premium domain name that encapsulates the essence of #swimming and aquatic activities. This domain is not just a web address; it’s a brandable asset that can elevate your business in the swimming industry. Why Choose SwimAbility.co.uk? Memorable and Brandable: The name “SwimAbility” is catchy, easy to remember, and directly relates to swimming and #wateractivities. It evokes a sense of skill and capability in swimming, making it perfect for businesses focused on #swim lessons, #aquaticfitness, or #watersports. Targeted Audience: With an increasing number of individuals seeking swimming lessons and aquatic #fitness programs, this domain positions you perfectly to attract parents looking for swim classes for their children or adults interested in improving their swimming skills. SEO-Friendly: The inclusion of “swim” in the domain name enhances its search engine optimization (SEO) potential. This means that your website will have a better chance of ranking higher in search results related to swimming, thereby driving more traffic to your site. Versatile Applications: Whether you are starting a #swimschool, launching an online store selling swim gear, or creating content around aquatic fitness, SwimAbility.co.uk provides the flexibility needed for various business models within the swimming niche. Professional Image: Owning a .co.uk domain adds credibility to your business. It signals professionalism and trustworthiness to potential customers who are searching for reliable services or products related to swimming. This domain not only represents your passion for swimming but also serves as a powerful tool for building your brand in the aquatic industry. Don’t let this chance slip away. #swimability #domains

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🚀 Always Banging the Drum – But for Good Reason! 🥁💥 I know I’m always banging the drum about the incredible deal flow we’re seeing on DealDirect, but with 170+ off-market deals added in 12 weeks, I think we have pretty good reason! We’ve got some exceptional opportunities coming through, including: ✅ A highly profitable global PE Backed firm looking for acquisitions between £1m and £750m revenue bands with EBITDAs of any size to £nine figures. ✅ A hgh £six figure EBITDA Accounting Firm for sale - exclusively with DealDirect. Also interested to interact with legal firms and/or M&A firms who can support a exit process. ✅ Clinical business with £3.6m revenue looking for a significant raise to speed up expansion The list goes on...... To arrange a call, contact myself or one of the team. #dealflow #M&A #offmarketdeals #offmarket #professionalservices #Virtualnonexecs

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When Babylon Health failed, it was a shock to the UK startup industry. James Pringle and I spoke to Ali Parsa, the founder, back when things seemed to be going great and it makes for an interesting listen knowing what we now know. Ali is clearly an extraordinary entrepreneur who built Babylon into a big business and could’ve made it all the way had the capital kept flowing in 2022. I was sad when it failed. The NHS will ultimately be saved/disrupted/replaced by private companies starting at the edges of healthcare rather than from within. It’s just too big an organisation with too many stakeholder complexities for that to happen. Babylon was one company that could’ve continued to have a HUGE impact on our healthcare system. We covered so many interesting areas in this conversation, including: Entrepreneurship as a process of creativity How the healthcare industry is resistant to change and disruption due to vested interests and the influence of powerful stakeholders. Private sector involvement in healthcare can bring innovation and improve the quality of care. Technology and data have the potential to revolutionise healthcare by making it more accessible, affordable, and preventive. When fundraising, it is important to raise as little money as possible and be disciplined in financial management 🤔❗ Making decisions, even strategic ones, should not be overly time-consuming or fear-driven. Experimentation and adaptability are key. Learning and valuing human stories are essential for personal and professional growth. The future of healthcare lies in personalised, preventive care that utilises data and technology to intervene ahead of time. Well worth a listen below on Riding Unicorns ⤵

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What lies ahead: state of play for global VC Following a tough period with slashed valuations and fundraising hurdles, is the market showing signs of recovery? Will companies raise down rounds to avoid shutting down or are they not there yet? Has the pendulum swung too far towards the bigger managers with track records, and how can small and emerging GPs access capital in this environment? https://lnkd.in/gJFy8ME8

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From 0 to $4M ARR in just 10 months.  No shortcuts, just relentless hustle & 10 lessons that I swear by. From our first sale to selling hundreds of units, Seeing MAGIC AI on mega platforms from Selfridges to BBC,  We’re getting closer to the dream of democratising PT for all. But along the way, I’ve gathered 10 raw & real lessons that defined us: 1/ Sometimes, less is more. 2/ Data without context? Just noise. 3/ Embrace the messiness of growth. 4/ Ideas are cheap; execution is everything. 5/ Surround yourself with doers, not talkers. 6/ Trust your gut, but always back it up with data. 7/ Your brand is your reputation—guard it fiercely. 8/ Building a startup? Personal growth is unmatchable. 9/ Be prepared to pivot, but never lose sight of your core. 10/ Product-market fit isn’t static—keep refining, the market always evolves. -------------- From my parent’s basement to becoming  World’s No.1 AI Personal Training company … Here’s to making fitness accessible to all. Exciting times ahead! Grateful for all the love ❤ P.S. What would you add to this list? Share your biggest lesson👇 #ukfounder #AI #fitness

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