Sahil Patwa

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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Last week we announced our investment in Cava from Early Spring and I got hit with a bunch of queries. What kind of fund, investment thesis, cheque size...So here goes, a ready reckoner on what Early Spring is and what we do. Early Spring is a ~300 cr INR early stage consumer fund that aims to invest in seed to pre-series A companies writing cheques between 5 to 15 cr. We invest behind brands and aim to help the founders by offering our marketing and brand building expertise along with capital. We have raised almost all our money from what I choose to call Intellectual Capital - companies and individuals with deep expertise in the consumer space - strategics including Godrej Consumer, Cipla, Manipal Group; Domain experts like Matrix Bay Celebrity Management, Netcore; Individuals including Arihant Patni, Amrish Rau, Murugavel Janakiraman, Abhay Pandey and VT Bharadwaj. We started investing after our first close of 210 cr and we are currently in the process of raising the balance for a final close sometime this year. In another 2 months, we will have a portfolio of 6 brands - watch this space for more announcements :-) If you made it this far, here's an interesting statistic. In the last one year, we have met/evaluated 200+ companies and this is how they break out in terms of core categories. Spring Marketing Capital Arun Iyer Vineet Gupta Kaushik Dasgupta Antara Raychaudhury Vatsal Khullar Anurag Sheth Natasha Dhinda Rohan Talati #EarlySpring #VentureFund #D2C #Consumer #Brands #Founders

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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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Founder to VC transition as a mother of two super active kids has been an incredibly amazing journey for me. Has it been demanding? Yes. But it’s been equally rewarding in terms of learnings, growth and new fun challenges. Thus, thought I would share my experiences and insights on balancing these dual roles and what I've learned along the way. .. First up, managing time effectively has been crucial. Balancing investor meetings, due diligence processes, and strategic discussions with school runs, homework help, and playtime requires meticulous planning and prioritization. I've learned to be present in the moment, whether I’m at a pitch meeting or attending my kids’ PTMs. .. Also, raising young kids, especially a teenager and a young child, teaches you patience and empathy. Especially because children are unpredictable. But, so is the startup world. The ability to adapt quickly to changing circumstances has been a valuable skill in both my personal and professional life. Flexibility and resilience are key to navigating the ups and downs of both parenting and investing. Thus, as they say, I’m exploiting synergies :) .. But, most important thing of all? Setting clear boundaries and priorities. Knowing when to step back from work to focus on family and vice versa ensures that neither role suffers. This balance is a continuous process and requires constant adjustment. And here, having a strong support system has been invaluable. My husband, family, and a network of supportive friends have played a critical role in helping me manage my responsibilities. .. However, my biggest motivation has been my kids. Being a role model for my children is important to me. Demonstrating that it’s possible to pursue a demanding career while being there for them sends a powerful message. It’s about showing them the value of hard work, dedication, and the importance of pursuing one’s passions. .. No doubt, there’s immense joy in watching my daughter navigate her teenage years and my son’s boundless energy. Similarly, there’s a unique satisfaction in helping startups grow and succeed. Embracing and finding joy in both aspects of my life has been incredibly fulfilling. And, the transition from founder to VC has been a transformative journey, enriched by my role as a mother. .. All of that said, we at Dexter Ventures ($50k-$500k early-stage investments) and Dexter Capital Advisors (advise $3MM-$100MM) are always eager to work with like-minded founders, angels and other members of the PE/VC/Family Office ecosystem. Do reach out to us at deals@dexter[dot]ventures keeping anuradha@dexter[dot]ventures in CC if there is anything we can help you with :) Best, Anuradha Tags: Devendra, Jayant

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Recently I read an announcement by General Catalyst that it raised it's Fund XII of $8Bn out of which it will utilse $4.5Bn for core seed and growth equity, $1.5Bn for Creation strategy, and $2Bn of separately managed accounts💲💸 For me, that's a massive fund raise by a VC by any standard! That triggered my curiosity and I went through it's website and other news items and it was an eye opener 👀🧐 for me! Typically a VC firm raises capital 💲to invest in selected companies and hold long and support them through networking and mentoring and grow! But General Catalyst is not a conventional VC firm and rewriting how VC firms would do business in future 💡! It has multi-stage & multi-strategy thesis with 3 different strategies 'Create', 'Hatch' and 'Transform'. For each strategy, it raises money from different set of LPs as risks and rewards for each strategy are different. For me, the most interesting strategy of it's is 'Transform'. Transform is nothing but a "Venture Buyout” model under which it acquires a company and add technology to bring efficiency and value. We have seen many PE led Buyouts but probably GC is the one as a VC fund doing it for the first time. GC believes that 'the traditional VC model does not best position founders to transform industries. Transformations require ecosystems of companies to work together with uncommon collaboration'. GC has recently acquired Venture Highway in India and hope some of its practices and model will come to Indian markets as well very soon. #venturecapital #investing #funding #Buyout #investments

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Balderton's €1.3bn raise for European startups sparks debate: Does a bigger VC fund lead to better outcomes? First, consider: 💲 Larger rounds demand bigger funds, but returns get harder at scale 💲 $100M fund needs $1bn exit at 10% ownership for a single 1x return 💲 Most early-stage VCs target 3x returns, investing in 30+ companies 💲Management fees (typically 2%) grow with fund size Plus, the current landscape: Giants like Balderton, Index, and Accel are raising massive funds, while smaller firms stick to sub-$200M and focus on early-stage startups. Many VCs have maintained their previous fund sizes, while others are downsizing or struggling to raise new funds (or even returning un-invested capital to investors, as CRV recently announced they will do). Thus, weigh up the trade-offs: Larger funds (≥$500M): 📈 More firepower, full-cycle support 📉 Risk: Pressure to deploy capital, potentially lower returns Smaller funds (≤$200M): 🔍Agility, focused support, higher potential multiples ❌ Limited late-stage participation The future of European VC may not be one-size-fits-all. As the ecosystem matures, perhaps there's room for both Davids and Goliaths. What's your take? Would you bet on a nimble $150M fund or the muscle of a €1B+ vehicle? Source: Sifted #EuropeanVC #FundStrategy #StartupInvesting PS 🔔 Follow me for strategies and resources for startups and VCs! There's a better, streamlined way to raise capital: 💸https://foundersuite.com/ for startups 💸https://fundingstack.com/ for VCs and investors

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We’re facing a deluge of ecommerce enabler startups, and honestly, I don’t quite know why. I’d like to figure out if there is a bigger trend at play here, and also see as many more companies as possible in this space to help develop a thesis. So if you have any gyaan to dispense, please share your thoughts here or DM me (and we can setup a call thereafter if needed). And if you are a founder in this space/ know somebody who is building in this space, please write to/ refer them to [email protected] Dilsher Dhupia Pranav Sanghvi Tanuj Saraf Merak Ventures

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SaaS is a hotbed of opportunities for founders and investors to create disproportionate returns on capital. Amidst this growing landscape of Indian SaaS startups, a critical component often gets shadowed by the immediate goals of growth and market capture — the exit strategy. Accounting for exit outcomes over the longer term should start early so founders can optimize for the success of themselves, their employees and their investors. We at Matrix Partners India spent some time speaking with founders, corp dev professionals, investment bankers and other leaders in the space to understand the exit scenarios including M&As, PE acquisitions and IPOs (India and US) and have compiled our learnings. Link to the article in comments. Would love to hear from you if you have insights on the topic / further questions :) Avnish | Ashwin | Pranay | Vikram #SaaS #IPO #ExitStrategy

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Many seed funds aim to recycle 20-30% of their capital, but is this realistic? 👉 Recycling depends heavily on exit timing 👉 Seed fund exits often occur in years 6-8 👉 By then, initial deals may be complete We discussed about capital deployment and reserve planning in our latest masterclass with Anubhav Srivastava, founder of Tactyc. Join the EUVC community to access the full masterclass and get early access to the next live masterclass on this topic! 👉 https://buff.ly/47DMqKd #EUVCcommunity #EUVCmasterclass #venturecapital #portfoliomanagement #capitaldeployment

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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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It's been a year since I began exploring a career in venture capital (VC). Initially, I talked to people outside the industry, which didn't lead me anywhere. However, I soon started building meaningful connections with those who've successfully navigated this path. I made an invaluable connection with Maulik Mehta, a Senior Associate at Arc Ventures in New York. With his extensive experience in VC and a genuine passion for supporting innovative startups, Maulik has been a dynamic friend and mentor, guiding me with insights and advice on breaking into the VC world. This interview discusses how to break into the venture capital industry. We talk about what makes you stand out, share tips for getting started, and highlight the importance of internships. We address common challenges and offer advice for overcoming them, especially for those from non-traditional backgrounds. We explore the skills VC firms look for and the role of mentorship. We also touch on emerging trends in VC and share valuable lessons learned. Give it a listen; I hope it helps those navigating the VC journey: https://lnkd.in/e8aKTqWJ #venturecapital #careers #vc #startupinvesting

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✨ Chet Kapoor ✨ is quite the Silicon Valley legend. Three-time founder and currently the CEO of DataStax his wisdom for founders is incredibly spot-on ✅ and timeless ⏰ ! In this most recent and probably best-ever episode of The Enterprise GTM podcast, Chet discusses what it takes to build enduring tech companies. Some 🎤 soundbites 🎤 from our conversation: 👩‍🏫 The quality of people influences the outcome of your startup the most. 🔥 You do not need smart people who sit around and pontificate. ☄ Momentum is everything. Never underestimate it. 🌟 Having complete clarity of thought at any given time is very important--who are you doing this for, and how will it change their lives? 🌈 One of the best ways to create a large company is to create a parade or join one. ☝ Know who you are. There's a high likelihood that the company will become more like who you are rather than who you want to be. 🛑 Don't make the mistake of hiring sales execs too soon. Be extra cautious about partnerships. 📣 Tune in to hear about what he has to say about AI startups getting started today, the future of the data layer, the evolving importance of data roles (data science, data engineering), and so much more! #devtool #founder #startup #data #ai https://lnkd.in/gW-58nvE

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Will the premium/differentiated offering for a mass-market brand work? OYO recently launched OYO Townhouse in Indonesia and Dubai. But can OYO reposition itself from a mass-market offering to a mass premium, and/or from catering to individuals/couples to a family offering? For example, Lifebuoy is synonymous with affordability and is purchased for INR10 or so. Now, it would be extremely difficult for Lifebuoy to reposition the brand to a premium version, let's say Lifebuoy Premia, and sell it at INR100 (10x the price). Similarly, it would be difficult for Lifebuoy to convince its audience that a rebranded Lifebuoy (at any price point) will have the same properties as that of Khan Al Saboun (Khan Al Saboun is priced at US$2,800). So, I am surprised that OYO is trying to sell premium (or mass-premium) offerings using the same ubiquitous mass-market brand – OYO. It is a marketing conundrum that would leave even the savviest of brand strategists confused. I am sure that Ritesh and the entire OYO marketing team have better insights to proceed with this. But one can’t help but ponder the rationale behind this unified branding approach. Why do you think OYO has chosen to retain its established brand identity for its foray into the premium segment? Have you seen any other cases where a mass-market brand is able to sell a premium offering? I am also on X: www.x.com/SayanVC and Medial: https://lnkd.in/dJB8mqCR #FounderLife #Entrepreneurship #Startup #VentureCapital #Founders #Investments

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Pl do register for this very interesting session!

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This month marks my 10 year anniversary in Venture, and what a ten years it has been 🎉 🤩 First stop: JamJar Investments Rewind 10 years and you’ll find me sitting at my desk at JamJar, operating under the alias of “Bread”, working my way through an inbox full of 1000 cold inbound pitch decks, reviewing and replying to every single one. Highlights included a hand drawn picture of a new ketchup sachet design with “target market: Nandos” written below it, and a concept for a drink that tasted like the leftover milk at the bottom of a cereal bowl. But there were also some diamonds in the rough, and it was here that I got my first experience of that lightbulb moment when you meet an exceptional founder that you want to back, making my first investment a few months in. JamJar was the best training ground I could have hoped for, and I'm so grateful to Katie Marrache and Adam Balon, Richard Reed & Jonathan Wright for welcoming me into the team. Second stop: Venrex In 2015, I joined Mark & Tom at Venrex alongside Pooja Patel. We clicked as a team immediately, and over the ensuing years launched 7 new funds, grew the portfolio to 180+ companies, built a brilliant team, moved from a small attic in West London to panoramic views in Fitzrovia, and had a lot of fun along the way. As well as the buzz of discovering new founders to back, I also discovered my love for supporting founders post-investment. With 11 board roles and a further 16 portfolio companies to support, the ex-strategy consultant in me had just enough to get my teeth into. Venrex’s people-centric and pragmatic approach to investing chimed with my own instincts about the type of investor I wanted to be. They gave me the most incredible platform to grow as an investor and roll up my sleeves with all of the operational sides of running a venture fund. To the entire Venrex team, new and old, thank you for an amazing chapter. Third stop: Circle & Co In June, I left Venrex to launch my own Venture fund, Circle & Co, which is on track for its first close next month. It's by total chance that this milestone falls on my 10th anniversary in venture, but what an incredible way to kick off the next decade. More details on the fund to follow, but for the moment I want to thank the amazing network of friends, fellow VCs, founders, LPs and family who have got me this far. You are the original Circle, and have been the inspiration & driving force behind this next step. Let's make it a good one.

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Much Ado About Equity Split Have you thought about what equity percentage to give a co-founder you are bringing on to build your idea? Or are you a technical head (CTO) wondering what equity split you should bargain for? What’s the best equity split? Whether you decide on 50/50, 70/30, or even 80/20, it all depends on the mutual agreement between the parties involved. Some questions that can help determine equity split - 📌 Consider the roles and contributions of each party.  📌 Who makes the final decisions on important matters?   📌 Who is bringing in or has brought in the initial capital or resources?  📌 Who will handle the day-to-day operations? 📌 Who is responsible for securing funding and managing investor relations? No matter the agreement reached, each founder should feel that they are being fairly compensated relative to their contributions. Equity splits can be tricky, but with mutual understanding and negotiation, you can find a balance that works for everyone. 💫 Feel free to reach out if you have any questions or need advice on equity splits! #cofounder #equity #startup #CTO #equitysplit

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Nice overview of how we're using data to inform how we invest in early-stage founders. We'll be announcing more this summer but we're seeing some really interesting early data. https://lnkd.in/exU_Juf5

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"Funding Collapse sends investment in start-ups to six year low" The Times today covering the shocking stats that VenturePath uncovered, with our partner Beauhurst. Great quotes from supporters Michael Moore CEO, BVCA and Julian David CEO, techUK. * UK VC funding at Series A is -44% from last year, and worsening * Q3 24 is down a staggering 57% from Q2, itself down from Q1 * 9 in 10 seed funded startups cannot access Series A VC funding, the next 'rung on the funding ladder' * Just 32 future scaleup companies across the whole of the UK were able to access their first VC funding round in Q3...a 6 year low * Half a billion less capital is going in to UK scaleups at Series A, than just 2 years ago! As the UK scaleup funding gap widens, we are losing ground against other countries, at both startup stage (a position the UK worked hard to achieve, since 2011), and for scaleup support. OECD data: 13th in the world for scaleup support, and that's before Series A funding access dried up. I get that its confusing. Another report (BBB, Nations & Regions) released this week spoke of positive trends in private investment, stating "The data for Q2 2024 shows that investment value has continued to grow". Great, I love to see optimistic data. But under analysis that bundles venture with private equity (later stage), where a few megadeals skew the numbers. Otherwise the exact opposite is true. Our independent research here, for the UK ScaleUp Investment Mission, is laser beam focussed on Series A. The funding round where companies move from the c.1m startups launched each year, through the 2,179 that access seed funding, into the rarefied category of being recognised as future scaleups, attracting Series A funding (£2-10m). The UK venture landscape is currently funding just 248 pa of these companies, and declining. We've been sharing this urgent call for support with the new Government since the day after the election. I've personally met with several Ministers, and spoke to all the relevant Government departments. I will shamelessly repeat loudly what is at stake. UK scaleup funding at Series A has nearly halved in a year, and continues to decline steeply, more than halving in the last quarter. VenturePath developed The UK ScaleUp Investment Mission to convene the scaleup support ecosystem and £7bn of funders to help address this problem, to improve nationwide access to VC investment, and create more venture-backed successes. We have clear support, clear recommendations to reverse this decline in UK scaleup investment, and have made a clear ask of Government for participation in this, to ensure immediate action is taken to create the conditions for success for UK scaleups, ensuring the focus on growth isn't undermined by lack of capital, or equitable access to it. Government decision makers, we'd love your interest, to progress to action. HM Treasury: Rt Hon Rachel Reeves Spencer Livermore James Murray & CC Poppy Gustafsson (welcome to the debate).

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Two of my favourite things. VC performance and the Ryder Cup 🇪🇺 IRR as a standalone metric should be taken with a pinch of salt. Here its definitely more relevant on the left hand side than the right. 🤯 BUT. Europe has better ‘performance’ in the last two decades, yet the US seed price premium of 90% is at its highest in ten years. The faces of IPO and M&A activity are strongest in the US, but European Seed seems a great entry point right now. #VC #venturecapital

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