Andrew Roth

What is pre-seed funding and why is it near impossible to secure? I am mentoring several ventures. They all ask the same thing. “Where can I get capital since I have NO REVENUE?” Pre-seed, or “family and friends” funding, is the initial step toward getting enough capital to develop a product. Since pre-seed money is the earliest part of the fundraising journey, few startups manage to secure capital at this stage. Most entrepreneurs in this situation have yet to get a product to market and may not even have a prototype. Convincing pre-seed investors to bet their hard-earned money on an idea that hasn’t been fully completed yet can be tough. But why is it so hard if since so many people want to support tomorrow’s future founders? 1) Lack of Customers/Traction: Investors often want to see some evidence that a startup has traction, whether that's in terms of user growth, revenue, or other metrics. Early-stage companies might not have these metrics yet. 2) Unclear Business Model: Startups might still be refining their business model or value proposition. Investors need to see a clear and compelling plan for how the business will make money- margins, rate of growth,… how will you get there. 3) Team and Execution: Investors are betting not just on the idea, but on the team’s ability to execute. A strong, experienced team can help mitigate some of the risks. Who is on your team? 4) Market Potential: Investors want to see a large, addressable market. If the market size is perceived as too small, it can be harder to secure funding. 5) Competition: Is your venture a stand out? I contend many founders I work with are thinking about their venture but not applying the details and the discipline needed to fully lean in and get their venture going. Show me your obsessive dedication to acquiring customers and I contend you might see pre-seed revenue come your way. 1909 FAU Tech Runway #LeanIn #Innovate TechNexus Venture Collaborative DePaul University

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Who will be the next supply chain consolidator? From 2011 to 2021, XPO scaled up from $70M to $20B, fueled by a combination of organic growth and 18 acquisitions. The model was extremely successful. But the supply chain ecosystem remains extremely fragmented. There is plenty of room for new consolidators to emerge as winners. In the food supply chain software arena, one emerging acquiror is GrubMarket Inc. They have built a network model to help food suppliers automate their relationships with their customers. GrubMarket has acquired over 100 companies to date. They are expecting to exceed $2B in annualized revenue. And they just announced their latest purchase: Butter 🧈, a SaaS platform to automate food distribution. Kudos to Mike Xu, Winston C., and all involved! #logistics #supplychain #consolidation https://lnkd.in/emY4wpsy

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As I wrote earlier, Venture Builder is an attractive new tool for early-stage investment in deeptech startups. Investments in the Venture Company Initiate, which specializes in healthcare, attracted $45 million, a vivid example. If you are considering investing in healthcare startups and would like to learn more about investing in Venture Builder, please email me.

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last train to nyc, all aboard! if you are a founder struggling with your first tech startup, this is ideal for you! join a group of 10 founders co-working for 10 days alongside our team in workshops and mentoring sessions you'll get to talk in private sessions with great founders and investors to get feedback and insights on how to tackle the obstacles ahead

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Meet the founder building a sports startup with 70,000+ followers he gained in less than 1 year. Tanner Maddocks is this week's featured Gen Z Entrepreneur on Gen Z Acts. Tanner's isn't your average college football player. He's the first Division I athlete from his high school and the founder of Athlete Squared, a sports training platform revolutionizing how young athletes train. Athlete Squared first started when Tanner saw the struggles young athletes faced with lack of access to affordable, quality training. In fact, when Tanner was in high school, he trained himself by studying college athletes and mirroring their performance. One thing led to another, and with the support from his teammates, he started building Athlete Squared. Tanner's journey is full of valuable lessons: • Leveraging social media strategically, he built a following of over 70,000 and reaches 2.6 million accounts monthly.    • He secured verbal commitments for $1.5M+ for Athlete Squared and received advice from business titans like Mark Cuban.    • Tanner's relentless in learning, growing, and taking action, continuously refining his business model and adapting to new challenges. "One of the biggest lessons I’ve learned is to keep moving forward, no matter the setbacks. Every failure is an opportunity to learn and grow." - Tanner Hear more about Tanner's story and the valuable tips he shares on leveraging social media for growth and learning to embrace failure to scale, link in the comments below! And thank you to Tanner for trusting me to share his story and journey. This has been one of my favorite conversations, so many valuable lessons and wisdom shared. Grateful to be part of your journey and can't wait to see the heights you reach! 🤙 P.S. Find Tanner's story inspiring? Share this with your network ♻️ One simple share is all it takes to inspire a young entrepreneur to take their first step! 👀 Do you know a Gen Z Entrepreneur we should feature on Gen Z Acts? Tag them below or email me at [email protected] to be featured!

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$56M in funding for female founders, Mormon moms, and the best in beauty – my top consumer stories this week: ♡ Women’s Health & Beauty ♡ - Seen raises $9M Series A - Helaina raises $45M Series B to bring human lactoferrin to market - Allure announces the Best of Beauty 2024 winners - Elle's September beauty launches they’re obsessed with ♡ Media, Entertainment & Creator ♡ - Zuck makes WhatsApp Meta’s crown jewel -LinkedIn ranks #1 as the most important social platform for CEOs - Eva, an entertainment booking platform, raises $2M and expands to more cities ♡ E-Commerce, Retail & Social ♡ - 'Mormon Wives’ Puts Momfluencers’ Selling Power in the Spotlight - BoF introduces the BoF 500 Class of 2024 ♡ Tech, Business, & Investing ♡ - VC has a sexual harassment problem. One woman has a plan to change it - LinkedIn reveals the top startups of 2024 in the US - KPMG shares their Q2 2024 M&A Trends in consumer and retail report - Millionaires can afford their dream homes. They’re renting instead You can read more in this week's issue of ICYMI: https://lnkd.in/gE9aRWwp #consumernews #litrendingtopics

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🚀 AlleyCorp Closes $250M Fund to Fuel Tech Innovation in NYC and Beyond🗽 🌟 Founded by NYC internet entrepreneur Kevin Ryan, AlleyCorp incubates and invests in transformative companies across diverse verticals including Diversified Technology, Healthcare, Robotics, and Impact. 💡💰 🤝 The fund, backed by a select group of LPs, supports AlleyCorp's mission to originate ideas, hire teams, provide initial funding, and maintain integral leadership throughout the company’s lifecycle. 🌱🔍 💼 With about 20–30 new investments and 5–8 incubations per year, AlleyCorp has a track record of nurturing early-stage tech pioneers. 📈🌐 🦄 Notable investments include MongoDB (NASDAQ: MDB), Business Insider, Gilt Groupe, Zola, and Nomad Health, shaping the landscape of tech innovation in NYC. 🌆🌟 🔬 AlleyCorp also announces the incubation of Radical AI, pioneering AI-driven materials design, and Conduce Health, revolutionizing access to personalized healthcare specialists. 💻🏥 ✅ Looking to raise capital for your #fund and increase the international pool of your LP #investors?   🤝 Need warm #LP introductions?   📝 Selling #secondaries to increase liquidity?   🧐 Looking for co-investments?   ▶ G+QUANT's link for inquiries and fund decks: https://lnkd.in/gjC_EuTE #VentureCapital #TechInnovation #NYCTech #StartupInvestment #Incubation #AlleyCorp #ImpactInvesting #HealthTech #AI #Robotics #DiversifiedTechnology #InvestmentStrategy

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The entrepreneurial journey is one of grit, passion, and unwavering belief. I'm truly excited about what Raj Shekhar Singh, Jyotika Gupta , and Sudarshan Ravi Jha are building with z21 Ventures. Their vision resonates deeply with me. As a founder, I know firsthand the rollercoaster of highs and lows that come with building something from the ground up. It's a path that tests you in ways you never imagined, but it's also incredibly rewarding. We've been fortunate to have exceptional investors like Sumir Chadha and WestBridge Capital in our corner. Their support went beyond just capital - they've stood by us through our triumphs and, more importantly, our setbacks. That kind of belief in your vision is invaluable. I'm hopeful and confident that Raj, Jyotika, and Sudarshan will create similar transformative experiences for a new generation of purposeful founders. They understand that true innovation often comes from those daring to challenge the status quo, those driven by a desire to make a real impact. To all the founders out there: Your journey may be hard, but it's worth it. Stay true to your purpose, embrace the challenges, and remember that your ideas have the power to make meaningful change in the world. With supporters like z21 Ventures backing you, there's no limit to what you can achieve. Let's build a future where innovation thrives and where purposeful entrepreneurship creates lasting positive change. The road ahead may be tough, but with determination and the right support, anything is possible.

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Someone broke down the estimated costs of a $15 Sweetgreen salad. We need these cost graphics for digital health to help future founders. Especially for tech enabled cos, the greatest cost is labor. Much of the "value created" is in curation and matching, which means the gross margins are reliant on labor arbitrage. Pay someone $X, but get paid $X+Y% per visit. The challenge with healthcare is that you often have to pick one of two business models: 1. specialized, low volume, high cost, low gross margin % 2. generalized, high volume, low cost, high gross margin % I'd argue founders should focus on gross dollars over the lifetime of the customer (like Jeff Bezos said) instead of gross margin %'s, but we'll leave that for another time. The challenge is that many tech enabled digital health cos have high cost of goods sold (labor) and moderately high product, design, and engineering budgets. We must build differentiated solutions for patients, clinicians, and clients to be out incumbents, however, we're realizing that companies are ultimately valued on the discounted value of future cash flows. And the high SG&A costs at most organizations might be inbalanced to the unit economics of the business. I'm not sure the math pencils out for everyone unfortunately. But I'm just a guy on the internet, would love to hear the thoughts from those smarter than I (you!). Comment below. --- p.s. I have no idea the accuracy of the graphic and not an investor in Sweetgreen. Cheers. Credit: David Crowther

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Looking beyond #VC funding for your #startup? Aakash Shah of Wyndly (YC W21) reveals how he built a multi-million dollar #healthtech company using creative capital strategies. Learn how he leveraged Y Combinator's network and alternative funding methods to revolutionize allergy treatment. In case you missed it, you can watch the #FundraisingDemystified #podcast here: https://lnkd.in/eZT63YS4

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After the first deep dive discussion w/ founders I often hear a comment "I wish I had heard about this alternative [to all-in must-become-a-unicorn] way to build a startup earlier as I have wasted years in pursuing the wrong thing". Our mission is that no founder would ever need to say that again as it is such a waste. Us preaching the gospel 1:1 just doesn't scale, hence we use mass media to multiply our efforts - that's how Gorillacast came to be. The 1st episode is out, featuring yours truly. "How can you know what food you like unless you taste everything" said a chef. How can founders make informed choices about the best strategy for them to follow unless they know of all alternatives? This might not be of interest to you but pls spread the word so that the founders who should hear it can find it. I have a dream!

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In just 13 years, John Sampogna scaled his agency to 75+ FTEs and partnered with global giants like Google, Nike, and The New York Times - all without raising a single dollar in external funding. Since co-founding Wondersauce in 2011, he and his team have gone from serving one small client to becoming one of the most innovative digital agencies, working with iconic brands like Subway, GOLF.COM and Stella Artois. Today, Wondersauce boasts a reputation as the agency where creativity and business strategy collide. In this episode of Turning Pro Podcast, John opens up about the pivotal decisions and lessons that shaped Wondersauce and his growth as a leader. Here’s what we covered: How to scale strategically without losing your focus. The story behind Wondersauce’s acquisition. The balancing act of leadership, from empowering his team to carving out time for family. What it takes to win big clients. Some key takeaways from the conversation: Scaling isn’t about doing more. It’s about doing better: John explains why doubling down on your core strengths is the key to long-term growth. Acquisitions don’t have to mean losing control: He offers a roadmap for finding a buyer that respects your vision and allows you to keep building. Build a team that grows with your business: John emphasizes the importance of hiring not just for skill, but for alignment with your mission and values. Don’t overlook work-life balance: For John, a healthy, sustainable career is one where your work fuels, not drains, your personal life. Catch the full episode: YouTube: https://lnkd.in/eQNPq9mD Spotify: https://lnkd.in/eVSBJ3wQ Apple: https://lnkd.in/euQcnNBd If you’re not already subscribed to Turning Pro Podcast, now’s the time.

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🚨 NEW ASOM Pod Alert: Halloween Edition! 🎃 “Why Startups Are Failing Faster Than Ever Before” - EP21 A banana, a pineapple, a grape, and a watermelon walk into a hotel room to shoot a podcast… No, this isn’t a bad fruit salad joke—it’s our spookiest episode yet! 👻 Startup nightmares are real, and we’re peeling back the ghostly layers of why so many founders are hitting bumps harder than a zombie hitting a brick wall. 🕷️ What’s creeping around in this episode? ✔️ Why “authentic marketing” isn’t just a buzzword but the secret sauce to making sure your customers don’t ghost you. ✔️ Budget basics that will scare the poor money management right out of you—because financial literacy is as crucial as garlic to a vampire. ✔️ Product-market fit and staying adaptable: like knowing when to run from the haunted house…or pivot in business. ✔️ Why internal strategies beat hiring agencies—because only you know where the skeletons are buried. ✔️ Making those bone-chilling, tough decisions to keep profits up and your startup’s heart still beating. ✔️ How staying close to your customers can turn you into a mind reader (or at least a very good guesser). ✔️ A sneak peek into the ultimate showdown: funding vs. bootstrapping. Trick or treat, am I right? Get ready for some real founder vibes, a cauldron full of actionable tips, and stories scarier than a werewolf on your doorstep. So grab your pumpkin spice latte (or potion of choice) and tune in below! 👇 Amer G., Jimmy Kim, John Roman, and I give some insanely 🌶️🔥 takes during this one…

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Create Health Ventures Launches Inaugural $21M Fund for Early-Stage Digital Health Startups  Create Health Ventures, a venture capital firm focused on early-stage digital health companies, has closed its debut fund, raising $21 million, surpassing its initial target. Launched in 2024, Create Health Ventures is based in Austin, TX, and Chicago, IL. The firm focuses on technologies that enhance healthcare access, improve patient experiences, and deliver value across payers, providers, and pharmaceutical companies. *Its primary focus includes:   1. Payer-Facing Technologies: Solutions that improve member experiences, enable seamless data and workflow integration, and scale technology across geographies.   2. Clinical Trial Enablement: Tools to help pharmaceutical companies recruit and retain participants for late-stage clinical trials as demand increases. *Founders and Approach:   Create Health Ventures was co-founded by Emma Cartmell and Amit Aysola, healthcare veterans with over 45 years of combined experience. They bring operational expertise, regulatory insight, and an extensive network to portfolio companies. The firm exclusively invests in startups led by healthcare industry founders, leveraging its unique value-added platform for scaling businesses.  *The platform includes: - Business development support   - Access to executive coaches   - Connections to healthcare leaders   - Cross-selling opportunities among portfolio companies  *Key Quotes by GPs:  - Emma Cartmell: “Founders from the healthcare industry understand the challenges and opportunities to improve patient outcomes. Supporting them is the most impactful way we can positively transform healthcare.”   - Amit Aysola: “Payers and pharmaceutical companies are driving demand for connected, scalable solutions, and we are investing in companies to meet these needs.”  *Investments and Impact:  The firm has made five investments so far and partners with foundations, impact investors, and strategic healthcare veterans to mentor portfolio companies.  *Portfolio CEO Feedback:   - Dr. Chip Grant (Watershed Health): “Create Health Ventures has been invaluable in scaling operations and fundraising.”   - Shara Cohen (Carallel): “They are the most collaborative and active investor team I’ve worked with.”   - Neil Batlivala (Pair Team): “They’ve helped us manage growth and reach underserved communities.” If you are experiencing difficulties in raising fresh capital and would require warm introductions to new LPs, contact G+QUANT     ▶ Please use G+QUANT's link for inquiries and fund decks, or send your inquiry directly to [email protected] #VentureCapital #DigitalHealth #HealthcareInnovation #Startups #ClinicalTrials #PatientCare #HealthTech #HealthEquity #CreateHealthVentures

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🚨 Rant incoming 🚨 Lately, I've been searching for Founder groups to join—specifically ones that could help guide us at Thigh Society as we scale thoughtfully. A recommendation for <𝘯𝘢𝘮𝘦 𝘳𝘦𝘥𝘢𝘤𝘵𝘦𝘥> popped up, which claims to focus on scaling 7-figure brands to 8 figures. (Though honestly, their $50M brand claims seem... aspirational at best.) While I do think their mentors have valuable expertise worth bookmarking, one glaring issue stood out: they're almost 𝘦𝘯𝘵𝘪𝘳𝘦𝘭𝘺 𝘥𝘶𝘥𝘦𝘴. Two women in the whole bunch of 19? Really?! And it’s not just them. I stumbled upon another mentorship program , and, surprise, it’s another bro fest. They proudly tout their stats—160 seven-figure brands! 16 eight-figure brands!—but where are the women founders being spotlighted on their website? I had to scroll through a carousel of video testimonials to find just 2. It’s infuriating to see Ecommerce feel so much like a boys' club. Are we just invisible? Because I know we’re out here, building amazing brands. At Thigh Society, we’re proudly majority women, and I’ve seen firsthand what happens when women lead, test, innovate, and succeed. And before anyone comes at me—this is NOT about hating on men; it’s about demanding equity and representation in spaces that 𝘴𝘩𝘰𝘶𝘭𝘥 include all of us. So here’s my question for all of you: ✨ Where are the mentorship programs and networks that support 𝘸𝘰𝘮𝘦𝘯 𝘧𝘰𝘶𝘯𝘥𝘦𝘳𝘴 going from 7 to 8 to 9 figures? ✨ Who are the experts out there elevating women-led brands? ✨ What communities are you part of that celebrate diverse leadership? Maybe I need to start my own program. 😤 How's that for entrepreneurial spirit?!

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Congratulations to Roland Reynolds and the team at Industry Ventures on the raise of its latest $900M hybrid fund (split three ways, 40% backing VC funds, 40% directly investing in promising Series B startups from their existing partnerships, and 20% acquiring stakes in emerging investment firms from other LPs looking to exit). Read more from Marina Temkin, CFA at TechCrunch below. #VC #venturecapital #fundraising #startups #investing #news #technews #startupnews

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🌟 I don’t often say this, but I’m genuinely humbled – and here’s why. 🌟 Tomorrow evening, we have the honor of welcoming Dr. Neetu Johnson M.D.🧠🩺 , an accomplished UK-based Medical Doctor, Consultant Psychiatrist, and Founder of PrescribeLife, for an incredible session on Startup Resilience. ✅ With her unique perspective as both a mental health expert and a startup founder we will share invaluable insights on navigating the highs and lows of the founder journey. ➡️ In this session, you’ll uncover your unique founder type—whether you’re an Innovator, Hustler, Visionary, or more—and learn how to align your personal and business values. This foundation is key to sustainable growth and avoiding burnout by staying grounded in what truly matters to you. Whether you’re looking to build resilience or simply want to learn from one of the best, this is for you. 🌟 Join us, bring your questions and build an authentic path to startup success. Link in the comments below 👇 For the ❤️ of Startups

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Episode #9: Jim Kolchin, Founder of iWallet 🎙️ Hi friends, this is Victor from R136 Ventures! In episode #9 of our "Ventures from Valley" podcast series, I was joined by Jim Kolchin (https://lnkd.in/dsqaxJyA), founder of iWallet (https://iwallet.com/). https://lnkd.in/ddmQxhZ5 From a Soviet childhood to Silicon Valley, Jim’s entrepreneurial journey is as fascinating as it is informative. He shares his path from building hardware, scaling a bootstrapped SaaS empire, and pivoting toward sustainable business growth – all without outside funding. Listen on Spotify, YouTube or Apple Podcasts In this episode, they discussed: - Building on a Budget: The path to bootstrapping iWallet to multimillion-dollar revenue - The Power of Pivoting: Why Jim moved away from hardware and what he learned about scalability and margins. - Staying Default Alive: Jim’s thoughts on scaling sustainably and keeping options open - Attracting the Right Investors: Tips on selecting investors who bring more than just capital - If you enjoyed this episode, make sure to subscribe. For more relevant VC content from "the Valley", follow us on X and LinkedIn. Stay tuned!

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Graduating from Innosphere Ventures doesn’t guarantee success - you need to actively practice and build on the insights you gain here. We see a difference. Founders who disconnect from the community or don’t apply the lessons they’ve learned often struggle to pitch their ideas or gain traction on their own. Founders who keep that work relevant, continue to apply lessons learned, and go on to develop it further, tend to find more opportunities. Success comes from staying engaged with your network, revisiting the coaching you received, and applying those principles in the real world as you navigate the ups and downs of your entrepreneurial journey. We’re called an incubator for a reason - when you leave, your journey is just beginning. The next step is pressure-testing what you’ve learned and making the right adjustments. And remember, we’ll still be here to help. Stay disciplined, stay connected, and keep applying what you’ve learned. That’s the real key to moving forward.

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