Angela Dalton

LP Tip #8 of #50: Your LP base should match your fund size. We are back with our regular programming. ➡️ Opinions are always my own and based on my experience.  ➡️ My focus for this post is on sub $200.0M funds. ➡️ The $ amounts I state below are guideposts never absolute rules.  ➡️ Some LPs want to have a certain % of the fund and size their investments in this way; others have set check sizes irrespective of fund size. I continue to be surprised at how much time new GPs waste with LPs that are unlikely to invest. I urge managers to better qualify LP leads and be extremely judicious with how they manage their time. In my experience there are 6 LP types that I consistently come across. See below. ▶️ Non- Institutional LPs:  1️⃣ High net worth individuals (HNWI) - There are different tiers of HNWI but assume that this is someone with at least $1.0M in net worth in liquid assets. In my experience they are the fastest to close and conduct limited diligence. I often see them investing $100K - $500K checks in funds. It is possible for a fund manager to close a $5.0M fund on entirely HNWIs. 2️⃣ Family Office - There are different types of family offices. For simplicity sake let us assume that this is a single-family office with an investment team and a set venture allocation. Keep in mind that family offices are hard to find because they do not want to be found. Typically, you find these via referrals from other GPs or your current LPs. I often see <=$50.0M funds composed of HNWI and family office LPs. I have seen a range of investment checks form family offices. 3️⃣ Corporate - I include banks in this category. Due to the market downturn these entities either halted or slowed pacing. In my experience I have seen corporates invest anywhere from $500K - $10.0M checks. This type of LP is often present in sub < $100M funds. ▶️ Institutional LPs:   4️⃣ Fund of Funds (FoFs) - Unlike the other LP types, FoFs need to raise from LPs. I have seen FoFs invest in fund sizes across the spectrum. Depending on the FoF they can invest in funds as small as $15.0M. 5️⃣ Foundations -  These are often investing to align with their mission. I would spend time understanding how you complement their programmatic work. I have seen foundations invest in $45.0M funds and above.  6️⃣ University Endowments - Endowments is where most new GPs waste time. It is important to ask if the university has an emerging manager program upfront. I have seen emerging manager programs invest in small funds ($25.0M - $65.0M). It also helps if the GP was an active alum of the university or had some unique relationship to the university.  If there is no emerging manager program I am often told that there should be a fund target on the low-end of anywhere b/w $150.0M - $200.0M to be considered.

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Thrilled to double down on Bhanu and Layer2 Financial. Their growth is eye-popping and they have integrated stablecoin/fiat technology together in a way that's actually useful. Their APIs are - by far - the most mature in a rapidly emerging SWIFT-killers market. What's not in the press release is maybe the most impressive: - 2022/2023 banking/crypto crises (through no fault of their own) set the difficulty to "hard mode". They lost revenue, customers, upstream partners. Many founders would have wilted or quit. - They buckled down, stayed lean, built incredible product redundancies, and made some killer hires. - The new product foundation enabled them to grow 10x in 9 months. They are now processing *billions* in $ volume (which directly translates to ARR). Truly a case of a great team first surviving and now thriving in a rapidly expanding market.

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Welcome back from Labor Day! Let's make sure we'll all caught up before we make that final end of year push with #DigitalCurrents and Mark Yusko and I breakdown the Tech News on our podcast: https://lnkd.in/erVPBH4c

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Today, we're proud to announce the launch of Flywheel Capital, a new ‘hybrid’ secondaries fund pioneering next generation liquidity for growth-stage #founders, companies and VCs — without the discounts, friction or missed upside. By adapting innovations from the private-equity #secondaries market and re-modelling them for founders and VCs, we're re-designing liquidity #VC and #Growth — improving outcomes for liquidity seekers and bringing a new kind of capital partner to the #VCSecondary market. As we do so, we’re excited and grateful to be anchored by leading fund of funds, Allocator One. We believe that greater liquidity will transform #venture in the same way it has private equity. Despite the immense need among founders, companies and VCs — who need liquidity for everything from managing portfolios and distributions, to buying homes to paying taxes (all eyes on the UK #budget..!) — today creating liquidity is high friction and low satisfaction. From discounted price optics, wide valuation spreads, and opportunity cost gating sales, to high risk and uncertainty dissuading broader investment — these issues restrict the market’s full potential. Through our bespoke hybrid secondary structure, we provide a win-win-win solution — for founders, shareholders and funds seeking fair liquidity, for capital on the sideline seeking risk-managed investment, and for a market that’s ready to get moving. We're on a mission to unlock a new era of liquidity in venture — creating a flywheel effect of more investment, innovation and growth, and our team (Gavin Cunningham Ioannis Gryparis Darren Westlake Komal Sethi) is just getting started. Read more about us in Sifted below, and if you'd like to get in-touch, reach out at [email protected].

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It is the best and worst of times, it is the age of wisdom and foolishness... Transformation is accelerating in Gaming, by many of the disruptive technologies of today: #AI, #web3 tokens, blockchain and on-chain gaming. The latest from Colleen Sullivan at Brevan Howard Digital -

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Big things on the horizon, we are motivated and blessed to be at the dawn of a new age for the internet. Read more about our journey below or listen to the podcast: https://lnkd.in/eJeNhvVa

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2025 will be the year we get real crypto M&A On the seller side, there are dozens of Series A-D companies with proprietary tech and good ARR but too small to go public. They raised at huge valuations in 2021 and are nearing the end of their runway so 2025 will be the year they're forced to raise a downround or sell. Many of those founders started in 2017 so I'd guess they exit if given the opportunity instead of endure max pain of a downround. On the buyer side every financial institution and tech company will need a crypto strategy. This doesn't mean go launch some silly NFTs like 2022. It means a real build vs. buy conversation about owning core crypto technology. Stripe's $1.1b acquisition of Bridge has officially opened the M&A floodgates.

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Today’s Startup Solution is all about private company shareholder voting rights -- when and how they can be set and why they should matter so much to you, in The Case of the Shareholder Shenanigans: https://lnkd.in/gTpG79y4

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Coming soon on Aug 1: "Transformation to a Fresh Tomorrow." This is theme of our 3rd Annual Web3 Investor Day, as we welcome the innovators and investors convening in Chicago for these discussions around the next generation Internet. Our theme reflects the optimism, determination and commitment investors and innovators have solidified off the depths of the bear markets to drive success in the bull markets. Broader investor optimism suggests that fresh institutional funds into Web3 across both tokens and equity may endure.  Across adoption metrics, customer interest and developer activity, Web3 seems to have normalized. It’s refreshing to see the transformation and next evolution of Web3 and it’s refreshing to meet many of you on August 1.  And yet, even with the improved optimism from last year, there still remain open questions in the development and adoption of our next generation Internet:  1. the balance of speculative versus productive investor capital in this current cycle 2. the productive role of liquid trading capital in fostering Web3 innovation 3. the attractiveness of venture investments in follow on financings 4. the role of policy and regulation that may enhance innovation 5. the continued developer activity to improve the underlying infrastructure 6. other Web3 recovery characteristics in target customer use cases. We remain committed to navigating regulatory shifts, fostering investor optimism, and building the customer use cases for Web3.  Physical spaces enhance our innovation conversations.  In person relationships foster our collaboration.  Relationships drive breakthrough innovations.  Reach out to Rizza Torres at Decasonic if you would like to join us! #web3investorday #web3 #venturecapital

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I rarely write about one particular token, but given the volume of requests for our thesis on Stacks STX, especially after the recent announcement https://lnkd.in/gWpkm-iu, I’m consolidating my thoughts here in one place. Hope this is helpful to those seeking to understand the STX ecosystem and the reasons behind our conviction. Full thesis here: https://lnkd.in/g2JGahpZ TLDR 1. It's the OG blue-chip crypto project. 2. It's the first compliant token: a key driver for institutional adoption is to use STX as the de facto BTC staking provider. 3. The most optimal return on risk for real “whales” to generate yield on BTC with peace of mind. 4. The undisputed forerunner in bitcoin L2 with 10 years of first-mover advantage. 5. It has a rare token standard moat. 6. Its ecosystem moat: 155 monthly actively developers + 60+ projects adopting its token standard 7. It's vastly being undervalued at the moment based on comparables in ethereum. 8. Tokenomics and token maturity: 100% vested. 9. Upcoming catalysts

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One of the hardest things to do in an investment negotiation is to get to a valuation where the investor and founder are happy. That valuation needs to reflect the world the founders have done to get the business where it is and align to the investor's ownership requirements. It also has to ensure the founders have enough skin in the game through this and further funding rounds to keep them going through the dark days (of which there will be quite a few!). This is a great post from Dirk Sahlmer outlining the revenue multiples we're seeing in the market as a benchmark. What are you looking for? ------------------- I'm David 😀 and I spend my days raising investment for startups all over the world from investors all over the world. Like what I do here? Comment 🗣️ and repost 📧 to help founders get funded quicker.

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The appetite for emerging managers is stronger than ever, as highlighted in Rede Partners’ September 2024 Emerging Manager Survey. For those of us in early-stage gaming investing, this is a signal that the right fundamentals—strategy, differentiation, and team pedigree—matter more than ever. Key findings from the survey include: Robust Demand: 100% of LPs surveyed plan to maintain or increase their exposure to emerging GPs. Sector Focus: While industrials, healthcare, and software dominate LP preferences, the flexibility and innovation of the gaming sector continue to attract attention for its scalability and growth potential. Performance Expectations: 66% of LPs are underwriting new emerging managers to at least a 2.5x net return, with a focus on strong proof points like successful exits. As early-stage investors in gaming, we understand the balance between creativity and business fundamentals. This report reinforces our belief that high-quality talent and innovation can drive exceptional outcomes for both GPs and LPs. To dive deeper into the trends shaping the landscape for emerging managers, you can access the full report here: Rede Partners Emerging Manager Survey 2024. Let’s connect to discuss the exciting opportunities in gaming and how we can shape the future of interactive entertainment together!

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The largest acquisition in crypto history occurred just last month: Stripe's $1.1B deal for Bridge. This isn't just a headline—it's a signal of how payment rails are evolving at the intersection of crypto and traditional finance. This week at Lw3 in Dallas, I’ll be speaking on why this acquisition is more than a milestone—it's a glimpse of the future. Crypto-native payment rails are no longer a niche experiment; they’re becoming foundational to global commerce. At Reciprocal Ventures, we’ve been investing in the crypto payments ecosystem since the early days, partnering with pioneering companies like Coinflow Labs, Higlobe and True Markets. This space has been at the forefront of innovation, and we’ve seen firsthand how scalable, efficient, and transparent payment rails are reshaping the way value moves in a digital-first world. I’m excited to explore what this acquisition means for the growth of this ecosystem and why it's only the beginning of a broader wave of innovation and opportunity. If you’re at Lw3, come say hi. I'll be with Steven Feldman — we’d love to connect and share ideas.

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In the next two weeks, the House of Representatives will vote on the most important piece of crypto legislation to date: FIT21. We’ve long called for regulatory clarity that protects consumers and innovation and the FIT21 Act will do just that. Americans have embraced digital assets, but the current regulatory approach too often limits innovation and privacy without actually addressing the solutions needed to protect consumers or tackle illicit activity. FIT21 will help stamp out scams, ensure oversight of crypto exchanges, and protect American consumers by implementing strict rules on crypto trading. FIT21 has bipartisan support because it tackles these issues. I encourage everyone who believes in the power of blockchain technology to support this legislation. The best thing to do is get in touch with your local representative and tell them to support FIT21. Stand With Crypto offers helpful resources to find and contact your local representative here: https://lnkd.in/gszyG_v5

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Great analysis of recent #vc trends. Thank you Kaela Roeder and Technical.ly for including my thoughts in the piece. My "expanded" two cents below for anyone curious... It is easy to get excited by what is happening in venture capital these days given the advent of AI. However, for early-stage startups, the numbers tell a more nuanced story. Early-stage deal volume in Q4-2023 was down 66% from the peak (Q4-2021) and a quarter of the deals were down rounds. In 2024, volumes stayed fairly flat relative to 2023 levels (signalizing a normalization to pre-pandemic VC activity) and 32% of deals were down rounds in Q1 (a worsening since year end). Early-stage valuations have spiked back up this year – a pleasant boon for some founders. But, this inflation is largely driven by the excitement around AI and strong demand for capital-efficient, high-growth companies. Many startups have tried to become “dot AI” businesses overnight; however, such tactics are not the “silver bullet” to fundraising challenges and growth. With limited time and capital, funds are on the hunt for companies with bulletproof fundamentals or those with exponential growth potential. If you don’t check one of these two boxes, the VC world looks fundamentally different for you. Locally, there are some positive tailwinds. The D.C. area has outpaced other metro areas in adding AI jobs due in large part to the defense industry and an increasing number of tech companies opening-up federal outposts. Over the long-term, this will be very positive for D.C. startup growth and talent.

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I’m no crypto expert, but since joining Mercy Corps Ventures, I’ve been amazed learning about the potential of crypto, blockchain, and Web3 to create real impact in emerging markets. We are launching the Crypto for Good Fund IV for web3 builders in emerging markets. Over the past few years, MCV has been funding and partnering with innovators building real-life, blockchain-powered solutions. We’ve launched 15+ pilots reaching 40k users including: - Anticipatory cash transfers for climate shocks, cutting transaction costs by 75% and reducing settlement time from 7-10 days to hours. https://lnkd.in/ezezpft8 - Clean water access through decentralized Web3 networks, with 75% of participants reporting improved access to water. https://lnkd.in/e-HEpuiJ - Fractionalized bonds as a savings plan for low-income individuals, reaching over 11,000 users—46% of whom accessed a savings product with returns for the first time https://lnkd.in/ep8KnSnd C4G in a nutshell: 📍 Who is it for: innovators building web3 real-use cases for financial inclusion and climate resilience in Africa, Asia, or Latam 💰What does it provides: equity-free grants up to $100K, along with mentorship, impact measurement support and access to our network 📅 How to apply: Submit your applications before December 20th here https://lnkd.in/eNaDEtsQ

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