Dave Butler

🌟Innovative VC Firm Overcomes Exits Drought with Secondary Sales🌟 ⛵Navigating a challenging landscape where exits are scarce, Santa Barbara Venture Partners (SBVP) has pioneered a novel approach to sustain its growth and attract investors for its second fund: secondary sales. Instead of waiting for traditional exits like IPOs or acquisitions, SBVP opted to sell shares of its portfolio companies, demonstrating its ability to generate returns for investors and stand out in a competitive market. 🎤According to Dan Engel, founder and managing partner of SBVP, these secondary transactions have been a game-changer, sparking investor interest and bolstering the firm's credibility. By leveraging its recent successes, including a lucrative stake in sports-betting company DraftKings Inc.' acquisition of digital lottery app Jackpocket, SBVP seized the opportunity to return profits to its limited partners (LPs) and pave the way for its second fund. 💡Engel highlighted the challenges faced by young VC firms in raising subsequent funds, particularly amid a downturn in exit activity and heightened investor scrutiny. With traditional exit routes becoming increasingly elusive, the pressure is on for firms to demonstrate tangible returns and establish a track record of success. ✨"For us, secondary sales have been a game-changer. They've helped us return profits to our LPs and attract investors for our second fund," said Dan Engel. 💰For SBVP, the decision to pursue secondary sales was driven by the need to provide liquidity to LPs and validate its investment thesis in the eyes of prospective investors. By strategically offloading portions of its holdings in high-performing portfolio companies like Bark Technologies and Rad AI, SBVP not only generated substantial returns but also bolstered investor confidence in its ability to deliver results. ⚠Despite the complexities and potential stigma associated with early share sales, Engel emphasized the importance of prioritizing investor returns and seizing opportunities to unlock value for stakeholders. With a focus on profitability and transparency, SBVP remains committed to its mission of delivering sustainable growth and maximizing returns for its LPs. 🔍 "Returning profits to our investors is our top priority. By strategically selling shares, we're proving our commitment to delivering results and driving value for our stakeholders," added Engel. As SBVP continues to explore secondary transactions and expand its investor base, the firm stands as a testament to innovation and resilience in the face of market challenges. 🚀 ✅ 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 #VCInnovation #SecondarySalesSuccess #InvestorReturns #ValueCreation 

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📈 Top Public AI Stocks for April 2024 - ClearOne Inc. (CLRO): A company specializing in audio, video, and web conferencing applications. Their AI configuration and control software, Console, is gaining attention. 🎙️💻 - B.O.S. Better Online Solutions (BOSC): Focused on supply chain and inventory solutions, BOSC’s Intelligent Robotics division incorporates AI technology. 🤖📦 - Opera Ltd. (OPRA): Known for designing web browsers, Opera has integrated ChatGPT and free VPN functionality into its browsers. 🌐🔒 Remember to consider your investment strategy based on value, growth, and momentum! 💡📊 #AI #Investing https://lnkd.in/gPWFe4PF

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Don't you just love it when you come across an article that corroborates your particular perspective? I just read this article (https://lnkd.in/gimYNgfp.) by Keith Elphick of Airline Hydraulics Corporation and found myself in full agreement with so many of his observations and conclusions. "There’s no denying the economic attractiveness of factory automation. As robot prices decrease and computing power and networking technologies advance, manufacturers increasingly turn to automation to enhance productivity and reduce expenses. The result significantly boosts productivity and efficiency in modern digital-first factories." "The decline in US factory jobs is a complex issue influenced by various factors beyond automation. Globalization, trade policies, and evolving consumer demands have significantly impacted the manufacturing landscape. A comprehensive, forward-thinking approach that includes investment in education and worker support initiatives can help address this issue, ensuring a resilient workforce ready to face the future." Very accurate. #automation #manufacturing #manufacturingjobs #manufacturingpolicy #americanmanufacturing #production #robotics #manufacturingtech #factory #modernmanufacturing #digitalmanufacturing

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https://lnkd.in/g83iStzp Very interesting article. Relatively simple premise being explained and corresponding well to the “graphic of the century”

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[part 2 of 2 - cont’d from https://lnkd.in/g8Ar6qGj] ….. A very common pattern I see with “rookie” vs. master” operators is something like this: 🌱𝗥𝗢𝗢𝗞𝗜𝗘 (𝗥):  𝗘𝘃𝗲𝗿𝘆𝘁𝗵𝗶𝗻𝗴 𝗶𝘀 𝗶𝗺𝗽𝗼𝗿𝘁𝗮𝗻𝘁 𝗮𝗻𝗱 𝗮𝘁𝘁𝗲𝗺𝗽𝘁𝘀 𝘁𝗼 𝗲𝘅𝗲𝗰𝘂𝘁𝗲 𝗮𝗻𝗱 𝘄𝗼𝗿𝗸 𝘁𝗵𝗿𝗼𝘂𝗴𝗵 𝗲𝘃𝗲𝗿𝘆𝘁𝗵𝗶𝗻𝗴 𝘄𝗶𝘁𝗵 𝗲𝗾𝘂𝗮𝗹𝗹𝘆 𝗶𝗻𝘁𝗲𝗻𝘀𝗶𝘁𝘆 𝗮𝗻𝗱 𝗲𝗳𝗳𝗼𝗿𝘁 👑𝗠𝗔𝗦𝗧𝗘𝗥 (𝗠):  𝗜𝗺𝗺𝗲𝗱𝗶𝗮𝘁𝗲𝗹𝘆 𝗽𝗿𝗶𝗼𝗿𝗶𝘁𝗶𝘇𝗲𝘀 𝘄𝗵𝗮𝘁 𝗶𝘀 𝗺𝗼𝘀𝘁 𝗶𝗺𝗽𝗼𝗿𝘁𝗮𝗻𝘁, 𝘄𝗵𝗮𝘁 𝘄𝗶𝗹𝗹 𝗱𝗶𝘀𝘀𝗼𝗹𝘃𝗲 𝘃𝘀. 𝗱𝗲𝗹𝗲𝗴𝗮𝘁𝗲 𝘃𝘀. 𝗱𝗲𝗳𝗹𝗲𝗰𝘁 ☐ 𝗧𝗼𝗽 𝘀𝗮𝗹𝗲𝘀 𝗽𝗲𝗿𝗳𝗼𝗿𝗺𝗲𝗿 𝗷𝘂𝘀𝘁 𝗻𝗼𝘁𝗶𝗳𝗶𝗲𝗱 𝘁𝗵𝗲𝘆 𝗮𝗿𝗲 𝗾𝘂𝗶𝘁𝘁𝗶𝗻𝗴  🌱Immediately sets up 1:1 call to spend time saving them 👑Group text to CRO and Head of People asking why they are leaving >> realize it’s not salvageable.  Authorize backfill (via text).  ☐ 𝗜𝗺𝗽𝗼𝗿𝘁𝗮𝗻𝘁 𝗺𝗲𝗲𝘁𝗶𝗻𝗴 𝘄𝗶𝘁𝗵 𝗮𝗻𝗰𝗵𝗼𝗿 𝗶𝗻𝘃𝗲𝘀𝘁𝗼𝗿 𝗶𝗻 𝟮 𝗱𝗮𝘆𝘀 𝘁𝗼 𝗰𝗹𝗼𝘀𝗲 𝗦𝗲𝗿𝗶𝗲𝘀 𝗕 - 𝗳𝗶𝗻𝗮𝗹𝗶𝘇𝗶𝗻𝗴 𝗽𝗶𝘁𝗰𝗵 𝗺𝗮𝘁𝗲𝗿𝗶𝗮𝗹𝘀 🌱 Set up 2 hour meeting with FP&A and CEO team to prep, review and polish ahead of the meeting.  Runs the meeting end to end. 👑Set up 30 minute meeting with just FP&A team and asks them to “mock run the meeting”.  Provide feedback and give 30 minutes to make edits and improve.  Set up follow-on 1 hour meeting, kicks off the call by “setting the table”, tells head of FP&A to lead and present.  CEO provides feedback. 30 minute call next day with CEO to go through pitch together. ☐ 𝗖𝗮𝘀𝗵 𝗯𝘂𝗿𝗻 𝗿𝗲𝗽𝗼𝗿𝘁 𝗳𝗼𝗿 𝘁𝗵𝗲 𝘄𝗲𝗲𝗸𝗹𝘆 𝗲𝘅𝗲𝗰 𝘁𝗲𝗮𝗺 𝗺𝗲𝗲𝘁𝗶𝗻𝗴 𝗶𝘀 𝗼𝘃𝗲𝗿𝗱𝘂𝗲 🌱 Carves out 30 minutes to review and sanity check the cash burn report in their inbox before 12pm 👑Sanity checks the numbers (60 seconds) to make sure nothing looks suspicious. Delegates to head of FP&A to check and publish.  ☐ 𝗧𝗲𝗮𝗺’𝘀 𝗾𝘂𝗮𝗿𝘁𝗲𝗿𝗹𝘆 𝗢𝗞𝗥𝘀, 𝟰 𝘄𝗲𝗲𝗸𝘀 𝗹𝗮𝘁𝗲 𝗻𝗼𝘄 🌱Sets up 1 hour meeting with team to review and another 1 hour to complete self-OKRs 👑Writes to team an apology for dropping the ball, and to ignore this quarter’s OKRs as they’ve gone stale and to focus on next quarter’s, taking into account latest pivot discussed. ☐ 𝟰𝟬𝟬 𝘂𝗻𝗿𝗲𝗮𝗱 𝗲𝗺𝗮𝗶𝗹𝘀 🌱 Attempts inbox zero by end of day 👑Scans emails for family/friend, customers, internal team (in that order) and leaves the rest to triage tomorrow.  ☐ 𝗡𝗮𝗻𝗻𝘆 𝗷𝘂𝘀𝘁 𝗰𝗮𝗹𝗹𝗲𝗱 𝗶𝗻 𝘀𝗶𝗰𝗸, 𝘆𝗼𝘂’𝘃𝗲 𝗴𝗼𝘁 𝗽𝗶𝗰𝗸-𝘂𝗽𝘀 𝗮𝘁 𝗮𝗹𝘁𝗲𝗿𝗻𝗮𝘁𝗶𝗻𝗴 𝗹𝗼𝗰𝗮𝘁𝗶𝗼𝗻𝘀 🌱 Texts four friends and babysitters to see if they can help 👑Fires up the Starlink and goes mobile for the day, swings by Swirl for random Monday fro-yo  treat If you feel “seen”... join us: Operators Guild - the most elite business scalers  - https://hubs.la/Q02q1ty40 OG Next - the future masters of business scaling - https://hubs.la/Q02q1w4d0

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The question is what it's revenue success is based on... TV/STB chipsets I very much doubt it, as it has become second or even third runner behind Amlogic and Mediatek, but clearly when it comes to Modems and Networking it is very much still there. Have you noticed that the most valuable companies are now becoming the 'pick and shovel' companies, at least they a vying for the top spots with the service companies..

I have invested in some consumer electronics hardware startups for over a decade, and have seen some fail and some succeed. Consumer hardware is HARD. Consumers expect close to perfect products that at least promise to do many things for them, product price can typically only go down from launch day onwards, and there are so many balls to juggle simultaneously in taking product through launch + shipping. Biggest mistake is often this: perfect is the enemy of good. Steve Jobs may have said consumers don't know what they want, but you are no Steve Jobs - so get real consumer feedback as early as possible vs building in stealth forever. Lastly, plan ahead for next 2-3 rounds of financing. Money will be hardest to get when you need it most, and quality of investors drops sharply because there are few exit paths half-way through. This is something most executives who come from large consumer electronics companies and may have great experience in product design, engineering, supply chain management, manufacturing, logistics, pricing, distribution channels, marketing etc, don't know enough about.

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Exciting news for startups! California accounts for about 50% of all venture investments. The not-so-secret reason is that non-competes are illegal in California, so engineers at FAANGs can build competitors without fear. Today, the US Federal Trade Commission declared non-compete agreements illegal nationwide. This means that engineers at big tech companies can now leave and build their own companies without fear of violating a non-competes (legacy agreements for executives are still enforceable - talk to your lawyer), this is a step in the right direction for fostering innovation and competition across the country. A variety of big-business groups have vowed to sue to bring non-competes back, but at least for now, they're gone! #startups #innovation #competition #noncompete Official Announcement: https://lnkd.in/gRXUpgDy Impending lawsuit: https://lnkd.in/gqSiVuTd

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Having a Cars and Capital event tomorrow in Southern California with Oren Klaff. If you want to join message me. https://lnkd.in/gDQ4D39u Oren Klaff Bridger Pennington #InvestorEvent #FamilyOffice #InvestmentOpportunity #CarlsbadEvent #PrivateEquity #WealthManagement #InvestmentConference #CapitalRaising #NetworkingEvent #IndustryLeaders #FinancialGrowth #InvestorsMeetup #WealthBuilding #BusinessGrowth #InvestmentForum

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Bow Wow Labs named to Inc. 5000 list of America's fastest-growing private companies----September 17, 2024 Bow Wow Labs Ranks No. 181 in Consumer Products and one of 10 Pet Nutrition Companies Austin, TX Bow Wow Labs, inventors of the life-protecting Bow Wow Buddy™ and innovators of unique pet products that help keep pets safe, healthy and happy, is honored to be recognized and awarded for the second year in a row to the 2024  Inc. 5,000, Inc.’s prestigious list of America’s fastest-growing private companies.  Officially ranked 181 in Consumer Products and one of only 10 pet nutrition companies on the Inc. 5,000 list based on the brand’s achievements in innovation and safety. This is due to an impressive revenue growth, which was centered around Bow Wow Labs’ mission of saving pets’ lives with safety solutions like the award-winning life protecting Bow Wow Buddy. “We are excited to have made the Inc. 5000 list for a second consecutive year. The dedication of our team and the drive to continue to be the best allows Bow Wow Labs to change how safety and nutrition look to loving pet parents, and I couldn’t be more proud,” states Brian O’Neil, President and Chief Operating Officer of Bow Wow Labs. For complete results from Inc. 5000, including company profiles and an interactive database that can be sorted by industry, location, and other criteria, go to www.inc.com/inc5000. The top 500 companies are featured in the September issue of Inc. magazine, available on newsstands now. About Inc. Media:  The world’s most trusted business-media brand, Inc. offers entrepreneurs the knowledge, tools, connections, and community to build great companies. Its award-winning multiplatform content reaches more than 50 million people each month across a variety of channels including websites, newsletters, social media, podcasts, and print. Its prestigious Inc. 5000 list, produced every year since 1982, analyzes company data to recognize the fastest-growing privately held businesses in the United States. The global recognition that comes with inclusion in the 5000 gives the founders of the best businesses an opportunity to engage with an exclusive community of their peers, and the credibility that helps them drive sales and recruit talent. To learn more, please visit:  www.inc.com.

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How I model the Pro Forma Balance Sheet in 7 steps 👇 ~~~ 𝗧𝗟;𝗗𝗥: grab the template here 👉 https://lnkd.in/ex6BKa4E ~~~ 𝟭. 𝗦𝗲𝗹𝗹𝗲𝗿 𝗧𝗮𝗸𝗲𝘀 𝗖𝗮𝘀𝗵 𝗮𝘁 𝗖𝗹𝗼𝘀𝗲 Seller keeps the existing cash because it's value they previously created and doesn't belong to the new buyer. (Often times this is excess cash, not all cash) Steps: Reduces cash, reduces Retained Earnings. 𝟮. 𝗡𝗲𝘄 𝗘𝗾𝘂𝗶𝘁𝘆 Buyer brings new equity to purchase the business. Steps: Equity up, Cash up 𝟯. 𝗡𝗲𝘄 𝗗𝗲𝗯𝘁 Buyer also brought new debt to purchase the business. Steps: Debt up, Cash up 𝟰. 𝗣𝗮𝘆𝗼𝗳𝗳 𝗢𝗹𝗱 𝗘𝗾𝘂𝗶𝘁𝘆 (𝗮𝗸𝗮 𝗯𝘂𝘆 𝘁𝗵𝗲 𝗯𝘂𝘀𝗶𝗻𝗲𝘀𝘀) The cash from the new equity & debt goes to purchase the existing business. Any premium above the equity value is recorded as Goodwill. Steps: Old Equity Paid Off, Goodwill Calculated, Cash goes out (this is "The Purchase") How to calculate Goodwill: Enterprise Value (+) Cash (-) Debt = FMV of Equity (-) Book Value of Existing Equity = Goodwill 𝟱. 𝗣𝗮𝘆𝗼𝗳𝗳 𝗢𝗹𝗱 𝗗𝗲𝗯𝘁 Similar to step 4, new debt comes in, old debt goes away. Steps: Reduce old debt, reduce cash 𝟲. 𝗧𝗿𝗮𝗻𝘀𝗮𝗰𝘁𝗶𝗼𝗻 𝗙𝗲𝗲𝘀 These are an expense for the new buyer (to get the deal done), so it immediately hits Retained Earnings. Steps: Retained Earnings down, Cash down 𝟳. 𝗗𝗲𝗯𝘁 𝗙𝗲𝗲𝘀 Under the "old method," you would record the deferred financing fees as an asset. Today they're recorded as either a contra-liability or asset depending on the type of debt. The impact on the P&L is the same (amortization), so I often prefer the "old method" to keep my model cleaner. Steps: asset up, cash down 𝗪𝗮𝘁𝗰𝗵 𝘁𝗵𝗲 𝗖𝗮𝘀𝗵 In every step, you can see how the cash immediately flows in and subsequently flows out in order to complete the purchase. The ending result is the "Pro Forma Balance Sheet" that reflects the new debt, new equity, and cash balance for the buyer ($500k in this case). ~~~ 👋 Hey, I'm Chris Reilly, and I post about middle-market Financial Modeling based on real Private Equity and FP&A experience. 𝘱.𝘴. don't forget to grab the template here 👉 https://lnkd.in/ex6BKa4E

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Shortsighted CEOs leave CIOs with increasing tech debt! CEOs surveyed by IBM worry that their organizations are sacrificing long-term innovation by spending too much on short-term IT projects — while also pressuring their CIOs to do so. Many organizations are mortgaging their futures by reallocating IT resources from long-term projects to achieve short-term wins, according to a recent survey of CEOs. Two-thirds of CEOs surveyed by the IBM Institute for Business Value acknowledge raiding long-term IT projects to achieve short-term goals. At the same time, the CEOs surveyed see a focus on short-term performance as the top barrier to innovation. #ceo #cio #innovation #technology https://lnkd.in/dHq2kEZ9

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In this video I discuss 5 Ways to Find Investors for Your SMB Acquisition in 2024 https://lnkd.in/equZPg5t

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Playing around with creating a tool to give homeowners and renters actionable information to optimize their energy usage, reduce costs, and take advantage of available incentives. It provides recommendations for energy efficiency upgrades. Would love any feedback! https://lnkd.in/gxBBXBBR #climate #climateimpact

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ISP Strategic Leadership, Engineering, and Operations As an organization scales, there is often a need to separate strategic technology leadership under the CTO from internal execution under engineering and operations management. This allows the CTO to focus on outward-facing duties while enabling streamlined operational efficiency. However, it's crucial to recognize the differing motivations and needs of these distinct technical roles. On one hand, engineers thrive on tackling interesting, challenging projects that push their abilities and knowledge. They value working alongside capable peers, genuine recognition of technical accomplishments, and contributing to products/services that reach the market. In contrast, operations teams should strive for repeatable processes, continual improvement, and driving efficiency at scale. Their priorities revolve around standardizing workflows, minimizing disruptions, and incrementally optimizing existing systems and procedures to maintain consistent service delivery as the company grows. An effective organizational structure acknowledges this dichotomy, fostering an environment that fuels engineering innovation while providing operations with the stability and process-orientation they require. Striking this balance enables the company to stay agile and innovative through its engineering efforts, while simultaneously scaling operational execution in a reliable and repeatable manner. Competitive compensation remains an important motivator across both domains. By properly aligning structural elements, motivational factors, and leadership priorities, a rapidly growing ISP can position itself to attract and retain top talent across engineering and operations, driving sustainable growth and success in the dynamic technology landscape.

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We're transforming Aithor into the go-to #multitool and have rolled out 3 new features in A/B testing mode. Here’s what’s new: (1) #Topic Generator – Crafting clear titles for coursework. (2) #Structure & Logic Builder – Creating a table of contents and essay plan. (3) #CoPilot – An AI-driven text creation assistant, suggesting whole paragraphs based on your writing and chosen topic. Big deal. Great plans. We're in the middle of a #repositioning, which is priority-1 right now. We’re moving away from our current positioning to better resonate with our #academic commitment. Sticking with our old vibe was tough; including restrictions from a few platforms. As AI skeptics are watching, any negative publicity makes us a target, since #AI is still viewed with suspicion. We're expanding our toolset to reach a broader audience and be more helpful to the academic community. We’re not focusing just on students & scientists anymore; we're also stepping into marketing and text creation. The core of what we do is to #reduce the time spent on routine tasks and #focus more on generating better ideas. With the new positioning, we're also on the hunt for funds to accelerate our growth, aim higher, and plan our grand exit in 2025. Keep your eyes peeled — I’ll share more about our repositioning soon!

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🌍 Blue Dot Brief – Issue 6: Your actions matter. Set an example. Change how you spend your money and how you live. Inspire someone today. 🌍 The Blue Dot Brief is the official newsletter of the Blue Dot Project, authored by Dave Vranicar. We cover topics related to investing in regenerative culture and community. Our latest edition dives into key issues to inspire a regenerative mindset and collective action. From hedging risks through bioregional investments to addressing fast fashion’s environmental toll, we bring you the latest insights. Here are the key highlights: 📌 Words to Ponder: Marine biologist Ayana Elizabeth Johnson reminds us that nature is resilient. Despite the challenges, balance can be restored, and ecosystems can support food security and well-being. 📌 1 Big Thing: Betting on bioregions. Investing in natural geographic areas reduces risks, maximizes returns, and protects the environment. 📌 Atlantic Ocean Tipping Point: The disruption of the Atlantic Meridional Overturning Current (AMOC) could drastically alter climates and economies across Europe, Africa, and South America. 📌 Solar Power: Renewable energy is outpacing skeptics, with solar energy growing faster than ever, now leading global electricity capacity. 📌 Fast Fashion: Stop the cycle of waste by choosing clothes that last. Avoid brands contributing to the environmental crisis, and invest in sustainable fashion. 📌 Positive Climate Visions: Ayana Elizabeth Johnson's new book What If We Get It Right? offers an optimistic take on the future and how we can still make a difference. 🌱Read the full article here: https://lnkd.in/ezgmbwkR #RegenerativeMindset #ImpactInvesting #FastFashion #SolarEnergy #Resilience #Regeneration

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