Cameron Borumand

We recently had an opportunity to gather with finance leaders based in Utah, all the way from public company CFOs to finance leaders of fast growing Series A-stage startups. It was a great discussion with a great group. A couple things stood out for me from the discussion: 🤖 A handful of these leaders mentioned that they are starting to see some tangible productivity gains from the AI in their organizations, mainly around developer productivity and getting more done with less. It still felt early, but interesting to hear anecdotes of the promise of AI being realized. ✂️ On behalf of our portfolio companies, we asked what it takes takes to sell software into their organizations given the current economic environment. Their feedback confirmed a lot of what we were hearing from our B2B portfolio companies: ▪️They are looking to consolidate vendors, it's very unlikely (if not impossible) they would approve a net new vendor unless it is replacing another tool/service they can cut from the budget ▪️ROI is extremely important. They are looking for tangible evidence that the tool will drive revenue and/or reduce costs. ▪️The mentality of "everyone gets a seat" is over. They are looking for justification for why certain teams and individuals should get a license. ▪️ They are approving every purchase. Just assume the CFO is a part of the buying committee even if it isn't obvious. Bring the CFO in early to the buying process and arm the internal champion with the ROI case along the way. Really grateful for this group for gathering and sharing their insights!

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I recently joined Tyler Hogge and Sterling Snow on the IO Podcast to discuss frameworks for growth-stage companies and what sets great companies apart from the rest. Listen to our conversation here: https://lnkd.in/edRyAmbz And linking to the blog posts we get into on the pod for easy reference: 1️⃣ R&D is one of the most critical yet challenging capital to allocate. How to get it right: https://lnkd.in/gQ-bN87N 2️⃣ For growth-stage companies burning cash, these are the essential questions to answer before going public: https://lnkd.in/gdjT-Fy2 3️⃣ AI is revolutionizing computing. More on what we can learn from SaaS market dynamics as we enter this new era: https://lnkd.in/ePjw7SvT

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Well-written and sourced article describing what's going in seed-stage venture market. At 9point8 Collective we tend to orbit the seed-stage (both ideating and developing companies to reach seed and helping post-seed companies refactor and scale in anticipation of A) and for many companies it's a critical inflection point which determines their long term success or failure. The main takeaways I was able to gather: 1️⃣ Many startups that raised seed rounds in 2021-2022 are struggling to secure Series A funding due to tighter market conditions and increased investor expectations. 2️⃣ Seed investors are becoming more cautious, leading to longer diligence processes and a preference for startups with strong traction or experienced founders. As a result, valuations have stayed relatively high even as deal flow reduces. 3️⃣ Startups are adopting various strategies to navigate this challenging environment, including cutting costs, raising bridge rounds or convertible notes, and M&A/acqui-hires. 4️⃣ Despite the challenges, there are opportunities for both startups and investors in this new landscape, particularly for those who can adapt to the changing market conditions. Investors are accumulating dry powder -- and with rates on the decline -- will be looking to deploy into companies with stronger fundamentals than their 2021-2022 counterparts.

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Don't call it a comeback - growth equity deals on the rise again per PitchBook. From the attached article: "According to PitchBook’s latest US PE Breakdown, PE growth investments were on the rise in the first half of 2024, accounting for about 23% of all PE deals and surpassing leveraged buyouts, which made up 19%. That reverses a long-time trend. Growth investments in the first half of 2024 are already exceeding those from the whole of 2023, when they accounted for 20% of all PE deals." The heightened cost of capital is obviously driving a lot of this dynamic. However... it is interesting to note that PE funds are seemingly more willing to take minority stakes - a dynamic that is historically more from the VC playbook. The hard truth is that, even in a challenging funding and valuation environment, growth stage companies - both PE-backed and VC-backed - still offer large institutional investors a compelling return profile. A growth-potential profile not often available in the public markets. This dynamic alone will push PE and VC private market investment through and beyond the current challenges... Endeavor Colorado Zeb King Tegan Stanbach Kathryn Dickson #privateequity #venturecapital #entrepreneurship #innovation #founders #startups #investing https://lnkd.in/gKZKwXct

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When you hear "EXIT" you probably think that the company sold to a PE firm or it went public via an IPO, but that's not always what an "EXIT" means. Different types of exits for Founders: partner buyout sold out in the secondaries company did a stock buy back all stock purchase PE buyer utilizing a leveraged buyout sold utilizing seller financing totally got diluted down to zero BK sold in receivership gifted ownership to charity walked away and took nothing got fired and the company paid you fair market value company got purchased buy nobody made any money upon the sale raised some capital the wrong way and the investors are suing you for the company plus damages... So, when you see someone with "multiple exits", ask some questions as your idea of what an exit is may be completely different from what the actual facts are. Just sayin...

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Should I use only equity for my search fund acquisition? 👇 If you can convince enough shareholders to part with their cash in order to purchase a company, this is the simplest way to go. A few thoughts: 1. Equity carries no covenants or external limits on how you and your team run the company. 2. Since there’s no debt, you have a higher risk tolerance. 3. Equity investors are patient. Debt holders are not. 4. Investors get well rewarded for shared success. If you do well, they do very well. This can make it easier to raise capital. 5. Some companies are not a good fit for debt. Lenders like predictable cash flow, hard assets and a history of profitability. 6. Equity is easy to raise compared to debt, which involves due diligence, counterparty risk, and tight terms. On the other hand, equity is expensive. You will have to give away the value of the money up front, and more.

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Juniper Square recently released their look back at the state of venture in Q2 2024, and the data is interesting. 👉 The liquidity drought continues to stifle fundraising, with $37.4B committed to 255 funds YTD. 👉 In the current climate, established managers are securing 77% of fund value YTD, the highest concentration in the last decade.  👉 Over 63% of capital raised in 2024 so far is in funds of $500M+, the second-highest percentage in the last decade. 👉 Q2 reflects an uptick in US venture deal momentum, with quarterly deal count climbing to the highest level since Q2 2022. 👉 Q2 data shows a third consecutive upward quarter in both exit value and the total number of exits.  👉 Q2 hit a 9-quarter high in total number of exits, and the total exit value recorded was the second-best quarter since Q1 2022. The data shows that the landscape is especially competitive for emerging managers. When it comes to generating returns though, a fresh perspective can help find the most interesting deals. I wrote a bit about this last week, if you’re curious to dig into stats on unicorns at the seed stage, and the funds they’re raising from. You can check out the full report from Juniper Square here: https://lnkd.in/eN6VnY-k #emergingmanagers #stateofvc

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CRV is doubling down on early stage investing. Returning the remainder of our late stage “Select Fund” to focus our efforts on high risk and high multiple early stage investing. Venture capital is as crowded a market as it has ever been. Competition has moved later stage with their dollars and focus drifting to multiple products and geographies, fragmenting their investing talent. We’ve also seen talented investors retiring or putting their feet up. This leaves our home turf of early stage open for the taking. CRV offers one product to our entrepreneurs & LPs (early stage) CRV is one geo (Bay Area) CRV is one team (flat and equal partnership) This picture goes hard.

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Posting an interview I did w Mark Casey from Capital Group. Mark is one of the smartest, long-term public investors I spend time w. Some frameworks and lessons learned below. Enjoy! Andreessen Horowitz - Long-term orientation = “Barnacle mode” - Shareholders are an audience. Are you putting on an opera or a rock concert? What you play will attract your investor crowd - Why companies should have a Northstar that is not financial - His “grumpy” take on adj EBITDA vs earnings, and the magic of “per share” ;) - Why you shouldn’t hype up your own stock - How (and when not) to give guidance - How (not) to incorporate macro into investment decisions - Unstoppable investment trends in growth - Why AI’s impact is unbounded  - What makes a great public co CEO - The GOATs of Capital Allocation - And much more!

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The new quarterly review is live! Each quarter, I dive into the latest trends and shifts in the venture capital market, covering both the broader macro perspective and the unique insights we’re seeing at Florida Funders. Check out my latest article to stay informed on what’s shaping the VC landscape and how we're navigating it at FF. Always eager to hear your thoughts – let’s keep the conversation going! #VentureCapital #FloridaFunders #MarketInsights

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Can't wait to reconnect with the brilliant Amanda Herson and join the discussion with Maciek Gnutek and Iain Martin at Slush about our fund models and what they mean for Founders ❄ 🚀

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Sheel Mohnot makes a wonderful point (thanks) - the metrics a founder chooses to showcase in a presentation is a great tell for investors. Founders: don't bury the lede! (homophoney-pun intended) So many pre-seed/Seed startups favor vanity metrics because they are insecure about how small the real ones are. There is almost always a metric that paints you in a better light - one that lends legitimacy to your product/service value prop, stickiness, GTM, etc. Make the right choice!

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Charles Hudson is hands-down one of the sharpest minds in early-stage investing. As the Founder and Managing Partner at Precursor Ventures, Charles has backed over 375 companies and supported more than 400 founders. → His portfolio includes hits like Clearco, Juniper Square, and Carrot → He's helped founders raise over $175 million across four funds → He's an active leader in the VC community, serving as the 2023-2024 Chair of the NVCA Board of Directors But even with all of his successes and accolades, what really sets Charles apart is his founder-first philosophy. He's not looking for "coachable" founders who hang on his every word. He wants founders who are decisive, independent thinkers. He believes his job is to give founders what they need, not impose his own agenda. Charles is the kind of investor every founder wants in their corner. One who shows up, follows through, and builds genuine relationships over time. And on this week’s episode of Minimum Viable Podcast, he's sharing his insights on what makes for a truly productive founder-investor partnership. Founders, this is a conversation you’ll want to hear. — What's the #1 quality you look for in an investor? Tune in to the full episode when it drops this Wednesday to hear much more from Charles and learn how to make the most of your investor relationships.

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WE DID IT! After 2 years of pushing through the biggest downturn in VC in decades, Matthew Stotts 🌐 and I made it to the finish line with Fund I! We couldn't have done this without One Small Planet (Will Peterffy and Jack Wielebinski 🙏), Regen Network and Regen Foundation (Austin Wade Smith Gregory Landua and Will Szal), and a dozen other family offices and angels who believed that we can build a nature-positive economy utilizing our eye for software and our history as founders from day 1 A shout out goes to all of our founders (only four announced today, but watch this space - there are multitudes!) who trusted us enough to give us a spot on their cap table for this 10-15 year journey. This is the best job in the world, and it's because we get to work with people like you who have weird ideas in the best possible way. Using Bitcoin as anchor base load to decarbonize residential housing in America's most expensive energy market? Make every complex supply chain legible to machines so we can find and eliminate deforestation in commodity supply chains? Build deeply liquid environmental asset markets to price ecosystem services, on a blockchain, that no one needs to know is a blockchain? I'm so excited to get to work on this stuff for the next 10-15 years minimum, and to see what we can accelerate with our tiny fund in the next 5-6 years as we approach 2030 Onward! https://lnkd.in/gy3B-DFe

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5.0x VC fund returns are rare. The possibility reduces significantly when investing in larger funds. Access is the game. If you aren't accessing the best performing funds, the asset class isn't worth the risk I don't see how the risk is worth underwriting at all in large funds. #VC #venturecapital

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Tough to bring out the best in PE portfolio companies without bringing out the best in their leaders, eh? Most PE folks will nod in agreement. But tell me: What are you doing to equip, empower, and develop port-co leaders? And is it enough to give your firm an edge in this hyper-competitive PE market? If the answer is anything short of an emphatic "yes," check out the leadership accelerator we're working on. Details in the comments ⤵️

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Should VC Scouts be Spending Time w/Syndicate Leads? As a syndicate lead, I’ve substantially leaned into working with VC scouts the past 3-4 years. It's been a great, and a differentiated way to gain unique access to deal flow. Many of my most exciting portfolio companies have come from various “VC scouts”. While this has become increasingly core to my sourcing strategy, it’s equally been beneficial to the scouts who are capitalizing on a large portion of the carried interest for their support in sourcing and diligence. And for the record, we keep using the term “scout” but this really applies to anyone who truly has unique access to startups/founders. This post is for you. We’d love to work with you :) In this week's Last Money In Media post, I’m going to make the case that most venture capital scouts should spend less time scouting for venture funds and more time (or focus) scouting for venture capital syndicates. If you are scouting deals because you want to invest, capitalize on carried interest, and do more deals, scouting is the way to go, and working with syndicate leads will likely lead to more deal activity. The exception to this post is if you are scouting for venture funds that hope you to join. In that case, syndicate leads will not be as helpful. In this post, I will break down key differences between syndicates and venture funds as it relates to upside for venture scouts or anyone who has strong deal flow and wants to capitalize on it. We’ll cover: - How scouting has evolved over the recent years in the syndicate ecosystem - How Zachary and I frequently work with scouts - How the carry works and can be more attractive when scouting for syndicate leads - The general enthusiasm of syndicates to work with scouts - Incentives for scouts - How this applies to junior VC’s who are looking for more deal activity - And more! Link to full article in comments! -- Powered by Sydecar and Forge, Last Money In Media is the most actionable venture capital newsletter. Written by Zachary Ginsburg and Alex Pattis, the global syndicate leaders with 800+ SPVs invested.

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