Michael Frankel

Executive summary of the Elon Musk handbook for the Department of Government Efficiency (DOGE). “The two of us will advise DOGE at every step to pursue three major kinds of reform: regulatory rescissions, administrative reductions and cost savings.” It will be interesting to see what the team comes up with and whether any of the ideas could serve as inspiration to curtail inefficient government spending in Canada. Curious as to your views whether Canada should adopt a similar strategy to cut wasteful spending. And if you think so, anyone from the private sector you think would make for an effective champion for the maple syrup version? https://lnkd.in/gzxyVNc6

168

106 Comments

Interesting piece from Marc Andreessen on how startups are not getting the regulatory support they need to sustain America's technological leadership. "Regulatory agencies have been green lit to use brute force investigations, prosecutions, intimidation, and threats to hobble new industries, such as Blockchain. Regulatory agencies are being green lit in real time to do the same to Artificial Intelligence." While many investors themselves (both in the US and Europe) are worried how AI will change our lives, our jobs and social interactions, the top VC opinion leader thinks regulation is already too restrictive. #techstartups #techleadership #strategicgrowth

9

1 Comment

Series A or B wondering when to bring in a VP of Finance or CFO? It’s a crucial decision that can shape the future of your company. At this stage, financial leadership is not just about managing numbers but also scaling processes, securing funding, and driving strategic growth. My colleague Paul breaks down key signs that it’s time to hire and indicators for choosing between VP of Finance and a CFO #FinanceLeadership #CFO #StartupGrowth #SeriesA #SeriesB #NextGenLeadership

6

One of the things we see quite often at Grit Capital Partners, is a newly minted CEO. We see a big difference in the transition to CEO based upon the historical lane the CEO is coming from. There are different new muscles if you are coming from Product, Engineering, Finance, etc. In this article, we go deep on the CRO to CEO transition, which includes some thoughts from Rosie O'Meara, a particularly fine example of someone who has made the transition quite well. What were your biggest transition moments? https://lnkd.in/eEB-K2ZU

79

6 Comments

Here's a piece from Fortune (behind a paywall) on the use of secondary transactions by VC firms. Mark Suster from Upfront Ventures notes the secondary market is emerging as a critical tool for VC's, and that VC's might need to emulate their PE peers in the use of GP-led transactions. I agree this will become more common, and in some ways, VC use of secondary transactions is a more natural fit. VC funds don’t need to maintain controlling interest, so selling partial stakes is easier. Conversely, it’s also easier for a VC firm to buy a minority stake. If exits remain muted, the need for a secondary solution will undoubtedly increase. Venture capital firms often hold anti-dilution rights during fundraises, yet many dated funds lack the capital to exercise those rights. Worse, in some situations, ‘pay to play’ rounds can threaten to zero out investments made in funds without additional investment capital. Secondary transactions offer a viable solution, allowing firms to manage their portfolios effectively, harvest value and mitigate risk. The issue has always been pricing. Secondary funds have always had much more comfort with the valuation methodology (rooted in financial performance) of private equity portfolio companies, than the valuation 'art' of venture capital. Perhaps more VC funds entering as buyers or partnering with secondary funds is the answer? #VentureCapital #SecondaryMarkets #InvestmentStrategy #Liquidity #PrivateEquity #GPLedSecondary https://lnkd.in/gM3bzTdv

6

Building on the success of Rocket Studio with Simon Kirby and Pivotal with Dominic Joseph we decided to merge with Impact Counsel, led by the awesomely talented John D., Erim Jones and Robert Fok earlier this year. We’ve combined our significant and complimentary skills, experience and passion for growing amazing businesses to create a new breed of VC - Creative Capital Ventures Group (CCV). Fund 1 is focused on Sports, Media & Entertainment. Joining us on this exciting journey is media titan Tom Rogers (ex CEO Tivo & CNBC). We have also assembled a mighty team of Venture Partners bringing their expertise into our team, with the legendary Harvey Goldsmith leading our Immersive Entertainment category, and Cam Blackwood (Platinum award winning record producer) and his team at Rezonate heading up Music Rights acquisition. Creative Capital Ventures is designed to disrupt traditional VC models and accelerate the growth of innovative start-ups. We’ve already secured €18 million in commitments and are raising €35 million in total to fuel the next generation of game-changing businesses. What makes CCV different? •⁠ ⁠Founder-Led Expertise: Our team comprises serial entrepreneurs and operators who have built, scaled, and exited successful companies. We know what it takes to drive rapid growth. •⁠ ⁠Speed Scaler: Through our unique venture studio model, we’re not just funding companies—we’re actively accelerating their growth, shrinking the timeline from seed to exit. •⁠ ⁠Industry Focus: CCV focuses on high-growth sectors like Sports, Media, Entertainment, and Lifestyle, with a unique emphasis on IP acquisition to drive returns in stable asset classes. If you're interested in learning more about how CCV is reshaping the venture capital landscape, let’s connect!  More updates to follow! #VentureCapital #Innovation #Entrepreneurship #Startups #ScalingFast #CreativeCapitalVentures https://lnkd.in/eiuWVtvT

110

30 Comments

Some VC investors believe that brick and mortar - referring to a physical presence of some kind - should be avoided at all costs. Yet, the track record of clinic and hybrid care businesses in health care indicates otherwise. ==> One Medical (sold for $3.9 billion to Amazon), Oak Street (bought by CVS for $10.6 billion), Lifestance (IPO at $7.5 billion market cap), and PE-backed Premise Health (acquired by OMERS Private Equity for $1.1 billion) If a clinic is indicated as the optimal way to deliver care for that patient population, there are creative ways to build and operate them. Full article below with advice and strategies on how to build and operate hybrid clinics from my teammate Anarghya Vardhana from Maveron, Amir Dan Rubin from OneMedical Group, Steven Eidelman from Modern Animal and more!

13

1 Comment

📈🏢 Aby Rosen's RFR Holding is facing a staggering $2.5B debt bill as defaults pile up! 💥 🔎 According to a recent Bisnow article, RFR Holding, a prominent NYC real estate firm, is grappling with mounting debt and defaults. The company, led by billionaire Aby Rosen, has a portfolio of high-profile properties, including the iconic Seagram Building and Lever House. 🏢🏦 📊 The firm's debt load has surged to a whopping $2.5B, with $1.1B in loans maturing this year alone. 💸 The pandemic has hit the commercial real estate market hard, causing defaults to skyrocket. RFR Holding is no exception, with defaults on several properties, including the $200M mortgage on the Seagram Building. 📉 🗣️ "The pandemic has created a perfect storm for commercial real estate," said one industry expert. "Companies like RFR Holding are facing unprecedented challenges as they navigate this difficult time." 🌪️ 🔜 So, what's next for RFR Holding? The company is reportedly exploring options to refinance its debt and avoid further defaults. 💡 With the commercial real estate market showing signs of recovery, there's hope that RFR Holding can weather this storm. 🌞 Stay tuned for more updates on this developing story! 📰🔔 #RFRHolding #CommercialRealEstate #Debt #Defaults #NYCRealEstate

5

As we approach year-end, here's a helpful guide for General Partners and Limited Partners explaining: - What gets taxed? - What isn't taxed? - Scheduling K-1s - How venture fund earnings are taxed - VC fund write-offs - How Carta can help Check it out below (it's a quick read)!

3

Venture Capital and the Stalled IPO Market along with Prolonged High Interest Rates have negatively impacted Early-Stage Companies Yesterday's article in the WSJ is confirmatory of the funding challenges early-stage companies have faced for the last two and a half years. There has been a dearth of VC funding, with a lot of innovative early-stage companies struggling to survive. The impact will be felt for years, as new technology developments and new potential biotech therapies have been held back or not even started because of a lack of risk capital. Will things improve by themselves if interest rates decline? Will the IPO market restart? How would an increase in the capital gains tax rate or the elimination of the Qualified Small Business tax treatment impact available risk capital? Will Family Offices begin to invest directly and disintermediate the VC world? What are your thoughts? #angelinvesting #familyoffice #venturecapital #earlystagecompany

4

1 Comment

"Whatever rules you pick, use common sense in picking them, and be respectful in applying them. The best time to discuss rules is while you’re still negotiating the terms sheet [7]. Once a board gets in the habit of treating observers like directors, it can be hard to break. So from the outset, you should be ready to set norms for observers. Talk to new observers in advance so you know they understand the rules. And then respectfully enforce them if they get violated in the meeting." https://lnkd.in/ge2hK7w6

1

Lots of PE groups profess to port-co's the importance of solidifying a differentiated strategy. But also important to eat your own cooking. What is your FIRM's differentiated strategy? And how differentiated is it? Enjoyed the discussion with Nick Bradley on The Scale Up Podcast! #PrivateEquity #Talent

8

This analysis, at least anecdotally makes sense to me. In many situations, infringe and holdout is the least painful option for large infringers. The system enables it. - The plaintiff must allocate the time and $$ to assert, taking time and $$ away from selling and developing products. Even if they engage litigation financiers they are limiting their upside potential. - The infringer continues to infringe while employing stall tactics or simply relying on the painfully slow, overburdened legal system. - The cost benefit analysis for infringers - "infringe and pay lawyers" typically outweighs the cost of design around or license. - Enhanced damages and injunctions are rare. - Litigation insurance products reduce risk all around. "The Marcum report shows that there is indeed something wrong with the patent system in the United States but it’s not excessive litigation or patent trolls. The real problem is the inability of patent owners to enforce their rights against infringers. Given the difficulty of obtaining injunctive relief and the limited enhancement of damages, it is unsurprising that predatory infringement has become a standard business practice when, at worst, all an infringer can be expected to pay is a reasonable royalty and, at best, nothing at all."

5

💡Benchmarks in the investment industry serve as a standard for measuring the performance of securities, mutual funds, or investment managers. They provide a reference point for analyzing allocation, risk, and return of a portfolio, enabling investors to make informed decisions. Thanks Peter Walker for keeping us all informed!! Can’t wait for this!! Follow and get on the waitlist for this one! #benchmarks #fundraising #Capitalraise #founders #womenshealth #femhealth #medtech #wellness

16

An important op-ed from our CMO Saurabh Gombar in STAT. As AI and other analytic tools race to the bedside he has become increasingly concerned that "rates" or "analytics" without any even basic statistical backing are being presented as "Evidence" to doctors for using one treatment over another. It strikes me that #pharma folks may be unaware that these tech companies are essentially telling doctors not to use their product without going through the same rigorous approach to evidence generation they go through every day for the FDA and in medical and #heor publication work. I think it is simple, if you are making care or treatment recommendations you must use proper design and statistical methodology, present your results and methods transparently, and offer a transparent review of your data quality. #realworldevidence #decisionsupport

62

1 Comment

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.

18

2 Comments

While there is extensive analysis available on how boards of established companies should operate, especially those in the public interest or publicly traded shares, there is very little guidance on how to make venture boards work effectively. Based on our experience across board roles, board advisory work and mentoring chairs and NEDs, we outline in this article five considerations for venture businesses to make their boards more effective https://lnkd.in/eXDHTwpg #boardeffectiveness #neds #boardsofdirectors

3

Today we’re excited to announce we’ve raised approximately $8B of new capital, empowering the future of technologies and businesses worldwide. As we venture beyond to create new realities alongside ambitious entrepreneurs, we’re energised by what lies ahead. For 25 years, we’ve partnered with founders to build enduring companies. In healthcare, we set out to work with aligned parties across the industry to deliver transformation, rather than just innovation, inspired by our own vision of Health Assurance. We are fortunate to have partnered with extraordinary teams including those at Aidoc, ArriVent Biopharma, Cityblock Health, Capital Rx, Commure, Dandy, Devoted Health, Homeward, Livongo, Maven Clinic, Sword Health and Transcarent to make this bold vision a reality. We are grateful for the support of our LPs to accelerate our work to deliver a more resilient system of health globally. I am also thrilled that with our expanded seed capacity in Europe and India, we’re further strengthened our focus on working with founders from the very first stage of their journey. Learn more → https://bit.ly/gc-xii CC: Hemant Taneja, Kenneth C. Frazier, Holly Maloney, Elena Viboch, Caitlin Donovan, Reva Nohria, Candace Richardson, Alexandre Momeni, Rachit N., Pranay Orugunta, Tyler Olkowski, Dylan S. #VentureBeyond #GlobalResilience #HealthAssurance #AppliedAI #Startups #VentureCapital

170

12 Comments