Jean-Luc Vanhulst

The secret—if it ever was one—is out on private equity fondness for vertical software. While PE-backed acquisitions were down 50%+ from a peak in 2021, vertical buyouts have continued to grow, and the fervor seems to be gaining steam. In today’s essay, we will pose an answer to one question: is PE a viable path to exit for a venture-backed startup?

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"An "investment loop" in user onboarding occurs when users start using the product with a low-friction entry point (no signup form). As they progress through the onboarding, they become more likely to continue using the product. Only once they're sufficiently invested do you ask them to sign up with email (and perhaps their credit card)." https://lnkd.in/gxUSb7Y3

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There is a never-ending discussion about whether to bootstrap or get Venture capital. Check out the chart. This eye-opening chart reveals that bootstrapped startups have a more consistent path to $1M ARR than their VC-backed counterparts. Top VC-backed companies sprint to $1M in just 20 months But median bootstrappers hit the same milestone in 41 months Bottom quartile bootstrappers are slow but relentless, reaching $1M in 63 months. Bootstrappers show remarkably linear growth across all quartiles. VC rocket fuel isn't always the answer. Sometimes, steady organic growth builds a more resilient business. What's your take? 🤔 #StartupGrowth #Bootstrapping #VCFunding #SaaS

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2024's study by J.D. Power revealed that only 26% of US car buyers were “very likely to consider purchasing” an #EV in the next year, and more than 20% were “very unlikely to consider an EV purchase” at all. We know the lack of charging stations, high cost of insurance and repairs are associated pain points. [Side note: As someone who has experienced the very real EV service issue —TLDR: rental Tesla unable to charge during a 7 hour drive to VT, Hertz MIA 🤷‍♀️ - 7 hours slowly turned into 16 hours..so Kinetic has got me intrigued!] They deploy robots that diagnose and recalibrate electric and autonomous vehicles—a game-changer in the world of car repairs.. A robotic arm scans from bumper to fender with machine vision sensors, diagnose - and then Kinetic's software will initiate and track the fixes. They plan to expand to robotaxi fleets. The scoop: 🏁Many repair centers can't support the "finicky, “digital” aspects of customers’ cars - often expensive & time-consuming repairs. 🏁Improved efficiency - from pilot customers "This reduced our cycle time by days.’ Or ‘We got cars back to customers faster and cheaper" 🏁Cost reduction: By tackling the digital complexities of modern vehicles, Kinetic aims to lower maintenance expenses, especially for EV owners. 🏁Insurance impact: Addressing tech-related repair costs could potentially alleviate the burden on insurance, making EV ownership more appealing. Can't wait to see how this shapes the future of #mobility. #AutonomousVehicles

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Today’s read asks the big question on everyone’s minds again: can #AI technology replace my job? In this case, can AI replace legitimate human #VC investors? Well, the short answer is no. The role of a VC requires a lot of knowledge, prior experience, and #intuition that AI technology at this moment cannot replicate in a way that’s helpful. But b2venture did put AI to the test in three different experiments related to things that #investors like me do on an everyday basis. For example, Python Coding #GPT4 was used to generate investment memos, typically written when VCs have interest in a company and want to highlight the strengths and weaknesses of a potential startup. The final product was very much a rough first draft, but did produce results in five minutes versus the several hours it would take to do the task otherwise. GPT-4 was also put to use for market analysis and intro writing, to various #mixed results. GPT-4 has its strengths. It’s really great at summarizing text, extracting information efficiently, and superficially finding patterns. But with all of those useful things come with large shortcomings such as data “hallucinations.” Basically, while these tools have promise and well on their way to keep improving, it will take a while for technology to evolve from being demonstrative #gimmick to something used in a #daily context. What do you think? Are you someone that uses #AI to help with your job? Does it work with you and your workflow?

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Pleased to share some insights into our latest fund SSV II 🛰 🌌 Following the same strategy as its original SpaceTech-focused venture fund, a top-performing fund for its vintage, SSV II aims to build a portfolio of c.30 companies. The Fund has already made nine investments. The 9 companies currently making up the SSV II portfolio are: 💫 Hubble Network – Internet of Things satellite constellation for connecting directly to billions of Bluetooth-enabled devices Delos Insurance Solutions – Space data-powered wildfire home insurance provider ATMOS Space Cargo – Space cargo return service for life sciences Auriga Space – Novel electromagnetic launch system Array Labs- 3D satellite imagery on a global scale Privateer Space - constellation of small SATs for in-Space Situational Awareness (SSA) Ubotica Technologies - Live Earth Intelligence (Space: AI) Renoster - Deep Transparency for nature-based carbon projects constellr - Space data-powered high-precision smart farming services Find out more👀 https://lnkd.in/eS_9w7c3

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Simplifying the Asset Purchase Agreement (APA) in Micro SaaS Acquisitions // What is an APA? - Buyers acquire specific assets, avoiding unwanted liabilities. - Common in Micro SaaS to select valuable assets and minimize risks. // Key Components: - Purchased Assets: Codebase, customer lists, etc. - Liabilities: Buyers avoid seller’s debts. - Payment: Often a mix of cash, seller notes, and earnouts. Understanding the APA helps guide smoother acquisitions. Here if any Founders are considering an exit...

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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

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Successful ventures that have achieved Product-Market Fit and have scaled their operations will probably face this new reality: 𝗧𝗵𝗲 𝗻𝗲𝗲𝗱 𝗳𝗼𝗿 𝗹𝗶𝗾𝘂𝗶𝗱𝗶𝘁𝘆 𝗳𝗿𝗼𝗺 𝗽𝗿𝗼𝗳𝗲𝘀𝘀𝗶𝗼𝗻𝗮𝗹 𝗶𝗻𝘃𝗲𝘀𝘁𝗼𝗿𝘀. As explained by Mark Suster, this liquidity is most likely to come from Private Equity firms, who have the expertise to evaluate companies based on long-term fundamentals, much like the approach taken by Warren Buffett (rather than the speculative one from crypto-traders 😉). Valuation is not a one-time event but a dynamic process that follows a chain-like logic, where each link is interconnected. An irrational (high) valuation early in the chain can have significant repercussions later on, leading to fewer financing or liquidity options - as professional investors will not accept it. You may avoid this by establishing a clear valuation roadmap that demonstrates a consistent risk/return rationale for each type of investor, from business angels and venture capitalists to Private Equity firms and the Public Market, spanning from the first funding round to the eventual public offering. #EntryPriceMatters #ValuationRoadmap #PrivateEquity

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🌐 Navigating Hype vs. Reality in Tech Innovation. We've all been caught up in hype - whether it's the latest tech, product, or innovation. But there's a crucial distinction between true potential and mere buzz. The stakes? Often the difference between success and failure. Take AI as a prime example. Right now, it's everywhere. But if you're in tech or investing, you’ve likely seen how fleeting trends can be. Real growth is rooted in products that solve genuine problems, not just in what’s hyped. Here’s a reality check: 📈 Hype Cycle Peaks: Every wave of excitement has a tipping point. Companies surviving beyond it have something substantial at their core. 💡 Consumer-Driven Growth: Products built to meet real needs can thrive with or without the spotlight. 🎯 Smart Use of Hype: Harness it for visibility but don’t depend on it for survival. True innovation finds a balance—leveraging trends without losing sight of enduring value. For more detailed insights, check the link in the comments below 👇 #TechTrends #AI #Innovation #VentureCapital #startupfunding, #vc, #venture

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NEW RELEASE 4.5KBL: Are you looking to build and launch AI solutions for your business? Any AI solution? Cut the corner on development, testing, and costs, and immediately launch AI experiences that easily connect with 130+ software solutions while extracting extraordinary data? 📊 Our latest release provides it all. You can innovate and launch as many AI bots and flow solutions as you want, for the cost of just one full-time employee annually. Why KBot Lightning Platform? Limitless Innovation - Develop any AI application you can imagine with full encryption for maximum privacy. Omni-Channel Deployment: Easily deploy AI bots across any communication channel—Instagram DMs, Slack, websites, WhatsApp, Microsoft suite, Google suite, your custom app -etc. Superior Conversational Data Intelligence: Leverage state-of-the-art data synthesis for insightful analytics and decision-making. Comprehensive Security and Compliance: Enjoy peace of mind knowing your compliance and security needs are expertly handled. Fully White-Label: Customize the platform to reflect your brand, ensuring consistent brand recognition. Elevate your business capabilities with the KBot Lightning Platform and experience the future of AI today. #AIBusinessSolutions #KBotLightning #AIInnovation #EncryptedAI #MultiChannelAI #DataSynthesis #AIDeployment #TechSecurity #WhiteLabelAI #FutureOfAI #BusinessAutomation #AIIntegration #DigitalTransformation #WhiteLabel #BrandCustomization #WhiteLabelSolutions

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"Investors may be betting big [...] on the ones they believe in while letting those they are less sure about wither away at earlier stages of funding." Not surprising at all and expected 🤔 The good news: Proper tech startup scouting is increasingly appreciated in this phase, leading to more well thought early stage investments. #technology #innovation #business #artificialintelligence #ai #startups #entrepreneurship #management #funding #angelinvesting #earlystage #seriesa #investor #venturecapital #vc

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Autonomous Vehicle (AV) funding is surging, according to PitchBook with Q2 2024 seeing $2.9 billion invested in AV startups - the highest since Q3 2021. While self-driving cars grab headlines, innovative startups are finding unique applications beyond passenger vehicles. Key developments: - Supply chain optimization: Outrider is revolutionizing yard operations with autonomous electric vehicles, addressing a $60 billion market. - Specialized transport: Pyka's autonomous planes for cargo and Gatik's local distribution trucks are gaining traction. - Safety & efficiency: Evitado Technologies automates airside operations, mitigating airport collision risks. Of course, more established companies such as Lyft & Uber are working on AV rideshare integration via partnerships with Waymo, BYD, Zoox, and others. The AV sector is focusing on gradual integration and specific use cases. While concerns about job displacement exist, proponents argue that automation could shift human capital to higher-value roles. What those roles are remains to be seen. As the AV landscape evolves, it's clear that the future of transportation extends far beyond just self-driving cars on city streets. Check out the full article by Nadine Manske here: https://lnkd.in/g3HJXZHc? And access the PitchBook Mobility Tech Report here: https://lnkd.in/g4_xP5pr #VentureCapital #AutonomousDriving #FrontierTech #FutureMobility

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How Do VCs Decide to Take a First Meeting? And Non-Obvious Fundraising Lessons On Pitching https://buff.ly/3NHF67j VCs make crucial decisions on taking initial meetings based on various factors like market potential, team quality, and differentiation. Understanding these non-obvious fundraising lessons can significantly impact your pitch success. For instance, highlighting traction metrics and showcasing a deep understanding of the market can capture investors' attention. Statistics show that startups with a clear go-to-market strategy are more likely to secure funding. By focusing on these key elements, entrepreneurs can increase their chances of securing that coveted first meeting. #VentureCapital #StartupFunding

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Last week, we shared the first part (1/2) of our perspectives on vertical SaaS (vSaaS), more specifically on which metrics define the performance of vSaaS businesses and outlining the benchmarks for each of these metrics. If you have not yet read the piece, give it a read here - https://lnkd.in/d94n2bgN This week we published the second part (2/2) where we call out certain strategies deployed by successful vSaaS companies like Procore Technologies Toast ServiceNow Zenoti and others that can be used to improve the metrics that matter. Read on to layer the numbers with the strats- https://lnkd.in/dPkmWFax Do reach out if you are building in the space or want to exchange notes / feedback on the perspectives. #fintech #verticaSaaS #embeddedfinance #investments

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Key takeaways from VC Goat - Vinod Khosla podcast. - The firm cares more about working on interesting problems with large technical solutions rather than just maximizing IRR. The team is there because they believe in the mission. - Khosla assumes they've lost the money the day they invest, and then maximizes for the upside opportunity. He calls it "option value investing" rather than IRR investing. - Khosla has contrarian bets in AI (neuro-symbolic computing, probabilistic approaches), biotech, robotics, crypto, and more. - He believes aviation fuels, fusion energy, new transit systems, and other contrarian areas ignored by most investors will be huge opportunities. - Most large innovations come from outsiders, not industry insiders. Khosla looks for founders who can learn a business rapidly rather than have deep domain expertise. The Future Impact of AI - AI will be deflationary and increase productivity growth to 4% annually vs the typical 2% forecast. This will cause great abundance but also increasing income inequality. - Bipedal robots will take over most manufacturing and manual labor jobs within 20-25 years. This will free humans to be more creative and pursue their passions. - Education will shift from job training to creativity. Uniquely human elements like taste and curation will be most valued in an AI-enabled world. https://lnkd.in/gqBsmbks

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Like some of the framing and thoughts here - particularly the practical instruction on unfolding, getting those feedback loops and data points to sharpen your positioning, being responsive, and finding out what and where the demand and need really is. At Leeg Group we joke around to ✨Listen to the Universe✨. Which really just means it’s our job to get the data, feedback, and insights that will help feed our decision making.

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