Jonathan F. Kestenbaum

With Assets-Under-Management(AUM) and hold-periods being record high, Exits are strategic priority for investors to make private equity flywheel spin again...Looking forward to Real Deals summit how operating partners are collaborating with portfolio companies on exit readiness including coherent equity story with due-diligence mindset and robust value creation plan.

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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

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Reflecting on my conversation with Denny Chared, CEO of DC Finance, really highlights the art of building influential networks and leading high-stakes financial conferences worldwide. Denny's approach to connecting people and capital is not just effective but inspirational. Join us in exploring these pivotal strategies for anyone looking to scale their influence in finance. 💼 #LeadershipInsights #FinanceInnovation https://lnkd.in/gsVFsUVY

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Worth checking out for any companies at the right stage.

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What do you do when a radical new technology puts your main product right in the crosshairs of disruption? Listen to David Okuniev — co-founder of Typeform | Ask awesomely — discuss the challenges of innovation within existing structures. David shared a game-changing insight: Radical innovation is really, really difficult to do inside your own product. He emphasized the need to break free from the constraints of familiarity and embrace change from outside the box. Henrik Werdelin and I have both seen our fair share of this in our respective careers. What struck us most was how David leveraged structure to overcome the innovator’s dilemma. By creating a culture of experimentation and providing space for bold ideas, he propelled Typeform beyond incremental improvements. What other hacks have you seen or employed to help your organization overcome the innovator’s dilemma? Share your stories below! 👇 And if you want to dive deeper into our conversation, click the link in the comments to catch the full podcast episode!

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Limited Partners (LPs) are holding on to their dollars in Q1 2024 which is impacting the new fund investments, a mere fraction of 2022 commitments. "For LPs, distributions are what matter, and our data shows how low those realized returns have dropped during the market slowdown. One of the data points that really sticks out this Q1 report is that just $9.3 billion of new fund commitments were closed, or rather, 5.0% of the 2022 annual high. With little capital to recycle into the market, LPs have come under further pressure in navigating their exposure to venture. Though the IPOs of Reddit and Astera Labs grabbed the spotlight during the quarter, total exit value reached just $18.4 billion, dampening the outlook of an increase to distribution rates just yet." Pitchbook #venturecapital #limitedpartners #ipos #venturefunds #familyoffices #FOFs #FOs

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Halle Kaplan-Allen and I will be chatting with Ali Hamed tomorrow about sourcing LPs. You can RSVP here: https://lnkd.in/edYZhKrA Ali wrote this excellent tactical piece on networking that is well worth a read for anyone networking their way to capital: https://lnkd.in/eZ_2f_4x This event is presented by Sydecar, a frictionless deal execution platform for venture capitalists. By pioneering a standardized approach to private investing, they enable capital allocators to identify and back entrepreneurs who are changing the world. Their platform reliably handles back-office operations, automating banking, compliance, contracts, tax, and reporting so that customers can focus on making deals and building relationships.

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These VC firms have fresh capital and are eager to deploy. 🔴 Olivia Wilde launched her new VC firm, Proximity Ventures, with Neil Sirni, Jason Mack, and Santi White. The firm expects to hold a close next month and will invest in consumer and enterprise sectors. 🔴 Greenwich based Tamarack Global closed its $72M Opportunities II fund to focus on energy transition, defense-tech, the space economy, robotics & automation, AI, and more. 🔴 New York based BBG Ventures raised a $60M fund to support diverse founders. 🔴 Los Angeles based MaC Venture Capital raised its third $150M fund to back diverse founders and industries such as aerospace, enterprise software, fintech, health tech, and defense, among others. 🔴 Lisbon based Faber closed its €31 million Faber Tech III fund to support early stage innovation in Southern Europe. 🔴 Chicago based Listen Ventures is planning to raise $75M for its fourth fund to back consumer-obsessed founders building brands at the tipping point of behavior shifts. 🔴 Mumbai based Inflexor Ventures closed its first ₹350 crore Opportunities Fund to support its existing portfolio companies. 🔴 France based Axeleo Capital closed its new €125M greentech fund. 🔴 Singapore’s Nanyang Technological University (NTU) partnered with venture capital firm Walden International to establish a new VC fund, Nanyang Frontier Fund. The fund is looking to raise $37.9M to back deep tech spin-offs from the university.

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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

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A great The Angel Nest Podcast episode recorded yesterday with Thomas Wisniewski of newark venture partners! Really insightful conversation around trends in Seed stage investing, how metrics matter in communicating traction, and important aspects of financial modeling for early stage startups. Many thanks for your time Tom and thanks David Hemenway as always for hosting. Look out for the release of the episode soon! #angelinvesting #seedstage #startups #financialmodeling #venturecapital #startups

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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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Will be a great conversation at the Finimize Modern Investor Summit with iCapital Chairman & CEO Lawrence Calcano about the mainstreaming of alternatives and how iCapital has been at the epicenter of enabling more investors to access private markets.

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Such an excellent conversation this week. For those in venture capital, this is a must listen. https://lnkd.in/gQUgM8q9

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Silicon Valley built venture capital. But New York's new guard is reinventing it. Just reviewed TechCrunch's Top New York VCs Under 30 List. The paradigm is shifting from the traditional Sand Hill Road model to something more diverse and dynamic, marked by: +Founders-turned-investors have hands-on startup experience +A deeper focus on overlooked markets and underserved founders +Cross-pollination between tech and NYC's legacy industries +An emphasis on sustainable growth over growth-at-all-costs As this generation steps into decision-making roles, they’re bringing a fresh take on community-driven investing, alternative funding structures, and an emphasis on long-term value creation. Congratulations to all the honorees. Young talent is reshaping VC but remember – great investors come at every age. (Fun fact: the average GP is 43!) Want to meet the next wave of NYC's venture talent? Follow along as TechCrunch updates their Under 30 list: https://bit.ly/4hiw4ef Thoughts on the approach of younger VCs? Would love to hear your perspective. #VentureCapital #StartupNYC #Innovation #TechNews" Data Sources: TechCrunch and SaaStr PS 🔔 Unlock a better way to raise capital with: 💸https://fundingstack.com/ for VCs and investors

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Wonderful article about Emily Knight and the whole The Engine Accelerator team on the amazing work their doing changing the world with #ToughTech!

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Interesting insights here... This research sheds light on the pivotal role that founder personalities play in shaping the trajectory of ventures. It underscores the importance of introspection and self-awareness for entrepreneurs as they navigate the complex landscape of building a business. For investors, these insights offer valuable guidance in assessing potential investments and understanding the human element behind the pitches. #Startups #Entrepreneurship #Investing

Should private markets look more like public markets? In this Citywire interview with the supremely knowledgeable Selin Bucak, we discuss the different angles of the private markets wealth push. Where should private markets and public markets intersect? I think it should intersect more in the execution and infrastructure than it should in trying to fit a "square peg in a round hole." "I'd almost want this space to think about looking more like public markets in the execution, where there's the ability to press a 'buy button' and then alternatives are a piece of a portfolio than have it look more like public markets from a product perspective where you're trying to combine private-public products, which I also think will happen." Listen to the entire interview on Citywire, link below. Alt Goes Mainstream https://lnkd.in/exKH3y3V

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The hidden years of inception stage. Founders & LP’s rarely understand that the journey of building a great company can involve up to three years of work before an early stage VC will get involved. h/t Peter Walker for the years from incorporation data from Carta https://lnkd.in/e5fFkvDt #vc #founders #investing Antler

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