Josh Alexander, CFA

RVP Mythbuster: A common misconception is that Revelry Venture Partners only invests in New Orleans & Louisiana. Wrong! We hang our hat in New Orleans proudly, and LOVE supporting our local ecosystem, but our mandate is to invest in and with our national network of excellent founders and VC partners. Fund I deal breakdown below (as of Q2'24). This mix will be updated as we continue to deploy this and subsequent funds.

61

5 Comments

I had several people reach out with interest in the Triangle Tweener Fund asking for details on the accreditation requirement. It's a SEC requirement and here's a quick guide on what an accredited investor is and how our partner AngelList verifies-> https://lnkd.in/gidDDWP3

53

2 Comments

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

13

1 Comment

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.

17

2 Comments

Roll-up strategies can maximize value in ways you might not expect. For instance, merging a company with $11 million in revenue and $1.1 million in EBITDA, another with $5 million in revenue and $1.1 million in EBITDA, and a third with $4 million in revenue and $600K in EBITDA can transform a $10.7 million purchase into a $19 million valuation. Incredible, right? That’s how a strategic roll-up can create almost $8 million in value. Got any businesses in mind that could benefit from merging? Let me know in the comments! #RollUpStrategy #SMB #ETA #finance #Cashflow

13

1 Comment

ARR abuse, while obfuscating true GAAP revenue is a real issue. In VC pitch decks, I am noticing an increasing confusion in how the founders share the Annualized Recurring Revenue (ARR), Booked Revenue, and the GAAP Revenue. This recent WSJ article on this topic, as applied to #Crowdstrike, makes this point very well. Thanks Jonathan Weil Krishna Kunapuli, Dr. Pallab Chatterjee Rajiv Roy Sumanth Channabasappa #crowdstrike #accounting #saas #ARR #GAAP #Revenues

40

2 Comments

VC Market Update: Riding Out the Post-Boom Bumps. 2021's high-flying valuations and growth have given way to a more complex reality. With longer private timelines, tough exit markets, and capital tightness, startups face unique challenges—but also fresh opportunities. For those navigating today’s VC landscape, strategic planning is key. Whether it's balancing growth with capital efficiency or exploring secondaries smartly, there’s a path forward. And with boosts from AI and future rate cuts, brighter days could be ahead!

21

2 Comments

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

1

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

10

1 Comment

Ever wondered how VC investors figure out who gets paid and how much when a startup hits it big? Dive into Verb Ventures' latest VC Blueprint on the Waterfall Model to get the scoop — and check out our model template inside!🌊 From senior VCs to the folks in the trenches, find out how money flows when an exit goes down. Whether you're dabbling in investments or running your startup, this breakdown is a must-read to keep your finance game strong!💸 https://lnkd.in/e-UaBVHY

17

1 Comment

I’m excited to publicly share something that has been in the works for a few months at the 9point8 Collective. We’ve launched our Virtual Studio! This is a program for early-stage companies that provides the coaching, development and venture-building tools they need to find traction and scale. The program is modeled off of the venture-building processes found inside #VentureStudios, which have delivered 2X IRR and exit 45% faster than traditional #VC-backed #startups over the last 10 years. Some of the secret sauce to this is that studios have found a way to validate strategies early on, de-risk execution, preserve and extend limited runway, and create efficient business models very fast. We at 9point8 are seasoned studio builders and are on a mission to bring this value to founding teams as they navigate their startup journeys. What we’ve done with the Virtual Studio is distill these key processes and techniques, add in our own expertise and best practices, and package them into a program which meets start-ups where they are. We are now opening up our Summer 2024 Cohort, slated to begin in July. Space is limited, so I’m sharing the opportunity with my network before we fill the cohort. Here are the details: -It’s a 3-month program which takes the founder through the key phases of venture-building and de-risking (refining target market, product-market fit, economics and financials, planning, and fundraising). -Founders can expect to achieve greater focus, improved operations and increased marketability to customers and investors. -The end results include collaboratively-drafted operational plans, commercial / investment pitch decks, and elevated management practices within the founding team. These draft off frameworks from 9point8's proprietary venture-building process: Targets Over Everything. -It’s built for founders facing (or approaching) a critical inflection point, where fresh perspectives and strategic management levers are critical. These might include fundraising preparation, new product launch, market expansion, and post-MVP scaling efforts. Why did we build this program? Because building a new company is really hard. 90(!) percent of startups fail, and even moderate risk reduction can create a huge lift to survival rate and eventual returns. The studio model is proven to drive greater venture success; our virtual program is extending that success to more and more teams. The program is highly collaborative and hands-on, so we only take on a few companies at a time. This is a great opportunity for founders who are looking to level-up their abilities when it comes to unlocking traction, growth, and an express lane to superior returns. If interested, please reach out immediately as we expect the program to be fully enrolled very soon! Blair Merlino Evan Allen Neal Ghosh

55

17 Comments

Here’s a question investors are often asked: When evaluating early stage companies, how much time do you spend on due diligence around future exits? It’s not surprising we hear this question a lot. Also not surprising: it’s got a wide range of answers depending on the firm. Some don’t spend much time here at all. Others make it a point to put meaningful time in as part of their process. Our current thinking: take the time to do the work on public market comps. At Alpaca VC, we spend significant time understanding how public market investors will  realistically value a business based on margin profile, product, business model & TAM. In short, we want to know: how will this company be valued at scale when we get taken out? Yes, we can acknowledge that the journey toward exit is a windy road and that there may be pivots along the way, but there are still public market companies that have a business model similar to the early stage company you're evaluating. And you can always look at gross profit multiples if you think the margin profile will change over time. So we still do the work on the comps. Quantitative metrics we look at when making the comparison to public market comps include EBITDA multiple, revenue multiple, Gross Profit multiple or all of the above. As part of this process, it’s also important to factor in the public market company’s year-over-year revenue growth as this will also significantly impact the multiple it trades at. Simple example: if you have two public market companies with similar business models and similar margin profiles, but one's growing 100% year over year, and one's growing 50% year over year, then obviously the DCF (discounted cash flow) analysis is going to spit out a very different valuation for the one that's growing faster. Why this matters: When you take all of that information into account as you evaluate an early stage business, you can begin to create a realistic picture of how this company will be valued in the public markets at exit - or how an acquirer will value the company for an acquisition. Strategic acquirers may, of course, pay a premium, but we won’t underwrite for that. This allows us, for example, to form conviction around valuation based on revenue and gross profit predictions. If we think they can do $100M of revenue five years from now, we use this diligence process to form a thesis about whether the characteristics above (product, margin, business model, etc.) will cause the company to be valued at $200M vs. $500M vs. $1B at exit. Curious how other early stage investors think about underwriting an exit and how much time they’re spending on public market comps even though these companies are in their infancy.

39

3 Comments

After the first deep dive discussion w/ founders I often hear a comment "I wish I had heard about this alternative [to all-in must-become-a-unicorn] way to build a startup earlier as I have wasted years in pursuing the wrong thing". Our mission is that no founder would ever need to say that again as it is such a waste. Us preaching the gospel 1:1 just doesn't scale, hence we use mass media to multiply our efforts - that's how Gorillacast came to be. The 1st episode is out, featuring yours truly. "How can you know what food you like unless you taste everything" said a chef. How can founders make informed choices about the best strategy for them to follow unless they know of all alternatives? This might not be of interest to you but pls spread the word so that the founders who should hear it can find it. I have a dream!

42

3 Comments

Power Grid is a board game that is a great tool for learning more about energy, the grid, and the power of renewable energy. https://lnkd.in/gHvsSPiD #energy #powergrid #gridoptimization

14

2 Comments

Vertical Exit Advisors: Official Launch and Mission Vertical Exit Advisors (VEA) will officially launch in Q4 of 2024 after several successful engagements over the past two years creating a foundation for the firm’s success. We specialize in collaborating with Founder/Owners, Private Equity and Venture Capital partners to create optimal exit/profitability strategies for both portfolio and non-portfolio companies. We started with several successful engagements prior to our launch and now look to formalize the offering for both company buy side sourcing and sell side activity. This provides alternative pathways to success for customers beyond billion-dollar mergers or IPOs, offering solutions prior to unicorn valuations and diluted ownership. These solutions include enhanced profitability for current leadership or pathways to exits for owners and founders along with buy side partners. Our Approach: Many companies need support in product development, go-to-market (GTM) strategy, or financial cleanup to position themselves for a successful exit or profits within 6-12 months. VEA addresses these needs by integrating experienced operators into your team to preparing your firm for an optimal outcome. Our network of PE, VC, and investment banking partners enables us to perform thorough health checks, ensuring that founders and owners have clear expectations throughout the engagement. We become an extension of your team and align to your goals whether creating a stronger company or pushing for an exit through our partners. The duration of our engagements varies based on your company’s status, but our goal remains the same: achieve the financial outcomes required by our founders, operators, and investment teams. Our Partnerships: VEA collaborates with some of the top PE, VC, and Consulting Teams globally to fulfill our vision. Building on the success we’ve experienced over the past two years; we are expanding our internal team and partner ecosystem. This expansion will enhance our capacity to prepare your company for successful outcomes, whether through M&A, improved EBITDA, or increased profitability. Leadership: Steve Gantenbein, the owner and operator of VEA, brings a wealth of experience from managing companies with revenues ranging from $5M to $250M and facilitating over $10B in exits. Over the past five years, Steve has worked in the Private Equity sector, providing expertise on mergers from $75M to over $1.5B. He is a Stanford University graduate with a strong background as an operator, executive, or advisory board member. What's next: We will be providing additional updates following this announcement leading to our formal launch in Q4, however, wanted to provide a preview due to our success prior to the formal launch.

24

4 Comments

What's the untapped opportunity in GP stakes? Hear 30 year asset management industry veteran Todd Owens, Co-Founder & Managing Partner at Cantilever Group, discuss why GP stakes has become a solution for asset managers and why the middle-market is an underserved and attractive segment of alternative asset management. Todd and I had a fascinating conversation on the latest Alt Goes Mainstream podcast. We discussed: * The evolution of alternative asset managers from Todd’s perspective as a banker to many alternative asset managers. * Why GP stakes has become a solution for alternative asset managers.  * Why and how alternative asset managers are businesses and why it can make sense for them to take investment to grow. * The benefits of GP stakes for investors and why the growing AUM of private markets means investors could benefit from exposure to GP ownership. * The risks and challenges with GP stakes as an investment strategy. * Why the middle market is an underserved and attractive segment in alternative asset management. * What the currency of consolidation will look like in alternative asset management. * What it means to grow and evolve a business as an alternative asset manager. Thanks Todd for coming on the show to share your wisdom and expertise on alternative asset management. Special thanks to our sponsor Ultimus Fund Solutions for their support of Alt Goes Mainstream. https://lnkd.in/gwdVUV7j

31

4 Comments

NFX is amazing. I love this pre-seed and seed funding team because they are the rare VC firm that provides innovative thought leadership in addition to financing. "NfX" stands for network effects, and they are particularly interested in partnering with startups and visionary teams that understand and center network effects in their products and services. The latest thought leadership article by NfX is titled "Why Great Bioplatforms Will Always Win." The key insight is that "a platform built on stellar IP and backed by a sharp business strategy is always “cool” because great platforms should make great assets. Full stop. It’s about balancing platform and asset development strategically. One should fuel the other and vice versa." You can find a link to the article in the comments. * the image below is from the NfX site

9

1 Comment