Lacey-Ann Wisdom

Seed VCs are turning to new ‘pro rata’ funds that help them compete with the big firms Alpha Partners, SignalRank and now SaaS Ventures help seed VCs pay for shares when big VCs try to price — or push — them out Lee Edwards, partner at Root VC, has a saying at his firm that “pro rata rights are earned, not given.” That may be a bit of a stretch since pro rata refers to a term that VCs put in their term sheets that gives them the right to buy more shares in a portfolio company during consequent funding rounds to maintain an ownership percentage and avoid dilution. Still, while these rights are not exactly “earned,” they can be expensive. One of the latest trends in VC investing these days are funds dedicated to helping seed VCs exercise their pro rata rights. https://lnkd.in/dRM3RvdA By Christine Hall

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Interesting data and good work from Carta in their inaugural VC fund performance report analyzing benchmarks for more than 1800 funds across six recent vintages - https://lnkd.in/e5R_dhXp Take a look at the pace of investments. As expected, capital deployment has slowed since the 2020 peak, with 2022 funds only using 43% of their capital after 24 months, down from 60% in 2020. This trend seems broadly consistent across private company and fund investing, with GPs and their LPs being more cautious and selective with capital allocation. Raising capital is tough today. Full stop. It's easy to focus on that, but I'd encourage us all to instead consider and focus on what is less talked about - that this cautious approach has created a large amount of available capital aka "dry powder," dedicated and ready to support special founders. The best founders are aware of private market dynamics, which impact the time needed to raise rounds and the milestones they must hit to successfully do that, but their primary focus is always the mission and the customers they serve. They are committed to building products to solve their customers' problems regardless of what us investors think. Building generational companies is never easy, but many have been and will continue to be built in tough markets. I try to take a similar approach in supporting founders. That doesn't mean ignoring market conditions, which can greatly impact my investment decisions and outcomes, but like focused founders, I know it makes more sense to dedicate my limited daily energy to what I can control. That means finding and supporting founders who are transforming or creating markets and doing everything I can to help them win, no matter what the market is doing. I hope to collaborate with many doing the same. Have a great week and see you out there! Note: These thoughts and opinions are solely mine and and mine alone. They do not reflect and are not associated with any company I am part of.

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Q3 is out and Q4 is in!  This is a great read about Base10's strategic switch showcasing how Carta is simplifying fund administration for emerging managers, which is especially important now rolling into the year-end busy season. 

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Great episode for early stage VC's and capital allocators to check out. https://lnkd.in/ekz7JHJd #vc #fundraising #venturecapital

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Super helpful #Startup #Equity Calculator to determine the equity for early hires, thanks to Pear VC head of talent Matt Birnbaum! Thanks for sharing Pejman! 🙏🏼 You can read more here How to structure startup equity for early hires: https://lnkd.in/ggmpT5-Y Google Doc: https://lnkd.in/gjsvths6

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Want a front-row seat to the frontier of tech? We’ve got the role (or two) for you! We’re expanding our frontier-tech team at Blackbird by hiring a Frontier Tech Investments Associate and Foundry Fellows! Got questions? We've got answers... 1️⃣ What are the roles? 🧪 Associate = a full-time VC investment gig in our Blackbird Investments team, working directly with me. We’re looking for someone with a science and/or engineering background and more curiosity than they can handle. You’ll grow your own investment brand and practice, support our portfolio founders, and will help build Foundry, our early-stage frontier-tech accelerator. ✨ Foundry Fellow = a casual/contract gig in our Blackbird Investments team, ~15h per week for 3 months. The Fellowship is ideal for PhD students and ECRs who want to learn more about startups and VC. You’ll go deep on emerging areas relevant to your expertise (or curiosity!), get a front-row seat to groundbreaking companies in those areas, build out your non-academic network, and develop a solid writing practice. 2️⃣ Why are you hiring? We love frontier tech, and we’re ready to grow our team. 3️⃣ Wow, it’s so great that you’re starting to look at deep tech! Look, we get it: we don’t make a lot of noise about our frontier tech investing. Buuuut we’ve been deep-tech investors since we backed Tim Kentley-Klay to found Zoox back in 2014—we’ve been on incredible journeys with PsiQuantum (building the world's first utility-scale quantum computer right here in Australia!), Inventia Life Science (transforming drug discovery with high-fidelity cell models), Remedy Robotics (surgical robots for remote endovascular procedures), Opto Biosystems (minimally-invasive neural implants to treat cancer), and more. We believe that frontier technologies, and great frontier-tech investing, will be part of the solutions to the greatest problems humanity faces today. 4️⃣ When do applications close? May 31st at 11:59pm AEST. 5️⃣ I have more questions! I’m sure you do! Clare Birch and I are hosting an AMA to answer any and all questions about these roles. Want to know what a week in the life of our team looks like? What’s keeping us up at night? What our ideal candidate looks like? Come along and find out - registration link in the comments 👇 Apply for these roles: Associate - https://lnkd.in/gCfj4EUJ Foundry Fellowships - https://lnkd.in/gj6ATZVZ If you know anyone that we should meet, send me their details! Cameron Elise Ben Andrew Robin Joseph Adelaide James Olivia Lucinda Raghav Jesse Christie Mohamed Tom Amee Pablo Haya Loong Hon Joshua Benjamin Megan Harry Denzil Matthew Diana Daniel Tom Deanna Justin Amar Lilly Stone Thomas

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Summary: Keith Rabois, managing director of Khosla Ventures, is on a mission to turn Miami into the next Silicon Valley and has been actively promoting the city as a tech hub. Despite some challenges and opposition, Rabois remains optimistic about Miami's potential and the growth of its tech ecosystem. Key takeaways: Keith Rabois is determined to make Miami the next Silicon Valley and has seen progress with a growing number of seed investments in the city. Khosla Ventures, where Rabois works, has made multiple investments in Miami, including one into a startup aiming to "reinvent education." Rabois continues to split his time between Miami and San Francisco, but believes that Miami offers a better quality of life and potential for building a thriving tech community. Counter arguments: Some big name investors, such as Andreessen Horowitz, have pulled out of Miami, suggesting that the city does not offer the same opportunities as other established tech hubs. Miami still has a relatively small share of total U.S. seed investments (2.6%-3.5%) which may indicate a lack of resources and opportunities compared to other cities. #venturecapital

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Please check out my latest newsletter where I share insights from Carta's "State of the Private Markets: Q1 2024" report: 📉 New funding rounds down by 29% from last quarter, with bridge rounds dominating seed and Series A financing. 📈 Down rounds surged to 23%, reflecting market challenges but also opportunities for resilient startups. 💰 Despite fewer deals, total cash invested increased to $16.3B, with the West region leading VC investment. ⏳ Median time between rounds is increasing, impacting startup runway and strategy. Plus, learn about Oklo Inc's SPAC debut and the latest research on immigrant entrepreneurship's impact on innovation. Read the full report for in-depth insights: https://lnkd.in/g7Q3Ud34 #PrivateMarkets #VentureCapital #StartupTrends #EconomicIndicators #Innovation #Carta #Oklo #Entrepreneurship #InvestmentTrend

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I'm excited to announce that Canapi Ventures has led OpenYield's seed round. OpenYield is redefining how bonds are traded and who gets to trade them. Despite being one of the largest global asset classes, fixed income has long lagged behind equities in terms of innovation. Outdated systems, fragmented liquidity, and barriers to access have made bond trading inefficient, opaque, and inaccessible to many, particularly retail investors.   OpenYield is changing that. By delivering an equity-like trading experience for bonds, the platform transforms the fixed income market into a space defined by transparency, efficiency, and access. With real-time pricing, seamless execution, and intuitive workflows, OpenYield is making bond trading easier and more effective for institutional players, market makers, and retail investors alike. This progress wouldn’t be possible without the exceptional leadership of Jonathan Birnbaum and Hilton Lipschitz, whose decades of experience in capital markets and fintech have earned them the right to build a category leader in this market. Also hard to believe that meeting Jonathan over 20 years ago led to this partnership today!   For Canapi’s network of financial institution LPs, OpenYield represents an exciting opportunity to enhance wealth platforms, attract new client assets, and deepen advisor relationships. As the competition for wealth clients intensifies, access to efficient fixed income trading will be a critical differentiator, delivering real value for customers and strengthening client loyalty. Thrilled to be partnering with Ben Savage and Ned Daoro at Clocktower Ventures. Shoutout to Harrison Kioko. More thoughts on our investment thesis here:

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Non-Engineering Roles at Early-Stage Startups Offering $120K+ Base Salary with Meaningful Bonus and Equity: Chief of Staff @ Milo (Consumer), Remote Biz Ops Lead @ Fractal Agriculture (FinTech), Remote; Backed by Virta Ventures Chief of Staff @ CakeAI (AI SaaS), NY; Backed by Primary Venture Partners Demand Generation Specialist @ Rootly (Consumer), Remote; Backed by YC, 8VC, Gradient Ventures Account Executive @ CommandBar (Enterprise SaaS), Remote; Backed by Soma Capital, YC, Insight Partners Product Marketing @ Slope (Enterprise), Remote; Backed by YC, Union Square Ventures, Liquid 2 Ventures Supply Planning Manager @ PROVEN Skincare (Consumer), Remote; Backed by YC, FJ Labs, Soma Capital, Social Capital Account Executive @ Accrue Savings (Consumer), NY; Backed by Ground Up Ventures, Tiger Global Chief of Staff @ UNIGRID Battery (Climate), CA; Backed by Union Square Ventures, LiquidMetal Ventures Job details and the full list (40+ opportunities) are in the comments below. If you're interested in non-tech jobs focused on specific industries like HardTech, HealthTech, Climate, etc., then DM me or let me know in the comments.

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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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I’ve aggregated a list of 50+ VC roles in one spreadsheet. It’s updated weekly and can be filtered by location, position, firm, etc. Check out the latest list here (as of June 24th) 👇 https://lnkd.in/dRC3XtjS Tag someone who needs this in the comments 💭 — Want a quick snapshot? Here are a few of my favorite postings: Associate, M12, Microsoft's Venture Fund Link: https://lnkd.in/eNFaaSBy Associate & Principal, Wischoff Ventures Link: https://lnkd.in/gu6Mun7p Consumer Investor, Stripes Link: https://lnkd.in/eZdRk6jV Venture Lead, Struck Studio Link: https://lnkd.in/exGcNHJ5 New Ventures Associate, Live Nation Entertainment Link: https://lnkd.in/e3mBYGCt — I’m creating more tools, guides, and other free resources for Junior VCs to (1) 2x their network and (2) carve their path to partner. If you found this helpful, check out the Venture House website for more 👇 https://venturehouse.xyz/ #venturecapital #startup #recruiting #hiring

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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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Summary: Bolt's CEO has threatened legal action against an investment bank involved in their recent fundraising efforts, claiming they signed a binding term sheet for $200 million but did not follow through. Key takeaways: Bolt's CEO believes there was miscommunication at Silverbear Capital, one of their lead investors, leading to confusion about the fundraising deal. A leaked term sheet showed Bolt trying to raise $200 million in equity and $250 million in marketing credits, with a unique pay-to-play structure. The involvement of Silverbear Capital and The London Fund in the deal remains unclear. Counter arguments: Silverbear Capital's partner insists there was no miscommunication and the deal was never discussed or approved. The London Fund has confirmed discussions with Bolt's management but denies any finalized transaction. #venturecapital

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LP Tip #11 of #50: A data room is used as a proxy for institutional potential Before we dive in please review the following: ➡️ This post is aimed at a GP of a Fund I which is why there is no mention of quarterly letters, financial statements, etc.  ➡️ LPs run different diligence processes which means that some may prefer a comprehensive data room while others want specific documents.  ➡️ An institutional investor and/or sophisticated family office will request a data room if you move to the diligence phase.  ➡️ Great data rooms stand out. 1️⃣ What is the point of a data room?  Your data room will house materials (strategy, operational, financial, legal) on the fund. The goal of sharing your data room with an LP is to help that LP get smarter on your fund. An LP will also refer back to the data room to write their investment memo. 2️⃣ When do I share my data room?  I suggest you understand the process of each LP you meet with. And, follow their lead when they want materials. It is important to keep in mind LPs have hundreds of funds they are culling through. Below are items that I like to see in a data room. 10 Components of a Data Room  1️⃣ Long Form Pitch Deck - This is self-explanatory.  2️⃣ Detailed Track Record - I learn so much about you as a fund manager by how you present this information and what you choose to present.   3️⃣ Sample Investment Memos - I expect you to include at least 2 memos.  4️⃣ Due Diligence Questionnaire (DDQ) - Typically, this document compiles answers to frequently asked questions. I love seeing one in the data room but I don’t require it.  5️⃣ References List - Please refer to LP Tip #4 regarding on-book references.   6️⃣ Service Provider List - This includes legal counsel, fund administrator, cybersecurity, etc.   7️⃣ Portfolio Construction Model - I am looking to see whether the math works and your assumptions make sense. 8️⃣ Budget - This is a spreadsheet that includes your salary, tech stack expenses, etc.  9️⃣ Org Chart & Team Bios - This is self-explanatory.    🔟 Legal - This includes documents such as Summary of Terms, Limited Partner Agreement, Sub docs, side letters, etc. ➡️ Compliance does not equal Quality:  The majority of new managers check the box on the components listed above but miss the mark on creating a great data room. I am looking for a well organized and substantive data room. For example, the order or labeling of folders in the data room should be intuitive. I want to quickly retrieve the information I need. It shows when a manager puts little effort into the data room. Please keep in mind I see hundreds of data rooms so I am constantly comparing data rooms to one another. Putting together a quality data room isn't rocket science, but it requires time. A well structured data room instills confidence in your fund and gives an LP more insight into how you may go about running your firm. Tomorrow, I'll be back to share red flags in data rooms.

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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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The state of venture capital is wild right now. We are witnessing a surge of innovation across the spectrum: - Funds merging - VC doing PE - PE doing VC - Secondary funds - Buyout funds - Spin-out funds - Debt funds - Continuation funds - Infrastructure funds - GP turnover - Hard Tech surging - Family Office uptick

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⛳ Emerging fund managers pulse check. PitchBook tracks over 10,000 funds that are raising money, with 45% being emerging fund managers (defined as firms with less than 3 funds). Despite a dip in available capital—down to 16% from the pre-pandemic 23%—these managers are finding creative ways to stay competitive, like partnering with larger firms. 💼 Joanna Drake (founder turned investor) shared how "wildly different" it is raising a fund versus for a startup. One key datapoint she shared on the fund side was how little feedback you get along the way (and the years you can wait for it). The “long-winded and challenging process to raise capital” inspired Drake and Ben Black to create RAISE Global, a community for emerging fund managers and the “forward-thinking LPs” who back them. (A decade later, several hundred emerging managers with AUM under $200m are on the platform) They've found the newest emerging managers are more diverse and geographically dispersed than Silicon valley, and more were able to crack the ceiling and raise larger $100m funds (although this is still a small % of the market, requiring partnership with larger funds at the late stage). ▶ And not a hugely surprising datapoint: A lot of action is in the sub $49 million range, where roughly 50% of emerging managers are raising. Theresa Sorrentino Hajer, Head of U.S. venture capital research at Cambridge Associates warns that past success isn't actually a strong indicator on it's own to assess emerging managers. We've had a valuation reset. And newer managers with investments during the 2019-2021 "party days", need to build relevant track record and play to their strengths. A lot of emerging managers are specializing (70% who applied for Raise had a thematic focus), and betting on getting in as early as possible in the startup's lifecycle (Raise: 31% at accelerator/ pre-seed stages, and 47% at seed stage). “Emerging managers have to compete on a different dimension,” Nick Moran from New Stack Ventures. You're no longer just dealing with capital. Emerging VC's need to be as innovative and nimble as the startups they invest in, having a unique thesis and insights. They also play a role at the top of the deal-flow funnel: helping larger firms find promising companies, so finding a thesis, sector or philosophy aligned partner at a larger firm is helpful. Onwards! #EmergingManager #Startups #VC

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