Marie Schildt

🌟Innovative VC Firm Overcomes Exits Drought with Secondary Sales🌟 ⛵Navigating a challenging landscape where exits are scarce, Santa Barbara Venture Partners (SBVP) has pioneered a novel approach to sustain its growth and attract investors for its second fund: secondary sales. Instead of waiting for traditional exits like IPOs or acquisitions, SBVP opted to sell shares of its portfolio companies, demonstrating its ability to generate returns for investors and stand out in a competitive market. 🎤According to Dan Engel, founder and managing partner of SBVP, these secondary transactions have been a game-changer, sparking investor interest and bolstering the firm's credibility. By leveraging its recent successes, including a lucrative stake in sports-betting company DraftKings Inc.' acquisition of digital lottery app Jackpocket, SBVP seized the opportunity to return profits to its limited partners (LPs) and pave the way for its second fund. 💡Engel highlighted the challenges faced by young VC firms in raising subsequent funds, particularly amid a downturn in exit activity and heightened investor scrutiny. With traditional exit routes becoming increasingly elusive, the pressure is on for firms to demonstrate tangible returns and establish a track record of success. ✨"For us, secondary sales have been a game-changer. They've helped us return profits to our LPs and attract investors for our second fund," said Dan Engel. 💰For SBVP, the decision to pursue secondary sales was driven by the need to provide liquidity to LPs and validate its investment thesis in the eyes of prospective investors. By strategically offloading portions of its holdings in high-performing portfolio companies like Bark Technologies and Rad AI, SBVP not only generated substantial returns but also bolstered investor confidence in its ability to deliver results. ⚠Despite the complexities and potential stigma associated with early share sales, Engel emphasized the importance of prioritizing investor returns and seizing opportunities to unlock value for stakeholders. With a focus on profitability and transparency, SBVP remains committed to its mission of delivering sustainable growth and maximizing returns for its LPs. 🔍 "Returning profits to our investors is our top priority. By strategically selling shares, we're proving our commitment to delivering results and driving value for our stakeholders," added Engel. As SBVP continues to explore secondary transactions and expand its investor base, the firm stands as a testament to innovation and resilience in the face of market challenges. 🚀 ✅ Looking to raise capital for your #fund and increase the international pool of your LP #investors?   🤝 Need warm #LP introductions?   📝 Selling #secondaries to increase liquidity?   🧐 Looking for co-investments?   ▶ G+QUANT's link for inquiries and fund decks: https://lnkd.in/gjC_EuTE #VCInnovation #SecondarySalesSuccess #InvestorReturns #ValueCreation 

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Super helpful article and accompanying doc with a #Startup #Equity Calculator to determine the equity for early hires, thanks to Pear VC head of talent Matt Birnbaum! Thanks for sharing Pejman Nozad! 🙏🏼 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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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!

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🚀 Excited to speak today at #SuperReturn Berlin - the "State of the Union: How can PE firms find new routes to value creation to thrive in the next wave?" panel!   I joined an esteemed panel: - James Zenni – ZCG - Hazeem Ben Gasem – Invest Corp - Michael Bruun – Goldman Sachs Moderated by Rachel Barton - Accenture   We've dived deep into: 1. How PE firms are re-imagining business strategies and operating models in a more mature and competitive landscape. 2. Whether private markets are still poised to outperform other asset classes. 3. How GPs will update their investment and value-creation playbooks.   ### My Main Thesis: 🔹 **Operators for Operators**: We excel in scaling tech teams from 10 to 100 to 1000 engineers and overcoming technological and operational challenges.   🔹 **Building Regional Hubs**: In a deglobalizing world, we help companies establish regional presences. Our UAE operations are becoming a bridge between large Middle Eastern companies and innovative startups from the Valley and Israel.   🔹 **Adopting Gen AI**: Startups are now categorized as Gen AI natives or non-natives. Those not adopting Gen AI swiftly will struggle to survive. The fastest adopters of Gen AI will gain a new competitive edge akin to the early adoption of personal computers and the internet.   🔹 **Talent Transformation**: The definition of talent is evolving. Gen AI will radically alter how we work and will demand new skills. Quick learners who adapt will benefit the most from Gen AI, which will revolutionize operations, business processes, and organizational behaviors.   🔹 **Data-Driven Future**: In the Gen AI era, all companies will become data companies. Service and product personalization will reach new heights.   🔹 **Future of Companies**: Technology will drive the next wave of value creation across all business verticals. By 2050, at least 50% of the Fortune 20 list will comprise companies that don't exist today.   Looking forward to discussing further these transformative trends and sharing insights on how to leverage Gen AI and technology to drive the next wave of value creation! 🌟   #R136 Ventures #PrivateEquity #Investment #ValueCreation #GenAI #TechTransformation #FutureOfBusiness #UAE #Innovation #Leadership

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A new era of deep tech has emerged. First time funds will raise “unheard of” amounts of capital to fuel next gen deep tech startups - producing outsized, superior returns for LP’s compared to the rest. Prudent investors will act on this data and shift investment strategy as LP’s or risk being left behind savvy wealth managers and CIO’s / FO’s who saw this trend begin 4 years ago.

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Shifting Fundraising Landscape: Should Founders Reassess the VC Path? For years, founders were advised to raise enough capital to last 18-24 months. But recent data from Carta suggests this is changing. Time between rounds is growing, and raising capital is becoming more difficult and costly. The VC Playbook: A One-Size-Fits-All? When capital was cheap and abundant, founders gravitated toward a model focused on rapid, top-line growth. The trade-off? (Significant) dilution in exchange for the potential of eventually owning a small slice of a large business. But as the economic landscape shifts, several critical challenges have emerged: Extended Fundraising Cycles: The growing gap between rounds means founders need to stretch capital longer, which can stall growth or lead to decisions around scaling back which in itself may impact the ability to raise again. Rising scarcity and higher Costs of Capital: Inflationary years and market corrections have made it more expensive to achieve the same milestones. The capital that seemed sufficient two years ago may now fall short. And capital is harder to access. These realities prompt an important question: have founders fully assessed the risks associated with the venture capital path? The truth is, not every business can—or should—scale at the aggressive rates that VC funding demands. Is There Another Way? A more sustainable approach is gaining traction—one that prioritises profitability earlier in the life cycle. For many founders, this could lead to a better risk-adjusted outcome. The Transition Challenge However, shifting from VC to a more private equity-style model isn’t easy. Many companies find themselves stuck—too slow for VC but not profitable enough for PE. At Resurge Growth Partners, we’ve noticed that more and more founders are asking these very questions and re-evaluating which path is best. We’re increasingly working with founders who are navigating this shift, helping them find the right balance between growth and profitability. It’s a conversation worth having. #ventureequity #privateequity #venturecapital

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Many VC firms have traditionally viewed their limited partners as their primary customers, but a growing number are answering the call to treat their entrepreneurs as customers instead. 🔄 ⏰ To quantify founder satisfaction, VCs are increasingly relying on Net Promoter Scores. Here's why: 🔸Simple yet powerful: Just 3 questions. One key metric. NPS digs deeper than vague satisfaction surveys. 🔸NPS correlates with growth across industries, and more than 66% of Fortune 1,000 companies are using it. 🔸Actionable feedback: From marketing support to check size expectations, founders provide insights to help VCs move beyond platitudes. 🔸 Practice / Preach: Many VCs encourage founders to use NPS with their own customers.. TDK Ventures leveraged NPS scores to measure founder feedback - receiving an 80% response rate, reflecting the value of this tool for investors and entrepreneurs. 🌱🤝🌍 Nicolas Sauvage even provides a turnkey guide on how to implement at your fund :) Harvard Business Review #VentureCapital #VC #NPS #LimitedPartners

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"Industrial software trades with less volatility and at a premium multiple to broader SaaS comparables" 🏭 🤖 As industrial tech investors, Onur Canlitepe and I are observing that our early-stage investments have >90% survival rate (over 7 years, despite investing in the earliest stages) with 2/3rds receiving follow on investments. We think industrial tech investments offer higher stickiness, more steady but perhaps less explosive growth (e.g. compared to some consumer-facing software/apps). As Atlas Ventures, we believe that industrial tech investments can offer a different risk-reward profile to LPs within the VC asset class. Perhaps this is the reason why industrial tech companies are trading at a higher multiple in public markets compared to general SaaS.

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What does it take to raise capital for SaaS companies now according to Jason Lemkin (SaaStr) Key Takeaway 1: The current venture capital landscape is experiencing significant changes, particularly driven by the rise of AI. Investors are increasingly focused on finding "decacorns" (companies valued at over $10 billion) in the AI space, as traditional software companies are no longer seen as sufficient for generating massive returns. > Agree, its a generational new sector that will change the world in the short to medium term Key Takeaway 2: There's a growing trend of large investments in AI companies, even those without established revenue or customers. This is exemplified by Elon Musk's new AI company raising $6 billion and OpenAI's rapid growth. Investors are making high-risk bets on potential AI breakthroughs, driven by the need for outsized returns. Key Takeaway 3: Established venture capital firms and investors are pivoting their focus towards AI. SoftBank is raising a $9 billion fund solely for AI investments, while prominent hedge fund manager Steve Cohen has restructured his venture fund to concentrate exclusively on AI opportunities. > This signals huge momentum of capital, a good but wary signal. Overall a very good signal. Key Takeaway 4: The AI investment trend is not without skepticism. There's recognition that some companies may be falsely claiming AI capabilities to attract funding. However, real-world applications and significant deals, such as Palantir's $480 million AI contract with the US Army, demonstrate the tangible potential of AI technologies. > As with any new exploding trend, be wary always. Key Takeaway 5: The venture capital industry is under pressure to find and invest in potential decacorns, as traditional software companies, even successful ones, are no longer considered sufficient for generating the massive returns required by large VC funds. This shift is causing stress and driving the focus towards high-potential AI startups. > Power law distribution and math doesn't lie (that much). https://lnkd.in/gHe8tW2E

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🔋 #TodayinVC - All of the biggest deal announcements in venture capital - July 18th, 2024. Sourced from Litquidity's Exec Sum. 💰 Fundraising Announcements: - Coatue, General Catalyst, Sequoia Capital, TECH WEEK by a16z and others acquired secondary shares in design software maker Figma at a $12.5B valuation (BBG)  - Aven, a startup offering credit cards backed by home equity, raised a $142M Series D led by Khosla Ventures and General Catalyst (BW) - Apple device management platform Kandji raised a $100M round at an $850M valuation from General Catalyst (TC) - B2B payments platform Slope raised $65M from J.P. Morgan and others (BW) - Amity Solutions, a Thai software and AI business, raised a $60M Series C led by Insight Capital and SMDV(PRN) - Peak Energy , a low-cost, giga-scale energy storage tech, raised a $55M Series A led by Xora Innovation (PRN) - Healthcare privacy platform Freshpaint raised a $30M Series B led by Threshold Ventures (FN) - escala, a CRM for Hispanic SMBs, raised a $12M round led by IGNIA Partners and ALAYA CAPITAL (PRN) - AI-based supply chain management platform Didero raised a $7M seed round led by First Round Capital (TC) Congrats to all - what #startups do you have your eyes on? 👀 Follow @Today in VC for daily #venturecapital news! 📆

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Congrats to Eniac Ventures seeded Nirvana on their big A! 🚀 "Nirvana, a startup aiming to give health care providers and consumers the price of treatment before an appointment, raised $24.2 million in Series A funding, it tells Axios exclusively. Why it matters: The raise comes amid a push for greater transparency in health care bills, with one new government rule put into effect in 2021 and more being considered today. What they're saying: "In some weird behavioral way, people were used to the fact that you would sit in a waiting room for six hours and get the bill six weeks later," says Nirvana CPO Kelvin K Chan. "Looking back, that's incredibly strange and archaic, but I think that mentality is starting to shift." How it works: Embedded into health care providers' websites, the software reduces the chances that an insurance claim will be denied after the fact. It does so by using the patient's name, date of birth, and ZIP code to verify a consumer's coverage, Nirvana says. Traditionally, providers required the insurance ID card, which the company's executives say is susceptible to human error. Combining that with information from the provider about the consumer's condition, Nirvana offers an estimate of the appointment cost at the time of booking. Northzone led this round, joined by Inspired Capital, Eniac Ventures and Surface Ventures." Akshay Venkitasubramanian https://lnkd.in/ewznnP3y https://lnkd.in/ey4DPNBE

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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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Summary: J2 Ventures, a firm led by U.S. military veterans, has raised a $150 million second fund to invest in startups whose products serve both civilians and the U.S. Department of Defense. The firm focuses on companies with technologies that benefit the health and well-being of military personnel. Key takeaways: J2's latest fund is more than double their debut fund, despite the struggles of many other emerging VC firms to raise second funds. The firm does not position itself as a defense tech investor and instead focuses on technologies that support the health and well-being of military personnel, historically adopted by the Department of Defense before civilians. J2's investments include healthcare, cybersecurity, and advanced computing startups, and its limited partners include JPMorgan and New Mexico State Investment Council. Counter arguments: Some may argue that J2's focus on companies serving both civilians and the Department of Defense could create conflicts of interest, as the two groups may have different priorities and needs. Some may view J2's investments in healthcare as too narrow of a focus, limiting potential growth opportunities in other industries.

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#fundingalert 💼Company: HyLight (YC S23) 💰Funding: €3.7 Million ⚡Round: New Round 👥Investors: Y Combinator, Ring Capital, Kima Ventures, Collaborative Fund, and Marc Tarpenning. HyLight aspires to improve our societies’ ability to withstand the consequences of climate change by focusing on the critical process of observation and inspection for a deeper comprehension of their surroundings. The money will also enable the business to hire additional specialists in a number of domains, including software development, industrialization, mechanical engineering, embedded systems, hydrogen systems, and aviation regulation. Martin Bocken, Myriam Maestroni, Gaspard Martin, Sibylle Behaghel Read more - https://lnkd.in/gybezwAF To share your startup story write us on - [email protected] #HyLight #climatetech #industrialization #mechanicalengineering #softwaredevelopment #funding #startupnews #fundingnews #news #startuprise

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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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On this week's Andreessen Horowitz Raising Health podcast, Vijay Pande, PhD and I interviewed Tom Hale, CEO of ŌURA. Our conversation spans lots of fun topics, including: -- Our love for our Oura rings, despite them being literal “buzz kills” in revealing the ruinous effect of alcohol on sleep  -- How the worlds of consumer and healthcare are merging, as consumers essentially now have access to clinical-grade wearable devices  -- How AI algorithms are deployed in wearable devices & what wearables might look like 20 years from now (implanted into our bodies and clothes)  -- How the sexiest people sleep in earplugs and eye masks Check it out! https://lnkd.in/eTAsX_sY

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A good dataroom makes a great impression, but is not that obvious what that looks like and what consumer VCs are looking for! Having gone through hundreds of these at dmg ventures and seen the good, the bad and the ugly we want to help entrepreneurs putting their best foot forward. So Taos Edmondson, CFA wrote a great piece on how B2C founders can build data rooms that investors will love. Have a read!

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I recently saw this metric from Carta’s 1Q24 VC Fund Report, which is very concerning. DPI... is nowhere to be found in earlier vintages that probably should start showing DPI. Funding early-stage projects is great, but ultimately, these venture dollars need to exit their investments and pay back their limited partners. That’s where the metric Distributed to Paid-In Capital (DPI) comes in. While managing a fund, we get interim measures during the life of the fund (e.g. IRR, MOIC), but ultimately, “you can’t eat IRR.” If you want to build a lasting venture capital organization, you need to start showing DPI for your fund. Keep in mind that this is traditional VC data from Carta, and is not strictly crypto venture. Crypto venture tends to get liquidity earlier (tokens) and things tend to go parabolic sooner (faster, more unicorns) - but I’d wager that the data here is somewhat similar for Crypto VCs… Not as much DPI as there should be from these earlier vintages. Read the full article, as well as a recap of all the crypto fundraising rounds for August, here: https://lnkd.in/g3eVJ-iF

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