Maxine Minter

The Evolving Landscape of Pro Rata Rights in VC Funding Lee Edwards of Root VC underscores the importance of pro rata rights for venture capitalists to maintain their ownership stakes during subsequent funding rounds, despite potential costs. Specialized funds, such as Alpha Partners, SignalRank, and SaaS Ventures, have emerged to assist seed VCs in exercising these rights. However, later-stage lead investors and founders' efforts to limit equity sold in each round complicate early investors' participation. Early investors often rely on the advocacy of founders, which depends on the value they provide, and sometimes opt out of exercising their pro rata rights due to high valuations or an inability to keep up with larger funds. The pro rata rights landscape is evolving, with specialized funds gaining momentum to support early investors and founders. This trend is crucial as the number of later-stage deals decreases, emphasizing the significance of pro rata rights. The first quarter of 2024 saw a sharp decline in VC funding, highlighting the challenges faced by smaller funds. Experts like Steve Brotman advocate for doubling down on successful investments, while angel investor Jason Calacanis regrets not leveraging pro rata rights earlier, recognizing their potential for substantial returns. Overall, pro rata rights and strategic investments are becoming increasingly important in navigating later-stage funding complexities. # Thank you Ludmila Petrovich for your submission!

Is the Equity Crowdfunding Model a Better Alternative to VC Funding? 👉 In a nutshell, Equity Crowdfunding allows promising companies to secure funding from the crowd, offering shares in return. It's like Kickstarter, but backers become shareholders. Exciting, right? Key Takeaways from this article: 1. Transparent Fundraising: Be open about your company's performance and finances. A solid business plan and legal groundwork are crucial. 2. Platform Selection: Choose wisely! Platforms vary in due diligence, fees, and support. Opt for one aligned with your business values. 3. Costs Involved: Yes, there are fees, but the investment in legalities, platform fees, and consulting ensures a healthy, organised campaign. 4. Fundability Criteria: Assess your company's readiness. Revenue generation, prototypes, and endorsements enhance fundability. Cons to Consider: 1. Control Dilution: Issuing equity to numerous investors may dilute founders' control and ownership. 2. Regulatory Challenges: Compliance with regulations involves complexity and costs, especially for startups. 3. Performance Pressure: Wide investor base leads to heightened expectations, demanding robust performance. #EquityCrowdfunding #BusinessFunding #InnovationJourney #EntrepreneurshipInsights

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I think Elena Lipilina and I could stay 2 more hours talking! It was great to be with you in Femtech Real Money Talks. Sharp questions, demystifying some concepts and having fun! She could also make me confess one of my biases when evaluating founders to invest in (we all have biases, some of us are aware of it). Oh, and in the end, I recommended a dear friend to be one of the next guests in the podcast. Who is it? #angelinvesting #startups #femalefounders #founders #innovation #funding #fundtheworldyouwant #coreangels

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What’s happening in healthtech? 💊🎉 💪 Hapana raised US$17M led by OIF & Bailador to grow its SaaS for fitness bizes 🩺 Australian Medical Angels bagged $300k from LaunchVic to launch a new VC fund for early-stage health startups 🧬 Proto Axiom got $20M for its incubator to invest in early-stage biotech ventures 🧠 Kinoxis Therapeutics Pty Ltd Therapeutics, raised a $14.5M Series B for Phase 2 trials of its drug candidate 👁️ Eyeonic closed $2.6M for its AI-enabled home glaucoma tests 🔨 Bunnings is trialling blood pressure stations in 30 stores 🚀 Startmate announced their Winter ’24 Accelerator cohort, ft. 3 of our amazing Private WTH community members: PREVE, Tendl & Trova Health 💧 Aussie hospitals face an emergency as IV saline drip shortages force fluid rations 🏥 Medibank announced plans to acquire Pinnacle Health Group, a leading corporate health & wellbeing provider 🩺 nib Group launched hubPass for Business, a subscription service by Midnight Health 🍬 Breathe Life Sciences (BXN:ASX) is Aus’s first manufacturer of pharmaceutical-grade THC gummies with TGA approval 🦠 Long covid, affecting 10–20% of recovered patients, cost the Aus economy nearly $10B in 2022 🧪 The Senate's doing an inquiry into "forever chemicals" (PFAS) over health & environmental concerns 👂 Gold Coast Health partnered with Lyrebird Health to trial an AI-powered ambient listening solution to automate clinical docs 🏛️ The Fed Gov passed the NDIS reform bill amidst controversy 🏅 Aussies are Winning the Longevity Game? 🏅 Researchers found Aussies live 1-4 years longer than those in 6 English-speaking countries. This edge is supposedly driven by lower death rates from treatable diseases, healthier lifestyles, & a high migrant population, with the biggest gains seen between ages 45-84. Keen for the links & delicious deets?? 🍩🙌 Take a gander at last week's newsletter in the comments below👇😊 --- PS - if you liked this and are keen to join >8200 legends getting the latest in health tech and innovation dropped direct to your inbox, subscribe to my newsletter, What The Health linked in the comments below! 💜 📩 #healthtech  #health  #healthcare  #digitalhealth  #medtech  #biotech

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The ability for founders in any industry to take smart risks often comes down to a balance of proactivity and adaptability. Create a solid foundation that can withstand the inevitable changes in the future landscape (whether regulatory or otherwise). Great things to keep in mind and great post by Eitan Hoenig. #LawFirmManagement #FounderMindset #Innovation #Startup

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The market for startup secondaries has seen a dramatic shift this year. Discounts on secondary shares, once averaging 50% below a company’s last funding round valuation in early 2023, have shrunk to just 12% as of September, according to data from Zanbato. Here's a snapshot of what's driving this trend - 🔹Secondary investors capitalized on steep discounts during the downturn, and now more buyers are entering the market, which is rebalancing supply and demand. 🔹VCs have embraced the opportunity, registering as investment advisers to allocate more funds to secondaries. 🔹High-growth startups are reportedly running offers at valuation premiums, showing confidence in the reopening of the IPO window. This all suggests a sense of renewed optimism, with secondaries changing from a discount-driven market to a reflection of growth, and the anticipation of liquidity. As the market works toward finding equilibrium, the question to focus on now is how this will impact startups, employees, and investors in the coming year. For more, check out this PitchBook article on secondaries - https://lnkd.in/gCCPvjTp #mergersandacquisitions #siliconvalley #vc #innovation #venturecapital #startups #foleyforward #garage2global Foley & Lardner LLP

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🔥 Attention: Visionaries & Builders in MENAP region 🔥 🚀 This call is for all Aspiring VCs and Angel Investors in the MENAP region! Are you ready to level up your Venture Game? Join us for this value packed, invite only, 2-part Masterclass - Venture Investing for Angels - where we’ll dive deep into the essential principles of venture investing. Gain insights that can save time, money, and risk as you navigate this exciting space! Masterclass Details: 📅 Dates: December 13th & 14th @ 4pm (KSA/Egypt), 5pm (UAE), 6pm (Pak) & 9pm (SG time) 📍 Platform: Zoom 🎙 Host: Angel School 🤝 Partner: YouPitchLive Register Now ➡ https://lnkd.in/gsR38CB7 Jed N. who is the founder of Angel School is a self-taught angel investor with 2x unicorns in his portfolio and millions invested, He’ll share his top strategies: 1️⃣ First Principles of Angel Investing 2️⃣ Venture Math Essentials – Fundraising, Dilution & Valuations 3️⃣ Startup Evaluation Frameworks – Making confident, data-driven decisions Don’t miss out on building your strong foundation in venture investing. See you there! Register Here ✅️ https://lnkd.in/gsR38CB7 #startups #angelinvestors #venturecapital #vc #angels

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Join for free 500+ family offices, VCs, venture studios, founders & angels on Zoom at the 𝐀𝐏𝐀𝐂 𝐅𝐚𝐦𝐢𝐥𝐲 𝐎𝐟𝐟𝐢𝐜𝐞 & 𝐕𝐂 𝐎𝐧𝐥𝐢𝐧𝐞 𝐂𝐨𝐧𝐟 on Sept 20th. Buy network & recordings: inniches.com/apac. Must-attend if you’re investing/fundraising/partnering with Singapore, Australia, India, China, Indonesia, New Zealand, Thailand, Malaysia, South Korea, Taiwan, Hong Kong, Vietnam, Philippines & other Asia-Pacific countries. 1. How does our Single Family Office evaluate venture funds & startups? – Nitesh Aggarwal, CIO @ SFO Fund, AUM $130M, invested in 38 funds & 27 startups. 2. Panel "VC Trends in APAC in 2024" with Nruthya Madappa, Partner @ 3one4 Capital, $520M+ AUM; Ashwin Raguraman, Co-Founder and Partner @ Bharat Innovation Fund, Fund I - $100M. 3. How GPs can leverage and work with their LPs to drive more value to the investment portfolio? – William Bao Bean, Managing GP @ Orbit Startups, Chinese VC with $180M+ AUM. 4. Why and How I Invested in 315 YC Companies? – Yotam Rosenbaum, Partner @ Access Fund, raised 6 funds and invested in 315+ Y Combinator startups. 5. How to fundraise from Family Offices? – John Milanovich, Director @ Family Office Club, #1 ultra-wealthy investor club incl. 7,500+ investors: Family Offices & UHNWIs. 6. Panel "Ways to Partner between Family Offices, VCs, and Venture Studios" with Sheetal Khullar, Growth Lead & Sustainability Expert @ FutureLabs Ventures, Venture Studio & VC with 30+ multi-$100M high-growth ventures. 7. How to fundraise for the venture studio and set up relationships with investors? – Farhad Alessandro Mohammadi, CEO @ Mamazen Startup Studio & IH1, Italian venture studio with €4,5M raised and €6M own funds. 8. Venture Building and Investing in the New Economy for Traditional Family Offices – Harshit Joshi, Founding Partner @ Favcy Venture Builders, venture-builder with 30+ portcos and go-to platform for 5,000+ angel investors and family offices. 9. Panel "Family Office Allocation Strategies: in What Assets do APAC Family Offices invest?" with Shiraz Poonevala, Director Investment @ GP Group. 10. Panel "How AI is changing venture building" with Toby Cox, Partner & Chief Venture Technologist @ Paloma Ventures , portfolio valued at $250M+. 11. The Transformation Factor for Breakthrough Startup-Team Performance – Ariya Chittasy, Director @ Engenesis Ventures, Australian Venture Builder that has worked with 800+ startups. 12. Why venture studios might be interesting to Family Offices in the APAC region? – Keirn O'Connor, Single Family Office. Other speakers and moderators: Kate Park, Reporter @ TechCrunch; Leesa S., Managing General Partner @ R3I CAPITAL; Jeremy Au 区汉辉, COO of Lucence & Host of BRAVE Southeast Asia Tech podcast; Sunil Goyal YourNest Venture Capital; Subham Panda @ Xartup. More speakers will be announced soon. Tag relevant VCs, family offices & founders in APAC.

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𝗧𝗵𝗲 𝘀𝗲𝗰𝗿𝗲𝘁 𝘁𝗼 𝘀𝗲𝗰𝘂𝗿𝗶𝗻𝗴 𝘀𝘁𝗮𝗿𝘁𝘂𝗽 𝗳𝘂𝗻𝗱𝗶𝗻𝗴! ✅ This week, I have been sharing valuable insights on 𝘴𝘵𝘢𝘳𝘵𝘶𝘱 𝘧𝘶𝘯𝘥𝘪𝘯𝘨. Today, I'm delighted to reveal the ultimate game-changer: Creating a persuasive investor pitch. The #1 reason startups fail to secure funding is not the idea, team, or market. It's the inability to effectively communicate their vision. A persuasive investor pitch will lead to funding, but there are essential elements to make your pitch unforgettable. Some of which are; ✅ 𝘾𝙤𝙢𝙥𝙚𝙡𝙡𝙞𝙣𝙜 𝙨𝙩𝙤𝙧𝙮: Share your why, highlight the problem, and showcase your solution clearly. ✅ 𝘾𝙡𝙚𝙖𝙧 𝙫𝙖𝙡𝙪𝙚 𝙥𝙧𝙤𝙥𝙤𝙨𝙞𝙩𝙞𝙤𝙣: Define your unique selling point and competitive advantage. ✅ 𝙎𝙩𝙧𝙤𝙣𝙜 𝙛𝙞𝙣𝙖𝙣𝙘𝙞𝙖𝙡𝙨: Showcase revenue growth, market size, and Return on Investment potential. ✅ 𝙏𝙖𝙡𝙚𝙣𝙩𝙚𝙙 𝙩𝙚𝙖𝙢: Introduce your team and highlight expertise. ✅ 𝙎𝙘𝙖𝙡𝙖𝙗𝙡𝙚 𝙗𝙪𝙨𝙞𝙣𝙚𝙨𝙨 𝙢𝙤𝙙𝙚𝙡: Demonstrate potential for rapid growth and development. ✅ 𝙈𝙖𝙧𝙠𝙚𝙩 𝙫𝙖𝙡𝙞𝙙𝙖𝙩𝙞𝙤𝙣: Share customer testimonials and traction. ✅ 𝙍𝙚𝙖𝙡𝙞𝙨𝙩𝙞𝙘 𝙥𝙧𝙤𝙟𝙚𝙘𝙩𝙞𝙤𝙣𝙨: Provide achievable milestones and timelines. Pitch Deck must have; ▫️ Attention-grabbing opening slide ▫️ Poblem statement and solution ▫️ Market analysis and opportunity ▫️ Product/service demonstration ▫️ Business model and revenue streams ▫️ Marketing and sales strategy ▫️ Financial projections and growth plan ▫️ Team introduction and expertise Practice, practice, practice, to deliver your pitch with confidence, do well to also to show your passion and answer relevant questions concisely. Do well to reach out to me for more insights and tips on scaling your startup!💡 #startupfunding #investorpitch #pitchdeck #fundingsuccess #entrepreneurship #startup #growthstrategy #businessplan

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Question 1 are you #vc fundable? Question 2,do you want to take #vc money....👇🏾 before you enter the VC path assess if, with VC money, you can grow your business at least 10x larger compared to a bootstrap patch (to compensate the dilution from VCs); otherwise, stay away from VCs and focus on sustainable growth with a clear short-time path to profitability (even at the expense of rapid growth).

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What a fantastic analogy comparing Saudi Arabia to a high-growth startup! Saudi Arabia has firmly established itself as one of the world’s most dynamic and rapidly evolving markets, offering a once-in-a-lifetime opportunity for ambitious businesses. For anyone considering expansion into Saudi Arabia, the potential is immense. The numbers don’t lie - if you’re serious about tapping into one of the fastest-growing economies globally, this is an opportunity you can’t afford to miss. #saudiarabia #emergingmarkets #businessexpansion #vision2030 #globalbusiness

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🚀 Who has the most active VC ecosystem? After unpacking the last 23 years relating to (i) number of VC deals closed per continent and (ii) value of VC investments per continent, it’s quite clear who the winner is: North America. However, Asia is not far behind… 🏃🏽 Top 3 continents in 2023 (by number of VC deals closed): - North America - 9 808 deals (34% of total global deals) - Europe - 8 763 deals (31% of total global deals) - Asia - 8 565 deals (30% of total global deals) 📈 Top 3 continents in 2023 (by value of VC investments): - North America - $152 billion (49% of total global deal value) - Asia - $95 billion (30% of total global deal value) - Europe - $57 billion (18% of total global deal value) 💡 Observations: - 80% of global VC funding value lies between North America and Asia. - Africa receives only 1% of global VC funding, despite being the continent with the second largest population. - Europe and North America are on par when it comes to the number of VC deals closed (in 2023) BUT in terms of value, Europe trails by almost $100 billion… At Summit.Deals, we’re on a mission to bridge these gaps between our disconnected, fragmented and inefficient global private market ecosystem. AJ Coetzee, John Campbell, Michail Scholiadis, Akash Maharaj Germain Bahri, Shaun Brick, Wesley Roos, Idan Jaan, Adam Hewlett Kieno Kammies Anthony William Catt Data source: Dealroom.co (Yoram Wijngaarde)

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The number 1 issue I see successful founders grapple with is: How do they take smart risks? Running a start-up involves a baseline level of risk—will the business model work, is there product-market fit, can you execute? But in industries like blockchain and AI, where the tech is ahead of regulatory frameworks, there's an added layer. The challenge isn't just “Will the business model work?” but also “Will new laws, or interpretations of law, crash my successful business model?” I've seen successful founders deal with this by moving fast. The faster they execute and solve the non-regulatory issues, the more cushion they have to weather changes in law or interpretations of law. Successful founders in my experience can blend the ability to move fast with the willingness to manage risk in areas under their control, such as equity, finances, employees, and operations. In disruptive industries, this gives founders more freedom to respond to changes in how the rules of the road apply to their business. What risks do you absolutely solve for so you have the freedom to work on bigger issues? #blockchain #AI #innovation #regulation #startup #founder

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𝙃𝙤𝙬 𝙑𝘾𝙨 𝘾𝙖𝙡𝙡 𝘾𝙖𝙥𝙞𝙩𝙖𝙡 (𝙖𝙣𝙙 𝙒𝙝𝙮 𝙞𝙩 𝙈𝙖𝙩𝙩𝙚𝙧 𝙩𝙤 𝙁𝙤𝙪𝙣𝙙𝙚𝙧𝙨) Ever wondered how VCs turn their investors’ commitments into cash for your funding round? When Limited Partners (LPs) commit capital to a VC fund, they usually don’t just hand over the entire amount upfront. Instead, the Limited Partnership Agreement (LPA) outlines a mechanism for the fund's General Partners (GPs) to call capital as needed. These capital calls are generally tied to funding investments, covering management fees and paying fund expenses. 𝗪𝗵𝗮𝘁 𝗙𝗼𝘂𝗻𝗱𝗲𝗿𝘀 𝗡𝗲𝗲𝗱 𝘁𝗼 𝗞𝗻𝗼𝘄 For founders new to the funding process, learning how VCs manage capital can offer a clearer picture of what to expect and how to proceed effectively. Here are a few key mechanics worth knowing: 🔺 𝗧𝗶𝗺𝗶𝗻𝗴 𝗼𝗳 𝗰𝗮𝗽𝗶𝘁𝗮𝗹 𝗰𝗮𝗹𝗹𝘀: Capital calls are often timed around specific investment needs and are typically initiated once the fund's investment committee approves an opportunity. The GP formally requests committed capital from LPs through a capital call notice, obligating them under the LPA to contribute their pro-rata share within a specified timeframe (usually around 10 business days). This ensures funds are available for closing, with timing aligned closely to the transaction. 🔺 𝗦𝘁𝗿𝗮𝘁𝗲𝗴𝗶𝗲𝘀 𝗳𝗼𝗿 𝘁𝗶𝗺𝗶𝗻𝗴 𝗺𝗶𝘀𝗺𝗮𝘁𝗰𝗵𝗲𝘀: To ensure timely deal closures even when not all LP contributions have been collected, VC funds may rely on several strategies: 🔹𝘊𝘳𝘦𝘥𝘪𝘵 𝘍𝘢𝘤𝘪𝘭𝘪𝘵𝘪𝘦𝘴: Many funds utilize credit lines or other short-term loans to bridge temporary funding gaps. For example, a fund might draw on a credit facility to secure same-day capital for an investment while waiting for LP contributions. 🔹𝘙𝘦𝘤𝘺𝘤𝘭𝘪𝘯𝘨 𝘋𝘪𝘴𝘵𝘳𝘪𝘣𝘶𝘵𝘪𝘰𝘯𝘴: Some funds, when permitted under the LPA, reinvest proceeds from earlier exits before distributing them to LPs. 🔹𝘔𝘢𝘪𝘯𝘵𝘢𝘪𝘯𝘪𝘯𝘨 𝘙𝘦𝘴𝘦𝘳𝘷𝘦𝘴: Additionally, funds may maintain a reserve of committed capital ("dry powder") enabling quick deployment for time-sensitive investments. 🔺 𝗙𝗼𝗹𝗹𝗼𝘄-𝗼𝗻 𝗶𝗻𝘃𝗲𝘀𝘁𝗺𝗲𝗻𝘁𝘀: Capital calls aren’t limited to initial investments. Funds may also call additional capital to support follow-on rounds for existing portfolio companies. For founders, this means your VC’s ability to participate in later rounds often depends on available LP commitments. 🔺 𝗙𝗲𝗲𝘀 𝗮𝗻𝗱 𝗲𝘅𝗽𝗲𝗻𝘀𝗲𝘀: Capital calls also cover fund expenses and management fees. While unrelated to your specific funding, these allocations can influence how much capital a VC has left to invest later in the fund's life. While these mechanisms are common, the specific approach can vary significantly between different venture capital funds. Factors like fund size, investment strategy and LP composition can influence capital call and timing management strategies. #VentureCapital #CapitalCalls #Startups #MomentusLegal

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(Disclaimer: This is old news - the CTA has been enjoined by a Texas court. Please see here: https://lnkd.in/gSZjmc_8) 𝗖𝗼𝗿𝗽𝗼𝗿𝗮𝘁𝗲 𝗧𝗿𝗮𝗻𝘀𝗽𝗮𝗿𝗲𝗻𝗰𝘆 𝗔𝗰𝘁: 𝗪𝗵𝗮𝘁 𝗩𝗖𝘀 𝗮𝗻𝗱 𝗦𝘁𝗮𝗿𝘁𝘂𝗽𝘀 𝗡𝗲𝗲𝗱 𝘁𝗼 𝗞𝗻𝗼𝘄 The Corporate Transparency Act (CTA) is here and it's already reshaping the regulatory landscape for VCs & startups. Here's what you need to know: • 𝗞𝗲𝘆 𝗧𝗮𝗸𝗲𝗮𝘄𝗮𝘆: While larger VC firms & late-stage startups are exempt, smaller VC fund managers & early-stage startups face reporting obligations. 𝗪𝗵𝗼 𝗠𝘂𝘀𝘁 𝗥𝗲𝗽𝗼𝗿𝘁: - All corporations, LLCs, partnerships & certain trusts operating in the U.S. 𝗪𝗵𝗼 𝗜𝘀 𝗘𝘅𝗲𝗺𝗽𝘁: - 𝗦𝗘𝗖 𝗘𝗥𝗔𝘀 (Large VCs): Venture firms exempt federally—$25M+ AUM - 𝗩𝗲𝗻𝘁𝘂𝗿𝗲 𝗳𝘂𝗻𝗱𝘀 advised by Large VCs - 𝗥𝗜𝗔𝘀: SEC Registered Investment Advisers - 𝗟𝗮𝗿𝗴𝗲 𝗢𝗽𝗲𝗿𝗮𝘁𝗶𝗻𝗴 𝗖𝗼𝗺𝗽𝗮𝗻𝗶𝗲𝘀: Startups w\ 20+ full-time employees (FTE) operating in the US and $5M+ in annual sales with a US presence 𝗪𝗵𝗼 𝗠𝗮𝘆 𝗔𝗹𝘀𝗼 𝗕𝗲 𝗘𝘅𝗲𝗺𝗽𝘁: - GP LLC's controlled and/or wholly owned by Large VCs/RIAs - Non-US funds not registered to do business in the U.S. • 𝗞𝗲𝘆 𝗖𝗼𝗻𝘀𝗶𝗱𝗲𝗿𝗮𝘁𝗶𝗼𝗻𝘀: 1️⃣ "AUM" means regulatory assets under management—a fund's capital commitments count 2️⃣ Smaller VC firms (<$25M AUM), non-VC firms & earlier-stage startups (<$5M in annual sales or ≤20 FTE) will likely face new reporting obligations 3️⃣ Private funds (fund-of-funds, §203(m), real estate) must file unless RIA 4️⃣ One court has vacated this law—future uncertain but it's still enforceable 𝗪𝗵𝗲𝗻 𝘁𝗼 𝗥𝗲𝗽𝗼𝗿𝘁: - Old entities formed BEFORE 𝟮𝟬𝟮𝟰: File by January 1, 2025 - New entities formed 𝗶𝗻 𝟮𝟬𝟮𝟰: File within 90 days of formation - New entities formed 𝗮𝗳𝘁𝗲𝗿 𝟮𝟬𝟮𝟰: File within 30 days of formation/change 𝗪𝗵𝗮𝘁 𝘁𝗼 𝗥𝗲𝗽𝗼𝗿𝘁: - Beneficial ownership information (management team & ownership >25%) - Company applicant information - Basic company information 𝗣𝗲𝗻𝗮𝗹𝘁𝗶𝗲𝘀: $500/day + up to $10,000 in fines, 2 years in federal prison. • 𝗣𝗿𝗼 𝗧𝗶𝗽: If you're an emerging VC or early startup, ask your counsel to check your filing status for any reporting obligations under the CTA. • 𝗕𝗼𝘁𝘁𝗼𝗺 𝗟𝗶𝗻𝗲: The CTA adds a new layer of complexity for smaller players in the venture and startup ecosystem. Understanding your obligations is important to comply with regulatory rules and avoid penalties. More information in comments.

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🚩VC Fundraising Longest in Decade⏰ 📉 The venture capital landscape faced unprecedented challenges in 2023, with fundraising cycles stretching to their longest duration in a decade. According to the Q4 2023 PitchBook-NVCA Venture Monitor, the median time to close VC funds reached 15 months, marking a 46% increase from 2021 and the highest rate in recent memory. ⚠This prolonged fundraising period contrasts sharply with 2022, which saw fundraising cycles hit a decade low of 9.3 months, fueled by runoff from previous capital waterfalls. However, the LP retreat from venture capital in 2023, driven by falling tech stocks and a lackluster IPO market, created significant headwinds for VC firms seeking capital. 📝LPs now hold greater leverage, dictating terms and conditions as capital becomes scarcer in the venture landscape. This shift has led to more favorable terms for LPs, including side letters and co-investing rights, further complicating the fundraising process. 🦸‍♂️Emerging managers, lacking extensive track records, face particular challenges in securing funding, with the need to demonstrate robust returns amidst market uncertainties. Some venture firms have chosen to close new funds below their targets rather than extend deadlines with LPs. Insight Partners, for instance, reduced a fund's $20 billion target by $5 billion in response to declining growth-stage valuations. 💡In navigating these challenges, venture firms like Andreessen Horowitz have pursued more conservative approaches, opting for modest step-ups from previous fund targets. As the VC landscape continues to evolve, adaptability and strategic decision-making will be essential for firms seeking to thrive in an increasingly competitive environment. ✅ 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 #VentureCapital #FundraisingChallenges #LPs #MarketTrends #InvestmentStrategy 🚀

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