Mischa Travers

Earlier this year, we surveyed our fellow Los Angeles-based GPs to get a pulse check on the LA venture ecosystem. Here’s what we found: 💗 Deal flow is healthy, and most LA venture investors (68%) are seeing the same or more deal flow YoY. ✈ LA investors are spending time in a variety of markets, with NYC, Austin, and SF following closely on LA’s heels. 🔍 Innovation is concentrated in AI and machine learning, space, and commerce. 💸 Funding is happening, but it’s barbell-shaped, with deals concentrated at the early and late stages. Funding post-Series A has been challenging. 🚩 LA is differentiated, but not without its challenges. Key difficulties include not attracting enough AI talent (despite having the largest number of engineers graduating from our region over any other in the United States); talent relocated to more tax-friendly or less expensive locations; and the great SoCal / NoCal divide 🙏 Thank you to all our many respondents! I’m so glad to be part of a venture ecosystem that includes great minds like Anna Barber, Brent Murri, W. Christine Choi, Sarah Tomolonius, Rob Smith, Win Chevapravatdumrong, John Tabis, Jill Royster, Jesse Draper, Ashley Balla, Britt Danneman, Tram Lai, Carmen Palafox, Elaine Russell, Deborah Benton Amanda Schutzbank, Brian Lee, Petra Griffith, Minnie Ingersoll, Shamin Walsh, Gabe Greenbaum...wow, this list could go on forever...plus too many other exceptional humans to name. You know who you are! Explore our findings more deeply with our survey dashboard: https://bit.ly/3JsaLaB

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Building AI tools and platforms is important, but a large part of future success and impact is going to be informed by the ability of corporates to navigate data use rights.

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Great summary of the differences.

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Good morning from sunny Silicon Valley! In today’s post-ZIRP (Zero-Interest Rate Policy) VC environment, we're seeing a shift in how the game is played, especially for fintech founders. Here are a few key points to note: 🔹 Early-stage activity is booming — Q2 2024, median seed valuations hit $14.8M. 🔹 As mega-rounds and billion-dollar exits dominate headlines, more investors are advising founders to prioritize capital efficiency and ownership. 🔹 SaaS remains favorable to VCs due to its scalability and potential for high margins. However, this comes with high upfront burn rates that may be a challenge for early-stage companies. 🔹 With IPOs and M&A activity still relatively low, founders need to have a clear point of view on their exit strategy—possibly opting for smaller, strategic exits. 🔹GenAI and new tech developments are creating fresh opportunities, especially in sectors that have traditionally been overlooked. For fintech founders, the main takeaway is clear: focus on building capital-efficient businesses and think strategically about growth trajectory. Check out this Forbes article for more - https://lnkd.in/g76MpmN7 #mergersandacquisitions #fintech #innovation #venturecapital #vc #foleyforward #garage2global Foley & Lardner LLP

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So thrilled to announce that we Andreessen Horowitz are leading Pantheon AI's latest round and that they are officially launching! Pantheon is an AI-enabled architectural firm that delivers what you would expect from a traditional firm, but with a level of speed and service that was not possible prior to recent breakthroughs in AI. Architects are currently limited in how much time they can spend on creative work due to the repetitive tasks involved in their day-to-day (e.g., drawing walls and lines in industry software tools). Pantheon accelerates this and can generate editable 3D building models – complete with walls, room elements (e.g., cabinets), building materials, etc. This means that much of the repetitive work that used to take architects days or weeks can now be done far more efficiently, and Pantheon can then sell these deliverables directly to property developers & owners, instead of selling software to architects. I've known the co-founders David Mace and Tiger S. for years. They are both distinctly technical, driven, and passionate about solving problems for customers in the physical world. David is a successful second-time founder, and Tiger was one of the strongest engineers from Scale. Most of the discussion in generative AI has been focused on the world of bits, but there is just as much potential in the world of atoms. If you’re interested in working on the future of the built world, they’re hiring at [email protected]. Read more about our investment below! https://lnkd.in/gaJ3XWS5

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Check out this article from Carta on venture deal terms featuring some quotes from yours truly.

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CRV's recent decision to return $275M from its later-stage Select Fund highlights the growing caution around inflated valuations. As capital becomes more selective, this move signals a recalibration, especially for late-stage startups where liquidity is tighter and exits are delayed. While this news centers on a later-stage fund, we may also see new early-stage funds raising less capital going forward. With a more conservative approach across the board, founders at all stages should expect increased scrutiny and a more measured funding environment in the near term. https://lnkd.in/grG7u_KK

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The California Attorney General has reached a significant settlement with the developer and publisher of a mobile game over children's privacy violations. Perkins Coie LLP partner Janis Kestenbaum discusses how the case underscores the importance of complying with COPPA and CCPA, and what businesses can do to enhance their privacy practices. #PrivacyLaw #ChildrensPrivacy #CCPA #COPPA

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California has been busy with AI legislation! These actions are set to shape the future of artificial intelligence in the state and beyond. The below article that I authored with Nick Reem and Sara Tadayyon provides a comprehensive overview of some of these key bills. We delve into the implications for businesses, developers, and consumers, highlighting the most critical aspects of this groundbreaking legislation. https://lnkd.in/dTVCPWub

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LET THE INVESTOR SPEAK, part 1: "Find yourself a person who asks questions that hurt, and who pushes you to care about the dead boring stuff." That's Raoul Dobal's advice on how to spot the perfect investor and board member. As an angel investor, active board member and CTO of PMG Investment Solutions AG, Raoul is ready to get his hands dirty and to serve as an active and committed board member in the startups he invests in. It's also the best way for him to make sure his investees will succeed: giving them an experienced and hands-on support, and making sure the nitty-gritty aspects of growing a company are not neglected. We're talking compliance, data security, HR strategy, and the legal setup. Because while building an awesome product might be the most activating thing to do, setting the reliable groundwork is what's going to help limit future risk. As a startup that got ISO-27001-certified in its first year of existence, we at Neur.on couldn't agree more. In our case, legal and banking clients are only working with us because we can prove how secure our data flows are. That's super boring stuff. Until it isn't. ---------- In the ongoing series "Let the investor speak", I'll showcase personal insights from investors all across the board to help you diversify your search for an angel investor or VC company.

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What can you do with your #DigitalAssets? Check out our recent conversation with Gary Cardone below.

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🌟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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Just wrapped up an insightful few days at Legal Innovators California, focusing on AI/LLM in legaltech. Key takeaways: - AI is poised to disrupt the legal practice imminently. - Growing interest in automating routine tasks like SaaS contracts and NDAs. - Cyborg solutions, integrating humans for quality control, are being launched in legal services today - RAG is intriguing but not foolproof for precision in legal matters (very different from creating marketing copy for TikTok) I'm excited about the concept of autonomous agents negotiating contracts and streamlining core issues for human attention - a game-changer! Looking forward to more developments in this space! Lauren Bonner Jonathan Jetmundsen Juristat #LegalTech #AI #Innovation #LegalInnovatorsCalifornia

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Running an experiment. Testing the voting system of Product Hunt to compare it with a new version I have in mind to showcase as PoC. Could you please upvote this? 🙏 👇 https://lnkd.in/eXYnybNs

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I’m joining a great panel this Weds to talk about how AI has impacted IP, and what it means for companies looking to innovate. Hope you can join us for a great conversation!

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BforeAI is a novel approach to stopping threats outside your borders. It’s worth checking out if you ever find the need for brand protection, takedowns, or just want some the best advance notice threat intel to empower your security operations.

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Excellent 45 second explanation of why organizations with the best intelligence, in today's Global Competition environment - win.

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Nadav Shoval, the founder and CEO of OpenWeb, was ousted by its board, led by investor Jeff Horing, sparking a legal dispute over the dismissal’s legality. The conflict arose from differing visions: Shoval aimed for an IPO, while Horing and other investors sought quicker returns, ultimately leading to Shoval's termination for alleged misconduct. Despite attempts to maintain control, Shoval’s minority ownership left him vulnerable to board decisions, highlighting the influence of the major investors. This "soap opera" like story highlights every founder's worst nightmare - the loss of control of their "baby." That said, without external funding, unlikely the company gets anywhere close to its present size and value. Rockstar CEO's can get "super shares" or other arrangements that allow them to retain control. Other CEO's remain so critical to their companies that they are practically not replaceable without causing significant harm to the venture. However, in the later stages, many founders learn that no one is irreplaceable. For most CEO's the loss of control is the "cost of doing business." Where CEO's can protect themselves is through severance provisions, equity accelerations and narrow definitions of "termination for cause."

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If you work in tech transfer this is a good read-in on how our diligence tech can assess and evaluate assets with minimal inputs. The best way to learn more is to see it live! Reach out to me directly to learn more!

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