Peter Borden

We gathered dozens of operators from the MGMT Boston Operators Club and local founders alongside the 186 Ventures team this October to discuss the evolution of our dear software markets, the status of some predictions for 2024 (all looking good!), and what’s on deck for next year. General Partner Giuseppe Stuto led us through the following predictions for 2025 to share with you all.. ↕ We will see more vertical AI applications manifest themselves within the Enterprise in a similar ways that SaaS moved from horizontal to vertical use cases 🔔 We will see services business models more common and software budget purchasing models less common - SaaS may even be given away for cheap/free as a “way in” ⚖ Capital efficiency, on a relative basis, will almost be required to create enduring & compounding defensible enterprise value. Details like procurement cycle lengths and creativity with non-dilutive financing, like leveraging revenue based financing tools for example, will all matter 💡 Specific to AI, premiums will be placed on applications that can actually get “reasoning” right. All purpose LLMs still have a ways to go and there are multiple approaches with the “jury still out” on how to get context and reasoning right. Infrastructure solutions that use general purpose or customizable knowledge graphs to help application developers get to 100% (enterprise acceptable accuracy) will emerge OR savvy application developers will fill the gaps themselves. We will likely see both, depending upon the specific case! Thank you Giuseppe, Julian, and Sophie for a great discussion and evening!

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At most networking events… Business owners shake hands, exchange business cards, and go home. HumanX has a different approach. You’ll be paired together in 1:1 conversations with investors & AI startups. You’re not just adding people to your rolodex. Deals will be made.

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And my second investment at defy is in 🐶 zeroETL puppies 🐶... I mean PuppyGraph, which is all the beauty of a graph database, none of the data migration or continuous upkeep of a graph database. Sounds like magic? So are puppies 🐶 . Puppygraph is NOT a graph or a database. It is graph analytics engine that answers graph questions on your existing data warehouses, whether that is a Databricks datalake, Google BigQuery or postgres. Compared to SQL, it's faster, handles way more complexity, scales and has almost no upkeep. How did I get to conviction? 1. Tailwinds - 🌊 Lakehouses 🌊 have helped enterprises put all their data in one place, enabling Puppygraph to unlock insights previously unavailable. - 📚 LLMs! 📚AI and RAG cannot easily traverse fragmented data. Puppygraph's Graph RAG unlocks insights with their Knowledge Graph and spoonfeeds to the LLMs. 2. 👯 Team 👯 We have graph experts from Google, LinkedIn, Databricks, Tigergraph, and Instacart who are uniquely able to build this solution. 3. 💸 Customers 💸 . My alma mater Coinbase is a proud user. The feedback from my former colleagues was off the charts! A blockchain is very much a graph database and Puppygraph tracks down fraudulent transactions that go through mixers and helps identify patterns. Huge congrats to Weimo Liu Danfeng Xu Lei Huang Zhenni Wu Gary Hagmueller, defy.vc is proud to be an investor!!

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Secondaries are becoming a super attractive asset class. Just this month, StepStone announced a new $3B+ fund dedicated to secondaries. Late-stage private companies are still trading at a discount relative to their 2021-2022 highs. But the venture capital advisor exemption requires firms to keep their secondary positions less than 20% of total investments. I think this will encourage fund managers to get creative with registration/legal structures in order to unlock greater exposure to secondaries as attractive deals come through. https://lnkd.in/e_3_xitM

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NYC bars and restaurants are struggling and one of the reasons is legal cannab*s, according to this new report. Bars and restaurants should be able to sell weed, especially at events. These small business owners are relying on the OCM to expedite the events license so they can stop being harmed by legal cannab*s and start being apart of the market. https://lnkd.in/eSbFmtA6

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This is a must listen to for anyone B2B founder. How to figure out Product Market Fit. One of best frameworks I've seen in a while. https://lnkd.in/ghSmhVNB

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As a B2B SaaS VC 👩‍💻 and a huge data nerd 🤓, fewer things bring me more joy than a truly statistically significant analysis (600+ companies surveyed) of B2B SaaS metrics across early stage companies. Great work by our team at Emergence Capital! See comments for full report, and please let us know how we can make this better in the future!

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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.

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At Forum we look at thousands of deals each year across our Accelerator and Pre-Seed funds but only end up investing in a little over 1% of those startups.  As an early stage VC, I am in the business of saying no to nearly every startup I meet, and while there is nuanced rationale for many of the startups I pass on, a vast majority of businesses that don’t meet the qualification to get funded typically fall into one of two buckets. ▪ First time founders have a tendency to go out to market too early to raise pre-seed capital ▪   I’m sure most founders have heard some iteration of this from VCs that ultimately pass on their business.  In some cases it's a blanket excuse covering up for other pass reasons- perhaps a VC doesn’t believe in a team or isn’t bullish on the market opportunity - but in many cases founders simply haven't proven enough to the market to warrant an investment. I meet many teams with an articulate vision for the product that they want to build, but they either haven't performed enough customer discovery to prove demand for their initial wedge product, or need to raise pre-seed capital to build out an MVP.  In those cases, pre-seed investors are unwilling to underwrite those risks.  To be default fundable, teams need to be able to keep costs low, perform extensive customer discovery, and ship some version of an early product - pilots and early paid customers are key. A huge piece of this is having founding engineering talent on the team. ▪Not every startup is a venture opportunity ▪ By definition, a venture backed business is solving a problem within a market opportunity so massive and so desperately needed, that its growth rate is off the charts.   It spreads like a weed, absorbing almost unlimited amounts of capital to fulfill demand within its customer base.   Each year there are maybe 20 companies launched that ultimately have venture scale outcomes. The bar to reach this rarified air is unfathomably high and the reality is the vast majority of founders simply aren’t building for opportunities that have the potential to be one of these generational companies. Many startup founders view VC as the only viable option for capitalizing their business, but not every great business is a venture business, and most successful founders never take VC dollars.  In order to reach an IPO/acquisition large enough to generate venture returns, a startup needs a credible path to $100s of millions in revenue. This is the standard by which early stage opportunities are evaluated. The flip side to this, and I share this feedback often with founders I meet that are building interesting business in non venture markets, if you are able to scale to $10- $20M in revenue that can be a massively successful outcome for a founder.  There are investors who focus on these type outcomes, namely lower middle market PE shops, and the typical path to those deals is a bootstrapped business or a friends/family capital raise.

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Primary Venture Partners NY Seed Report is out In Q3 2024, the NYC seed funding landscape saw a strategic pivot. While total funding dropped 13%, the average round size rose by 11%, signaling a high-conviction, low-volume approach from investors. Healthtech, AI, and FinTech deals led the way, with notable growth in transactions within the $6M-$10M range. For the entire report: https://lnkd.in/eByGuxW9

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📖 Introducing first book: "No Startup Sugarcoating" 🚀 Grab your copy on Amazon today! https://lnkd.in/eZ-heWz4 As an entrepreneur and AI enthusiast, I’ve navigated the thrilling yet challenging landscape of startups. In "No Startup Sugarcoating," I share my insights and experiences to help aspiring entrepreneurs face the realities of building a successful business without the fluff. This book is packed with: Real-life stories and lessons learned from the trenches Practical advice to overcome common pitfalls Strategies to cultivate resilience and adaptability in a fast-paced world Whether you're launching your first startup or looking to refine your approach, this book is designed to empower you with the knowledge you need to thrive. Ready to embark on your entrepreneurial journey? Thank you for your support, and let’s make great things happen together! #NoStartupSugarcoating #Entrepreneurship #Startup #TitusRoemer #Innovation #BusinessSuccess #AmazonBooks

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Check out our curated list of #New York funded startups, featuring key insights like HQ locations, founded years, and investor info. https://lnkd.in/dbw7pUqq #startup #startups #venturecapital #funding #vc #investmentbanking

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The insights from GoFundMe CEO Tim C. and University of Rochester professor Jiebo Luo in this article by Wall Street Journal align closely with Impact Guru's own observations and experiences in the medical crowdfunding space. At Impact Guru, we have consistently noted that campaigns with robust early sharing and strategic use of imagery tend to achieve higher success rates. Cadogan's observation that campaigns shared six or more times in the first few days are 40% more successful mirrors our data. Early and frequent sharing helps to quickly build momentum and expand reach, crucial for crowdfunding success. At ImpactGuru, we always advise our campaigners to leverage their social networks aggressively in the initial stages to maximize visibility and donor engagement. Similarly, Luo's findings on the power of visual elements in campaigns are highly relevant. Our experience confirms that campaigns featuring patient photos often see a stronger response. These images create a deep emotional connection with potential donors, evoking empathy and a willingness to help. This effect is particularly pronounced when the photos depict happy moments before the onset of a medical crisis, highlighting the human side of the story. These findings validate the strategies we recommend to our campaigners at Impact Guru. By advising campaigners to share their stories widely and choose impactful images, we help them optimize their campaigns for better outcomes. This alignment between external research and our internal data underscores the efficacy of our approach and reinforces our commitment to supporting our users effectively. Impact Guru continues to lead the way in medical crowdfunding in India by integrating these proven strategies, ensuring that our campaigners have the best possible chance of success. John Coventry

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To scale from $1M to $10M ARR, you need to turn your ad hoc GTM efforts into a well-oiled machine. This means creating repeatable processes across your entire GTM - from lead gen to sales to customer success. The good news for technical founders is that they're experts at solving complex engineering challenges with precision, efficiency, and structure. At this stage of startup growth, they need to apply that same systems-oriented mindset to GTM - which, for B2B startups, can be approached more as a science than an art. More in the May edition of B2BaCEO: https://lnkd.in/emsvFN9q

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Looking for a unique business opportunity? Automating the buying and selling of niche collectibles could be your next big venture. By leveraging data scraping, machine learning, and API integration, you can streamline the process of trading valuable items like rare stamps, vintage toys, and limited-edition sneakers. Imagine having a system that automatically tracks market trends, identifies undervalued items, and handles transactions for you. This approach not only saves you countless hours but also increases the accuracy of your buying decisions and maximizes your profits. Unlike traditional selling, where manual effort and time constraints limit your scalability, automation allows you to expand your operations effortlessly and efficiently. With an automated system, you can monitor multiple marketplaces simultaneously [...]

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A peek into the acquisition playbook: Build superior products, get noticed, and create relationships that open doors to buyout opportunities 👇 Actionable insights from: ➡ Jason M. Lemkin, Founder at SaaStr ✏ “Dear SaaStr: How Do You Build a Real Exit Strategy?” ⭐ 𝗔𝗰𝗾𝘂𝗶𝘀𝗶𝘁𝗶𝗼𝗻𝘀 𝗮𝗿𝗲 𝗿𝗲𝗹𝗮𝘁𝗶𝘃𝗲𝗹𝘆 𝗿𝗮𝗿𝗲 𝗳𝗼𝗿 𝘀𝘁𝗮𝗿𝘁𝘂𝗽𝘀: "Bear in mind acquisitions are relatively rare. The vast majority of startups will never get one acquisition offer, let alone a good one." ⭐ 𝗕𝘂𝗶𝗹𝗱𝗶𝗻𝗴 𝘁𝗵𝗲 𝗯𝗲𝘀𝘁 𝗽𝗿𝗼𝗱𝘂𝗰𝘁 𝗶𝗻 𝗮𝗻 𝗶𝗺𝗽𝗼𝗿𝘁𝗮𝗻𝘁 𝘀𝗽𝗮𝗰𝗲 𝗶𝗻𝗰𝗿𝗲𝗮𝘀𝗲𝘀 𝘁𝗵𝗲 𝗹𝗶𝗸𝗲𝗹𝗶𝗵𝗼𝗼𝗱 𝗼𝗳 𝗮𝗻 𝗮𝗰𝗾𝘂𝗶𝘀𝗶𝘁𝗶𝗼𝗻: "Build the best product in an important space. It really is this simple. If you are #1 in an important space, the potential acquirers, if there are any, will eventually pay attention." ⭐ 𝗚𝗮𝗶𝗻𝗶𝗻𝗴 𝗮𝘁𝘁𝗲𝗻𝘁𝗶𝗼𝗻 𝘁𝗵𝗿𝗼𝘂𝗴𝗵 𝗺𝗲𝗱𝗶𝗮 𝗮𝗻𝗱 𝗲𝘃𝗲𝗻𝘁𝘀 𝗰𝗮𝗻 𝗵𝗲𝗹𝗽 𝗮𝘁𝘁𝗿𝗮𝗰𝘁 𝗮𝗰𝗾𝘂𝗶𝗿𝗲𝗿𝘀: "Acquirers assemble a list of companies they should pay attention to based on media, events, and customer and partner conversations. You'd be surprised how leaders at Big Tech Cos hear of startups, and who they know about, and who they don't." ⭐ 𝗕𝘂𝗶𝗹𝗱𝗶𝗻𝗴 𝗿𝗲𝗹𝗮𝘁𝗶𝗼𝗻𝘀𝗵𝗶𝗽𝘀 𝘄𝗶𝘁𝗵 𝘀𝗲𝗻𝗶𝗼𝗿 𝗲𝘅𝗲𝗰𝘂𝘁𝗶𝘃𝗲𝘀 𝗮𝘁 𝗽𝗼𝘁𝗲𝗻𝘁𝗶𝗮𝗹 𝗮𝗰𝗾𝘂𝗶𝗿𝗲𝗿𝘀 𝗶𝘀 𝗰𝗿𝘂𝗰𝗶𝗮𝗹: "Get to know as many of the senior folks at your potential universe of acquirers as you can. And this can and will take years. You'll hear this story again and again from founders that were acquired. This is good for your business anyway." ⭐ 𝗘𝗻𝗴𝗮𝗴𝗲 𝘄𝗶𝘁𝗵 𝗣𝗿𝗶𝘃𝗮𝘁𝗲 𝗘𝗾𝘂𝗶𝘁𝘆 (𝗣𝗘) 𝗳𝗶𝗿𝗺𝘀 𝘁𝗵𝗮𝘁 𝗮𝗽𝗽𝗿𝗼𝗮𝗰𝗵 𝘆𝗼𝘂: "Talk to PE firms that approach you, especially after $10m-$20m ARR, that reach out. This is a world you likely won't know much about in the early days. But in SaaS, as you cross $10m, $15m, $20m ARR … PE firms will start to reach out. Just take the call. They have money to buy good SaaS companies not burning too much cash. There are pros and cons to selling to PE. But one big Pro is you often don't have to stay; vs. a tech company will want you to stay for years." ───── 👉 Follow me, Alexander Small, for tactics and strategies for building startups from industry-leading Founders, Operators and Investors

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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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