Richard Huang

Series A or B wondering when to bring in a VP of Finance or CFO? It’s a crucial decision that can shape the future of your company. At this stage, financial leadership is not just about managing numbers but also scaling processes, securing funding, and driving strategic growth. My colleague Paul breaks down key signs that it’s time to hire and indicators for choosing between VP of Finance and a CFO #FinanceLeadership #CFO #StartupGrowth #SeriesA #SeriesB #NextGenLeadership

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Lots of PE groups profess to port-co's the importance of solidifying a differentiated strategy. But also important to eat your own cooking. What is your FIRM's differentiated strategy? And how differentiated is it? Enjoyed the discussion with Nick Bradley on The Scale Up Podcast! #PrivateEquity #Talent

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💥 Highly Recommended Post: Great post about VC. The biggest question is in my opinion, why are 90% of VC’s still necessary in the age of decentralised money and AI? I truly do not understand why LP’s and Family Offices can not create investment efficiency by direct investment into startups themselves. I understand it had to work this way initially with the VC middle man, but times change. VC’s just make the process of funding long and boring with fees etc and their own internal business model to justify ROI. It’s a different world now and most VC’s are dinosaurs 🦕 like a lot of jobs are dinosaurs because of AI and WFH etc. Our world has changed and startups can raise and scale in numerous ways without the VC stress and bubble they help create for themselves 🤓 Morpheus thinks 🌿 🌿 Learn a lot about 4IRGPT .com knowledge trading for your professional benefit, creativity, productivity, business or organisation through Perplexity AI. Click here to see why: https://lnkd.in/dY5MmsGh 🪴💥 Watch 💯 uninterrupted 15,000+ videos of intelligence in tech, finance & geopolitics. Keep yourself and family super smart and way ahead of the herd. Click here: https://lnkd.in/dHJ8i_Q5

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If 30-50% of venture firms disappear... What will it take for emerging managers to survive and thrive? Read more about the growing consolidation in VC and the challenges for EMs to differentiate themselves in an increasingly competitive landscape dominated by larger firms from QED Investors' Frank Rotman. #VC #OpenLP #EmergingManagers

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Worth checking out for any companies at the right stage.

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In Life Sciences, a great CFO does more than manage finances—they also prepare the company for an exit, whether it's a strategic acquisition, an investor buyout, or an IPO. 🚀 These CFOs work closely with Investment Bankers, maintain credibility with Wall Street, and manage investor relationships, allowing the CEO to focus on strategy, growth, and supporting their Leadership team. 💡 I've had the privilege of placing transformative CFOs who excel in these areas, guiding companies through financial milestones to successful exits. In an industry that's constantly evolving, the right financial leadership isn't just important—it's essential. Here's to the CFOs leading the charge in Life Sciences! 🙌 #LifeSciences #Infusion #VentureCapital #cfo #PrivateEquity

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The Governance Guardrails of Successful Family Offices One of the most critical, yet overlooked, factors that make or break family offices is having a robust governance framework from the start. As this short video explains, effective governance allows you to: 1. Proactively prevent issues before they become relationship-fracturing problems. 2. Clearly communicate the family's values, mission, and long-term vision. 3. Keep members informed on strategic direction, progress, and decisions. 4. Establish structured channels for family members to voice ideas and concerns. 5. Bring the family together to make key decisions in an organized manner. Too many family offices start with just informal ad-hoc governance. But as they grow, that quickly becomes unsustainable chaos. The solution? Implementing foundational elements like: • A Family Constitution - Codifying principles, policies and procedures. The north star. • A Family Council - The core decision-making body representing key branches. • A Family Assembly - A forum for the extended family to receive updates and provide input. • Advisory Boards - Panels of trusted advisors and subject matter experts. • Other Committees - Focused on key areas like investments, philanthropy, etc. With a solid governance blueprint, you ensure alignment. Without it, you're flying blind towards the next emergency! Of course, governance takes work. But like anything priceless, the upfront investment will prevent exponentially more costly consequences down the road. What has your experience been with family office governance - whether having it or lacking it? We'd love to hear your perspectives. Let's discuss in the comments! #familyoffices #familybusiness #familywealth

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Venture capital is facing a serious exit problem these days. Typically, VCs invest in startups with the expectation of making big returns through acquisitions or IPOs. But lately, those exits have been harder to come by. One big reason for this exit drought is regulatory scrutiny. Antitrust concerns have made it tough for tech giants to snap up promising startups, reducing potential buyers for VC-backed companies. On top of that, the IPO market has become unpredictable. Investors are cautious, preferring companies that show solid profitability, which isn't easy for many startups focused on growth. To tackle this, VCs are adjusting strategies, focusing more on sustainable growth, and exploring alternative exits like secondary sales. It's a tough period for exits, but adapting to these challenges will be crucial to keep the venture capital engine running smoothly. Source: https://bit.ly/3YelIVF #VentureCapital #Regulation #TechInvesting #StartupExitStrategies

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Last chance to RSVP for Forum’s Founder-First Investor Breakfast! 🥐 On the morning of Wednesday July 10th, we’ll be celebrating the winner and finalists of the NYC Founder-First Investor Award 🏆 We’ll hear from Nick Adams, Richard Odior, and Lauren Reeves on what it means to be founder-first, get some advice on finding the right investor for your cap table and insights on todays fundraising market. Whether you’re a founder actively fundraising or an early-stage investor, this one’s for you. RSVP using the link in the comments⬇️🔗

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Smartsheet has entered a definitive agreement to be acquired by Blackstone and Vista Equity Partners for $8.4 billion in an all-cash deal. Smartsheet shareholders will receive $56.50 per share, representing a 41% premium over the 90-day average share price. The transaction is expected to close by the end of January 2025, subject to regulatory approvals and shareholder agreement. After the deal, Smartsheet will become privately held, continuing operations under its brand. There is a 45-day "go-shop" period allowing alternative proposals. Here are a few thoughts: Blackstone and Vista bring extensive experience in tech, positioning Smartsheet for accelerated global expansion. High valuation shows continued private equity interest in software companies, especially those with strong SaaS models. As a private company, Smartsheet may gain flexibility for product innovation and restructuring without quarterly public market pressures. The 45-day "go-shop" could lead to other high-profile bidders, signaling competitive interest in enterprise work management solutions. This acquisition could drive consolidation in the collaborative work software market, setting a trend for future acquisitions. #privateequity #deals #dealflow

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High purchase multiples + endless PE competition + high i-rates = shrinking margin for error in PE deals. PE firms can no longer afford to be wrong about a target company's: • Operational effectiveness • Growth readiness • Change readiness • Quality of leadership No wonder demand for organizational & commercial due diligence has surged in recent years. #PrivateEquity #DueDiligence

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The lack of exits from both private equity and venture capital funds over the last few years continues to have a significant impact on the behavior of large investors. Per the attached article from Institutional Investor, single family offices have moved more capital into fixed income and liquid equites (ie. the stock market). With yields on fixed income securities now higher, the move into that asset class is easy to understand. I would expect a larger allocation to fixed income to endure, as interest rates are likely to remain at or near their current level for the foreseeable future. However, I suspect that the move into liquid stocks is driven more by the need for near-term liquidity, rather than any structural change in asset allocation philosophy. The truth is that family offices need both access to growth companies AND liquidity. If exits in the private markets begin to uptick again, I would expect family offices to once again deploy capital to PE and VC. Private equity and venture capital continue to be the most effective method to access the return profile of growth-stage companies. That is not going to change. However, the liquidity side of the equation needs to return to normalcy. #privateequity #venturecapital #innovation #entrepreneurship #founders #startups #investing Endeavor Colorado Zeb King Tegan Stanbach Kathryn Dickson https://lnkd.in/g4rqxzhQ

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“I’m struggling to calculate CAC and LTV for my business.” I can tell you why — without seeing your model: 1. You’re overcomplicating the calculations 2. You’re not using consistent formulas 3. You’re missing key metrics or inputs 99% of the time, when founders struggle with CAC and LTV, it’s because of one (or all) of these reasons. But here’s the good news: You can simplify the process by just doing … the exact opposite of all of that: Here’s a simple breakdown to get you started: Calculating Customer Lifetime Value (LTV): 1. 𝗙𝗶𝗻𝗱 𝘁𝗵𝗲 𝗔𝘃𝗲𝗿𝗮𝗴𝗲 𝗥𝗲𝘃𝗲𝗻𝘂𝗲 𝗣𝗲𝗿 𝗖𝘂𝘀𝘁𝗼𝗺𝗲𝗿 - ARR = $2M - Total customers = 5k - Average Revenue Per Customer = $2M / 5k = $400 2. 𝗖𝗮𝗹𝗰𝘂𝗹𝗮𝘁𝗲 𝗚𝗿𝗼𝘀𝘀 𝗠𝗮𝗿𝗴𝗶𝗻 𝗣𝗲𝗿 𝗖𝘂𝘀𝘁𝗼𝗺𝗲𝗿 - Gross Margin = 75% - Gross Margin Per Customer = $400 * 75% = $300 3. 𝗗𝗲𝘁𝗲𝗿𝗺𝗶𝗻𝗲 𝘁𝗵𝗲 𝗠𝗮𝗿𝗴𝗶𝗻 𝗠𝘂𝗹𝘁𝗶𝗽𝗹𝗲 - Annual Retention Rate = 90% - Annual Churn Rate = 10% - Discount Rate = 5% - Margin Multiple = 90% / ((1+5%)-90%) = 6 4. 𝗖𝗮𝗹𝗰𝘂𝗹𝗮𝘁𝗲 𝗟𝗧𝗩 - LTV = $300 * 6 = $1,800 Calculating Customer Acquisition Cost (CAC): 1. 𝗧𝗼𝘁𝗮𝗹 𝗦𝗮𝗹𝗲𝘀 & 𝗠𝗮𝗿𝗸𝗲𝘁𝗶𝗻𝗴 𝗘𝘅𝗽𝗲𝗻𝘀𝗲 - Sales Team Salary = 8 * $70,000 = $540K - Digital Marketing (DM) = $40K - SEM Expense = $20K - Total S&M Expense = $600K 2. 𝗡𝗲𝘄 𝗖𝘂𝘀𝘁𝗼𝗺𝗲𝗿𝘀 𝗔𝗰𝗾𝘂𝗶𝗿𝗲𝗱 - Sales Executives = 500 new customers - DM Campaign = 1,000 new customers - SEM Campaign = 300 new customers - Total New Customers = 1800 3. 𝗖𝗮𝗹𝗰𝘂𝗹𝗮𝘁𝗲 𝗖𝗔𝗖 - CAC = $600K / 1,800 = $333 4. 𝗟𝗧𝗩/𝗖𝗔𝗖 𝗥𝗮𝘁𝗶𝗼 - LTV = $1,800 - CAC = $333 - LTV/CAC = 1,800 / 333 = 5.4 (An excellent ratio) 𝗞𝗲𝘆 𝗧𝗮𝗸𝗲𝗮𝘄𝗮𝘆: 1. Use consistent and relevant data points 2. Break down the formulas into simple steps 3. Keep the calculations straightforward and focused Don’t overthink it. Just stick to the fundamentals, and you’ll have a solid grasp on your CAC and LTV. PS. Join 5,000 founders at: thestartupfinance.com

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Explore the latest insights in our study on CEO compensation trends across various tech company sizes. This analysis delves into how private equity shapes competitive pay structures to attract and retain top executive talent. ▪ Lower-Middle Market: Salaries start competitively, with significant bonus potentials and equity stakes that reward growth and successful exits. ▪ Mid Market: Enhanced compensation reflects the complexities of scaling a tech firm, with substantial bonuses and equity designed to align CEOs with company success. ▪ Middle-Upper Market: Top-tier salary ranges with considerable bonus percentages and equity stakes, scaling with the strategic achievements and growth of the company. Swipe through our carousel for a visual exploration of how executive compensation evolves with company growth in the tech industry. For more detailed findings and to understand the implications for your business Read More ➡️ https://bit.ly/4hgCs5P #leadership #executivesearch #Csuite #CEO #compensation #tech

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Big moment in sustainable finance: The White House and 5 major pension funds met to discuss on labor standards in private equity investments. Public pension funds, wielding trillions of dollars, are demanding a voice for workers within the traditionally opaque world of private equity at the encouragement of the White House. Pension funds are using their power for good. It's key to highlight environmental justice "wins" - examples that show profit and social good can go hand-in-hand. This is sustainable finance at work: empowering workers and fostering a more equitable financial system. #sustainablefinance #environmentaljustice https://lnkd.in/e6W6CszZ

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How to get your company ready for a PE exit ⬇️ (A short 6-step no-BS guide) 1/ Assess & Plan – Know where your company stands and have a solid growth and exit strategy. 2/ Create Your Deck – This isn’t rocket science. Make a 10-page deck (not 50) that answers: • What does your company do? • How has it performed over the last three years? • What’s the plan for the next three years? • What’s the market like? 3/ Skip the Market Analysis – Don’t waste thousands on a market report. PE firms will do their own. They won’t trust your report anyway. 4/ Explain Why You’re Selling – Be honest. Whether it’s retirement, wanting a bigger house, or needing cash, just say it. If you’re hiding something, they’ll find out. 5/ Full Transparency – Never lie in your deck. Be upfront about your numbers, potential risks, and any legal issues. PE firms will dig into everything during due diligence. 6/ Active Selling – Be open about wanting to sell. If you’re worried about clients or staff leaving, have those conversations early. In the end, when PE firms see you’re straightforward, they’re more likely to work with you. Get your deck ready, be clear, be concise, and above all, be honest. If you need more answers on any of the above, reach out and let’s chat.

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Miami F1 did not disappoint, with all sorts of legendary entertainers, investors, and even scientists descending on Miami to see who could throw the best party of the week. I was fortunate to receive an invite to a party on the legendary 180-foot Gene Chaser, the support vessel for the floating laboratory, Gene Machine, which carries all the toys. The owner, best known for his contributions to next-generation DNA sequencing, was a fascinating person to meet and get to know. This yacht was the fastest in the marina, equipped with four Caterpillar engines reaching a top speed of 22 knots. It was also the most traveled last year, visiting places like Antarctica and Singapore. Fun Fact: This boat isn’t allowed in St. Barts because the intense heat from its exhaust could melt other yachts. My favorite part was trying out all the hardware, especially the first-ever portable brain MRI that will soon be going into space. This was probably my favorite event of the entire weekend. https://lnkd.in/eRF6Z7RN For specs on the boat, click on the link here: https://lnkd.in/eP7bnYtr #MiamiF1Experience #GeneChaserYacht  #NextGenSequencing #PrivateInvestmentLuxury #FamilyOfficeEvents #SuperyachtScience  #InnovativeInvestors  #LuxuryAtSea  #TechOnDeck #AdventureYachting

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Unlock the secrets to CPO compensation in the tech sector with our comprehensive analysis. Discover how private equity tailors lucrative compensation packages to attract and retain the industry’s top product leaders. ▪️ Lower Mid Market: Competitive base salaries with significant bonuses and equity stakes. Exit-based payouts are generous, rewarding innovative product strategies over several years. ▪️ Mid Market: Robust compensation reflects the complexities of managing a product portfolio at a growing tech firm, including substantial bonuses and equity options. Exit-based payouts align with the company’s product success. ▪️ Upper Market: Top-tier salaries, significant bonuses, and equity stakes result in substantial exit-based payouts, scaling with the CPO’s strategic impact on product innovation and performance. Swipe through our carousel for a visual exploration of how CPO compensation evolves with company growth in the tech industry, brought to you by Christian & Timbers. For more detailed findings and to understand the implications for your business Read More ➡️ https://bit.ly/4hgCs5P #CPO #CsuiteCompensation #compensation #techCPOs #pe #privateequity #christianandtimbers

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