Thomas Wisniewski

VC Market Update: Riding Out the Post-Boom Bumps. 2021's high-flying valuations and growth have given way to a more complex reality. With longer private timelines, tough exit markets, and capital tightness, startups face unique challenges—but also fresh opportunities. For those navigating today’s VC landscape, strategic planning is key. Whether it's balancing growth with capital efficiency or exploring secondaries smartly, there’s a path forward. And with boosts from AI and future rate cuts, brighter days could be ahead!

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What exactly is Pre-seed funding? Ask 10 different VCs, and you’ll get 10 different answers. In this video, I explain how I define pre-seed at The Council Capital and why it’s so important for founders raising their first round of capital. #VentureCapital #PreSeed #StartupFunding #FounderJourney

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The Evolving Landscape of Venture Capital: Are Emerging Managers DOA? There’s been a lot of debate lately around whether the VC ecosystem is being negatively impacted by the largest firms hoovering up LP money at the expense of Emerging Managers. The observation is real and it’s becoming increasingly clear that the venture capital industry is at a critical inflection point. But the phenomenon isn’t new. It’s been unfolding for years and was easy to spot. I wrote about it a few years back in a presentation titled “The Three Body Problem: Finding The New Stable Points In Venture Capital” and I’ll add a link in the replies if you’re interested in learning more. With this said, other experts have been writing about it as well. For instance, @wolfejosh ’s recent prediction that 30-50% of venture firms may cease to exist in the coming years is not just a provocative statement, but a stark warning to Emerging Managers and many established VC firms. When we consider that only 17% of venture funds make it to fund 4, and that 44% of VC capital raised this year went to just two firms, it becomes clear that the industry is starting to consolidate. This consolidation is not just a theoretical concern to Emerging Managers - it's a very real threat to the diversity and dynamism that has long been the hallmark of the very early stage VC ecosystem. However, while the outlook may seem bleak for many Emerging Managers, I believe there is a path forward. The key lies in understanding what Founders and LP are struggling to find within the "established" VC ecosystem and aligning with these unmet market needs. For Emerging Managers, the writing is on the wall: adapt or perish. The days of simply working hard and expressing a desire to LPs that you deserve to be a VC are long gone. Today's landscape demands true differentiation and specialized skill. Emerging Managers will do best if they position themselves firmly within one of two key boxes: The Solo VC or the Non-Consensus Alpha seeker. Hunting in thematically consensus spaces or chasing serial Founders with many options is a good way for an Emerging Manager to fail. The Solo VC Option Not all Emerging Managers fit in the Solo VC box. It requires a unique combination of skills, experience, and network that can provide outsized value to founders. Solo VCs win deals not because they can write the biggest checks, but because they can provide the most value per dollar invested. They are often industry veterans, serial entrepreneurs, or individuals with deep expertise in specific sectors. Their ability to provide hands-on mentorship, make crucial introductions, and offer strategic guidance is their competitive advantage. They need to be a “brand” in and of themselves, and if they aren’t, they’ll struggle to source and win deals. (For the full post click on the link that follows. LinkedIn limits word count!) https://lnkd.in/e_jqxhks

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That’s very accurate. PE Buyout Funds. Publicly traded parent companies with corporate VC arms scooping up the most profitable sector-specific subsidiaries. Fund of Funds get more popular and much more strategic. Family Offices dominate the landscape. Not investment advice.

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In a new op-ed I penned for Institutional Investor, I discuss the changing strategic buyer landscape for enterprise software companies. With software continuing to grow well in excess of GDP, and digital transformation at the top of C-suites’ agendas, the trend of multi-billion dollar software companies being acquired by non-traditional buyers should continue to accelerate. As always, all comments are welcome!

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Do the next generation of investors think about investing very differently? Hear the CIO of $125B AUM Bernstein Private Wealth Management, Alex Chaloff, on the latest Alt Goes Mainstream podcast talk about return expectations of younger investors. https://lnkd.in/ghkbFc26

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Interesting insights here... This research sheds light on the pivotal role that founder personalities play in shaping the trajectory of ventures. It underscores the importance of introspection and self-awareness for entrepreneurs as they navigate the complex landscape of building a business. For investors, these insights offer valuable guidance in assessing potential investments and understanding the human element behind the pitches. #Startups #Entrepreneurship #Investing

Successful ventures that have achieved Product-Market Fit and have scaled their operations will probably face this new reality: 𝗧𝗵𝗲 𝗻𝗲𝗲𝗱 𝗳𝗼𝗿 𝗹𝗶𝗾𝘂𝗶𝗱𝗶𝘁𝘆 𝗳𝗿𝗼𝗺 𝗽𝗿𝗼𝗳𝗲𝘀𝘀𝗶𝗼𝗻𝗮𝗹 𝗶𝗻𝘃𝗲𝘀𝘁𝗼𝗿𝘀. As explained by Mark Suster, this liquidity is most likely to come from Private Equity firms, who have the expertise to evaluate companies based on long-term fundamentals, much like the approach taken by Warren Buffett (rather than the speculative one from crypto-traders 😉). Valuation is not a one-time event but a dynamic process that follows a chain-like logic, where each link is interconnected. An irrational (high) valuation early in the chain can have significant repercussions later on, leading to fewer financing or liquidity options - as professional investors will not accept it. You may avoid this by establishing a clear valuation roadmap that demonstrates a consistent risk/return rationale for each type of investor, from business angels and venture capitalists to Private Equity firms and the Public Market, spanning from the first funding round to the eventual public offering. #EntryPriceMatters #ValuationRoadmap #PrivateEquity

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🌟 𝗩𝗖 𝗜𝗻𝘁𝗲𝗿𝘃𝗶𝗲𝘄 𝗘𝘀𝘀𝗲𝗻𝘁𝗶𝗮𝗹𝘀 𝗳𝗼𝗿 𝗙𝗼𝘂𝗻𝗱𝗲𝗿𝘀 🌟 Preparation can make all the difference in a venture capital interview. Here’s a guide to nail it: 📝 Prepare Your Answers: Common questions include your company’s mission, market size, and competitors. 📊 Highlight Metrics: Share key metrics like user growth and revenue to demonstrate traction and success. ⭐ Express Future Vision: Outline your short-term and long-term goals for your company’s growth. Equipped with detailed responses, you can approach your VC interview with confidence. #StartupPreparation #EntrepreneurAdvice #VCSuccess

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🌱 For founders taking on venture debt, covenants are the fine print you cannot afford to ignore. 📃 They set the boundaries for how you can operate and manage your company’s finances. If you don’t play by these rules, the consequences can be pretty dire. It’s all about negotiating terms that align with your startup’s financial health. Be sure to read the original post by Kruze Consulting to get the full breakdown. Link in the 1st comment. 👇 #StartupFinance

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🔎 The J curve is back in full force. Losers are found first, winners later and the extent of the winners last. Here are four ALTERNATIVE ways I'm assessing emerging managers: | 01 | A disciplined strategy. Excellent construction awareness | 02 | Future proofing the firm via a robust OS | 03 | A personal brand. Access to differentiated deal flow | 04 | Drawn to the cap table. Value beyond capital #VC #venturecapital

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With Assets-Under-Management(AUM) and hold-periods being record high, Exits are strategic priority for investors to make private equity flywheel spin again...Looking forward to Real Deals summit how operating partners are collaborating with portfolio companies on exit readiness including coherent equity story with due-diligence mindset and robust value creation plan.

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Thanks, Axial, for your findings. I'd rank the Management Team high in the business description. As investors, we are buying their core competencies, track record, market position, and strategic fit. #privateequity #buyout #independentsponsor #growthequity #food #beverage #CPG #healthwellness

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The words Private Equity have been distorted with the passage of time. The truth is PE done well is not only a value creation platform but also a force for good. We back good businesses, good teams, and together we build. More on Traub Capital Partners in this short video.

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Are you better off being an angel investor or an S/EIS fund investor? When you’re thinking about making early-stage investments for the first time, you have a choice of two main options: Invest directly into startups or invest into funds that invest a portfolio of startups for you. * Direct (Angel) Investing: You select and invest in individual startups, taking on the tasks of sourcing, decision-making, and managing your investment. * Fund Investing: You invest in a fund that invests and manages a portfolio of startups for you, handling the sourcing, investing, and management on your behalf. There’s a romantic notion attached to the idea of investing in startups - we can play Dragon’s Den and discover the next Reggae Reggae Sauce. For every Reggae Reggae Sauce, though, there are 100 other startups that fail along the way. The first rule of startup investing, whether you do it directly or through funds, is that you need to build a portfolio of companies to cope with inevitable losses. Investing directly into startups as an angel investor suits those with access to credible, high-potential startups. It’s a hands-on role that requires active involvement to source the startups. Further, most of the best startups have minimum investment amounts of £10k or £20k, which means direct investors often need a lot of available capital to properly manage risk by investing in a portfolio of companies. This doesn’t need to be done all at once, but that is the mindset every good angel investor should have when setting out on the journey. Fund investing, on the other hand, suits those who prefer to invest indirectly, relying on the access, experience, and skill of the Fund Manager to invest and manage the investments for you. It’s a hands-off approach, with investors not involved in management and simply kept updated on a regular basis. Because funds pool your money with others to invest in a portfolio of startups in one go, this can be a more effective way of managing risk while investing smaller amounts. Most SEIS and EIS funds have £10k minimums for investors, meaning you could build a portfolio of 10-20 companies for just £10k, rather than needing to invest £10k into 10-20 separate companies as a direct angel investor. Whichever approach you choose should depend on your resources, access, interests, and time. Regardless, though, a key principle to follow is to not be reliant on the success of just one or two companies; instead, build a portfolio of startups to manage risk and cope with inevitable losses along the way. Which one is best for you? Let me know if you’d like to chat. Capital at risk. For professional investors only.

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"Where are all the LPs?" something you might have asked yourself before... It might be time to reconsider your strategy to find them. Adopt these easy tips and let the LPs find you. 

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🚀 With this deck, Hinge Health Raises $300 Million in Series D at a $3 Billion Valuation 🚀 - Hinge Health, a pioneering startup in the digital health space, has just raised an impressive $300 million in its Series D round, securing a valuation of $3 billion! 🩺💰 - This funding round, driven by top investors, is a testament to the growing demand for innovative, tech-driven healthcare solutions. 👉🏻 Key Highlights: 🔷 Funding Amount: $300 Million 🔷 Valuation: $3 Billion 🔷 Lead Investors: A mix of leading venture capital firms and strategic investors. 🔷 Purpose of Funding: Expand product offerings, enhance R&D, and scale operations globally. 👉🏻Why This Matters: 🔷 Digital Health Revolution: Hinge Health is at the forefront of the shift toward digital-first healthcare, offering cutting-edge solutions for musculoskeletal (MSK) conditions. 🔷 Scalability: This capital will enable Hinge Health to broaden its reach, making its services accessible to millions more patients globally. 🔷 Technological Advancements: Continued investment in AI, machine learning, and wearable tech will enhance personalized care and treatment outcomes. 👉🏻 Facts & Figures: 🔷 Total Funding: With this round, Hinge Health has raised over $426M, positioning itself as a dominant player in digital healthcare. 🔷 Growth Trajectory: The company’s valuation surged from $1B in 2020 to $3B in 2024, reflecting rapid market adoption and expansion. 🔷 Customer Base: Hinge Health’s platform serves over 400 employers and health plans, including 25% of the Fortune 500. 🔷 Innovation: The funds will fuel R&D, expand the product offering, and scale operations, particularly in integrating AI and remote care. 👉🏻 Strategic Focus: 🔷 Product Innovation: Introducing new features like real-time virtual physical therapy and AI-driven personalized care plans. 🔷 Global Expansion: Targeting new markets in Europe and Asia to address the global MSK pain crisis. 🔷 Partnerships: Strengthening collaborations with healthcare providers, insurers, and employers to enhance service delivery. 👉🏻 What’s Next? - Hinge Health’s innovative approach to MSK care is revolutionizing how chronic pain and injury recovery are managed. - With this significant financial boost, the company is set to further disrupt the healthcare industry by providing accessible, effective, and scalable digital health solutions. 👉🏻 Takeaway for Founders: - Strategic funding isn’t just about capital—it’s about positioning your startup for sustained growth and innovation. - For those keeping an eye on the health tech space, Hinge Health’s trajectory is a clear indicator of where the future of personalized healthcare is heading. 🔰 P.S.: Let me know in the comment section, which startup's deck you want to see next. #startups #founders #funding #healthtech #startupgrowth #india #venturecapital #digitalhealth #innovation

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At our VC firm, we don't just fund companies, we fund your existential crises. Every investment comes with a complimentary philosophy book. #vc #startups #investment

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