Tom Rice

Insightful breakdown from my great Partner Omri Amirav-Drory on the simple factors that really separate the top 1% of investors from the rest, and how more operators should become investors! https://lnkd.in/gEiZdT2h

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Worth reading: Situationsl Awareness by Leopold Aschenbrenner PDF : https://lnkd.in/gkxQ3yMD Web site: https://lnkd.in/gyJUCBhb Interesting perspective, time of course will tell.

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PE - AI & Scarcity of Software Engineers Robert F. Smith of Vista Equity compared the scarcity of software engineers to resources rarer than gold, underscoring their high demand. However, today AI's growing ability to write code will transform Tech PE by accelerating software development and creation. Key impacts include: • More scalable software • Improved code quality • Shift in developer roles • Faster development cycles • Reduced development costs • Faster innovation and prototyping • Custom solutions for larger customers • Risk mitigation with AI-assisted debugging • Competitive advantage for early AI adopters • Lower barriers for scaling software development AI will amplify developer productivity, not replace them, and PE firms integrating AI into portfolio workflows can unlock the next wave of growth. ------------------ #pe #privateequity #investing #ai

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Since early 2021, VC quarterly exit values have plummeted to $50B or below, a stark contrast to the six consecutive quarters of $100B+ exits before then. With IPOs dwindling and M&A activity slow, the future of venture industry exits appears uncertain. Will we see a surge in private venture-backed company acquisitions? This could be a crucial and innovative strategy to boost VC exits. Increased private acquisitions might offer a much-needed lifeline, providing a creative solution to the current exit drought in the venture capital market. #venturecapital #inspireglobalventures

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This is a good resource I've stumbled upon. It covers a plethora of VC and startup-related topics and contains links to expand your knowledge. https://lnkd.in/dqkdV4fA TL;DR: "It's the founders, stupid!" These two lines made me hover over: "I know the physical and emotional tolls that entrepreneurs face". "Resources for Managing Founder Anxiety and Depression" I've been one myself, and it's not for the faint-hearted. I struggled and failed many times. From the standpoint of a person working now for a VC fund, the ability to support a founder who was hit with too much at the same time, to know how to listen, mirror and label Chris Voss's style, and a bit of guidance to build confidence back can do wonders. Assisting portfolio companies doesn't have to be just intros and throwing money or unsolicited advice. And what about identifying troublesome founders before investing to prevent assisting portfolio companies from becoming a nightmare flop? Ahh, that's a tricky one. Startups fail for a variety of reasons. At the early stage, we should look at many things, to name a few: product-market fit, go-to-market, blue ocean or zero to one, CAC and LTV ratio, CAP table, passion, leadership potential, intelligence, technical ability, and many, many more. Crunch the numbers. Sure. What about the early stage? Limited information and knowledge when a decision has to be made, and the outcome is impossible to predict because the future is unknown and unknowable. Examine the founders. If you don't read the founders right and overlook some hidden toxic traits and coping mechanisms that mask something that can derail the startup and founders down the road (vulnerable narcissism, antisocial tendencies, Machiavellism, blameshifting or more benign like anxiety-prone, conflict avoidance, burn-out tendency, inability to delegate, perfectionism, risk aversion, etc.), the chances that it will be your next outlier significantly diminish. How many of you saw dead equity on the capable, founders' clash, low morale, a founder playing the sunk cost game with the fund after burning cash, lying, or even more brazen behaviours like experimenting with horse tranquilisers and smoking weed on a podcast? A "Sudden" shift of values with a splash of megalomania could lead to a CEO removal attempt by the board. Or stealing "HER" voice. It is fun to watch as a TV drama, not to deal with as your portfolio. We won't be able to see it all during a few conversations with the founders and not everyone is Wendy Rhoades from Billions. Knowing how to ask a question behind which is a hidden question and being able to detect when founders say what they think we want to hear to get the funding is a good start. Spending extra time learning that is a good investment. A splash of psychology, empathy, self-awareness, and emotional intelligence to become an excellent GP won't harm your ability to identify and help the right entrepreneurs build great companies.

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I’m thrilled to be announcing that Notion Capital is leading the $15m Series A investment in Cogna today. In the industry, we like to think that software has been eating the world. But when you look at the data a better description would be more of a nibble. Depending on what source you look at the software industry represents between 5-8% of global GDP. Contrast that with the services industry that represents between 60-70% of GDP and worth around $25 trillion on a global basis. Most services have been out of reach for the software industry. They have either been too complex or too specialized for off the shelf software to access in any economically viable way. But that’s beginnning to change with GenAI leading to the emergence of ‘service as a software.’ Cogna is at the forefront of this opportunity - building precision software at scale and delivering huge productivity gains for traditional industries. We know Ben Peters & Lars Mennen well having backed their previous company Five AI that was acquired by Bosch in 2022. And we’re very excited to be backing them again together with Hoxton Ventures & Chalfen Ventures Read my full blog post on why we invested here. Radu Bozga Ben Peters Lars Mennen Bryan Gartner Mike Chalfen Hussein Kanji Kirsten Connell https://lnkd.in/eh8mhcJb

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I'm pleased to share that Lightrock has continued to support Thomas Doering and Distribusion Technologies in their $80 million Series C funding round. Distribusion is the leading global B2B ground transportation marketplace, addressing inefficiencies in this €700 billion market. The industry’s progress has been hindered by legacy technology, making multi-modal travel planning and booking difficult and time-consuming. This increases costs for consumers and negatively impacts sustainability as travellers opt for private cars and taxis over less polluting transportation options. Using a single API, Distribusion connects transport carriers like National Express LLC, Amtrak, and Deutsche Bahn with retailers such as Expedia Group, Google Maps, and Alipay. This allows consumers to seamlessly compare and purchase tickets on trusted platforms. There's a high likelihood that Distribusion has facilitated your travel without you knowing it. We led the company's Series B in 2022, and since then Distribusion has grown tenfold, creating the largest global B2B network of ground transport operators. This growth, combined with achieving profitability, has encouraged us to reinvest and continue with this company on this exciting journey. We look forward to continuing our work with this team. Learn more about #Distribusion via the link in the comments. #TravelTech #FutureOfTravel

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Startup Founders: here is a SUPER interesting list of emerging and first-check VC firms, many of them new or under-the-radar. Why should you care? Because... 1) emerging VCs are often easier to get in front of and, 2) since they are still building their track record, they will often hustle harder to make your startup a success. (Excellent work, Anne Gherini! :) #startups #venturecapital #entrepreneurship

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How do we make investment decisions at Scalebridge? 👀 This is a common question from founders and investors. 💬 To shed light on this opaque process, we are launching 𝗙𝘂𝘁𝘂𝗿𝗲 𝗼𝗳 𝗜𝗻𝗱𝘂𝘀𝘁𝗿𝗶𝗲𝘀 newsletter. Naturally, we kick things off with our investment theses. 🔮 🚀 𝗔𝘂𝘁𝗼𝗻𝗼𝗺𝗼𝘂𝘀 𝗧𝗿𝗮𝗻𝘀𝗳𝗼𝗿𝗺𝗮𝘁𝗶𝗼𝗻 is a key investment thesis at Scalebridge, expected to redefine the tech landscape over the next decade. 🌟 The potential immense opportunity, with >$𝟱 𝘁𝗿𝗶𝗹𝗹𝗶𝗼𝗻 𝗶𝗻 𝘀𝗽𝗲𝗻𝗱 up for grabs. ❌ Traditional digital transformation, despite heavy investment, has a failure rate exceeding 70% 𝗧𝗵𝗲 𝗰𝗼𝗻𝘀𝘂𝗹𝘁𝗮𝗻𝘁-𝗱𝗿𝗶𝘃𝗲𝗻 𝗱𝗶𝗴𝗶𝘁𝗮𝗹 𝘁𝗿𝗮𝗻𝘀𝗳𝗼𝗿𝗺𝗮𝘁𝗶𝗼𝗻 𝗺𝗼𝗱𝗲𝗹 𝗶𝘀 𝗯𝗲𝗰𝗼𝗺𝗶𝗻𝗴 𝗼𝗯𝘀𝗼𝗹𝗲𝘁𝗲, due to its rigidity and complexity. 🦾 Autonomous Transformation leverages data, workflow automation, and AI to achieve strategic goals with minimal manual interference. It allows for real-time autonomous decision-making and process adjustments, directing human efforts towards strategic management. 💸 The convergence of services and emerging technology capabilities has created 𝗼𝗽𝗽𝗼𝗿𝘁𝘂𝗻𝗶𝘁𝗶𝗲𝘀 𝗳𝗼𝗿 #automation 𝗰𝗼𝗺𝗽𝗮𝗻𝗶𝗲𝘀 to lead the future of Autonomous Transformation. These automation companies are poised to replace traditional IT services and consultancy, addressing accumulated technological and process debts. ❓𝗙𝘂𝗹𝗹-𝘀𝗰𝗮𝗹𝗲 #autonomoustransformation 𝗶𝘀 𝗮 𝗺𝘂𝗹𝘁𝗶-𝗱𝗲𝗰𝗮𝗱𝗲 𝗷𝗼𝘂𝗿𝗻𝗲𝘆, facing key challenges including limitations of #AI, #data quality & governance issues, and intricate enterprise #workflow. 💫 𝗔𝗹𝗹-𝗶𝗻 𝗼𝗻 𝗔𝘂𝘁𝗼𝗻𝗼𝗺𝗼𝘂𝘀 𝗧𝗿𝗮𝗻𝘀𝗳𝗼𝗿𝗺𝗮𝘁𝗶𝗼𝗻 𝘁𝗵𝗲𝘀𝗶𝘀 𝘀𝗶𝗻𝗰𝗲 𝗗𝗮𝘆 𝗢𝗻𝗲. A new wave of automation startups is spearheading #autonomoustransformation, replacing traditional consultancy and IT services. The future is here! Check out our investments: Versori, Spendkey, Garvis (exited), Trusstor. 📥  https://lnkd.in/ehUh6eiW #Automation #Scalebridge #thesis #VC #emergingmanager #founder

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As we get prepared for our Angel Conference program, we run workshops to help get things lined up for the right conversations between investors and early pre-seed startups. We have a deadline coming up on August 27th for startups. One of the places that we see companies having a bit of trouble is on the customer discovery side of things. So we have a couple of workshops on that early customer discovery and associated efforts to get traction early before your MVP. As Angel Investors, we need to think with a portfolio mindset instead of investing in one or two companies to "see how it goes". We have a panel of SAC alumni talking about their perspectives on their portfolio of companies. We also know that startups don't practice pitching enough. So we we have workshops for improving pitches before people pitch for real. You can see the upcoming workshops here: AI+Lean  Building automated content experiments for customer discovery Tuesday, August 6, 2024 10:00 AM to 12:00 PM PDT https://lnkd.in/gJMiyQZC Building Your Angel Investment Portfolio Tuesday, August 6, 2024 6:00 PM to 8:00 PM PDT https://lnkd.in/gD9ATSyG Pitch Deconstruction and Review Thursday, August 8, 2024 12:00 PM to 2:00 PM PDT https://lnkd.in/g-RRajrX Finding your first paying customers Tuesday, August 13, 2024 10:00 AM to 12:00 PM PDT https://lnkd.in/gN-DaRJ8 Angel Investing and Taxes Thursday, August 15, 2024 12:00 PM to 2:00 PM PDT https://lnkd.in/gjs9cQfy Solving Real Problems: The Key to Market Success Tuesday, August 20, 2024 10:00 AM to 12:00 PM PDT https://lnkd.in/gYkJFD-X Structuring a Pitch Deck That Engages Investors Thursday, August 22, 2024 12:00 PM to 2:00 PM PDT https://lnkd.in/geyYR4wB Seattle Angel Conference (SAC 26) Application Deadline Tuesday, August 27, 2024 9:00 PM to 9:05 PM PDT  (But REALLY … Apply early)  https://lnkd.in/gM_fSmbZ  Companies need to apply here - https://lnkd.in/gWbtkAaf Please let the folks around you know about these workshops.

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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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Thrilled to share our latest podcast episode featuring Peter Marton, co-founder & CEO of OpenMeter! We talked about how OpenMeter is transforming AI billing with their usage-based pricing model. Peter shares his journey from Netflix & Stripe to building this Y Combinator-backed startup, plus insights on: - The pain points of traditional billing for developers - Why open-source is key to transparency in AI monetization - How OpenMeter is empowering companies to manage AI costs effectively - ...and much more! Check out the full episode here: https://lnkd.in/ebAQFhi7 Let me know: What's your biggest challenge with adopting usage-based billing for your products or services? #startups #entrepreneurship #AI #API #monetization #OpenMeter

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📚 Holiday weekend reading: “Plurality.” This philosophical approach applies open technologies to foster diverse collaboration and coordination and solve our societal challenges. Technology can and will bring diverse viewpoints together with the transparent debates needed to come to coordinated solutions. These open technologies today encompass the powerful capabilities in our innovation systems today: open source #AI models, permissionless #blockchain, community #web3tokens, interoperable #metaverses, among the many public goods enabled by emerging technologies. Our social relationships provide the universal values and effective direction for such innovations to impact our world towards positive sum growth. “Plurality” is the central subject of a new book by Microsoft’s internal economist Glen Weyl and Taiwan’s former Minister of Digital Affairs Audrey Tang. That book collects ideas in a donation supported ebook.

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Insightful look into bioplatform strategy, and what it takes to raise a Series A from my partner, Omri Amirav-Drory: https://lnkd.in/dFv7GbF6

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What do you do when a radical new technology puts your main product right in the crosshairs of disruption? Listen to David Okuniev — co-founder of Typeform | Ask awesomely — discuss the challenges of innovation within existing structures. David shared a game-changing insight: Radical innovation is really, really difficult to do inside your own product. He emphasized the need to break free from the constraints of familiarity and embrace change from outside the box. Henrik Werdelin and I have both seen our fair share of this in our respective careers. What struck us most was how David leveraged structure to overcome the innovator’s dilemma. By creating a culture of experimentation and providing space for bold ideas, he propelled Typeform beyond incremental improvements. What other hacks have you seen or employed to help your organization overcome the innovator’s dilemma? Share your stories below! 👇 And if you want to dive deeper into our conversation, click the link in the comments to catch the full podcast episode!

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We're launching the inaugural edition of Beyond Benchmarks, a deep dive into the metrics and trends observed across the early-stage enterprise cloud market. This is the first look at some of the business data around GenAI in SaaS. Some initial observations: 1) 60% of SaaS companies have already integrated GenAI into their offerings (60% of these as part of their current product and 40% as a new product), and an additional 20% are planning to do so this year. Almost half aren't monetizing these features. Those that are are primarily experimenting with both usage-based and flat fee pricing models. 2) Most companies are utilizing OpenAI as their primary LLM, but many are experimenting with multiple models - and we are noticing an early trend towards intelligently routing GenAI inference requests to different models based on cost, performance, and security. 3) Though we are in the initial innings of GenAI, we are seeing some positive signals - companies that implemented GenAI had 7% higher NDR than those that did not. Still early days, but we'll be doing this benchmarking report regularly to track and share how things progress in this new era. Link to report in comments.

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