Tom Tang

We have a handful of seats remaining for our 2nd biannual "Moves in VC" reception+dinner next week at #SFTechWeek, with 35 venture firms and LPs already confirmed to attend. 👉 If you are a senior VC or LP who has made a move in the last 12 months (new firm/fund launch, changed firms, or promoted), give us a heads up so we can consider you for one of the remaining seats --> https://lu.ma/2i17dp33

4

1 Comment

Summary: The article discusses the current challenges faced by VC firms in attracting new capital, but highlights how established firms like Kleiner Perkins are still able to raise large funds. It also touches on the potential impact of AI on investment strategies. Key takeaways: Many VC firms are struggling to secure new capital in a tepid IPO environment. Established, brand-name firms like Kleiner Perkins are still able to raise significant funds. AI is emerging as a potential game-changer in the investment landscape. Counter arguments: It may be premature to attribute Kleiner Perkins' fundraising success solely to AI; other factors could also be at play. The article may overlook smaller VC firms that are also finding success in fundraising. #venturecapital #vc #venture #startups #artificialintelligence

5

Elizabeth Cook, Managing Partner of VC firm AI Capital, addresses the art of the [VC] deal: An intricate blend of relationship building, offering a succinct and concise value proposition, domain expertise, and of course, profit! #venturecapital #vc #ai #artificialintelligence #enterpriseai #startups #entrepreneurship #investing #alternativeinvestments #familyoffice #pensions #foundations #endowments

19

- Thoma exits Venafi at $1.5b at ~10x ARR - They bought the biz at $1.15b ~4 years ago at 11.5x ARR - Only a 1.3x in ~4 years (and could be less depending on CyberArk's stock) - 50% of the deal is in CyberArk stock, trading at $10b, at 12x multiple at close to all-time highs, and up 60% in the last year - The deal will allow Venafi to expand CyberArk's TAM by nearly $10 billion - Despite this, the stock has been flat since the announcement - CyberArk is growing 37% YoY //Objectively a weak exit for Thoma despite Venafi's solid performance and scale //Or is this a strong exit considering the headwinds to go public, an inability to trade up to bigger PE, credit markets still in the sh*tter, and a need for PE to provide liquidity and positive returns to LPs? //Is this a top performer in their portfolio or run-of-the-mill? //Thoma can book the return, funnel $ back to LPs, LPs re-up in the next fund, and Thoma has more $$ to deploy at depressed prices //Very interesting to see pricing of other exits like this in the near term https://lnkd.in/gBqkvP48

20

In the season finale of Brex's Controllers Classified podcast, BCV partner Sarah Hinkfuss spoke with Erik Zhou to discuss the VC investment landscape and how BCV approaches due diligence for growth-stage companies. For founders, there are three things that are important to share with investors: 1. Your unit economics, or how you think about your business drivers. It’s by far the most important thing today and those inputs (e.g. customer cohort data, gross margin, sales and marketing costs) give you a complete picture of the business. 2. Your business model, or how you think about your future. It doesn’t have to be a huge, complicated spreadsheet. Rather, it’s an important instrument to show people how you think about the business. What is your view of the future and what do you believe are the most important drivers of the business? 3. Your memo, or your narrative. A popular format today is to tell your story in a memo, not a deck, and it’s great because the writing process forces more complete thoughts to give investors a full view of your business and vision.

27

1 Comment

ADI's Jason Taylor, CFA, FRM was in-person for a great Data Driven NYC event hosted by FirstMark's Matt Turck. Below are 𝟓 𝐤𝐞𝐲 𝐭𝐚𝐤𝐞𝐚𝐰𝐚𝐲s ⬇ 💵 Cost optimization is a priority, driving interest in LLM-based products that can deliver cost efficiencies. 🔗 Integrating LLMs into production-ready solutions requires combining multiple components beyond just the LLM model itself. 🎖 Technical skills are not the sole factor for LLM adoption - champions across different roles facilitate adoption as user barriers are lowered. 🚀 Quick access to vast information is a key value add and highly desired by users. 🔊 Successful product development and sales rely on being customer-centric - understanding user needs by being on the ground and actively listening to clients. What were your biggest takeaways? Share your thoughts in the comments below! Renen Hallak VAST Data Jonathan Rosenbluth Cohere Gabriel Hubert Dust Ben Lerner Espresso AI #ai #LLM

25

Check out our latest #SourceTalks with John Novak, Head of Investment Development and Capital Markets at Paine Schwartz Partners as we discuss the firm’s industry-focused investment strategy and the importance of technological development in the M&A space. #SourceTalks #PrivateEquity

8

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

6

The Information just broke the news of the incredible $8B+ #fundraising haul, with General Catalyst nearly doubling its last total. Fund breakdowns include $4.5B for "core venture funds," $1.5B for their "core creation team," and $2B for "multiple accounts." This was a 33% oversubscription to their $6B fundraising target, which surfaced in April 2024 by the Financial Times. While this is great news for the #entrepreneurial founders, the key question /challenge for General Catalyst will be where to place the newly closed funds to deliver the returns expected by their #limitedpartners that entrust them with their hard-earned capital. What do you think? #management #venturecapital #privateequity #capitalmarkets

1

🚨 Important Update for the VC Community! 🚨 The SEC just made a significant move that could redefine the venture capital landscape, particularly for smaller firms. 💥 Here's what you need to know: 1. Asset Threshold Raised: The SEC has increased the asset threshold from $10 million to $12 million. This change means that more venture capital firms can now operate without the need for heavy regulatory registration. It’s a substantial relief for smaller and emerging VCs, allowing them to focus more on what matters—investing in the next big idea. 2. Implications for Emerging Managers: This regulatory shift is a huge win for emerging managers. By easing compliance burdens, it opens the door for more diverse and innovative investors to enter the market. This diversity in capital sources is crucial for fostering a more dynamic and inclusive startup ecosystem. 3. Benefits for Early-Stage Startups: With more VCs able to participate without stringent regulatory hurdles, early-stage startups stand to benefit. Increased access to capital means more opportunities for innovative ideas to get the funding they need to scale. This could be a pivotal moment for entrepreneurs looking to make their mark. 4. Long-Term Impact: This adjustment by the SEC could lead to a new wave of entrepreneurial success. By lowering barriers and widening access, we might see a surge in groundbreaking innovations, with more startups getting the support they need to thrive. #VentureCapital #Entrepreneurship #Startups #Innovation #InvestmentStrategy #EmergingManagers #RegulatoryChanges #SEC #CapitalRaising #TechNews #SmallBusiness #StartupFunding #VCTrends #FinancialRegulation #InclusiveInvesting #TechCrunch

17

3 Comments

Reasons why I care about more women being LPs in venture funds (specifically in Fireroad Ventures, but generally, too): 1. Diverse dealflow. A lot of dealflow to fund managers comes from their LPs, and women know women starting ventures. 2. Opportunity perspective. The more diverse our perspectives around problem spaces, the more we'll understand an opportunity. 3. Talent networks. When one of our portfolio companies is making a key hire or looking for a service provider, the first network we tap is that of our LPs. Women know women who are ballers in their field. 4. Economic empowerment. When I worked in philanthropy, the adage was that women make 94% of a household's financial decisions. After fundraising for a year, I don't buy that anymore because it is NOT true for household investing decisions. Let's make sure that investing opportunities are part of those financial decisions and that women are empowered to bring opportunities to the household, not just "giving permission" to their partners. 5. Selfishness. When I wire money to a new portfolio company, there are two faces in my mind: that of the founder and that of an LP. I imagine myself introducing the founder to the LP and try to think about how the LP will feel about their money being allocated toward that opportunity with that leadership. It's *so* personal. I'd like to see more women on both sides of that mental exercise because there are women at every stage of my career that have played significant roles modeling, supporting, and propelling me in my own path.

30

4 Comments

Seed VCs are turning to new ‘pro rata’ funds that help them compete with the big firms Alpha Partners, SignalRank and now SaaS Ventures help seed VCs pay for shares when big VCs try to price — or push — them out Lee Edwards, partner at Root VC, has a saying at his firm that “pro rata rights are earned, not given.” That may be a bit of a stretch since pro rata refers to a term that VCs put in their term sheets that gives them the right to buy more shares in a portfolio company during consequent funding rounds to maintain an ownership percentage and avoid dilution. Still, while these rights are not exactly “earned,” they can be expensive. One of the latest trends in VC investing these days are funds dedicated to helping seed VCs exercise their pro rata rights. https://lnkd.in/dRM3RvdA By Christine Hall

13

On this week's Andreessen Horowitz Raising Health podcast, Vijay Pande, PhD and I interviewed Tom Hale, CEO of ŌURA. Our conversation spans lots of fun topics, including: -- Our love for our Oura rings, despite them being literal “buzz kills” in revealing the ruinous effect of alcohol on sleep  -- How the worlds of consumer and healthcare are merging, as consumers essentially now have access to clinical-grade wearable devices  -- How AI algorithms are deployed in wearable devices & what wearables might look like 20 years from now (implanted into our bodies and clothes)  -- How the sexiest people sleep in earplugs and eye masks Check it out! https://lnkd.in/eTAsX_sY

83

9 Comments

Summary: Alpha Partners, founded by Steve Brotman in 2014, announced a $153 million third fund to invest alongside early-stage VCs and help preserve their ownership in promising companies. Key takeaways: Alpha Partners' strategy of helping seed-stage VCs exercise pro-rata rights is more relevant than ever as startups stay private for longer and other mechanisms for maintaining stakes lose popularity. The firm invests in companies led by top-tier VCs, with over $10 million in revenue and close to profitability. Alpha Partners has had successful exits and its investment in Coupang's Series G and F has put the firm on the map. Counter arguments: With fewer later-stage deals getting done, some may question whether Alpha Partners' strategy will continue to be successful. Some may argue that the firm's criteria for investment is too strict and may miss out on promising opportunities. #venturecapital #vc #venture

2

Berkeley SkyDeck is offering cash, resources, and critical introductions for admitted startups to its next cohort. Founders, review Darren Cooke’s great summary for health startups and other multi-stakeholder startups to convey your value proposition to potential investors and partners. I would like to add: Please include the data showing how you have validated your value proposition by talking to many, many decision makers. You must validate the key aspects of your business model with customer data to attract the key resources and partners you need to go from vision to reality. You can do this! 💪🏼 Go Bears 🐻! #startups #venturecapital #innovation #entrepreneurship | University of California, Berkeley | University of California, Berkeley, Haas School of Business | UC Berkeley Innovation & Entrepreneurship

15

1 Comment

As a GP in climate venture capital, I often meet high-net-worth individuals or family offices new to VC, wondering if they should invest as LPs. While LPs choose which VC funds to partner with, GPs also select which LPs to admit. VC is not a typical financial product—it's a relationship. LPs and GPs will work together in the same fund for the typical 10-year fund life. It's crucial for LPs to understand the firm's strategy before becoming fund LPs and be good partners with the other limited partners, potentially supporting the fund's best outcomes. Common Questions from New LPs 1. Can I take my money back in the middle of the fund? Typically, no. VC investments are long-term, and GPs expect LPs to stay for the full time horizon. Startups need time to mature and exit, requiring patience. However, you can trade your LP shares in the secondary market, though this may involve negotiation and a valuation cut. 2. Can I force the GP to invest or not invest in a startup? No. LPs cannot and should not influence GP investment decisions. GPs have a portfolio strategy and make decisions for specific reasons. Trust the GPs' expertise. If their financial returns align with the fund's goals, join the next fund. If not, look into the reasons but don't interfere. 3. Is VC more risky than growth capital? Many believe early-stage investments are riskier than later-stage ones, but VCs typically return 3x with longer time frame, whereas growth funds return 2x with shorter time frame. Growth investments need careful valuation. The 2022 SPAC wave's stock price drop did not end too well for many growth investors. 4. Does having brand-name co-investors demonstrate a good GP? No. Each fund or investor has its own strategy. Strategic investors might invest for synergies, not just financial returns. Focus on understanding GPs' rationale rather than buzzwords. 5. Should LPs have irrelevant requirements on how GPs should run a fund? LPs need to know the asset class and sectors they are investing in. If unfamiliar, GPs can provide background information. Imposing irrelevant requirements can hinder operations and make GPs reconsider the partnership. GPs prefer constructive input and have limits on the number of LPs and the size of checks accepted. By understanding these points, new LPs can better navigate the venture capital landscape and form productive partnerships with GPs. Fellow GPs, other points to add?

39

3 Comments

ANNOUNCEMENT- I’m delighted to share that Asset Class has partnered with Palantir Technologies to bring AI to the Alternatives and Private Capital Markets. At Asset Class we will integrate the AIP platform and Foundry capabilities of Palantir with our Fund Operating System (Fund OS). We will work with the AIP Platform and Palantir's Foundry Ontology to support highly complex tasks / co-pilot features that will allow us to leverage the FULL dataset that comes with the Asset Class Platform. By linking EVERY step of the Investor and Fund journey on a SINGLE platform, we have a uniquely complete dataset that can inform our AI actions. Over time we will integrate this as part of our Asset Class Network. This will continue to ensure Asset Class is a far more powerful system than any other in the market. We are a platform - not just an app. In the near future, we will be an AI Enabled, Networked Platform I cannot wait to bring the power of AI to our platform to enable our clients to super-charge their investment in our platform. See announcement here: https://lnkd.in/eCSy5Tnu

13

6 Comments

Southeast VC Update: Q2 2024 PitchBook Venture Monitor Highlights The Southeast continues to hold its position in the VC regional landscape #5 in dollars raised for Q2 2024 🥉 #3 in deal count (just behind the West Coast and the Mid-Atlantic) H1 2024 Southeast Breakdown:  📊 10% more deals than Northeast  📈 30% more deals than Mountain region, 20% more than South  💰 5% more dollars raised than Mountain region  💸 23.5% more dollars raised than South YoY Funding Trends:  📈 Southeast: Up 29% 📈 Mid-Atlantic: Up 136%  📉 Midwest: Down 67%  📉 New England: Down 11%  📈 West Coast: Up 59% Key Trend: While closing in on Mid-Atlantic numbers, we are seeing more deals but smaller rounds. This could indicate strong activity occurring in the seed & early-stage funding, despite the macro challenges. (Pitchbook classifies the Southeast as AL, FL, GA, KY, MS, NC, SC, TN, Puerto Rico, & Virgin Islands) #BuildInSE

20