Andrew Miller’s Post

I'm pumped to roll out v2 of my term sheet valuation webinar on the "option pool shuffle" tomorrow, Sunday, 9/8, at 1 p.m. EST. I've revamped slides based on attendee feedback and will now cover the following: - Authorized shares vs. outstanding shares - Option pools and expected dilution - The concept of "fully diluted" cap tables - Headline vs. effective pre-money valuation - Pre-money vs. post-money option pool refreshes - Negotiating the "option pool shuffle" - Using "founder promote" to compare term sheets We have 15 confirmed attendees: - 7 VCs - 6 aspiring VCs - 1 founder - 1 angel We're at capacity for tomorrow's webinar, but if you want to attend next week's webinar on Sunday, 9/15, at 1 pm EST, you can apply here: https://lu.ma/tk24iqcn

I was very happy to be part of a panel at this year’s Blueprint conference. Congrats to David Hirschman, Vik Venkatraman and team for assembling so much of the passion and talent within our industry in one giant space. In just a few years, they built Blueprint into one of the most important rallying points in our industry. Thanks as well to my fellow panelists - Gavin Myers, David Weiden, Jenny Song - and moderator Sami Sparber. Here’s some of what we discussed on stage: 1.     “What are some of the latest, most exciting trends you’re pursuing within proptech?” --  I began by stating pretty emphatically how much I don’t like that question, but it was a great place to start, because Sami set me up to make a point that I think is really important. It’s not about trends. It’s not about hype cycles. It’s about the enormous gap between the massive scale of the real estate ecosystem and the still relatively low rate of technology adoption within that universe. Closing that gap is not easy, but there’s so much opportunity for people, and companies, and investors who figure out how to do it. 2.     There is a robust and varied network of investors to support the best real estate technology entrepreneurs. This was not the case when we started Camber Creek. We were, to our knowledge, the first VC in the space exclusively focused on real estate technology. Now there are a number of firms with that focus in varying degrees. Gavin described Prudence as a former generalist, and David got excited about what he called moonshot investments, companies that will most likely fail, but if they succeed, will win big. 3.     Jenny talked about insisting new technologies - be it crypto, AI, etc - solve existing problems within real estate. It’s a good bar to set, which many people don’t. 4.     This one's obvious: great founders matter – Too great a focus on trends can obscure this constant. It’s evergreen. All in all, quite an enjoyable panel. #realestatetechnology #proptech #venturecapital #conference  

PitchBook's Q2 2024 US VC Valuations report highlights the trends and ongoing challenges we've seen in the VC market. AI continues to drive valuations, capturing nearly 50% of deal value. However, the prevalence of flat and down rounds has reached a decade high, with valuation growth between rounds slowing. Public markets have also seen price/sales ratios stagnating with underperforming SaaS and consumer tech IPOs. Check out the report below.

🚀 How can you climb the Maslow Pyramid of Offtakes? Key lessons from our Ripple at The Drop on demystifying offtake agreements. ✨ We had an amazing experience hosting our Ripple session at The Drop with HV Capital, diving deep into a critical piece of the puzzle for scaling climate tech: offtake agreements. Bringing together startups, corporates, and investors, we gained some key insights worth sharing here. These are essential for anyone navigating the commercialization of breakthrough technologies. Key Takeaways:  1️⃣ Offtakes = Long-term partnerships: Go beyond transactions. Build relationships that grow with your project.  2️⃣ Early alignment is everything: Get offtakers and investors on the same page from day one.  3️⃣ Flexibility wins: Create flexibility where you need it to handle the unexpected while keeping progress on track.  4️⃣ Let your tech speak: Show your customers what you can do—seeing is believing.  5️⃣ Smart pricing fuels growth: Create pricing strategies that scale with your project and build customer loyalty.  6️⃣ Make it bankable: De-risk your agreements and involve financial partners early to attract investment. 👉 For more insights and a deeper dive into these strategies, check out the Medium post linked in the comments below. 🙏 A massive thanks to The Drop team for making this event extraordinary. Special thanks to HV Capital for helping us explore this critical topic. A big shoutout to our brilliant speakers — Andrew Symes (OXCCU), Philip Kessler (Turn2X), Albert Luu (Heirloom), Sidd Bhat (IFM Investors), Cynthia Kueppers (Novo Holdings), Georg Reifferscheid (Rewe Group), Mats Torring (Stena New Ventures) — for sharing your insights! Cc: Yair Reem, Sebastian Heitmann, Sarah B. Söding, Fernanda Bartels, Jan Miczaika, Maxi Pethö-Schramm, Marie Bos, Kasey-Leigh Davies

Explore VC opportunities with PitchBook's latest data-driven research report. Our comprehensive analysis covers various sectors including SaaS, agtech, and foodtech, providing unique insights into future returns on investment. Leveraging our advanced ML-powered VC Exit Predictor, our team accurately predicts the success path of upcoming startups and anticipates potential payouts for early backers. Stay ahead of the curve and make informed investment decisions with our in-depth analysis. #VentureCapital #InvestingOpportunities

Lots to learn here

Brightwave just dropped a $15M Series A like it’s nothing—seriously, wake up if you’re sleeping on this one. Decibel Partners led the charge, with OMERS Ventures sliding in to seal the deal. This round? It’s not just a win—it’s a loud reminder that Brightwave is flipping the financial research game on its head, and everyone else is just trying to catch up. Props to co-founders Mike Conover and Brandon Kotara for building something that’s not just shaking things up—it’s straight-up shredding the old playbook. Four months since seed and already 4x revenue growth? Yeah, that’s not a typo. These guys didn’t come to play—they’re here to run laps around the competition. Brightwave’s platform isn’t some basic, plug-and-play nonsense. This is next-gen, AI-powered financial analysis that chews through data like a beast. SEC filings, earnings call transcripts, market news—boom, it’s all there, packaged up in real-time, actionable insights. No fluff, just straight-up gold for asset managers and financial pros who need to move fast. Want the full story? They’ve got you with deep-dive reports and interactive features to keep you ahead of the game. Even Decibel’s Alessio Fanelli couldn’t hold back: “Brightwave’s financial knowledge graph is transforming the way investors approach research and decision-making.” Translation: they're turning the firehose of financial data into a laser-focused stream of pure money moves. So yeah, congrats to Brightwave for bagging this $15M and reminding us all that they’re not just another fintech—they’re the future. Keep your eyes on these guys—they’re just getting started. #FinTech #AI #AIAnalysis #FinancialResearch #Finance #Data #AssetManagers #Innovation #Technology #TechEcosystem #SeriesA #VentureCapital #StartupFunding

TechInAsia just launched their GlassWall portal: Where founders leave anonymous reviews for us VCs in the space. Some thoughts on what founders want after reading dozens of reviews vs realities: 1. They want more than money Network access, investors on speed dial, operational support. In early stages, this might not be possible. Most funds investing in those stages prioritise portfolio diversification and deal velocity. Given the size of portfolio, individualised support for each team can be challenging. Get aligned on expectations and balance your dream investors roster accordingly. 2.They want quicker deal-making One perspective is some VCs are intentionally dragging out the process. Reality is VCs have to answer to LPs. Especially in big rounds, expect the ‘dating period’ to stretch out for investors to build conviction. That said, I don’t condone sudden ultimatums or pressure-tactics to bring down valuations. VCs should take the time to build conviction, not string founders along. 3.They want to be respected There is no room for VCs to be disrespectful to founders. Granted, founders need the capital and VCs have it, VCs are standing on the shoulders of founders and their hard work to succeed. It costs nothing to be kind. Politely decline deals, avoid talking down to founders. Founders/ people remember how you make them feel. 4.They want the awesome terms Some VCs put out predatory terms. Some founders ask for rich valuations that they have yet to grow into. This is a conversation that needs both sides to negotiate and discuss. Great terms are relative and also dependent on market environment. The best terms are the ones that both founder/ VC can agree on and set the company up for success. Given the horror stories I have heard, I welcome this initiative. It gives power back to Founders and keeps VCs honest. That said, we should remember that there're two sides to the fundraising conversation. There is currently no way to “verify” reviews. Founders should wield this power constructively. Thanks Tech in Asia for introducing this to keep VCs honest P.S. Now when can we have an LP Glasswall 😉?

Let's talk about that critical leap from the first to the second call with investors. Here are three insights I’d like to share:- Fueling Energy and Urgency: Building a company is undeniably tough, but making that initial impression counts. What sets apart successful founders? It's the energy and impatience to build something remarkable, right here, right now. Yet, sometimes, conveying this vitality can be tricky, especially through video calls. I've found that simple tricks like standing up during calls, taking a brisk walk beforehand, and keeping pitches fresh can make all the difference. The aim? To show up with the vigor and determination to seize every opportunity. Mastering the Details: While the first call may not delve too deep, knowing your company inside out is non-negotiable. Founders who aren't fully versed in their market, competitors, and customer; risk undermining investor confidence. Reflecting on my own experience, thorough knowledge about the market landscape bolstered my confidence in our strategy. It's all about living and breathing your company, showcasing your unwavering commitment at every turn. Alignment with VC Needs: The path forward can be derailed if there's a disconnect in ambition or market potential. Establishing clear milestones that resonate with market demands for the next round is crucial. Additionally, articulating your vision to build a billion-dollar enterprise and demonstrating alignment with the VC model are paramount. Remember, by infusing your interactions with energy, showcasing your meticulous attention to detail, and ensuring your aspirations sync with what VCs are seeking, you greatly increase your chances of progressing to that coveted second call and beyond. Have questions or insights to share? Drop them in the comments below! 👇 #founderinsights #investmentstrategies #nvestiv

below is another post making the rounds. All the comments and reposts are basically “poor founders! Evil investors!” and despite spending the entirety of my career on the founder’s side of the table I… think the investors acted normally Especially at early stages of a company small pivots are expected, and any investor who can’t handle that shouldn’t be investing early. But huge pivots (the post referenced involves a pivot into an entirely new market sector) are entirely different. Founders sell a vision and pitch investors to join them on that specific journey. You can’t pivot to something different entirely and automatically expect that journey to also resonate with them. I can’t raise money to develop AI for stock market analytics and pivot to being a betting platform for tortoise racing. It’s the Founder’s JOB to sell the investors, or Board, on any hard pivot. You need to get their support by laying out why the new journey is equally compelling to the one they signed up for. If you fail to do that, of course the Board could (and should!) vote to wind down and return funds. They invested in the original thesis, that thesis failed, and cutting their losses is more compelling than gambling on the backup plan. It doesn’t mean the new idea doesn’t have merit, it’s just not what the original investors signed up for, and that’s fine. The Founders can shutter the first company, start a new one with a focus on the new idea, and raise fresh capital for the new plan from new investors who want to sign up for THAT journey. There’s lots of stories of badly-behaving investors out there. This isn’t one of them.