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𝗛𝗼𝘄 𝗠𝘂𝗰𝗵 𝘁𝗼 𝗔𝗹𝗹𝗼𝗰𝗮𝘁𝗲 𝗳𝗼𝗿 𝗣𝗿𝗲-𝗦𝗲𝗲𝗱 𝗜𝗻𝘃𝗲𝘀𝘁𝗺𝗲𝗻𝘁 𝗶𝗻 𝗩𝗮𝗿𝗶𝗼𝘂𝘀 𝗦𝗲𝗰𝘁𝗼𝗿𝘀? To figure out how much of your pre-seed investment should go into different areas, consider these queries: -What motivated me to kickstart this venture? -Which issue are my potential customers really hung up on? -What hurdles must I overcome to get my enterprise off the ground? This could encompass aspects like team dynamics, market trends, regulatory environments, and technological advancements. -Is it possible to tackle any of these challenges? If you can, expect to BOOST your business's value substantially in the upcoming funding round. Having pondered these points, you ought to reverse-engineer the assets required to achieve your goals. For instance, dedicating half of your pre-seed funds to craft and evolve a Minimum Viable Product (MVP) could be a smart move. It's a way to verify whether your offering resonates with the market and if it's something your clients genuinely need or merely desire. Next, allocating 20-30% of your funds towards marketing and operational expenses could cover hiring external experts like accountants, solicitors, and various professionals crucial for your business now and shortly. #PreSeedFunding #StartupGrowth #MVP 🚀💼🌱

⚡️Get ready for due diligence 👍   Before you can raise investment for your start up you need to navigate the stage of fund raising called due diligence or DD for short. 🤿 Due diligence (DD) is a process where professional investors dive deeper into the company, opportunity and the team. This process happens both pre and post term sheet and takes a considerable number of weeks to complete especially for larger ticket investments.   👉 Below are 6 key tips to ensure you're prepared when the time comes:   1️⃣ Get organised: get all your financial statements, business plans, IP assets, LOIs, MOUs, legal agreements, employment contracts, share option agreements prepared and collated.   2️⃣ Understand what information investors are really interested in: showcase a deep understanding of the problem your solving, how you think about the problem differently, how your thinking and unique insights create a better solution and create a competitive advantage and open up new verticals over time to enable to company to scale. Define your traction and future plans overlayed with sensible bottom up financials. Provide references for the team.   3️⃣ Demonstrate why investment fuels growth: investors want to repeat your successes, show how raising capital will fuel current traction enabling the company to grow faster validating your current valuation. 4️⃣ Include a risk register and reference linked documents. This will enable investors to navigate the deal room more effectively. Be honest about the risks your start up faces investors want to help mitigate and address those challenges.   5️⃣ Tier the data room so that you allow access to more sensitive data over time. Pre and post term sheet. Don’t provide open access to every interested party. 6️⃣ Use a data room platform: this allows you to bake in NDA terms which are agreed - upon access. Platforms also allow you to see who is accessing which documents and control access more carefully over time. Docsend, dealroom, DataVault as three possibilities.   🚀 It’s useful for first time founders and angel investors to know how to be ready for the DD process. Stay tuned for a deeper dive into how top run your DD process coming soon.   #startup #angelinvestment #founders # SEIS #duedligence

What does the ideal closing process look like? With 450+ funds launched through our accelerator program and direct management of 70+ Decile Partner firms, we’ve distilled key drivers behind a fund’s early success. For confidentiality purposes, we will refer to this fund as ‘Fund VC’. Our experience with Fund VC, a standout among our fund launches, offers valuable insights into a quick and effective closing process - achieving their first close in 4 weeks. Key Insights for a Successful First Close: 🤔 Distinctive Niche: Fund VC’s success was largely due to its well-defined, niche-focused thesis. The fund’s deep ties with a strong community of founders and startups provided a compelling value proposition to LPs, showcasing promising deal flow and exit opportunities. 🗣️ Effective Pitch Deck: Continuous refinement based on our feedback through multiple reviews and LP rejections enhanced their deck’s appeal. The fund’s ratio of 4:1 pitches to PACTs underscored the importance of resilience and adaptability in gaining investor interest. 🗓️ Proactive Scheduling: Fund VC’s approach of scheduling a minimum of 20 LP meetings per week was crucial. They exemplified the importance of prioritizing meetings with potential LPs over distractions. 💰 Securing Commitments: Prior to closing, Fund VC secured $3.7M in PACTs, mindful of the attrition rate among LPs. This cushion enabled a successful first close at $3M. It’s important to anticipate this drop when calculating a first close. (Note: minimum to have a healthy first close is approximately $1M) 📈 Streamlined Operations: For new and emerging managers targeting a typical $5M-$10M fund, simplicity in operational and legal agreements is key. Fund VC’s reliance on standard agreements and Decile Partners’ efficient management facilitated a smooth formation and first close in 4 weeks. (Note: avoid complicated structures and agreements that will require costly legal revisions) 🤖 Automated Systems: Leveraging Decile Hub, the all-in-one tool for VCs, for automated closing and capital call processes allowed the fund manager to focus on essential activities like fundraising and deal sourcing, streamlining administrative tasks. Fund VC’s closing process underlines the value of a distinct investment focus, proactive LP engagement, and operational efficiency. #venturecapital #vc #investing #closing #fund #accelerator

A great summary of how a first close works for a new or emerging manager in Venture Capital. IMO a great insight is to always count for a number of LPs not joining the close. This could lead to a failed close, and you don't want to be in those shoes! #venturecapital #firstclose #startups

Always exciting to add new people to the team. 👏 At EVIDENT, our mission is to make innovation-driven alternative assets—those that will define the future—accessible to a wider community of investors. In an industry where distribution remains fragmented, we are taking a strategic approach by aggregating distribution across a variety of channels—from high-touch, relationship-driven engagements to digital platforms. What unites these efforts is our focus on leveraging fully automated digital processes, driving efficiency and cost reduction to better serve investors and asset managers alike. The launch of EVIDENT Capital Advisors is an important new chapter in expanding our fundraising capabilities. Under the leadership of Arnold Wong, Partner & Managing Director, ECA is already gaining momentum with its first client mandates secured. Arnold brings a wealth of expertise and vision, and I’m excited to see the team take shape with the addition of Amy Ye to strengthen our efforts to connect asset managers with forward-thinking investors. This journey began, as so many great partnerships do, with a personal connection—a mutual recognition that we shared the same values and vision. From that first interaction, it was clear that Arnold and I would one day work together. Today, we’re making this idea a reality to reach and serve more investors, empowering them to invest in the transformative sectors of tomorrow. 🙌 Arnold, Amy: so great to work with you. Here’s to what comes next. https://lnkd.in/gY6q9uyX #partnership #team #alternativeinvestments #wealthmanagement #familyoffice

𝗙𝗿𝗮𝗰𝘁𝗶𝗼𝗻𝗮𝗹 𝗢𝘄𝗻𝗲𝗿𝘀𝗵𝗶𝗽: 𝗔 𝗠𝗼𝗱𝗲𝗿𝗻 𝗔𝗽𝗽𝗿𝗼𝗮𝗰𝗵 𝘁𝗼 𝗜𝗻𝘃𝗲𝘀𝘁𝗶𝗻𝗴 Fractional ownership has evolved from a niche strategy to a game-changer for high-net-worth individuals. By owning a fraction of high-value assets, investors can diversify their portfolios without a hefty capital commitment. 𝗞𝗲𝘆 𝗣𝗼𝗶𝗻𝘁𝘀 𝗮𝗯𝗼𝘂𝘁 𝗳𝗿𝗮𝗰𝘁𝗶𝗼𝗻𝗮𝗹 𝗼𝘄𝗻𝗲𝗿𝘀𝗵𝗶𝗽 𝘄𝗶𝘁𝗵 𝗪𝗲𝗯𝗦𝘁𝗿𝗲𝗲𝘁: 𝘚𝘩𝘢𝘳𝘦𝘥 𝘖𝘸𝘯𝘦𝘳𝘴𝘩𝘪𝘱: Pool resources to collectively own assets like real estate, aircraft, or digital businesses. 𝘖𝘯𝘭𝘪𝘯𝘦 𝘉𝘶𝘴𝘪𝘯𝘦𝘴𝘴 𝘖𝘱𝘱𝘰𝘳𝘵𝘶𝘯𝘪𝘵𝘪𝘦𝘴: Platforms like WebStreet offer fractional ownership in online businesses, providing diversification and professional management. 𝘓𝘰𝘸𝘦𝘳 𝘍𝘪𝘯𝘢𝘯𝘤𝘪𝘢𝘭 𝘊𝘰𝘮𝘮𝘪𝘵𝘮𝘦𝘯𝘵: Minimum investments as low as $60K, making high-value assets accessible. 𝘗𝘢𝘴𝘴𝘪𝘷𝘦 𝘐𝘯𝘷𝘦𝘴𝘵𝘮𝘦𝘯𝘵: Enjoy the benefits of asset growth without active management. 𝘗𝘳𝘰𝘧𝘦𝘴𝘴𝘪𝘰𝘯𝘢𝘭 𝘔𝘢𝘯𝘢𝘨𝘦𝘮𝘦𝘯𝘵: Expert portfolio managers ensure optimal asset performance. 𝘋𝘪𝘷𝘦𝘳𝘴𝘪𝘧𝘪𝘤𝘢𝘵𝘪𝘰𝘯: Spread investments across various business models, reducing risk. 𝘈𝘭𝘪𝘨𝘯𝘦𝘥 𝘐𝘯𝘵𝘦𝘳𝘦𝘴𝘵𝘴: Profit-based payouts ensure managers are incentivized to perform well. #FractionalOwnership #Investing #DigitalAssets #PassiveIncome #WebStreet #Diversification 

How to Write Your Monthly Investor Update ? Credits to Sahil S. follow for more insights ------ Here's the original post: How to Write Your Monthly Investor Update ? Here are 7 things you should include in the email 👇 If you are struggling to raise fund for your startup, I strongly suggest to write a monthly / bi-weekly update with all the progress you are making on the business. (As shared in my previous post - https://lnkd.in/e55MQide) This works for two reasons: → Investors invest in the trajectory of companies & people. It's impossible to get a trajectory without watching a narrative unfold with time → If you do what you say you are going to do, and document it, this puts you in the top 5% of founders. Things to include in an email - 1️⃣ TLDRs - Start the update with this. One paragraph max. You want your investor to in 30 seconds get a [green, yellow, red] pulse on the co and determine whether they should invest 30 more minutes, a few hours, or 1+ days to dig in to help. 2️⃣ Asks - Next have 2 or 3 bullet point asks, the more specific the better. The easiest asks are intros. Investors are well-networked. Firing intros takes me ~5 minutes and are high value. Jumping on a call takes ~30 mins. 3️⃣ KPIs - bar chart - Immediately get to this. Two high-level numbers. Usually monthly revenue, plus another key KPI. Show a monthly growth graph of each. If you're hiding this, something is wrong. 4️⃣ 2nd order KPIs - table - 8 to 10 metrics you keep an eye on. Usually in a table, by month. If your investor is an expert in your area, this can help them debug and catch things you don't see (ie. give you benchmarks across their portfolio on default rates, etc) 5️⃣ Hi's / Low's - Typically 3 bullets on wins, 3 bullets on what can be better. Most will scan the wins. Helpful investors will give some help or feedback on the challenges. 6️⃣ Optional things - Then it's all optional stuff. I've seen updates on key initiatives, bullet points on key PR to help with sharing, maybe some feel-good team photos, etc. Rotate interesting things in/out to keep it interesting. 7️⃣ What's next - End with targets for next month or quarter as well as key initiatives. Shows you know what game you're playing and how to keep score. Helps build investor trust. #Startup #innovation #entrepreneurship #sustainability #investing #networking #venturecapital

Excited to share our approach at transforming revenue-stage ventures into institutional powerhouses. By focusing on de-risking, creating dedicated funds, and vertical integration, we’re setting a new standard in investment. Strategic Shifts for Growth: We specialize in transitioning ventures by backing them with the financial strength and strategic insight needed to scale. Our investments start at $100 million, targeting U.S.-based companies ready for monumental growth. Vertical Integration: Our philosophy leans heavily towards acquiring essential services our portfolio companies use, from marketing to software development. This not only optimizes operations but also significantly cuts costs, enhancing overall efficiency and control. Tax Liability Reallocation: We employ innovative strategies to reallocate tax liabilities as working capital, maximizing resources to fuel growth and scalability. We’re not just investors; we’re architects of growth, committed to building lasting value and efficiency. If your venture is poised for this transformation, let’s connect and explore how we can reach new heights together. #InvestmentStrategy #PrivateEquity #VerticalIntegration #GrowthCapital

🚀 Resource Vault for Capital Raises 🚀 Our updated 2024 Resource Vault for Capital Raises in RE / PE: Over the last 18 months we’ve put together dozens of raises, deals, and investment strategies (and have helped 100+ others do the same). Resource vault highlights: • Walkthrough of the most 3 recent deals we’ve successfully raised for ($5M - $40M deals) • 5,000+ accredited investor list  • 2,000+ institutional & professional investor list • Fund / Portfolio Acquisitions excel model  • GP / LP waterfall excel model  • RE pitch deck slide by slide roadmap  • PE pitch deck slide by slide roadmap  • Startup pitch deck slide by slide roadmap  • Brand guidelines template  • Capital raising sales process swipe file  • Fund & scaling syndication marketing plan This resource vault is the frameworks of where we start with every new raise / investment strategy. Some key details: • Investor lists are obtained through our proprietary b2b & b2c data aggregation software, matching search intent, company type, net worth, etc. • Materials are what we have personally used in $500M+ in deals To get access, complete BOTH of the following steps: Step 1: Comment on this post Step 2: Send me a DM / InMail (with a connection request if we’re not already connected) saying "Resource" and I will send you access. Complete BOTH steps, comment and message to receive access. —--------------------------------------------------------------------------- 👉 Work with us on your next capital raise → [ bettergp . com ] —---------------------------------------------------------------------------

📊 𝗩𝗖 𝗩𝗮𝗹𝘂𝗮𝘁𝗶𝗼𝗻 𝗧𝗲𝗰𝗵𝗻𝗶𝗾𝘂𝗲𝘀: 𝗜𝗻𝘀𝗶𝗱𝗲𝗿 𝗦𝗲𝗰𝗿𝗲𝘁𝘀... Venture capital valuation is a complex yet crucial aspect of modern finance. Understanding the intricacies of start-up investments can give you a significant edge in the world of high-stakes finance. 🔍 𝗞𝗲𝘆 𝗖𝗼𝗻𝘀𝗶𝗱𝗲𝗿𝗮𝘁𝗶𝗼𝗻𝘀 𝗶𝗻 𝗩𝗖 𝗩𝗮𝗹𝘂𝗮𝘁𝗶𝗼𝗻: • Lifecycle Stages: From founding to exit, each stage impacts valuation differently. • Capital Structure: Understanding the nuances of preferred shares and their economic rights is crucial. • Valuation Methods: PWERM (Probability-Weighted Expected Return Method) and OPM (Option Pricing Model) are key tools in the VC toolkit. 💡 𝗜𝗻𝘀𝗶𝗴𝗵𝘁𝘀 𝗳𝗿𝗼𝗺 𝘁𝗵𝗲 𝗘𝘅𝗽𝗲𝗿𝘁𝘀: • Expected Returns: VC investments typically target 15-20% returns at the portfolio level. • Exit Strategies: IPOs and M&As are common, with M&As occurring more frequently. • Dilution: Expect dilution depending on future funding rounds needed. 🔢 𝗧𝗲𝗰𝗵𝗻𝗶𝗰𝗮𝗹 𝗧𝗼𝗼𝗹𝘀: • PWERM: Allows for modeling multiple future scenarios, including IPOs, strategic sales, and liquidation. • OPM: Provides a framework for allocating equity value across different classes of shares. • Backsolve Method: Useful for deriving implied enterprise value from recent funding rounds. ------- #VentureCapital #StartupValuation #FinanceInnovation #InvestmentStrategy #FinTech Credit: Mercer Capital ------ If this was helpful, drop me a follow for more like this! Pickle Rooms