Leonie J.’s Post

According to venture culture, pre-seed founders need to👇 👉 Raise £500k - £1m 👉 At valuations of £5m - £10m 👉 To grow exponentially quickly But every year, many thousands of founders 👇 👉 Raise £10k - £50k to start a business 👉 At a valuation of under £1m 👉 Grow at a steady rate We need to stop trying to build a business for VCs There are so many better ways to build.

According to venture culture, pre-seed founders need to👇 👉 Raise £500k - £1m 👉 At valuations of £5m - £10m 👉 To grow exponentially quickly But every year, thousands of founders 👇 👉 Raise £10k - £50k to start a business 👉 At a valuation of under £1m 👉 To grow at a steady rate We need to stop trying to build a business for VCs

What’s the difference between executing a $5M and a $50M+ fundraise? While smaller rounds often proceed with less formality, larger fundraises demand rigorous planning and careful execution. Here's why: 1️⃣ More Scrutiny: Bigger deals mean larger financial exposure if things go wrong. Investors and regulators alike will inevitably apply hindsight bias if a flashy fundraise fails and pore through your pitch decks and investor disclosures looking for misstatements and important omissions. 2️⃣ More Real-World Entanglement: Larger rounds usually happen once your company is well past the idea or MVP stage, so you need to assess how investor rights and governance arrangements affect real-world operations. This requires advisors to have a strong understanding of your industry and your business. 3️⃣ Strategic Founder Control: More governance means less control of the company by founders and more strategy around what rights the founding team needs to retain or specifically negotiate to scale the company. 4️⃣ More Stakeholders: Balancing needs among stakeholders becomes more complex because your investors will have bought in at different valuations and have different rights. Advisors also need to be able to balance needs between internal stakeholders, such as the executives that founders have while growing their company.  Remember, the more money that’s involved, the more crucial it becomes to have clear, well-thought-out processes and advisors who understand your business and your goals. #fundraising #riskmanagement #startup #venturecapital

There are a whole group of companies that were “good” businesses, but were forced to make stupid decisions in hopes of becoming "great" businesses (eg unicorns). The truth - not all biz’s are meant to be great - and a good business is a whole lot better than a defunct one. There are a lot of reasons to take VC or other forms of outside investment - from actually funding your operations, to adding valuable advisors. But the best part about bootstrapping? Freedom. And the ability to invest when, where and how you choose. Deciding to not raise capital in year 1 was more necessity than choice for Stacker. But deciding not raise a round in years 4, 5 and 6? There is something incredibly freeing about sitting with a leadership team and knowing that the strategy, and all the decisions that come with it, are ours to make. Conversely, so many founders raise a round early on, not realizing that it's a 1 way door with no turning back - they've committed to gunning for a 10x exit, or bust. We need to normalize not gunning for a billion dollar exit - and building good businesses that make decisions towards sound, steady growth.

Understanding business terms is the first step to success in the corporate world. From startups and conglomerates to trusts and holding companies, this will empower you with the knowledge to navigate conversations, strategies, and decisions like a pro. 💼✨ Swipe through to discover essential business terms, explained in simple language, and start applying them in your journey today! 🚀 📌 Save this post to level up your business knowledge anytime! #friendswithfinance01 #businessbasics #corporateworld #startupjourney #financialliteracy #businessterms #entrepreneurship101 #learnandgrow #IPO #venturecapital #businessstructure #holdingcompany #conglomerate #financeeducation #investsmart #businessgrowth #knowledgeispower #careerdevelopment #financeforall

#StartUpJourney #EquityConcerns #Fortune500Acquisition Hey everyone! 🌟 I’ve been part of a late-stage startup for about five years now, and it seems like we're on the brink of being acquired by a Fortune 500 company. It's super exciting but also a bit nerve-wracking! I want to know if anyone has insights on how to gauge the worth of equity in situations like this. Are there too many variables to consider until the deal is actually finalized? Here’s my situation: Vested Options: I currently have around $8,000 vested. Vesting: There's an additional $15,000 that's set to vest monthly. If the acquisition were to happen tomorrow, I honestly have no clue if my equity would be worth $8,000 or a whopping $800,000! 😳 That's a pretty big difference! And what about the non-vested options? 🤔 How are those treated in an acquisition? Here are a few pain points that come to mind: Valuation Uncertainty: Until the deal closes, knowing the true worth of your equity can feel like a guessing... How Can I Assess My Equity Value Before a Fortune 500 Buyout? Answers: https://lnkd.in/gTfG8486

Getting exits through secondaries is no cakewalk, and this is what deters a lot of startups from offering secondaries to their shareholders and employees. It's simpler if an existing investor is buying the shares or the secondaries is happening parallel to a primary round. Which happens once every blue moon. See, the issue with secondaries is that these deals are very sensitive in nature. 1: They have to be done privately. 2: Data shared is extremely confidential and managing that is crucial. 3: It requires plenty of negotiation and access to data. 4: It has to be in the best interest of every stakeholder - the company, its management, shareholders, employees, and incoming investors. 5: The deals are time-sensitive. The above points to name just a few. The ability to manage these and every facet of a secondary transaction in the most seamless manner is what gives incentiv an edge over anyone else who has even attempted to do this. And we have executed some of the most complex secondary deals and are working on dozens more right now. If you are a founder, shareholder, or investor serious about secondary exits or investments, reach out to me or my team. Indranil Tiwary Ranjit Sundaram Chetan Pasari #incentiv #privateequity #secondarysale #liquidity #secondaries #startupequity #indianstartups

𝐍𝐨𝐭 𝐓𝐡𝐢𝐧𝐤𝐢𝐧𝐠 𝐀𝐛𝐨𝐮𝐭 𝐚𝐧 𝐈𝐏𝐎 𝐀𝐟𝐭𝐞𝐫 𝐘𝐨𝐮𝐫 𝐒𝐞𝐫𝐢𝐞𝐬 𝐁? Not So Fast… Many founders believe an IPO is just paperwork, a roadshow, and you’re done. But in reality, it’s a 𝐩𝐫𝐨𝐜𝐞𝐬𝐬 𝐨𝐟 𝐩𝐫𝐞𝐩𝐚𝐫𝐚𝐭𝐢𝐨𝐧, 𝐚𝐥𝐢𝐠𝐧𝐦𝐞𝐧𝐭, 𝐚𝐧𝐝 𝐬𝐭𝐫𝐚𝐭𝐞𝐠𝐢𝐜 𝐩𝐨𝐬𝐢𝐭𝐢𝐨𝐧𝐢𝐧𝐠. Picture this: You’ve just closed your Series B, your tech is strong, and things are moving fast. But as you approach Series C and D, the stakes get higher and the exits narrower. Fewer acquirers. More challenging deals. So why should you care about an IPO now, with Series B capital fresh on the table? Because if you want your business to reach that $5 billion+ valuation—making your VCs look like investment superstars after backing you at a $500 million pre-money valuation—the public markets are your best path forward. And public markets are where investors who 𝐟𝐨𝐥𝐥𝐨𝐰 𝐂𝐡𝐚𝐫𝐥𝐢𝐞 𝐌𝐮𝐧𝐠𝐞𝐫’𝐬 𝐩𝐡𝐢𝐥𝐨𝐬𝐨𝐩𝐡𝐲 are waiting. These are the investors with the deepest pockets—your future key "customers." But they come with expectations, and they’re not impressed by flashy growth stories. They expect more than potential. They demand 𝐥𝐨𝐧𝐠-𝐭𝐞𝐫𝐦 𝐫𝐞𝐬𝐢𝐥𝐢𝐞𝐧𝐜𝐞, 𝐬𝐜𝐚𝐥𝐚𝐛𝐥𝐞 𝐛𝐮𝐬𝐢𝐧𝐞𝐬𝐬𝐞𝐬, 𝐬𝐭𝐫𝐨𝐧𝐠 𝐭𝐞𝐚𝐦𝐬, 𝐚𝐧𝐝 𝐟𝐢𝐧𝐚𝐧𝐜𝐢𝐚𝐥 𝐜𝐨𝐧𝐭𝐫𝐨𝐥𝐬 that build confidence. In this week's newsletter, I break down: 1️⃣ The biggest IPO myths founders fall for 2️⃣ How to align your startup with public investor expectations 3️⃣ The critical steps to building a company that thrives in public markets Curious about how to make your business IPO-ready? 𝐑𝐞𝐚𝐝 𝐭𝐡𝐞 𝐟𝐮𝐥𝐥 𝐧𝐞𝐰𝐬𝐥𝐞𝐭𝐭𝐞𝐫 to uncover the secrets top founders are using to win over public investors. [https://lnkd.in/dkfr-_Dy] #DeepTech #SeriesA #SeriesB #IPO #Founders #VC #PublicMarkets #Growth #Entrepreneurship #CharlieMunger #LongTermThinking

Did you know that being a Founder in start-up land is not all that great for most founders? Why? Because once they take venture capital on board they are not in charge anymore not withstanding the fact that they founded the company. Here is what often happens and what these founders have to live with: • They cannot take important decisions by themselves, it has to go via "the board". • They may still have a lot of stock of the company, what's it worth is not in their hands and when the company is sold at what price neither. • Investors will demand that in case of a sale they will first get their money back before the proceeds are distributed. Chances are high that you fetch NOTHING if you have taken VC money at high valuations. • Investors may allow you to keep your honorary title of Founder while they put outside people or investor related professionals in charge of the company as CEO and CFO. You will be a witness to what's happening in the company you founded. • Investors may replace you and fire you. • If more VC money needs to be taken on board you may need to be watered down completely meaning you would never benefit from the fruits of your hard labour in the early years. Many people congratulate founders when they raise money, I pity them, for 99% it's downhill from there.

Why your business needs an exit strategy from Day 1: When co-founders start a business, everything is usually built on trust and mutual confidence. But here's the thing—many small businesses don’t put a Shareholders' or Founders' Agreement in place and instead rely on the Model Articles of Association (here in the UK). This works—until it doesn’t. Problems arise when one co-founder starts acting in a way that’s unfair or prejudicial to the other. Without a clear exit strategy in place, things can quickly spiral. For example, if you want the company to buyback your shares, it requires more than 50% shareholder votes. In a company with only two shareholders, this can easily lead to a stalemate if the other party won’t agree to let you exit at market value. The lesson? Don’t wait until things get complicated. Discuss your exit strategy at the start of the business to avoid future disputes. Trust is great, but a well-drafted agreement is better. #Startups #Founders #Shareholders #ExitStrategy #BusinessLaw #businesses