Nicole DeTommaso’s Post

HOW TO GET A VC's ATTENTION 1. Research firms (they write and talk a lot) 2. Find firms that invest in your stage 3. Find firms that invest in your idea space 4. Figure out who the GPs / investors are 5. Figure out who they've invested in previously 6. Contact the people they are connected to 7. Be SUPER clear about your pitch to the "middleman" 8. Your message should be extremely succinct 9. Make it worth their while to read your message - possibly offering advisory shares if needed 10. Get the warm intro

Let's talk about buy-and-build strategies in Private Equity for a minute. Over the past few years, roll-up strategies have gained momentum as a savvy way to achieve multiple arbitrage and deliver attractive returns for investors. 📈 (check out the graph below) And let’s face it—it’s been working pretty well! Private Equity investors can truly be game-changers, offering both capital and invaluable expertise to support a company’s inorganic growth journey. When executed effectively, this can be a powerful value creation lever! 💪✨ However, it’s essential to tread carefully. Aggressively pursuing a buy-and-build strategy solely for financial engineering can introduce unnecessary complexity and inefficiencies within organizations. 😟 The key? Striking the right balance between "strategic fit" and "financial engineering." ⚖️ Would you agree? 🤔💬 #PrivateEquity #Strategy #ValueCreation #BusinessGrowth

Could not agree more - setting aside even just 15-20 minutes before a screening call can really make a tremendous difference. I always recommend looking over the following: - Company pipeline/platform - Relevant publications or recent press releases (check news tab on website) - LinkedIn profile of who you will be speaking with as well as senior leadership - THE JOB DESCRIPTION Coming prepared will always leave a better impression.

Founders: VC associates are your best friends. Too many founders try to skip the line and go straight to the partner, thinking this will speed things up or give them a better chance to get investment. It's exactly the opposite! Associates get bonuses based on how many deals they source get through the investment committee. Associates know what the partners are looking for. Associates will help you to: - Change your pitch to more effectively convince the partners - Help you build out your data room to match partner preferences - Set expectations for round structure (valuation/paperwork) to avoid friction with partners - Save you time! They'll tell you if it's too early or if something is missing so you don't waste your time. They know other associates and can refer you to another VC that might be a better fit. If I were a founder again I'd make friends with all the best associates and meet them regularly.

Founders: I encourage you to do research on investors before getting on the call. Please do not spend 25-30% of your allotted pitch time asking basic questions about a fund or their prior investments. Pitch time is for you and your company to shine, not the VC. Equally important, you showing up ill-prepped doesn't leave the VC confident in your execution skills.

While it can be technical, VC is not hard. It seems we never really sat down to understand what makes a VC firm successful 99% of the time. Just what if, as opposed to investing in as many companies as possible in a fund, we were to invest in just 2 or 3 and get *at least* 3x returns and get to such results 99% of the time. I think the formula used now is wrong. I do have a solution to this problem, but again, NO FUNDING, NO SPEAKING. But know that the present formula will only continue in decline.

Hot take: the concept of a use of funds slide is severely outdated. let's talk about it In the '90s, VC looked more like private equity, focusing on well-developed companies with lots of data. Detailed fund allocation made sense then. However... the landscape has evolved significantly over the last 30 years. Today, founders are raising capital at much earlier stages, yet they cling to the outdated use of funds slide and fill it with broad generalizations and made-up numbers. This slide has become ubiquitous, but it hasn't been properly adapted by early-stage companies. So. Let's rethink this. What do early-stage investors actually need to know? Forget the superficial numbers. Focus on what truly matters to them: a clear path to significant milestones or profitability. Investors want to see that you’ll achieve one of two things with their funds as an early-stage company: 1. Reach profitability or break-even. 2. Hit specific milestones that make your narrative compelling for the next funding round. This is what keeps them interested and invested in your journey. If you're thinking of including a use of funds slide in your pitch deck, focus on one of the two things I listed above. Don't have it be a wasted slide that VCs glaze over. I went into way greater detail on this topic in this weeks newsletter. If this caught your attention, make sure to go give it a quick read. I'll leave it down below!

Small-cap IROs: How much time do you have to invest in targeting? You might be operating with limited resources or as a team of one. So, what should you focus on? Start by identifying the right investors—not just the big names but smaller funds focused on your sector or your peers. This strategic approach ensures you invest your time wisely, maximizing your chances of engagement. Our COO, Mark, expands on the importance of strategic investor targeting for small-cap companies. You can hear Mark and Steven's full conversation on IR Magazine. Follow the link in the comments!

At Venture Asset Finance, we believe in empowering businesses with the right financial solutions. With professionalism, transparency, and honesty at our core, we’re here to make your growth goals a reality. Whether you're scaling up or investing in new opportunities, we’ve got you covered. Let’s unlock your potential together. 💼✨ #FinanceBroker #BusinessGrowth #TailoredSolutions"

You might NOT like having a VC onboard. It’s not all rainbows and sunshine. Having investors has its drawbacks. The intensity and amount of drawbacks varies. It depends on the investor choice you make. Here are some of the drawbacks to consider: - acting in their own interest, instead the company’s - too demanding reporting requirements - external pressure for rapid growth - one more relationship to manage - “hidden” term-sheet provisions - differences in company vision - potential cap-table issues - dilution of founder shares - veto rights on decisions - overinflated valuation You might be better off without a VC. Consider this decision carefully. And lookout for the red flags. See my comment below. (📌) P.S. What else you noticed goes wrong with investors? Share with me in the comments. ⬇️