Norbert Fernandes’ Post

#Bain_Capital #PowerSchool Private multi-asset alternative investment firm Bain Capital is to acquire PowerSchool Holdings, a provider of cloud-based software for K-12 education, in a transaction valuing the business at $5.6bn. Under the terms of the agreement, PowerSchool stockholders will receive $22.80 per share in cash upon completion of the proposed deal. The per share purchase price represents a premium of 37% over PowerSchool’s unaffected share price of $16.64 as of 7 May 2024, the last trading day prior to media reports regarding a potential transaction. https://lnkd.in/d69ySF5H

As the landscape of education continues to evolve, private equity is emerging as a pivotal force driving transformation within schools. This infusion of investment and expertise is reshaping traditional institutions to meet the demands of modern learning environments. "The entry of PE firms has provided a lifeline, offering both financial backing and the necessary expertise to usher in a new era of educational excellence," says Jasmeet Singh Chhabra, Co-founder, JV Ventures Read more at  https://lnkd.in/g24GD8EZ #Education #PrivateEquity #K12 #moderneducation #JVVentures #EdTech #SchoolInnovation #Educationreform #expertise #investment #acquisition #schools #growth

Venture Capital News - Venture Capital News Headlines

I am frequently asked: What do you expect from angel investing money-wise/ROI-wise? I don't know what the future holds, but there is a reliable and AFAIK the most cited study on angel investment returns called "Returns to Angel Investors in Groups" that can be considered a kind of KPI. The Wiltbank/Boeker research analyzed outcomes from 539 accredited angels, covering 1,137 exits across acquisitions, IPOs, and firm closures. Here's what they found: 💸 Average Return: 2.6x investment in 3.5 years – an impressive 27% IRR, rivaling private equity. 🔀 Return Distribution: - 52% of exits returned less than the capital invested. - sad truth. - 7% of exits generated 10x+ returns, accounting for 75% of all returns. Critical success factors for higher returns: 1. Due Diligence: Angels who spent 20-40 hours per deal had better outcomes. 2. Expertise: Having knowledge or access to expertise in the investment area boosted angel returns. 3. Active Involvement: Regular mentoring, coaching, and performance monitoring led to significantly better results. Angel investing is extremely risky, and this is not by any means a financial advice. Still, with the right strategy, the rewards can be substantial. 📈 The link to the source of data is in my first comment below ⬇️ #AngelInvesting #Investment #Returns #IRR #Startups #PrivateEquity

Cap Tables: Interpreting a commonly misunderstood cornerstone of equity.    Check out my latest Substack post. Happy reading! #CapTable #Fundraising #Startup #ESOP #VC

“We are grateful to our investors for their continued support in this oversubscribed share offer.” 🪙 Trevor Hope comments on the £50 million oversubscribed fundraise for the Baronsmead VCTs. “We are enthusiastic to deploy this capital in an exciting growth equity market which is poised to benefit from a wave of dynamic technological changes driven by the adoption of generative artificial intelligence and generally improving economic conditions.” As with previous years, this 2023/24 tax year fundraise was oversubscribed above its initial £30mn target, reflecting strong investor demand despite a challenging fundraising environment. https://lnkd.in/e5nRF77x #growthequity #vct | Capital at risk. Not an investment recommendation. 

A guide to understanding essential #equityterms, from common stock and #stockoptions to vesting schedules, helping you navigate the world of finance and investments with confidence. #startups #equity Link: https://shorturl.at/2fQks

Debt forms just 2% of early-stage startups’ capital stack. But the financing landscape is constantly evolving. Many founders can benefit from diversifying their capital resources. That’s why I’m excited to share that Riverside Ventures is now offering debt capital alongside venture capital via our partnership w/portfolio company, Efficient Capital Labs. Flexible debt capital gives founders the chance to rapidly seize opportunities, with the liquidity to pivot, innovate and grow without the constraints of a typical funding cycle - including long raise timelines and dilution before hitting milestones. Our new financing option - delivered in partnership with Efficient Capital Labs - enables startups to access up to $2M of just-in-time, flexible, and non-dilutive capital to supercharge their growth. Learn more here: https://lnkd.in/eQb-aBhp cc: Kaustav Das, Blair Seiler, Vishak Gopalan, Manish Arora

➡ Cap Tables! ⬅ Founders, to understand the dilutionary impact of raising capital on your shareholding, it is important you understand your Cap Table. I would start with these three things: ➡ Before you issue shares to investors – As I have mentioned previously, these days we rarely see a priced round (i.e. the issue of shares at a valuation) for pre-seed funding. This is almost always now undertaken via a SAFE (Simple Agreement for Future Equity). Founders should maintain an "in-house" Cap Table to track potential dilution from SAFEs. Do this before you agree to the SAFE. You will need to know if the SAFE will be pre-money or post-money and you should include in this Cap Table the key terms you will be seeking for your first priced round (i.e. target pre-money valuation and the amount you will raise). This should give you a reasonable guide to your dilution from the first priced round. ➡ When negotiating the Term Sheet with a VC – Moving to the Seed/Series A (i.e. your first priced round). Because you have maintained throughout your helpful "in-house" Cap Table, you should have a good idea of the dilution you are prepared to suffer from this capital raise. But what about ESOP? A key decision will be whether your ESOP is pre-money or post-money. In case of pre-money, the ESOP is created (or increased) before the new investors come in, based on the company’s pre-money valuation. This means the dilution is absorbed only by the Founders/existing shareholders. If the ESOP is post-money, the ESOP is created/expanded after the new investment, based on the company’s post-money valuation. This sees the dilutionary impacts from the ESOP shared between both the Founders/existing shareholders and new investors. ➡ Bridging with a Convertible Note – My post last week was about the large number of bridging rounds we are seeing in 2024 (see here: https://lnkd.in/gQ2VRqkR). Founders need to keep laser-focused on the Cap Table through this period. Convertible Notes in a bridging round often have a discount attached to them (i.e. they convert at the next capital raise at a discount to the issue price for that raise). This can create unhelpful dilution for Founders, particularly if Founders are unable to negotiate the pre-money valuation they were hoping for in the upcoming capital raise. Final thoughts – keep your Cap Table updated – get comfortable with your dilution – avoid a nasty surprise after completing a capital raise! #Founders #NZTech #Tech #Startups #VentureCapital #Entrepreneur

Thinking of raising a SEED ROUND? Here’s a quick guide to get you started: These are essential tips to help you prepare, execute, and attract investor interest. 1. Set Your Funding Target -Aim for 24-36 months of runway, with a 25% safety net. -This timeline allows you to work toward product-market fit and prepare for your Series A without scrambling for cash. -Unexpected challenges will arise, and this buffer gives you the flexibility to adapt. 2. Show You’re Ready for Investors Before approaching investors, you need to demonstrate three things: - Commitment: -You’re fully in—having left prior commitments to focus on building this venture. - Market Understanding: -Conduct enough customer research to validate demand. -Strong feedback from early discussions or a prototype can give investors confidence that you’re solving a real pain point. - Clear Vision: -Even if it’s just a simple product or deck, you should have a solid concept of what you’re building and why it matters. -Investors need to see that you’re positioned to address the market. 3. Increase Your Success Odds -To attract investor attention, create urgency and momentum. Here’s how: ▪️Time Your Outreach Strategically: -Schedule investor meetings in a short window. -A concentrated timeline creates scarcity, which can increase interest. ▪️Research Investors: -Know each investor’s background, preferred deal size, and portfolio interests. -Reaching out with a tailored approach can be far more effective. ▪️Prepare a Strong Pitch Deck: -Craft a concise deck that covers the market opportunity, your solution, and why you’re the right team to tackle this challenge. ▪️Leverage Your Network: -Warm introductions from credible connections...like other founders or influential investors...carry weight. ▪️Practice Your Pitch: -Rehearse with less-critical investors first, improving as you go. -Make sure you can answer questions confidently and directly. ▪️Build Social Proof: -Starting with smaller checks from angel investors or advisors can help you gain traction and credibility. ▪️Follow Up Strategically: -Share key updates, but avoid appearing overly eager. -Patience shows confidence. ▪️Keep Other Investors Confidential: -Sharing less creates an air of exclusivity. -Highlight demand without listing names. ▪️Get Agreements in Writing: -Only a formal term sheet represents a commitment, so avoid banking on verbal agreements. ▪️Close Promptly: -Set deadlines to keep the momentum going and finalize the round as soon as possible. Any other tactic you want to add? Source Lenny' newsletter #startups #pitchdeck #funding