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"Know Where You Are Excellent and Tell Your Story Correctly!" - Omri Amirav-Drory (NFX) 🚀 The Science of #VentureCapital: Insights from Industry Experts: Venture Capital is highly competitive so grasping the intricacies of investment decisions is pivotal for #entrepreneurs seeking funding. This article draws on the expertise of seasoned investors like Omri Drory, Ph.D., to unveil the nuances of venture capital operations, decision-making processes, and effective strategies for #startups aiming to stand out. 🔍 Venture Capital Decision Dynamics: Venture capital (#VC) operates on a principle of seeking outsized returns through high-risk investments. VCs evaluate potential #investments based on their ability to deliver substantial returns, focusing on startups with the promise of becoming market dominators. Drory emphasizes the importance of startups demonstrating #scalability, #innovation, and a potential to significantly impact their target market. To secure VC interest, startups need to present a compelling case for their potential scalability, unique #valueproposition, and an exceptional founding team. These factors are crucial in convincing VCs of a startup's ability to offer not just a return on investment but to potentially return the entire fund. 🚀 Key Factors for #StartupEvaluation: Market Potential: Highlighting the scalability of your #startup is critical. VCs are on the lookout for businesses targeting large markets with rapid growth potential, ensuring the possibility of substantial returns. #Innovation and #Differentiation: Startups must showcase their "defensible magic"—unique, #innovativesolutions that set them apart and can be safeguarded against competition. Founding Team Excellence: The prowess and vision of the founding team often sway VC decisions. A team with a solid track record, deep industry knowledge, and a compelling vision is more likely to attract investment. 💡 Mastering the #VCLandscape: To catch the attention of VCs, startups must craft a narrative that underscores their growth potential, innovative edge, and team strength. This requires understanding the VC mindset, including the economic and strategic principles guiding their investments. #Entrepreneurs must navigate the #startupecosystem's "noise," positioning their ventures as irresistible opportunities for VCs. Leveraging unique insights or technologies to demonstrate market leadership potential is key. Founders equipped with a deep understanding of venture capital mechanics and an ability to compellingly convey their startup's value are better positioned to secure the crucial funding needed for growth. #VentureCapital #StartupFunding #Entrepreneurship #Innovation #BusinessStrategy https://lnkd.in/eRKxCTNN

𝐖𝐡𝐞𝐧 𝐜𝐨𝐧𝐯𝐞𝐧𝐭𝐢𝐨𝐧𝐚𝐥 𝐰𝐢𝐬𝐝𝐨𝐦 𝐜𝐚𝐧 𝐛𝐞 𝐰𝐫𝐨𝐧𝐠 in maritime disruption: ⭕ For mistaking venture capital (VC) as just another type of investment capital. ⭕ This is a misunderstanding that often leads to arguments. ✴️ The fact is that venture capital is unique from other forms of investment capitals like private equity, hedge funds, mutual funds, which typically invest in more mature and profitable companies with different risk profiles, through various financial instruments, and strategies. ✴️ Here are some key & broad differences: 1) 𝐒𝐭𝐚𝐠𝐞 𝐨𝐟 𝐈𝐧𝐯𝐞𝐬𝐭𝐦𝐞𝐧𝐭: 💥 VC focuses on early-stage startups that are in their seed, early or growth stages. These companies often have potential for exponential growth, but naturally also come with higher risk. At these stages, most are not profitable, which may have led some to view VC as ‘stupid’ capital. 2) 𝐑𝐢𝐬𝐤 & 𝐑𝐞𝐰𝐚𝐫𝐝 𝐏𝐫𝐨𝐟𝐢𝐥𝐞 💥 Knowing that many startups fail, but the few successful investments can yield substantial returns, VC is an asset-class that involves high risk for the disproportionately high returns. Rebel Fund's Jared Heyman wrote on Medium on 2 July 2023: “…. if you had invested in every Y Combinator startup at Demo Day since the accelerator’s founding in 2005, you would have made a whopping 176% average annual return net of dilution….” 3) 𝐈𝐧𝐯𝐞𝐬𝐭𝐦𝐞𝐧𝐭 𝐇𝐨𝐫𝐢𝐳𝐨𝐧 💥 Despite a general perception of being impatient, VC has a relatively longer investment horizon, usually 7 to 10 years, as it takes time for startups to grow and reach a liquidating event (e.g., IPO or acquisition). These investors are rewarded for their patience to reap the most from the startups that achieve exponential growth. 4) 𝐋𝐞𝐯𝐞𝐥 𝐨𝐟 𝐈𝐧𝐯𝐨𝐥𝐯𝐞𝐦𝐞𝐧𝐭 💥 Unlike other funds, VC often is involved in the startup’s business development and takes an active role, if not in the management, at least in the strategic direction of the portfolio companies. VC may also provide mentorship, industry connections, and operational support to help improve the startup’s chances of success. As many startups fail, you can also deduce that the pressure on the VC is extremely high. That’s why a VC needs to differentiate and find its own niche and a model that helps it succeed. What's your experience and what d’ya think? Find this helpful? [ 𝗿𝗲𝗽𝗼𝘀𝘁 ] Something to add on this subject? [ 𝐂𝗼𝗺𝗺𝗲𝗻𝘁 ] Nice post. Next! [ 𝗹𝗶𝗸𝗲 ]

Excited to share that Part 4 of our "What in the VC" series is now live! 🚀 🔍 Mastering Deal Sourcing and Evaluation 🔍 Are you ready to identify the next big startup? Dive into this essential guide to discover: 🔗 Key strategies for building a strong deal flow 🔍 Effective techniques for rigorous startup evaluation 📊 Balancing the art and science of venture capital Whether you're a seasoned investor or just starting out, this installment is packed with insights to sharpen your VC skills. Don't miss out! 🔗 https://lnkd.in/ewJt8EqA ✨ "Opportunities don’t happen. You create them." – Chris Grosser ✨ Let's create opportunities together. Tag a friend or colleague who’s passionate about venture capital! #VentureCapital #StartupFunding #InvestmentStrategy #WhatInTheVC #Innovation #Entrepreneurship

6 different types of VC Credits to Ivelina Dineva, follow her and GoingVC for more interesting post. Here's the original post: Recently wrote a piece on the 6 different types of VC firms and how each one works: 🟣 1. Micro VC ➙Overview: Focus on very early-stage startups with smaller funds ($10M to $100M). ➙Investment Stage: Seed or pre-seed stage ➙Focus: Technology startups, innovative business models, high-growth potential ➙Support: Hands-on mentorship, operational assistance, and strategic guidance ➙Examples: First Round Capital, Uncork Capital, Initialized Capital, 500 Startups, Haystack 🟣 2. Institutional VC ➙Overview: Traditional VC firms managing large funds (>$100M) across various stages and industries. ➙Investment Stage: Series A, Series B, and beyond ➙Focus: Established startups with proven business models and significant growth potential ➙Support: Strategic advice, industry connections, operational improvements, follow-on funding ➙Examples: Sequoia Capital, Andreessen Horowitz, Benchmark Capital, Accel Partners, Greylock Partners 🟣 3. Corporate VC ➙Overview: Investment arms of large corporations aiming for strategic alignment. ➙Investment Stage: All stages, depending on strategic fit ➙Focus: Startups aligning with corporate strategic goals and innovation areas ➙Support: Access to corporate resources, R&D facilities, market channels, potential acquisition opportunities ➙Examples: Google Ventures (GV), Intel Capital, Salesforce Ventures, Microsoft Ventures, Samsung NEXT 🟣 4. Government VC ➙Overview: Funds managed or backed by government entities to stimulate economic growth. ➙Investment Stage: All stages, with a focus on strategic industries ➙Focus: Startups contributing to economic development goals ➙Support: Financial support, regulatory guidance, networking opportunities, subsidies, tax incentives ➙Examples: In-Q-Tel (USA), British Business Bank (UK), Bpifrance (France), Singapore Economic Development Board (EDB) Investments (Singapore), KfW Capital (Germany) 🟣 5. Family Office ➙Overview: Private wealth management firms for high-net-worth families investing in startups. ➙Investment Stage: All stages, depending on family investment strategy ➙Focus: Diverse industries, often aligned with family interests or values ➙Support: Patient capital, mentoring, access to family’s network and resources ➙Examples: Grove Street Advisors, Ludlow Ventures, Lerer Hippeau, March Capital Partners, Soros Fund Management 🟣 6. Angel Syndicate Overview: Groups of individual angel investors pooling resources for early-stage investments. Investment Stage: Seed stage and early-stage Focus: High-growth potential startups, often in technology and innovation sectors Support: Mentorship, industry expertise, connections from experienced entrepreneurs and investors Examples: Tech Coast Angels, Band of Angels, AngelList Syndicates, Golden Seeds #Startup #innovation #entrepreneurship #networking #venturecapital

🌟 1000+ VC Funds between $250 million to $500 million Fundsize around the World 🌟 It includes: 1. VC Fund Name 2. Company URL 3. Email Address 4. Corporate Address 5. Description 6. Number of investments 7. Investor Type- Venture Capital, Private Equity etc. 8. Investment Stage- Early stage, Growth Stage 9. Number of Exits 🎯 Point to note: - Let’s assume you are reaching a $250 million VC Fund - The primary objective of the Fund for their each investment should be to generate a minimum of 1x the total fund size, which translates to $250 million. - And that’s why A Founder should focus on returning at least 30%- 100% of $250 million which is $80 million to $250 million to the VC Fund 🎯 Moreover I have seen that many top-tier VC Firms write very small check sizes compared to their fund size. This is often referred to as “Scouting Checks”. The main purpose is to monitor the startup for the Series A investment. There are some advantages: - If a top VC firm like Sequoia, a16z, or Bessemer Venture Partners (BVP) suddenly decides to put money into the startup, it signals to the larger industry that the startup is worth watching. - It can be a huge boon for the startup, as it imparts a measure of their esteemed reputation onto the emerging venture. - The VCs who are indecisive will make up their mind faster and those who passed on the start-up earlier will reconsider their initial decision. 📊 To get the list please complete both Step 1 and Step 2 Step 1: Please Like and Comment on the post below. Step 2: Drop me a DM/Inmail saying "VC Funds" and I'll share this with you. ~~~~~ ♻️ Found this helpful? Repost it so your network can learn from it, too. And follow me, Fazlur Shah for more content like this. #startups #entrepreneurship #venturecapital #investing

In this conversation, David Peterson shares insights on his journey to becoming a venture capitalist and the differences between the VC and founder roles. He discusses the importance of helping founders navigate problems and the limited scope of assistance VCs can provide. David also emphasizes the need for founders to approach their startups as experiments and highlights the significance of distribution innovation. He shares his experiences at Airtable and the challenges of building a go-to-market strategy for a horizontal product. Additionally, David explores the collaborative nature of the VC ecosystem and the pressure to chase deals. He concludes by discussing the value of brand names in the VC industry. In this conversation, David shares insights on the importance of meaningful investment, the relationship between fund size and investment strategy, the overrated investment thesis, starting a small VC fund, the need for pre-seed and seed funds, cap table red flags, key slides in a pitch deck, and the impact of AI on the VC ecosystem. Takeaways Approach startups as experiments and focus on testing hypotheses for creating outsized value. Distribution innovation is crucial for startups, and founders should consider it from the beginning. Collaboration in the VC ecosystem depends on the business model and the stage of investment. Building a go-to-market strategy requires understanding the product-market fit and the right distribution channels. The value of a VC firm lies in its ability to increase the likelihood of raising the next round of funding. Meaningful investment from a VC firm involves more than just a financial contribution; it requires a partner who is aligned with the founder's vision and actively supports the growth of the business. Fund size is an important factor in determining a VC firm's investment strategy and the level of commitment they can provide to portfolio companies. Investment theses can be overrated as they often reflect the VC's attempt to sell their expertise and intelligence to LPs, rather than a true understanding of the future. Starting a small VC fund requires building a track record, proving differentiated access or picking ability, and gradually scaling up while maintaining alignment with the fund's strategy. Pre-seed and seed funds play a crucial role in the startup ecosystem by providing early-stage capital and support to founders who may struggle to raise money from larger funds. Cap table red flags include founders not owning enough of the business, dead weight on the cap table, and investors who are tapped out and unable to provide further support. Key slides in a pitch deck include those that clearly articulate the problem the business is solving and the founder's vision for the future. Airtable Angular Ventures #vc #businessgrowth #startups #startupgrowth #founders

Venture Capital: The Best Asset Class in the World? Fernando Saiz boldly states, "VC is the Best Asset Class in the World." As someone deeply interested in the dynamics of venture capital, this statement resonates with me. Here's why: 🌟 Advantages of Venture Capital: 1. High Returns Potential: Investing in the next big thing can yield substantial returns. Early investments in companies like top tech companies have made many venture capitalists very successful. 2. Supporting Innovation: VC funds are the backbone of innovation, fueling startups that push the boundaries of technology and business. 3. Active Involvement: Beyond capital, VCs offer mentorship, strategic guidance, and industry connections, increasing a startup’s chance of success. 4. Diversification: By investing in a range of startups, VCs can spread their risk. The success of a few can more than compensate for the failures of many. ⚠️ But Let’s Not Ignore the Risks: 1. High Risk: Many startups fail, leading to significant losses. VC is not for the faint-hearted. 2. Long Investment Horizon: Patience is key. It can take years before a startup provides a return on investment, making VC relatively illiquid. 3. Economic Sensitivity: Economic downturns can affect funding rounds and exit opportunities, adding another layer of risk. 🏆 Comparing to Other Asset Classes: - Stocks and Bonds: Generally less risky and more liquid, but with lower potential returns compared to successful VC investments. - Real Estate: Provides stable income and capital appreciation but doesn’t quite match the explosive potential of VC. 📈 Conclusion: Fernando Saiz’s assertion underscores the high potential of VC, especially in driving innovation and achieving substantial returns. For those with a high risk tolerance and a passion for pioneering new frontiers, venture capital is indeed compelling. For others, a balanced portfolio might be more suitable. What are your thoughts on VC as an asset class? Let’s discuss! Ola Brown, MFR Suraj Oyewale, FCA Kalu Aja Yinka Adetuberu Usman YEKINI Philip Bakare - ACA #VentureCapital #Investment #Startups #Innovation #AssetManagement #Finance

Are VCs Missing Out on High Returns by Favoring Serial Founders? What's your take on trading volatility in venture capital? Let’s discuss! 🚀 Guest author Dan Gray underlines a crucial turning point in Venture Capital (VC)—trading on volatility. He perceives a pattern where VCs favor serial founders to lower failure rates. However, he questions if this strategy limits high potential return opportunities? Are VCs shooting themselves in the foot by excessively pattern matching with serial founders? Are we overlooking the fact that while new, inexperienced founders might lack the savoir-faire and track record of seasoned ones, they also bring fresh perspectives and drive transformative disruptions with their unorthodox approaches and untested ideas? It's time to Ignite Corporate Innovation! 🚀 At [Your Company], we provide AI solutions and automation to propel your growth trajectory skywards. Our crowd includes 160K+ corporate decision-makers, investors, innovative startup pioneers—all striving for operational enhancement and new revenue streams through the power of collaboration. Transform your innovation strategies into lucrative ventures. Book a meeting today to take the first step towards efficiently navigating this dynamic landscape: https://lnkd.in/gH39iDY3 Here’s some extra food for thought: https://lnkd.in/dvA5ZsDX #VentureCapital #SerialFounders #StartupInnovation #CorporateGrowth #AI Solutions #AutomationTechnology #InvestmentStrategy #ReturnPotential #RevenueStreams #OperationalEfficiency

Are VCs Missing Out on High Returns by Favoring Serial Founders? What's your take on trading volatility in venture capital? Let’s discuss! 🚀 Guest author Dan Gray underlines a crucial turning point in Venture Capital (VC)—trading on volatility. He perceives a pattern where VCs favor serial founders to lower failure rates. However, he questions if this strategy limits high potential return opportunities? Are VCs shooting themselves in the foot by excessively pattern matching with serial founders? Are we overlooking the fact that while new, inexperienced founders might lack the savoir-faire and track record of seasoned ones, they also bring fresh perspectives and drive transformative disruptions with their unorthodox approaches and untested ideas? It's time to Ignite Corporate Innovation! 🚀 At [Your Company], we provide AI solutions and automation to propel your growth trajectory skywards. Our crowd includes 160K+ corporate decision-makers, investors, innovative startup pioneers—all striving for operational enhancement and new revenue streams through the power of collaboration. Transform your innovation strategies into lucrative ventures. Book a meeting today to take the first step towards efficiently navigating this dynamic landscape: https://lnkd.in/gH39iDY3 Here’s some extra food for thought: https://lnkd.in/dvA5ZsDX #VentureCapital #SerialFounders #StartupInnovation #CorporateGrowth #AI Solutions #AutomationTechnology #InvestmentStrategy #ReturnPotential #RevenueStreams #OperationalEfficiency

Are VCs Missing Out on High Returns by Favoring Serial Founders? What's your take on trading volatility in venture capital? Let’s discuss! 🚀 Guest author Dan Gray underlines a crucial turning point in Venture Capital (VC)—trading on volatility. He perceives a pattern where VCs favor serial founders to lower failure rates. However, he questions if this strategy limits high potential return opportunities? Are VCs shooting themselves in the foot by excessively pattern matching with serial founders? Are we overlooking the fact that while new, inexperienced founders might lack the savoir-faire and track record of seasoned ones, they also bring fresh perspectives and drive transformative disruptions with their unorthodox approaches and untested ideas? It's time to Ignite Corporate Innovation! 🚀 At [Your Company], we provide AI solutions and automation to propel your growth trajectory skywards. Our crowd includes 160K+ corporate decision-makers, investors, innovative startup pioneers—all striving for operational enhancement and new revenue streams through the power of collaboration. Transform your innovation strategies into lucrative ventures. Book a meeting today to take the first step towards efficiently navigating this dynamic landscape: https://lnkd.in/gH39iDY3 Here’s some extra food for thought: https://lnkd.in/dvA5ZsDX #VentureCapital #SerialFounders #StartupInnovation #CorporateGrowth #AI Solutions #AutomationTechnology #InvestmentStrategy #ReturnPotential #RevenueStreams #OperationalEfficiency