Verb Ventures’ Post

Ever wondered how VC investors figure out who gets paid and how much when a startup hits it big? Dive into Verb Ventures' latest VC Blueprint on the Waterfall Model to get the scoop — and check out our model template inside!🌊 From senior VCs to the folks in the trenches, find out how money flows when an exit goes down. Whether you're dabbling in investments or running your startup, this breakdown is a must-read to keep your finance game strong!💸 https://lnkd.in/e-UaBVHY

The Math of an Early Stage VC https://buff.ly/48Ka3RE Explore the intricacies of early-stage venture capital with insights from "The Math of an Early Stage VC." This resource delves into the financial fundamentals and analytical strategies that investors use to evaluate promising startups. Understanding these principles can be pivotal for both entrepreneurs seeking funding and investors aiming to make informed decisions. Discover how factors like market size, growth potential, and risk assessment play crucial roles in investment decisions. For more detailed information, check out the full article at the provided link. #VentureCapital #StartupFunding

Ever wondered what makes a VC tick? Spoiler: it’s not just about graphs and buzzwords. In this talk, Daniele Viappiani, VC Investor at GC1 Ventures, explores the complex world of venture capital, where art meets science and metrics don’t always mean what they seem. Here’s what you’ll discover: • Why “1 million ARR” isn’t the magical key you think it is. • The real story behind VC fund returns (hint: the S&P 500 often does better). • The truth about TVPI, J-curves, and startup valuations—it’s more smoke and mirrors than you might expect. • How the team beats the idea and can make or break pre-seed investments. • Why VC managers are much like chefs—everyone uses the same tools but cooks up very different results. ⃕↴ Video in the comments!

Today we released our newest edition of our biannual report, the Aumni Venture Beacon. In this report we share what is going on in the startup and VC market in detail, leveraging the deepest dataset on venture deals out there. Convertibles, financings, secondaries: we cover it all. Check it out: https://lnkd.in/e3dpAr73

Fundraising Fundamentals: Key Insights for Startups Navigating the venture capital (VC) landscape can be complex, but understanding the process can increase your chances of success. Here are key takeaways from the document: 1) Timing Matters: Ask for investment as late as possible but strategically. Show traction or a minimum viable product (MVP) to strengthen your case. 2) Capital Sources: Leverage different funding sources at each stage—beginning with friends, family, and founders (FFFF), then moving to business angels, seed funds, and VCs. 3) Know Your VC Partner: VCs often expect 3x Cash on Cash (CoC) returns. Knowing your investor’s goals and portfolio expectations can give you an advantage in negotiations. 4) Valuations: Valuation is driven by market potential, financial indicators, and competitor benchmarking. The more you know about your metrics, the better. 5) Preparation is Key: Have a solid business plan, financial model, and investor presentation ready. Don’t forget additional documents like team CVs and legal papers. PS. check out 🔔 for a winning pitch deck the template created by Silicon Valley legend, Peter Thiel https://lnkd.in/ejp-Bhnu

The Impact of VC Pullbacks in Venture Growth Stages.

Very proud to announce emma Ventures’ first Direct Venture Secondaries deal! 🚀   Great to combine our vast experience in the Secondaries space with our activity in Venture Capital and to create a win-win situation for the company, the seller and emma Ventures as the buyer! 🤝   Venture Secondaries are on the rise – at a time when companies are staying private for longer, investors increasingly embrace the Secondaries markets as a practical third option to liquidity where they are able to control the timing of their exit, unlike in a traditional IPO or M&A. ↗️   By purchasing from early shareholders seeking liquidity, Secondaries buyers can acquire stakes in potentially high-growth companies at reduced risk and an attractive pricing - thereby supporting the company as long-term partner in the next phase of growth. ⚙️

Navigating the venture capital investment landscape can be a lengthy process, with the average time from initial funding to exit increasing by 2.5x since the early 2000s. Given the subdued exit landscape and the market's demand for a greater variety of liquidity opportunities, both investors and founders are turning to secondary transactions to achieve liquidity before a sale or IPO. In the 19th instalment of Orrick's Founder Series, Jamie Moore and Kristy Hart offer top tips to help UK startups navigate the increasingly popular world of secondary transactions.   https://lnkd.in/eEPpRu9D #VentureCapital #SecondaryTransactions

In the venture capital world, quality trumps over quantity every time. Just like investors seek quality investments and visionary leaders with scalable business models, founders should also consider quality when selecting their VC partners. Landing a potential partner isn't just about closing the $$ —it's about finding the right fit for your business and its future. Instead of seeing how many doors you can knock on, focus on cultivating meaningful relationships with select VCs who are aligned with your vision for the future. Conduct thorough reference checks on these VCs with other founders as establishing trust between your team and theirs is imperative to a successful partnership. When looking for a quality VC for your startup’s next round, founders should consider ✔️What additional value can the VC provide other than capital? ✔️Do they have the same passion for the space you're in?  ✔️Are they going to be in the trenches with you not just when everything is going well but during the inevitable troughs of company building?    As you navigate the complexities of securing your next investment, take the time to find the investment team whose values and passion align deeper than surface level.

At a time when VCs are making fewer, larger investments, Charles Hudson built Precursor Ventures differently: 400+ investments, $175M+ AUM, a 13-person team, 1 GP, and a systematic approach to finding non-obvious founders. The strategy has produced notable exits including The Athletic's $550M acquisition by the New York Times. In this conversation, we cover: - Why multi-stage firms' move into seed is permanent this time—and what it means for founders and GPs - Building a systematic approach to founder evaluation after 400+ investments - How Precursor built a different kind of venture firm with a team of 13 Key insights: 1) Previous startup success matters less than startup experience. Being successful at Meta/Google often doesn't translate to zero-to-one success because the skills that drive promotion (stakeholder management, managing up) aren't relevant. What matters is experiencing the sub-25 person phase of a startup. 2) Hot companies in year 1 often provide false signals. In every Precursor fund, the hottest company in year 1 has never been one that mattered. In half the cases, they went to zero. Usually something feels off - either CEO behavior, data quality, or the explanation for why it's working so well. 3) The typical founder profile is different than you'd expect: ~2/3 are first-time founders with a decade of work experience. Most have never been in C-suite, usually strong ICs or first-time managers. 4) You can't learn urgency. Problem-solving and driving pace are harder to teach than fundraising. Look for founders who can diagnose problems quickly and get talented people to join when it's irrational to do so. 5) Their founder evaluation framework scores on problem-solving ability, leadership potential, recruiting ability, and fundraising capability on a 1-5 scale. It's supplemented by a self-assessment tool looking at stress response and personality type. 6) On team building: Precursor has a 5-person productivity team supporting Charles (40% of firm), enabling deep focus. They handle everything from email/calendar to preparing materials for all meetings. 7) To develop investment talent, give them real money. Precursor gives team members $500K with full autonomy to make ten $50K investments. Within 18 months you learn what they think "good" looks like and what they can win. 8) Work/life balance framework: You can only do three things well between being a partner, parent, running your business, maintaining friendships, and pursuing interests. Choose your three intentionally. Full episode on Spotify, Apple and YouTube (links in comments). #venturecapital #startups #investing #entrepreneurship