That Was The Week, #28

Gelt, How to make money?

IPO, SPAC, Traction, Story?

This week, ‘That Was The Week‘ leads with Ned Desmond leaving TechCrunch after eight years as the boss. On the surface perhaps not the biggest story, but Ned has been the hidden hand of logic and execution at TechCrunch for the past 8 years, in the same way Heather Harde was in the period before. Having been acquired by AOL, then Verizon, the odds on Techcrunch surviving, never mind prospering, seemed low back in 2012 following the sacking of Mike Arrington by Arianne Huffington. But under Ned’s stewardship it has retained and grown its brand, expanded itself globally, grown readers to 20 million a month whilst scaling revenue. The foundation built by Mike Arrington clearly created a surviving brand and impact. Ned cultivated, protected and grew it. He will be missed.

The big reads of this week include a lot on the controversy around how to make money. Filthy lucre has never been a Silicon valley obsession – at least not explicitly. but now Bill Gurley of Benchmark fame has been leading the charge accusing bankers of stealing money from companies by under-pricing IPOs. The response is to suggest direct listings, not using Bankers. Or SPACs (Special Purpose Acquisition Companies). Lots to read and digest as the future is architected through these conversations.

Leaderboard of US Micro VCs

See below for a ranked leaderboard of US Micro VC’s.

You can organize it by City, or just see the ranked list. I began working on this idea as far back as 2014. It is based on 10 years of funding data (probably incomplete) and only looks at funding into companies that reached a valuation of $500m or more.

The complete data set includes ranking for all finds globally, no matter the size. But this table is cross references with Samir Kaji’s list of Micro VCs in the USA, and so is only ranking funds that appear on his list.

The criteria for scoring is my algorithm, but it is based on a look-back through the data to score Micro VCs that successfully invested early into companies that went on to be highly valued. So it biases to stage of entry, and outcome. The earlier the better into winners.

Subscribers can get access to the entire data set (10 years worth of funding events with associated scoring). Plus additional Data Sets like a leaderboard of Angel Investors (global, ranked)

It is free to subscribe.

Credit: Crunchbase data used to provide underlying funding data enabling us to score the funds

Best of the Week in Venture Capital, Angel Investing and Startups

Venture Trends Newsletter, Issue #13

I read daily and this newsletter gathers together this week’s most interesting content I saw related to the venture capital and startup ecosystem. I hope you find it useful as well as being a time saver. You can check out more about me at https://archimedes.studio

In this week’s free issue there are some amazing things to highlight.

  • First Round Capital – A Founder’s Field Guide
  • WordPress Founder on the 5 Stages of Autonomy in Distributed Working
  • Chamath Palihapitiya, Robin Klein and Fred Destin on Startups and Bailouts
  • Mark Suster and Harry Stebbings – Are VCs Open for Business?
  • Semil Shah, The Information and the Harvard Business Review on Venture Capital in a Pandemic

I email the newsletter each weekend. There is little or no commentary included, it is the things I found compelling or interesting.

This is the free version, and I also have a supplemental paid version that includes access to content for full subscribers only. If you are not a full subscriber and you want to be then please open the weekly supplement and choose a monthly or annual plan.

This week’s paid version is here – Venture Trends for Paid Subscribers. You will be prompted to Subscribe, please consider doing so.

Stories in the paid version this week:

  • The Gillmor Gang Podcast on TechCrunch with Steve Gillmor, Frank Radice, Michael Markman, Dennis Pombriant and Keith Teare
  • Long Read – The Shifting Economics of Distance
  • Saastr on the Funding Environment
  • China’s most prolific Venture Fund

The Founder’s Field Guide for Navigating This Crisis — Advice from Recession-Era Leaders, Investors and CEOs Currently at the Helm

First Round

It rounds up all of the recommended reads we share below, as well as our brand-new scenario planning template and list of curated job resources (both for candidates who are actively looking and companies that are still hiring).But by sharing initial thinking, talking about the challenges everyone is facing and harnessing the helpful advice floating around in private channels, we hope to help you shape — and relentlessly refine — your response as the situation on the ground continues to change quickly.

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Distributed Work’s Five Levels of Autonomy

Matt Mullenweg

As I mentioned to Sam on the podcast, “any company that can enable their people to be fully effective in a distributed fashion, can and should do it far beyond after this current crisis has passed.”You’re probably able to access information from afar, you’ve adapted to tools like Zoom or Microsoft Teams, but everything is still synchronous, your day is full of interruptions, no real-time meetings have been canceled (yet), and there’s a lot of anxiety in management around productivity — that’s the stage where companies sometimes install surveillance software on laptops.

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Chamath Palihapitiya Blasts Fed for Bailing Out Billionaires and CEOs Amid Pandemic

Observer

But as billionaire venture capitalist Chamath Palihapitiya sees it, the central bank might as well has given money directly to American people, instead of their employers, since the beginning of this crisis.The business pillar of the new stimulus plan includes details of the Fed’s Main Street Lending Program, targeting small to mid-size businesses, and market intervention measures, including plans to buy corporate bonds regardless of their investment grades.

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Chamath Palihapitiya Tells CNBC Billionaires Deserve No Bailout

Mediaite

Former Facebook exec Chamath Palihapitiya dumbfounded a CNBC anchor on Thursday when he argued that billionaires, hedge funds, and mismanaged corporations, like airline companies, don’t deserve any federal bailout or stimulus money.“I don’t understand why does anybody deserve to get wiped out from a crisis created like this?”

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Virgin Galactic chairman: Fed should give $500,000 to all Americans

Decrypt

Earlier on the same day, the Fed announced it plans to spend $2.3 trillion on various programs to help support the economy during the coronavirus outbreak.Chamath Palihapitiya, the CEO of investment firm Social Capital and chairman of spaceflight company Virgin Galactic, has argued that the US government and the Federal Reserve should not bail out hedge funds and billionaires during the coronavirus crisis.

READ MOREFred Destin @fdestin1/ So I find myself *violently* agreeing with @chamath. Let companies go bust. Let them go through the bankruptcy process and fly with clean balance sheets. Protect the individuals, not the stock or debt holders. Andrew Lawrence @ndrew_lawrenceI have watched the first 12 seconds of this at least 100 times, its better than porn https://t.co/j5SeLyeMyyApril 10th 202048 Retweets293 Likes

Don’t bail out the startups, says LocalGlobe’s Robin Klein

Sifted

By rapidly reviewing the funds which BBB has already backed, further capital could be committed which would deliver targeted co-investment funds for startups. The other LPs of these funds could be offered similar opportunities.

READ MOREVijay Boyapati @real_vijayCapitalism is a profit *and* a loss system. Losses are just as important to the functioning of a capitalist society as profits as they help weed out companies that are poorly run or are no longer meeting consumer demands. Bail out the failures and you’ve destroyed capitalism. April 10th 2020263 Retweets949 LikesMark Suster @msusterMight be a fun headline but hardly true. We’ve already signed a new term sheet (never met in person) & potentially two more in process. 2 huge follow-on financings. OPEN, we are … https://t.co/FQdgIeTWUATechCrunch @TechCrunchIt’s “bullshit” that VCs are open for business right now (but that could change in a month) https://t.co/TsygtkDeF5 by @cookie https://t.co/4FcTdxiz1AApril 10th 202017 Retweets141 Likes

20VC: Are VCs Still “Open For Business”, How VCs Attitude To Risk Has Changed & The 2 Most Valuable Assets To Founders Today with Fred Destin, Founding Partner @ Stride VC

The Twenty Minute VC: Venture Capital | Startup Funding | The Pitch

Prior to co-founding Stride, Fred was a General Partner @ Accel where he was the lead investor and board member at Deliveroo, Pillpack (acq.1.) How did Fred make his way into the world of venture and come to co-found one of Europe’s newest and largest seed funds in Stride.VC?

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A Venture Capitalist Shares 6 Ways Startups Can Prepare for the Unexpected – Entrepreneur

Entrepreneur

Adapting to the new conditions will help you survive this crisis and build foundations that can ensure the long-term success of your business.CabinetM has assembled an interactive Social Distancing Technology Stack that is a comprehensive list of tools that can support companies with employees working from home.

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Index Ventures Racks Up $2B In Fresh Funds, Appoints Nina Achadjian As New Partner – Crunchbase News

Crunchbase News

Index Ventures, the venture capital firm with dual headquarters in London and San Francisco, today announced the closing of $2 billion in new funds. The funds are dubbed ‘Index Ventures 10’ and ‘Index Growth 5’, totaling $800 million and $1.2 billion in size, respectively. 

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VCs Could Exhaust ‘Dry Powder’ in a Year Unless They Slow Investing

The Information

Venture capital investors are flush with cash, but they may want to slow down their spending. U.S. venture firms have roughly $150 billion of funds available to invest in cash-starved startups, a little more than half of the $279 billion they have raised since 2014. 

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China venture capital deal-making shows green shoots of recovery as funds hunt for bargains among coronavirus hit start-ups – Yahoo Finance

Yahoo Finance

Nisa Leung, managing partner of venture capital firm Qiming, has just finished quarantining herself after travelling back to Hong Kong from the US after putting the finishing touches to a new US$1.1 billion fund to invest in Chinese start-ups.”Companies should expect more reasonable pricing and that raising capital will take them longer,” said Tony Zhang, a partner at China tech-focused investor Jeneration Capital that already has deals in an advanced state of preparation.

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Venture Capital During a Pandemic – Harvard Business Review

Harvard Business Review

Listen and subscribe to this podcast via Apple Podcasts | Google Podcasts | RSS Beth Ferreira, a partner at FirstMark Capital, has lived and worked through the Dotcom crash of 2000, the 9/11 terror attacks, and the financial crisis of 2008. 

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Silicon Valley Bank Struggles as Startups Rush for Government Loans

The Information

As the first set of entrepreneurs learned they would receive emergency loans administered through the federal Small Business Administration, many of those who had applied through Silicon Valley Bank were stuck trying to deal with glitches in the application process. 

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Seeking Capital? Ask Yourself These 3 Questions First

Entrepreneur

If you’re a tech executive thinking about seeking capital for a future idea, ask yourself these three questions before you begin: Partnerships aren’t just important in a mentoring capacity; finding a partner who shares your passion for your idea increases the odds of scalable success.

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What Will Happen To Deal Activity and Valuations During the Corona Crisis?

Thomvest Ventures – Medium

Q3’20 — Distribution of Series A pre-money valuations should expand as companies adjust and investor appetite reemerges: It’s not all doom and gloom .Q2’20 — Median pre-money Series A valuations will drop from $22M in Q1 to ~$17M in Q2 and the 3rd quartile will drop from $35M in Q1 to ~$23M in Q2: If we use 2008 as a proxy, we saw an interquartile range contraction (3rd quartile — 1st quartile) between Q3’08 and Q4’08 and a quick drop in the median.

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Venture Capital in the Age of COVID-19 – The National Law Review

The National Law Review

Pay to play provisions provide for various penalties such as a conversion of preferred to common shares or loss of other rights such as anti-dilution protection, board representation, preemptive rights or approval rights, if the investor does not participate in a later financing round.Rather than being paid currently, these dividends typically accumulate and are payable on certain events, including liquidation, redemption, or conversion of the preferred common stock so that the funds remain invested in the business.

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Financing in isolation – NJBIZ

NJBIZ

Besides spurring a pullback in new investments, the disease is driving venture capital and private equity communities to change the way they do business.Added a New Jersey-based private equity managing partner, who spoke on condition of anonymity, “In-process deals are still closing, and some firms are jumping in now because of depressed valuations, but many are holding back.”

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So, We’re All Working Over Video. Now What?

Powered by Battery

Because Woven is currently managing over 100 million events, Tim and his team have some interesting, front-line insights about just how videoconferencing is being used today—but also about some of the technology’s shortcomings, and how it will need to evolve to meet our needs in a post-COVID-19 world.Interesting, too, was that across the more than 100 million events entered into online calendars with Woven, the Zoom platform was the most dominant for video.

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What Will Happen?

Points and Figures

I don’t think we go back to the way were exactly, but I suspect things will be a lot more normal than people assume.I am seeing a lot of articles right now with predictions.

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Crisis Coverage w/ Semil Shah – VC Fund Management in a Pandemic World

The Full Ratchet

Semil Shah of Haystack joins Nick on a special Crisis Coverage installment to discuss VC Fund Management in a Pandemic World.Crisis Coverage w/ Semil Shah – VC Fund Management in a Pandemic World

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Over-Managing Is Sinking Your Leadership

The Startup – Medium

The only way this attitude works is if you don’t have a team that works for you, i.e. you aren’t a leader.It took me three leadership positions before I finally realized my lack of ability to ‘let it go’ was burning me out as a leader and crippling the potential of my team.

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How You and Team May Feel Around May 15 or So

SaaStr

I don’t have any profound insights, but perhaps one way I can help a little bit is that little old team SaaStr started going into War Mode earlier.It’s probably going to get harder to lead through all this change in another 30-45 days.

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Surviving in the Crisis: 25 top stories for Startups, Venture and Angel Investors

Venture Trends Newsletter, Issue #12

I read daily and this newsletter gathers together this week’s most interesting content I saw related to the venture capital and startup ecosystem. I hope you find it useful as well as being a time saver. So I’m curating for you. You can check out more about me at https://archimedes.studio

In this week’s free issue there are some amazing things to highlight.

  • Fred Destin on Leadership in a Time of Crisis
  • Startup Loans from the Government
  • Founders and Investors – Power Shifts
  • Making Cuts – How to…
  • Field Guide to Remote Working
  • Great Question – “Why might we Fail”?”
  • Improving your home for video calls – Bijan Sabet

I email the newsletter each weekend. There is little or no commentary included, it is the things I found compelling or interesting.

This is the free version, and I also have a supplemental paid version that includes access to content for full subscribers only. If you are not a full subscriber and you want to be then please open the weekly supplement and choose a monthly or annual plan.

This week’s paid version is here – Venture Trends for Paid Subscribers

Stories in the paid version this week:

  • Why Central Banks and Digital Cash could create Universal Basic Income
  • Product Engineering – Silicon Valley Style
  • 7 Leadership Lessons Men Could Learn from Women
  • How the 2008 Recession impacted Seed, Venture and Growth investors

Developing Leaders in a Time of Crisis

Fred Destin on Medium

Your staff members are working from home and you’re adapting to running your business in distributed mode. You need new leaders around you like never before. Here’s some thoughts on how you can enable that.

Most of your startup team members will fall into the camp of individual contributors, especially in young companies where you hired, typically, young people against specific tasks and goals.

Creating a network of leaders to help you scale your business is one of the most efficient way for you to build a strong and sustainable fabric and leverage your powers 100X over.

You can create the conditions under which this happens, and nurture your best talent into leadership. I’m not talking about only your VPs and leadership team, but about everyone in your company.

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Real Leaders Are Forged in Crisis

Harvard Business Review

Your job, as a leader today, is to provide both brutal honesty — a clear accounting of the challenges your locality, company, non-profit, or team faces — and credible hope that collectively you and your people have the resources needed to meet the threats you face each day: determination, solidarity, strength, shared purpose, humanity, kindness, and resilience.If you’re looking for in-the-moment role models, turn to Governor Andrew Cuomo of New York or Governor Gretchen Whitmer of Michigan, both whom are offering de facto masterclasses in crisis leadership: explaining the gravity of the situations their states are facing, outlining the resources being deployed to battle the coronavirus, and calling their constituents to act from their stronger, more compassionate selves.

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How 6 top VCs are adapting to the new uncertainty

Fundings & Exits – TechCrunch

To get a better handle on how venture capitalists are approaching today’s market, TechCrunch corresponded with a number of active investors to learn how their investment selection process might be changing in light of COVID-19 and its related disruptions .There’s likely some selection bias at work, but the venture capitalists who were willing to answer our questions were quick to note that they wrote a similar number of checks in Q1 2020 as in both Q4 2019 (the sequentially preceding quarter) and Q1 2019 (the year-ago quarter).

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What your startup or portfolio company can do to survive Covid-19

The Startup – Medium

You’ve probably already taken drastic steps to save cash and extend your runway: stop any non-essential operating expense, called investors for some more cash, discussed with your suppliers and other creditors, maybe had to resort to decrease the days and hours of your staff, and obviously asked your customers for their support.if you can afford it at all, continue marketing so as to gain some saliency: media is very cheap right now and most companies have stopped all advertising to save cash.

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Podcast: Crisis Coverage w/ Samir Kaji – Relief $ for Startups via CARES Act, EIDL, PPP; & How an Extended Downturn Affects Emerging VC Funds

The Full Ratchet: VC | Venture Capital | Angel Investors | Startup Investing | Fundraising | Crowdfunding | Pitch | Private Equity | Business Loans

Samir Kaji of First Republic joins Nick on a special Crisis Coverage installment to discuss Relief $ for Startups via CARES Act, EIDL, PPP; & How an Extended Downturn Affects Emerging VC Funds.Some of the best companies (Uber, AirBnB) first took institutional capital after the 2008 crisis; is now the time to be aggressively investing?

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Start-ups will now be eligible for coronavirus relief loans

WFMJ

“The problem stems from the SBA’s definition of “small business” in light of the way that many startups in America are financed – through equity investment provided by venture capital firms, which typically make investments in a portfolio of young businesses, understanding that many will fail while a few will survive and thrive. 

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The pendulum will swing away from founder-friendly venture raises

Fundings & Exits – TechCrunch

This morning brought fresh economic bad news for the U.S. economy, with over 700,000 jobs lost in the latest report , despite the window of time measured not including some of March’s worst days , and the data itself not counting as many individuals as it might have ; the unemployment rate still rose nearly a full point to 4.4% .The impacts of the national economic slowdown are going to change the face of venture capital as we’ve come to know it during the last ten years.

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Amid Downturn, Silicon Valley’s Balance of Power Shifts From Startups to VCs

The Information

For years, entrepreneurs have called the shots in Silicon Valley’s startup ecosystem as an abundance of capital chased a limited supply of good ideas.  But in a matter of weeks, as businesses everywhere lurch to a halt due to the coronavirus pandemic, the pendulum has swung decidedly back toward venture capitalists. 

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3 Tips to Avoid WFH Burnout

Harvard Business Review 

As millions of employees around the world have had to make a sudden and unprecedented shift to remote work amid the coronavirus pandemic, many might find themselves feeling like they need to work all the time to signal their devotion and productivity — and, as a result, may struggle to create healthy boundaries.The lines between work and non-work are blurring in new and unusual ways, and many employees who are working remotely for the first time are likely to struggle to preserve healthy boundaries between their professional and personal lives.

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If You Have to Cut — 5+ Thoughts On Where

SaaStr

At the end of the day, if you are going long, what matters most is that you close a customer for life.Building pipeline and doing discovery calls with prospects does matter now, even if sales cycles have just lengthened an unpredictable amount.

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How to do a layoff If you need to.

“When Others Are Fearful…”

VC by the Numbers – Medium

We focused on the two most recent major shocks, both of which my co-founder Trevor Kienzle and I lived through as VCs: the Dotcom Bubble Burst followed by the 9/11 Terrorist Attacks (which we’re considering for this purpose as a single shock because they were so close in time), and the 2008 Financial Crisis.Realized multiples for all VC investments, including investments in first institutional rounds, increased significantly immediately following both the 9/11 Terrorist Attacks and the 2008 Financial Crisis.

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Struggling to Thrive as a Large Team Working Remotely? This Exec Has the Field Guide You Need

First Round

I also had managed or worked with many distributed teams at places like CNN or The Wall Street Journal and there were a fair share of bumps in the road,” says Leung, who spent nearly 20 years in the news world before joining NerdWallet in late 2013.In that spirit of sharing and making sure others don’t have to start from scratch, Leung sat down with us to pass along tactical tips and key takeaways from leading a large remote team.

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NVCA 2020 Yearbook

US NVCA Annual Yearbook

Venture capital firms offer help for laid-off start-up employees

The Straits Times

Venture capital (VC) firms across South-east Asia have launched a community-led initiative to help start-up employees who were laid off due to the fallout from the coronavirus outbreak find new opportunities.In the same spirit, Ms Elise Tan, a consultant who works with start-ups, has built a spreadsheet that matches start-up companies to volunteer mentors.

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“What do you suspect the reason we will fail will be?”

When a VC Investment Fails, Does That Mean It Was a Bad Investment? Probably Not

SaaStr

Both in terms of how many start-ups in their portfolio are modelled to fail, and what % of the capital in that fund is modelled to go into losses.With venture capital investments that fail, is the problem most often with the entrepreneur or was it a bad investment by the VC?

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How to value a startup in a downturn

Fundings & Exits – TechCrunch

Pulling from our conversation, D’Onofrio told TechCrunch that startups want to be valued like companies were a few months ago, while investors want to pay today’s market prices.She’s the right person to chat with about the links between private valuations and public share prices as she not only helps put capital into growing startups, she also helps run the Bessemer cloud index (now a partnership with Nasdaq , and trackable on a day-to-day basis ).

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An Open Letter to Startup Founders Everywhere in a Time of Crisis

Hi, I’m David G. Cohen

I started my first business in 1993, right in the middle of the recession, because I didn’t know any better.Near the end of the recession in 2009, I invested in Uber, Twilio, and SendGrid.

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Improving the home setup for video calls

Bijan Sabet

Since I’m on a Zoom call most days, I’ve been taking steps to improve the video conferencing setup at our house.So it’s now on a desktop tripod, facing me during video calls.

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Can an Entrepreneur Back Out of a Signed Term Sheet Without Damaging Their Reputation?

SaaStr

Can an entrepreneur back out of a signed term sheet without damaging his/her reputation?And that fund that shouted at me, after they changed the terms on an unsigned term sheet?

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7 Signs an Angel Investor … May Really Be a “Devil” Investor

SaaStr

What matters is price, check size, and maybe, pro rata rights in the next round (if you have a significant amount of capital to invest later).Complex, multi-page term sheets for an angel investment are signs of problems to come.

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VCs or Founders: Who Makes More?

SaaStr

Their own investors (“LPs” or Limited Partners) pay them for a decade more than fairly to manage their investments, no matter how well or poorly they perform.But — truly great founders make the most by far.

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Startups Face Uncharted Waters As Funding Dries Up – Law360

Law360

Law360 (March 27, 2020, 2:56 PM EDT) — The coronavirus outbreak is crimping venture fundraising, forcing cash-hungry startups to consider hard choices that could require delaying capital raising, slashing expenses, or accepting more investor-friendly terms if they pursue a financing round.For companies able to complete funding rounds, lawyers note that startup founders may have to settle for terms more amenable to investors.

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A little thread on how one venture capitalist thinks about the pandemic from a fund standpoint

Venture Funds, and Companies in Crisis

I read daily and this newsletter gathers together this week’s most interesting content I saw related to the Venture capital and startup ecosystem. I hope you find it useful as well as being a time saver. You can check out more about me at https://archimedes.studio

In this week’s free issue there are some amazing things to highlight.

  • Gené Teare (yep that Gené Teare) on 2008 vs 2020
  • Paul Graham, Mark Suster, Tomasz Tunguz, Nick Mehta and others on what Venture Investors are doing in the crisis.
  • Best Female led Venture Backed Companies outside Silicon Valley
  • VCs – Bad Behavior in the Pandemic
  • Great tools for Virtual Meetings, Streams and Live Events
  • Albert Wenger of Union Square Ventures on the Economy
  • The Rise of Alternative Venture Capital

I email the newsletter each weekend. There is little or no commentary included, it is the things I found compelling or interesting.

This is the free version, and I also have a supplemental paid version that includes access to content for full subscribers only. If you are not a full subscriber and you want to be then please open the weekly supplement and choose a monthly or annual plan.

This week’s paid version is here – Venture Trends for Paid Subscribers

Stories in the paid version this week:

  • Is Universal Basic Income the way to deal with the Crisis?
  • Why timing matters for startups
  • Failure that leads to success
  • 18 pro tips for virtual pitching
  • Om Malik (True Ventures) and Bijan Sabet (Spark Capital) in conversation

Lessons From 2008: How The Downturn Impacted Funding Two To Four Years Out

Crunchbase News

Below we look at the same time period from Crunchbase global data to review early-stage funding trends from 2006 to 2012.In an effort to help our readers put what’s happening today into context, we jumped aboard an analytical time machine set for 2008 when investors were sounding strong alarms to their venture-backed companies.

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Layoffs Accelerate Across Silicon Valley Startups

The Information

As the world braces for a recession triggered by the coronavirus outbreak, venture capital–backed startups across several industries are making significant cuts to their employee numbers. 

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A Viral Market Meltdown IV: Investing for a post-virus Economy

Musings on Markets

In this week’s update, I will begin by again first chronicling the market damage, across asset classes, and within equities, across sectors, industries and company types, but I will follow up by looking at four different investment strategies for those who have the capacity and the willingness to look past the near term, recognizing that many of you might not have that luxury.Bargain Basement : In this strategy, you focus on stocks that have been pounded in the last few weeks, losing 50% or more of market value, but which have the ingredients that you believe will allow them to survive, perhaps stronger, in the post-virus economy.

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What Advice Are Venture Capitalists Giving to Startups in Light of the Coronavirus Crisis?

AllBusiness.com

At Arbor Ventures, we are working closely with our companies to reduce their burn immediately, adjust customer expectations, and identify new opportunities that will emerge.“In an environment like this, it’s critical to maintain strong relationships with your key customers, partners, and employees.

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208. Pre-Crisis chat w/ Mark Suster – Mark Predicts the Crisis (Mark Suster)

The Full Ratchet

You had a chat w/ Meg Whitman, CEO of Quibi at the Summit… and I’m going to read a quote from your blog post about that interview “her analogy of content like “The Da Vinci Code” which had 464 pages and 105 bite-sized, fully realized chapters.– Whether it be the corona virus, the election and/or a potential market correction… what do you think the next 6-12 months will hold and what effect will that have on early stage startups, funds and IPOs.

Early-Stage, Venture Capital Companies in a Crisis and Subchapter V

The National Law Review

Subchapter V also allows for the confirmation of a nonconsensual Chapter 11 plan of reorganization (i.e., not consented to by any classes of creditors, subject to certain exceptions for secured creditors) as long as the plan is “fair and equitable,” generally meaning that the plan requires the reorganized company to apply all of its projected disposable income during a 3- to 5-year period towards payments to the company’s pre-bankruptcy creditors under the plan.With many of the early-stage companies we’ve spoken with, sharing the recent addition of Subchapter V of Chapter 11 of the Bankruptcy Code and its ability to preserve the interests of common and preferred stockholders in a distressed company has proven reassuring.

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What’s Going On in Venture Capital Right Now with Byron Deeter, Bessemer Venture Partners

SaaStr

We had over 1,000 folks come to our webinar this past week with Nick Mehta, CEO of Gainsight on how CEOs are planning now, so we thought we’d keep this series going and name it “Bridging the Gap.”The post Webinar: What’s Going On in Venture Capital Right Now with Byron Deeter, Bessemer Venture Partners appeared first on SaaStr .

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VCs behaving badly during the coronavirus pandemic – Sifted

Sifted

Signed term sheets are usually sacrosanct in venture, but this week we’ve seen companies try to halve valuations on the day of completion or even try to ghost founders completely, as though the deal had never existed.I’ve seen more bad investor behaviour in the last 10 days than I have in the previous eight years of running Entrepreneur First.

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Black Swan Events

alexdanco.com

This week’s unemployment filings, compared to the last half-century, are considered by frequentist statistics as a 30-sigma event : less likely to happen than if you had to select one atomic particle at random out of every particle in the universe, and then randomly again select that same particle five times in a row.To me, this fourth characteristic is the real key for understanding the logic of Black Swan events, like what just happened this week.

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Over Half of VCs Have Stopped or Cut Down Investments, Survey Finds

CTech

Over the past week, Israeli customer research startup Wizer Feedback Ltd. surveyed 131 venture capital funds and corporate venture arms on how their activity will be impacted by the ongoing crisis.”Venture capital funds are stopping everything in order to better understand the situation,” Yarkoni said.

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Venture capital market shows signs of stalling

Private Equity News

The chaos in the global economy is leading to a slowdown in the venture capital market. Business assumptions are quickly changing as the coronavirus pandemic takes its toll, causing some investors to slow down their investing pace and focus on existing portfolio companies. 

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VCs are split on what will come next for their industry in a downturn

Business Insider

Her firm, which invests primarily in startups in alcohol, tobacco, and marijuana industries, is currently raising $25 million for a yet-to-be-closed fund and has seen more interest from LPs than usual since vice industries typically outperform other industries in a downturn .The current market is unlike anything VCs and LPs have weathered before, multiple investors have told Business Insider.

Adjusting to Remote Work During the Coronavirus Crisis

Harvard Business Review

ALISON BEARD: So if I’m a C-suite leader, CTO, head of an IT department, or even just someone who’s trying to manage their team, what is the first thing that I need to do to make sure people are set up to work effectively outside the office?Tsedal Neeley, a professor at Harvard Business School, says that there are simple ways leaders can help their employees stay productive, focused, and psychologically healthy as they work from home during the current global global pandemic.

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Omidyar to invest in projects, startups to tackle coronavirus

VCCircle

Omidyar Network India Advisors Pvt. Ltd, the domestic arm of the US-based impact investment firm, has committed $1 million (Rs 7.5 crore) to fund proposals aimed at tackling the coronavirus pandemic.Initiatives that will be considered include data and application-led technological solutions, community outreach and mobilisation campaigns, small business worker-focussed programmes, actionable research initiatives and collaborative efforts by stakeholders such as foundations, philanthropies, impact investors and venture capital firms.

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Putting the Economy in Suspended Animation: A Proposal

Union Square Ventures

Now that we are finally going on lockdown here in the US in order to flatten the curve of the COVID19 crisis, we also need to take drastic measures to put the economy on suspended animation.Rents and interest payment would be suspended under #1, wages could be stopped under #2.

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Facing disaster, corporate venture capital to undergo key stress test

PitchBook News & Analysis

For their part, corporate venture firms participated in 1,849 US funding rounds totaling $57 billion—second only to the 1,871 deals worth $71 billion in 2018, according to PitchBook data.After driving much of the venture capital market’s hyper-growth in recent years, corporations are poised for a decisive stress test of their zeal for funding startups.

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The a16z WFH Podcast: Remote Work and Our New Reality

Andreessen Horowitz

In the latest WFH episode of the a16z Podcast—recorded all remotely, of course—a16z’s Connie Chan, David Ulevitch, and Lauren Murrow discuss the swift rise of remote work and virtual networking amid the spread of the coronavirus. 

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Meet the European startups that pitched at EF’s 13th (and first virtual) Demo Day

Fundings & Exits – TechCrunch

They include companies tackling drug discovery using digital twin cells, environmental pollutant monitoring, and artificial brain development for robotics applications, to name just a few (that last one was a mouthful).Meanwhile, here’s an interesting tidbit: According to a source, one of the pitching EF companies, Ochre Bio — which is developing gene therapies to treat donor livers outside of the body — made the unusual decision to join Silicon Valley’s YC accelerator in the middle of the EF programme where the founders met, so they’re effectively coming into Demo Day with half their round filled.

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Fintech Gets Put to the Test

Andreessen Horowitz

These include fintech companies that provide free banking services (who can afford fees now?), enable early wage access (many can’t afford to wait two weeks), and offer more flexible options for credit scoring or loan repayment.In order to get out of this unprecedented economic crisis, we need immediate fiscal help targeted at those with fragile balance sheets, particularly small businesses and low income Americans.

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Why the Accelerator Model is Broken—and how 500 Startups is Fixing it

500 Startups

Like other accelerators, 500 has always accepted startups into our batches two times per year.This means to thrive in the program, your company needs to be at precisely the right stage, at the exact time you join.

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How to Work Remotely as an Extrovert

The Startup – Medium

As more of us see ourselves working remotely for an extended amount of time, some of us, the ones who love the chats at the water cooler, who thrive in face-to-face meetings, and who have routines of lunching with co-workers miss these types of interactions when we are at home working remotely.For an extrovert, working remotely can feel like trying to achieve the impossible.

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France launches 4 billion euro support plan for start-ups

WHBL News

France will roll out a 4 billion euro ($4.33 billion) liquidity support plan for start-ups in the wake of the coronavirus outbreak, junior minister Cédric O said on Wednesday.

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Virtual Offsites That Work

Harvard Business Review 

The foundation of an effective virtual offsite remains basic meeting management: clear objectives, a well-crafted agenda, concise pre-reads, a well-chosen group of attendees, documented decisions, and specific next steps, etc.But with the right preparation, a focus on good meeting practices, careful use of various tools, some rehearsal, and a willingness to experiment as a team, it’s not only feasible but relatively easy to conduct virtual offsites that allow you and your team to productively tackle even the toughest issues.

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What Will this Crisis Accelerate in Your Ecosystem?

Tomasz Tunguz

Instead, his manager told him that these kinds of crises accelerate change and that he should embrace them.Since then, I’ve been asking myself, what changes will this crisis accelerate?

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Are You Leading Through the Crisis … or Managing the Response?

Harvard Business Review 

Knowing that a crisis can emerge at any moment, organizations in high-risk industries, such as energy and aviation, have robust health, safety, security, and environment (HSSE) functions to manage crises .Leading through a crisis requires taking the long view, as opposed to managing the present.

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The Rise of Alternative Venture Capital

Entrepreneur

Often in the last decade, you could try to raise funding as a startup founder anywhere else and run into risk-averse investors who were yet to understand the open-eyed model of venture capital.Coupled with the increase of startups moving to San Francisco from around the world, the spike in technology jobs, and a huge swath of new VC funds entering the fray, the model, and the city, started to change.

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Why London remains the global fintech capital – FinTech Magazine

FinTech Magazine – The FinTech & InsurTech Platform

The epicentre of the UK’s fintech sector remains firmly positioned in Silicon Roundabout, attracting a wealth of emergent and growing start-ups.Critics might claim that London’s fintech scene is being overtaken by other hubs such as Singapore, Zurich or cities in the US, but there is no denying its continued place as a global leader in the sector.

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Multi-Stage Funds Investing At Seed Are Option Value Investing, Why The Biggest Enemy For Venture Firms Is Group Think and How Running Companies Changes Your Investment Mentality with Manu Kumar, Founder @ K9 Ventures

The Twenty Minute VC: Venture Capital | Startup Funding | The Pitch

1.) How Manu made his way into the world of venture having founded 4 prior companies and how he came to found K9 and be one of the OG’s of pre-seed funding, having coined the term?2.) What does Manu believe have been the biggest and most significant changes in the early stage market over the last 7 years?

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We’re Looking for a Chief of Staff

Stories by First Round on Medium

This role will engage across all functions of First Round, including reviewing new investment opportunities, special projects, partner branding/marketing, portfolio engagement, and management of administrative staff.At First Round, individuals in this role supercharge our investment team by creating and managing processes that deliver world-class services and experiences to entrepreneurs.

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The Logistics Of Startup Ideas

Forbes

Because building an enduring company is a decades-long endeavour, taking time up-front to set up a strong foundation is key to maximizing the probability of success in an endeavour already fraught with risk.The foundation you build in the early days largely determines the trajectory, and ultimate success, of your startup.

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Change in venture capital funding encourages growth of fintech startups

ESI Africa

In a company statement, Sudheshna Karukula, Fintech Analyst at GlobalData, comments:

“The change in the venture capital (VC) funding equation over the last few years has encouraged the most successful fintech startups to gradually re-bundle their offerings in existing as well as new geographies, across the financial services value chain, by leveraging emerging technologies.”

The fintech with a total funding of $16 billion started its journey as an online mobile recharge and bills payment platform, and gradually scaled up into other digital financial services businesses such as banking and insurance.

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Top 5 female-led enterprise software startups outside Silicon Valley

Silicon Canals

Cledara works with the mission to provide building blocks for tech companies to automate, and embed their banking within business processes. Why its hot: Localyze is an all-in-one software, which simplifies the relocation process for companies as well as their international employees.

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Agtech and Foodtech Markets Mature – FinSMEs

FinSMEs

While the United States continues to take the leadership role in agtech investments, Europe is closing the gap and doubled capital deployed into agtech deals in comparison to 2018 – ending the year at $500 million.The document found that agtech deals continued to rise and reached an all-time high in 2019, while later-stage VC valuations across the agtech and foodtech ecosystem rose consistently.

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Looking back at Zoom’s ascent a year after it filed to go public

Fundings & Exits – TechCrunch

The company didn’t begin trading until mid-April last year, but it was through its March 2019 IPO filing that its name took on new prominence; here was a quickly growing software as a service (SaaS) business that was posting profits at the same time.Zoom, a video chat service then popular with corporations, filed to go public on March 22, 2019 .

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Coronavirus Pandemic Highlights Vital Need for Vertical Farms in World Cities

Urban Ag News

With millions of tourists and commuters now staying away from the city, however, and with the city’s hotels at just 49 percent occupancy for the week ending March 14, an excess of food supply is readily available for diversion into the city’s grocery stores and other retailers to meet the surge in demand by local residents.New York City, for instance, normally has food supply amounting to approximately 8.6 million tonnnes (19 billion pounds) annually as purveyed by a network of regional and national food distributors, which then is sold at about 42,000 outlets across the city’s five boroughs, according to a 2016 study sponsored by the city.

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34 Top Stories this week for Startups, Angel and Venture Investors

Venture Trends Newsletter, Issue #9

In this week’s free issue there are some amazing things to highlight.

  • Tomasz Tunguz on “The Next Few Months in Startupland”
  • Why to begin a startup in a bad economy – by Paul Graham
  • Every CEO is now a “wartime” leader
  • What does a great remote team tech stack look like?
  • 10 tips on working from home during Quarantine
  • 7 things a CEO can do to help the team
  • Virtual Events – Is this the moment?
  • How to get people to actually participate in virtual meetings
  • Running a successful fundraising process
  • Great process and great outcomes
  • Private Equity and Venture Outlook for 2020
  • Emotional Intelligence in startup culture
  • How to spot an incompetent founder
  • Venture Capital in Africa
  • The Russian VC market in 2019
  • How to make a Unicorn startup idea work
  • E-Sports startups to watch
  • First steps to becoming a good leader
  • How to tell a great story
  • Why are there so few Female investors?
  • Raising a Micro VC fund at a time of #coronavirus
  • Sovereign wealth fund investment in venture capital deals slipped to its lowest level in six years

This newsletter gathers together this week’s most interesting content related to the Venture capital ecosystem. I read every day and this is curated from my weekly reading. I help startups tell their story at https://archimedes.studio

I email the newsletter on each weekend. There is little or no commentary included, it is the things I found compelling or interesting.

There is a free version, and a paid version that includes access to content for full subscribers only. If you are not a full subscriber and you want to be then please open the weekly supplement and choose a monthly or annual plan.

I accept payment in crypto currencies also. If you pay in crypto please email keith+venturetrends@teare.com so I can provision your subscription.

  • Monthly subscription – here
  • Annual Subscription – here

This week’s paid version is here – Venture Trends for Paid Subscribers

Stories in the paid version this week:

  • An autopsy of the investor mindset
  • What to expect from due diligence
  • How #coronavirus might impact Venture investing
  • How to build early stage relationships in venture capital
  • Maximizing the value of your startup
  • How MOAT went from $0 to $100m in ARR in less that 4 years, on $20m
  • Making an acquirer value your early stage startup
  • How to overcome lack of good connections to investors

What I Expect in the Next Few Months in Startupland

Tomasz Tunguz

Equally important is creating a set of leading indicators that, once triggered, the business shifts to the conservative plan.Also, the volatility in the stock market may pressure valuations, particularly in the growth stage.

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Why to Start a Startup in a Bad Economy

@paulg Tweets

Why to Start a Startup in a Bad Economy: paulgraham.com/badeconomy.html

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Private Equity and Venture Capital Firms Shared their Outlook for 2020

S&P Global

Only 13% of North American investors pledge to sell part of their portfolio assets in the next few months; in LatAm this number is as low as 2%, as survey participants expect to be primarily busy with making new investments (43%) and fundraising activity (33%).In the same manner, North American PE investors have also not been immune to the economic environment and have reacted accordingly: only 36% of them expect investment activity to improve in the coming months, a significant decrease from the 54% reported in the previous year.

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Now everyone’s a wartime ceo. You have no choice

@dunkhippo33 Tweets

20VC: 3 Addictions Of Early-Stage Startup Founders, How Founders Should Strategically Think Through Unit Economics From Day 1 & Why Micromanagement Can Be Beneficial In The Early Days

The Twenty Minute VC: Venture Capital | Startup Funding | The Pitch2.) What does Adena believe are the 3 addictions of many early-stage startup founders?1.) How Adena made her way from the world of venture with DFJ to changing the way we think about homeownership with Divvy?

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A great tech stack for a distributed team

Maren_Bannon Tweets

Running a successful fundraising process

@Maren_Bannon Tweets

Our Workshop Series came to NYC last week for a conversation with Bain Capital Ventures Partner, Merritt Hummer , on running a successful fundraising process.Show prospective investors how big your company can be.

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7 Things as CEO You Can Do Now to Help The Team

SaaStr

If you are feeling a bit overwhelmed as CEO, remember it’s even harder on the team.2. Calmly re-forecast for the year based on a bottoms-up analysis (e.g., longer sales cycles).

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10 Tips for Working From Home During Quarantine

No Film School

I thought you might be feeling the same way, so I wanted to go over some helpful tips for people transitioning to work from home.Coronavirus has a lot of us working from home , including all of No Film School, so how do we stay productive?

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What did we do with our company? We started to raise a small round, but half way through sent everybody their checks back…

@robgo TweetsRob Go (@robgo)

What did we do with our company? We started to raise a small round, but half way through sent everybody their checks back because the amount of revenue we brought in from our customers that year was roughly equal.

How Great Process Leads To Great Outcomes

Forbes

And I think that you have these things in conflict and the probability that they, over the time that they’re a junior person, learn how to craft taglines, how to participate effectively in brainstorm sessions, how to do all the small little things that you do actually have control over, they help you improve the odds that you create the tagline, that you strike, you find that luck.Phin Barnes: The real answer there is I went to business school after some time in the startup world and thought I would jump right back in to starting another company.

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Britain is ahead of many of its competitors in technology startups

The Economist

Finance, making up nearly a third of Britain’s unicorns, is the biggest sector, with companies like Revolut, Monzo and OakNorth (all upstart banks) and TransferWise (a money-transfer service).According to Dealroom.co, a data-analytics firm, Britain has created 63 such companies in the past ten years.

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The 5 Qualities of Tech Companies With Emotionally Intelligent Cultures

The Startup – Medium

Emotional intelligence is the game changer for Tech companies. Continue reading on The Startup

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How to Spot an Incompetent Leader

Harvard Business Review

If we want less incompetent men in leadership roles, those responsible for judging candidates need to improve their ability to distinguish between confidence and competence.The good news is that, for some time now, we have had at our disposal scientifically valid assessments to predict and avoid managerial and leadership incompetence.

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Venture Capital Can Work Despite Economic Slowdowns

Proshare Nigeria Limited

Economies, according to Dr. Ola Brown, Director, Greentree Investment Company conversations around Venture Capital in Africa .

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Rise and fall! – A look at the Russian VC market in 2019

Blog – Crunchbase

The record volume of transactions, the growth of the average round, and the development of deep tech – such trends are cited by Dsight analysts in the latest report on the Russian venture market in 2019 , prepared with the support of the Innovation Hub of Kaspersky Lab, Crunchbase, DS Law, EY and NAIMA.At mid-level stages (A/B rounds) government VCs stepped up activity – they spawned funds and an assortment of support initiatives (National Technology Initiative grants, Industry Development Fund loans, and many more).

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How to Avoid Feeling Lonely When Working Remotely

The Startup – Medium

You need to adjust quickly, learning how to manage your own time, stay productive, avoid distractions, set boundaries and much more while doing your work well.This is not limited to remote work only — creating a space for general communication benefits company culture and helps employees to feel more connected.

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How to Make a Unicorn Startup Idea Work

Business 2 Community

Usually investments at this phase are used to build up scalable business processes and find out the product/market fit.Pitched funds are usually used to continue product development and reinforce marketing/sales activities.

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Ones to Watch in Esports

500 Startups

With the market as large as ever and continuing to grow, Batch 26 companies Gamerzclass and Juked are working towards creating the next big hubs in esports.Esports fans have been waiting for an all-in-one platform that gives them the opportunity to follow the games they care about most, whenever they want.

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The First Step to Becoming a True Leader

The Startup – Medium

I had been named the Platoon Guide (leader of all the 75 other recruits) in the early weeks of Boot Camp and had managed to hang onto that role through rifle range week…which was mid-way through the duration of the entire Boot Camp.If you choose to remain a leader-victim in any way at all, however and do you not take responsibility for everything that happens with the team you lead, the good fruits cannot give sustenance to you or your team and your mission will likely fail.

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How Can You Get Great Talent To Join Your Unfunded Startup?

The Startup – Medium

“Let’s meet for coffee,” I said to person I was recruiting.You keep meeting with people and recruiting for when the time is right for them to join.

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How to Tell a Great Story

The Startup – Medium

Although some stories — like TV shows — can have 8, 10, or 12 acts, the three-act structure is so fundamental to storytelling because that’s how our minds work.Whether you write a book, record a podcast, make a presentation, or create a Medium post, the ability to tell a story, and to grab a person’s attention is critical.

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How to be a great data storyteller?

The Startup – Medium

To be a great storyteller, it is worthwhile to spend some time to understand the essential components of a good story: A setting, a twist, and a resolution.The context we want to build is that Cinderella had a very happy life, even after her mom passed away, it is still fine as her dad has always been there.

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The World Needs More Female Investors

CTech

Suggested explanations for this situation often include the following claims: that women are more careful with their money and startup investments are considered high risk; that women consistently have less capital to invest; that many of the male investors once founded their own companies and are now using their exit money to invest; and that women know less or care less about investments than men.Women taking a more active role in investment will naturally increase the number of investors as well as the amounts of available capital for startups.

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Micro VC fundraising and COVID-19

Stories by samir kaji on Medium

With business travel partially suspended for many (also reducing the number of serendipitous touch points at industry events) coupled with general Macro anxiety, I’d recommend managers, particularly those with Fund I/II offerings to plan for an 18+ month cycle from initial fundraising launch.And while it is far too early to understand the medium to long term effects of the virus on the private capital markets, companies ( see Sequoia’s latest cautionary piece ) and venture funds must start planning for a potential new reality.

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Start-ups aim to bring big conferences online as coronavirus triggers cancellations

CNBC

Johnny Boufarhat was alarmed at the number of inquiries his start-up was receiving, as health concerns around the fast-spreading coronavirus forced major tech conference organizers to pull the plug. The GSMA, which runs Mobile World Congress, was among the first to cancel its flagship event , while the Game Developers Conference was postponed to the summer.

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How to Get People to Actually Participate in Virtual Meetings

Harvard Business Review

In the first minute of your meeting, help participants experience the problem you want them to solve by sharing statistics, anecdotes, or analogies that dramatize the issue.Define a highly structured and brief task they can tackle in small groups of two or three people and give them a medium with which to communicate with one another (video conference, Slack channel, messaging platform, audio breakouts).

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Can Startups Build Robust Moats?

The Startup – Medium

There are several ways in which startups can build lines of defense to protect their business and retain their competitive advantage.In startup terms, this translates to creating a strong line of defense that prevents potential competitors and market forces from posing a risk to a new business’s profitability, operational efficiency, and outlook for success.

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Sovereign Wealth Fund Appetite for Investing in Start-Ups Wanes

The New York Times

Sovereign wealth-backed venture capital rounds fell to $7.2 billion in 2019, a sharp slide from a record $31.6 billion the previous year, according to research from ICEX and the Spanish-based IE Center for the Governance of Change.

LONDON — Sovereign wealth fund investment in venture capital deals slipped to its lowest level in six years in 2019, with the drop-off deepening in the months after WeWork’s planned share sale failed, data showed on Friday.

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VC and Ecommerce: The Billion or Bust Deathpact

The Startup – Medium

I don’t know if Tyler Haney saw where this path was leading when she took her first $1 million from General Catalyst and started spending aggressively to hit growth targets, running at a loss that would take her right back to the next funding round. This makes sense from the VC’s incentive structure (this thing being profitable and throwing off a couple million a year is not what they signed up for — they are willing to risk the company’s existence for a shot at a billion dollar exit one day).

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Customer Acquisition Cost and Why It Matters

The Startup – Medium

However, there’s another metric that can help you to avoid this pitfall, and win actual victories with your marketing: Customer Acquisition Cost.If you want to grow in a scalable and profitable way, then you have to look beyond customer acquisition and get smart with other relevant marketing metrics to help with your growth strategy:

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20VC: Why Most Founders Do Not Structure Their Fundraise Correctly, The Pros Of Having An MBA As A Startup Founder & How To Manage The Psychology Of Being CEO and Overcome Self Doubt with Iman Abuzeid,

The Twenty Minute VC: Venture Capital | Startup Funding | The PitchI

man Abuzeid is the Founder & CEO @ Incredible Health , the startup that connects hospitals with nurses and other high shortage healthcare professionals to dramatically speed up the hiring process.As for Iman, prior to Incredible, she was a medical doctor, a McKinsey alumnus and led product management at AliveCor, a Khosla-backed health tech startup.

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Expect to See Fewer Unicorns in 2020 and Beyond

AlleyWatch

Looking back at the past year at the stock market, it was a time of “unicorns” – companies that were valued at more than one billion US Dollars at the time of their IPO.Prior to going public, the mobility service collected $14B in venture capital.

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How Product Managers can be great storytellers

The Startup – Medium

We want to keep our team / stakeholders / management aligned to our vision, reading the same story.Deep understanding and clear articulation of the problem (villain) is the first step in building an inspiring product vision.

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23 Top Stories This Week for Startups, Venture and Angel Investors

Venture Trends Newsletter, Issue #8

In this week’s free issue there are some amazing things to highlight.

  • How #coronavirus will impact VC and Angel Funding
  • Virtual Meetings – how to run a great virtual organization
  • How to Work from Home
  • Venture is like Bridge, not Poker.
  • The investor pitch – what does a VC want?
  • Paul Graham on Jack Dorsey & Twitter
  • The $189 billion Gender Gap in Startup Funding
  • Debt is good if you don’t spend it.

This newsletter gathers together this week’s most interesting content related to the Venture capital ecosystem. I read every day and this is curated from my weekly reading. I help startups tell their story at https://archimedes.studio

I email the newsletter on Saturday, Pacific time, each week. There is little or no commentary included, it is the things I found compelling or interesting.

There is a free version, and a paid version that includes access to content for paying subscribers only. If you are not a subscriber and you want this in your email every Saturday click here.

I accept payment in crypto currencies also. If you pay in crypto please email keith+venturetrends@teare.com so I can provision your subscription.

  • Monthly subscription – here
  • Annual Subscription – here

This week’s paid version is here – Venture Trends for Paid Subscribers

Stories in the paid version this week:

  • How to get US and UK VCs to invest in overseas startups
  • How to be an angel investor
  • How to raise a VC Fund
  • How to make people care about you and your story
  • Case Study: Passed up by 27 VCs and now worth $3 billion
  • The Math that Drives Venture Returns
  • Why Passion is not enough
  • How to think about Churn, Growth and ARR

People need to focus on profitable growth: Veteran Valley investor

CNBC 

People need to focus on profitable growth: Veteran Valley investor, Former Twitter CEO Dick Costolo, former Twitter COO Adam Bain and Sequoia Capital’s Roelof Botha join ‘Fast Money Halftime Report’ to discuss investing in Silicon Valley and Twitter CEO Jack Dorsey’s tenure. READ MORE

Venture firm Sequoia is sounding the alarm about the economy again as coronavirus spreads

CNBC 

The firm advised companies to ask key questions as COVID-19 keeps playing out, including whether they need to cut back on head count and be more thrifty with marketing expenditures.In particular, it outlines questions like “Where could you trim expenses without fundamentally hurting the business?” and suggests taking a close look at head count and customer acquisition costs.

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Meet Hopin, The Platform For Virtual Conferences

100+    Crunchbase News

Virtual conference platform Hopin is the latest to join the roster of businesses benefiting from increased demand for services that facilitate working and networking remotely.People want to go to conferences to meet others, not just to watch presentations, Boufarhat said.

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What It Takes to Run a Great Virtual Meeting

1K    Harvard Business Review 

Minimize presentation length, use an icebreaker to get everyone talking, assign a facilitator, call on participants, and capture real-time feedback via polling systems to make sure all voices are heard.Virtual meetings — even impromptu one’s sparked by fears of a contagion — can be run more effectively, using basic meeting best practices and easy-to-use, inexpensive technology.

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How to Work from Home Without Losing your Mind

2K    Feed: All Latest

Companies like Twitter and Square—which share Jack Dorsey as CEO—have now taken the next logical step of asking employees to work from home whenever possible, and more could potentially follow their lead.(In this metaphor your brain is a horse, go with it.) More important, though, if you don’t get up, take a shower, brush your teeth, get dressed—whatever your morning routine entails when you actually do go into the office—you’re breaking the cardinal rule of working from home: Set boundaries.

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When you pitch an investor, you should understand their motivations and incentives just like when you sell a potential customer.

23    @dunkhippo33 Tweets

How to Keep Your Best People When Evolving From Start-Up to Scale-Up

The Startup – Medium

In his most recent book Start-up, Scale-up, Screw-Up, Jurgen Appelo describes the different stages that he distinguishes within the Business lifecycle of a product or service within an organization*.Formation: Begin building the product and get structure in place; you start to become fully committed to the new business.

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VCs should play bridge

Alex Danco’s Newsletter

This 20 million price, by current convention, means we believe this hand will play out as another X million in GMV run rate”, or whatever it is your signalling for this new round of bidding.But your signal communicates something different, that’s understood by convention among the other players- “By signing this term sheet, we anticipate this company will grow into a 1.5M ARR business by next term sheet” or the like.

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Twitter is not the sort of cash cow a private equity firm could buy and install some talking head MBA to run. There are still features to be developed. The job of CEO requires product vision.

300+    @paulg Tweets 

The hedge fund that wants to get rid of Jack Dorsey as CEO of Twitter should look at the data about what happens to tech companies when their founders are replaced by the sort of people hedge funds choose to run companies.

500+    @paulg Tweets

A Decade-Long Scorecard for Women Raising Venture Capital Shows Progress, But Is It Enough? – Inc.

24    Inc. 

The takeaway: On a percentage basis, all-female teams remain stuck, raising just two to three percent of the total venture capital in eight of the past ten years.During the same timeframe, mixed-gender teams increased their share of venture funding, from 6 percent to 9 percent.

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There’s Still A $189 Billion Gender Gap In Startup Funding—But Efforts To Move The Needle Are Stronger Than Ever – Forbes

100+    Forbes

Female-owned businesses are having a breakthrough: A historic 21 women-led companies, including Guild Education, Rent The Runway and Tala , were unicorns in 2019, earning valuations of $1 billion or more—the highest-ever in a one-year period, and businesses founded by women are delivering higher revenue than male-founded businesses.It’s partnering with the Swiss investment banking company UBS to launch a Project Entrepreneur initiative: a series of summits centered on access to capital for early and growth stage female founders and a curriculum aimed at educating early-stage entrepreneurs about seeking the right investors.

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Debt: Raise It. Just Don’t Spend It.

4    SaaStr 

But we also quietly raised a few million in venture debt, which let me made more hires and keep the engines running without having to raise another round.But they also quietly raised eight figures in venture debt to skip a round.

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Private equity firms raised more money in 2019 than any other previous year

19    Mergers & Acquisitions

“Globally, PE firms raised more money than they have in any prior year, closing on nearly half a trillion dollars with LPs plowing both freshly allocated capital and reinvested distributions into the strategy,” says the report.Private debt fundraising rebounded in 2019, notching the second-highest amount of capital raised annually in the strategy’s history, says the report.

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Help and services to drive startups to $10M ARR

200+    TechCrunch 

Shasta Ventures , a venture capital firm that has raised more than a half-dozen funds in its life, announced a new program this morning designed to help its portfolio companies scale to $10 million of annual recurring revenue (ARR) from $1 million ARR or less.Shasta wants to provide a more structured set of learnings for its portfolio companies to help them reach eight-figure ARR, boosting life expectancy for the startup and the chance of cash-on-cash returns for its LPs.

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Perfection is the Enemy of Productivity

49K    Harvard Business Review

Perfectionists can also develop heuristics, such as “if I have thought about this choice three times, I will make a call and get on with it,” picking areas in which to overdeliver and areas in which meeting expectations is okay, and reviewing commitments to make sure they are still of use.Perfectionists also sometimes imagine there will be catastrophic consequences if they fail to overdeliver; for example, they worry a client won’t want to work with them if they take a day to answer an email request, even if it’s a non-urgent query and they’re happy with everything else.

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Why founders need to stop handing over so much equity

10    Sifted

Like many other venture capital investors, we want the company (essentially the founders plus team) to still own at least 50-60% of the business when we come to invest.“The road to a large outcome can be long (and dilutive), so reducing the skin in the game early reduces incentivisation,” says Irina Haivas, partner at European venture capital firm Atomico.

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Draper declares “golden age” for Eastern European tech – Sifted

100+    Sifted 

Partnering with OTB will give Draper a window into the Central and Eastern Europe (CEE) region where Marcin Hejka, managing partner and cofounder of OTB Ventures, estimates that there are some 100,000 startups that have raised first funding rounds in the last five years and are now reaching the stage of maturity where they can go global.“We are about to see the golden age of Eastern Europe,” says Tim Draper, the billionaire Silicon Valley venture capitalist, who is today announcing the addition of Polish venture capital firm OTB Ventures to his Draper Venture Network.

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Why the CEO Shouldn’t Also Be the Board Chair

16K    Harvard Business Review

Beneath all the reporting on fatally flawed airplane design, serial ten-figure operating losses from big name startups, and Russian-linked presidential election information hackings, there lies an organizational leadership truth from the debacles at Boeing, WeWork, and Facebook: Be wary of giving the CEO job and the board chair job to one person. 

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The Future of Work is Automated

16    Points and Figures

Two of the biggest components of the technology side, at least from my perspective, of the Future of Work are artificial intelligence and RPA.Sean Chou: I’m the CEO and co-founder of Catalytic, a leader in cloud-based automation.

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The Unique Challenges To Scaling Fintechs In Emerging Markets – Forbes

40    Forbes 

Three narratives stood out: emerging market fintech entrepreneurs create inclusive offerings, build multi-faceted solutions, and leverage partners to scale.A recent survey from MIX reinforced my thinking on some of the unique customer and infrastructure challenges that fintechs in emerging markets face.

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Big Corporations Are Rushing Into Venture Capital. That May Not Be a Good Thing. – Barron’s

22    Barron’s 

Start-ups are stoking the flames by developing new technologies and products that are reinventing entire industries, and corporate capital is adding fuel to the market.“If you look at our portfolio, there’s a lot of weird stuff and that’s OK,” says Adler, who worked as a rocket engineer and launched his own start-ups before joining Toyota AI Ventures.

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How Venture Capital Became Intel’s Answer to ‘Massive Disruption’

8    Barron’s

Flanagan, a senior managing director at Intel Capital, says the unit led 75% of the deals it invested in last year, and Intel Capital often takes board seats.While Intel invests side-by-side with traditional venture-capital firms, its preferred position as a lead investor also puts the company in competition with Silicon Valley’s top venture firms when it comes to deal flow.

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45 Top Stories this week for Startups, Venture and Angel Investors

Venture Trends Newsletter, Issue #7

This newsletter gathers together this week’s most interesting content related to the Venture capital ecosystem. I read every day and this is curated from my weekly reading. I help startups tell their story at https://archimedes.studio

I email the newsletter on Saturday, Pacific time, each week. There is little or no commentary included, it is the things I found compelling or interesting.

There is a free version, and a paid version that includes access to content for paying subscribers only. If you are not a subscriber and you want this in your email every Saturday click here.

I accept payment in crypto currencies also. If you pay in crypto please email keith+venturetrends@teare.com so I can provision your subscription.

  • Monthly subscription — here
  • Annual Subscription — here

This week’s paid version is here — Venture Trends for Paid Subscribers

Stories in the paid version this week:

  • How to prepare your startup for a seed round
  • How to present user growth and revenue growth
  • Where do VCs recruit talent?
  • Are Seed rounds getting bigger?
  • Venture Capital as an Algorithm
  • Is your startup ready for Venture funding?

In this week’s free issue there are some amazing things to highlight.

  • How to Raise a Series A Round, from Y Combinator
  • How to design a pitch deck (design not content)
  • Softbank partners try to trap colleague in sex tryst
  • Hard and Easy Startups by Sam Altman
  • Thinking like a screenwriter to attract funding
  • Shopify mints new Billionaires
  • Angel Investing — is it a status symbol?
  • The future of Sequoia — Doug Leone Interview

How to Design a Better Pitch Deck

Y Combinator / Saved by Keith Teare

It’s better, but there’s lots of other text on this slide that’s not optimized for legibility because we’ve allowed the screenshot to be a constraint.The following is an adaption of a presentation I give to YC startups before we have them create their presentation slide decks for Demo Day.

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How to Raise Money — It’s a Journey Not An Event

200+ Steve Blank / Saved by Keith Teare

In the seed round you have an early product and by the end you’ve found product/market fit and understand the scale of what you’re building and the levers that you can pull to accelerate growth.You (think) you have product-market fit with real customers and real revenue and need money to grow and expand.

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YC’s New Guide to Raising a Series A

200+ Y Combinator / Saved by Keith Teare

While we couldn’t work directly with every company in the world trying to raise an A, we realized that publicly distributing our learnings would help all founders.This guide collects nearly everything we’ve learned about Series A’s.

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The Inside Story of How This Startup Turned a 216-Word Pitch Email into a $2.6 Billion Acquisition

First Round / Saved by Keith Teare

Drawing on their unique perspectives as founding CTO , engineering leader , CEO and first investor , respectively, they unpack Looker’s recipe for success from every angle, sharing an inside look at why it worked, how the business was built, and what other startups can learn from its early days.This crew covers all the essential cogs in the startup machine: finding the idea, standing out in the market, experimenting with different models, scaling sales, nailing customer success, and of course, assembling a winning team.

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The Unit Economics of Corporate Venture Capital

Venture Desktop / Saved by Keith Teare

Starting small aligns the venture organization with a corporate’s business units, enables a market-informed strategy to take root and prioritises a focus on developing the right “product” — all of which serve to create a solid foundation upon which to build a venture-enabled growth strategy that persists and drives value over the long term.In a market where the median CVC fund size has exceeded $75m every year since 2014 and the median assets under management (AUM) for active CVC units is edging towards $200m, a recent recommendation by 500 Startups — $50m as the minimum commitment required to build out a “useful” corporate venturing initiative — hardly seems like enough to make an impact.

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20VC: Gusto Co-Founder, Tomer London on Why Most Founders Approach Fundraising With The Wrong Mindset Today, How To Construct A Values/Motivation Alignment Test To Determine The Right Investors For You

The Twenty Minute VC: Venture Capital | Startup Funding | The Pitch / Saved by Keith Teare

With 111 investors on the Gusto cap table, what would Tomer advise founders when it comes to cap table management?4.) What have been Tomer’s biggest learnings when it comes to building a delightful product at scale across different segments?

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Countries that have benefited most from globalisation are the most fearful of change

300+ Graphic detail / Saved by Keith Teare

In the 20 countries surveyed by Ipsos over the past six years, 56% of respondents, on average, think that globalisation is good for their country, up from 49% in 2013.We find that for the 34 countries surveyed by Ipsos, the correlation between growth in GDP per person between 2008 and 2018 and our drawbridge index is 60%.

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How Tesla Sets Itself Apart

7K Harvard Business Review / Saved by Keith Teare

But it’s my experience as a three-time software company CEO that makes it increasingly clear to me that the company’s innovative business model represents an existential threat to the auto industry as a whole.How so?And its soaring market valuation is a clear sign to all automakers that they’ll need to develop more innovative, Tesla-like business models in order to survive.

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Ranked: The Most Innovative Economies in the World

400+ Visual Capitalist / Saved by Keith TeareThe European nation scores in the top five for its manufacturing value-added, high-tech density, and patent activity metrics.Based on available data of these measures, only 105 countries made the final cut for this year’s edition of the index — below are the 60 most innovative economies scored out of 100 points, and the highlights from that list.

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Traditional Late Stage VC is Being Disrupted. Here’s how.

The Startup — Medium / Saved by Keith TeareLate stage venture investing has long held a broad appeal to a wide swath of investor types: from pure-play late stage VC firms, to corporates and strategics, to non-traditional types such as Sovereign Wealth Funds (SWFs), family offices and financial investors typically known for focusing on other asset classes, such as hedge funds and real estate.Finally, and perhaps most controversially, there’s been a trend in recent years of syndicates of seed and early stage investors choosing to continue funding their breakout companies themselves rather than, as they once did, taking their best companies to late stage institutional firms when growth stage capital is required.

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Why venture capital needs to stop hunting unicorns

GrowthBusiness.co.uk / Saved by Keith Teare

The numbers initially look bleak for early stage start-ups: there were 1,648 VC investments in the UK in 2019, but most of them were driven by later stage deals in the healthcare and fintech sectors.Is investment in early and seed stage businesses increasingly falling away in favour of later stage deals?

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Keith Rabois Interviewed by Dan Primack

Upfront Ventures / Saved by Keith Teare

Keith Rabois of Founders Fund sits down with Dan Primack of Axios to discuss making big bets in venture, how Founders Fund operates as a partnership with unique perspectives, and his views on the upcoming election cycle.

Former Apple Ad Guru Becomes ‘Storyteller’ for Tech Founders

The Information / Saved by Keith Teare

James Vincent helped Steve Jobs come up with some of Apple’s most memorable advertisements, from its Mac versus PC commercials to an iPod campaign featuring dancing silhouettes. More recently, Vincent has turned himself into a brand whisperer to some of the most prominent companies in tech and media, including Snap, Vice Media and Airbnb.

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London-based Gyana raises $3.9M for a no-code approach to data science

300+ Fundings & Exits — TechCrunch / Saved by Keith Teare

Coding and other computer science expertise remain some of the more important skills that a person can have in the working world today, but in the last few years, we have also seen a big rise in a new generation of tools providing an alternative way of reaping the fruits of technology: “no-code” software, which lets anyone — technical or non-technical — build apps, games, AI-based chatbots, and other products that used to be the exclusive terrain of engineers and computer scientists.Das said they have also identified this, and so while currently Gyana already offers some tutorials and helper tools within the app to nudge the user along, the plan is to eventually bring in a large variety of datasets for people to get started with, and also to develop a more intuitive way to “read” the basics of the files in order to figure out what kinds of data inquiries a person is most likely to want to make.

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The Venture Capital Math Problem Revisited (aka How Could You Be So Wrong?)

28 VC & Technology — AVC / Saved by Keith Teare

The venture capital business has been raising north of $50bn per year for much of the last decade and so far, the returns continue to look quite good.In that post, I argued that the venture capital business could not sustain more than $20bn a year of new capital coming into it and continue to produce good returns to the investors in VC funds.

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Now this is partnership dynamics: Mr. Benedetti sent a team to Tokyo to set up the so-called honey trap, in which one or more women would lure Mr. Arora to a hotel room rigged with cameras in an attempt to obtain compromising images

500+ @annimaniac Tweets / Saved by Keith Teare

Investing in Roblox

30 Andreessen Horowitz / Saved by Keith Teare

Over 2 million developers are actively creating on the platform, and many are building serious businesses that exist entirely within the world of Roblox.Because all they need to bring is a great idea, Roblox empowers their community to create the games — really, immersive worlds — that they want to play in, especially as the company continues to invest in more advanced play and in becoming the premier graphics engine.

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Why Your Startup’s Org Chart is Limiting Your Growth

Tomasz Tunguz / Saved by Keith Teare

The reason middle managers are key is they cut the span and control and defray the recruiting responsibility, freeing leaders to spend time running the company.As a startup evolves from product market fit to scaling, organizational design becomes an executive imperative.

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Want To Attract Venture Capital? Think Like A Screenwriter.

13 Forbes / Saved by Keith Teare

“People need to be more like Tim,” says Van Espahbodi, co-founder and managing partner of Starburst, the largest aerospace innovation hub for startups.Tim Ellis Has Taken Rocket Company Relativity to New Heights With Vision and Savvy Storytelling

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Hard Startups

500+ Sam Altman / Saved by Keith Teare

Easy startups are easy to start but hard to make successful. The most counterintuitive secret about startups is that it’s often easier to succeed with a hard startup than an easy one.

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London venture capital leads Europe as it doubles funding

11 City A.M. / Saved by Keith Teare

London led venture capital deals across Europe last year as it doubled its funding and the amount raised in the UK hit a record high.In 2019, London-based companies more than doubled the amount of venture capital raised from £2.5bn in 2018 to £5.6bn, according to research by Refinitiv.

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Crypto-friendly Revolut is now UK’s most valuable FinTech company

39 Decrypt / Saved by Keith Teare

Revolut, a so-called “challenger” bank that operates out of London’s Canary Wharf, has raised $500 million in a Series D funding round, bringing its total valuation to $5.5 billion.Some, like Revolut, as well as upcoming challenger bank Ziglu (founded by a former co-founder of Starling), let customers buy cryptocurrencies, such as Bitcoin and Ethereum , within their apps.

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Spending Time on an Advisory Board Is A Waste

31 Points and Figures / Saved by Keith Teare

If you read the thread, you will see a lot of opinions on advisory boards and most aren’t good. This may be irrational, but startup companies having well-known non-entrepreneurs on their ‘advisory’ board is always a red flag to me

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RT @edsim: 1/ So you’re a founder having just closed your seed and Series A firms are banging down your doors. Please don’t get false signals

26 @robgo Tweets / Saved by Keith Teare

Private Equity and VC Managers ‘Amazed at How Damn Easy It is to Make Money’

17 Institutional Investor / Saved by Keith Teare

Ninety-five percent of investment professionals, advisors, and vendors reported self-confidence in a new survey from Semaphore, an advisory firm hired by limited partners to take over troubled private equity, venture capital, and hedge funds.Respondents felt more charitably toward the CEOs and managing partners of their competitors, with 69 percent expressing confidence in their abilities.

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Stanford’s Strebulaev: Tech Unicorns’ Valuations Are Fairy Tales

Poets&Quants / Saved by Keith Teare

Strebulaev of the Stanford Graduate School of Business, finds that market values of many of these unicorns are, well, mythical.Strebulaev of the Stanford Graduate School of Business is Poets&Quants’ Professor of the Week

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Investors want to tranche a $1M seed round in 3 stages. Can I protect against them freezing remaining installments?

SaaStr / Saved by Keith Teare

Q: Investors want to tranche a $1M seed round in 3 stages.The post Investors want to tranche a $1M seed round in 3 stages.

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The Untold History of Facebook’s Most Controversial Growth Tool

Medium / Saved by Keith Teare

(Zuckerberg did not mention his early cogitations in the Book of Change about dark profiles.) In a more elaborate explanation provided later, Facebook said, “We do not create profiles for non-Facebook users,” though it also says it keeps certain data, like what device and operating system version a nonuser has, for things like “optimizing registration flow for the specific device” should someone decide to join.Exposing potential friends is a way to improve a member’s experience; it increases the chances they will share more, and, most of all, it makes people less likely to bail on Facebook.

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$19.8B Invested In Agri-FoodTech In 2019 According To AgFunder

28 Crunchbase News / Saved by Keith Teare

The largest growth year over year in funding includes meat alternatives, indoor farming, robotic food delivery and cloud kitchens.The largest sector decline is food delivery by 56 percent year over year.

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Venture capital investor Lakestar raises $735 mln for Europe bets

Reuters / Saved by Keith Teare

BERLIN, Feb 25 (Reuters) — Venture capital investor Lakestar said on Tuesday it had raised a total of $735 million for early- and growth stage funds that will invest mainly in Europe, while adding new faces to its top leadership team.Venture capital firm Atomico said last week it had closed its fifth fund with $820 million to invest in early-stage technology companies in Europe, saying the region had come of age in terms of innovation and opportunity.

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Shopify’s Soaring Stock Creates Fistful Of New Billionaires

100+ Forbes / Saved by Keith Teare

The newest additions to the angel investor Hall of Fame are a little-known husband and wife from Toronto, who are now each worth $1 billion thanks to a small investment they made 13 years ago in Shopify, a software platform that helps small and mid-sized businesses launch and manage their online stores.John Phillips, a 68-year-old retired lawyer and his wife Dr. Cathy Phillips, a psychologist who specializes in helping cancer patients deal with stress, have turned their $750,000 investment in Shopify into a $2 billion fortune simply by sitting on its stock.

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For Silicon Valley tech tycoons, angel investing is a status symbol

Los Angeles Times / Saved by Keith Teare

“They tend to take more risk with angel portfolios and don’t really track them or worry about them,” says China, whose company is part of Silicon Valley Bank, a big lender to start-ups and venture capital funds.Jennifer Forster, a partner at San Francisco-based wealth manager Epiq Capital Group, says investors recently have been able to sell shares at high prices in secondary markets, allowing them to cash out significant portions of their stakes.

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If there’s truly an extended downturn, know most VCs have 3 categories for their portfolio

1. things going great, let’s double down

2. too early to tell but promising, let’s make current capital last longer

3. sorry friend, you’re on your own know which category you’re in

79 @hunterwalk Tweets

Crypto-friendly fintech firm Revolut raises $500M at a $5.5B valuation

The Block / Saved by Keith Teare“We’re on a mission to build a global financial platform — a single app where our customers can manage all of their daily finances, and this investment demonstrates investor confidence in our business model,” said Revolut founder and CEO, Nik Storonsky.Crypto-friendly investing app provider Revolut has raised $500 million in a Series D round that values it at $5.5 billion.

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The Strategic Importance of Competition

12 Tomasz Tunguz / Saved by Keith Teare

Sellers and marketers need to spend millions of dollars to create a category.But it’s far more common to see a collection of founders band together and pool their capital to create the category.

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20VC: Vinod Khosla on What Venture Assistance Really Means, Why Many VCs Are Not Qualified To Advise Founders & Why Startups Can Innovate So Much Faster Than Incumbents

The Twenty Minute VC: Venture Capital | Startup Funding | The Pitch / Saved by Keith Teare1.) How Vinod made his way into the world of startups with the founding of Daisy and Sun Microsystems and how that led to his entry into the world of venture with KPCB and ultimately founding Khosla Ventures?How does Vinod allocate his time to drive as much value for the portfolio as possible?

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The 14 most active VCs in European fintech revealed

30 Sifted / Saved by Keith Teare

The data shows that the main early-stage financiers come from venture capital firms in the UK and Germany; incidentally, the countries that also receive the most fintech funding overall.The following ranking reveals the most-active venture capital firms in early-stage European fintechs between 2015 and 2019.

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Startup loans for marketing money: A threat to VC?

30 Sifted / Saved by Keith Teare

Recently, a number of founders have eschewed venture capital funds and chosen different paths for themselves and their companies.Marketing advances pose a challenge to the economics of venture capital firms that may well be near, if not present.

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As the Start-Up Boom Deflates, Tech Is Humbled

4K The New York Times / Saved by Keith Teare

Their rise was propelled by a wave of investor money — about $763 billion washed into start-ups in the United States over the last decade — that also fueled the growth of young companies in delivery, cannabis, real estate and direct-to-consumer goods.Investments in young companies have fallen, with 2,215 start-ups raising money in the United States in the last three months of 2019, the fewest since late 2016, according to the National Venture Capital Association and PitchBook, which track start-ups.

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Interview with Doug Leone from @sequoia on firms history and future

39 @eladgil Tweets / Saved by Keith Teare

Doug: We’re going to talk a lot about Sequoia during your time and its evolution, but before we do, we want to ask you to tell your story a little bit.

David: Doug is the global managing partner of Sequoia Capital, in charge of overseeing the firm’s many diverse businesses, which we will get into, from seed to global growth investing across the US, India, and China.

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Do You Consider Yourself a Leader or a Manager? Here’s Why Both Are Critical to Your Bottom Line

The Startup — Medium / Saved by Keith Teare

But in a follow-up article published in 1990, What Leaders Really Do , Harvard Business School professor John Kotter makes that case that, while management and leadership are different, they’re both extremely important.Managers focus on organizing and staffing, while leaders focus on “aligning people” (which basically means communicating a new idea and helping them organize in a way that makes sense)

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I had never heard the term “far analogies” before, but found it immediately compelling. KH argued that the best & the brightest were able to borrow ideas from fields that were further away from their own craft. He even argued this might be a tier of intelligence, & gave examples.

@bgurley Tweets

When Entrepreneurial Passion Backfires — Harvard Business Review

Harvard Business Review

Researchers surveyed 107 tech teams participating in an accelerator program, and found that diversity of passion among individual team members — in terms of how passionate they are, and what they’re passionate about — had a negative relationship with team performance, due to conflicting emotions and identities within the team.By conducting surveys with 107 tech teams participating in an accelerator program, we found that diversity of passion among individual team members — in terms of how passionate they are, and what they’re passionate about — had a negative relationship with team performance, due to conflicting emotions and identities within the team.

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RT @dksf: “He’s a conviction investor, not an indexer!” Was doing a reference call for a founder about @tonsing and that was just what came out

@eladgil Tweets

Authentic Demand’s Role in Startup Success

David Cummings on Startups

When we started Pardot , we believed there was authentic demand, but we didn’t really know.The most successful entrepreneurs uncover authentic demand in a fast-growing market and deliver a stellar product.

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Which Markets Are the Most And Least Served by Seed Investors?

About a year ago, my partner David Beisel talked about how seed fundraising is no longer a local game , and that the best entrepreneurs seek out the best investors for them outside of their home market. That being said, it’s much easier to put a seed round together when you have a local lead who can help catalyze the round.

Source: Which Markets Are the Most And Least Served by Seed Investors?