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Venture Capital News
Medium
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Pre- vs Post-Money: How Valuation Framing Impacts Equity, Dilution, and Control
- Valuation terms are crucial for founders and investors as they impact ownership, control, and influence in a company.
- Understanding pre-money and post-money valuations is essential in fundraising rounds as it determines equity distribution.
- Dilution is a natural part of startup financing that founders need to plan for to ensure proper ownership alignment with investors.
- Convertible notes and SAFEs offer flexibility in fundraising but founders must be mindful of how they impact equity ownership over time.
- Structure in deals is crucial for managing risk, rewards, and decision-making, with terms like liquidation preferences and anti-dilution clauses playing significant roles.
- Clarity and alignment in valuation discussions are key to avoiding misunderstandings that can lead to long-term consequences in ownership and control.
- Valuation discussions should involve thorough modeling and stress-testing of cap tables to anticipate dilution effects in future rounds.
- Experienced VCs focus on structuring deals that support long-term alignment with founding teams, reflecting real risk and allowing room for growth.
- Anchor valuation discussions on fundamentals like revenue trajectory, founder quality, and unit economics rather than solely on market dynamics.
- Balancing ownership stake with valuation is crucial to ensure future fundraising rounds are not unnecessarily difficult and team motivation is preserved.
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Medium
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104
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Beginner’s Guide to Deal Sourcing
- Effective deal sourcing in venture capital involves defining a clear investment thesis to filter opportunities that align with your strategy.
- Investors should focus on sectors where they have expertise and align with emerging market trends for significant growth potential.
- A dynamic investment thesis should be refined over time based on market learnings and should have clear criteria for evaluating deals.
- Investors should actively seek out opportunities by specializing in specific sectors, utilizing data-driven tools, and engaging in structured sourcing strategies.
- Networking plays a crucial role in deal flow, with warm introductions, industry events, and online platforms aiding in the identification of high-quality opportunities.
- Proactive deal sourcing involves monitoring industry trends, conducting thorough due diligence, and leveraging data analytics tools to identify promising startups.
- Utilizing platforms like AngelList, Crunchbase, PitchBook, CB Insights, and Mattermark can streamline the deal sourcing process and provide valuable insights.
- Investors can diversify their deal flow by engaging with universities, research labs, startup accelerators, and attending events like hackathons and demo days.
- Maintaining consistent follow-ups and value exchange in relationships is essential for turning introductions into successful deals.
- Structured deal sourcing includes screening opportunities based on predefined criteria, conducting thorough due diligence, and making data-backed investment decisions.
- Regular review and adaptation of sourcing strategies, along with the use of CRM tools, ensure that no potential opportunity is missed and the deal flow remains effective.
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Medium
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22
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XRC Portfolio Success: Nectar Social Raises $10.6M to Bridge the Social-to-Revenue Gap
- Nectar Social, a startup founded by Misbah and Farah Uraizee, raised $10.6M to address challenges for brands in converting attention into revenue in the new landscape of commerce.
- The company's AI-powered platform focuses on social management, attributes revenue to organic engagement, and scales personalized direct message conversations to bridge the social-to-revenue gap.
- XRC Ventures, where Nectar is a portfolio company, believes in creating value through strategic connections and opportunities rather than just providing capital.
- Nectar Social is partnering with disruptor brands in beauty, wellness, food & beverage, and lifestyle sectors, showcasing a successful strategy for early-stage investing and technology platform utilization.
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Saastr
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The Death of “AI Won’t Touch Enterprise Sales”: How ChatGPT’s Record Mode Is The Start of Everything Changing
- The article discusses the impact of ChatGPT's Record Mode on enterprise sales, refuting previous skepticism about AI's influence on in-person sales interactions.
- ChatGPT Record can analyze all types of sales meetings discreetly, potentially revolutionizing the way sales conversations are recorded and leveraged.
- The article emphasizes that ubiquity in technology adoption can lead to exponential growth in behavior change compared to mere feature enhancements.
- The democratization of AI-powered sales intelligence is highlighted as a game-changer, leveling the playing field for businesses of all sizes.
- The three phases of AI-powered sales evolution are outlined, progressing from a passive observer to a strategic advisor and eventually a sales leader role for AI.
- The article emphasizes the importance of embracing AI in sales processes to stay competitive in the evolving landscape of enterprise sales.
- Winners in this new competitive dynamic will be those who integrate conversation data effectively and leverage AI insights to enhance sales performance.
- The necessity of implementing AI as a fundamental shift in sales conversations is stressed, cautioning against treating it as just another tool.
- Privacy and trust considerations regarding AI's role in sales conversations are addressed, highlighting the importance of transparent and ethical usage of AI technology.
- Ultimately, the article urges sales teams to adapt to AI advancements in sales or risk falling behind in a landscape where AI-enhanced interactions are becoming the norm.
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Saastr
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Why Racing to $100M ARR Doesn’t Actually Predict Generational Outcomes from Scale Venture Partners
- Scale Venture Partners' data reveals no meaningful correlation between speed to $100M ARR and ultimate enterprise value.
- Companies that took longer to reach $100M often achieved higher valuations than fast-scaling counterparts.
- Market obsesses over AI companies scaling rapidly to $100M ARR, leading to FOMO-driven investments and founder anxiety.
- Reaching $100M ARR is significant but represents only 1% of a potential $10B outcome for truly generational businesses.
- Successful enterprise software companies focused on sustainable unit economics, deep customer relationships, platform strategies, and category creation.
- Multiple valid playbooks exist for creating generational outcomes, including the Blitzscaler Playbook and the Steady Builder Playbook.
- Founders are advised to focus on fundamentals, play their own game, think long-term, and prioritize quality of growth over speed.
- For VCs, the data suggests considering companies with strong unit economics and market timing, not just focusing on growth rate.
- Scaling quickly to $100M ARR is impressive, but growth quality and sustainability matter more in the long run.
- Endurance and sustainable growth are crucial for building lasting, valuable businesses in the enterprise software landscape.
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Saastr
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How The Smartest Founders Are Already Winning with AI: SaaStr on My First Million Podcast
- AI advancements in B2B are revolutionizing various aspects such as advisory services, therapy, and coaching by providing emotional safety and anonymity.
- Shift towards AI-driven interfaces like ChatGPT is predicted to render traditional B2B app interfaces obsolete, simplifying usage and navigation.
- AI tools are enabling rapid product creation, making zero-to-one million in ARR more achievable but also leading to increased competition and revenue instability beyond $100 million.
- AI is replacing traditional roles in businesses, leading to predictions of significant job disruptions and mass unemployment in knowledge work.
- The retention of AI talent poses a major challenge for companies, requiring new strategies to compete for and retain skilled AI professionals.
- There is a cultural shift towards new work expectations, with the younger generation showing preferences for non-traditional employment options.
- AI is becoming integral in content creation, transforming traditional creative roles and necessitating collaboration with AI or facing obsolescence.
- VC investment strategies are evolving towards seeking $100 billion outcomes per fund, heightening the need for high-value investments to generate significant returns.
- The uncertainty of AI applications and opportunities presents both challenges and opportunities, requiring strategic decisions to capitalize on the potential.
- AI's transformative impact extends from individual careers to venture capital, emphasizing the need to embrace AI collaboration for future success in a changing landscape.
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Eu-Startups
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From €12 billion to €520 billion: EU-funded startups show massive ROI – but face scaling gap
- A report on startups backed by the EU's Framework Programmes reveals that with just €12 billion in public support, over 13,600 startups have collectively generated €520 billion in enterprise value.
- EU-backed startups are delivering high impact, particularly in areas like AI, biotech, quantum, and climate tech, showcasing the need to scale successful initiatives.
- EU support in a startup's history is viewed positively by investors, aiding in de-risking innovation and attracting further investment.
- Public programmes, like the European Innovation Council (EIC), are helping startups develop breakthrough innovations and strengthen Europe's technological sovereignty.
- Despite success in technical depth, many EU-backed startups face challenges in scaling beyond Series A and require more than capital to advance.
- Countries like the Czech Republic are leveraging EU alignment to excel in deep tech and compete globally, showing success in cybersecurity, AI, quantum computing, and medtech.
- Founders are advised to align their technology with the right readiness level, match products with EU missions, and create a value proposition combining business case with public impact for success.
- Recommendations include establishing faster startup-specific funding tracks, improving equity disbursement clarity, enhancing university-to-startup spinout support, and scaling visibility platforms for startup-investor matchmaking.
- The key challenge lies in connecting EU-backed startups to private capital effectively to ensure sustainable growth and global competitiveness.
- To compete globally, Europe must fund earlier, move faster, and strengthen the bridge between public support and private growth, as highlighted in the report.
- The report offers valuable insights on how EU-backed startups are advancing critical sectors and provides clear takeaways for founders, investors, policymakers, and corporates.
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VC Cafe
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Why I still take cold pitches (And You Shouldn’t Be Afraid to Send One)
- Cold pitches can be successful in securing investments if they are clear, compelling, and thoughtful.
- Despite the low response rate, the best founders with clarity of vision and storytelling skills can break through with cold pitches.
- Key elements of a successful cold pitch include problem definition, unique insight, evidence of execution, grounded vision, and the right tone.
- Common mistakes to avoid in a cold pitch include geographic mismatch, stage disconnect, sector blindness, portfolio conflicts, and lack of personalization.
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Eu-Startups
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EU-Startups Podcast | Episode 120: Antonia Eneh, CEO of Wave Ventures
- Antonia Eneh, CEO of Wave Ventures, a Gen Z-led VC fund, discusses Wave III: their new fund to invest in ambitious Gen Z founders.
- The podcast explores what drives Gen Z entrepreneurs: their purpose-driven mindset, disruptive vision, and desire to create the world they envision.
- Wave Ventures' personalized investment approach, emphasizing relationships over ideas, reflects a changing VC landscape embracing diversity and creativity.
- Key takeaways include Gen Z focusing on values, purpose motivating founders, Wave Ventures prioritizing people over metrics, and the importance of collaboration between VCs and founders.
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Medium
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Proptech rising to the challenge in MENA’s ambitious transformation
- The UAE and Saudi Arabia have significantly reduced their reliance on oil in their economies over the years, leading to a shift towards construction, infrastructure, and real estate development.
- MENA faces a shortage of skilled workforce in the built environment industry, with estimates suggesting a shortage of 663,000 skilled workers in Saudi Arabia by 2030, resulting in around USD 207 billion opportunity cost.
- The MENA region is embracing proptech solutions to meet the challenges in the built environment sector, with advancements in genAi technology playing a key role in increasing workforce efficiencies and productivity.
- Initiatives like The Dubai PropTech Hub are driving the adoption of proptech in the MENA region, with a focus on supporting startups and enabling legacy players to scale operations despite talent constraints.
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Insider
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I'm a founder and single parent. Here are 5 ways I stay on top of work and my kids, from shared calendars to outsourcing help.
- Carrie Colbert, founder of Curate Capital, shares her experience balancing work and parenting as a single parent.
- After having children at 40 and 43, she shifted her focus to prioritize work and parenting over social activities.
- Colbert emphasizes the importance of outsourcing help, utilizing shared calendars, and setting clear boundaries to manage her responsibilities.
- She credits her nanny and cleaner for assisting with household tasks, allowing her to focus on quality time with her kids.
- Flexibility in her work schedule enables Colbert to align her professional commitments with her children's needs and activities.
- By delegating responsibilities to a trusted team and prioritizing self-care through exercise and meditation, she maintains a balance between work and parenting.
- Colbert integrates her children into her hobbies like golf and crafts, adapting to the season of life where personal time is limited.
- She emphasizes setting realistic expectations and focusing on daily progress rather than perfection to manage her dual roles effectively.
- Through a strategic approach and support system, Colbert navigates the challenges of single parenthood while building her business.
- Her story serves as inspiration for other single parents striving to find harmony between work and family life.
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Saastr
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36
The New Rules of AI Investing: Why Speed Beats Strategy and Labor Budget Is the New Software Budget with Google Cloud’s COO
- The pace of AI advancement has shattered traditional frameworks for tech adoption and competitive advantages, emphasizing speed and execution over strategy.
- AI investment now prioritizes quick execution and adaptability in rapidly changing markets, where agility trumps traditional moats.
- A shift from software to labor budget signals a $10 trillion opportunity, with AI applications replacing human labor and expanding tech market size.
- Large enterprises are leading AI adoption due to immediate labor cost savings, challenging the usual startup-to-enterprise adoption flow.
- An openness to various AI models is favored over a single dominant model, focusing on model diversity for long-term success.
- Startups should target areas Google avoids, like vertical markets and specialized solutions, to capitalize on strategic opportunities.
- AI enables startups to achieve unprecedented scale with minimal resources, reshaping the economics of entrepreneurship.
- Conversational data and context are crucial for advanced AI agents, emphasizing the importance of capturing rich data for AI applications.
- The future success in AI lies in prioritizing speed, labor replacement, model diversity, and niche specialization for CEOs, founders, and investors.
- Healthcare leads AI adoption due to labor cost benefits, while VCs proactively seek out promising AI startups, and personalization emerges as a key AI application frontier.
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Saastr
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90
Dear SaaStr: What Are A Few Top Tips to Hiring The Right First VP of Sales?
- Hiring a great VP of Sales is crucial for scaling revenue and team successfully.
- Key tips for hiring the right first VP of Sales include not hiring too early, focusing on recruiting ability, avoiding candidates from big-name companies, pre-recruiting and taking time, testing for realism and honesty, and looking for player-coach skills early on.
- Timing is essential, and founders should ensure they have a solid sales process and some traction before hiring a VP of Sales.
- It is important to watch for red flags early on in the hiring process to avoid potential issues down the line.
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Medium
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262
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Free Accredited Investor Email List
- Abstract is a venture capital firm based in San Francisco, founded on Aug 1, 2016, with 1-10 employees. They can be reached at abstractvc.com and their key personnel include Ramtin Naimi, the Founder and General Partner, and Alex Davidov, the General Partner.
- Accomplice, a seed-led venture capital firm primarily investing in technology startups, was founded on Mar 1, 2015, with 11-50 employees. Their website is accomplice.co, and key personnel include Frank Castellucci, the General Counsel, and Sam Clemens, a Partner.
- Alpha Impact 8, founded in July 2017, focuses on building financial infrastructure for underserved populations in the US and LATAM. They have 1-10 employees, can be reached at ai8ventures.com, and their General Partners are Dion DeLof and Carlos Ochoa.
- AME Cloud Ventures, investing in seed to later-stage tech companies, was founded in 2012 and has 11-50 employees. They can be contacted at amecloudventures.com and their Managing Directors are Nick Adam and Jeff Chung.
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TechCrunch
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235
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North America takes the bulk of AI VC investments, despite tough political environment
- North America continues to dominate AI venture capital investments, despite a challenging political atmosphere.
- Between February and May of this year, VCs invested $69.7 billion in North America-based AI startups, compared to $6.4 billion in European AI ventures.
- In contrast, Asia-based AI startups received $3 billion in investments during the same period, facing challenges such as export controls on AI chips.
- Despite uncertain policies under President Trump and increased funding commitments from Europe, North America maintains its stronghold on AI funding, with 86.2% of global VC investments in AI so far in 2025.
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