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Venture Capital News
Pymnts
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Insight Partners Prepares to Close $10 Billion Venture Capital Fund
- Venture capital firm Insight Partners is preparing to close a $10 billion-plus fund.
- The fund is around half the amount initially planned, but a sign that tech investors are returning to the VC market.
- The VC market has been on a downward trend since 2022, but now investors are making their way back.
- Insight recently had two of its portfolio companies acquired, with Mastercard purchasing Recorded Future for $2.65 billion and Salesforce buying Own for $1.9 billion.
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Medium
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Ratio Mastery — Part IV
- Profitability ratios show how efficiently a company generates income from its operations, assets, and shareholders' equity.
- The Gross Profit Margin measures how efficiently a company converts revenue into profit after accounting for direct costs.
- The Operating Profit Margin measures how much profit a company makes from its business operations after covering both COGS and operating expenses.
- The EBITDA Margin measures a company's profitability before accounting for interest, taxes, depreciation, and amortization.
- The Net Profit Margin measures the percentage of revenue left after all expenses, including COGS, operating expenses, interest, taxes, and any other non-operational costs, have been deducted.
- The Return on Assets (ROA) ratio measures how efficiently a company uses its total assets to generate profit.
- The Return on Equity (ROE) ratio measures how efficiently a company uses its shareholders' equity to generate profit.
- The Return on Invested Capital (ROIC) measures how efficiently a company uses all forms of invested capital — both debt and equity — to generate profit.
- High profitability ratios demonstrate operational efficiency and financial discipline, making a company more attractive for VCs seeking high returns with controlled risk.
- Low profitability ratios can raise red flags for VCs and may indicate a company has potential issues with cost control, operational inefficiency, or a business model that may not be scalable.
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Medium
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The Startup Funding Landscape in January 2024: AI Dominance, Sustainability, and Global Innovation
- Artificial Intelligence (AI) remains a dominant force in the startup funding landscape, attracting significant investment across diverse sectors.
- Startups focusing on sustainable solutions are capturing investor attention and capital, particularly in the green tech sector.
- The fintech revolution continues, with a shift towards specialized solutions addressing specific market needs.
- The global nature of innovation is evident, with significant funding rounds occurring worldwide.
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Medium
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Metabase Q Secures $11 Million to Boost Cybersecurity Automation and Threat Detection
- Metabase Q, a cybersecurity company, has raised $11 million in an extension of its Series A funding round.
- The funding was led by SYN Ventures, bringing Metabase Q's total funding to approximately $23.5 million.
- Metabase Q focuses on automating security processes and enhancing threat detection for businesses.
- With this funding, Metabase Q plans to further develop its cybersecurity solutions.
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Medium
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Centricity Secures $20 Million to Transform Investment Access in India
- Centricity, a New Delhi-based startup, has raised $20 million in a seed round to transform investment access in India.
- The company offers a digital platform that simplifies investment access for individuals in underserved markets.
- Centricity's all-in-one platform aims to empower new and experienced investors to make smarter financial decisions.
- The funding will support Centricity's growth plans and help them provide better resources and tools for investors.
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Medium
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The Ultimate Tool for KOLs and Community VCs: Automate Fundraising and Unlock Liquidity with…
- Liquify automates fundraising, delivers tradable proof-of-investment tokens, and unlocks liquidity for both KOLs and community VCs.
- Smart contracts manage everything from token distribution to vesting, giving users immediate liquidity, de-risking strategies, and automated processes.
- KOLs and community VCs can offer their communities tradable tokens as proof of investment, giving users the freedom to buy, sell, or trade those tokens as they please for instant liquidity.
- Investors can sell portions of their tokens long before the vesting period ends, giving them control over their risk exposure and preventing long-term positions without liquidity.
- Liquify benefits both KOLs and community VCs by providing early liquidity and simplifying capital management through automation.
- Smart contracts handle every detail, from token distribution to vesting, giving users more time to focus on strategy rather than spreadsheets.
- Liquify ensures transparency, eliminating the need for middlemen and providing security and trust for investors.
- Community VCs can build trust with their investors by providing transparency and security through decentralization.
- Liquify not only solves problems in fundraising and liquidity but also gives KOLs and community VCs the freedom to focus on growing their influence and their communities.
- Liquify is now open for testnet and is a game-changer that's reshaping how projects are funded and communities are engaged in the world of crypto.
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Saastr
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Dear SaaStr: Should I Publish My Pricing?
- Transparent pricing has many advantages such as simplifying the sales process, allowing prospects to do their own discovery work, and providing pricing context.
- However, transparent pricing may leave money on the table, especially in bigger deals, and can confuse things in the enterprise.
- As a company scales and adds an upmarket sales team, they may opt for less transparency at the potential cost of some friction in the sales process for smaller deals.
- In the early stages, it is recommended to start with transparent, published pricing to reduce friction in the sales process.
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Medium
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Indian Startup Funding Drops 61% YoY to $128 Million This Week
- Indian startup funding dropped 61% YoY to $128 million this week.
- This week witnessed strategic investments by consistent players in the venture capital landscape.
- The funding landscape was dominated by early-stage investments, reflecting a strong interest in nurturing nascent startups.
- The funding trends throughout 2024 have shown significant fluctuations, indicating the dynamic nature of the startup ecosystem.
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TheStartupMag
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6 Ways to Secure Funding for Your Startup
- Establish your funding goals by categorizing your expenditures into pre-launch and post-launch expenses.
- Explore various financial options such as venture capitalists, angel investors, government grants, crowdfunding, and loans.
- Decide on the right funding source by researching and evaluating your long-term targets and financial situation.
- Consider self-funding or business bootstrapping as a viable option to maintain complete control of your company.
- Align your business goals with your target capital to attract investors who are interested in startups with defined objectives.
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Medium
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Hey U.S. Policymakers: Want a Trillion-Dollar Bonus?
- In 2023, women-founded startups received only 2.1% of all VC funding in the United States.
- Globally, women-led companies captured about 2.3% of total VC funding in 2023.
- Mixed-gender teams received about 15.6% of total VC funding in 2023.
- Startups founded and co-founded by women generate 10% more revenue over a five-year period than those founded by men.
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Medium
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3 Rubik’s Cube Lessons for VCs to Spot Market Patterns, Make Fast Decisions, and Win
- Successful VCs recognize recurring market trends that give them an edge in identifying the next big opportunity.
- In venture capital, the speed at which you assess and move on a deal can mean the difference between investing early in the next unicorn or watching from the sidelines.
- Winning in venture capital means anticipating market shifts before they happen and being steps ahead of other investors.
- Developing strategic foresight turns you into a kingmaker in the startup ecosystem.
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Medium
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Can Growth Metrics of Portfolio Companies Be Incorporated in Traditional VC Fund Performance…
- Tambi Jalouqa, Managing Partner at Propeller, proposed a new portfolio metric called TARRPI to capture the performance of companies within a VC portfolio, particularly in sectors like SaaS
- TARRPI method does not account for how high ARR growth translates into actual cash returns for LPs.
- Innovation in proposed methodology is particularly valuable in regards to focused growth models fueled by ARR.
- Inspired by TARRPI, a variation, labeled Growth Adjusted TVPI (GA-TVPI), integrates traditional elements with growth metrics to produce a comprehensive view of fund performance.
- GA-TVPI adjusts the unrealized portion of TVPI to reflect growth rates of key performance indicators (KPIs) to get a clearer picture of the remaining portfolio.
- GA-TVPI can serve as a complementary metric that offers additional insights into a portfolio’s growth potential.
- GA-TVPI does offer additional insights into the risks and effects of future growth, but like TARRPI does not necessarily capture what ultimately matters to LPs.
- VC’s use a variety of metrics to build a comprehensive view, including Traditional Metrics, Supplementary Metrics, Operational Metrics at the Company Level, and Scenario Analysis and Sensitivity Testing.
- By keeping the conversation open and collaboratively refining these ideas, we can continue to evolve how we evaluate VC fund performance.
- TARRPI and GA-TVPI methodology are valuable components of a comprehensive metric evaluation framework that can provide investors with valuable insights.
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Medium
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Leading with Dharma: How Purpose Shapes Smart Investments
- Dharma can mean something different for each individual, reflecting their unique strengths and passions.
- Discovering one's Dharma takes time and patience, as it involves understanding oneself deeply and living authentically.
- Aligning with one's Dharma in the world of investments and startups means prioritizing long-term value creation over short-term gains.
- Investing time and energy into meaningful endeavors that align with our purpose leads to a more purposeful and fulfilling life.
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Medium
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Private markets investing | Fund performance metrics
- Fund performance metrics are crucial for active investors and fundraisers in the private markets.
- Metrics like IRR, MOIC, DPI, and RVPI are commonly used to assess fund performance.
- IRR (Internal Rate of Return) measures annualized growth generated by the firm.
- MOIC (Multiple of Invested Capital) calculates the fund's value relative to its cost of investments.
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Medium
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Why Australia Might Not See Another Canva: Observations on Vision and the VC Landscape
- Canva's exceptional journey, driven by a bold vision to democratize design, faced challenges in securing funding.
- The Australian VC landscape prioritizes immediate financials, making it difficult for visionary startups like Canva to gain traction.
- Globally, VC funding declined, but the sharper decline in Australia suggests local factors exacerbating the trend.
- Though initiatives like Startmate provide support for emerging entrepreneurs, scaling remains a challenge without VC backing.
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