Meredith J. Powell

💡 Interesting article from McKinsey & Company https://lnkd.in/epAPVffD Thanks for sharing! YouKnowMeBest Tea Shashaj InnovaticGroup. Create the Future Now innovaticgroup.com #Innovation #Growth #Technology #Entrepreneurship #Investors #BusinessAngels #VentureCapital #LPs #GPs #DigitalTransformation #Digitalization #Startup #Scaleup #StartupInsights #InnovaticGroup

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It was great to speak with the Logic earlier this week and share Tidal Venture Partners perspective on the subject of fund domiciling strategy.  It may sound like we’re in the weeds on this topic, but the question of where to domicile is a growing conversation and consideration for many Canadian fund managers with big long-term implications for our innovation economy.  The challenge of Canadian companies remaining Canadian owned will only become more acute if more Canadian funds start to domicile in other jurisdictions.

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🚀 Very proud to have finally announced our latest investment Partech Africa !! 🚀 Beacon Power Services is at the core of several very strong trends: 💡 Electricity demand is on the rise and electricity grids in emerging markets will need to scale and work well: Beacon helps them generate between 20% and 50% of additional revenues by lowering ATC&C losses 💻 Data generation becomes a key asset in word where AI will become more and more dominant. Beacon is generating massive critical data on everything happening on the grids mapping and updating real time massive amount of valuable data on electricity consumption, consumer behavior etc. ⚡ Vertical Software / AI solutions are winning against horizontal incumbents. Enterprise customers want tailor made services matching their specific industry needs. Beacon is building the software & AI layer for utility players around emerging markets. Glad to join the rockstars Bimbola, Christine and the whole team !! cc: Tito Cyril Marie Sabrine Ogugua Tidjane Alhousseini Augustine Aminata Lewam ps: Kudos Maxime, Eghosa and the others for catching this one early at seed stage a few years back ;)

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Check out this epic interview.

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Some interesting thoughts in the inexorable march forward of each AI generation, but also the limits to where AI really shines. In terms of repurposing exisitng content, there seem to be some real value adds here - but exactly how useful this 'professional' podcast really is remains to be seen.

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Going to #DiscoveryX tomorrow? Here are the things that I’m mostly looking forward to: ✅ Further developing relationships with the members of the Toronto investment community. No, we are not raising at Mavuus, but it's never too early to start building connections. ✅ Meeting the founders of the latest and greatest tech innovations. I love hearing about other people’s ideas and their success - it’s definitely a source of inspiration. ✅ Lastly, watching the Pitch Competition from early-stage startups. Honestly, they are my absolute favorite thing to do when at conferences. Want to learn the pitching Do’s and Don’ts? This is your place to start. Want to exchange notes on Top Things at #DisoveryX? Let’s connect.     

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🇨🇦OH CANADA! WARREN HINTS AT A "WE THE NORTH" BIG BET 🇨🇦 BRK ANNUAL MEETING a bit of a snooze fest; a few intriguing nuggets/ dropped hints of coming bets à la their Japan sogo shosha foray. I. GENERAL INSIGHTS (CASH HOARD, SUCCESSION, MACRO): * BRK propping up T auctions (see below) in lieu of foreign direct bidders; reallocating out of equities; but a sudden retracement of rates would sting * a triumvirate will take over from WB (as I posted Friday) with final veto power from CEO Abel on future new positions * WB sounded hoarse, off his game--mistaking CEO Abel for Munger (R.I. P.) * "USA gov owns BRK in part" ascribed to the 21% tax rate along w exhortations for other corporates to pay fair share of Federal taxes * "primary investments only in USA" core names AXP, KO, GEICO; the most important business of the BRK empire? Clearly, I N S U R A N C E * railcar loadings trending down (key macro economic indicator)--BRK exposed * his cryptic comments around Canada: WB has invested in the Great White North before. What is this new play? Probably Energy BEFORE SPECULATING FURTHER, notable highlights as follows: I. APPLE: "2024 SHARE DECLINES YTD PARTIALLY DUE TO BRK SALES" * $189bn cash hoard, invested in "T bills and chill"---awaiting a big bet; a net seller of equities * trimmed AAPL stake (by 13%. 115mn+ shares) to lock in gains < CapGains changes 2025; BRK trim fueled NASDAQ: AAPL recent 2024 declines * fears that AAPL is "losing its moat" in China, Europe as competition intensifies and EU regulatory "takes a bite"; Cook's $110bn buyback a propping up tactic? II. RISK, INSURANCE AND AI: * "USGov = BRK's largest shareholder" begs a Q: would it ever be nationalized? * increased insurance unit exposure to FL last year in the face of others leaving "at the end of the day, still possible to make a decent profit" (in FL) * "in future, largest AI growth industry will be scams"---WB does not understand it, but knows it is potentially dangerous as well as beneficial * self driving cars w AI could be an unknowable threat to BRK insurance cash engine, e.g. GEICO which is in urgent AI catch-up mode (data analytics gap) III. BRK ENERGY: * "we have the money and the knowledge" to win in Energy * rebuilding utilities for AI, data centers is a massive undertaking along with wildfire and other risks to power generation * CEO Abel spent inordinate time on Energy indicating that might be the big bet ----------------------------- NET, BRK MORPHED into a quasi universal bank (asset mgt/money market, credit cards and insurance) with candy and tech sprinkled on top. Insurance alone generates $300bn in revenue: world's biggest insurance company by far. James Eagle has a fascinating visualization on BRK evolution here: https://lnkd.in/gNNRKYJM #BRK #risk #warrenbuffet #strategy #activemanagement #energy

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At the moment, Napkin Inc. has three strategic M&A deals lined up, positioning us to end 2024 with $97M in revenue and $26M in EBITDA (producing $22M in free cash flow) on a consolidated basis. We are seeking $20M in debt funding (less than 1 turn of EBITDA) to complete above, with the potential to scale this to a $50M facility, alongside PE capital for continuous growth to $250M in revenue and beyond next year. Our approach is straightforward: bypass the middle market by raising non-dilutive debt at very low debt-to-income ratios (today we’ve achieved nearly debt-free). This will allow us to provide target company founders with well-deserved cash in exchange for selling their companies to Napkin for a mix of 75% common stock and 25% cash, paid within 120 days of closing. This requires substantial faith but embodies our belief in "we’re better together," setting the stage for a significantly higher exit value for founders as we scale toward our IPO target date of February 12, 2027—marking the end of our first 7-year cycle from inception to going public. As we engage with the private debt and PE markets, I’m eager to connect with anyone in my network who has insights or connections in this space. Together, we can push boundaries and build remarkable value. I’m excited to see our roadmap to IPO strengthen with each deal closed, each new region entered, and each founder who brings tremendous value and network effect to our company. Thanks to all our current shareholders, many of whom are founders and invested their life's work. I look forward to navigating the capital-raising component swiftly for us, so we can remain focused on building innovative M&A tech (right now we're doing some awesome things) and enhancing both our operations and systems to support all of our founders' success. #MergersAndAcquisitions #StrategicGrowth #BusinessDevelopment #PrivateEquity #DebtFunding #IPOJourney #CapitalRaising #NonDilutiveCapital #BusinessScale #TechInnovation #CorporateStrategy #GrowthFunding #FinancialGrowth #Entrepreneurship #BusinessSuccess #FutureOfFinance #ScalingUp #InvestmentOpportunities #RevenueGrowth #EBITDA #FreeCashFlow #CompanyGrowth #MarketExpansion #DebtFacility #ScalingStrategy #InnovationLeadership #Startups #BusinessTransformation #StrategicPartnerships #ScalingBusiness #GrowthCapital #CorporateFinance #MandASuccess #InvestmentStrategy #ValueCreation #FinancialSuccess #ScalingToIPO #TechGrowth #BusinessResilience #FundingGoals #PrivateDebt #PEMarkets #BusinessBuilding #EntrepreneurialJourney #GrowthMindset #IPO2027 #Napkin

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Another great #investcanada2024 conference last week. Congrats Canadian Venture Capital & Private Equity Association (CVCA) again and fantastic collaboration with Réseau Capital for curating + delivering such an important ecosystem event that brings together the who’s who in Canadian investing. It’s an interesting macro environment for both founders and emerging VC funds in 2024. The bar for fundraising is higher and the process is more difficult, but it’s an amazing time to build and fund startups. Over the years I’ve been asked what’s made me a successful investor given the number of exits & investor returns delivered. Beyond it being a full-time obsession for decades, one needs to constantly find ways to evolve to founder needs and deliver differentiated value. Earning the right to back and support the best founders is what delivers outsized investor returns. This is easy to say for many investors, but often many fall flat on the everyday execution for different controllable reasons. Reputations are built & lost fast in a more challenging market. Highline Beta's pre-seed VC & venture studio model continues to not only innovate, but also win predominantly because our core investment value is to always “earn the right on the cap table” with the founders that we support. It’s a complete team effort and after 8 years of building out Highline Beta’s foundation let’s us now grow via new vertical venture studios + funds. 🚀

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THIS is one of the best analyses I've read on the VC ecosystem as of late. While John Rikhtegar spends the report covering the Canadian ecosystem, I find it as useful - and lots of parallels to the US VC ecosystem and where LP dollars went - for the broader global economy. It's a longer read, but I promise, worth every minute. Some of the notes that stuck out most for me: 1/ 50% of the past decade's exit values were generated in 2020 and 2021. Great liquidity for LPs, but that forced LPs to have an unprecedented amount of capital to redeploy, which made them redeploy quickly to VC, but caused a vacuum and left 2023 and 2024 years far drier for GPs fundraising in market. 2/ From peak in 2021/2022, there's been a 76% drop in exit value in the Canadian ecosystem, 85% drop in Canadian VCs fundraising, and a 77% drop in capital Canadian VCs invest into the ecosystem. 3/ The median exit age of for the top 50 Canadian companies is 12 years. The median time between first financing and its exit for the top 50 is 8 years, leaving a median time of 4 years from a company's founding to their first financing. As such, if a Canadian VC's deployment period is 4 years, it's right to assume as an LP, that you're not going to see the end of the fund till 12 years after you invest. Even if the GP pitches a 10-year fund. 4/ Not all exits are created equal. The top quartile of top 50 exits raised more capital than the lower quartile. The median exit capital efficiency for Canada's top 50 companies for was 7.7X. Meaning the median company exited for $7.70 on every $1 they raised. 5/ Median US exit values are 2X Canada's. That said, Canada is catching up. In the past decade, the US produced $2.6T in exit value, compared to Canada's $56B, only a 46X. Lowest delta on record.

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What excites PAR Technology the most is their ongoing mission to enhance and elevate the customer experience across the board. They’ve been focused on ensuring that all of their products are designed to seamlessly integrate, creating a cohesive ecosystem for their clients. Data plays a pivotal role in their strategy—PAR is committed to not only providing easy access to data but also offering valuable insights and actionable breakdowns that help businesses make informed decisions. This approach underpins their dedication to innovation and operational excellence. Branded Hospitality Ventures #POS #Technology #Hospitality #Marketing Hospitality Hangout Podcast Keith Pascal Tori D. Savneet Singh Dan Costello Ben Carroll Jeff Carpenter Joe Yetter Shane Gau Steven Downer Joshua Tuokkola Paul Rubin Karl Ruter

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How to invest in a Venture Fund? Calling all Limited Partners (LPs) and Family Offices! 📢 Are you looking to dive deeper into the world of venture capital? Want to understand how to invest in venture funds? This is a fantastic opportunity for you! We are excited to invite you to Venture Summit: Toronto Collision, where industry leaders and experts will share insights & strategies in venture capital investing. Event Highlights: 🔹 Engaging Panels: Gain practical knowledge on structuring investments, managing portfolios, and navigating the VC landscape. 🔹 Networking Opportunities: Connect with like-minded investors, LPs, family offices, and founders to build valuable relationships. 🔹 Meet Fund Managers Starting their next Fund: meet emerging managers and learn about their experience, thesis, strategy, expertise and passion for venture investing. 🔹 Startup Spotlight: Listen to shortlisted startup pitches & and connect with founders throughout the event. Date: Thursday, June 20th Register: https://lnkd.in/garRw37p Message me for a free investor ticket if you are interested in attending (limited quantity)! Don’t miss out on this exclusive chance to enhance your investment strategy and expand your network. #VentureSummit #TorontoCollision #VentureCapital #Investing #LPs #FamilyOffices #Networking #Innovation #InvestmentStrategy #VC #startups #fundraising #deals #founders #investors #limitedpartners #innovation #diversification

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Abundance AND impact? Yes, please! 🌳 Merging historical IRRs of 35% with social impact investing, our search fund is a creative, emergent and exciting way to shape the future of Canadian small business. The New York Times did a great piece on traditional search funds and the opportunities in this space. #regenerativeleadership #canadiansearch #canadiansmb #eta #impactinvesting

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Theabsolutebestfckingpeopleinthewholewidefckingworld. -- Marty Neumeier and I are super proud to introduce LEVEL C's first #Fellows in Residence: Erica Bonser, Founder, Fan Club Brands Sabine Friesser, Partner, EmptySpace Marc Gutman, Founder, wildstory Many Klenk, CEO, mut.agency Ionuţ Petraru, Strategic Designer, IP These are the people we want to work with. Thinkers and makers who bring the energy instead of the ego, and are totally selfless when it comes to serving others despite the ME!ME!ME! trends out there. They're more than accomplished alums, masterclass captains, and understated overachievers. I mean, yeah, they're all of that too. But they've been leading Level C forward for a while. They've taught us as much as we've taught you. They can outthink, outmaneuver, and outperform anyone. More than anything else, they've given so much of their time and talent to shape your tribe. Their tribe. This tribe. For all that they've demonstrated and given back, we celebrate them with rightly earned Fellowships that reflect the very best of this new bauhaus. These are the faces and names of distinction leading Level C. They won't be the last. 

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The Peak recently wrote a timely article on the changing Canadian seed funding landscape and Graphite Ventures' Aaron Bast notes a trend toward a renewed focus on capital efficiency and how companies are adjusting to smaller rounds. It's definitely getting more competitive for companies raising but we're still seeing solid founders building growth companies while being mindful of costs. #canadianfounders #startups #seedfunding https://lnkd.in/gkz856tz

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Below is a good summary and context for the Q3 quarterly report released by the CVCA. On the surface, it seems like it was a good quarter for venture investment in Canadá. But a quick look under the surface paints a potentially very different picture: - the 130 deals closed in Q3 matches the lows during COVID in 2020 - the $2,651MM in deal value appears fairly robust other than the heady days of 2021. But it includes both the Clio deal of $1,240MM and the Cohere deal of $616MM leaving the remaining 128 deals totalling $795MM, matching the levels last seen during COVID in 2020 - the vast majority of the source of the capital invested in Q3 are from US or other foreign sources of capital - early stage investments continue their trend of performing poorly this year What does this all mean? Not really sure yet. It certainly was not a good quarter of activity but it’s too early to call this a trend. But is it a leading indicator that deal activity will continue to be constrained? Is there evidence of a lack of Canadian source capital required to invest in startups, and in particular, early stage opportunities. When the Federal government decided to increase capital gains taxes, many people in the innovation community sounded the alarm bells. The fear was that such an increase will further take the air out of the sails of funding startups in Canadá. While it is still too early to conclude the impact of such a move, it is clear the timing of this decision is very unfortunate because there is a clear trend that the activity in venture from Canadian sources of capital is slowing down materially.

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Other than a handful of Pension Plans domiciled in Quebec, the rest of the Canadian Pension Plan ecosystem has for the most part missed out on literally billions of $ of value creation generated by Canada’s innovative life sciences companies over the past five years. It doesn’t have to be so. Engaging Canada’s pension plans in Canada’s innovative life sciences ecosystem is not about charity or as some have suggested about “risking returns for pensioners”. It is about exactly the opposite. It is about providing alpha, enhancing returns, supporting high value domestic job creation, providing highly leveragable insights that can be used to enhance public market strategies, fulfilling ESG and impact objectives, and finally ensuring Canadians and not foreign investors derive a greater share of the value created from Canadian innovations and the hard work of Canadian entrepreneurs. I don’t know much, but that sounds like a highly virtuous circle, and as a Canadian who cares deeply about creating a vibrant economy for Canadians and seeing Canadian Pension Pensions prosper for pensioners, I, and am sure many of my peers, would be more than happy to help these Canadian Pension Plans learn how they could join that circle.

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For many startups, the ultimate sign of success is an exit strategy that provides shareholders with a return on their investment. However, what is often overlooked is the impact of liquidation preferences on these returns. Liquidation preference is a crucial term in investment agreements that dictates the order in which proceeds are distributed during a sale or liquidation. Understanding this term is essential for appreciating its effect on shareholder returns. Impact Partners client David Spreng, founder, CEO, and CIO of Runway Growth Capital, gives his POV on the topic below.

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