Ben Matthews

Some seed-stage VC firms give up their pro rata rights due to lacking capital to meet the high capital requirements of a late-stage round and competition from larger VC firms. Alpha Partners, SignalRank, and SaaS Ventures are now stepping in to help seed-stage VC investors exercise their pro rata rights to maintain their ownership percentage. VC firms like Alpha Partners, SignalRank, and SaaS Ventures specialize in providing capital for pro rata investments for Series B and beyond funding rounds. #VentureCapital #Startups

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For C-suite leaders, strengthening business resilience means undertaking a long-term adaptation strategy that addresses physical risks and uncovers new opportunities. It was a pleasure to contribute to our guide. Get ready for #ClimateWeekNYC by learning how to equip your organization for the challenges ahead. #BainAtClimateWeek https://bit.ly/3APeKwL

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Elizabeth Cook, Managing Partner of VC firm AI Capital, addresses the art of the [VC] deal: An intricate blend of relationship building, offering a succinct and concise value proposition, domain expertise, and of course, profit! #venturecapital #vc #ai #artificialintelligence #enterpriseai #startups #entrepreneurship #investing #alternativeinvestments #familyoffice #pensions #foundations #endowments

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At S2G, we believe AI’s ability to enhance business models and ultimately accelerate solutions to market is emerging as a powerful enabler of progress in climate action and human health. Our newest report takes a closer look at this topic, including how companies from our portfolio and ecosystem have tackled real-life challenges with AI-backed solutions. https://lnkd.in/gDYKBHi8

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Summary: The article discusses the current challenges faced by VC firms in attracting new capital, but highlights how established firms like Kleiner Perkins are still able to raise large funds. It also touches on the potential impact of AI on investment strategies. Key takeaways: Many VC firms are struggling to secure new capital in a tepid IPO environment. Established, brand-name firms like Kleiner Perkins are still able to raise significant funds. AI is emerging as a potential game-changer in the investment landscape. Counter arguments: It may be premature to attribute Kleiner Perkins' fundraising success solely to AI; other factors could also be at play. The article may overlook smaller VC firms that are also finding success in fundraising. #venturecapital #vc #venture #startups #artificialintelligence

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"There are always multiple ways to win – In our second session, you can see the diversity of different approaches to winning. Dave Yuan from Tidemark and Adam Bain have VERY different styles to growth investing and Matt Auxier from University of Chicago has invested across the landscape of growth and early stage. This serves as a reminder that there is no single way to win and the importance of owning your own playbook, rather than following those of others." https://lnkd.in/g3JH6-aQ

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I’ve published dozens of data-driven blog posts over the years about Y Combinator startups and founders from an investor perspective, but I’m yet to talk about the people that made YC’s incredible success possible in the first place — its unicorn founders. As I explained in On the power law of Y Combinator startups, the unicorns ($1B+ companies) drive the overwhelming majority of YC’s early-stage investor returns. Since at Rebel Fund, we believe that a company’s founders are the ultimate drivers of its value creation, it only seems fair to take a deep dive into what YC unicorn founders “look like.” Well, according to DALL-E based on some of our summary statistics, a typical YC unicorn founder looks like this: Rather than stop the post here though, I’ll share a few highlights from the thousands of data points Rebel has collected and analyzed on the founders of the ~100 unicorns that YC has helped launch thus far.

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We recently led a $9.5M seed round in Zeno, our very first energy transition company in Africa. Michael Spencer and the team are now officially out of stealth sprinting towards their first products - a swappable battery compatible with an electric motorbike of their own design. Their opening market is Kenya, where 3M+ boda boda taxi drivers are eager to find ways to shave costs down. With Zeno's battery subscription model, they'll make 50% in savings compared to owning a petrol counterpart! Going electric will soon become the obvious choice. Kenya is just the start. Over the next quarter century, Africa will be home to the largest share of young people in the world, and is set to double its population to 2.5 billion. Talk about a growth market. Zeno has a particularly special place in our hearts because Harsh Dubey, who hustled his way into Lowercarbon Capital right out of college and became an institution around here, built up so much conviction in this company that he's moved abroad to work on this rocketship full-time. That should tell you something. Congrats again to the team, read more here for the deep dive. #tech #climatetech #energy #mobility #battery #electric #africa #emergingmarkets

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Manufacturing and the use of traditional fertilizer accounts for 5-7% of global greenhouse gas emissions. Founders Nicolas Pinkowski, Joshua McEnaney, Jay Schwalbe and the Nitricity team utilize air, water, and clean energy to make fertilizer that has a meaningful impact on climate change. Nitricity’s breakthrough technology decarbonizes the production, distribution, and application of nitrogen fertilizers. Change Forces invested in Nitricity to help decarbonize an essential industry, create jobs, and deliver an economical and sustainable solution to farmers and communities. Watch Nitricity’s journey to support local communities and promote a more resilient food system, part of “Reinventing Tomorrow,” presented by Change Forces and Pique Action. https://lnkd.in/epPA6G43

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Impactful Biz, Ops & Investment Roles at Early Startups & VCs: • Chief of Staff to Ex. Head of Product at Google • Founding GTM at the most YC product used by other YC companies in the past four years • Chief of Staff to a Partner at a Top-Tier VC Fund • Head of Platform of a NY State Backed Accelerator • Investment Associate at a Seed Stage Fund Investing in Category-Defining Companies • Partner at a Defense-Focused VC Fund • Chief Revenue Officer of a New Space Company in El Segundo • Venture Capital Analyst at a fund investing in overlooked geographies • Investment Associate at a Spirit-Focused Fund • Strategy & Ops Lead at a Company Focused on Helping Improve Autism • Senior Product Manager at a Company Focused on Building Shopify for Content Creators • Program Manager for a Space Security Company • Open-ended Investment Position at a Top-Tier Accelerator • Biz & Ops Lead for One of the Most Loved Digital Consumer Products 💸 All companies are well-funded and backed by top-tier investors. ⬇ You can find links to the roles above, plus many more, in the comments.

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ONE MORE TIME FOR THE PEOPLE IN THE BACK  Ed Zimmerman, Co-Founder of First Close Partners, and direct & indirect investor in 1,000+ startups shares his feedback in what to optimize for — as a founder — getting from launch to liquidity.  If you need a TLDR: optimize for someone who understands you and or your sector where they’re going to be reasonable and predictable to deal with… as opposed to optimizing for brand equity.” AKA Don’t shop purely for resume; shop for relationship!

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Doerte Hirschberg co-founded Climentum Capital, a leading fund that invests in champions of decarbonization. Climentum focuses on European early-stage companies that eliminate emissions at their industrial sources. ✅ Oliver and I chatted with Doerte for episode 9 of the Collective VC podcast to explore perspectives on ClimateTech, the intricacies of Article 9 VC, and some of the key challenges of running and operating a fund—from company culture and ethical challenges to taking the right meetings and best practices in diligence processes. 🌱 We also discussed the early-stage industrial decarbonization landscape across different European nations and touched on the economics of venture funding in climate. Additionally, we identified the most valuable startups in various ClimateTech sectors and examined what might make investors more cautious about diving into nascent climate technologies across different geographies. 🌍 This episode highly value-packed for those interested in climate investing. Enjoy! ➣ Collective VC #PodcastEP9 https://lnkd.in/gs8DMphc ➣ Climentum Capital https://www.climentum.com ➣ Collective VC https://www.collective.vc/ https://lnkd.in/gEPPPZ8q https://lnkd.in/gqtn_FHh https://lnkd.in/gnPvHWpn #Investor #VentureCapital #ClimateTech

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About a year ago, in September 2023, I left full-time employment to start working on Openseed VC 💜 This decision came during what is arguably the toughest --- fundraising environment for emerging managers since 2015. It was a leap of faith, driven by conviction and supported by an army of backers who, through their capital 💰, well-wishes 🤗, and goodwill, made this venture a reality. A LOT can happen in a year. As I reflect and journal co-incidentally on today, my birthday, I’m struck by how much we have achieved so much in just twelve months: In the spirit of counting my blessings, I spelt it out; - Built a compelling fund brand and strategy 📈 - Fundraised from LPs 🤝 - Structured and incorporated the fund - Received regulatory approval and incorporated - Reached the first close of the fund 🔒 - Had a strong public launch 🎉 - Built a lean team and onboarded advisors 🧑‍🤝‍🧑 - Recruited 60+ operators for the operator network 👥 - Received 850+ founder applications 📑 - Conducted 200+ founder calls 📞 - Made two investments in Europe 🌍 & Africa 🌍 Just a year ago, Openseed VC as a fund didn't exist, and I am so excited for what's to come! We aren't just building a fund; we are creating an innovative financial institution that is the first investor in talented, experienced, and diverse operators from day zero. This is just the beginning; it's day zero for us too. ✨ If you're hesitant to take the leap to pursue something you know you were born to do. Something you realise has a high opportunity cost and high upside, yes- high risk of failure, but if not pursued you know you’ll regret it—maybe this is a sign. A year from now, a year will have passed anyway. A LOT can happen in one year. It’s also coincidentally my birthday today, so I will be celebrating on two fronts! :) Grateful, and thanks again to every single person who contributed to my journey🎊 #openseedvc #operators #founders #europe #africa #futureofcommerce #futureofwork #futureofhealth #oneyear

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At Kearny Jackson, founders constantly ask us what we look for in founding teams. I’m sharing the rough framework that my partner, Sriram Krishnan, outlined to assess founders as a pre-seed/seed investor. This is also how I judge whether someone is “biased for action” or “biased for thought.” I get along well with the former and not the latter, but that’s a story for another day. Level 1 - Speed of communicating Whether by text or email. Quick turnarounds, “acknowledged receipt” types of folks. Not being speedy is not necessarily a bad sign; it can also mean they’re busy or don’t care about you or your email. Usually “closes the loop” and, most importantly, tries to leave no email unresponded. Level 2 - Speed of rewriting deck or memo Founders who pitch one version of the deck and share an updated version after the pitch the same day with slides that address the questions asked during the pitch. Or founders that iterate on positioning and strategy quickly based on input and ship a new version of a deck within days. Some founders use a static deck when presenting (i.e. the same deck for weeks on end), but some are more dynamic and change/pivot/edit when new information or tactics come to light. Level 3 - Speed of talking to or onboarding design partners Founders who not only speak to 50-70 potential prospects within a short time frame but also ones who onboard X design partners very quickly. I’ve seen some founders pitch an idea in week one and sign up four design partners in week two. That’s pretty impressive regardless of what is being built and shows they can execute. Level 4 - Speed of shipping new code, new features, new products, or new pivots This is the holy grail. This is what every early-stage investor means by execution velocity. In the world of early-stage startups, the big fish don’t eat the small fish. The fast ones eat the slow ones. And how quickly you ship code represents how efficient or productive you can be in a resource-constraint environment. All investors would preferably want to see how founders execute with code, but (A) founders don’t always have product during the seed/pre-seed rounds, eg. figma designs, mock-ups, ideas, etc (B) so investors have to rely on other signals to decipher whether you can execute on 4 so levels 123 above will hopefully inform them on that.

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Pear VC Startup Equity Calculator for Early Hires Pear VC head of talent Matt Birnbaum created this calculator to determine the equity for early hires. You can read more here How to structure startup equity for early hires https://lnkd.in/ggmpT5-Y https://lnkd.in/gjsvths6

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Paige Hendrix Buckner and the All Raise team push the ecosystem in the best ways to bring community and capital together. For some numbers that tell a story about the VC industry since 2018, read the comprehensive 2023 Annual Report: https://lnkd.in/gbbZabdr ! Spoiler Alert: Some things changed like proportion of women decision-makers in VC firms has nearly doubled to 17.4%! (For firms with $50M AUM or greater). This is great, and it's still not enough! On the other hand, some things stay the same as we know the VC % going to female founders is the same or worse. And, yet we just keep going! #Investment #VentureCapital #Womeninventure #GPs #LPs #EmergingManagers

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Here’s a question investors are often asked: When evaluating early stage companies, how much time do you spend on due diligence around future exits? It’s not surprising we hear this question a lot. Also not surprising: it’s got a wide range of answers depending on the firm. Some don’t spend much time here at all. Others make it a point to put meaningful time in as part of their process. Our current thinking: take the time to do the work on public market comps. At Alpaca VC, we spend significant time understanding how public market investors will  realistically value a business based on margin profile, product, business model & TAM. In short, we want to know: how will this company be valued at scale when we get taken out? Yes, we can acknowledge that the journey toward exit is a windy road and that there may be pivots along the way, but there are still public market companies that have a business model similar to the early stage company you're evaluating. And you can always look at gross profit multiples if you think the margin profile will change over time. So we still do the work on the comps. Quantitative metrics we look at when making the comparison to public market comps include EBITDA multiple, revenue multiple, Gross Profit multiple or all of the above. As part of this process, it’s also important to factor in the public market company’s year-over-year revenue growth as this will also significantly impact the multiple it trades at. Simple example: if you have two public market companies with similar business models and similar margin profiles, but one's growing 100% year over year, and one's growing 50% year over year, then obviously the DCF (discounted cash flow) analysis is going to spit out a very different valuation for the one that's growing faster. Why this matters: When you take all of that information into account as you evaluate an early stage business, you can begin to create a realistic picture of how this company will be valued in the public markets at exit - or how an acquirer will value the company for an acquisition. Strategic acquirers may, of course, pay a premium, but we won’t underwrite for that. This allows us, for example, to form conviction around valuation based on revenue and gross profit predictions. If we think they can do $100M of revenue five years from now, we use this diligence process to form a thesis about whether the characteristics above (product, margin, business model, etc.) will cause the company to be valued at $200M vs. $500M vs. $1B at exit. Curious how other early stage investors think about underwriting an exit and how much time they’re spending on public market comps even though these companies are in their infancy.

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On this week's Andreessen Horowitz Raising Health podcast, Vijay Pande, PhD and I interviewed Tom Hale, CEO of ŌURA. Our conversation spans lots of fun topics, including: -- Our love for our Oura rings, despite them being literal “buzz kills” in revealing the ruinous effect of alcohol on sleep  -- How the worlds of consumer and healthcare are merging, as consumers essentially now have access to clinical-grade wearable devices  -- How AI algorithms are deployed in wearable devices & what wearables might look like 20 years from now (implanted into our bodies and clothes)  -- How the sexiest people sleep in earplugs and eye masks Check it out! https://lnkd.in/eTAsX_sY

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