Whitney Routman

Well-written and sourced article describing what's going in seed-stage venture market. At 9point8 Collective we tend to orbit the seed-stage (both ideating and developing companies to reach seed and helping post-seed companies refactor and scale in anticipation of A) and for many companies it's a critical inflection point which determines their long term success or failure. The main takeaways I was able to gather: 1️⃣ Many startups that raised seed rounds in 2021-2022 are struggling to secure Series A funding due to tighter market conditions and increased investor expectations. 2️⃣ Seed investors are becoming more cautious, leading to longer diligence processes and a preference for startups with strong traction or experienced founders. As a result, valuations have stayed relatively high even as deal flow reduces. 3️⃣ Startups are adopting various strategies to navigate this challenging environment, including cutting costs, raising bridge rounds or convertible notes, and M&A/acqui-hires. 4️⃣ Despite the challenges, there are opportunities for both startups and investors in this new landscape, particularly for those who can adapt to the changing market conditions. Investors are accumulating dry powder -- and with rates on the decline -- will be looking to deploy into companies with stronger fundamentals than their 2021-2022 counterparts.

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Brian Horner, president emeritus of TCA Venture Group Los Angeles, provides insights into the investment approach of angel groups. He highlights the variability in check sizes, as individual angels make independent decisions. Horner shares when he was with TCA, the group would invest $12-15 million annually across 40-50 companies, with an average check size of $300,000. However, he notes significant deviation, with some deals attracting 30+ investors for multi-million dollar rounds, while others may only have one angel writing a $25,000 check. This flexibility allows angels to collectively support promising startups. #angelinvesting #startupfunding #startups #entrepreneurship #venturecapital #pegasusangelaccelerator

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After the first deep dive discussion w/ founders I often hear a comment "I wish I had heard about this alternative [to all-in must-become-a-unicorn] way to build a startup earlier as I have wasted years in pursuing the wrong thing". Our mission is that no founder would ever need to say that again as it is such a waste. Us preaching the gospel 1:1 just doesn't scale, hence we use mass media to multiply our efforts - that's how Gorillacast came to be. The 1st episode is out, featuring yours truly. "How can you know what food you like unless you taste everything" said a chef. How can founders make informed choices about the best strategy for them to follow unless they know of all alternatives? This might not be of interest to you but pls spread the word so that the founders who should hear it can find it. I have a dream!

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Having a Cars and Capital event tomorrow in Southern California with Oren Klaff. If you want to join message me. https://lnkd.in/gDQ4D39u Oren Klaff Bridger Pennington #InvestorEvent #FamilyOffice #InvestmentOpportunity #CarlsbadEvent #PrivateEquity #WealthManagement #InvestmentConference #CapitalRaising #NetworkingEvent #IndustryLeaders #FinancialGrowth #InvestorsMeetup #WealthBuilding #BusinessGrowth #InvestmentForum

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In conjunction with Cooley's Q1 2024 Venture Financing Report, we sat down with Chris Ahn of Haun Ventures to get his take on the state of venture capital investing, including insights on: 💥 The significance of up rounds representing 65% of deals. 💥 His approach to risk management and mitigation strategies when investing. 💥 The most effective monetization models for community-based ventures. Read the full conversation on #CooleyGO with the link below. #CooleyGO #venturecapital #VC #investing

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One of the things we see quite often at Grit Capital Partners, is a newly minted CEO. We see a big difference in the transition to CEO based upon the historical lane the CEO is coming from. There are different new muscles if you are coming from Product, Engineering, Finance, etc. In this article, we go deep on the CRO to CEO transition, which includes some thoughts from Rosie O'Meara, a particularly fine example of someone who has made the transition quite well. What were your biggest transition moments? https://lnkd.in/eEB-K2ZU

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Notes from the Trenches is live. We’re tackling the current market's exit drought—but there’s light at the end of the tunnel. With promising data around M&A, private equity buyouts, and hints of public market momentum, we’re cautiously optimistic for the months ahead.

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💰 Founders, are you wasting time and resources pitching to the wrong investors? 💰 In this podcast excerpt, David Forsberg, CFA from Ascent Energy Ventures shares a crucial piece of advice: Make sure your startup is truly venture-backable before you start seeking funding. 🎯 I've advised hundreds of startups that have raised billions in VC and venture debt funding, and I've seen firsthand the pressures founders face when growing their companies. 🌱 Listen to the full podcast for more game-changing insights. Link in the original Kruze Consulting post. 🎧 #startups #venturecapital #funding #entrepreneurship

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The entrepreneurial journey is one of grit, passion, and unwavering belief. I'm truly excited about what Raj Shekhar Singh, Jyotika Gupta , and Sudarshan Ravi Jha are building with z21 Ventures. Their vision resonates deeply with me. As a founder, I know firsthand the rollercoaster of highs and lows that come with building something from the ground up. It's a path that tests you in ways you never imagined, but it's also incredibly rewarding. We've been fortunate to have exceptional investors like Sumir Chadha and WestBridge Capital in our corner. Their support went beyond just capital - they've stood by us through our triumphs and, more importantly, our setbacks. That kind of belief in your vision is invaluable. I'm hopeful and confident that Raj, Jyotika, and Sudarshan will create similar transformative experiences for a new generation of purposeful founders. They understand that true innovation often comes from those daring to challenge the status quo, those driven by a desire to make a real impact. To all the founders out there: Your journey may be hard, but it's worth it. Stay true to your purpose, embrace the challenges, and remember that your ideas have the power to make meaningful change in the world. With supporters like z21 Ventures backing you, there's no limit to what you can achieve. Let's build a future where innovation thrives and where purposeful entrepreneurship creates lasting positive change. The road ahead may be tough, but with determination and the right support, anything is possible.

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This is quite interesting advice and also quite a non-consensus view in the B2B software world. Cross-border founders who are considering the US vs International incorporation question should consider this as valuable input.

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VC Market Update: Riding Out the Post-Boom Bumps. 2021's high-flying valuations and growth have given way to a more complex reality. With longer private timelines, tough exit markets, and capital tightness, startups face unique challenges—but also fresh opportunities. For those navigating today’s VC landscape, strategic planning is key. Whether it's balancing growth with capital efficiency or exploring secondaries smartly, there’s a path forward. And with boosts from AI and future rate cuts, brighter days could be ahead!

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🌟Innovative VC Firm Overcomes Exits Drought with Secondary Sales🌟 ⛵Navigating a challenging landscape where exits are scarce, Santa Barbara Venture Partners (SBVP) has pioneered a novel approach to sustain its growth and attract investors for its second fund: secondary sales. Instead of waiting for traditional exits like IPOs or acquisitions, SBVP opted to sell shares of its portfolio companies, demonstrating its ability to generate returns for investors and stand out in a competitive market. 🎤According to Dan Engel, founder and managing partner of SBVP, these secondary transactions have been a game-changer, sparking investor interest and bolstering the firm's credibility. By leveraging its recent successes, including a lucrative stake in sports-betting company DraftKings Inc.' acquisition of digital lottery app Jackpocket, SBVP seized the opportunity to return profits to its limited partners (LPs) and pave the way for its second fund. 💡Engel highlighted the challenges faced by young VC firms in raising subsequent funds, particularly amid a downturn in exit activity and heightened investor scrutiny. With traditional exit routes becoming increasingly elusive, the pressure is on for firms to demonstrate tangible returns and establish a track record of success. ✨"For us, secondary sales have been a game-changer. They've helped us return profits to our LPs and attract investors for our second fund," said Dan Engel. 💰For SBVP, the decision to pursue secondary sales was driven by the need to provide liquidity to LPs and validate its investment thesis in the eyes of prospective investors. By strategically offloading portions of its holdings in high-performing portfolio companies like Bark Technologies and Rad AI, SBVP not only generated substantial returns but also bolstered investor confidence in its ability to deliver results. ⚠Despite the complexities and potential stigma associated with early share sales, Engel emphasized the importance of prioritizing investor returns and seizing opportunities to unlock value for stakeholders. With a focus on profitability and transparency, SBVP remains committed to its mission of delivering sustainable growth and maximizing returns for its LPs. 🔍 "Returning profits to our investors is our top priority. By strategically selling shares, we're proving our commitment to delivering results and driving value for our stakeholders," added Engel. As SBVP continues to explore secondary transactions and expand its investor base, the firm stands as a testament to innovation and resilience in the face of market challenges. 🚀 ✅ Looking to raise capital for your #fund and increase the international pool of your LP #investors?   🤝 Need warm #LP introductions?   📝 Selling #secondaries to increase liquidity?   🧐 Looking for co-investments?   ▶ G+QUANT's link for inquiries and fund decks: https://lnkd.in/gjC_EuTE #VCInnovation #SecondarySalesSuccess #InvestorReturns #ValueCreation 

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LP Tip #5 of #50: Spend time to anticipate what off-book references may say about you. ➡️ GPs should assume that professional LPs will reach out to their own network to learn more about them.  ➡️ High net-worth (HNW) individuals and operators are not likely to spend as much time on references than professional LPs. In fact, I know many cases where HNWs and operators didn’t even reference the manager. ➡️ Each LP has its own approach to conducting references. ➡️ Opinions are my own.    ❓ If LPs are back channeling you, what do you expect people will say about you as an investor and person? Fund managers control on-book references because they select who an LP speaks with. And, these references typically give an LP a positive perspective of a fund manager. In contrast GPs do not know who comprises an LPs trusted network. They also cannot control what the back channel reference will or will not say. Below are two things you can control which can impact the back channel. 1️⃣ Control possible negative flags -  If you anticipate something negative to come up during references that may be  perceived as a potential flag by an LP it is best that you bring it up first rather than having the LP bring it up. I would bring up the things that you envision could derail your funding and that you expect the LP to discover.  2️⃣ Control how you show up  - Unfortunately, some managers do a great job of undermining their own professional reputation which impacts how well they will back channel. For example, I was having a follow-up meeting with a talented manager and they started to trash talk another investor to me in a way that was unsettling. I believe in giving people grace as sometimes people have off days. But I was struck that the fund manager was emboldened to share with me because I was a relatively new connection. I then began to wonder if they acted like this with other LPs. Other LPs verified that they had a similar experience and felt it showed a lack of  judgment. If this new manager lacks judgment on professionalism then I start to question if they lack judgment on many other aspects of running a fund. 

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Forerunner Ventures' $500M Fund and the Growing Opportunity in Consumer Tech Kirsten Green’s Forerunner Ventures, known for its early investments in Warby Parker, Away, and Glossier, has closed its latest $500 million fund, signaling strong confidence in the consumer tech sector despite the challenges of the past two years. With a focus on seed to Series A investments, the firm will write checks between $1 million and $20 million, raising its total assets under management to nearly $3 billion. Despite a tough market, Green remains bullish, stating that AI’s rise is driving consumer expectations for more personalized, high-quality products and services. Recent investments include AI-driven startups like Daydream and MindTrip, indicating Forerunner’s commitment to evolving with emerging tech trends. Implications for Hiring: As consumer tech heats back up, law firms need to start strategically hiring emerging companies associates and partners. With the return of investor confidence in this sector, especially in AI-enabled startups, firms need talent that can navigate early-stage investments, growth, and complex IP issues. Being ahead of the curve in these areas can position your firm as a key player in the evolving landscape. The Implication of Doing Nothing: Failing to act now means missing out on the next wave of high-growth consumer tech companies. As the market warms up, firms that aren't proactive in securing top talent could fall behind, missing valuable opportunities to work with the startups and investors leading the charge in this space. https://lnkd.in/eyzmkitb

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Maven Ventures , a seed-stage venture capital firm celebrated for its early investments in companies like Zoom and Cruise, has recently launched a new $60 million fund. This fourth fund raises their total assets under management to $200 million, with a continued focus on pioneering startups in the consumer technology sector. 𝗥𝗘𝗔𝗗 𝗧𝗛𝗘 𝗗𝗘𝗧𝗔𝗜𝗟𝗦 👉 https://lnkd.in/d_9Y84Ri Robert Ravanshenas Nick Stanley Jim Scheinman Sara Thomas Deshpande Naomi Scheinman #startups #fundingnews #investmentfund #venturecapital #privateequity #finance #investors #siliconvalley #consumertech #innovation

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Can you navigate the highly regulated alcohol industry and still find scalable growth? Noah Sanborn Friedman shows how it’s done. Join me as he shares his top strategies on balancing regulatory challenges and market opportunities. Get the inside scoop on his dos and don’ts that can make or break your venture in the latest from #FundraisingDemsystfied

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I used to think LPs only invested in emerging VC / PE firms for better returns. That’s true…sort of They obviously first and foremost want high returns, but in building our firm and studying the industry I’ve learned that LP motivations are more nuanced than that To understand why an LP really might invest in us, I start with the assumption that they could invest that $ in Blackstone (or a similar large PE firm with top quartile track record) What could we offer that is incremental, and how should we position ourselves in that way? 1. Smaller funds can be higher upside — LPs may be looking for higher risk / higher return opportunities, so we have to emphasize the path to outlier returns. This means discussing not only their expected value but also the distribution of outcomes, and how that might differ from the rest of their portfolio 2. Harder to partner with successful firms later — LPs are often looking to build long-term partnerships with firms that will be around for many fund cycles, and that is about more than just returns. It’s important to emphasize not just the strategy of this fund but also the vision of the firm we’re building 3. Co-invest opportunities — Some LPs don’t care about co-invest, others only invest in funds for co-invest. When speaking with the latter, we emphasize that we have a disciplined and repeatable process to generate and share co-invest opportunities (easy to say, harder to execute) 4. Learning and thought partnership — We have LPs that invested in us because they have conviction in or personal passion for health & wellness and want to learn more about the ecosystem. For these folks we might talk through investment opportunities they see that are in our industry, or invite them to industry events. We also spend a ton of time writing quarterly letters to help them track the industry and learn from our companies It takes years to know where our returns will ultimately shake out, and we’ll have no reason or permission to exist if they aren’t good In the meantime it’s crucial to recognize and deliver on these other needs of our LPs, to provide the experience that they signed up for

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