Anthony Rose’s Post

#Founders, the venture capital world is complex, and sometimes, it brings out the worst in people. At Wisdom Partners, we strive to shed light on the dynamics within the industry and promote a culture of awareness and integrity. 📢 Explore this article from NFX on how VCs can sometimes lose their way: https://lnkd.in/gA2jGrwa In line with this, check out our blog post, where we explore what VCs are and aren’t, and how to get the support you need: https://lnkd.in/gr9xytsj #startupdevelopment

One of the main reasons Landscape exists is to help provide transparency for founders navigating the venture capital ecosystem 🏔️ Omri Amirav-Drory at NFX shares his insightful thoughts on how VCs can become assholes over time and explains some faults that may occur even to the best investors. Here are some things to be mindful of when you come across VC investors 👇🏼 1. Being a VC is a tough role when 99% of the time you say "no" whereas, founders tend to be naturally optimistic. 2. They're looking for companies that can generate massive impact to return the fund - known as the power law. It doesn't necessarily mean your business is bad, it just may not be a good fit for the fund strategy. 3. They're typically very time poor - being pulled into meetings, sending e-mails, following up, helping existing portfolio companies, fundraising, conducting due diligence, and the list goes on and on...especially when speed is a founder's advantage. 4. There are inherently cognitive biases in decision-making that prevent investors saying "yes" but company building is a long term game, so what happens today may look very different in a couple of years. I would love to hear your thoughts 💭

https://lnkd.in/d5mxz8pG Yep, 50 percent of VCs will not be able to raise their own fund. That is great news! Maybe they will get it into their arrogant heads their model is broken and needs to change. Pitch Decks and business plans are worthless unless you are investing in a company that produces pitch decks and business plans. Ridiculous way to go about your business.

Double or Nothing. To better align ourselves with investors, we have created a self-imposed hurdle. If we don't double an investor's money, we don't take any carry (performance fees). I'm very proud of our investor-first mentality at Tandem Venture Partners. Everything we do is focused on treating the investor right and being transparent and accountable. This is one of the ways we align ourselves with investors. It also has a good ring–double or nothing. https://lnkd.in/dFaH_C3x

🧟♀️ 𝗩𝗲𝗻𝘁𝘂𝗿𝗲 𝗖𝗮𝗽𝗶𝘁𝗮𝗹 𝗗𝗶𝘀𝘁𝗿𝗶𝗯𝘂𝘁𝗶𝗼𝗻 𝗗𝗲𝗮𝗱𝗯𝗲𝗮𝘁𝘀 🧟♂️ ----------------------------------------------------- Dan Primack (Axios) sheds light on the growing frustration among LPs with the lack of distributions from VC funds. Nearly a third of VC funds raised in 2017 have yet to return capital to their investors, and for 2018 funds, it's even worse with 57% having yet to make a distribution. There are a few reasons for this: a weak M&A and IPO market, VCs recycling capital rather than distributing it, and the fact that early-stage funds don't typically pay out for 5 to 10 years. 💡 While VC portfolios may be dragging their feet, some smart investors are pivoting to 𝗩𝗲𝗻𝘁𝘂𝗿𝗲 𝗗𝗲𝗯𝘁. Why? They enjoy mid-teens income from interest that's contractually obligated, with upside through equity participation in top startups. 📈 It's a reliable alternative, especially when equity returns struggle to keep up. 📚If you want to learn more, check out the book I co-authored for the CFA Institute, "𝗔𝗻 𝗜𝗻𝘁𝗿𝗼𝗱𝘂𝗰𝘁𝗶𝗼𝗻 𝘁𝗼 𝗔𝗹𝘁𝗲𝗿𝗻𝗮𝘁𝗶𝘃𝗲 𝗖𝗿𝗲𝗱𝗶𝘁." Chapter 7 dives deep into how venture debt is providing strong returns in today’s market. 𝗧𝗵𝗲 𝗯𝗼𝘁𝘁𝗼𝗺 𝗹𝗶𝗻𝗲: In a world of delayed exits and unrealized gains, venture debt offers a faster path to returns without sacrificing upside potential. ⚡ ----------------------------------------------------- 🔗𝐋𝐢𝐧𝐤 𝐭𝐨 𝐭𝐡𝐞 𝐟𝐮𝐥𝐥 𝐚𝐫𝐭𝐢𝐜𝐥𝐞 𝐢𝐧 𝐭𝐡𝐞 𝐜𝐨𝐦𝐦𝐞𝐧𝐭𝐬! #VentureDebt #VentureCapital #Startups #Investing #AlternativeInvestments #PrivateCredit #Finance #CapitalMarkets

🧟♀️ 𝗩𝗲𝗻𝘁𝘂𝗿𝗲 𝗖𝗮𝗽𝗶𝘁𝗮𝗹 𝗗𝗶𝘀𝘁𝗿𝗶𝗯𝘂𝘁𝗶𝗼𝗻 𝗗𝗲𝗮𝗱𝗯𝗲𝗮𝘁𝘀 🧟♂️ ----------------------------------------------------- Dan Primack (Axios) sheds light on the growing frustration among LPs with the lack of distributions from VC funds. Nearly a third of VC funds raised in 2017 have yet to return capital to their investors, and for 2018 funds, it's even worse with 57% having yet to make a distribution. There are a few reasons for this: a weak M&A and IPO market, VCs recycling capital rather than distributing it, and the fact that early-stage funds don't typically pay out for 5 to 10 years. 💡 While VC portfolios may be dragging their feet, some smart investors are pivoting to 𝗩𝗲𝗻𝘁𝘂𝗿𝗲 𝗗𝗲𝗯𝘁. Why? They enjoy mid-teens income from interest that's contractually obligated, with upside through equity participation in top startups. 📈 It's a reliable alternative, especially when equity returns struggle to keep up. 📚If you want to learn more, check out the book I co-authored for the CFA Institute, "𝗔𝗻 𝗜𝗻𝘁𝗿𝗼𝗱𝘂𝗰𝘁𝗶𝗼𝗻 𝘁𝗼 𝗔𝗹𝘁𝗲𝗿𝗻𝗮𝘁𝗶𝘃𝗲 𝗖𝗿𝗲𝗱𝗶𝘁."  Chapter 7 dives deep into how venture debt is providing strong returns in today’s market. 𝗧𝗵𝗲 𝗯𝗼𝘁𝘁𝗼𝗺 𝗹𝗶𝗻𝗲: In a world of delayed exits and unrealized gains, venture debt offers a faster path to returns without sacrificing upside potential. ⚡ 🔗𝐋𝐢𝐧𝐤 𝐭𝐨 𝐭𝐡𝐞 𝐟𝐮𝐥𝐥 𝐚𝐫𝐭𝐢𝐜𝐥𝐞 𝐢𝐧 𝐭𝐡𝐞 𝐜𝐨𝐦𝐦𝐞𝐧𝐭𝐬! #VentureDebt #VentureCapital #PrivateEquity #Startups #LPs #Investing #AlternativeInvestments #PrivateCredit #Finance #CapitalMarkets

How pro-rata actually works → Earned, not Given (this is a segment from our in-depth Last Money In Media piece on pro-rata) So here is the thing. I don’t ever hear about investors suing their portfolio company for not getting their pro-rata, although I’m sure threats have been made in which founders may have caved. This is why I don’t always prioritize (for the most part) if we contractually have pro-rata or not. I know that more of the weight on getting my pro-rata down the line falls on my relationship with the company and the dynamic of the round. I realize this approach may be different for some. This is why I feel that pro-rata is really earned and not given, especially at the earlier rounds. I have plenty of examples on both sides where I don’t contractually have pro-rata but I get it, and also where I do contractually have pro-rata, but we’ve been squeezed out due to a competitive priced follow-on round. Was I going to take legal action with my portfolio company? Of course not. I don’t really ever hear of this happening. I’m sure there are some behind the scenes scenarios that lead to a bunch of friction across founders and investors, but I never heard that anyone actually took legal action in the early rounds. That investor would have a tough time defending their “founder-friendly” brand. Whether you’ve got pro-rata or not, when it comes time where the next round is being put together, and assuming this is a competitive round where not everyone gets an opportunity to re-invest or their full pro-rata, it really is up to the founder to decide allocations. So, being helpful to the founder or being friendly becomes important here. This is especially true for syndicates! Sometimes the flexibility in our check sizes or the fact they are smaller versus institutional can be an advantage here as it might be easier to fit our smaller check size in. Not always the case, but if you are in touch early with the founder as they are piecing the round together, it certainly can play to our benefit. Link to full Last Money In Media post in comments. -- Powered by Sydecar and Forge, Last Money In Media is the most actionable venture capital newsletter. Written by Zachary Ginsburg and Alex Pattis, the global syndicate leaders with 800+ SPVs invested.

💰💰The Haatch / Crowdcube partnership has only served to strengthen our belief that the democratisation of #earlystage #investing is an important mission. 📈 The launch of a lower minimum investment product has created an unprecedented spike in demand for our #seis fund - and it is still only early days. 🤙 There's still time to get involved as Fred Soneya explains below, and remember don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you are unlikely to be protected if something goes wrong. Take 2 mins to learn more. https://lnkd.in/ehRpQA8y

Unsure of the jargon and key terms of Venture Capital and Private Equity? Good news — EISA Member DWF has a new comprehensive A to Z glossary. 📖 Whether you’re an investor, entrepreneur, business leader, or similar, navigating the complexities of Venture Capital and Private Equity transactions can be confusing. 🤔 With this list of key terms from DWF, you can ensure you’re familiar with everything there is to know — from EIS, LBO, ROI, Series A,B,C, and more. ✅ Access the glossary below, titled: Understanding the language of Venture Capital and Private Equity: a glossary of key terms 👇 https://lnkd.in/dfYaXskB Kindly created by Dhruv Chhatralia BEM, Alex Stoughton and Sarah Deloison of the DWF Corporate team. 👏

Last week we (Claire and Amir) posted about how to get into angel investing (in the UK). This led to a lot of direct follow-up questions. As such this week we are posting around one of the most common questions we saw... "What is the difference between the various funding rounds? " So we break down terms like 'friends and family', 'pre-seed', 'seed', 'bridge' rounds etc.. As always we would be greatful: * If you can message any corrections or additions we need to make * Please comment if you have any questions * Reshare if you think this is of value to your network https://lnkd.in/eW8ZipJW