Anshuman Sinha’s Post

Hi dear friends and followers, This is my traditional annual summary of my business angel activities over the last 12 months. ✅ 2023 was challenging; that's a fact we're all familiar with. Unfortunately, my prediction from a year ago that fundraising would become even more difficult turned out to be accurate. For many companies, minimizing expenditures and increasing run rates became imperative. In cases where existing investors were unwilling or unable to provide bridge financing, the outcome was often a firesale or the liquidation of the company. While, in many instances, this represented a long-overdue correction, it, regrettably, impacted even 'good' companies. In this challenging environment, all the companies within the Hans(wo)men Group performed admirably. Those who had to adjust their cost structures successfully navigated the changes, while those already at break-even or profitable stages continued to grow as planned or even exceeded expectations Perhaps owing to our more cautious investment approach compared to many venture capitalists, we have consistently avoided endorsing extravagant burn rates. Having a contingency plan in place is much more manageable when operating with lower burn rates 😎. In 2023, our focus shifted towards consolidation within our portfolio. We dedicated substantial efforts to portfolio management, including 14 follow-on investments and eight bridge loans into existing portfolio companies. ✅  With our great team, the strong and talented individuals Lisa Pallweber, - Helena Torras -, and Pavlina (comprising a 75% female team!), we are well-prepared to navigate whatever comes our way and make the best out of the circumstances. #happyhansi 😇 ✅ Statistics: 39 total startup transactions (=money/shares involved):   ➡️ 24 (last year: 33) investment transactions ·      1 (6) NEW lead investment: WoWplay ·      6 (10) NEW CO-investments (Vitaance, Ohana, trppn, reebuild. +2) ·      3 (9) NEW fund investments ·      14 (8) equity-investments in the existing portfolio (Ada Growth, Shopstory, Storebox, LEVY Health, Doshi, MEETOPTICS, Anyline, credi2, techbold technology group AG, Mimo, hello again +3) ➡️ 8 (8) bridge/convertible loans ➡️ 1 (0) exit (very small 😎) ➡️ 3 (0) writeoffs ➡️ 3 (5) other operations (typically with heavy workload) - LineMetrics (restructuring with promising restart), Coinpanion (merged into Altify), +1 ➡️➡️ Our current portfolio includes now 51(49) active startup-investments + 17 VC investments ·      33 active members of Hans(wo)men Group (plus 12 alumni) ·      31 out of the 51 are companies based in Austria   Thank you to all startup founders - nothing of this would be possible without you 🙏. My big personal goal for 2024 is getting healthier and being able to do sports again 🙏 .   I wish all of you a wonderful New Year 2024. Stay (or get) healthy & positive. Take care but conquer the world. Love people (and tell them). And never give up :-).   All the best Hansi

VCs love the idea of continuation funds. Here's why there aren't more of them. #startup  #fundraising  #angelinvestor  #investments  #VentureCapital  #vc #Entrepreneurship  #venturefunding  #investing #TechNews #Innovation #technology  https://lnkd.in/e3i3B4Eb

Over the next few weeks, First Avenue will present a series of blog posts about new and evolving dynamics in seed funding and financing by our Principal, Mike Goodrich. Today's post covers the post-covid re-evaluation of risk in seed-investing markets as well as how founders and investors can have more productive pre-investment conversations about risk. #startups #founders #funding #financing #seedinvesting #businessrisk #risk

𝗥𝗮𝗶𝘀𝗶𝗻𝗴 𝗳𝘂𝗻𝗱𝘀 for startup investing 𝗶𝘀 𝗻𝗼𝘁 𝗲𝗮𝘀𝘆, specially 𝗳𝗼𝗿 𝗻𝗲𝘄 𝘀𝘆𝗻𝗱𝗶𝗰𝗮𝘁𝗲𝘀. As we have been working towards setting up an angel syndicate (VentureVista Investments) over the last several months, we have faced 𝗻𝘂𝗺𝗲𝗿𝗼𝘂𝘀 𝗰𝗵𝗮𝗹𝗹𝗲𝗻𝗴𝗲𝘀. Some of the challenges are as follows: • 𝗟𝗮𝗰𝗸 𝗼𝗳 𝗧𝗿𝗮𝗰𝗸 𝗥𝗲𝗰𝗼𝗿𝗱 Without a proven history of successful investments, gaining trust and confidence from potential investors is difficult. • 𝗟𝗶𝗺𝗶𝘁𝗲𝗱 𝗡𝗲𝘁𝘄𝗼𝗿𝗸 Established syndicates have extensive networks of investors, advisors, and industry contacts, which new syndicates may struggle to build quickly. • 𝗠𝗮𝗿𝗸𝗲𝘁 𝗖𝗼𝗺𝗽𝗲𝘁𝗶𝘁𝗶𝗼𝗻 The fundraising environment is highly competitive, with many syndicates competing for limited capital. Differentiation and a compelling value proposition are crucial. • 𝗥𝗲𝗽𝘂𝘁𝗮𝘁𝗶𝗼𝗻 𝗮𝗻𝗱 𝗖𝗿𝗲𝗱𝗶𝗯𝗶𝗹𝗶𝘁𝘆 Building a reputation and establishing credibility takes time, requiring demonstration of expertise and rigorous due diligence processes. • 𝗜𝗻𝘃𝗲𝘀𝘁𝗼𝗿 𝗘𝗱𝘂𝗰𝗮𝘁𝗶𝗼𝗻 Educating potential investors about the syndicate’s unique value proposition and investment philosophy can be challenging. • 𝗘𝗰𝗼𝗻𝗼𝗺𝗶𝗰 𝗖𝗼𝗻𝗱𝗶𝘁𝗶𝗼𝗻𝘀 Broader economic conditions, such as downturns or market volatility, can impact investor willingness to commit funds, leading to increased scrutiny. • 𝗥𝗲𝗴𝘂𝗹𝗮𝘁𝗼𝗿𝘆 𝗮𝗻𝗱 𝗖𝗼𝗺𝗽𝗹𝗶𝗮𝗻𝗰𝗲 𝗜𝘀𝘀𝘂𝗲𝘀 Navigating regulatory landscapes and ensuring compliance can be complex and resource-intensive. • 𝗖𝗮𝗽𝗶𝘁𝗮𝗹 𝗔𝗹𝗹𝗼𝗰𝗮𝘁𝗶𝗼𝗻 Convincing investors to choose a new syndicate over established or alternative investment opportunities is challenging. • 𝗣𝗲𝗿𝗳𝗼𝗿𝗺𝗮𝗻𝗰𝗲 𝗣𝗿𝗲𝘀𝘀𝘂𝗿𝗲 New syndicates may face pressure to deliver quick wins to attract and retain investors, leading to higher risk-taking. • 𝗥𝗲𝘀𝗼𝘂𝗿𝗰𝗲 𝗖𝗼𝗻𝘀𝘁𝗿𝗮𝗶𝗻𝘁𝘀 Building and managing a syndicate requires significant resources, which new syndicates may lack compared to established players. However, to every challenge there are ways to overcome them. In my subsequent posts, I will cater to a few of the things that we have been doing in order to overcome challenges that we face as VentureVista Investments. #AngelInvesting #VentureCapital #FundRaising #Startups #Investing #Entrepreneurship

As mentioned earlier in previous posts, I think some of the rules around seed investing are changing. This is my first blog on the topic. I welcome your feedback.

Liquidise launches to solve private company equity liquidity #startups #startupnews #australianstartups #fintechstartups #australianfintech #fintech #fintechnews #finance #equity #liquidity

Founders rightly focus on impressing the VC in front of them. But, it's crucial to understand that these VCs themselves answer to those who fund their funds – Limited Partners (LPs). Most founders don’t get it, but LPs expectations and demands shape what VCs fund. .. I thought, it would be good to cultivate more discourse on the subject. Thus, I sat down and penned some thoughts around the common perceptions versus the often-murkier reality. .. Myth 1: "LPs Just Want Outsized Returns" While true, it's more nuanced. Time horizons, risk tolerance, and the desire for positive impact alongside financial gains vary greatly between LPs (pension funds vs. family offices vs. endowments etc). The VC fund's strategy needs to align with who's backing them. This directly impacts which startups even get serious consideration. .. Myth 2: "LPs Are Out of Touch with Startup Reality" Some are, but with the rise of institutional LPs, you often have ex-founders or sector experts calling the shots. This can be a double-edged sword – deep insights, but also potentially narrower focus on replicating their own past success vs. truly disruptive bets. .. Myth 3: "It's All About the Big Exits" Consistency matters. LPs want a portfolio approach, not just home run swings. A fund stacked with 'unicorns' but too many duds is less attractive than steady, if less headline-grabbing, returns. This impacts how aggressively VCs push for exits that may not be in the founder's best long-term interest. .. What does all of this mean for the founders? -> Research the VC's LPs. Are they aligned with your sector/stage? A mismatch means wasted effort, even with a supportive partner -> Managing Up: Strong founders build relationships with LPs, not just 'their' VC. This creates allies when tough decisions (pivots, down rounds) loom -> Tailor the Narrative: A sustainability-focused pitch won't land as well with a fund backed by an oil magnate. Highlighting the path to consistent profitability alongside the 'moonshot' potential shows you get the broader game .. This is a power dynamic rarely discussed openly. But, I really feel that understanding the VC's 'bosses' helps you strategize wisely from your first pitch onward. .. And if you need any help when fundraising, our fab investment banking team at Dexter Capital Advisors is always there to help. Reach out at devendra.agrawal@dextercapital[dot]in Likewise for Dexter Ventures, our micro VC arm that recently invested in Medulance and Atomgrid. Share with us what you are building at deals@dexter[dot]ventures Best, Devendra Tags: Anuradha, Jayant

Corporate #investors backed 27% fewer #funding rounds in 2023 and the value of the #startup deals they backed fell even more dramatically. The number of active #CVCs in the market is down 17%, as many have opted to sit out poor market conditions.

Growth investors' liquidity crunch drives new secondaries vehicles #startup  #fundraising  #angelinvestor  #investments  #VentureCapital  #vc #Entrepreneurship  #venturefunding  #investing #TechNews #Innovation #technology https://lnkd.in/eGXxiBhW

Idea: in 2024, high growth technology companies utilising debt to fuel inorganic growth💡💹   Why is there an expected uptake in growth credit used in M&A this year? One Ventures Partner, Nick Gainsley says, leveraging debt in acquisitions, allows the realisation of synergies before revaluation. Noteworthy is InDebted utilising OneVentures debt for its M&A strategies. Check out today's article from James Arbuthnott at Capital Brief, exploring the growing trend of growth credit in startup M&A and sharing valuable insights on using credit strategically for business expansion👇