Found’s Post

One of the most common reasons but least talked about a VC declining to fund a startup is their Cap table! Typically founders set an expectation of a certain fund raise with a specific percentage of their dilution to their shareholding in the company! When the funds dries up then next round is planned and so forth! More investors, less equity to founder and over valuation problems. Managing expectations become bigger problems and business idea fights to survive. Problem lies in isolated thinking where founder want to focus what would come to the company bank account and keep moving the exit clause timelines with the earlier investors. Unless founders doesn’t start thinking on the lines of giving secondary exits to earlier investors, the ecosystem can’t flourish nor the problem of over dilution with multiple investors can get resolved. A force exit is never ideal nor requires a condition for a company to become profitable.

InvestmentNews covers Farther's big announcement: closing our $31M Series B! Quoting Justin Overdorff, Partner at Lightspeed Venture Partners: “Farther is actively disrupting the conventional norms of wealth management, crafting a dynamic platform that empowers advisors and paves the way for scalable expansion.” Read more here: https://bit.ly/45azBnF. #gofarther #wealthmanagement #financialadvisor #wealthtech #teamfarther

Elsewhere Partners Closes $258M Fund III to Back Growth-Ready Tech Companies 🚀💸 👏Elsewhere Partners, the Austin, TX-based tech-focused private equity firm, has successfully closed its third fund, Fund III, at $258 million. This latest fund will enable Elsewhere Partners to continue its strategy of making significant investments in growth-ready software companies, with investments ranging from $20 million to $50 million. 📝Since its inception in 2016 by Austin Ventures alumni Chris Pacitti and John Thornton, Elsewhere Partners has been dedicated to supporting lower middle market software companies poised for growth. The firm's investment focus is on companies led by strong technical founders that have achieved revenues between $3 million and $12 million. 🤝Elsewhere Partners aims to provide not only capital but also comprehensive support across various business functions. Their expertise spans go-to-market strategies, product development, talent acquisition, finance, and overall strategic guidance. This hands-on approach is designed to help portfolio companies scale and achieve their growth potential. 💰To date, Elsewhere Partners has invested in 17 companies across North America, Europe, and Israel. The successful closure of Fund III marks a significant milestone for the firm, positioning it well to continue identifying and nurturing high-potential software companies on a global scale.   ✅ Looking to raise capital for your #VCfund and increase the international pool of your LPs?   🤝 Need warm #LP introductions?   📝 Selling #secondaries to increase liquidity?   🧐 Looking for co-investments (Series A/Series B)?   ▶ Please use G+QUANT's link for inquiries and fund decks #PrivateEquity #TechInvesting #GrowthCapital #ElsewherePartners #SoftwareInvestment #Fundraising #VentureCapital #TechGrowth

The hurdle for Series A funding is a lot higher than it was a year ago — and investors in seed-stage companies are having to respond. When the market abruptly turned in the spring of 2022, late-stage companies were the first to feel the pain. But that downward financial pressure has more recently made its way to earlier-stage companies, which are getting lower valuations in their next round. https://lnkd.in/eQftcth5

👉 Kinds off Financial events take place in the Private Markets? Home to millions of professionals and companies, the private markets are a fast-growing, fast-moving arena where major financial events and transactions take place. Here, venture capital and private equity firms raise funds and invest in promising targets. Startups receive mergers, make acquisitions and navigate changes like restructuring, management shifts or office moves because these events indicate the company or firm needs new products or services, understanding private market activity is a powerful, efficient way to uncover business opportunities. We’ve highlighted the key events you should know about below—dive in! 👉 Key Events #Openingafund When a VC or PE firm opens a fund, it’s in the process of raising a large pool of capital, which it will then use to invest in promising private companies. VC and PE firms raise this money from limited partners. #Closingafund When a VC or PE firm closes a fund, it has completed the fundraising process and is focused on investing in private companies. #Limitedpartnercommitment VC and PE firms receive the capital they need to invest in promising companies from limited partners When a limited partner agrees to contribute a certain amount of capital to a VC or PE firm’s fund, it makes what’s called a commitment. #SeedRound When a venture capitalist provides an early-stage company with a relatively small amount of capital to be used for product development, market research or business plan development, it’s called a seed round. As its name suggests, a seed round is often the company’s first official round of funding. Seed round investors are typically given convertible notes, equity or preferred stock options in exchange for their investment. #PrivateMarkets #PrivateEquity

Corporate venture building and venture equity are both growth strategies but what’s the difference?👇 I’m increasingly using the term venture equity when talking about new business opportunities for corporates. While venture building focuses on exploring, launching, and scaling business opportunities from scratch, venture equity combines it with a private-equity-type approach to boosting businesses’ value through financial management and operational improvements. Venture equity involves acquiring full ownership of companies showing initial traction and injecting resources and operational support to fine-tune the value proposition and rapidly scaling. Is venture equity a shortcut for venture building, and can it reduce risk?💡 #CorporateVentureBuilding #VentureEquity #InnovationStrategies

congratulations ▲ Ben Williamson and InvestorHub. Great write up in the The Australian Financial Review. Local venture capital firms Archangel Ventures and Flying Fox Ventures also participated in InvestorHub’s latest raise. The start-up plans to raise an additional $1 million from its clients who want a stake in the company, which will bring its series A round to $9 million. InvestorHub introduced #AI tools to translate investor communications into different languages - very effective ASX/LSE listed companies with European shareholders or Australian businesses with dual listings in places like Börse Frankfurt. This is exactly what the market has needed. #investorrelations #capitalmarkets #venturecapital

Investors raise billions to buy discounted stakes in start-ups Happy Friday! Investment firms are raising billions of dollars to buy stakes in venture capital-backed technology start-ups, as a long drought in acquisitions and initial public offerings forces early investors to offload their stock at discounts. The start-up secondary market, where investors and employees buy and sell tens of billions of dollars’ worth of shares in privately held companies, is becoming an increasingly important trading venue, in the absence of traditional ways of cashing out and given a slowdown in start-up funding. Venture secondaries buyers are primed for a busy year as start-up employees look for a way to sell their stock and investors look to return capital to their own backers or reallocate it elsewhere. Secondary market specialist Lexington Partners last week announced a new $23bn fund to buy up stakes from “large-scale investors". Lexington had originally aimed to raise $15bn, but upped its target on the back of high demand, and said it was “in the early stages of a generational secondary buying opportunity” that could last years. The fund will predominantly buy shares from private equity funds but also expects to invest as much as $5bn into venture capital secondaries. #investments #billions #discount #stakeholders #investors

Lightspeed is exploring a continuation fund for $1 billion of startup stakes, according to a report. The firm’s Chief Business Officer Michael Romano said, “We think VCs can’t just use the excuse that the IPO window is closed, they need to take a page out of the private equity playbook and build more consistent liquidity that LPs can count on." #Secondaries #Secondary #SecondaryMarket #AlternativeInvestments #PrivateMarkets #Venture #VentureCapital #VC https://lnkd.in/eJVCqsSR

"The hurdle for Series A funding is a lot higher than it was a year ago — and investors in seed-stage companies are having to respond." That was the first sentence of a TechCrunch article I read recently. And we're seeing it firsthand at York IE. Series A investors have either remained on the sidelines or raised the floor in terms of the metrics required to fund companies. So we are spending a lot of time with our portfolio companies that are caught in the state of limbo this has created. The good news is, founders are becoming more thoughtful in regards to efficient growth and finding a path to profitability vs. pursuing growth at all costs. A company that might have defaulted to "we need to raise a Series A" in the past may now realize that they only need a bridge round to get to profitability. And then they won't have to raise anymore. I'm also cautiously optimistic that M&A activity will increase in the sub-$250M market this year, which could be a good path for some companies. 2023 was a tough year, but we knew it was coming and were prepared. I have a very positive outlook for 2024 and am excited for what's to come.