Harmonic’s Post

“Specifically, we want to work for gritty founding teams that are learning machines, passionate about their space, and aim to make a meaningful impact in the world.” Maxine Minter spills the tea with Simon Thomsen and Startup Daily. Get her insights on our investment strategy, the funding landscape, the AI hype cycle, the biggest opportunities for Australian founders, and our hopes for more micro funds emerging alongside us in the Australian landscape. Oh, and a little something about closing Fund 1 🎉😉 Read the full scoop here: https://lnkd.in/gWzD8SHE

We're at an interesting point in the venture cycle - many companies were funded (and overfunded) that shouldn’t have been in this last cycle. And it’s just now starting to become clear which companies have a path forward, vs those who don’t (never found product market fit, limited product differentiation, etc). For companies in the latter bucket, the sooner they realize this and can act (ie soft land the plane to an acquirer), the better. There can be false hope in a large balance sheet flush with cash from the 2021 funding cycle, but toiling for years when the writing is on the wall today isn’t good for anyone, especially and most importantly for founders and employees. And different investors can have different "reactions" and incentives here. Late stage investors can be too reactive and impulsive when times get hard. Startups are never an up and to the right journey, they're filled with bumps along the way. Early stage investors may want to hold onto their call options given their funds are deeply driven by power law outcomes (0x, 1x, 2x all the same, it's either 100x+ or doesn't move the needle). Important for founders to understand these dynamics when talking to their board about what they should do when times are hard (and they're hard for everyone right now). Lots of intellectually honest conversations on this topic between founders, execs and their board are needed in this coming year…The biggest question to ask: "Are we walking dead or will we make it out of this." And again, big balance sheets can be misleading / make this discussion more confusing

𝐒𝐭𝐚𝐫𝐭𝐮𝐩 𝐄𝐜𝐨𝐬𝐲𝐬𝐭𝐞𝐦 𝐰𝐢𝐭𝐡 𝐅𝐫𝐚𝐧𝐤 𝐂𝐡𝐞𝐧: 𝐀 𝐕𝐢𝐬𝐢𝐨𝐧 𝐟𝐨𝐫 𝐁𝐮𝐢𝐥𝐝𝐢𝐧𝐠 𝐓𝐨𝐦𝐨𝐫𝐫𝐨𝐰’𝐬 𝐆𝐢𝐚𝐧𝐭𝐬 On March 11th, we were fortunate to invite Frank Chen, the architect behind our Early Stage Venture (ESV) Programs team at Andreessen Horowitz. At the helm of developing pivotal resources like the Founder Library and an LLM-based chatbot interface, Frank’s insights into the startup world were both profound and practical. Here are some things we learned from Frank: 𝐌𝐚𝐬𝐭𝐞𝐫𝐢𝐧𝐠 𝐭𝐡𝐞 𝐀𝐫𝐭 𝐨𝐟 𝐓𝐢𝐦𝐢𝐧𝐠 𝐚𝐧𝐝 𝐇𝐚𝐫𝐦𝐨𝐧𝐲: According to Frank, the secret ingredients to startup success extend beyond mere innovation; they lie in the nuanced understanding of market timing and the synergy within founding teams. His advice to engage in candid discussions about goals, expectations, and strategies underscores the importance of alignment and resilience in the face of adversity. 𝐈𝐧𝐯𝐞𝐬𝐭𝐢𝐧𝐠 𝐰𝐢𝐭𝐡 𝐈𝐧𝐭𝐞𝐧𝐭𝐢𝐨𝐧: Frank’s investment philosophy boils down to balancing optimism with realism. He champions the potential of startups to revolutionize industries, advocating for a visionary yet pragmatic approach to evaluating their prospects. This dual focus on groundbreaking ideas and thorough due diligence forms the cornerstone of sustainable venture growth. Frank’s narrative is a testament to the transformative power of strategic investment, dedicated support, and visionary leadership. As we delve into the intricacies of startup growth and technological advancement, let’s draw inspiration from his journey: to envision broadly, act boldly, and build wisely. 𝘞𝘦 𝘸𝘰𝘶𝘭𝘥 𝘭𝘰𝘷𝘦 𝘵𝘰 𝘩𝘦𝘢𝘳 𝘺𝘰𝘶𝘳 𝘵𝘩𝘰𝘶𝘨𝘩𝘵𝘴 𝘢𝘯𝘥 𝘲𝘶𝘦𝘴𝘵𝘪𝘰𝘯𝘴 𝘣𝘦𝘭𝘰𝘸. 𝘞𝘩𝘢𝘵 𝘢𝘴𝘱𝘦𝘤𝘵𝘴 𝘰𝘧 𝘍𝘳𝘢𝘯𝘬’𝘴 𝘱𝘩𝘪𝘭𝘰𝘴𝘰𝘱𝘩𝘺 𝘳𝘦𝘴𝘰𝘯𝘢𝘵𝘦 𝘸𝘪𝘵𝘩 𝘺𝘰𝘶? 𝘏𝘰𝘸 𝘥𝘰 𝘺𝘰𝘶 𝘦𝘯𝘷𝘪𝘴𝘪𝘰𝘯 𝘢𝘱𝘱𝘭𝘺𝘪𝘯𝘨 𝘵𝘩𝘦𝘴𝘦 𝘪𝘯𝘴𝘪𝘨𝘩𝘵𝘴 𝘵𝘰 𝘺𝘰𝘶𝘳 𝘦𝘯𝘵𝘳𝘦𝘱𝘳𝘦𝘯𝘦𝘶𝘳𝘪𝘢𝘭 𝘫𝘰𝘶𝘳𝘯𝘦𝘺 𝘰𝘳 𝘪𝘯𝘥𝘶𝘴𝘵𝘳𝘺 𝘪𝘯𝘯𝘰𝘷𝘢𝘵𝘪𝘰𝘯? 💡

Thanks again to Amit Chowdhry for the Pulse 2.0 write-up where we discussed Thomson Reuters Ventures' evolving investment thesis, significant milestones, and reflected on past investment success stories like Kahoot!. It’s very cool to see my daughter, now a teacher, still using Kahoot in her classroom! We started TR Ventures in January 2022 and have completed 17 investments in just two years. Since inception, we’ve leaned more into AI with a vertical focus, particularly in areas like tax and legal industries that benefit significantly from early-stage AI technology. Looking ahead, my goals are to ensure a strong return for the fund and to bring early tech signals into our product and engineering teams. These efforts will not only enhance our strategic direction but also strengthen our ability to innovate and lead in the tech space. 📣 MDs, what goals are you focusing on over the next 12 months? #VentureCapital #Innovation #AI #Startups #TechLeadership

👀More than meets the eye: How Zachary DeWitt reads between the lines when evaluating investments Ever wonder about the hidden considerations investors, especially seasoned ones, are taking into account when evaluating a startup? Read more on the Wing blog to discover the non-obvious factors investors weigh when making an investment decision. https://lnkd.in/dvNqpp4N

Growth and funding can be exciting for any business, but the truth is that any serious investor will want to see you have your house in order. Many great companies miss out on opportunities because they aren’t prepared to tell their company’s story and vision. They don’t have the data organized and they don’t have a clear plan of how they will leverage the funds they are asking for. Having a great product with a brilliant set of machine learning models is fabulous, but you need to ensure your brand’s business side is ready for the other players involved when you go for funding. Many businesses jump straight looking for a VC firm, Angel Investor, or jump to other investment sources without being prepared. In these cases, an accelerator might be a great place to start. Read more here: https://lnkd.in/dvzyJf5c

From Seed to Series A: A Startup Journey AlphaFund is a premier magazine dedicated to showcasing the entrepreneurial spirit and innovation of founders across North America who are in the process of raising new rounds of funding. As a leading publication in the venture capital and startup ecosystem, AlphaFund provides an in-depth look into the journeys of emerging and established companies, highlighting their challenges, successes, and strategies in securing financial backing. With a keen focus on the dynamic landscape of venture capital, AlphaFund offers its readers exclusive insights into the latest trends, investment opportunities, and market analyses. Each issue features compelling stories of founders who are making significant impacts in their industries, sharing their experiences from initial concept to Series A and beyond. These narratives not only inspire but also educate aspiring entrepreneurs and investors about the intricacies of fundraising and business growth. AlphaFund's content is meticulously curated to serve a wide audience, including venture capitalists, angel investors, startup enthusiasts, and policy makers, providing them with valuable information to make informed decisions. Through interviews, case studies, and expert columns, the magazine fosters a community of thought leaders and innovators, driving forward the conversation on technology, business development, and financial strategies. As a top magazine, AlphaFund stands out for its quality journalism, comprehensive coverage, and its commitment to empowering the next generation of business leaders. It is not just a publication but a platform that bridges the gap between ambitious founders and the investment community, making it an essential resource for anyone involved in the venture capital ecosystem. www.myalphafund.com #AlphaFund #Founders #Venture_Capital #Series_A #Seed_Round

Understanding the key factors that determine a venture's success is crucial. 🌟 In the world of venture capital, understanding the key pillars that drive success can be game-changing. Evaluating a venture through a structured lens helps in identifying potential risks and opportunities. By focusing on these five essential pillars—Team, Problem, Solution, Market, and Traction—you can build a comprehensive view of a venture’s potential and make more informed investment decisions. 1️⃣ Team: The cornerstone of any startup. A team with relevant backgrounds and experience working together is paramount. Their synergy and resilience can be the difference between success and failure. 2️⃣ Problem: Is it derived from genuine customer discovery and a deep-seated obsession? A well-defined problem often paves the way for impactful solutions. 3️⃣ Solution: Initially, the solution can be basic. What truly matters is a thoughtful vision and a well-planned roadmap that guides the journey ahead. 4️⃣ Market: Aim for ventures with potential for significant impact. It's not just about a good outcome for a few; it's about creating venture-scale opportunities that can transform industries. 5️⃣ Traction: Early traction, like pilot programs, is a positive sign. However, a clear and effective distribution strategy is critical to sustaining and scaling that initial momentum. *BONUS* Network: The Team’s ability to demonstrate how their network of peers, advisors, investors, and supporters will supercharge their company, enable customer acceleration, and early adoption of their product via pilots to paying customers. In short, a network that creates unfair advantages to competitors and other players in the space By rigorously evaluating these pillars, you can better gauge the risk and opportunity landscape, making informed decisions that drive growth and success. 🚀 #innovation #riskmanagement #opportunity #venturescale #startupsuccess

In 2024, securing venture capital requires more than just a groundbreaking idea. It demands strategic communication, financial transparency, industry expertise, and a keen eye for relationship dynamics. Mastering these aspects increases your chances of securing funding, forging successful, long-term partnerships with investors that drive growth and innovation, and ultimately positioning your startup for sustained success in the evolving market landscape. #VentureCapital #StartupSuccess #Entrepreneurship

Novel secures $15 million in pre-series A funding #Novel, a pioneering #fintech company, has successfully closed a $15 million oversubscribed Pre-Series A round. Co-led by IGNIA Partners and Ulu Ventures, with participation from MatterScale Ventures, Gaingels, and previous investors, this funding round propels Novel's total funding to over $130M. The company was founded by CEO Carlos Antequera and COO Keith Harrington, both of whom bring extensive entrepreneurial experience to the table. They are supported by a robust group of investors, including IGNIA Partners, Ulu Ventures, MatterScale, and Gaingels, along with previous investors. Novel's innovative approach to providing non-dilutive capital and strategic tools is reshaping how tech founders fund and grow their businesses. By leveraging AI and real-time data, Novel’s Capital-as-a-Service model democratizes access to growth capital, ensuring founders make strategic fundraising decisions. In a time where VC activity has slowed and traditional banks face challenges, Novel offers a lifeline to growth-oriented tech companies. Their platform provides non-dilutive capital and essential tools for optimizing the capital stack, offering quick and transparent access to capital. Novel’s mission to support tech entrepreneurs goes beyond funding. Their Capital Intelligence™ platform empowers founders with the insights and capital needed to scale faster and achieve better exits. With a projected doubling of growth in the next year and reaching profitability within 18 months, Novel is set to transform the funding landscape for SaaS companies and beyond. The article on Finextra in the first comment. Want to stay up to date with the market? Here my newsletter: - Linkedin: https://t.ly/s541W   - Substack: https://lnkd.in/dzfGJzmW