HKMC’s Post

Let’s talk about Venture Capital… As someone who has worked in a number of startups it’s space I know a lot about and love being in, however investing in VC funds has never really seemed possible. I always felt like an outsider, at some points I either felt like I didn’t have enough money to invest, or just didn’t know how to get my foot in the door. This was the conversation Calin Coman-Enescu, CFA and I have been having for the last few years and why we started Old Street Ventures. We want to make investing in venture capital funds accessible to every day investors. At Old Street Ventures we’re building a platform providing mass market retail investors access to VCs via liquid FoF-style products based on unit trusts. Our approach is compatible with ISAs/SIPPs, US IRAs, global investors and investment platforms, with minimums as low as £1,000. In a space that might make you feel like an outsider, we’re building a way for you to be part of it! If you’re interested in investing in VC, you can follow along on our journey by signing up here: https://lnkd.in/e7KJMuVC #venturecapital #alternativeinvestments

In Silicon Valley, partnering with Peter Thiel is highly coveted. Yet, the challenging venture capital environment has led even Valar Ventures LLC , co-founded by Thiel, to raise a significantly smaller fund this year. Key Points: 1) Raised $300M, less than half of the previous $665M fund. 📉 2) Tiger Global Management, Insight Partners , and Founders Fund have also lowered their targets. 🏷️ 3) Valar’s wins with Wise and Stash contrast with losses like BlockFi and Breather. ⚖️ 4) Future Focus: Valar’s shift to global fintech is key to navigating the current market. 🌍 The current VC landscape shows that even big names have to adapt to new challenges. How are your funds adjusting strategies in this tough market? #VentureCapital #Fundraising #SiliconValley #Investment #Fintech #

Seed VCs are turning to new ‘pro rata’ funds that help them compete with the big firms Alpha Partners, SignalRank and now SaaS Ventures help seed VCs pay for shares when big VCs try to price — or push — them out Lee Edwards, partner at Root VC, has a saying at his firm that “pro rata rights are earned, not given.” That may be a bit of a stretch since pro rata refers to a term that VCs put in their term sheets that gives them the right to buy more shares in a portfolio company during consequent funding rounds to maintain an ownership percentage and avoid dilution. Still, while these rights are not exactly “earned,” they can be expensive. One of the latest trends in VC investing these days are funds dedicated to helping seed VCs exercise their pro rata rights. https://lnkd.in/dRM3RvdA By Christine Hall

Summary: Early-stage VC firm Kearny Jackson has secured $65 million in capital commitments for its third fund. The bi-coastal firm primarily invests in B2B SaaS and fintech infrastructure. Key takeaways: Kearny Jackson emphasizes time to value for its portfolio companies and has a mix of LPs from various backgrounds including Sequoia and Marc Andreessen. The larger fund size gives the duo more leverage to execute their strategy of gaining more ownership in their portfolio companies. The firm has made notable investments in companies like Motherduck, Cortex, and Comulate with its first two funds. Counter arguments: Some may argue that the smaller ownership stake targeted by Kearny Jackson may not be as favorable to founders. The firm's reliance on LPs for funding may limit their ability to make riskier investments.

"Given the drop off or the “graduation” to traditional venture funds, this leaves me to believe that the majority of the syndicate leads who are still remaining (from pre-2022) are indeed some of the top syndicate leads as it relates to consistency of bringing quality deals to the table and providing a positive LP experience. While there’s much more to it (i.e. IRR, MOIC, DPI etc.), in this shorter timeframe, I do think it’s a testament to those syndicate leads who have remained constant through the rapid market changes and shifts. A lot of people say the best (or most followed) newsletters, podcasts, and social media influencers are those who simply remain consistent without giving up. I think part of this is true for syndicate leads as well. It’s a lot of work, it’s an absolute grind trying to make each deal happen, and working with a high volume of LPs with varying personalities/thoughts all make it a very hard job. Therefore, the syndicate leads who remain consistent over the years must be doing something right to survive and continue to put the work in to syndicate deals and successfully have LPs commit the amount necessary to invest in startups. In many ways, this is similar to venture funds who go on to raise fund 2, 3, 4, 5 & beyond. Of course performance will vary, but if you get to fund 5, you are likely doing something right to have LPs enthusiastic to commit to fund after fund, after fund." https://lnkd.in/g96HEe9E

Big news from Index Ventures! We’ve raised $2.3bn in new funds—an $800m venture fund and a $1.5 billion growth fund. Across nearly three decades of investing, this latest announcement is possible because of a strong foundation built by exceptional entrepreneurs, incredible LPs, and a team of investors, strategists, and operators all deeply committed to our craft. 108 Index-backed companies have reached a valuation of $1 billion or more, 23 have surpassed a $10 billion valuation, and 57 became publicly traded companies. I look forward to seeing what the next generation of entrepreneurs will create. I can only imagine it will be even better than what I can envision today :) https://lnkd.in/gDxiN8ig

US venture capitalists are playing it safe with ~$300bn in unspent funds. Rather than taking risky bets on Silicon Valley start-ups, they are focused on finding ways to return capital to their own backers. This trend highlights the importance of due diligence and risk management in the world of venture capital. It's crucial for investors to carefully evaluate opportunities before making a move. What are your thoughts on this? #VentureCapital #Investing #SiliconValley #DueDiligence #RiskManagement

Demand for VC funds that double down on winning investments is shifting as investors see their best companies as overvalued, overcapitalized and without a clear path to go public. GPs typically run opportunity funds to back standout portfolio companies as they mature. The pitch to LPs is that it increases exposure to growth-mode companies on the verge of profitability or an IPO. With the IPO slowdown, that pitch has fallen flat. VCs have dialed back their opportunity offerings—or reoriented those strategies to go after secondary stakes in startups or other venture funds. https://lnkd.in/g4cyPe_T #lps #bearish #venturecapital #vc #opportunityfunds #vcfunds #gps #ipo #slowdown

Fyi: “If you need more data on fund behavior and performance, give me a shout in the comments for a link to the waitlist for our very first Fund Performance Report. Especially useful for emerging fund managers and the LPs who invest in them.” St. Louis Region and Beyond for #Founders, #StartUs, and Others. All of post: “VCs perking back up? In total, US venture funds and SPVs that use Carta Fund Admin called $7 billion in capital over the first two quarters of 2024. That's a solid bump up from the $5.4 billion called in the first half of 2023. As a reminder, capital committed to venture funds doesn't usually sit in the accounts of the general partners. The investors must call the capital from their limited partners in order to then invest into startups. While some funds call capital on a regular schedule, many will only do so as it is needed. Interesting to see the percent of all capital called by SPVs (orange slice of each bar) has rebounded back to early 2022 levels after being much lower in the choppy waters of 2023. Fingers crossed this gets put into startups soon! If you need more data on fund behavior and performance, give me a shout in the comments for a link to the waitlist for our very first Fund Performance Report. Especially useful for emerging fund managers and the LPs who invest in them. Weekend optimism continues 🙏 #cartadata #capitalcalls #venturecapital #VC”

Valar Ventures, co-founded by Peter Thiel, has raised a $300 million fund, significantly smaller than its previous funds due to a challenging fundraising environment in venture capital. The firm's investment returns have been lackluster, with notable failures like BlockFi and successes, such as Wise. The broader VC market sees mixed results, with some firms reducing targets and others, like ICONIQ Growth, exceeding theirs. #VentureCapital #FundraisingEnvironment #FintechInvestments