Neuberger Berman’s Post

Day 186 of leading the Found Capital Syndicate – "We're agnostic" I remember as Head of Investments in Sussex, when I would be linking up the University commercialisation arm and the Innovation Centre with prospective funds and angels, the majority of investors would say "We're agnostic"... I always thought it lacked a bit of conviction, honestly... Lo and behold – two years on – we've been saying it ourselves now too, and saying it often with a feeling of integrity and authenticity... When you're seriously considering investing in amazing companies, for example, GROUNDED®, GrowGrows or Edmunds Cocktails (This isn't sponsored), and progressing to final stage conversations, you can forgive yourself for calling yourself agnostic... and yet... the more I look at the evidence, the more I realise we're not quite that agnostic after all... So far, 5 out of 5 companies that we've backed have been deeply embedded B2B technology companies – hard and soft – at the pre-seed and seed stage. And why is that? Like many things, it's because of the people in our syndicate... CTOs of PLCs; Senior FAANG directors; Property-specific family offices; Credit Risk analysts; exited Insurance, Software, and Marketing founders... You simply don't know what you don't know... And other than the fanatic cyclists, travellers, and readers in our group, we haven't spent much time deep in the consumer space... But I can see how popular it is too, and have met some great investors swimming here... In truth, we'd like to be more agnostic – to diversify – but I'm aware I need to get a bit of an education here from B2C founders and investors. So, why B2C over B2B?... What makes a B2C brand a no-brainer?...

We recently talked with Mark Gerson, co-founder of 3i Members, an invitation-only community of private #investors sharing deals, insights and contacts. Gerson shares the backstory of 3i Members with Crain Currency, which all started with the question, “Where did the most compelling deals we did in the previous several years come from?” To learn more about where the role of #investment networks are headed in the next 5-10 years in the context of family offices and how investment communities can support family offices in planning for generational wealth, check out the article below.  And, to learn more about 3i Members click the link: https://bit.ly/3QULF8o  #familyoffice #familybusiness #business #investmentnetwork #highnetworth #alternativeinvestments #dealflow #globalinvesting #generationalwealth #wealthmanagement #investorcommunity #financialservices https://lnkd.in/gREiqSHW

As we move into IVP 18, the days of easy money have waned. It's a recalibration towards sustainability at a time when technology platforms like AI are expanding the potential for growth and innovation. This transition is not just about chasing the next big thing; it's about understanding where genuine, long-lasting value can be created. Surviving and thriving in venture is about more than just financial transactions; it's about building enduring relationships and being there for companies through thick and thin. With IVP 18, we're looking for entrepreneurs who are undaunted by the journey ahead. We pride ourselves on being committed, resilient and ready to navigate the complexities of building a company right alongside you. Read more about our next fund in Fortune Ajay Vashee, Alex Lim, Cack Wilhelm, Somesh Dash, Steve Harrick, Tom Loverro, Jules Maltz, Angela Zhu, James Black, Karthik Ramakrishnan, Shravan N., Shreyas Garg, Youri Lee, Bryce Marion, Clay Berger, Cynthia Kuo, Jared Rosner, Colin Fitzpatrick, Cynthia Lai, Blair Shane, Davey Nickels, Kelly O'Kane, Leslie Schuster Stolper, Tracy Hogan, Zack Willis

Ok, Money Marketing and Puma Capital Group; what are we missing here? The line: 'Additionally, an EIS does not offer income tax relief' is certainly confusing us; can you clarify matters? (or we've been very wrong for a very long time which, tbh, wouldn't be a great surprise...😕) #vct #eis #investments

Founder vesting provisions! But first. What an awesome evening at the #HTANZ NZ Hi-Tech Awards 2024 Wellington Finalist Event. Congratulations to all Founders involved and to the finalists. I’m looking forward to seeing you in May in Auckland at the main event.   Being around so many highly motivated Founders got me thinking about Founder vesting. Almost without exception, Founders raising for the first time will have a negative reaction to the Founder vesting provisions. And it’s understandable. When you see up close the dedication of these individuals, it’s not hard to see why the vesting provisions put their nose out of joint (at least initially).   If you’re in the middle of negotiating your first term sheet with a VC. Just remember:   🍇 The vesting regime is a key protection for the VC. They are almost certainly not going to agree to remove it, so spend your efforts thinking about what changes you could live with.   🍈 It protects the VC, company, co-founders and other shareholders. In circumstances where you leave early, the company will likely need to bring in a "replacement founder" and there will need to be space in the cap table for that. If you have co-founders, it may help you one day too!   🍉 If you want to amend the vesting provisions, use your energy and leverage negotiating an increase to the % of shares that vest immediately or shortly after completion of the VC’s investment.   🍊 Your best tactic is to just not leave the company before the vesting period ends 😊.

The London Stock Exchange is increasing opportunities for founders to access growth-stage capital The proposed PISCES initiative will be the first regulated crossover market between private and public markets… allowing private company secondaries to be traded on an intermittent basis, effectively allowing a company to go public temporarily, with access to a wider pool of private investors through data rooms, before reverting to the company’s normal private status The hope is to offer an innovative solution to the liquidity dilemma faced by private companies in the UK, as an intermediate step to a potential IPO… This is particularly crucial given the difficulty of sometimes accessing growth-stage capital in the UK Founders - what do you think of the new framework? Would you use it? If not, why? Read more here from Founders Forum Group & LSEG (London Stock Exchange Group): https://lnkd.in/ez9Yevdp

Our Knowledge Intensive EIS Fund III launch was featured by Investment Week. Read the article here: https://rebrand.ly/v2uoewg.   Off the back of a successful fundraise over £45m for our first two KI Funds, Parkwalk’s third Knowledge Intensive EIS Fund will again invest in world-changing university spin-outs from sectors such as AI, Digital Health, Quantum Computing, Life Sciences and more.   Moray Wright, CEO at Parkwalk Advisors, said: “Parkwalk has led the way in deploying tax-efficient investment to nurture and grow cutting-edge UK companies. We’re incredibly proud to launch our latest Knowledge Intensive Fund, the third since 2021, as a continuation of our commitment to supporting our fast-growing science and deep tech sectors.”   Investors in the Knowledge Intensive EIS Fund III can benefit from 5 tax reliefs under the Enterprise Investment Scheme (EIS), including income tax relief for 2023/24 or carry back to 2022/23* *Personal tax circumstances may differ. See our Information Memorandum for further information.   To learn more about the Fund, visit the Investment Week article here: https://rebrand.ly/v2uoewg, or our website: https://rebrand.ly/919d8f.   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://rebrand.ly/9nkavv2.   Past performance may not be repeated and is not indicative of future results.   Parkwalk Advisors is authorised and regulated by the FCA: 502237. #InvestinginInnovation #Technology #Science 14/11/2023

"One of the driving forces was a fear that CVC would become a second-tier firm if it was unable to keep up with rivals that used the proceeds from successful listings to grow fast. The private equity industry is increasingly splitting into bigger listed groups that are attracting a large share of investor money and smaller, more specialist unlisted ones. The firm’s decision makers hope the visibility of being a public company will help it attract talent and raise funds from wealthy individuals as well as institutions such as pension plans and sovereign wealth funds, according to some of the people involved in the talks. Another draw was that EQT and Bridgepoint had listed using a model in which top executives did not disclose how much money they made in carried interest. In the US, listed private equity groups such as Blackstone and KKR have to be more transparent about the figures. CVC’s conversations about listing became more urgent after its closest European competitor, EQT, listed in Stockholm in 2019. That enabled EQT chief executive Christian Sinding and founder Conni Jonsson to each sell shares worth more than $100mn in 2021. Still, the firm is not completely opening itself up to public markets, and 70 per cent of the profits from successful deals will remain in private hands, mirroring the sort of structure adopted by rivals such as EQT. The deal teams will receive 40 per cent of the profits, an attempt to ensure the performance-focused culture remains in place. Meanwhile, 30 per cent will go to a private company that will maintain a separate board and where its co-founders who have exited will continue to have a role, some of the people said. The separate board will not play a role in the firm’s governance after listing."

Search funds are attractive buyers and a as a group form a unique, high-performing asset class. Going global. #searchfunds https://lnkd.in/eMvnyhE6

Ok: as if by magic, the line in the article: 'Additionally, an EIS does not offer income tax relief' has now been amended to: 'Additionally, an EIS offers 30% income tax relief' That settles the confusion from our perspective, and leaves me with one big lesson learnt; not that EIS investments benefit from IT relief, but that I need to take screen-shots of these dodgy articles! #honestguv #noonewillbelieveme