Rory Southworth’s Post

When you’re investing at the earliest stages of company formation, an important factor in your investment decision should be “Is this company fundraisable?” Being able to successfully raise the next round of funding is crucial to a technology startup’s chances of outsized success. Some questions to assess fundraise-ability: 1. Are they a strong sales person who can run an effective fundraising process? 2. Are they well-spoken and have strong clarity of thought? 3. Is this a hot and interesting space where capital is moving quickly? 4. How likely is this founder to have inbound interest in this round or future rounds? Will they be able to convert that to fundraised capital? This is part of our deal assessment framework at Hustle Fund and Angel Squad. To get our full Deal Assessment Framework course, you can download the content at the link in the comments 👇

Raising from multiple investors? Concerned it will make your cap table messy and hard to read? 🤯 On SeedLegals, you can ‘roll up’ dozens of small investors into one entity on your cap table, thanks to our Rollup feature. With Rollup you can … 🧽 Keep your cap table clean 🤝🏽 Streamline investor communications 🚀 Still give your investors the SEIS/EIS perks they’re entitled to Hit the link for a short video and FAQ explaining what a rollup is, how to use one in your SeedLegals funding round and how it all works. 👉 https://lnkd.in/eBjzXWey

Looking forward to participating in ACG New Jersey's Monthly Breakfast. Moderated by Yelena Dunaevsky and my fellow panelists, Laura Cicirelli, Lexie Thomas Demirali and Božanka Vitanova, the topic will be "Demystifying the World of Angel Investing." #investors #entrepreneurs #startups #innovators #NJEDA #ACG

🚀 Looking forward to an insightful #FiresideChat at SuperReturn Middle East! On 15th October 2024, I will be holding a fireside chat with Christiaan de Lint, Managing Partner at Headway Capital Partners , where we’ll be diving deep into #Investment Modernized: #IndependentSponsors – a growing force in #privateequity. In an era where flexibility and agility are key, the #independentsponsor model is becoming increasingly relevant. Unlike traditional private equity funds, independent sponsors are uniquely positioned to identify investment opportunities first, then raise capital. This approach provides tremendous value for both investors and sponsors, offering customized #deal structures, targeted opportunities, and the ability to adapt to market conditions swiftly. We’ll be discussing: -How independent sponsors are reshaping #privateequity deals. -The benefits of the independent sponsor model for #investors and #founders. -Real-world examples of how this model has delivered success. This topic is particularly timely given the current shift towards more nimble, #entrepreneurial investment strategies in a rapidly evolving financial landscape. I’m excited to share insights with my fellow industry leaders and explore how we can further innovate and drive value in the private equity space. Stay tuned for updates, and I look forward to seeing many of you there! Let’s continue to shape the future of investments together. #PrivateEquity #IndependentSponsors #SuperReturnME #InvestmentStrategies #PrivateEquityDeals #HeadwayCapital #EuphoriaCapitalPartners #Fundraising #SRME #VentureCapital

MOTHS AND BRIGHT LIGHTS A question for other Angel investors. Have you found over the years that one of the possible constraints on the growth of young B:B enterprises is that they don’t work hard enough to investigate and mine market verticals? So they achieve great success on a one off basis in a specific market (let’s call it “X”), then, hey presto, they’re off to find the next exciting challenge. But wait, how many other X businesses are there that are accessible and how big and valuable is the market vertical to which X belongs? Might it have been better to pause, size up the market vertical and determine if there was a viable market entry strategy that could add a lot of revenue value to our investee company? Are directors paying enough to this issue, or are they letting it slide, just acquiescing to management attracted by the bright lights of the next exciting opportunity or pivot? (“We’re building up our IP portfolio and anyway, we are already planning for our next capital raising round. Breakeven?, Nah, that went out of fashion in the 70s and 80s!”) Just my imagination or is there a recurring pattern here?

Founders often misunderstand VC's are managers not owners of funds. These funds come with a thesis and a clear need to multiply their fund for their respective Investors. AKA Limited partners (LP's). So Founders fundraising should understand what their potential VC investor requires from them to perform an outlier return. Ideally look at their whole fund and work backwards at what you and your startup need to do to achieve that number on exit. Thats a VC business. So match your captable with investors whose thesis and requirements match your business. #investormatching #research #vcfunding #founderjourney #startuplife

Founder Tip: Don’t forget about the small checks. In a seed fundraise, it’s all too easy to focus on the VCs who write the large checks. But remember, Angels and Micro VCs make quick decisions and then give you access to their investor network.

We've been building a powerful "Founders love Founders" machine over here at Massive since the beginning. The capital we invest comes from a great group of builders and operators across a number of domains. David Mandell and I are founders ourselves, (yes we walk the talk and put our own money into every investment), so this has always been in our DNA and and also part of how we deliver outsized value to our portfolio. I know I have my bias here but I'm not optimistic that big name firms raising from founders out of desperation due to Inst. LP pull back are going to get this right, or continue to lean into this when the big LPs come back and want to get into these funds. Founders working with founders to build great companies over time requires more innovation and adaptation than just tapping into the capital in a tough market. That said, nice to see people talking about this and we know this is where the future of venture is going. Someday soon these mega funds will suffer their own version of innovators' dilemma and be out maneuvered...

If you have conviction in your vision, don’t wait for the "perfect" moment—just start. Even a small raise, like $2-3M, can give you the momentum to get going. For Amir Farha with COTU Ventures, early investments, like Huspy, helped build credibility with LPs and showcase tangible results. You don’t need a massive first close to gain traction—focus on building progress and using that momentum to fuel future raises. How do you approach building early momentum in your journey?

Why is Summer a Bad Time to Fundraise? Our friends at Panache Ventures gave some insights that we have summarized here for your convenience. Conventional wisdom suggests that July and August are tough for fundraising due to vacations. While true to some extent, VCs are still active. The key lies in understanding the nuances of VC operations during this time: - Meetings take longer to schedule and complete. - Diligence processes are extended due to team vacations. - Building momentum for competitive dynamics becomes more challenging. Why does this matter? Because you’re trying to build momentum. Despite these hurdles, many funds continue to close deals in summer. Preparation is key: refine your pitch, build relationships, and focus on growth metrics. Read More Here: https://lnkd.in/gH3yh5qm #StartupLife #VentureCapital #SummerFundraising #Entrepreneurship