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So many people idealize Venture Capital. They equate investing money to power, when in fact, it is the exact opposite. Venture Capital is a responsibility. Traditionally, 98% or more of the capital in a VC fund belongs to outside investors. These investors are foundations, pensions, endowments, strategic minded businesses, families and individuals. They have entrusted the partners of a VC Fund to be good stewards of their capital and do everything in their power to bring them a strong return. In most cases, a VC Fund will align ahead of time with investors on a vision, a goal or the impact they seek to make. That's it. The aligned vision and goal of returns are what governs all decisions. The Venture Capitalist isn't inherently powerful. They are merely a tool for investors and founders. Being a Venture Capitalist is an honor. An honor that investors have entrusted you with their capital, and founders who have given you the opportunity to build together. Words like honor and opportunity aren't about false humility. They are reality. Look through the mirage of perceptions of power and decide the type of person you want to be. Not just what side of the table you want to sit on, but on the real reasons you want to sit there. I am grateful every day that Marcos Fernandez, Drew Glover and Caitlin Keep have chosen this path at Fiat Ventures for the right reasons. They along with the entire team at Fiat Growth are builders who do not take our responsibilities or opportunities lightly, and consistently rise to the occasion.

A Beginner’s Guide to Venture Capital: Venture capital (VC) is a powerful tool for startups aiming to scale quickly, but it’s essential to understand how it works. Here are key insights from A Beginner’s Guide to Venture Capital: 1. Where VC Money Comes From: VC funds are typically raised from insurance companies, educational endowments, pension funds, and wealthy individuals looking for high-risk, high-reward investments. 2. Fund Structure: Most VC funds operate as limited partnerships, with General Partners (GPs) managing investments and Limited Partners (LPs) providing capital. 3. VCs’ Responsibilities: GPs source deals, make investment decisions, and manage portfolio companies, often by sitting on the board and guiding strategy. 4. The Economics: VCs earn through management fees and “carried interest”—a share of the profits after LPs recoup their capital. 5. Considerations for Founders: Entrepreneurs must evaluate if their growth goals align with VC expectations for big returns. Working with the right VC partner can offer not only capital but also guidance and valuable industry connections. PS. check out 🔔 for a winning pitch deck the template created by Silicon Valley legend, Peter Thiel https://lnkd.in/ejp-Bhnu

𝗩𝗲𝗻𝘁𝘂𝗿𝗲 𝗖𝗮𝗽𝗶𝘁𝗮𝗹 : 𝗪𝗵𝗮𝘁 𝗶𝘀 𝗩𝗲𝗻𝘁𝘂𝗿𝗲 𝗖𝗮𝗽𝗶𝘁𝗮𝗹? Venture capital (VC) is a form of private equity and a type of financing that investors provide to startup companies and small businesses that are believed to have long-term growth potential. Venture capital generally comes from well-off investors, investment banks, and any other financial institutions. Venture capital doesn't always have to be money. In fact, it often comes as technical or managerial expertise. VC is typically allocated to small companies with exceptional growth potential or to those that grow quickly and appear poised to continue to expand. Understanding Venture Capital (VC) As noted above, VC provides financing to startups and small companies that investors believe have great growth potential. Financing typically comes in the form of private equity (PE) and may also come as some form of expertise, such as technical or managerial experience. VC deals generally involve the creation of large ownership chunks of a company, which are sold to a few investors through independent limited partnerships. These relationships are established by venture capital firms and may consist of a pool of several similar enterprises. One important difference between venture capital and other private equity deals, however, is that venture capital tends to focus on emerging companies seeking substantial funds for the first time, while PE tends to fund larger, more established companies that are seeking an equity infusion or a chance for company founders to transfer some of their ownership stakes. The potential for above-average returns is often what attracts venture capitalists despite the risk. For new companies or ventures with limited operating history (under two years), VC is increasingly becoming a popular and essential source for raising money, especially if they lack access to capital markets, bank loans, or other debt instruments. The main downside is that the investors usually get equity in the company, and, thus, a say in company decisions.

Raising venture capital can feel like navigating a labyrinth. But it doesn't have to be. As someone who's been through the process, I want to share insights that can make it smoother. Startups, especially in tech and proptech, need to approach this strategically. Here's how to lay the groundwork for a successful venture capital round: Know Your Story → Your pitch isn’t just numbers. ↳ It's a narrative. Walk your potential investors through your journey, your mission, and your vision. Make it compelling. Research Your Investors → Not all money is equal. Identify investors who align with your industry and mission. ↳ Understand their previous investments and interests. This helps tailor your pitch and makes it more relevant. Build Relationships Early → Venture capital is about trust. Engage with potential investors long before you need funding. ↳ Attend networking events, reach out on LinkedIn, and share updates. Building rapport can make a huge difference. Be Transparent → Present a clear picture of your business. ↳ Highlight not just the successes but also the challenges. Investors appreciate honesty and understanding of the market. Demonstrate Traction → Numbers speak. Showcase your growth metrics, user engagement, or partnerships. ↳ Proof of concept or early success can build confidence. Prepare for Diligence → Be ready for scrutiny. ↳ Have your financials, market analysis, and business model polished and accessible. A wellprepared diligence phase speaks volumes about your professionalism. Understand the Terms → Know the ins and outs of term sheets. ↳ Get legal counsel and understand the implications of each clause. The right terms can set the foundation for future rounds and partnerships. Keep Your Team in the Loop → Your team is your backbone. ↳ Ensure they are informed and aligned with the fundraising strategy. Their morale and support are crucial. Pitch, Pivot, Perfect → Each pitch is a learning opportunity. ↳ Gather feedback, refine your approach, and adjust your strategy as needed. Remember, raising venture capital is as much about finding the right partners as it is about securing funds. The journey is challenging, but with the right approach, it can be incredibly rewarding. What insights have you gained from your venture capital experiences? Share your thoughts and let's learn together.

Venture Capital: A Roadmap for Startup Fundraising Venture capital (VC) can provide the resources and guidance startups need to scale, but it’s essential to understand the process. Here’s a breakdown: 1) What is Venture Capital? VC is private equity investment in early-stage, high-growth companies. It provides the funding needed to accelerate business growth. 2) VC Fund Structure: VC funds are managed by General Partners (GPs) who invest on behalf of Limited Partners (LPs). GPs earn a management fee and a share of profits (carried interest). 3) Why Raise Venture Capital? It’s not just about the cash—VCs offer guidance, business development support, industry contacts, and credibility. 4) Typical Deal Evaluation: VCs assess the concept, market opportunity, and team strength to determine investment potential. Financial projections and business models are also key. 5) Exit Strategy: Investors look for a return through acquisitions or IPOs. A solid exit strategy increases the attractiveness of your startup. PS. check out 🔔 for a winning pitch deck the template created by Silicon Valley legend, Peter Thiel https://lnkd.in/ejp-Bhnu

The Misguided Logic of Chasing Venture Capital: What You Should Know Venture capital became mainstream 10-15 years ago, and now every fledgling entrepreneur knows about venture investors who can fund their ideas just because they like them. Many entrepreneurs believe that VCs are audacious enough to provide funding even when there is no revenue, recognizing the potential in every idea. This notion of obtaining financing has become so widespread that every business owner, even those running typical consulting businesses, thinks they need this type of funding. I thought the typical logic pattern would be: "I need this amount of capital to achieve these milestones, and then we'll start looking for the right type of investor." However, the logic is often the opposite: "There is money available, and I can get it, so why not? I'll figure out the rest later (break-even, exit, external investor, new requirements, etc.)." Venture capital is essential when you're in a capital-intensive industry and there is a short window of opportunity to gain a long-term advantage. Otherwise, please bootstrap. It's much healthier for you, your company, and the people around you.

Introduction To Venture Capital: Are you curious about how venture capital works and what it takes to secure funding for your startup? Here’s an overview based on “Introduction to Venture Capital” by Avidan Rudansky. This guide breaks down the essentials of VC funding to help entrepreneurs navigate the fundraising journey. Key Takeaways: 1) What is Venture Capital? Venture Capital (VC) is a form of private equity where funds make long-term equity investments in startups. It involves high risk but offers the potential for substantial returns over 5-10 years. 2) VC Structure and Roles: From General Partners to Analysts, VC firms have a hierarchy of roles, each contributing to the deal flow and investment decisions. Key players like General Partners oversee the investment process and provide strategic guidance to portfolio companies. 3) The Economics of Venture Capital: The “2 and 20” model explains VC compensation, where firms charge a 2% management fee on assets and earn 20% of the profits after clearing a hurdle rate for investors. 4) Investment Stages: VC investments are categorized into various stages, from Seed to Late Stage, each with a different focus—from validating an idea to scaling and preparing for an IPO or acquisition. 5) What VCs Look For: The focus is on the 3 M’s—Management, Market, and Model. VCs prioritize strong teams, large markets, and innovative business models. They expect a clear path to a 10x return on their investment. PS. check out 🔔 for a winning pitch deck the template created by Silicon Valley legend, Peter Thiel https://lnkd.in/ejp-Bhnu

Many startup founders, including those backed by venture capital (VC), often overlook crucial aspects of the fundraising process, leading to potential pitfalls. Here's a distilled version of the essential ""golden rules"" for anyone considering raising funds: Venture capital entails private equity financing for startups with significant growth potential. VC firms manage capital from LPs, aiming to deliver substantial returns, typically 3 to 5 times the investment over 5 to 7 years. To secure funds, VCs must convince investors, much like entrepreneurs do. Establishing a strong track record, either through past fund experience or networks, is crucial. Once funds are raised, VCs typically invest them over 18 to 24 months. However, the return on investment for LPs occurs over a longer period, 5 to 7 years. To demonstrate growth and attract further investment, VCs rely on their portfolio's valuation, which hinges on startups raising subsequent rounds at higher valuations and achieving liquidity events through acquisitions, IPOs, or selling to other investors. This discrepancy in timelines often leads to pressure on founders to spend funds quickly or raise additional rounds, aligning with VCs' portfolio growth strategies. While VCs embrace risk and aim for success in a portfolio approach, founders must carefully assess whether they are comfortable with the level of risk and the trade-offs between rapid growth and sustainable success. If you are looking for customised strategy, feel free to reach out to Consiglieri team for a consultation 💫

I just launched a new Venture Capital Fund! Give this strategy document a read to find out what the fund's aims are to ultimately generate substantial returns for its investors. It's completely fictitious (maybe it will be real some day, you never know!), but it still has loads of useful analysis of the UK Engineering & Construction sectors. In it, I conduct market research, take a look at future drivers in the market, identify opportunities, analyse deals which have been done recently to fund startups, I also assess 3 companies which are currently looking to raise finance and determine whether or not I would finance them. Spoiler: I actually did put some capital towards one of them through Crowdcube. Key takeaways from my market analysis were: - Productivity in the engineering and construction sectors has actually fallen over time, mainly due to increased standards and regulation. - The global market opportunity of improving productivity is $1.6trillion! McKinsey & Company - 98% of construction projects experience cost overruns or delays. - 92% of construction projects go over budget. - Only 8% of construction projects are completed within the initially specified contract duration. Perhaps unsurprisingly, the biggest challenges the construction industry faces today are, the rising cost of materials & labour, as well as the availability of labour. What I also found was that there are some really good startups which aim to tackle key issues such as; - Decarbonisation within the construction and energy sectors. - Modelling and optimising engineering solutions more quickly (it seems primarily through digital twins). - Democratising access to satellites. - Improving information exchange in the construction sector. I had a lot of fun putting this together and it did give me some startup ideas myself. Hopefully this also sparks some inspiration for you if you give it a read. Whether you're working in either engineering or construction, or if you're a VC looking to fund new opportunities.

Very common misconception captured here: "Many people view venture capital (VC) financing as an avenue to turn an idea into a business. In reality, your idea will have already turned into a business and hit several benchmarks before you can raise venture capital."