🗓️ This week at Fusion 42 #12

➡️ Our Newsletter will be bi-weekly going forward, but we'll share highlights on social media as we continue to provide as much pro bono value as possible.

😃 The good

➡️ 🎥 First-ever Fusion42 Webinar in collaboration with Family office List was a hit with 200 registrants and 84 attendees – Many thanks to Danielle Patterson, Managing Director of Family Office List, created in collaboration with Stacy Idema Founder & Managing Director of Global Collective. Please find it here: https://lnkd.in/euKBEK9w

➡️ We are levelling up, engagement is more professional (most of the time) and the subjects being covered are getting deeper as well.

➡️ 🌈 Well-being & Inclusivity: Founder wellbeing is undeniably pivotal to the tech startup ecosystem. Their mental and emotional health significantly dictates the trajectory of their venture. We are really proud to have created a safe space for founders to freely discuss, it really has been eye opening to see the need.

➡️ We're continually ramping up our efforts! Get ready for more webinars, expanded services, and heightened support for the ecosystem. Plus, stay tuned for our Angel pitch days, tailored for startups who are investor ready.

😔 The Bad:

➡️  It is hard to keep everyone happy 🤷🏼♂️

➡️ The past few years of startup glamour headlines have negatively affected the founder's mentality. Seeing a lot of unrealistic expectations coming from all angels but ultimately putting pressures on founders.

😖 The Ugly:

➡️ All is under control, you know that startup type of control 😀

📰 Fusion 42 Weekly Roundup:

🤝 Networking & Collaboration:

This week we had startups covering a multitude of solutions:

• AdTech, AgriTech, Algorithm, Animal Health, Applications, Apps, Artificial Intelligence, Augmented Reality, Automation, Autonomous Vehicles, AutoTech, B2C, Beauty & Cosmetics, Big Data, Biometrics, Business Intelligence, C2C, Carbon Neutral Technology, Cell Based X, Charging Infrastructure, Climate Tech, Cloud Computing, ConstructionTech, Consumer Internet, ConsumerTech, Customer Engagement, Customer Service, Cyber Security, D2C, Data Analytics, Data Storage & Warehousing, Decentralized apps, Deep Learning, Digital Health, Digital infrastructure, Disruptive Tech, Drones and UAVs, E-Commerce, Edge Computing, EdTech, Electric Mobility, EnergyTech, EnterpriseTech, Entertainment, Environmental Monitoring, FashionTech, Fleet Management, FoodTech, Fraud Detection, Future Of Work, Gaming, Green Manufacturing, Health & Wellness, HealthTech, InsurTech, Internet of Things (IoT), IOT, LegalTech, Life Science Tech, Logistics, LogiTech, Machine Learning, Mapping & Navigation, MarketingTech, Marketplace, Medical Device, Mobility, MusicTech, Nanomedicine, On-Demand Service, Peer To Peer, Personal Finance, Plant Based X, Platform, Productivity Tools, PropTech, Quantum Computing, Real Estate Tech, Renewable Energy, RetailTech, Robotic Process Automation, Robotics, Shared Economy, Smart Buildings, Smart Cities, Smart Home, Smart Sensors, Software, SpaceTech, Spatial Computing, Sports & Wellness, Supply Chain Management, Sustainable Food, Sustainable Supply Chain, Sustainable Transportation, TravelTech, Virtual Reality, Voice Based Virtual Assistants, WasteTech, Watertech, Wearable Computing, Web3

Conversations covered:

Startup and Investment Themes:

• Challenges in securing startup funding.
• Value of robust business plans and clear value propositions.
• Significance of a solid team and traction.
• Adaptability and feedback receptiveness.
• Networking and relationship-building with investors.
• The art of preparation, perseverance, and compelling funding pitches.

Sector Interests and Missions:

• Mental well-being in startups.
• Fintech and other sector interests.
• Environmental startup missions.

Global Insights and Recommendations:

• Travel recommendations for scenic locales like Pakistan and Canada.
• Event suggestions, e.g., AI's impact on VC.

Platform Development and Feedback:

• Platform enhancement updates.
• Feedback solicitation for improvements.
• Mentoring initiatives for community members.

Personal Growth and Learning:

• Founders' vulnerabilities and challenges.
• Focus on personal growth, balance, and motivation.
• The importance of continuous learning.

Importance of Caution and Prevention in Technology:

• Cautious tech development discussions.
• Unchecked tech advancements and potential risks.

Human Fallibility vs AI Considerations:

• Exploring human decision-making limits.
• AI's role in addressing human fallibility.

Early Digital Music Platforms:

• Impacts of early digital music platforms.

LinkedIn Posting Experience and Personal Well-being:

• Challenges like LinkedIn post engagements.
• Personal growth stories and seeking community support.

Bug in the chatbot:

• Tech issue discussions and resolutions.

Sports as a Platform for Investment and Growth:

• Inclusivity in sports.
• Relationships and humility in sports.

E-commerce Startup Opportunity:

• Innovative e-commerce founder needs.
• Revolutionizing e-commerce with novel tech.

Saudi Arabia's Deep Tech Innovation Fund and MENA Ecosystem:

• The B Corp movement insights.
• MENA ecosystem exploration.

Startup Operations and Packaging:

• Operations, funding, and advanced packaging tech.

Financial Analysis and Projections:

• Financial forecasting emphasis.
• Market potential discussions.

Entrepreneurship Challenges and Milestones:

• Sharing entrepreneurial peaks and valleys.
• Work-life balance discussions.
• Recognizing growth milestones.

1. 🎙️ Had the honor of appearing on a top-tier podcast, now proudly sitting at rank #5 for the year!
2. 📈 Made significant strides in refining the sales deck, clarifying our pilot plans, and tailoring programs for family offices.
3. 🌍 Exciting news! A vast network of webshops are on board to use Clonable for European expansion.
4. 💼 Progress alert! Our talks with potential investors are bearing fruit. Our pitch is on point and resonating.
5. 🍁 Big win! Secured pilot programs with Canada's second-largest grocery chain for three groundbreaking products.
6. 📱 Social media milestone! Over 175,400 live posts have been managed seamlessly via blue strawberry.
7. 🤝 Networking level-up! This week ushered in new friends and strategic partnerships, opening doors to fresh possibilities.
8. 💡 Went beyond our business, offering timely assistance and potentially saving a friend's company from a downturn.
9. 😊 Despite the week's challenges, we've maintained a positive attitude and emerged stronger.

🌟❓ "Ask Us Anything":

This weeks top questions:

1. Can you explain the process of converting existing petrol vehicles to electric?
2. Can you provide a step-by-step explanation of the customer journey, from the first point of contact to the actual visit?
3. How can cabin comfort be maintained in an electric vehicle?
4. What are the benefits of using renewable energy sources?
5. Can you explain the concept of artificial intelligence?
6. What are the steps involved in starting a small business?
7. How can we improve customer satisfaction?
8. What are the potential risks of outsourcing customer service?
9. How can we effectively measure customer loyalty?
10. What adaptations are required to bring a product into full conformity with specific requirements?
11. Are there benefits to shared intellectual property ownership?
12. Is it beneficial to hire a professional who specializes in naming products or brands?
13. Should a trademark search be conducted before investing time and resources into a specific brand name?
14. Could you offer any suggestions or advice for generating a strong brand name?
15. How does a product biodegrade naturally and safely?

💡 Startup Validation & Refinement:

In recent conversations, various startup-centric discussions have emerged, emphasizing the importance of refining and validating startup ideas and strategies:

1. Investment & Income Models: Discussions delved into crowdsourcing ideas, fractional ownership, and the concept of passive income. These conversations centered on the risks and returns associated with fractional ownership and ways to explore passive income with minimal investment and distributed risk.
2. E-commerce & Online User Experience: Topics highlighted include the pain points of repeatedly entering card details when shopping online, potential solutions such as Apple Pay, and password managers for streamlining the payment process.
3. VAT & Tax Preparation: There's a growing emphasis on understanding VAT, especially with businesses operating in multiple countries. Ideas circulate on managing VAT calculations, the challenges tied to VAT payments, and the significance of proper tax preparation. Separating VAT from business funds has been stressed, citing its potential risks when mixed.
4. Accounting & Financial Management: The conversation underscored the lack of accounting knowledge among many small business owners. Discussions proposed rebranding the accounting profession, and the integration of solutions in accounting systems to better track tax liabilities.
5. Tech & Product Development: Several members brought up the need to pivot platforms to enhance user engagement, the potential in autonomous agents for chatbots, the technical validation of such pivots, and the growing preference for dark mode in apps.
6. Startup Strategy & Execution: Before launching any product, the importance of concept evaluation stands out. Questions revolve around areas like SaaS subscription management, cloud infrastructure, cybersecurity, marketing strategies, and understanding the US market. The viability of the SaaS model, its challenges, and the need to explore alternative business models have been underscored.
7. Metrics & Business Development: Key indicators in business progress have been broached, such as understanding customer behavior, improving onboarding experiences, focusing on pertinent metrics, and automating KPI tracking.

🚀 Go-to-Market, Customer / User success and Sales Strategies

• The importance of CRM systems for effective customer management and sales tracking.
• Emphasis on marketing automation tools to make campaigns more efficient.
• The need for analytics tools to get insights into customer behavior.
• The value of customer success platforms in driving satisfaction and retention.
• Discussions on the significance of collaboration and project management tools for enhancing team productivity.
• Highlights on innovative go-to-market strategies, with some members noting the value of using tools like HubSpot for business development.
• Noteworthy discussions about removing credit card requirements for SaaS product trials to reduce friction for potential customers.
• Mention of a unique North Star KPI, namely "billable patient days", which some businesses use for tracking progress.

🖥️ Tech & Resources:

• Microsoft's Azure ChatGPT on GitHub offers a privacy-focused AI chatbot solution. Data is stored in the user's Azure cloud, ensuring no sharing with OpenAI.
• Azure ChatGPT's interface is open-source, but the core LLM is proprietary.
• Microsoft guarantees that data collected by Azure ChatGPT won't be used for model training.
• Nvidia's accessible paper on LLMs aids in understanding neural nets, further complemented by graphical representations.
• Startups and founders can customize Azure ChatGPT to meet specific needs, especially those already on the Azure platform.
• Cost-effective resources are essential for startups, as highlighted by the search for affordable A/B testing software.
• Intellectual property (IP) protection is vital, as seen from the concerns about sharing Venturus AI results and interest in IP webinars.
• Founders with industry expertise often spot problems they can address through their startups.
• Movies like "WeCrashed" and "The Dropout" offer startup-related insights and narratives.
• Execution, persistence, and IP protection are crucial for startup success. Diversifying investments is also beneficial.
• Networking opportunities, transparency, technology trends, and resource accessibility are significant aspects within the startup community.
• Startups need to weigh the cost of AI technologies against the price point customers are willing to pay.
• Scalability is vital as increasing customer demands can raise operational costs.
• Vector databases can enhance AI applications, while setting realistic expectations about offerings and expenses is critical.
• There's a caution against overvaluing vector DBs, and an emphasis on understanding the full potential of AI/ML before adoption.
• The EMEA region seems to lag in AI/ML adoption.
• Unique opportunities, such as free image generation services, are emerging for startups in the tech sector.

📣 Social Media Boost & Marketing:

Overall, the channel consisted of approximately 78+ boost requests posts and about 359+ instances of engagement.

💰 Financial Mastery & Due Diligence Preparation:

👨💼💰👩💼 Investor Connect & Term Sheets and Negotiations:

Recent Venture Capital Activities

• Play Ventures: $78 million for gaming venture fund.
• AO Venture Capital: fund for proptech startups with a focus on climate sustainability.
• Illuminati Capital: $50 million for web3 investments.
• Revenue sharing templates available online.
• FoundershipHQ: program for web3 startups.
• Assembly Ventures: $76 million mobility fund.
• Brewer Lane Ventures: announced its second fund.
• Kogito Ventures: early-stage fund targeting €40 million, focusing on Central and Eastern Europe.

Pitchathon Event & Investment Opportunities

• KSA-startups can pitch to Japan-based VC.
• Winner receives $3,000 prize.
• Possible funding: up to $100,000.
• Middle East, especially Saudis and Emiratis, heavily investing in the web3 space.Web3 projects raise funds from specialized investors initially. Factors considered: roadmaps, past potential, team's promotional capability. Graduates from top universities investing in blockchain. Potential for targeting these investors for funding.

Regional Opportunities & Insights

• MENA region holds potential for web3 startups. Favorable blockchain regulations in the Middle East. Growth potential for decentralized applications (dApps). Funding and partnership opportunities in the Middle East. Promising web3 market with collaboration opportunities. London highlighted as a significant VC location. UK's tax incentives for early-stage investing. Consideration for finding investors outside London.

Tools & Resources

• NFX's onboarding platform and DocSend for sharing pitch decks.
• Rocketreach and Lusha for finding investor contacts.

Investor Relations & Strategies

• Different investors have diverse communication preferences. Variety in communication methods can appeal to different investors. Short video pitches can be impactful. Standing out and being adaptable is essential. Hosting demo pitch nights for preparation.

🎯 Pitch Perfect & Investor Relations and Communication:

Equity and Funding Discussions

• The importance of retaining equity and not giving away too much.
• Crafting a valuable and low-risk proposition.
• Tailoring equity distribution negotiations to specific deals.
• Identifying the optimal funding amounts for various business stages.
• The emphasis on KPIs for ensuring growth sustainability.
• Weighing the long-term vision against the value brought by investors.
• Discussions on the significance of securing seed-stage funding.
• Risks associated with sharing investment details too openly.
• Navigating and adhering to legal regulations in investment solicitation.

Pitch Deck Development & Presentation

• The importance of continuous feedback and varied perspectives in refining pitch decks.
• Effective ways to present and communicate market size.
• Exploring different strategies to convey market opportunities.
• The significance of a clear user/client acquisition roadmap.
• Prioritizing TAM for niche markets with limited competition.
• Crafting pitches that are both realistic and compelling.
• Considerations and potential pitfalls of NDAs in early discussions.
• Strategies for showcasing market growth opportunities in pitch decks.
• The role of visuals in conveying information, favoring infographics and icons over cluttered visuals.
• Sequencing and defining market potential: TAM, SAM, and SOM.
• Best practices for effective pitch deck presentations, including organization, language choice, and visualization techniques.

Pitch Deck Tools & Techniques

• Exploring AI-powered tools, like the one from Bain Capital, for enhancing pitch decks.
• The significance of tailoring pitch content for varied audiences.
• Recommendations on using templates and structured formats.
• The role of critical thinking graphs in enhancing presentation quality.
• Motivating potential investors by highlighting the costs associated with inaction.

Now, at Fusion42, we're rolling out a new service. We'll transform your story into a compelling narrative, crafted to captivate investors and leave them eager for more – all aimed at securing that crucial meeting, for you to close the deal.

⚖️ Legal Support:

1. Stockholder Agreements:

• Concerns about a weak linkage between business owners and stockholders.
• Ambiguity in references to obligations, creating enforceability challenges.
• Deliberations over the type of stock offered, weighing preferred stock against profit-sharing stock.

2. Beta Tester Agreement for SaaS Product:

• Emergence of a demand for draft agreements specifically for SaaS product beta testers.
• Suggestions and sharing of online resources and templates catering to this need.

3. Tech Company Contractual Dispute in UAE:

• Issues highlighted regarding the incomplete project delivery post full payment.
• Points raised about unclear role definitions, especially distinctions like engineers versus BA/UX/UI.
• Discussions steering towards possible legal steps, such as sending a "Letter Before Action", with a focus on implications like incurring court-related costs.

📈 Trend Watch:

• Major Lawsuit: SoftBank is currently navigating through a lawsuit concerning allegations of fake users and inadequate due diligence.
• Financial Impact: This issue has led to a staggering $40 billion loss for the firm.
• The Role of Ethics: The situation underscores the significance of ethical practices and thorough due diligence in business.
• Industry Reputation: Such incidents raise questions about maintaining trust and reputation in the tech sector.
• Founder Controversy: A young founder finds himself at the heart of this scandal.
• VC Perception: This serves as a cautionary tale about the risks and challenges facing venture capitalists in their pursuit of success.

🌱 Growth Programs & Connections:

🔍 Trendspotting: Tech Community Insights

1. Safety First: Regular security code modifications hint at a heightened security narrative.
2. Upskilling Alert: The flurry of free data science courses and educational resources points to a collective drive for knowledge enhancement.
3. Nurturing the AI Dream: A pronounced tilt towards AI startups and the expanding universe of resources underlines the future of tech.
4. The Power of Community: A surge in join requests and new member inclusions spotlight the community's magnetic pull and growth trajectory.

📈 Analytics and Beyond: Startup Pulse

• Data-Driven Drive: An evident uptick in interest around analytics, data science, and programming among startup aficionados.
• Speed & Efficacy: The quest for turbocharging analytics in app genesis is real.
• AI Wave: AI startups are making waves, bolstered by a wealth of resources.
• Learning & Networking: Access to top-tier educational content and connections remains a priority.
• Security in Spotlight: Consistent security code tweaks stress the importance of airtight measures.

🌈 Well-being & Inclusivity:

Founder wellbeing is undeniably pivotal to the tech startup ecosystem. As the pillars of startups, their mental and emotional health significantly dictates the trajectory of their venture. We are really proud to have created a safe space for founders to freely discuss.

Key Takeaways from a very active week.

1. Founder Wellbeing Concerns: The CEO is experiencing discomfort and pressure due to the rapid growth of the company. This can lead to stress and potential burnout.
2. Growth Mindset as a Solution: The concept of a growth mindset is highlighted as a secret weapon against imposter syndrome and other challenges faced by startup founders. It encourages founders to embrace challenges, view setbacks as opportunities for growth, and replace self-limiting beliefs with a belief in continuous improvement.
3. Embracing Feedback and Pivot: Founders are advised to seek out bold challenges, embrace risks and change, and be open to feedback. This mindset promotes adaptability and resilience in the face of uncertainty.
4. Progress Over Perfection: Celebrating milestones, no matter how small, is emphasized as a way to acknowledge progress and maintain motivation. Startups are seen as a journey, and imperfections are viewed as part of the growth process.
5. Importance of Founder Wellbeing: The data highlights the importance of founder wellbeing in the tech startup community. It acknowledges the challenges and pressures faced by founders and provides strategies to support their mental and emotional health.

💼 Jobs and Perks Board:

📢 PROMO channel:

♀️ Female Founders:

⭐FF continues to shine with great partnerships and collaborations: including a recent marketing partnership where they are digging into the customer journey, the neuroscience and social emotional component of buying behaviour.

💰One of our FF is raising for a $5M Female-Led Fund, with anticipated close in November for women-led startups across the Middle East.

• The fund is sector agnostic, focusing on companies in Jordan & Oman & anticipated deals in UAE. - The deal pipeline includes companies addressing financial inclusion, women's health and digital upskilling.

🧠Mental Health for Business Health was a top discussion: ♦️Reframing the power of the push: whether it is hitting a wall or the wall hitting you and instead of pushing through

♦️Create space, take a break and come back to it all with a fresh perspective and clarity

♦️An invitation for pleasure over fear - two sides of the same coin and how or where to find it, including: exercise, nature, reflection, family, rest, and laughter.

🌍🤝🏛️ ESG Channel

🎨 📣💡 Branding & Marketing

Tips and myth busters

💡 If an investor tells you they’re in if you get a lead investor, this is what it means.👇🏼

1. They are not in, even if you have it in writing.
2. They need validation from someone else.
3. They'll invest in FOMO.
4. They just got you on the hook for zero. (free option to them)

➡️ If you land Sequoia, A16Z or Bessemer or another whale they will probs follow

➡️ If you land Tom, Dick or Sally they probs won't.

✅ There is nothing to celebrate about hearing this, move on, level up, next meeting, keep them updated but expect nothing

📣 If you are a startup founder that is looking for actionable and candid pointers to get **it done, join us here: 📲. http://bit.ly/45XlZ0S

For the ❤️ of startups.