Jaya G.

Key takeaways from VC Goat - Vinod Khosla podcast. - The firm cares more about working on interesting problems with large technical solutions rather than just maximizing IRR. The team is there because they believe in the mission. - Khosla assumes they've lost the money the day they invest, and then maximizes for the upside opportunity. He calls it "option value investing" rather than IRR investing. - Khosla has contrarian bets in AI (neuro-symbolic computing, probabilistic approaches), biotech, robotics, crypto, and more. - He believes aviation fuels, fusion energy, new transit systems, and other contrarian areas ignored by most investors will be huge opportunities. - Most large innovations come from outsiders, not industry insiders. Khosla looks for founders who can learn a business rapidly rather than have deep domain expertise. The Future Impact of AI - AI will be deflationary and increase productivity growth to 4% annually vs the typical 2% forecast. This will cause great abundance but also increasing income inequality. - Bipedal robots will take over most manufacturing and manual labor jobs within 20-25 years. This will free humans to be more creative and pursue their passions. - Education will shift from job training to creativity. Uniquely human elements like taste and curation will be most valued in an AI-enabled world. https://lnkd.in/gqBsmbks

66

5 Comments

⛳ Emerging fund managers pulse check. PitchBook tracks over 10,000 funds that are raising money, with 45% being emerging fund managers (defined as firms with less than 3 funds). Despite a dip in available capital—down to 16% from the pre-pandemic 23%—these managers are finding creative ways to stay competitive, like partnering with larger firms. 💼 Joanna Drake (founder turned investor) shared how "wildly different" it is raising a fund versus for a startup. One key datapoint she shared on the fund side was how little feedback you get along the way (and the years you can wait for it). The “long-winded and challenging process to raise capital” inspired Drake and Ben Black to create RAISE Global, a community for emerging fund managers and the “forward-thinking LPs” who back them. (A decade later, several hundred emerging managers with AUM under $200m are on the platform) They've found the newest emerging managers are more diverse and geographically dispersed than Silicon valley, and more were able to crack the ceiling and raise larger $100m funds (although this is still a small % of the market, requiring partnership with larger funds at the late stage). ▶ And not a hugely surprising datapoint: A lot of action is in the sub $49 million range, where roughly 50% of emerging managers are raising. Theresa Sorrentino Hajer, Head of U.S. venture capital research at Cambridge Associates warns that past success isn't actually a strong indicator on it's own to assess emerging managers. We've had a valuation reset. And newer managers with investments during the 2019-2021 "party days", need to build relevant track record and play to their strengths. A lot of emerging managers are specializing (70% who applied for Raise had a thematic focus), and betting on getting in as early as possible in the startup's lifecycle (Raise: 31% at accelerator/ pre-seed stages, and 47% at seed stage). “Emerging managers have to compete on a different dimension,” Nick Moran from New Stack Ventures. You're no longer just dealing with capital. Emerging VC's need to be as innovative and nimble as the startups they invest in, having a unique thesis and insights. They also play a role at the top of the deal-flow funnel: helping larger firms find promising companies, so finding a thesis, sector or philosophy aligned partner at a larger firm is helpful. Onwards! #EmergingManager #Startups #VC

24

1 Comment

Great analysis by the AGC team on SaaS public company comps. It's worth a look as we recalibrate mid-way through earnings season. The analysis aligns with the broader Nasdaq equity performance, where the Mag 7 (or fab 4 now :-)) have shown more resilience than the rest of the market. #AGC #SaaS #EarningsSeason #Nasdaq #EquityPerformance

9

Non-Engineering Roles at Early-Stage Startups Offering $120K+ Base Salary with Meaningful Bonus and Equity: Chief of Staff @ Milo (Consumer), Remote Biz Ops Lead @ Fractal Agriculture (FinTech), Remote; Backed by Virta Ventures Chief of Staff @ CakeAI (AI SaaS), NY; Backed by Primary Venture Partners Demand Generation Specialist @ Rootly (Consumer), Remote; Backed by YC, 8VC, Gradient Ventures Account Executive @ CommandBar (Enterprise SaaS), Remote; Backed by Soma Capital, YC, Insight Partners Product Marketing @ Slope (Enterprise), Remote; Backed by YC, Union Square Ventures, Liquid 2 Ventures Supply Planning Manager @ PROVEN Skincare (Consumer), Remote; Backed by YC, FJ Labs, Soma Capital, Social Capital Account Executive @ Accrue Savings (Consumer), NY; Backed by Ground Up Ventures, Tiger Global Chief of Staff @ UNIGRID Battery (Climate), CA; Backed by Union Square Ventures, LiquidMetal Ventures Job details and the full list (40+ opportunities) are in the comments below. If you're interested in non-tech jobs focused on specific industries like HardTech, HealthTech, Climate, etc., then DM me or let me know in the comments.

23

2 Comments

Super helpful #Startup #Equity Calculator to determine the equity for early hires, thanks to Pear VC head of talent Matt Birnbaum! Thanks for sharing Pejman! 🙏🏼 You can read more here How to structure startup equity for early hires: https://lnkd.in/ggmpT5-Y Google Doc: https://lnkd.in/gjsvths6

13

As an economist, I obsess (probably a little too much) about profit, cash flow, and IRR. It's one thing to see gains in paper valuations, but those are just a proxy. Sure investors will vary in their preferences for liquidity, duration etc. but in the end they all require the same thing -- realized returns. There are a ton of companies in limbo right now where they can't quite exit nor are they in a position to generate a dividend. For investors, this is a tough spot to be in, and even more so when it's a systemic trend affecting their whole portfolio rather than a one-off.

9

What does it take to raise capital for SaaS companies now according to Jason Lemkin (SaaStr) Key Takeaway 1: The current venture capital landscape is experiencing significant changes, particularly driven by the rise of AI. Investors are increasingly focused on finding "decacorns" (companies valued at over $10 billion) in the AI space, as traditional software companies are no longer seen as sufficient for generating massive returns. > Agree, its a generational new sector that will change the world in the short to medium term Key Takeaway 2: There's a growing trend of large investments in AI companies, even those without established revenue or customers. This is exemplified by Elon Musk's new AI company raising $6 billion and OpenAI's rapid growth. Investors are making high-risk bets on potential AI breakthroughs, driven by the need for outsized returns. Key Takeaway 3: Established venture capital firms and investors are pivoting their focus towards AI. SoftBank is raising a $9 billion fund solely for AI investments, while prominent hedge fund manager Steve Cohen has restructured his venture fund to concentrate exclusively on AI opportunities. > This signals huge momentum of capital, a good but wary signal. Overall a very good signal. Key Takeaway 4: The AI investment trend is not without skepticism. There's recognition that some companies may be falsely claiming AI capabilities to attract funding. However, real-world applications and significant deals, such as Palantir's $480 million AI contract with the US Army, demonstrate the tangible potential of AI technologies. > As with any new exploding trend, be wary always. Key Takeaway 5: The venture capital industry is under pressure to find and invest in potential decacorns, as traditional software companies, even successful ones, are no longer considered sufficient for generating the massive returns required by large VC funds. This shift is causing stress and driving the focus towards high-potential AI startups. > Power law distribution and math doesn't lie (that much). https://lnkd.in/gHe8tW2E

16

A good datapoint for pre-seed founders looking to onboard advisors. Data shows only 1 in 10 pre-seed advisors get more than 1% equity, highlighting the need for careful allocation. Thanks Peter Walker for the insights to help align grants with the industry & preserve equity for growth. #Advisors #Equity #Founders

13

3 Comments

What do you do as a founder, when you're no longer VC-backable, but are too small for private equity? Join us on May 23rd for a fireside talk with Andrew Chang, where we will explore the venturePE financing model, the gap in the funding markets that we address and how back companies that need that extra push and operating muscle. Lauren Bonner Jonathan Jetmundsen MBM Capital #fundraising #venturePE

17

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

13

Super helpful article and accompanying doc with a #Startup #Equity Calculator to determine the equity for early hires, thanks to Pear VC head of talent Matt Birnbaum! Thanks for sharing Pejman Nozad! 🙏🏼 You can read more here How to structure startup equity for early hires: https://lnkd.in/ggmpT5-Y Google Doc: https://lnkd.in/gjsvths6

30

1 Comment

A new era of deep tech has emerged. First time funds will raise “unheard of” amounts of capital to fuel next gen deep tech startups - producing outsized, superior returns for LP’s compared to the rest. Prudent investors will act on this data and shift investment strategy as LP’s or risk being left behind savvy wealth managers and CIO’s / FO’s who saw this trend begin 4 years ago.

100

8 Comments

“Venture distribution cycles have elongated to the point that LPs now risk a decade of negative cash-flow on many of their VC relationships. That's not sustainable for institutions with large spend requirements, such as a university endowment.” A lack of liquidity in VC is proving to be a major issue for some endowments. There are plenty of medium sized endowments who went full in on the Yale model, but have a lot more concentration risk due to size. That’s a tough game to play when you have required outflows. https://lnkd.in/ewkhEDSi

212

38 Comments

Thirteen percent of venture GPs don’t plan to raise another fund as the LP pullback spoils fundraising efforts, according to PitchBook’s semiannual VC Tech Survey. That’s double the rate in H1 2023, when 6% said they had no plans to raise another fund. Nearly half of venture firms—44% of those surveyed in mid-2023—had previously pushed back their plans to re-enter the fundraising process, as institutional investors became increasingly concerned with overexposure to the asset class. Overall, venture GPs are more optimistic about fundraising and the IPO market than they were a year ago, according to our H1 2024 Tech Survey analyst note. GPs are mostly expecting asset valuations to get more attractive over the next month—which is supporting market activity, though still at subdued levels. While AI remains a top area of focus, investors have expressed concern of overinvestment. Interest rates remain a key determiner of market activity, as well as the need for founders to temper their valuation expectations. While several managers have pushed out fundraising plans or ruled out opening another fund, the majority cited no changes to current fundraising plans.  #fundraising #investments #Capitalraising #privatequity #emergingmanagers #venturecapitalists #familyoffices #USA #Fundmangers #emergingmangers #earlysatge #hedgefunds #AI #Fintech #Biotech #SoloGps #VCs #GPs #LPs #LimitedPartners #Funds #Investing #Networking #Generalpartners #emergingGPs #Principal #Venturepartner #Anylist #Associate

12

2 Comments

Pre-seed to Series A tech founders looking to raise venture capital 💵 Check out the list of VC funds that are investing in Alberta and Canadian companies. Share your one-pager below to spotlight your company in our upcoming VCAA Deal Flow call next week.

46

Summary: The article discusses the newly formed Diversity Data Alliance, which aims to standardize data collection and sharing methods for venture firms and organizations focused on diversity within the tech industry. The Alliance hopes to create a centralized data pool to better track funding trends and increase capital allocation to underrepresented founders. Key takeaways: The Diversity Data Alliance is a collaboration between seven venture firms and organizations, including All Raise and Diversity VC, with the goal of creating a framework for data collection and a centralized database for tracking funding trends. The standard data collection process will help firms gather information on founders and funders in a consistent manner, including demographics like race, gender and disability status. This initiative is part of a larger effort within the venture industry to promote data transparency and understanding of the funding landscape. Counter arguments: Some venture firms may not see the value in sharing this data, as it could reveal disparities in their funding practices. The standardized data collection process may not capture the full picture of diversity as it only includes optional questions and relies on self-identification. #venturecapital #data #tech #startups

1

If I was to do a monthly podcast epiosde segment called This Month in VC 1) Who should I invite as a guest for this segment? 2) Any VC's who would be down to come on and share their stories + insights on this? Basically recapping what happened in that month in VC - It would be an under 30 minute discussion - Recorded remotely using Zoom, Riverside DM me or reply to this if interested Inspired by Harry Stebbings This Week in SaaS to try out a different format

1

Impactful Biz, Ops & Investment Roles at Early Startups & VCs: • Chief of Staff to Ex. Head of Product at Google • Founding GTM at the most YC product used by other YC companies in the past four years • Chief of Staff to a Partner at a Top-Tier VC Fund • Head of Platform of a NY State Backed Accelerator • Investment Associate at a Seed Stage Fund Investing in Category-Defining Companies • Partner at a Defense-Focused VC Fund • Chief Revenue Officer of a New Space Company in El Segundo • Venture Capital Analyst at a fund investing in overlooked geographies • Investment Associate at a Spirit-Focused Fund • Strategy & Ops Lead at a Company Focused on Helping Improve Autism • Senior Product Manager at a Company Focused on Building Shopify for Content Creators • Program Manager for a Space Security Company • Open-ended Investment Position at a Top-Tier Accelerator • Biz & Ops Lead for One of the Most Loved Digital Consumer Products 💸 All companies are well-funded and backed by top-tier investors. ⬇ You can find links to the roles above, plus many more, in the comments.

48

2 Comments

Big things on the horizon, we are motivated and blessed to be at the dawn of a new age for the internet. Read more about our journey below or listen to the podcast: https://lnkd.in/eJeNhvVa

13

1 Comment