Mark A. Phillips

Having a Cars and Capital event tomorrow in Southern California with Oren Klaff. If you want to join message me. https://lnkd.in/gDQ4D39u Oren Klaff Bridger Pennington #InvestorEvent #FamilyOffice #InvestmentOpportunity #CarlsbadEvent #PrivateEquity #WealthManagement #InvestmentConference #CapitalRaising #NetworkingEvent #IndustryLeaders #FinancialGrowth #InvestorsMeetup #WealthBuilding #BusinessGrowth #InvestmentForum

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We're transforming Aithor into the go-to #multitool and have rolled out 3 new features in A/B testing mode. Here’s what’s new: (1) #Topic Generator – Crafting clear titles for coursework. (2) #Structure & Logic Builder – Creating a table of contents and essay plan. (3) #CoPilot – An AI-driven text creation assistant, suggesting whole paragraphs based on your writing and chosen topic. Big deal. Great plans. We're in the middle of a #repositioning, which is priority-1 right now. We’re moving away from our current positioning to better resonate with our #academic commitment. Sticking with our old vibe was tough; including restrictions from a few platforms. As AI skeptics are watching, any negative publicity makes us a target, since #AI is still viewed with suspicion. We're expanding our toolset to reach a broader audience and be more helpful to the academic community. We’re not focusing just on students & scientists anymore; we're also stepping into marketing and text creation. The core of what we do is to #reduce the time spent on routine tasks and #focus more on generating better ideas. With the new positioning, we're also on the hunt for funds to accelerate our growth, aim higher, and plan our grand exit in 2025. Keep your eyes peeled — I’ll share more about our repositioning soon!

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Exciting news for startups! California accounts for about 50% of all venture investments. The not-so-secret reason is that non-competes are illegal in California, so engineers at FAANGs can build competitors without fear. Today, the US Federal Trade Commission declared non-compete agreements illegal nationwide. This means that engineers at big tech companies can now leave and build their own companies without fear of violating a non-competes (legacy agreements for executives are still enforceable - talk to your lawyer), this is a step in the right direction for fostering innovation and competition across the country. A variety of big-business groups have vowed to sue to bring non-competes back, but at least for now, they're gone! #startups #innovation #competition #noncompete Official Announcement: https://lnkd.in/gRXUpgDy Impending lawsuit: https://lnkd.in/gqSiVuTd

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🌟Innovative VC Firm Overcomes Exits Drought with Secondary Sales🌟 ⛵Navigating a challenging landscape where exits are scarce, Santa Barbara Venture Partners (SBVP) has pioneered a novel approach to sustain its growth and attract investors for its second fund: secondary sales. Instead of waiting for traditional exits like IPOs or acquisitions, SBVP opted to sell shares of its portfolio companies, demonstrating its ability to generate returns for investors and stand out in a competitive market. 🎤According to Dan Engel, founder and managing partner of SBVP, these secondary transactions have been a game-changer, sparking investor interest and bolstering the firm's credibility. By leveraging its recent successes, including a lucrative stake in sports-betting company DraftKings Inc.' acquisition of digital lottery app Jackpocket, SBVP seized the opportunity to return profits to its limited partners (LPs) and pave the way for its second fund. 💡Engel highlighted the challenges faced by young VC firms in raising subsequent funds, particularly amid a downturn in exit activity and heightened investor scrutiny. With traditional exit routes becoming increasingly elusive, the pressure is on for firms to demonstrate tangible returns and establish a track record of success. ✨"For us, secondary sales have been a game-changer. They've helped us return profits to our LPs and attract investors for our second fund," said Dan Engel. 💰For SBVP, the decision to pursue secondary sales was driven by the need to provide liquidity to LPs and validate its investment thesis in the eyes of prospective investors. By strategically offloading portions of its holdings in high-performing portfolio companies like Bark Technologies and Rad AI, SBVP not only generated substantial returns but also bolstered investor confidence in its ability to deliver results. ⚠Despite the complexities and potential stigma associated with early share sales, Engel emphasized the importance of prioritizing investor returns and seizing opportunities to unlock value for stakeholders. With a focus on profitability and transparency, SBVP remains committed to its mission of delivering sustainable growth and maximizing returns for its LPs. 🔍 "Returning profits to our investors is our top priority. By strategically selling shares, we're proving our commitment to delivering results and driving value for our stakeholders," added Engel. As SBVP continues to explore secondary transactions and expand its investor base, the firm stands as a testament to innovation and resilience in the face of market challenges. 🚀 ✅ Looking to raise capital for your #fund and increase the international pool of your LP #investors?   🤝 Need warm #LP introductions?   📝 Selling #secondaries to increase liquidity?   🧐 Looking for co-investments?   ▶ G+QUANT's link for inquiries and fund decks: https://lnkd.in/gjC_EuTE #VCInnovation #SecondarySalesSuccess #InvestorReturns #ValueCreation 

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How to value a seed stage company? Who knows...(Well, Jack McQuire does but I had to fill in for him at the last minute for last week's Valuation Masterclass.) Here's a slide I prepared highlighting some of the recent seed rounds we have led and supported. Two surefire valuation methods: comparables (i.e. numerous rational references to companies similar to you) and the market (i.e. pitch as many investors as you can and see where they land). I have seen valuations double simply as a result of well-managed competitive processes. Governance, Terms, and War Stories sessions coming up. Register here: https://lnkd.in/ghJJpdR4

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AI is transforming our industry. Read more about how in Bill Pieroni's latest column!

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We provide fractional CFO help for companies looking to fundraise or do M&A. I'm always surprised when I review investor decks at the number of companies that provide TAM calculations which are top down, versus bottom up in nature. "Here is a generic link for an industry we operate in, and here is the rough market size we'll get to..." I'm not saying this is wrong, but if should be triangulated out with a bottom up calculation to get to TAM, SAM & SOM. These calculations help both a company and the individuals reviewing the deck understand which customers an entity is targeting, the subgroup within this, the geographies they are based in and the number of companies in each geography. It provides a timeline for initial customers that will be targeted, and market share reached (SOM), scaling up to more geographies and customers (SAM) and then what the total addressable market is (TAM). We're offering a free review and feedback of these calculations for any companies interested in exploring their TAM calculations further. Happy Monday all and have a cracking week.

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When you are raising capital, are you focused on your immediate needs or long-term business goals? Whether it's bootstrapping, crowdfunding, or courting investors, each option shapes your company's trajectory. Consider Native Deodorant's story which launched with minimal outside funding, and sold for $100 million within 2.5 years. And the crazy part is the founder retained over 90% ownership! On the flip side, Juicero raised $120 million only to collapse when customers bypassed their high-tech juicer for a simpler, no-tech approach. Before chasing capital: 1. Reflect on why you need funding. 2. Determine how much you need. 3. Decide how much control you're willing to share. Remember, your investors should offer more than just money. Get strategic investors who broaden your network, offer mentorship, and add other value to your business. Seeking the perfect funding match is an essential strategic decision. How did you choose the right financial path for your startup? For more tips on #entrepreneurship and #investing, follow me, Ashesh Shah.

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Solid niche workflow-based SaaS should generate a clear, hard ROI for their users... Our latest analysis of an off-market SaaS serving the countertop fabrication industry provides compelling insights into the benefits of a targeted vertical strategy. // Key Takeaway: Specialized, workflow-based software doesn't just fit seamlessly into niche business processes—it significantly amplifies their efficiency. The SaaS solution for countertop fabricators we studied showcases this perfectly, with users reporting an average 25% decrease in task time. Such targeted solutions exemplify the power of niche SaaS to drive substantial business outcomes by honing in on the unique challenges and demands of specific industries. // Why This Matters: For investors and entrepreneurs, the success of this countertop fabricator SaaS is a potent reminder of the lucrative potential in niche markets. For software developers, it’s an affirmation that deep understanding and integration into a customer's daily workflow can lead to significant market success. What niches are you most excited about or interested in? #SaaS #NicheMarkets

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Long The VIX 📈 Amplifier Capital positioned a series of calendar calls at ~11.60. Our thesis was that volatility insurance was super cheap, and we are seeing a broader destabilization in the market. And expect volatility to keep increasing until the end of the year. This last week has been a terrifying reminder of how fragile democracies are; violence is never an answer; regardless of party lines, it erodes the foundations of the democratic spirit. The global internet outage has highlighted massive failure points in digital infrastructure. We have also identified a couple of other catalysts that may spike volatility. The Vix has been sitting up 34% since we took a position in early May. Please reach out if you would like to discuss our thoughts on volatility. Amplifier Capital Roland Filler Carson Boettinger Lijia H. Kristina Kulikow #VIX #stocks #volatility #correction #microsoft #internet #outage

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From 2017 - 2021, I lead growth efforts for Southern California’s largest innovation lab, Toolbox LA. 🚀 It was HQ for MiLA Capital, an early-stage hardware fund investing in tech you can touch. 🤖 I was fortunate to have amazing leaders who believed in my abilities and let me experiment. They also took the time to teach me new concepts about project management and finance. This was critical to our success. Without exceptional leaders, it's really hard to scale anything successfully. I feel so fortunate to have worked for smart, kind, and thoughtful investors who taught me so much. Thank you, Noramay Cadena, Carmen Palafox, and Shaun Arora for all that you've done to help my career. Here are some results I achieved through strategic marketing initiatives around customer acquisition (we had 2 business models: monthly membership fees and event space booking fees) 🚀 Grew memberships and revenue within the 24 months of operation from $4,000 to $35,000 MRR 🚀 Maintained a sales pipeline of over $500k in leads utilizing the HubSpot CRM system 🚀 Leveraged new and emerging industry-related digital channels (Peerspace, LiquidSpace, Croissant) for brand awareness and $150k in lead generation 🚀 Worked with LA Mayor Eric Garcetti’s team to launch Toolbox LA in tandem with LA’s Manufacturing Week, resulting in over 1000+ RSVPs, media coverage, and a continuation of successful government relationships 🚀 Launched First Fridays, a monthly event series showcasing local artisans, small businesses, creatives, and DTC brands There was a lot more we accomplished, but those achievements are the ones I am most proud of. Reflecting on this time, I am incredibly grateful for the ability to experiment. Freedom and trust within an organization are key to sustainable growth. We also had a major advantage in our value proposition: we were the only innovation lab in Southern California with open, community access to a full maker space, wet lab, and coworking amenities. I learned so much about product prototyping from the members and portfolio companies. I wish I could tell you this place still existed, but we were one of the unfortunate consequences of the pandemic. We shut down in January 2021. Now, it serves as home to Machina Labs, which is doing some truly innovative work in AI and manufacturing. I still use the Toolbox LA mantra when tackling hard problems: "Wake up, kick ass, repeat" This is just one chapter in my 16 years of experience in marketing, community building, and partnerships. Would you like to learn more about customer acquisition strategies? The RAR Studio is now accepting applications for Cohort 2 of Founder Bootcamp. You'll get to learn all my tips and tricks. And you'll also get 1:1 strategy sessions each week. Apply now: https://bit.ly/4aRHzF8 Would love to hear from anyone who's building something interesting and chat about growth strategies! #marketing #community #innovation #growth #leadership

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"Hire an operator." A common phrase in the world of buying businesses — but vague. GM and CEO are very different roles, for example, though often those 2 terms are used interchangeably in small business. Matthew Saskin recently hosted a webinar with Acquiring Minds on how to hire an operator, and one of the best slides was this one. A clear breakdown of operators that are *managers* versus those that are *executives*. You'll see how stark the differences are. Hopefully you find this as helpful as I did. (And if you're interested in the recording of Matthew's webinar, link in the comments below.)

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Asset managers in the ground transportation space - want to learn more about motorcoach values, collateral, credit & industry operators? Reach out to Chelax. Do you need your portfolio analyzed? Reach out to Chelax. Trustees managing a bankruptcy - reach out to Chelax. Investors looking to purchase a motorcoach operation - reach out to Chelax. Operators need fleet guidance - reach out to Chelax. ☂️ 🚌

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California’s Assembly Bill 3219 which targets private equity groups and hedge funds that directly or indirectly acquire a material amount of, or establish a change in governance or sharing of control over, health care assets, including partnerships and joint ventures, is closer to becoming law following the State Assembly’s May 22, 2024 passage of the pending legislation. The legislation is currently being considered by the California State Senate, where approval must be obtained prior to the end of the legislative session in August if it is to be enacted into law in 2024. The bill defines “health care facility” to include any “nonprofit or for-profit corporation, institution, clinic, place, or building where health-related physician, surgery, or laboratory services are provided,” such as inpatient and outpatient centers, long-term care facilities, and labs. Covered provider groups include all groups of 10 or more licensed health professionals (LHPs) or groups of 2-9 LHPs with $10 million or more in annual revenue. Private equity groups and hedge funds that enter into an otherwise covered transaction with providers consisting of 2-9 LHPs that earn between $4 and $10 million in annual revenue would be required to notify the Attorney General, but the transaction is not subject to approval. The same is true for groups of 2 or more nonphysician LHPs that earn more than $4 million annually. The proposed legislation has serious implications on the use of the contracting structure that many private equity groups utilize to carry out investments while navigating California’s prohibition on the corporate practice of medicine (CPOM) - the “Friendly PC-MSO Model”. This model involves a private equity or lay person-controlled management services organization (MSO) contracting to perform administrative services for a health care practice in return for a management fee, while also having certain rights regarding the ability to designate successor ownership of the practice upon the occurrence of certain triggering events. As currently drafted, the bill could render the Friendly PC-MSO Model unviable or more difficult to employ by prohibiting any physician practice from contracting with any entity controlled “by a private equity group or hedge fund in which that private equity group or hedge fund manages any of the affairs of the physician practice in exchange for a fee.” Disclaimer: This LinkedIn post is for general informational purposes only and does not constitute financial, investment, tax, legal or accounting advice nor does it constitute an offer or solicitation to buy or sell any securities. #healthcare #dentistry #privateequity #mergersandacquisitions #law

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Ditch your employer and go start a competitor, because the FTC just banned noncompetes nationwide and invalidated existing ones for everyone except senior execs. California already refused to enforce non-competes, which many think contributes to the rich startup ecosystem here. Now the question is whether employers become more cagey about widely sharing strategy internally. It also puts even more pressure on companies to retain talent with great employee experience. Now constant re-orgs, office politics, and annoying work-from-home policies could instantly give competitors a boost or spawn new rivals

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Any Idea what LAV57.83.100 means? It’s a metadata artifact that frequently shows up when a photo has been generated or modified by AI. It’s a much faster way to determine a deep fake than studying a photo for hours. This is only one of many common artifacts generated by AI but if you don’t know what to look for, it's just another set of random letters and numbers in an even longer string of letters and numbers. You don’t need to be scared of new technology; you just need to know what you are doing. Fraud Sniffr, Inc. can help. Learn more about how at https://hubs.li/Q02C4Nd10 Start a search today at https://hubs.li/Q02C4N9c0 #SIU #ClaimDefense #TransportationDefense #LiabilityDefense #RetailDefense #RestaurantDefense #Innovation #Technology

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Want to know what the California Air Resources Board had to say about #ACFR implementation last night? Cloverleaf AI monitors these hearings distills insights, so your team can stay focused on doing their job. Reach out for a free customized summary! #cleanfleet #Advancedcleanfleet #Fleetelectrification #EVfleet #Hydrogenfleet

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How Collectors Can Keep Art On Their Walls Before Giving It Away To Non-Heirs…"GRIT" Collectors who decide to give their art to a friend or a non-immediate family member can save on taxes and keep their art on their walls for years at the same time. They can use their collection to fund a grantor-retained income trust (“GRIT”), which allows the grantor — whoever funds the trust — to keep the art for a set number of years. When the GRIT terminates, the art goes to the designated beneficiary. GRITs also freeze the taxable value of the art even if it appreciates substantially. This value is also discounted, depending on the length of the trust and an interest rate calculated by the IRS called the 7520 rate, which has more than doubled since 2019 to 5.4%. The collector can choose anyone in their family except for immediate relatives or descendants and their spouses. Unmarried partners and aunts and uncles are fair game. Here is an example of how it can work, according to House of Craven: Consider a 60-year-old collector who owns a painting with a fair market value of $10 million. He funds a GRIT when the 7520 rate is 5%. When the GRIT ends in 10 years, the painting will go to his nephew. The gift’s taxable value is discounted to $5,397,700 despite the painting’s worth appreciating to more than $16 million, assuming a 5% growth rate.The collector has used less than half of his federal estate tax exemption, which is currently $13.61 million per individual, thanks to Trump’s tax cuts. This means the gift will not incur a 40% federal estate tax. If he had waited until death to bequeath the painting, the $16 million gift would incur $2.39 million in federal estate taxes even if Congress extended the exemption, and it was the collector’s only taxable gift. To learn more, please visit: www.houseofcraven.com https://lnkd.in/ezv8jkkF

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