Kauffman Fellows的动态

???"The actual product you're going to build will change 100 times; don’t spend too much time selling me that product. I need to believe this is a deep underlying problem and that you will spend all your time on it for the next ten years because the problem is so big, and your need to obsess over it and solve it for the customer is so great." Rachael Neumann from Flying Fox Ventures, talks storytelling, problem-solving and exit plans for founders and investors. ?? Curious about the role of storytelling in the investment and startup space? You're in luck. We're hosting a special event on that very topic. Join us for Vision to Venture: The Power of Storytelling this Wednesday. ?? Register here: https://lnkd.in/ge58d_Xy

Founders - if you're in negotiations with a VC and they are asking for a higher percentage of your company due to "market conditions", show them this chart. Median dilution (meaning percent sold to investors) in primary venture capital rounds in the US has actually ???????????????? from the second half of last year until now. Look - there are many reasons why this may be the case and not all of them are founder-friendly. ??????????????-???????????????? ???????? ?????????? ????: ? VCs (especially at early stage) recognize that over-diluting the founding team sets up challenges that on for future investors. ?? ???The general startup market has settled on more reasonable terms for most deals (about 20% in seed and series A, for instance) even outside of Silicon Valley and NYC. ??????????????-???????????????????? ???????? ?????????? ????: ? Only the "best" deals are getting done, and therefore the founders in those competitive deals still retain a lot of leverage in ownership discussions. ?? ? There's some increased expectation of bridge or extension rounds, typically led by investors already on the cap table - so they may increase their ownership through that route instead. ?? ? Terms like liquidation preference and participation are popping up a little more frequently than before. But in general, it seems that even in this difficult fundraising environment, dilution for founders in a given round has drifted downward. Cool to see, even while the distributions with each stage remain rather wide. (And take it easy on those VCs - they do need a certain percentage of ownership to make the math work on this whole asset class!) ???????????? ???????????????? ?????????? ? Seed: 20.4% sold to investors ? Series A: 20.0% sold ? Series B: 15.2% ? Series C: 12.6% Share with a fundraising founder! And if you're in pre-seed stage, shout out in the comments for a link to our pre-seed event on Wednesday morning where we'll cover dilution in SAFE or Note rounds. Final caveat -??this is across all sectors. If you want a sense of dilution for your sector specifically, let me know below. #startups #fundraising #founders #dilution #venturecapital ?

Some valuable data here!

It was 2013, and I was on a call with a potential angel investor. He asked me to send a cap table. I said I would. We hung up. I googled what a cap table is. Such is life as a founder. Figuring things out as you go along. For us at Oyster Bay Venture Capital Cap tables are now our daily bread and butter. And having a bad one can make your company unattractive. I know — since my own cap table was pretty much not fundable. 5 co-founders of which only 1 was active in the company. Over 20 individual shareholders with no pooling agreement. If you are in this spot as a founder — and you are the active one — stop. Renegotiate your cap table with your co-founders and angel investors right away. No institutional VC will invest at a seed or Series A round, if the founders don't own significant shares of the company. At Oyster Bay, this is roughly what we like to see: ? before the Seed stage: founders own 80-100% of the company ? before the Series A round: Founders own more than 60% of the company ? before the Series B round: Founders own more than 50% of the company ? To turn this around — a Series A, where the founders own less than 50% of the company is something that we have a hard time accepting. Exceptions prove the rule. This is key for us as we are convinced that founders are the key to building great companies. There are certain make-or-break decisions only founders can take. IF they own a large part of the company, they will actually have the power to take these decisions. #Startups #Founder #Growth #Success #CapTable #AngelInvestor

Exploring New Paths to Exits: A Must for Today's Startup Ecosystem A recent report from PitchBook reveals a mounting challenge for the startup ecosystem: exit options are becoming increasingly limited. With VCs collectively holding unicorns valued at $2.5 trillion, almost 40% of these companies have been in portfolios for nine years or more. This growing backlog is reshaping strategies, urging founders and investors alike to rethink traditional exit pathways. With IPO markets stalled and M&A activity under pressure, companies are exploring alternative exit options to realize returns. Creative solutions, from secondary markets and private equity buyouts to strategic partnerships, may hold the key to unlocking value in a challenging environment.

The Upfront Ventures is one of, if not, the best VC summit in the world. Each year it gets bigger and better, and Mark Suster and team do a fantastic job in creating an experience for LPs, GPs, and founders. This year was no exception, and I had a great time pairing with Yair Riemer of Upfront Ventures and David Frankel of Founder Collective speaking about the state of the venture industry today. A few main points we covered: 1) The substrates of seed is very complex, but seed rounds in general will continue to be larger than pre-2021 as the milestones necessary to raise a Series A have increased substantively (and these A round investors are concious of B round milestones). Companies will also be forced to grow more efficiently, which will take more time to meet necessary milestones. 2) Narrative based financing at the Series B and beyond (outside of a few exceptions) are gone. Companies will have to show real traction and viability beyond just revenue growth to raise B rounds from top investors. 3) The 1,200 or so unicorns will be a long, slow repricing/markdown process. The majority of these unicorns (80%+) are highly unlikely to rach anywhere near their last round valuation (esp if done in 2021) within 5 years, and many of these will return no meaningful outcome for preferred shareholders (and wipe out all common shareholders). With the amount of kicking the can down the road, we may not be able to see the full damage until the end of 2025. This is also why publicly available VC benchmarks are fairly useless from outside of DPI from 2017 on. 4) Sobriety is back, and capital constraints drive creativity and resourcefulness. This was not present for most of the 2010's, but not capital supply is equivalent to more appropriate capital deployment (both LPs/GPs). Very optimistic about the next decade.

In 2023, European startups encountered challenges, impacting deal-making and valuations. Despite investor caution, 2024 holds promise for a rebound.? When it comes to raising capital, the process is intricate, with investors closely examining every aspect for potential red flags. Our upcoming article dives deep into these red flags, addressing cap table intricacies, ESOP concerns, and equity distribution. Join us to navigate startup ownership and attract capital without pitfalls. https://lnkd.in/dX4--VY6

How to Raise a Series A in 2024: What Founders Should Know. The venture capital market may be stabilizing, but raising a Series A is still tough. Here’s how founders can navigate today’s challenges: 1. Start Early: Begin fundraising with 12-15 months of runway left. Investors recommend prepping your business model and metrics at least 12-18 months in advance. 2. Focus on Metrics: Investors are prioritizing profitability and customer retention. A strong product-market fit is essential. Founders need to demonstrate a clear path to profitability and solid unit economics. 3. Prepare Your Pitch: Decks should emphasize the team’s strengths, market potential, and customer acquisition costs. Metrics, not flashy presentations, will secure the funding. P.S. When do you plan to start your Series A journey? Learn more about how we are helping Startups raise Series A: https://lnkd.in/dKFgJcbF #StartupFunding #SeriesA #VentureCapital

“Venture capitalists may shift focus to divert more funds to their current portfolio companies rather than seek new opportunities. That means that, in order to capture investor attention in a down market, startups seeking early-stage funding usually need to adapt their tactics — including focusing on the right metrics to demonstrate clear market opportunity, early signs of traction, and clear growth potential.” Metrics on cash flow, burn rate, Tam and traction crucial.

In 2023, European startups encountered challenges, impacting deal-making and valuations. Despite investor caution, 2024 holds promise for a rebound.?? When it comes to raising capital, the process is intricate, with investors closely examining every aspect for potential red flags.? Our upcoming article dives deep into these red flags, addressing cap table intricacies, ESOP concerns, and equity distribution.? Join us to navigate startup ownership and attract capital without pitfalls.? https://lnkd.in/dX4--VY6