?? A Massive VC List

This week we're diving into SAFEs, a comprehensive VC list, and AI's impact on healthcare. Let's get started!

?? The SAFE Tipping Point

Peter Walker , Head of Insights at Carta, hosted a podcast with David Willbrand , Chief Legal Officer at Pacaso and author of Seed Deals. They discussed valuation caps, discounts, and liquidation preferences, noting that discounts are falling out of favor as investors opt for valuation caps.

"The compounding effect of SAFEs is what is tripping up founders. I've heard that more in 2024 than my entire time at Carta."

— Peter Walker, Head of Insights, Carta

STV Take

The danger of stacking SAFEs can't be overstated. This is why great legal counsel is crucial—they provide context on market norms and highlight potential pitfalls.

A key point made around minute 17: the focus with a SAFE valuation cap is about ownership, not valuation. This nuanced difference between how some founders and investors think about round dynamics is critical. The question shouldn't be about a company's worth, but rather how much equity a founder is comfortable parting with at a given financing round.

?? An Exhaustive VC List

Edrizio De La Cruz shared an impressive compilation of investor lists on LinkedIn . It's broken down by stages, regions, industry, and even angels.

STV Take

Finding the right investor can be challenging, especially when you're just starting your fundraising journey. This list is an excellent jumpstart to your process. Here's how to use it effectively:

1. Identify investors that could be a good fit based on their preferred stage, region, industry, etc.
2. Look up people who work at these firms on LinkedIn and try to find a warm intro.
3. If a warm intro isn't possible, a carefully tailored cold email can work, though it's less than ideal.

?? Unpacking the AI Hype Cycle in Health

Parth Desai , Partner at Flare Capital Partners , recently analyzed the past 10 years of healthcare AI funding data. His findings show that AI companies selling to health plans and life science companies have created more value, while those selling to health systems lag behind.

STV Take

While the article equates funds raised with customer traction (an assumption worth noting), this analysis provides valuable insights into AI adoption in healthcare. Parth's breakdown of why certain customers might adopt faster than others is particularly insightful.

Even if you're not building in health, this article can help refine your target customer base and understand why investors might be wary of companies selling to certain types of customer entities.

Remember, understanding your market and potential investors is crucial for success.

Happy fundraising!