/r/venturecapital

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Venture capital news and articles, for the VC industry, and related early-stage investors.

Venture capital news and articles, for the VC industry, and related early-stage investors.

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/r/venturecapital

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10

Tips on closing LPs?

Hi! I’m working at an innovation center and I’ve pushed forward the idea of launching a VC fund. It’s been approved and I’ve been tasked on launching it.

I’ve put together all the necessary materials & established the fund & soon I’ll start fundraising.

The company that I work for has great connections to HNI, Governments, and corporates and will take care of setting up the meetings with those individuals.

My question is basically what tips could you give me to better close those LPs and secure the fund? What things should I not say during the meeting? And so on?

Thank you!

10 Comments
2024/11/09
08:55 UTC

1

TIL that Y Combinator invested $120K for 7% in Cruise, which was bought by General Motors for $1B. How much do you think they got in returns after dilution?

0 Comments
2024/11/07
16:17 UTC

6

Is a personal Brand on linkedIn helpful or harmful for VC Founders?

A friend said that most people find it sketchy when someone posts a lot on LinkedIn as a founder/ Partner. Another said it is helpful.

What is your opinion?

10 Comments
2024/11/07
12:14 UTC

1

Raising a bridge round after series seed

Fundraising progression so far: initial pre-seed round with SAFEs -> series seed (issued Series Seed-1 [new investors] and Series Seed-2 [conversion of SAFEs] stock) -> (current) bridge round.

I’m trying to issue a SAFE or 2 as a bridge round until my next priced round. The lead investor from the seed round will be among the investors.

How would this affect the rights of the series seed investors? Is it customary for the rights of the new investors to be inferior to those of the series seed investors, or is it fine if they’re equals?

0 Comments
2024/11/06
21:33 UTC

3

Has anyone use Notion to replace their CRM, HR, and PM tech stack?

Work for a boutique firm and evaluating if replacing some of our systems for a most cost effective solution that gives us more flexibility and controls.

Any success/horror stories or tips appreciated.

17 Comments
2024/11/06
21:28 UTC

1

Which AI tools do you use?

I recently joined a VC investing in scale-ups in the Netherlands and have been tasked with the mesmerizing project of implementing AI tools in our workflow. Currently, the team only uses ChatGPT or Co-Pilot as a search engine to alter/summarize text or do market research. Curious to hear which tools / workflows or prompts you guys use so I can look smart in the next meeting?

0 Comments
2024/11/06
13:58 UTC

6

Shock. The Ukrainian got into the top 5 in the Artificial Intelligence (AI) Companies With Fewer Than 10 Employees (Top 10K)

Pay attention to the names next to it

crunchbase

1 Comment
2024/11/06
12:57 UTC

5

AI tools

Hi everyone! I am looking at upping our tech stack at our fund. Does anyone have any AI programs that they find themselves using on a daily or even weekly basis? Would also love to hear any opinions on ones to avoid!! This can be anything from deal sourcing, communication, financial analysis, market research, literally anything. Thanks in advance!

2 Comments
2024/11/05
22:53 UTC

2

⚫️ Building AI Tools to solve VCs most important problems

⚫️

I'm an engineer who's been building AI tools for the past 3 years, I'm now building in the VC space.
I've teamed up with the best designer I know who's worked closely with VCs in the past.

We're looking to chat with more people in the space to better understand your workflows and pain points. To build the best products you ever seen, make your life easier, and make you more money.
(if this sounds interesting to you, we would love to chat)

I'm also making this post to start a thread to share and discus any insights we find in our market research.
Will also be building, launching, iterating on many tools so will share the progress and demo's here as well
(They will all be free, we're just trying to rapidly experiment to find where we can create the most value)

15 Comments
2024/11/05
19:24 UTC

0

My inventions and business models - but how to protect from potential investors duplicating?

I will be presenting new businesses that I invented by myself of a scale where every adult will buy for individual use and also for the children. Also - I have intellectual property to register and then to either manufacture or let the existing manufacturers make and sell. How do I make sure that my business models and my intellectual property are not stolen by prospective investors into my businesses and my intellectual property?

16 Comments
2024/11/05
15:59 UTC

1

Tech community in NYC and SF

Where can I find the most active Reddit communities for tech guys ( professionals) and VCs who are actively working in AI?

0 Comments
2024/11/05
14:04 UTC

6

Public SaaS Revenue Multiples (as of November 1st 2024)

Based on an analysis of 168 public saas companies trading on NYSE/NASDAQ, looks like the average revenue multiple (on annualized last quarter revenue) is 6.36x while the median revenue multiple is 4.53x.

So roughly month-over-month (comparing November 1st 2024 to October 1st 2024) this means that the average multiple is very slightly down from 6.48x and the median multiple is very slightly up from 4.48x, but overall basically no change month over month.

Year-to-date (comparing November 1st 2024 to January 1st 2024) the average multiple is down slightly from 6.50x, and the median multiple is down slightly from 4.56x. Not much change YTD.

Source: https://publicsaascompanies.com/saas-multiples/

Will we see an average public SaaS revenue multiple between 8-10x sometime in 2025? Those would be 2021/2022 multiples!

2 Comments
2024/11/05
02:40 UTC

1

Do advisers at places like a16z get paid?

0 Comments
2024/11/04
20:25 UTC

8

Operations at your Firm - Nonexistent or Notable

I’m doing some research on Ops teams within the VC space. Would be great to hear stories of your(or your companies) greatest wins and greatest flops. Best Respnse gets an award ;)

0 Comments
2024/11/04
18:42 UTC

6

VC ROI Analysis

Are there studies, analyses, or deep dives on top VCs ROI over the years? If so, could you share or link them?

8 Comments
2024/11/04
00:27 UTC

5

Looking for Best online or in person events for VCs?

Any recommendations?

5 Comments
2024/11/02
18:23 UTC

1

Leveraging VC funds?

Hey everybody. My banker suggest that using their line of credit will boost our IRR. I don’t see that that clear. Thoughts?

0 Comments
2024/11/02
01:32 UTC

1

Looking for help with convertible note calculation for multiple notes

Hi,

I'm hoping someone can help me. I'm helping a company that has a convertible note with a post-money valuation cap in place. They are looking to do a new convertible note with a different (higher) post-money valuation cap. I'm not sure how to set up the excel file to reflect both notes. My issue is how is the conversion price for each note determined since each one seems to be dependent on the other for determining the fully diluted capitalization and interest that may be converted is accruing on both sides. I understand what t it looks like on day 1 of the investment in the new note, but it's not clear to me how to set up the excel file so it works on go forward basis with convertible interest accruing (and assuming the notes would convert at the same time and not sequentially).

If someone thinks they can help me with setting up the excel file to account for both notes that would be great. Or, if there is a resource out there that helps with convertible notes that would be good to know.

Thanks.

0 Comments
2024/10/31
19:32 UTC

1

Can any one recommend VC companies for mobile games?

After a successful first game released earlier this year in march, with 4+ ratings on both app stores, 4.7 on android currently I will be releasing a live ops game in 2025. I have so far self funded everything, but would be interested to see if any VCs would have any interest in my second game, which is halfway through development. Does any one know any VCs or Private / Family investors that may be interested?

6 Comments
2024/10/31
08:29 UTC

2

VDR price calculator

We build VDR cost calculator and comparison with existing VDR costs https://www.papermark.io/data-room-price

+ list of VDR prices

3 Comments
2024/10/31
08:21 UTC

2

Looking for a VC in the wellness tech space (ideally in San Diego)

any suggestions?

2 Comments
2024/10/29
05:29 UTC

0

Looking for some legend keen to test an Ai chatbot and in return I give it for free for a whole year

Hey everyone! I’ve created an AI-powered chatbot designed to engage with website visitors, answer common questions, assist with lead generation, and even help provide context for sales calls by gathering customer insights. It’s built to not only save time but also to keep potential customers engaged with your business, making it an ideal tool for small to mid-sized companies looking to boost their online presence and improve sales conversion rates.

I’m offering a free, year-long trial to a select group of business owners in exchange for constructive feedback. By using it, you'll get:

  • Improved lead generation: The chatbot engages visitors and collects valuable info, making your sales calls more informed.
  • Time-saving automation: Handles routine inquiries and FAQs, freeing up your team for other tasks.
  • Valuable insights: Gather data on customer questions, preferences, and interests.

If you’re interested or have questions, feel free to DM me! I'd love to hear your thoughts and see how we can make this tool as valuable as possible for businesses.

3 Comments
2024/10/28
11:20 UTC

5

Market Size Research

Hi all, is there a way to source free research reports for market sizing exercise? I am looking for sporting goods market share by sports in India (specifically racquet sports) but finding it extremely tedious to get any information as the market is fragmented. Any guidance here would be really appreciated. Thank you.

13 Comments
2024/10/28
08:46 UTC

8

Who are the top seed and pre seed investors?

I saw a recent post about investors going upstream, closer snd closer to the ideation state.

Who are those investors?

20 Comments
2024/10/28
02:58 UTC

14

Permanent Board Seat

I’m closing my Seed round now. $500k arr, raising $1m seed.

Our Lead is not taking a board seat but our follow on investor wants one.

He is an incredible strategic in our market and has very deep pockets. Also has been great so far and has been generous with his time for something so small (to him)

He wants a board seat (the two others being me and my cofounder) that is guaranteed to him so long as he maintains his pro rata ownership percentage (only ~4%).

Our Lead has no problem with his seat, but is expressing concern with his guarantee. If the Leads still in, idc and I’m inclined to close the round at these terms.

How are Vc board seats typically held? Are guarantees like this atypical? Will it cause friction in my subsequent rounds?

38 Comments
2024/10/28
00:46 UTC

0

Would You Invest In WeWork

I feel like this is an interesting topic and I was thinking about it earlier, if you were invited to fund the business, what changes would you bring first? Personally I think the current business model is doomed. Post pandemic co-working isn't working and they should pivot to mid-market companies (10-100); however do give you opinions.

Just for people to catch up, here's a gist of the problems-

  1. Overexpansion: WeWork's aggressively leased premium office spaces, often signing leases for 10 to 15 years. Post pandemic revenue has been unpredictable and they're indebted.

  2. High Operating Costs: Fixed cost model that too in the high end segment (premium/luxury).

  3. Leadership Issues: Neumann was a disaster but the new ones aren't great either.

  4. Pandemic: Demand is gone, lease problems, commercial real estate market problems etc. etc.

What do you guys think?

9 Comments
2024/10/26
20:42 UTC

31

What’s the deal with all the pre-seed to pre-idea VCs?

Is it just me or VCs are going “down market“?

Are there any significant investments volume there or is it just a way to “learn about the market” and maybe find one-in-a-lifetime deal?

61 Comments
2024/10/26
02:46 UTC

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