/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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0

would you think founding a vc is wise?

Would the market be very competitive for newly founded vcs? also, finding investors etc. is a hard task & i would like some arguments about my initial question, if you got any :)

13 Comments
2024/11/28
22:32 UTC

1

Carry- VP level

What questions should someone ask if they are offered 500k carry in a VC fund? Vp level. How does it all work? I am new to VC and carry and need help asking the right questions and being able to negotiate salary, bonus and carry. When do you get paid out? 10 year vesting sounds like an overkill.

2 Comments
2024/11/27
02:27 UTC

28

Best way to connect with VCs?

to give context, my agency is looking to partner with micro-vc's to help portfolio companies increase revenue through design.

Seems simple enough but from what I've gathered, even getting a conversation going with any VC is borderline impossible without an introduction. We've tried a load of different outreach methods and so far we've seen next to no dice.

Are there any other ways to reach out to a VC that won't just p*ss them off?

49 Comments
2024/11/27
20:08 UTC

23

What’s your strategy for connecting with the right people?

Networking is the backbone of private equity and VC, but I can imagine it’s not always easy to manage outreach while focusing on deals.

My team has been building Artemis, a tool that automates lead generation and outreach, helping firms book high-quality meetings without spending countless hours chasing leads. We’re in the early stages, releasing to a small group of businesses, and we’d love feedback from folks in this space.

How do you all handle prospecting—manual outreach or tools?

19 Comments
2024/11/27
04:16 UTC

24

10% management fees

Is anyone else seeing gp's asking for a 10% management fee? I've recently come across this on a few individual late stage opportunities(not in a fund). It looks like instead of charging 2%/year over 5 years they are asking for 10% up front. What if the company were to have a successful exit in the next year or 2 Does this seem reasonable or excessive?

32 Comments
2024/11/21
17:15 UTC

6

What do you guys think about Diadem Capial?

They claim to help companies close funding rounds 5x faster, have you heard anything about them or have any take on their approach?

https://diademcapital.com/

12 Comments
2024/11/21
01:22 UTC

13

Kickoff a team of AI agents to research companies or sectors - Feedback Wanted

If anyone is interested in testing out our software, feel free to give it a try. You enter a prompt describing a topic you want to research. It creates a team of AI agents and tasks. You hit deploy, then in 10 minutes or so you have a thoroughly researched 10-20 page report. Thanks! https://soaringtitan.com

11 Comments
2024/11/20
19:32 UTC

12

What should someone from the US know before becoming a LP in a fund in the EU?

I recently connected with a European VC whose investment thesis aligns closely with my interests, particularly in angel and seed rounds. They’re in the process of raising a fund and have invited me to participate.

This would be my first venture into investing in a VC fund, and as a US citizen, I want to understand what I might be getting into, especially in the EU context. I plan to consult with a lawyer specializing in cross-border investments if I decide to move forward, but I’d love to hear insights from this community first.

  • What key differences should I be aware of between the US and EU in terms of legal frameworks and terms?
  • Are there notable cultural nuances or unspoken rules when engaging with European VCs that I should consider?

Any advice, lessons learned, or resources you can share would be greatly appreciated.

22 Comments
2024/11/17
13:07 UTC

10

How much to charge? Tech Diligence service to VC

I was approached by someone on my extended network who asked me if I could help him (VC, 1B fund, seed to ABC+) with some tech due diligence, in particular with AI and deep tech topics. Given my experience and my line of work, I can provide this service and assembly a small team of 2-3 experts to run the diligences.

I was asked to suggest a small, quick touch diligence and a deep, hands-on more comprehensive one, to kick off the discussion.

I am completely lost with the possible fees to charge for this. I am ok with the methodology and tech and reporting etc, but I am lost when it comes to price/value/fees. I would like to focus more on value and closed prices than hours.

Any ideas or insights to start thinking? Thanks!

20 Comments
2024/11/16
19:54 UTC

3

Company setup USA

We are a team of founders from Europe. We have one person who is joining from the US once we have a funding. What is the right time to setup the legal company vehicle? Before applying to VCs?

29 Comments
2024/11/16
10:59 UTC

1

How much is the stock market correlated with VC fund returns?

Hi everyone,

I’m trying to understand the relationship between the stock market and the returns of VC funds.

Specifically: How correlated are VC fund returns with stock market performance? Do VC funds perform better during expansions?

Is it reasonable to assume little to no correlation, given that VC funds primarily invest in early-stage companies with long-term horizons, while the stock market reflects public companies and often short-term movements?

Looking forward to hearing your thoughts.

Thanks

2 Comments
2024/11/15
23:43 UTC

1

How do you best prepare for fund of funds and direct investing role in Venture?

Please help, starting a new gig and want to be as prepared as possible. Team has split strategies fund of funds and direct investing. I am starting as an analysts and really want to be successful in the team.

1 Comment
2024/11/15
20:50 UTC

10

Do LPs really consider metrics like KS PME and direct alpha of past funds from the same GPs when evaluating new VC funds?

Hi everyone,

I’m curious about how Limited Partners evaluate new venture capital funds. Specifically, do LPs take into account performance metrics like the Kaplan-Schoar PME and direct alpha from previous funds managed by the same General Partners when deciding to invest in new funds?

From what I’ve seen from the literature, these metrics could provide risk adjusted metrics of the historical performance of the GPs, but I’m wondering if LPs place significant weight on them in their decision-making process.

Thanks!

8 Comments
2024/11/15
17:29 UTC

0

Seeking Warm Intros to VCs

Hi there,

Edit: I know asking strangers for warm intros isn’t the usual route, but I believe in the power of community and the surprising ways connections can happen. So, I’m putting myself out there in the hope that someone here might resonate with my journey or know someone who does.

I’ve spent the past few years building and scaling a successful agency specializing in SEO and digital marketing.

It’s been an incredible journey, and we’ve helped numerous clients achieve significant growth. But now, I’m ready to take on a new challenge: building a product.

While I won’t go into specifics about the product here, it’s something I’ve been deeply passionate about, and I believe it has the potential to solve a real problem for a large audience. With my background in SEO and growth marketing, I’m confident in our ability to create and scale this product effectively.

As a bootstrap founder, I understand the value of money and how to manage it effectively. Every rupee in my agency was reinvested strategically to drive growth, and that same discipline will guide me as I build and scale this product.

My biggest constraint right now? Finding warm introductions to VCs. Having operated in the bootstrap world, I know how essential the right connections are, and I’m looking for investors who value founders with operational experience and a proven track record in execution.

If you know someone who might be interested or can point me in the right direction, I’d be incredibly grateful.

Feel free to DM me or comment here if you’re open to connecting or sharing advice—I’d love to chat.

Thanks in advance for any help!

41 Comments
2024/11/15
17:08 UTC

1

Does anyone use Beauhurst?

Hey,

I was wondering if anyone here has experience with Beauhurst? Both their platform accounts and their API? I can't for the life of me find anything on pricing on their website.

0 Comments
2024/11/14
21:52 UTC

3

Aerospace and Defense Focused VC Funds

Trying to break into VC world, does anyone have a list of A&D focused VC funds?

4 Comments
2024/11/14
19:43 UTC

3

AI Digital Health

Anyone here invest in early stage digital health? Why are some reasons you find this space interesting and why would you not invest?

3 Comments
2024/11/14
18:53 UTC

18

Can someone please review my pitch deck?

My pitch deck is done, and I would be really grateful if someone can please review and provide with feedback before I send it to funds. It's a B2B SaaS. If it matters, we have some paying customers already and want to go for pre-seed round.

Please drop a comment or DM, and I can send it to you. Thank you.

85 Comments
2024/11/12
18:23 UTC

14

Are you familiar with PitchBook?

Hello everyone!

I’m currently working with data from PitchBook and am hoping someone with experience in this platform or VC fund data can clarify a few things for me (their support has not been useful at all). Specifically, I have questions about the “Contributed” and “Distributed” variables, which, from my understanding, represent the cumulative sums of contributions and distributions by a fund’s Limited Partners.

Here’s where I’m encountering issues:

  1. The “Contributed” variable should represent a cumulative total of contributions, meaning it should only increase or stay the same over time. In theory, this cumulative sum shouldn’t decrease (e.g., if it decreases, that could imply a negative contribution, which would actually be a distribution and should appear under “Distributed” instead). However, in my dataset, I’m seeing something like this for bot "Contributed" and "Distributed". Is this drop in “Contributed” in 2003 common or expected, or could it be a data entry error?
    • Year | Contributed
    • 2000 | 250
    • 2001 | 251
    • 2002 | 252
    • 2003 | 249
    • 2004 | 252
    • 2005 | 253
  2. For some funds, the “Distributed” variable, which should represent the cumulative distributions, actually shows negative values. This seems counterintuitive, as distributions should represent returns paid out to investors. Could this be due to an interpretation of certain contributions as distributions, or are there other reasons for negative cumulative distributions?
  3. Similarly, I’ve encountered cases where the NAV shows negative values. Are these occurrences typically treated as data anomalies or outliers, or is there an underlying explanation for these fluctuations?

In general, is it best practice to treat these as data entry issues and adjust the cumulative figures to avoid decreases, as in the corrected example below, or could they have specific interpretations I’m missing?

  • Year | Contributed
  • 2000 | 250
  • 2001 | 251
  • 2002 | 252
  • 2003 | 252
  • 2004 | 252
  • 2005 | 253

Any insights would be greatly appreciated. Thank you in advance!

13 Comments
2024/11/12
16:39 UTC

0

Considering starting a fund

Are there books I can read that will increase my knowledge of venture capitalism or courses

40 Comments
2024/11/12
09:28 UTC

22

What's your secret agenda?

It's a provocative title.

I’m a serial founder, interesting enough to land in the automated outreach sequences of Tier 1 VCs—not quite interesting enough, though, to get direct calls from their managing partners.

I’ve launched a new AI startup, and pretty quickly, a few associates from top funds reached out with lines like, “Super curious to know what you're up to” or “I want to support you” and stuff like that.

Now, these funds are Series A+ players, and I’m hardly even at pre-seed stage, so I know I’m not exactly their investment target. I’m not even fundraising—I’m good for now, thanks to my last exit. But I take the calls anyway; it's solid practice.

When I join, though, it’s usually underwhelming. You can tell they're reading from a script, probably the same one they used with another 18 founders today. They ask questions about the problem I’m solving, my business model, etc., scribbling notes like maniacs, only to wrap up with, "That’s interesting; keep up the good work, let’s stay in touch."

I have a few friends in investment banking who do similar “market research” work, setting up calls with executives under the guise of “interest,” all to gather insights they can report back to clients in related spaces.

So, am I being a bit paranoid to think there’s a hidden agenda behind these "get to know you" VC calls, or is it a genuine attempt to build a future investment pipeline?

11 Comments
2024/11/11
20:13 UTC

5

Figma

Would you invest now if you had the opportunity? M&A back on the menu

8 Comments
2024/11/10
16:39 UTC

56

How is your fund’s thesis changing with a Trump presidency?

Given Trump has hinted at a few things - although given his history, who know what he’ll ACTUALLY follow thru with - has your fund/firm started to discuss how your investment approach/focus will change?

31 Comments
2024/11/10
13:08 UTC

15

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!

20 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

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