Problem: Underserved founders have limited access to capital
Solution: Create more investors π° with different approaches to venture investing
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There are now more and more syndicates and platforms for angel investors and even micro-angels both in the US and Europe that can help you invest in emerging VC funds (normally small and top performing) with as little as 1k (sometimes less)
Give a β€οΈ or comment along if you want to learn more. Gauging level of interest. I'm happy to DM you some of my favourites :)
" Venture capitalists' attention spans are at their shortest, but a concise, attractive and effective pitch deck can catch their interest". A decent pitch deck matters to startup.
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It's no more than a CV that gets you to the interview and something for the investor to ponder upon after the interview. It does not get you the funds.
So, just like when writing a CV to get a job interview, all you really need to do is to create a simple to understand validation for your team, market opportunity chased and reasons to do something about it right now, right with this company.
From using light to create qubits to building replacements copper interconnects and hybrid super-fast computer architectures, new photonics hardware players are taking advantage of a big market shift:
β’ Photonics offers silicon speed at a fraction of the price.
Why new VC funds offer the greatest opportunities in Venture Capital?
Here is a π§΅+ article on 3 reasons why new VCs firm are often more successful than established venture funds, according to research from Equation, an investment platform that focuses on the asset class:
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"Among the 10 best VC funds of a given year, a disproportionate number of investment firms are represented with their first or second fund" - Mark Schmitz (Equation)
1. Young funds invest particularly early
"Small funds tend to invest in startups early, large funds in the growth phase when the need for capital increases...Furthermore, a small fund is 'easier to multiply'."
Yesterday @allocategp happened: by FAR the best event in Europe for emerging VC managers and their LPs
I was one of 12 new GPs coming to market that presented, each showing interesting facts about their niche
If you missed it, here are some highlights from the day:
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@yoramdw from @dealroomco kicked off the event with some interesting data and insights on the European VC market:
1. Most hype in the last 2 years happened at growth stage: as the market contracts expect the biggest fall there -no great news for those gambling in pre-ipo rounds
2. VCs raised a TON of money over the last 2 years and even in Q1 2022.
And even though this is set to decline in Q2, there is still a lot of dry powder out there that will need to be deployed.
If you're a startup with healthy valuations and a great product, you'll be fine
Raising your first startup round (or first VC fund) is tough. Selling is tough. And for both you may need to send some COLD EMAILS to build new contacts.
Based on data found by @Streak on sales + my own experience, here are some tips on how to write... Subject lines!
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1. Don't make your reader cringe: Weβre all sick of over-the-top sales messages in our inbox, so filling your subject line with superlatives & guarantees is a great way into the spam bin.
69% of recipients report an email as spam based solely on the subject line say Streak
2. To the point. The average response rate of cold emails is 1% βbut as my fellow investor Dan from @Superseed_VC said on LinkedIn the other week: investors WANT to invest. And prospects want to buy. Go to the point and catch their attention without hype. You do have chances.
"Donβt put 1:1 reserves in place simply because itβs the norm. Instead, consider where you like to invest and where you can successfully invest."
Great article by @SapphireVC and a great piece of intel for new fund managers (TA @WorkMJ for sharing on LI)
Here some great highlights:
β Reserves mean you need to return more capital.
β Reserve dollars have to be concentrated into winners to improve fund performance and there usually arenβt many of them (like 1 to 3 out of the whole portfolio kind of thing)