David Chitester - Seedfunders

Peter Zeihan's advice to help Mexico's industrial expansion...😅 What do you think? Let me know down below👇 - - - Peter Zeihan #fundlaunch #peterzeihan #economics #investing #stockmarket #geopolitics #crypto #privateequity #venturecapital #realestate #hedgefunds

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Peter Zeihan's advice to help Mexico's industrial expansion...😅 What do you think? Let me know down below👇 - - - Peter Zeihan #fundlaunch #peterzeihan #economics #investing #stockmarket #geopolitics #crypto #privateequity #venturecapital #realestate #hedgefunds

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Today's guest on Business Podcast by Roohi is the first repeat guest on the podcast Had a super interesting discussion with Juan Abundes: Solo GP at Aito Capital In this podcast we cover: 1. GP’s leaving to start their own funds 2. Creative ways of liquidity Thanks to Ana Maury Aguilar for making the intro to Juan! Link to listen to the episode- in the replies

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📈🏢 Aby Rosen's RFR Holding is facing a staggering $2.5B debt bill as defaults pile up! 💥 🔎 According to a recent Bisnow article, RFR Holding, a prominent NYC real estate firm, is grappling with mounting debt and defaults. The company, led by billionaire Aby Rosen, has a portfolio of high-profile properties, including the iconic Seagram Building and Lever House. 🏢🏦 📊 The firm's debt load has surged to a whopping $2.5B, with $1.1B in loans maturing this year alone. 💸 The pandemic has hit the commercial real estate market hard, causing defaults to skyrocket. RFR Holding is no exception, with defaults on several properties, including the $200M mortgage on the Seagram Building. 📉 🗣️ "The pandemic has created a perfect storm for commercial real estate," said one industry expert. "Companies like RFR Holding are facing unprecedented challenges as they navigate this difficult time." 🌪️ 🔜 So, what's next for RFR Holding? The company is reportedly exploring options to refinance its debt and avoid further defaults. 💡 With the commercial real estate market showing signs of recovery, there's hope that RFR Holding can weather this storm. 🌞 Stay tuned for more updates on this developing story! 📰🔔 #RFRHolding #CommercialRealEstate #Debt #Defaults #NYCRealEstate

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Macro Wednesday's: S&P rose +97bps to 5751 (+21% YTD), while Nvidia gained another +4%, approaching its all-time high, with the Hon Hai CEO citing “crazy” demand for Blackwell. MegaCap Tech outperformed at +2% versus Non-Profitable Tech, which edged up +0.2% (+46% vs. -10% YTD). Interest rates stayed steady, with US/Bund at 4.01%/2.24%. Chinese local stocks fell by -4%, and Bitcoin reached $62.2k. Key events include the FOMC minutes release today, US inflation data tomorrow, and monitoring of Hurricane Milton, a Category 5 storm. JPMorgan is set to kick off the US earnings season on Friday. US Inflation: Analysts estimate a 0.28% increase in September’s core CPI, which would keep the year-over-year rate stable at 3.2%. This estimate accounts for higher used car prices (+1.0%), a further rise in airfares (+0.5%), and continued firmness in car insurance (+0.7%). A slight decrease in new car prices (-0.1%) and a moderation in shelter costs (OER +0.35%, primary rent +0.31%) are also anticipated. AI Developments: AI continues to advance rapidly, with recent innovations from major tech companies. Google’s ‘NotebookLLM’ allows users to upload links or PDFs and receive detailed summaries through the Gemini LLM. Recently added features include audio generation, enabling users to convert PDFs into podcasts. Meta has introduced a video generator that offers more precise control over visual outputs. US Elections: Financial analysis suggests that Trump’s proposed policies could increase U.S. debt by $4 trillion more than those of Harris. Agility Robotics: The company unveiled its new ‘RoboFab’ facility and is conducting tests in Amazon warehouses. Agility is part of a group of robotics companies that are combining advanced battery technology, motors, and sensors with software to optimize robots for human-centric environments. Starlink: The direct-to-cell satellite service received temporary approval from the FCC for areas affected by Hurricane Milton. China Market Update: China has been upgraded to overweight following recent coordinated policy actions aimed at stimulating the economy. The sentiment among some analysts is that current conditions present a compelling opportunity for investing in Chinese equities. US Earnings Outlook: Updated estimates for 2025 earnings project a 5% sales growth, in line with nominal GDP growth (previously 4%). The macroeconomic environment remains favorable for modest margin expansion, with price increases outpacing input costs. Projections now include a 78 basis point net margin expansion in 2025, up from 24 basis points previously. Expectations for the Information Technology sector have been adjusted upward due to a recovery in the semiconductor cycle and continued strength in mega-cap tech. Tesla: A preview of Tesla’s upcoming Robotaxi event on Thursday suggests the possibility of unveiling a prototype for a new vehicle concept, marking the company’s first since the announcement of the Cybertruck in November 2019.

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Last year, we were pleased to partner with John Andrews and Vivek Farias, Co-Founders of Cimulate, Inc., investing in a $5M seed round alongside SIERRA Ventures (Tim Guleri). We’re delighted to share that Spark Capital (Alex Finkelstein) led a $28M series A last month. Other new investors included LFX Venture Partners and Commerce Ventures. John hails from the Endeca mafia, having previously worked alongside Boston leaders including Steve Papa (Toast, Parallel Wireless), Jason Purcell (Salsify), Aman Narang (Toast) and fellow Pillar portfolio founders, Andrew Lau, David Gourley and Philip Braden (Jellyfish). Vivek is an MIT professor and reinforcement learning expert, and has the rare ability to translate very complex topics into digestible concepts. John and Vivek previously worked together at Celect, which they successfully sold to Nike. They are an absolute pleasure to work with – they bring complementary skillsets, are customer obsessed and efficient and they execute at light speed. Celect was a good outcome, a taste of what they now seek – to build a category defining company. That category is the Commerce Experience Server and their LLM approach, CustomerGPT, lets retailers deliver hyper-optimized content and context-aware search and discovery experiences, enabling faster, more relevant, and conversion-driven shopping interactions. Cimulate brings hard-to-believe value to customers in extremely aggressive timeframes – hence the decision to add capital and Spark’s expertise, even though most of the seed round funding was still in the bank. We're sad that they are no longer working out of our offices, but couldn’t be more proud to have Cimulate as part of our Pillar family. On to building an iconic company. 

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At #StartupSounds by Draper House Americas & Draper Startup House, I had a conversation with Esteban Reyes, Founder & Partner of Zenda Capital, previously a very successful entrepreneur. A lot of insights, but leaving a few below. Check out the full episode on YouTube: https://lnkd.in/eSBcJv_r 📺 Or listen to the podcast on Spotify: https://lnkd.in/eWeF3fuJ SUPPORTING TRANSFORMATIONAL FOUNDERS 💡🌎 With Zenda Capital, Esteban Reyes is backing founders who are transforming traditional industries in America and Latin America. Zenda's unique approach focuses on a few deals per year, providing deep operational support and strategic guidance. 🚀🤝 INVESTING WITH PURPOSE AND PASSION 🔥❤️ Esteban’s journey from his family's coal mining roots to becoming a successful entrepreneur and investor is truly inspiring. After launching various companies both as a founder, and in an incubator style, he launched Zenda Capital. 🌟 ALIGNING WITH FOUNDERS’ VISION AND RISKS 🛠️❤️ By investing early and aligning incentives and risks, Zenda Capital builds strong, supportive relationships with founders. The partners being the second largest LP in their fund aligns Zenda Capital even more closely with the founders, sharing both the incentives and the risks. This alignment means they work even harder to help companies succeed, especially when times are tough. 🤝🔗 RAPID DECISION-MAKING WITH DUE DILIGENCE ⚡🔍 When it comes to making investment decisions, Zenda Capital combines speed with thoroughness. In a process that takes about two weeks, they dive into due diligence with full focus, prioritizing that deal above everything else. That's how they go deep, but fast." 📈⌛ LEARNING AND GROWING TOGETHER 📚🚀 Esteban emphasizes the importance of continuous learning and adapting. His passion for working with multiple companies and contributing to their success is what energizes him the most. 🌟💼

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Summary: Keith Rabois, managing director of Khosla Ventures, is on a mission to turn Miami into the next Silicon Valley and has been actively promoting the city as a tech hub. Despite some challenges and opposition, Rabois remains optimistic about Miami's potential and the growth of its tech ecosystem. Key takeaways: Keith Rabois is determined to make Miami the next Silicon Valley and has seen progress with a growing number of seed investments in the city. Khosla Ventures, where Rabois works, has made multiple investments in Miami, including one into a startup aiming to "reinvent education." Rabois continues to split his time between Miami and San Francisco, but believes that Miami offers a better quality of life and potential for building a thriving tech community. Counter arguments: Some big name investors, such as Andreessen Horowitz, have pulled out of Miami, suggesting that the city does not offer the same opportunities as other established tech hubs. Miami still has a relatively small share of total U.S. seed investments (2.6%-3.5%) which may indicate a lack of resources and opportunities compared to other cities. #venturecapital

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Congrats to Mairon Sandoval, Manuel Cangas & Team OCN (onecarnow.com) on the successful $86M round of funding (debt and equity), Co-Led by Great North Ventures! OCN, provides a car subscription (rental) service for gig workers in Mexico that provides the strongest financing coupled with a myriad of other services to benefit the driver and their riders. They raised $86 million in equity and debt to fund growth in Mexico as well expand internationally. The Series A round for the company was led by Brazil’s Caravela Capital, Collide Capital, and Great North Ventures on the equity side. New York-based i80 Group led the debt portion of the raise. The proceeds of the round will be used to grow the company’s tech infrastructure, hire numerous positions including bolstering executive team, and of course to finance quite a few more cars. Great North Ventures invested in the earlier Seed round and has watched the company grow very quickly over the past 12 mos. See link for more details about OCN and this round including a link to the coverage from Bloomberg. Nate Pierotti Nick Moran J.R. Moran Brian Hollins Edward Goldstein Rodrigo Basil Andersen Brunna Zogbi Ivan Montoya https://lnkd.in/gg28Cssg

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The #1 Factor to Determine Max Valuation in Micro SaaS...is debt financing. Here's why, plus a free valuation calculator... Most buyers in the $500,000 to $2 million valuation range use SBA loans, which come with specific requirements. The SBA requires a Debt Service Coverage Ratio (DSCR) of 1.25, meaning the company needs $1.25 of income for every $1 of debt payments. In simpler terms, the key question is: Can the business afford itself? Does the Micro SaaS firm generate enough income to cover the loan needed to buy the business? As the valuation rises, so do the loan and debt payments. At some point, the valuation requires a loan that breaks the DSCR requirements. The upper limit of a Micro SaaS valuation is ultimately determined by the maximum loan a buyer can secure based on the company's income. Here's a simple calculator to illustrate this concept, helping us all determine valuation more accurately based on the real world 👇 #microsaas #acquisitionentrepreneur #saasgrowth

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Interesting post, Frank Rotman . I'd argue that rather than try to use your markups as traction for raising funds 2, 3 and 4 , emerging managers should consider helping their startups get earlier liquidity via suggesting listing on growth exchanges like the Toronto Stock Exchange, the LSEG (London Stock Exchange Group) or the ASX . DPI > IRR or TVPI when it comes to LPs. A VC that returns >2x in 7 years to LPs is going to have a much easier time raising the next fund than a fund with an IRR or TVPI of whatever. The entire vc industry has drank the kool aid that companies should be doing >$300m in ARR before listing. The LP community needs / wants liquidity before the 12 to 14 years its currently taking to IPO in the US, however. Startups can list on the above exchanges doing $20m in revenue with 30% YoY growth, they don't have to deal with Sarb Ox compliance and follow on raises are orders of magnitude easier for a listed company. Why? There's so many more public market investors than private market investors. The only other option for Emerging managers to stand out is by getting DPI via selling secondaries to a fund like Practical Venture Capital Chris Mayo, CFA Neil Shah Delilah Panio Amit Verma Dave McClure Aman Verjee, CFA Karin Tenenboim

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On May 2, 2024 REFASHIOND Ventures: The Industrial Transformation Fund convened people from around the world for Supply Chain & Industrial Transformation: The Next Generation (Silicon Valley 2024) at the JP Morgan Chase Palo Alto Technology Center in Palo Alto, CA. In this showcase Constanza Gomez demonstrates how Sortile enables the sorting of post-consumer waste textiles and apparel using near infrared spectroscopy. Sortile is a startup in our portfolio at REFASHIOND Ventures: The Industrial Transformation Fund. Our Thesis: REFASHIOND Ventures: The Industrial Transformation Fund invests in early stage startups refashioning legacy industries through Data & AI, Advanced Materials, Advanced Manufacturing, & Next Generation Supply Chains; Defensible through economic moats. More in the video below. #SCITSV2024 #SCITSV2024Showcase

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Want to build wealth faster? Skip startups. Buy Boring Old Businesses. Here’s why: 1. They’re already making money. 2. They come with customers, systems, and momentum. 3. They’re undervalued – 2.5x profits is standard. 4. SBA loans or seller financing make them accessible. 5. Easy profit boosters: raise prices or add new products. 6. They’re easier to scale than startups. Startups fail 65% of the time within the first 5 years. But "boring" businesses? They’re built to last. Don’t build from scratch. Buy something proven. If you could buy a "boring" business, what type of business would you buy?

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https://buff.ly/46dCF4M A Comprehensive Guide for Pitch Decks (Investor Deck) Versions provides valuable insights into crafting effective presentations for potential investors. This resource covers essential elements like market analysis, financial projections, and competitive landscape assessment. It emphasizes the importance of clear communication and compelling storytelling to engage investors. Additionally, it offers tips on structuring the deck for maximum impact, utilizing visuals effectively, and tailoring the content to the target audience. Understanding these principles can significantly increase the chances of securing funding for your business. #PitchDecks #InvestorRelations

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I recently saw this metric from Carta’s 1Q24 VC Fund Report, which is very concerning. DPI... is nowhere to be found in earlier vintages that probably should start showing DPI. Funding early-stage projects is great, but ultimately, these venture dollars need to exit their investments and pay back their limited partners. That’s where the metric Distributed to Paid-In Capital (DPI) comes in. While managing a fund, we get interim measures during the life of the fund (e.g. IRR, MOIC), but ultimately, “you can’t eat IRR.” If you want to build a lasting venture capital organization, you need to start showing DPI for your fund. Keep in mind that this is traditional VC data from Carta, and is not strictly crypto venture. Crypto venture tends to get liquidity earlier (tokens) and things tend to go parabolic sooner (faster, more unicorns) - but I’d wager that the data here is somewhat similar for Crypto VCs… Not as much DPI as there should be from these earlier vintages. Read the full article, as well as a recap of all the crypto fundraising rounds for August, here: https://lnkd.in/g3eVJ-iF

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Why Buying Your First Business is the hardest & Financing The Fear is Being seen as too risky by lenders and investors. The Solution: Prepare a solid business plan with detailed financial projections. Work with a financial advisor to enhance your credibility. Consider alternative financing options like SBA loans or seller financing.

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Why Hill Capital Corporation invests in Founder-Led Companies At the core of our investment philosophy lies one belief: Founder-led companies are built differently. Here's why: 👉 They’re Dreamers. Every great company starts with a dream. Founder-CEOs don’t just clock in and out—they live and breathe their vision. We’re here to fuel that passion and help turn their dreams into reality. 👉 They Have Skin in the Game. When a founder is at the helm, they’re not just managing; they’re personally invested. Their success is tied to the company’s success, and that alignment is something we value deeply. 👉 They’re Relentless. Founders don’t quit. They know success doesn’t come easy, and they’re willing to navigate through every challenge, pivot, and late night to make it happen. We back founder-led companies because their drive, resilience, and commitment inspire us. We’re not just investing in businesses—we’re investing in the people who won’t rest until they succeed. Why do you think founder led businesses are unique? Let us know in the comments. 👇

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As carbon markets grow, the individual default risk of each product gets dampened by the industry sheer size. Lower volatility linked to larger volumes across broader geographies is making this asset class increasingly attractive. Insightful post by Takehiko Serai, CFA

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Today's Boring Business (Our First on BizBuySell): - 50+ Year Auto Repair & Service Shop - $300K Cashflow - North Florida - Day 26 of "50 States In 50 Days" Disclaimer: SMB PE LLC will receive fees in a successful sale as we represent the underlying deal. This is our first deal on BizBuySell. What Do They Do? 1. Family owned business with 60+ years of operating history 2. General service, electrical diagnostics, inspections, transmissions 3. Revenue 30-40% routine services and 60-70% high-margin jobs 4. Excellent staff in place and loyal, repeat customer base 5. Strategically positioned in high-visibility area Northeast Florida Highlights: 1. Long time history of profitability, Owner retiring 2. High-end auto with Average Repair Order (ARO) 30%+ vs market 3. Little to no professional marketing completed to-date, word of mouth Risks/ Concerns: 1. Owner-Dependency: How will Owner leaving impact business 2. Team has great people in place to help with transition, any at risk? 3. Owner owns underlying Real Estate, have to negotiate terms #SMB #ETA #finance #Cashflow #investing #search #searchfund #privateequity #microprivateequity #smallbusiness #venturecapital #vc #entrepreneur #business #businessowner Disclaimer: Hypothetical and illustrative only. Please do your own research (DYOR) or work with tax and legal professionals before making a decision. This video are intended for informational purposes only and does not constitute legal or tax advice, nor should be construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any security by SMB PE LLC or any third party.

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