Hiroki Takeuchi

TLDR: EIS should be scrapped as a fund structure but retained for Angel investments by individuals. Alex Chalmers has done all the work which in 10 years I've never got around to doing: why 95% of EIS/VCT funds are bad for our tech ecosystem, rip #startups off, and why as a Founder you should push back against their stupid fees or not take their money. https://lnkd.in/dnq9ZScS

35

7 Comments

Thinking 🤔 out loud - one of the biggest beneficiaries of GenAI in the enterprise and agentic worfklows will be software PE firms There are so many beaten down SaaS 🦄 they can buy on the cheap and with a GenAI playbook can now reduce costs even more dramatically And as the AI gets better and moves from just the easy stuff like support and code to more complex workflows, the profitability created is going to be 📈 We are going to see a ton of PE buyouts in the months ahead...

83

17 Comments

HNY! Hope everyone had a great break. Quiet on here as head down. Such a lot of exciting things coming up: - More Tools for all scaleups to improve their growth trajectory - More Founders using VenturePath to secure their Series A-B investment rounds - More VCs joining VenturePath's VC Network - More Events (including a VC dinner for 50 on the 22nd and SuperScalers female founders event on the 30th) - More Partners joining our scaleup support ecosystem - More Data to publish on 2024 VC trends for the UK ScaleUp Investment Mission Busy January! We'll share more on these when we have a minute... If you can play a part, as a founder, VC, investor, partner, sponsor, data provider etc., there's still room for a conversation or coffee with you though 😉

34

5 Comments

Delighted to share news that Bizumi has just received SEIS Advance Assurance! This is great news for private investors looking to offset the inherent risks when investing in startup companies in search of great returns. In summary, the Seed Enterprise Investment Scheme (SEIS) provides: Income tax relief of up to 50%: A £100,000 investment could provide a £50,000 saving on that year’s income tax bill.  Up to 50% capital gains reinvestment relief: You could reduce the CGT on gains made elsewhere by up to 50%.  Loss relief: If things don’t go to plan, you can choose to offset any loss, less the income tax relief received, against your income tax bill.  Now don't get me wrong, I have every confidence that Bizumi is a fantastic opportunity, but de-risking your investment through SEIS is a no-brainer! Get in touch to explore how we can become successful together.

15

2 Comments

💡 Top Takeaways from the “Understanding the Investor Mindset” materclass 💡 Today’s masterclass with Richard Forde and DC Cahalane a partner at Sure Valley Ventures was packed with insights for anyone looking to navigate the world of VC funding. Here’s what stood me out: 1️⃣ Make Your Idea VC-Ready and it is align with their fundraising theories. Most important three key slides: • The problem (quantified in real numbers). • Market size (show it’s big enough). • Evidence of execution (team slide, proof that you’re the ones to solve this). 2️⃣ Be Cautious with Terms Watch out for red flags in term sheets. If something feels off in the legal docs, check it directly. Terms are negotiable—don’t shy away from asking questions! 3️⃣ Understand Funding Motivations Money can come from different sources—VCs, angels, or family—but each has unique motivations. VCs are in it for the long run, committed to supporting you stage by stage once they’re onboard. 4️⃣ Skip the Middlemen in Fundraising Real VCs deal directly with startups. They generally avoid interacting with third-party fundraising companies on behalf of startups. 5️⃣ Al Startups: Focus on Your Niche, here's what matters most: • VCs are actively investing in niche verticals within Al-the deeper your niche, the better. • They're typically not interested in the LLMs foundational layers due to the high cost. • Share a clear path to profitability and a strategy for managing compute costs. • As a founder, dedicate at least 4 hours a week to fundraising-it's crucial to keeping momentum with investors. Special thanks to Web Summit for hosting such a valuable session! 🌐 #StartupTips #VentureCapital #Entrepreneurship #WebSummit2024 #InvestorMindset #FundingJourney

11

2 Comments

At PeerCapital we love throwing data on perceived fallacies! Couldn't agree more with Ankur on how VC in India is indeed evolving into "something more nuanced, more specialised, and ultimately more enduring". In the context of the amount raised by VC firms in India in 2024, 'new funds' accounted for 37% of total VC capital, compared with 15% last year. The growth signals a need in the ecosystem for fresh perspectives, refined approaches, and the ability to take well-calibrated risks to back early-stage founders. Excited for our ongoing founder conversations and what's to come in 2025! #earlystagevc #earlystagefounders #vc

24

Taavet Hinrikus and I made the Financial Times Due Diligence email. https://lnkd.in/ez2AuGQx One 'unintended consequence' is that if there is a 45% tax on carry and CGT (raising £40m per year, remember) it for all intents and purposes closes the door on new VCs in the UK. Especially started by teams from non-traditional backgrounds. To meet the GP commit, you need to be already part of the 'wealthy' as you cannot rely on the value you create - nearly half of it will disappear - to fund it. We have both had extremely successful startups which are few and far between. The smaller number of new VCs will therefore more likely increasingly be for people who have inherited the capital or can draw it from their already rich family. Probably not want they have in mind with this policy.

32

2 Comments

Thinking of fundraising later this year or early next? Things are most certainly going to be different from your previous external raise... Read the blog below to find out my top tips for B2B software founders. Any that I've missed?   📈 Sustainable growth, at all costs 🙂 Focus on retention, not just growth - logo retention shows how sticky you really are 💰 Fundraising is an enterprise sales cycle – it’s taking much longer - plan for 9+ months 👫 Diligence your potential investors more than ever #b2bsoftware #fundraising #venturecapital

35

3 Comments

Hot off the press: “What's 🔥 in Enterprise IT/VC - Issue #427" The 15 year startup journey and implications for founders and investors Full post in comments below

7

2 Comments

This month marks my 10 year anniversary in Venture, and what a ten years it has been 🎉 🤩 First stop: JamJar Investments Rewind 10 years and you’ll find me sitting at my desk at JamJar, operating under the alias of “Bread”, working my way through an inbox full of 1000 cold inbound pitch decks, reviewing and replying to every single one. Highlights included a hand drawn picture of a new ketchup sachet design with “target market: Nandos” written below it, and a concept for a drink that tasted like the leftover milk at the bottom of a cereal bowl. But there were also some diamonds in the rough, and it was here that I got my first experience of that lightbulb moment when you meet an exceptional founder that you want to back, making my first investment a few months in. JamJar was the best training ground I could have hoped for, and I'm so grateful to Katie Marrache and Adam Balon, Richard Reed & Jonathan Wright for welcoming me into the team. Second stop: Venrex In 2015, I joined Mark & Tom at Venrex alongside Pooja Patel. We clicked as a team immediately, and over the ensuing years launched 7 new funds, grew the portfolio to 180+ companies, built a brilliant team, moved from a small attic in West London to panoramic views in Fitzrovia, and had a lot of fun along the way. As well as the buzz of discovering new founders to back, I also discovered my love for supporting founders post-investment. With 11 board roles and a further 16 portfolio companies to support, the ex-strategy consultant in me had just enough to get my teeth into. Venrex’s people-centric and pragmatic approach to investing chimed with my own instincts about the type of investor I wanted to be. They gave me the most incredible platform to grow as an investor and roll up my sleeves with all of the operational sides of running a venture fund. To the entire Venrex team, new and old, thank you for an amazing chapter. Third stop: Circle & Co In June, I left Venrex to launch my own Venture fund, Circle & Co, which is on track for its first close next month. It's by total chance that this milestone falls on my 10th anniversary in venture, but what an incredible way to kick off the next decade. More details on the fund to follow, but for the moment I want to thank the amazing network of friends, fellow VCs, founders, LPs and family who have got me this far. You are the original Circle, and have been the inspiration & driving force behind this next step. Let's make it a good one.

221

42 Comments

💡 Fundraising isn’t about power dynamics—it’s about confidence. Too often, founders approach fundraising thinking they’re at the mercy of VCs. But here’s the reality: if you’re building something fantastic, the power is on your side. The best companies I’ve seen—like Revolut and UiPath—fundraised with confidence. They created scenarios where VCs were competing to get into the round. The mindset shift is simple but game-changing: 👉 You’re solving a problem for the VC. 👉 You’re deciding who gets to make money with you. Here’s a thought exercise: Imagine you knew your company would sell for $200M in 6 years. How differently would you approach investor meetings? You’d focus on qualifying the VC, asking, “Do I want to make this person money?” This mindset shift is key. Confidence isn’t just helpful—it’s necessary. 💬 Founders: How do you cultivate that mindset before a big pitch? VCs: What stands out to you when a founder exudes this kind of belief in their business? Let’s discuss. #Fundraising #Entrepreneurship #VentureCapital #Startups

3

1 Comment

Not all venture firms are created equal - at Playfair Associates & Principals write cheques and lead deals 💰 Why? Because they have the ability, drive and passion to do so And what we care about most is building optimal partnerships with founders that deliver results This means matching them with the right investor who then continually leverages the diverse experiences of our entire team I spend a lot of my time nowdays supporting these investments as well as leading my own I love doing both Founders: don't assume only partners lead deals and don't be afraid to ask how decision making works during your pitch call #venturecapital #startups #fundraising #founder #entrepreneur #entrepreneurship #technology #innovation #business #ceo

189

24 Comments

South Coast Startups: This is your moment!! I’ve got an incredible opportunity for startups on the South Coast of England. We’re talking intros to top-tier mentors and serious cash for growth—whether that’s through equity or loans. I’m on the lookout for standout startups to match with angel investors, CCs, and Ultra High Net Worth individuals who are ready to back the next big thing. If this sounds like you—or someone you know—tag them, DM me, or drop me an email at [email protected]. Let’s take your startup to the next level! #StartupLife #Entrepreneurship #Fundraising #VentureCapital #AngelInvestors #GrowthHacking #BusinessGrowth #Innovation #SeedFunding #ScalingUp #StartupJourney #EquityFunding #Disruptors #FounderLife #StartupCommunity #BusinessFunding #StartupMentorship #InvestorReady #PitchToInvestors #DreamBig

31

7 Comments

🤔 Just a quick question for VC’s and other investors. We’ve been talking a lot on here about Testing your Pain Thesis. We certainly obsess about it Vencha with our clients. My question is why as part of the investment decision making process do investors not ask the proposed investee company to bring them 5 Zoom video interviews of ICP Buying Personas confirming they have the pain the software solves and that they would be willing to pay for a solution. Love to know your thoughts Chris Tottman, Maja Voje, - everyone in fact. 🤔

13

9 Comments

We have just posted a blog about 'SDR fund labels – what are we hearing?' It is too long to reproduce in full here, so I am sharing the first few paragraphs. (The full text is freely available via https://lnkd.in/erxVuefP ) === The adoption of #sustainable fund labels is big news at the moment, particularly as we approach the 2 December ‘Naming and Marketing’ deadline, which require additional caution when fund managers make sustainability related comments and claims. (See full #SDR rules) Much is changing, but a key driver of current activity is that unlabelled funds will no longer be able to use the words ‘sustainable, sustainability or impact’ (or similar) in their names – although the FCA announced temporary ‘flexibility‘ in September (essentially a four month extension) for relevant funds that had submitted an application to them amending disclosures in line with ESG 5.3.2R by 1 October 2024. Evidence that we have gathered from fund mangers suggests however that we are now in a period of immense activity and change. We have sought to capture this via a range of ‘SDR labelling’ filter options on our (open and free to access) Fund EcoMarket database. Some of the current key numbers (to date) are as follows: - 103 fund managers have told us they are working towards adopting labels for named funds (we view this as a likely underestimate). - 176 funds have told us they are ‘not eligible’. (It is important for financial advisers and others to understand that many funds are not yet able to use the new labels, for example because they are offshore). - The managers of 13 funds have told us they are ‘intentionally unlabelled’ – in other words, their funds are probably ‘in scope’ – and may well be appropriate for those seeking funds that take sustainability seriously – but the manager has decided not to pursuing a label at present. (This may relate to approval process concerns.) - Fund EcoMarket shows 2 labelled funds (we expect this to increase soon). (The funds are searchable on our database here https://lnkd.in/eEn9q5pA) What else are we hearing? We understand that around 11 funds have achieved labels. 2 of these are labelled as such on our database. Some funds have asked us to hold back their labelling status until they ‘go live’ (eg aligned literature / ready to press ‘go’.) Many strong funds are in the labelling process (which starts, in many cases, with the need to amend the fund prospectus) but are struggling to gain labels because of what we view as (sometimes rather extreme) teething issues. ‘Broad based’ (comprehensive, complex) sustainable funds appear to be the most affected. The FCA has listened to feedback and sought to ease these with a recent notice giving disclosure examples, however we believe there is more to be done in this regard if we are to maximize the potential benefits of SDR.

51

7 Comments

When founders raise a pre-seed or seed round, there are several defining decisions. One of these is selecting investors. In this article, Seedcamp covers the key tenets for assembling an early-stage round that prime your company to breakout.

19

Numbers & insights from a deep tech venture studio that launched 11 companies (all are active) in the last 7 years, reaching £85M valuation across the portfolio: 1. Post Urban, initially bootstrapped by Luke Robinson, an academic with a PhD in physics from Cambridge, now operates with external funding from a UK-based fund. 2. Launched 5 companies during the first 5 years and 6 companies during the last 2 years. 3. All 11 completed pre-seed rounds; 1 of them got Series A, 2 of them are approaching their Series A. 4. The startups have collectively raised ~£25M in venture capital, in addition to receiving grants. The total valuation of the 11 companies is ~£85M, half of which have not yet undergone subsequent funding rounds. 5. Initial equity splits: the venture builder 20%, CEOs of startups 35% (vests over 4 years), CTOs – 20-25%, employees 10-15%. 6. The initial valuation of startups was £2 million, with £300K invested by the venture builder. The last 2 startups were at £3.5-4M initial valuation. 7. Building deep tech ventures requires significantly higher initial funding because these projects need more time to develop demonstrable products. Two portfolio companies hit £1M in ARR. 8. The venture builder has increased the capital for the last 2 startups to ensure they reach meaningful milestones. The CEOs of the startups were able to secure additional funding through their networks, £350K and £450K, respectively. 9. The deep tech investor pool is smaller than that for sectors like SaaS, which requires a stronger proof of concept and market readiness to attract funding. 10. 3-4 times, potential customers became investors in Post Urban Ventures. This is a great approach because it secures investment and validates the concept by gauging whether these potential customers truly believe in the solution and its market necessity. 11. They don't start with a technology or an idea; instead, they integrate insights about global problems and, by actively engaging with advisory boards, founders, and industry experts, identify pain points and align them with technological solutions. 12. They do not bring universities in as co-founders but source scientists or professors to contribute to research and development. This involves leveraging academic expertise to support the technical aspects of startup projects until a prototype is developed. 13. The studio maintains strong connections with major academic institutions, including Cambridge, Oxford, Imperial College, and UCL, supporting its deep tech focus and facilitating access to new technologies and potential founders. 14. Areas of focus in deep tech: AI (Knowledge Graphs, NLP, DNNs, Computer Vision, Edge AI, Active Learning), Quantum Technologies, Biotech, AgTech, Enterprise SaaS. Watch the full interview to gain insights into the portfolio companies, handling IP collaborations with universities, key challenges, and team construction: https://lnkd.in/dCi7fZ7G

48

5 Comments

🚀 Seeking early investment for your startup? Don't miss my insightful session last week with Anthony Rose, co-founder and CEO of SeedLegals—the go-to expert for 1/3 of UK startups during their early fundraising. In this session, Anthony shared invaluable insights on: 1. Key elements of an effective pitch to investors. 2. Common early mistakes founders make. 3. Benefits of SEIS/EIS for early-stage founders and investors. 4. And much more! It was truly an epic discussion! 🌟 🔗 Find links in the comments to join Apollo, our startup community for Hyper, or watch the session on YouTube.

30

4 Comments

How do the best entrepreneurs see a future you can’t? Alexa von Tobel, Founder and Managing Partner of Inspired Capital, shares her fascinating journey and insights into venture capital in the latest episode of The Full Ratchet. Alexa, a serial entrepreneur and the visionary behind LearnVest, is now at the helm of Inspired Capital, a $900M AUM venture firm. In our conversation, Alexa reveals what makes a great founder, why some markets are ripe for innovation, and how AI is transforming industries. She also dives into the importance of EQ, strategic thinking, and the future of FinTech. This episode is packed with valuable lessons for investors and entrepreneurs alike. Don’t miss out on hearing from one of the most influential voices in venture capital today. Listen to Episode 441 of The Full Ratchet now! Link to the full episode is in the comment section below.

25

1 Comment