Dao Le, CFA

VC can learn from PE and vice-versa. Is there a best of both worlds? Could they be the yin to each other’s yang? Imagine a conference with partners from both VCs and PE firms. 🤔 What would they be talking about?  🤔 What would they be learning from each other?  🤔 What topics would be alien to each other?  🤔 What blind spots will be revealed? Both are very important sectors to the UK and the global economy and we will all benefit if they evolve and raise their game. In my second essay on this topic, please note I’m making generalisations and my comments will not apply to all firms. (yes, I’m talking to you John O'Connell!) - - - - - 📑 Read the article in full below. 👀 Keep your eyes peeled for more info on this topic! https://lnkd.in/eAKPmNQp #privateequity #venturecapital #PE #VC #RaisingCapital

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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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PE & AI: "Responsible AI in Private Equity" Some interesting insights by Dr. Michelle Seng Ah Lee as AI is becoming increasingly important for PE firms and their portfolio companies. Role of AI in Private Equity: a) In-house use: can enhance due diligence, firm efficiencies, regulatory compliance, and decision-making for deal teams b) Portfolio companies: can be a cornerstone of value creation Takeaways: - PE firms can help their portfolio companies by providing clear guidelines on how to use AI responsibly - Responsible AI means using AI in a way that is fair, transparent, and minimizes risks - PE firms should have a Responsible AI policy that outlines how they will use AI and how their portfolio companies should use AI - Responsible AI guidelines for portfolio companies should provide best practices and case studies Source: https://lnkd.in/eJ4y-dSg, Dr. Michelle Seng Ah Lee #pe #privateequity #ai

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LP Tip #20 out of #50: To re-up or not to re-up A re-up refers to an LP making an additional investment in a fund where they previously invested. Before we dive in I want to share that there are reasons an LP may not to re-up which are not in your control. Here is a short list: ➡️ The LP may have evolved their strategy and needs to scale back the #️⃣ of funds they invested in.   ➡️ The LP was never set up to re-up in the first place. ➡️ The LP could be an individual that found themselves in a cash crunch and overly exposed to venture.  I'm assuming that when you got your investment that the LP explicitly told you they do re-ups. Please do not assume they do. My expectation is also that the LP dug in to properly underwrite the fund. 🏴 Re-ups are not automatic. An LP will have to re-underwrite each fund. The speed of the re-up also depends on how much work was done in the initial investment, who led the investment, level of confidence there existed when that investment was done, and current pipeline of funds. There are 4 flags that may cause an LP to walk away. 1️⃣ Partner Breakups/Changes and Team Turnover:  The biggest risk in Partnerships are whether the Partners will stay together. One LP gave me a framework on how to think through this issue that has stuck with me. Partnership is like a marriage. If one feels there is potential for a breakup, does one believe it will be an amicable breakup? Or, does one believe the spouses will never talk again? If it is an amicable split that is manageable. The Partners can find a way to support the fund. Then the question becomes whether the LP wants to back the Partner/s that remain.  If there is high team turnover. The LP will want to investigate because team stability is used as a proxy for firm sustainability and ability to scale. 2️⃣ Fund Does not Execute on what they Sold the LP:  The LP “bought” something specific and typically it is because they were missing this strategy or wanted exposure to a strategy for the portfolio they were constructing. An institutional LP will invest and write a detailed investment memo flagging all the things you said you were going to do and then go back and compare when you come back to ask for money. If for example you pitched a generalist seed stage fund and you show up asking for money sharing that you invested in deeptech at A that will cause alarm. The same can be said for the number of companies you promised to invest in or check sizes you wrote. If there are big differences LPs will want to know why. 3️⃣ Bad Actions  The fund manager/s does something that is unethical. This is a no go for an LP.  What if the situation is not clearcut? This is different for everyone and requires discussions b/w GP and LP, but most LPs don't want headline risk. 4️⃣ Continuous Underperformance  If it's early days an LP will look at some key indicators to see how you are progressing over time.

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How does a GP prove they can generate attractive results when they haven't had exits? Some excellent points from Bain & Company's 2024 Private Equity Report.

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Link to 2Point2 Capital's Q2 FY25 Investor Update - https://lnkd.in/gEZkKMgc In this update, we talk about The Invisible Tax Burden on equity investors in India.

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From Investor, MBA Associate, and Platform Manager, I am excited to highlight many of the interesting venture capital roles that members of the NYU Stern Private Equity & Venture Capital Club have been engaged in over the past year in our recent blog post! Check it out 👇

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The most popular question among startup founders this week is 'Which Tech Week events are you going to?' I've done my homework: went through 450 events. Of course, I had some help from AI, but I double-checked everything myself. I’ve drawn some conclusions: who’s the most active, where the top tech minds will be, which funds and corporations have really put in the effort, and I even created a personal list of the most unique formats.* In the end, I came up with a schedule – the week kicks off with an ice plunge at 7 AM on Monday, followed by 3 events a day for the first 3 days (since I’ll get lazy after that), then 1 event per day, and saving the lightest and most fun formats for the weekend. Feel free to use, save, and share! 😉 *Last year, morning hikes were all the rage, this year it’s all about the Cold Plunge. Interesting!

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Fundraising is hard. For startups, it’s a challenge—but for GPs raising their first fund, it’s even harder. Many LPs are capital allocators operating multi-asset investment strategies. Today, GPs not only need to pitch their own fund and strategy, but also make the case for investing in the VC asset class itself. A GP who recently closed their first fund shared an interesting benchmark with me: emerging managers should aim to build 1,000+ LP connections when raising. This is why at Focal, we built Deploy - which we want to be the de-facto place for GPs to meet the right LPs. If you're a GP looking to raise, pre-register in the comments below!

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Insightful breakdown from my great Partner Omri Amirav-Drory on the simple factors that really separate the top 1% of investors from the rest, and how more operators should become investors! https://lnkd.in/gEiZdT2h

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Portfolio reviews are a sacred, core tradition for venture capital and private equity firms. But what if they could be supercharged by real-time private market data? Our latest piece at Standard Metrics explores how investors are elevating their portfolio reviews using new benchmarking strategies. https://lnkd.in/gG6q2PWY

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Eight years ago, I walked into the world of Venture Capital armed with spreadsheets, market analyses, and a hunger to find the next unicorn. Eight years, countless pitches, and a few battle scars later, I've realized the most valuable lesson isn't about valuation multiples or market sizing (though those are important!). It's this: Invest in people, not just products. The most successful founders we've backed weren't always the ones with the most polished pitches or even the most disruptive ideas at first glance. They were the ones with an unwavering fire in their belly, a deep understanding of their customer, and a coachable spirit that could weather any storm. The truth is, the market will change, technologies will evolve, but a founder's resilience, adaptability, and vision? That's the X factor that separates the good from the truly great. So, to all the founders out there: Keep building. Keep iterating. And never underestimate the power of your own story. To my fellow VCs: Let's remember to look beyond the spreadsheets and truly connect with the humans behind the pitch decks. That's where the magic happens. #venturecapital #startups #entrepreneurship #founder #investment #lessonslearned #peoplefirst #buildingbusinesses #VClife #India

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Applications are now OPEN for our second cohort of founders at Nikhil Kamath's WTFund! After a great response to the first cohort, we are ready to look for even more audacious and pathbreaking ideas. We are committed to helping dreamers forge their ideas into reality by becoming their Day Zero partners, enablers and co-builders. We look forward to enable young Indian founders build generational companies for the world. Apply NOW using the link in the comments, and my DMs are open for any queries :) #WTFund #entrepreneurship

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As a GP in climate venture capital, I often meet high-net-worth individuals or family offices new to VC, wondering if they should invest as LPs. While LPs choose which VC funds to partner with, GPs also select which LPs to admit. VC is not a typical financial product—it's a relationship. LPs and GPs will work together in the same fund for the typical 10-year fund life. It's crucial for LPs to understand the firm's strategy before becoming fund LPs and be good partners with the other limited partners, potentially supporting the fund's best outcomes. Common Questions from New LPs 1. Can I take my money back in the middle of the fund? Typically, no. VC investments are long-term, and GPs expect LPs to stay for the full time horizon. Startups need time to mature and exit, requiring patience. However, you can trade your LP shares in the secondary market, though this may involve negotiation and a valuation cut. 2. Can I force the GP to invest or not invest in a startup? No. LPs cannot and should not influence GP investment decisions. GPs have a portfolio strategy and make decisions for specific reasons. Trust the GPs' expertise. If their financial returns align with the fund's goals, join the next fund. If not, look into the reasons but don't interfere. 3. Is VC more risky than growth capital? Many believe early-stage investments are riskier than later-stage ones, but VCs typically return 3x with longer time frame, whereas growth funds return 2x with shorter time frame. Growth investments need careful valuation. The 2022 SPAC wave's stock price drop did not end too well for many growth investors. 4. Does having brand-name co-investors demonstrate a good GP? No. Each fund or investor has its own strategy. Strategic investors might invest for synergies, not just financial returns. Focus on understanding GPs' rationale rather than buzzwords. 5. Should LPs have irrelevant requirements on how GPs should run a fund? LPs need to know the asset class and sectors they are investing in. If unfamiliar, GPs can provide background information. Imposing irrelevant requirements can hinder operations and make GPs reconsider the partnership. GPs prefer constructive input and have limits on the number of LPs and the size of checks accepted. By understanding these points, new LPs can better navigate the venture capital landscape and form productive partnerships with GPs. Fellow GPs, other points to add?

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BSV Ventures is the newest addition to the NIF Fund of Funds portfolio! 🎉 Coming back from their LP day in Vilnius, we’re ready to find unicorns together 🦄 The true alpha of a fund is often felt before it is seen. Intangible at first — it is a capability that often precedes visible results. Having gone through several months of DD with BSV, I can confidently say BSV embodies their alpha through their unique insights, and complementary dynamics of the GPs. This is combined with an unwavering commitment and track record in transforming the Baltics into a leading hub for deep tech and dual-use innovation, critical to European sovereignty.

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[Want to attend our next meeting at our Brooklyn office. Respond "Interested" below.] This Monday we are hosting representatives from 7 universities to our offices to meet with Whop team members to discuss ways to connect into their respective institutions. This is the 2nd time we've hosted a meeting like this (did one in Oct. - see below). Those attending represent faculty, career services, alumni engagement, development, athletics (NIL), innovation and entrepreneurship. Whop allows anyone to build a digital business via the Internet (using no-code and a app-based approach). It's free to use. Offers end to end support (marketplace to payment solution to 24/7 customer service). And is an easy entry point into entrepreneurship. Why Higher Education? - AI is going to impact job prospects for Gen Z and beyond - The gig economy has already changed the way people view work - Gen Z is showing through data, the creator economy is real and leaning into it heavily Those trends and our platform (Whop) when combined, could look like this in the near future: - Every student signs up for Whop (business) - Every student learns to build that business in class - Every student graduates with a sustainable income (solid ROI of education) That's a BHAG (Big Hairy Audacious Goal), but an attainable one for both the university and student. These are the universities (faculty/staff) that are coming/visited in Oct to help us bring this opportunity into focus for 25,000 universities globally: - Arizona State University - Case Western Reserve University - Harvard University - Indiana University Bloomington - Miami University - Michigan State University - North Carolina State University - Penn State University - Syracuse University - The Johns Hopkins University - The University of Texas at Austin - University of Maryland - University of North Carolina at Charlotte - University of South Carolina This is what we've learned from our Higher Ed friends: - Whop is an easy 0 to 1 for student entrepreneurs with an idea (non-venture backed companies); a great platform for teaching entrepreneurship; a platform for NIL (student athletes); an alumni engagement platform that can be set up to pay back the university - need to build collateral materials for universities to help students with Whop (Done - write me if interested in receiving this) - need to help track student Whop's (Done...ie, North Carolina State University had 3 Whops (businesses) in Sept generating $10,516 in GMV which grew to 6 Whops in Oct generating in Oct). We can pull this data for YOUR campus What we are doing in Q1 2025: - Hosting more Higher Ed reps in our offices - Launching the first 10 universities (no contract/no cost) on Whop (so they can track/teach/train students) - Getting the first 200 students on the platform through these efforts. - Speaking on/visiting your campuses (write me to book) Interested in learning more or joining this effort? Let me know.

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This guide from Harlem Capital sounds fantastic, especially since they’re sharing their Syllabus with the community for the first time. It covers a lot of important topics like due diligence, valuation, and VC exits. However, it would be helpful to know a bit more about what makes this guide stand out and how it’s structured. For those new to VC, understanding how practical and actionable the content is could be a game-changer. Also, a quick highlight of some top resources included would be great! Overall, this looks like a valuable resource, thanks to Harlem Capital for making it available! #VC #VentureCapital #HarlemCapital #StartupFunding #DueDiligence #Valuation #Entrepreneurship #VCGuide #InvestmentStrategies #StartupResources #VCCommunity #FundingJourney #BusinessGrowth #CapitalSyllabus

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