Guillermo Grimaldo

A new era of deep tech has emerged. First time funds will raise “unheard of” amounts of capital to fuel next gen deep tech startups - producing outsized, superior returns for LP’s compared to the rest. Prudent investors will act on this data and shift investment strategy as LP’s or risk being left behind savvy wealth managers and CIO’s / FO’s who saw this trend begin 4 years ago.

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Summary: Industry Ventures has raised a $900 million early-stage hybrid fund for investing in emerging managers and directly backing growth-stage companies. This is their seventh hybrid fund and is larger than their previous one. The fund will be split between backing VC funds, direct investments, and acquiring stakes from emerging managers. Key takeaways: Smaller, newer funds are finding it more difficult to raise capital, but this fund from Industry Ventures offers hope for emerging managers. The fund will be split between various investments, including backing VC funds and buying secondary interests. Industry Ventures may have an advantage due to their ability to invest in both emerging and more established managers. Counter arguments: Some may argue that it is still difficult for emerging managers to raise funds. The success of Industry Ventures may not be indicative of the overall climate for emerging managers. #venturecapital #venture #startups #fundraising

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Fin Capital’s Fintech CEO Pulse Report is out! We surveyed over 50 CEOs and C-suite leaders of private companies from our portfolio and the broader fintech industry during June and July 2024 to get a quick pulse on what’s top of mind for fintech’s leaders. Here are some key takeaways: Optimism in the Air: More than 60% of CEOs reported being bullish or highly bullish on the fintech industry for the second half of 2024. Regulatory Changes on the Horizon: CEOs identified Cryptocurrency, Open Banking, and Buy Now Pay Later as the top three sectors likely to see increased regulation by the end of 2024. CEOs Want Business Development Support: Beyond capital and fundraising, business development support emerged as the top area where CEOs seek investor assistance.For more insights, including comments from my colleagues Ren Riley, Logan Allin, Matthew D. Mann, CFA, and Stephanie Perez, check out the full report here: https://lnkd.in/euHK8-9B

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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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Calling all #Founders: Venture Capital Association of Alberta (VCAA)’s Deal Flow Calls represent a great opportunity for #PreSeed to #SeriesA companies to gain exposure to some of the countries most active Venture Capital #investors. If your company is raising equity capital, I strongly encourage you to check out the link below!

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Big things on the horizon, we are motivated and blessed to be at the dawn of a new age for the internet. Read more about our journey below or listen to the podcast: https://lnkd.in/eJeNhvVa

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We’ve been investing for a while but I formally closed my first fund just a few weeks ago. 97212 Ventures Fund I. It’s been an incredible journey from initially thinking through the idea and strategy, building the team, and of course, raising capital for the fund. Raising a first-time fund is incredibly hard, as there’s lots of competition for investor dollars… performance and strong relationships are keys for success. As Michael Bodley at PitchBook writes, high-net-worth individuals have backed emerging managers and micro funds, which have smaller investment minimums. Many of them are family and friends, who see this as not just an exciting investment opportunity, but also a way to support their peers and help them get started. I could not be more fortunate to have an incredible lineup of LPs with me at 97212. They represent every aspect of the industry - they are successful founders, operators, general partners of other VC funds, top executives, bankers, lawyers, doctors, family, and friends. I rely on them not just to back our companies, but when it comes to vetting opportunities, driving customer access, and sharing advice on how to become an amazing investor, consistently.   It’s been a blessing, and I couldn’t be more grateful for the support of our LPs. In the end, it’s about creating a win-win for everyone. That’s how you win. https://lnkd.in/etKXANe3

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Interesting data and good work from Carta in their inaugural VC fund performance report analyzing benchmarks for more than 1800 funds across six recent vintages - https://lnkd.in/e5R_dhXp Take a look at the pace of investments. As expected, capital deployment has slowed since the 2020 peak, with 2022 funds only using 43% of their capital after 24 months, down from 60% in 2020. This trend seems broadly consistent across private company and fund investing, with GPs and their LPs being more cautious and selective with capital allocation. Raising capital is tough today. Full stop. It's easy to focus on that, but I'd encourage us all to instead consider and focus on what is less talked about - that this cautious approach has created a large amount of available capital aka "dry powder," dedicated and ready to support special founders. The best founders are aware of private market dynamics, which impact the time needed to raise rounds and the milestones they must hit to successfully do that, but their primary focus is always the mission and the customers they serve. They are committed to building products to solve their customers' problems regardless of what us investors think. Building generational companies is never easy, but many have been and will continue to be built in tough markets. I try to take a similar approach in supporting founders. That doesn't mean ignoring market conditions, which can greatly impact my investment decisions and outcomes, but like focused founders, I know it makes more sense to dedicate my limited daily energy to what I can control. That means finding and supporting founders who are transforming or creating markets and doing everything I can to help them win, no matter what the market is doing. I hope to collaborate with many doing the same. Have a great week and see you out there! Note: These thoughts and opinions are solely mine and and mine alone. They do not reflect and are not associated with any company I am part of.

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Thirteen percent of venture GPs don’t plan to raise another fund as the LP pullback spoils fundraising efforts, according to PitchBook’s semiannual VC Tech Survey. That’s double the rate in H1 2023, when 6% said they had no plans to raise another fund. Nearly half of venture firms—44% of those surveyed in mid-2023—had previously pushed back their plans to re-enter the fundraising process, as institutional investors became increasingly concerned with overexposure to the asset class. Overall, venture GPs are more optimistic about fundraising and the IPO market than they were a year ago, according to our H1 2024 Tech Survey analyst note. GPs are mostly expecting asset valuations to get more attractive over the next month—which is supporting market activity, though still at subdued levels. While AI remains a top area of focus, investors have expressed concern of overinvestment. Interest rates remain a key determiner of market activity, as well as the need for founders to temper their valuation expectations. While several managers have pushed out fundraising plans or ruled out opening another fund, the majority cited no changes to current fundraising plans.  #fundraising #investments #Capitalraising #privatequity #emergingmanagers #venturecapitalists #familyoffices #USA #Fundmangers #emergingmangers #earlysatge #hedgefunds #AI #Fintech #Biotech #SoloGps #VCs #GPs #LPs #LimitedPartners #Funds #Investing #Networking #Generalpartners #emergingGPs #Principal #Venturepartner #Anylist #Associate

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Kettleborough VC has been active for ~6 years, invested in ~30 companies, gone through ~80 funding rounds, witnessed ~12 exits including ~4 instances of partial principal erosion, seen ~4 seed to $100M journeys, tracking ~29% XIRR across the portfolio. A couple of IPOs from the portfolio surely seem very much in line ahead.

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Summary: Alpha Partners, founded by Steve Brotman in 2014, announced a $153 million third fund to invest alongside early-stage VCs and help preserve their ownership in promising companies. Key takeaways: Alpha Partners' strategy of helping seed-stage VCs exercise pro-rata rights is more relevant than ever as startups stay private for longer and other mechanisms for maintaining stakes lose popularity. The firm invests in companies led by top-tier VCs, with over $10 million in revenue and close to profitability. Alpha Partners has had successful exits and its investment in Coupang's Series G and F has put the firm on the map. Counter arguments: With fewer later-stage deals getting done, some may question whether Alpha Partners' strategy will continue to be successful. Some may argue that the firm's criteria for investment is too strict and may miss out on promising opportunities. #venturecapital #vc #venture

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The state of venture capital is wild right now. We are witnessing a surge of innovation across the spectrum: - Funds merging - VC doing PE - PE doing VC - Secondary funds - Buyout funds - Spin-out funds - Debt funds - Continuation funds - Infrastructure funds - GP turnover - Hard Tech surging - Family Office uptick

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"Small funds may have more incentive to produce higher returns The alignment of incentives between GP and LP varies drastically based on fund size. Managers of smaller funds who have invested substantial personal capital demonstrate an unwavering commitment to lucrative returns, while managers at the helm of colossal funds, buoyed by significant management fees, may exhibit a diminishing drive. This constitutes an almost incontrovertible structural benefit of managing a small VC fund. Furthermore, fund managers of established funds may, over time, raise larger subsequent funds and grow more risk averse. This can present a sub-optimal outcome for their LPs and, by virtue, manifests a bad omen for VC investing." https://lnkd.in/gHKgea4e

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Founders, besides valuation and terms, board members can make or break your company so make sure you factor that in when selecting your next investors. #Governance #VC #BoD

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Does the incoming administration adjust the landscape for VC in the South? Three trends for family offices and VC investors to consider: https://lnkd.in/dVhVvuND

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Join Carta leaders as they recap this year’s breakthroughs, share the 2025 roadmap, and unveil the vision for FP&A tailored for private fund CFOs! Tactyc by Carta #treasury #fundmodeling #productroadmap

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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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💡 Almost daily, I hear a leading investor say that their firm is betting on Carta Fund Admin as the future. It is thanks to Vrushali Paunikar's team who are the masters helping revolutionize the present. The game-changing potential this announcement holds for our clients and the industry is one of the many reasons why folks back Carta to reshape how private markets should have operated over the last dozen decades. Our robust infrastructure powers crucial transactions with unparalleled efficiency and transparency & I'm excited to share how Carta is redefining the status quo once again ... 💼 🌐 Automated Money Movement for Fund Admin 🌐 💼 In this new era we partner with clients to optimize supporting the treasury function while managing their funds and spvs. The future is bright with Carta leading the charge welcoming the following: > Automated Setup for Client Approval: Client requests related to management fees and expense reimbursements are auto set up for the VC/PE firm approval, reducing processing time and providing real-time fund performance tracking. Did someone say, DAILY NAV? > Consistent Processing and No Transaction Fees: Error-free money movement, without the worry of unexpected fees on late or expired wires. > Consolidated Infrastructure for Enhanced Transparency: Systems that communicate reduce headaches of multiple log-ins to separate bank portals and provide clients payment status visibility directly within Carta's Platform. Clients believe that with the correct #People, #Systems, & #Controls in place we as an industry are ready to say farewell to manual processes, black-box operations, and cumbersome transactions. #FintechInnovation #FutureOfPrivateMarkets #Treasury #MoneyMovement #VC #PE #FundAdmin

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Seed VCs are turning to new ‘pro rata’ funds that help them compete with the big firms Alpha Partners, SignalRank and now SaaS Ventures help seed VCs pay for shares when big VCs try to price — or push — them out Lee Edwards, partner at Root VC, has a saying at his firm that “pro rata rights are earned, not given.” That may be a bit of a stretch since pro rata refers to a term that VCs put in their term sheets that gives them the right to buy more shares in a portfolio company during consequent funding rounds to maintain an ownership percentage and avoid dilution. Still, while these rights are not exactly “earned,” they can be expensive. One of the latest trends in VC investing these days are funds dedicated to helping seed VCs exercise their pro rata rights. https://lnkd.in/dRM3RvdA By Christine Hall

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