Reagan Pollack

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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The results are in. Emerging managers and especially sub-$25MM funds are out-performing their larger counterparts, even in a sub-optimal market. TVPI metrics for 2017 vintage was 3.8x versus 2.7x for a $100MM+ fund. Even a 2022 vintage is seeing a 1.1x vs a 1x TVPI. I'm personally working with a top-quartile sub $50MM fund that has delivered a 1.6x TVPI from a 2020 vintage with gains of over 100% for it's LPs (and no it's not pre-seed). Another solo-GP has averaged 60x MOIC. Smaller funds are more nimble, have more skin in the game and are quicker to react. Whilst it's predominantly smaller bets at an earlier stage (i.e. more risk), it also means a larger, more diversified portfolio where it only takes 1 to 2 wins to return all the capital to LPs = earlier upside. Add to that a much more favorable cost-structure, it's a relative no-brainer. A bit like startups, this segment is in it's infancy, so I expect we'll see much more data in coming years. (P.S- as I'm seeing some fantastic new operators come to the market, and we still have so much to learn, share and exchange about emerging managers, make sure to sign-up to upcoming newsletter! I'll be sharing much more in-depth insights, fund launches and interviews with GPs and LPs to create a vibrant and meaningful community- link in comments).

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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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Having a Cars and Capital event tomorrow in Southern California with Oren Klaff. If you want to join message me. https://lnkd.in/gDQ4D39u Oren Klaff Bridger Pennington #InvestorEvent #FamilyOffice #InvestmentOpportunity #CarlsbadEvent #PrivateEquity #WealthManagement #InvestmentConference #CapitalRaising #NetworkingEvent #IndustryLeaders #FinancialGrowth #InvestorsMeetup #WealthBuilding #BusinessGrowth #InvestmentForum

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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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The Q2 2024 PitchBook-National Venture Capital Association Venture Monitor provides critical insights into the current market dynamics. Here are some key positive and not-so-positive deductions from the report. Positive Deductions/Insights: 📈 Increased Deal Activity: "Deal activity expanded for the third straight quarter, with $55.6 billion invested across 4,226 deals, the highest since Q2 2022." 🤖 Growth in AI Investments: "AI and ML sectors saw substantial deal value, driven by megadeals in AI infrastructure, signaling strong investor interest in cutting-edge technologies." 🚀 Improvement in Exit Activity: "Despite challenges, the IPO market showed signs of recovery with successful high-profile listings, indicating a potential rebound in public market exits." 💰 Larger Deal Sizes: "The trend toward larger deal sizes, particularly in early-stage investments, reflects a premium on quality and promising growth trajectories." 🔄 Increased Secondary Market Activity: "There has been a notable rise in secondary market activity, providing alternative liquidity options for investors and startups." Not-So-Positive Deductions/Insights: 🚧 Ongoing Exit Challenges: "The exit environment remains difficult, with less than $30 billion in exit value generated in Q2, continuing the trend of low liquidity." 📉 High Down Round Frequency: "Down rounds represented 35-40% of Series C and later raises, indicating continued valuation pressures on mature startups." 🏦 Venture Debt Tightening: "Rising interest rates and recent banking challenges have tightened the venture debt market, making it harder for startups to secure additional funding." ⏳ Investor Caution: "VCs have slowed their investment pace, conducting thorough due diligence and being highly selective, which has lengthened the time to close deals." 💸 Decline in Fundraising: "The annualized run rate of VC fundraising in 2024 dropped to the $35-40 billion range, roughly half of 2023's pace, reflecting a challenging fundraising environment." #VentureCapital #Startups #AI #InvestmentTrends #Funding #MergersAndAcquisitions #VCInsights #MarketTrends #SeedFunding https://lnkd.in/ghNBfT6X

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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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When we asked CPG founders who they wanted at Founderland... Their answer was clear: People who can help them grow their business & achieve their goals. Specifically: - The top retailers - The most founder-friendly investors, and - Other founders they can learn from and share with This conversation that I'm hosting at Founderland is a perfect representation of this group, plus one BIG bonus. We're also including Joel Toledano and ChargeUp.ai which is one of my favorite tech companies that is supporting consumer brands today. They automate the retail deduction and chargeback process for brands, saving them an insane amount of time and money. Such a cool co. Excited to teach, share and connect...and get some deals done, while of course having lots of fun. Joel Toledano Jen Zeszut Kim Coffin Deb Conklin

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Movac KiwiNet Deep Tech is difficult because you do not comprehend 95% of the universe using the Standard Model of Particle physics. Either learn that measurement is flawed due to human bias or experience and unbiased state through transcendence experiences corresponding to Christ consciousness. The physics of life is based on LENR and not the Standard Model of Particle physics. Unfortunately, scientific research has been captured by the materialism perspective. This is mutually exclusive to the light observed in consciousness. Physics of life. Deep Tech https://lnkd.in/gKqC3PAR Gateway into the aromatic ring Faraday cage system. Time to see the light 😁.

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An interesting article below, that demonstrates out how San Diego is punching above its weight.  And how Connect's strategy and execution over time, contintues to be central to that success. The article describes the current state of the market in Seattle.  (And i love Seattle.) It's a market that we tend to track with relative to venture fundings.  They used to kick our butts, we outraised them each of the last three years.  This despite the fact they have 3x as many funds there, and 9x the amount of resident capital there. (per pitchbook) Some key takeaways:  * They continue to compare themselves to SIlicon Valley. Instead, we leverage our proximity. *They whine there's not enough local investors (see note above - they have more than us). We bring over 200 VCs to SD annually! * They say founders are not connected with one another. We bring CEOs together regularly, in a variety of ways - private dinners and through our Springboard program. * They say they need to elevate their image on a national & international stage. Why we created and continue to build Five.Ten.Thirty (aka Inno Day).  * And the last paragraph - they need to concentrate on making their region a great place to live. Our mantra: "It's about Better, not Bigger." (See XEO, TL Fund). THANK YOU FOR ALL OF YOUR SUPPORT. WE ARE ON A MISSION TOGETHER!!!  (Comments, whining, suggestions on SD always welcome.) https://lnkd.in/g6Rq_f2Y

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The ‘help’ VCs offer that founders wish they’d skip : From unsolicited intros to random conference invites 😐! -Making random introductions that weren’t requested -Inviting founders to conferences where the VC is speaking -Providing strategic advice without understanding the startup’s specific context -Conducting frequent check-ins without offering meaningful support -Forwarding articles about competitors -Recommending broad networking connections that aren’t relevant -Offering unsolicited product UX suggestions -Imposing rigid meeting schedules at inconvenient times -Sharing generic industry trends without actionable insights -Sending irrelevant templates or tools that don’t fit the startup’s stage or needs -Offering feedback that feels more critical than constructive -Making broad claims about experience without engaging with the startup’s unique situation For VCs, adding real value means aligning support with the founder’s specific needs and goals. Any other pointers you like to add? Cc. Ed suh #startups #venturecapital #frustrations

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Exciting news for startups! California accounts for about 50% of all venture investments. The not-so-secret reason is that non-competes are illegal in California, so engineers at FAANGs can build competitors without fear. Today, the US Federal Trade Commission declared non-compete agreements illegal nationwide. This means that engineers at big tech companies can now leave and build their own companies without fear of violating a non-competes (legacy agreements for executives are still enforceable - talk to your lawyer), this is a step in the right direction for fostering innovation and competition across the country. A variety of big-business groups have vowed to sue to bring non-competes back, but at least for now, they're gone! #startups #innovation #competition #noncompete Official Announcement: https://lnkd.in/gRXUpgDy Impending lawsuit: https://lnkd.in/gqSiVuTd

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118 VCs (one hundred eighteen!) are gathering in San Diego next week - to meet with 30 SD startups. But it's so MUCH bigger than just those 30 co's. It brings VCs back - when they see quality companies. It helps those who are next-in-line and adjacent. It enables us to send deal flow all year 'round. It attracts talent and other companies. It inspires entrepreneurship. Connect is working for SD. Together, we're building the best damn innovation ecosystem on the planet. Year over year. Five.Ten.Thirty.

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🌟Innovative VC Firm Overcomes Exits Drought with Secondary Sales🌟 ⛵Navigating a challenging landscape where exits are scarce, Santa Barbara Venture Partners (SBVP) has pioneered a novel approach to sustain its growth and attract investors for its second fund: secondary sales. Instead of waiting for traditional exits like IPOs or acquisitions, SBVP opted to sell shares of its portfolio companies, demonstrating its ability to generate returns for investors and stand out in a competitive market. 🎤According to Dan Engel, founder and managing partner of SBVP, these secondary transactions have been a game-changer, sparking investor interest and bolstering the firm's credibility. By leveraging its recent successes, including a lucrative stake in sports-betting company DraftKings Inc.' acquisition of digital lottery app Jackpocket, SBVP seized the opportunity to return profits to its limited partners (LPs) and pave the way for its second fund. 💡Engel highlighted the challenges faced by young VC firms in raising subsequent funds, particularly amid a downturn in exit activity and heightened investor scrutiny. With traditional exit routes becoming increasingly elusive, the pressure is on for firms to demonstrate tangible returns and establish a track record of success. ✨"For us, secondary sales have been a game-changer. They've helped us return profits to our LPs and attract investors for our second fund," said Dan Engel. 💰For SBVP, the decision to pursue secondary sales was driven by the need to provide liquidity to LPs and validate its investment thesis in the eyes of prospective investors. By strategically offloading portions of its holdings in high-performing portfolio companies like Bark Technologies and Rad AI, SBVP not only generated substantial returns but also bolstered investor confidence in its ability to deliver results. ⚠Despite the complexities and potential stigma associated with early share sales, Engel emphasized the importance of prioritizing investor returns and seizing opportunities to unlock value for stakeholders. With a focus on profitability and transparency, SBVP remains committed to its mission of delivering sustainable growth and maximizing returns for its LPs. 🔍 "Returning profits to our investors is our top priority. By strategically selling shares, we're proving our commitment to delivering results and driving value for our stakeholders," added Engel. As SBVP continues to explore secondary transactions and expand its investor base, the firm stands as a testament to innovation and resilience in the face of market challenges. 🚀 ✅ Looking to raise capital for your #fund and increase the international pool of your LP #investors?   🤝 Need warm #LP introductions?   📝 Selling #secondaries to increase liquidity?   🧐 Looking for co-investments?   ▶ G+QUANT's link for inquiries and fund decks: https://lnkd.in/gjC_EuTE #VCInnovation #SecondarySalesSuccess #InvestorReturns #ValueCreation 

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🎙️ NEW EPISODE ALERT on Zero Limits Podcast! 🚀 EP 3 is live and it's packed with strategies for any scrappy underdog startup to outsmart the goliaths. https://lnkd.in/g4j-gCc5 “Think big, start small, and scale fast”. It’s a simple formula with endless complexities of execution for any startup founder wanting to disrupt an entire industry. Join me and Melinda Wittstock, Founder and CEO Podopolo and Associate Partner at Zero Limits Capital,  as we share how to disrupt whole industries by tapping into hidden markets and pioneering profitable niches. 🔗Listen and subscribe here or wherever you get your podcasts. 🔑Key Takeaways   🏗️ David vs. Goliath Strategies: Ever wondered how to stand tall when competing with the big guns in your industry? We've cracked the code on why giants might leave certain strategies untouched and how you, as a nimble disruptor, can swoop in to seize those opportunities. 🎯 Measuring for Mastery: Unearth the secret sauce behind monitoring and measuring key performance indicators that can skyrocket your business growth. The mantra is simple – if you can't measure it, you can't improve it. 📈 Tailor, Transform, Triumph: Discover how a shift in targeting and understanding your market size can lead to a whopping 1000% value gain. M&A maestro, investment banker and entrepreneur Steve Little shares a real-life case where identifying underserved markets and pivoting to a SaaS model brought about a revolution for a small banking software firm.   ➡️ If you're itching to unlock the potential of your venture and leave the competition in the dust, this episode is your blueprint for explosive growth. Listen now and catapult your business beyond limits! #ZeroLimitsPodcast #BusinessGrowthSecrets #EntrepreneurshipUnleashed #MarketDisruption #BusinessGrowthStrategies #ZeroLimitsVentures   Plus, a couple of important tips: - 🔑 **Know Your Market Size**: Misjudging your market can be fatal for startups. Understanding market dynamics is crucial to sustainability and scalability. - 🔑 **Educate with Intent**: Need to introduce a groundbreaking product or service? Aim for less consumer education and more pre-existing pain points with clearer market demand. - 🔑 **Adaptability is King**: As your business evolves, so should your strategies. Focus on profitability and traction at the right phase to ensure you're not just surviving, but thriving. 🔊 Tune in now to Zero Limits Business Growth Secrets #podcast for the full lowdown and transform these value growth insights into action and watch your business soar! https://lnkd.in/gr9KFGrh  #ZeroLimitsPodcast #BusinessGrowth #StartupStrategy #Entrepreneurship

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