Regina Riojas

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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Want to know what metrics venture capitalists really care about? Aumni's latest analysis dives into 10,000+ data points from portfolio companies at all stages. Here's what we uncovered: 1️⃣ Revenue, net burn rate, FT headcount, and gross margin are the hottest metrics. 2️⃣ Most VCs request 6-9 specific metrics per quarter from each portfolio company. 3️⃣ Cash is king in the early stages but loses its throne as companies grow. 4️⃣ Operational metrics dominate at Series D+, taking up half of the top ten. Key insights: - Cash-on-hand and cash runway plummet in importance from a combined ranking of 3.5 in the seed stage to barely making the top ten by Series D+. - Metrics spotlighting operational efficiency, like gross margin, total OpEx, EBIT, bookings, and debt balance, become crucial as startups scale. ----- Follow All Chance to learn from more innovative insights.

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In his recent post, our CIO, David Clark, shares an important reflection on what to expect in the VC industry over the next 3-5 years. As we are forecasting to see fewer and larger exits, with the most ones producting even stronger returns, it becomes even more important to have exposure to these winners and their managers. Similarly, looking at 2008/2009 data, we have seen a similar divergence, where VenCap’s Core Managers were the ones that were able to massively outperform the market even in moments of crisis. This was mainly driven by the quality of their portfolio companies, availability of capital and willingness to invest during challenging times. If you want to learn more about how VenCap’s Core Manager strategy and how to access the Core Managers, visit on our website: https://www.vencap.com or get in touch with the team.

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As we enter a period of fewer but larger exits, VenCap International plc's David Clark shares his take on the three 🔑 factors that will contribute to outperformance in VC over the next 3-5 years: 1️⃣ Quality of portfolio companies 2️⃣ Availability of capital 3️⃣ The willingness to keep investing during challenging periods Read more 👇 #VC #LPInsights

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Earlier this year, our Allocate team published our inaugural VC Industry Outlook report, where we polled 100 fund managers and limited partners for their perspectives on what they expect to see in 2024 and beyond. Topics included: - Fundraising climate for VC funds - Limited Partner Trends - Trends in AI - What might fundraising look like for companies? - Markdowns and fallen unicorns - Opportunities and reasons for optimism - Early Stage trends - M&A and IPO thoughts Check out the report here: https://lnkd.in/gEFxsmwT

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VC world can be cruel and unforgiving. With LPs more and more pushing for distribution and liquidity, fund managers in the mid-tenure of their fund with zero DPI and TVPI around 1.0 would have much more difficulty to raise new fund. The ability to fundraise is one of the crucial indications and validation of the job for VCs. Key highlights from the article below: Thirteen percent of venture General Partners (GPs) no longer plan to raise another fund due to LP pullback. This rate has doubled since H1 2023 when only 6% of GPs had no plans for another fund. Nearly 44% of venture firms surveyed in mid-2023 had previously postponed their fundraising plans due to concerns about overexposure to the asset class. Many emerging managers entered venture capital in 2019 or 2020 when the LP market supported more funds. However, slow exits in the first half of 2024 have led to challenges in raising second funds without significant cash distributions to LPs. Some venture GPs are now actively participating in the secondaries market to demonstrate returns. Despite the challenges, GPs who secured fresh capital remain optimistic. They expect the 2023 and 2024 vintages to be the strongest return years since 2019. 🚀📈 #VC #VentureCapital #Fundraising #LPs #EmergingManagers #TechInvestment #MarketTrends #CountdownCapital #IndustryInsights #JetVentures #JetInvestment‍‍‍‍‍‍

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Summary: Bolt's CEO has threatened legal action against an investment bank involved in their recent fundraising efforts, claiming they signed a binding term sheet for $200 million but did not follow through. Key takeaways: Bolt's CEO believes there was miscommunication at Silverbear Capital, one of their lead investors, leading to confusion about the fundraising deal. A leaked term sheet showed Bolt trying to raise $200 million in equity and $250 million in marketing credits, with a unique pay-to-play structure. The involvement of Silverbear Capital and The London Fund in the deal remains unclear. Counter arguments: Silverbear Capital's partner insists there was no miscommunication and the deal was never discussed or approved. The London Fund has confirmed discussions with Bolt's management but denies any finalized transaction. #venturecapital

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Despite the increase in ARR from $500K to $2M, the company's valuation remains the same, implying a drop in the multiple used for valuation. This could indicate that early-stage companies are often valued based on potential 🚀(higher multiples), while more mature companies are valued based on actual performance 📣 and lower multiples. ✅Valuation Multiples: At the Seed stage, companies are valued at multiples as high as 32x their Annual Recurring Revenue (ARR). However, as they move to Series A, the multiples can drop to 10x. The visual shows this sharp decline in multiples. Valuation and Revenue Comparison: ✅Seed Stage: The example shows a $20M valuation at the Seed stage, where the startup has raised $4M and has $500K ARR (Annual Recurring Revenue). The valuation is based on a higher multiple of revenue (32x). ✅Series A: After 24 months, the company achieves a flat valuation of $20M, but now has $2M ARR.The revenue has grown 4x, but the valuation multiple has dropped to 10x. 👉Flat Round? The flat round section raises the question of whether the valuation stays the same even though revenue has increased. This is common in markets where investors are cautious, leading to less aggressive valuations at later stages. In summary, while a startup’s revenue may increase significantly from Seed to Series A, the valuation multiple tends to drop, which could result in a flat valuation despite higher revenue. 📣 Enhance your funding journey with 🚀 KAARIA and drastically increase the odds of getting fundend. 👉 👉 👉 ✅ https://kaaria.ai/ Thanks, credit and Kudos to Michael Ho for the great Post! #valuations #startups #fundraising #founders #Startup #innovation #entrepreneurship #kaaria #sustainability #kaariastartupvaluation #investing #networking #venturecapital #kaariagetfunded #exits 

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Why leverage multiples 'jump up' at $5M EBITDA: Debt-seeking lower-middle-market dealmakers will find the availability of leverage does a step change when a company reaches $5 million in EBITDA, according to Conor Tidgwell, Senior Vice President at Avidbank. The size threshold is an important one for the Entrepreneurship-Through-Acquisition (ETA) market, because ETA searchers often source potential investment businesses making as little as $1 million to $2 million EBITDA. Tidgwell says companies with less than $2 million become "more challenging" to finance, because there is "less margin for error." Tidgwell estimates businesses generating around $2 million in EBITDA might secure leverage of 2 to 2.5 times EBITDA, while businesses over the $5 million EBITDA threshold may be able to secure 3 times leverage. Tidgwell's comments are part of a Search Party episode, "Deal Dynamics in the Lower-Middle-Market: Software, Commercial Services, Software," also including Dustin Sellers and Anthony Walker, Managing Partners at ETA private equity firm Next Coast Legacy. Search Party Lead Sponsor: Next Coast Legacy https://lnkd.in/eSAuRW5p  Search Party Sponsors: Avidbank https://www.avidbank.com/  Boulay https://boulaygroup.com/  Mayer Brown https://lnkd.in/gU7sPPSg  Plexus Capital https://plexuscap.com/  Search Party video-podcast website: https://lnkd.in/efJEa6GV Watch the full episode on Youtube: https://lnkd.in/e7VchGCc Spotify: https://lnkd.in/eGSArRbh Apple Podcasts: https://lnkd.in/eQFREcbe Search Party Lead Sponsor: Next Coast Legacy https://lnkd.in/eSAuRW5p Search Party Sponsors: Avidbank https://www.avidbank.com/ Boulay https://boulaygroup.com/ Mayer Brown https://lnkd.in/gU7sPPSg Plexus Capital https://plexuscap.com/ Search Party video-podcast website: https://lnkd.in/efJEa6GV #margins #EBITDA #eta #privateequity #financing

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🔍 Analysis from 253 funds, all pre-2019, shows that small funds (0-100MM) definitely can outperform when successful, but come with a much higher level of volatility... — Allocate's Samir Kaji dives into performance data differences between small and large VC funds👇 Small Funds (0-100MM): - Mean TVPI: 4.3 - Standard Deviation: 2.4 - Median Portfolio Companies: 26 Mid-Sized Funds (100-250MM): - Mean TVPI: 3.6 - Standard Deviation: 2.0 - Median Portfolio Companies: 24 Mid-Large (250-500MM): - Mean TVPI: 3.0 - Standard Deviation: 1.2 - Median Portfolio Companies: 35 Large (500MM+): - Mean TVPI: 2.7 - Standard Deviation: 0.9 - Median Portfolio Companies: 43 Read more below. #VentureCapital #InvestmentStrategy

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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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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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A huge congrats to the Tactyc by Carta team!! You've built an amazing product and have been great partners to those using the platform. I routinely hear from users that are impressed with the speed and quality of help that Tactyc provides to their partners. VC is changing (slowly) and managers need to build better data-driven decision making systems. The market operates on 'pirate rules' - fall behind, left behind. If you're Tactyc Curious, I'd be happy to share how I integrate it into Fund workflows. #VC #emergingmanagers Coolwater Capital #datadriven #VentureFinance #VCfundmanagement #Venturecapital

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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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Lume (YC W23), co-founded by Nebyou Zewde, Robert Ross, and Nicolas Machado, has raised $4.2M in a Seed round led by General Catalyst, with participation from Khosla Ventures, Floodgate, Y Combinator, and Soma Capital. Lume (YC W23)’s AI-powered platform automates data mapping and integration, helping companies in industries like e-commerce, insurance, and finance streamline onboarding, data normalization, and complex data workflows. By leveraging large language models, Lume enables faster, more efficient data mapping and management across unique systems. The new funding will allow Lume to make strategic hires in AI research and data infrastructure to handle the growing data needs of its customers and tackle the industry’s long-standing challenges in data integration. Collin Montag Puneet Kumar Brad Flora Quentin Clark Max Rimpel Vinod Khosla Mike Maples, Jr Nikhita Jaaswal Fouad Farhat Sabrina Hahn Devvret Rishi Sam Stone Ana Clara Martins Sigalit Perelson Scharfstein John Bautista

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Attention founders and investors! The Angel Capital Association has released a new ACA #ConvertibleNote Template. This resource balances the rights of both parties, streamlining early-stage financings. Get your copy today and benefit from ACA and Y Combinator's expertise. https://lnkd.in/dTz67PcK #AngelInvesting #StartupFunding #ConvertibleNotes #EarlyStageFunding #Entrepreneurship #InvestorResources #StartupCommunity #VentureCapital #FundingResources #SeedFunding #GrowthOC #StartupCouncil #Startup #California Scott Fox 🦊

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