Andrew Romans

The success of a Fund boils down to DPI (distributions back to LPs in relation to how much capital was deployed). The industry often gets infatuated with TVPI, which accounts for paper gains. However, these numbers are frequently not worth the paper they are printed on. Knowing when to stick or twist is always a challenge, so I favor a balanced approach: the third-third-third strategy. Sell a third of the investment at the first opportunity. Gradually sell the second third. Hold onto the final third for potential upside. Even this model needs adjustments based on market conditions, requiring a mix of aggressive selling or patience. The real issue for LPs is the industry's recent obsession with maximizing TVPI without enough attention to DPI. This can lead to portfolio imbalances and potentially disappointing (or zero) cash returns. 🎙 Listen to my full episode of Fintech Leaders with good friend Miguel Armaza for more on data as the new gold, secrets behind successful VCs, and the importance of founder-market fit: Spotify: https://spoti.fi/3KitB4b Apple: https://apple.co/4bXmmuC Youtube: https://bit.ly/3Vh4HIz

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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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Application adoption accelerates as infrastructure commoditizes. CoinBase’s recent Market Intelligence Report highlights how #Solana is uniquely positioned to lead in blockchain speed, scalability, and cost efficiency. Solana’s daily transaction volume has consistently been among the highest across Layer 1 blockchains, demonstrating its widespread use in decentralized finance (DeFi) and NFTs. Developer activity, with a 50% year-over-year increase in projects built on Solana, reflects growing innovation in this ecosystem. Low transaction costs and fast finality are driving Solana’s adoption for real-world applications like payments, gaming, and social and for fun applications like attention tokens and art NFTs. As we look ahead, Solana’s advancements in handling high-frequency, low-latency transactions, a mobile first perspective on interfaces and an intense, always on execution culture will further enhance Web3 applications.

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Part of the DPI squeeze visualized: Fewer tech IPOs in 2022-2024 than during both the post dot-com bubble (2001-2002) and the financial crisis (2008-2009). Various reasons for this - more private capital, prohibitive regulations, too lofty valuations, etc. - but the end result is fewer exits via public markets. The IPO window is still pretty closed. 🪟 via Coatue.

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How do macro factors drive crypto markets? From Gemini, a report covers the framework and metrics to consider this relationship

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Innovators embrace clear regulations to launch products that solve problems, not create new ones. At the same time, staying abreast of the patchwork of regulations can be daunting: the global crypto regulatory landscape is evolving rapidly, with regulatory authorities emphasizing consumer protection, financial stability, and combating illicit activities. The best authorities balance regulation to enhance innovation. At the end of the day, do the right thing. The entry of mature institutional players is fostering a more structured and transparent market environment. This transparency will help underwrite strong high integrity assets and perish shadowy projects. #CryptoRegulation #web3 #innovationpolicy

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What Dave McClure is building resonates well what we are doing with our Siena Secondary Fund. Although one focuses on fund stakes and the other company positions, the journey is the same - need to educate the market about what is #VC #secondary and how to benefit from it...

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🌟 Join Our Panel Discussion on Licensing vs. Manufacturing: Are you navigating the decision between licensing and manufacturing for your software, hardware, or physical product? I'll be speaking from the US Government Patent and Trademark Office (USPTO) today at 11 AM virtually: 🔗 Event Link: https://lnkd.in/g3VTnCvq What you'll learn: - Pros and cons of licensing vs. manufacturing - What companies need to see to license your product - What can and cannot be licensed - What you need to know to manufacture Thank you Larry Udell for organizing this wonderful event! #Engineering #Entrepreneurship #Innovation #USPTO #IntellectualProperty

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💡The Stanford Blockchain Accelerator (SBA) Cohort 7 is open for application! 💡The SBA has helped launch some of #Stanford's top Blockchain ventures including Nexus.xyz, Modulus, 0G Labs, PIN AI, Caldera and many more. 💡90% of the teams raise an average of $2M+ from the leading VC funds (a16z, Sequoia Capital, Bain Capital, Dragonfly, Paradigm etc) 💡70% of the teams launch and are post-revenue within 6 months of joining the accelerator. As part of the Stanford Blockchain Club the program does not invest or take any equity Apply here: https://lnkd.in/eb_hcCFS #blockchain #crypto #cryptocurrency #btc #startup

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https://buff.ly/46dCF4M A Comprehensive Guide for Pitch Decks (Investor Deck) Versions provides valuable insights into crafting effective presentations for potential investors. This resource covers essential elements like market analysis, financial projections, and competitive landscape assessment. It emphasizes the importance of clear communication and compelling storytelling to engage investors. Additionally, it offers tips on structuring the deck for maximum impact, utilizing visuals effectively, and tailoring the content to the target audience. Understanding these principles can significantly increase the chances of securing funding for your business. #PitchDecks #InvestorRelations

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Today, The Bitcoin Students Network (BSN) launch their Layer Zero program 🔥 The program aims to empower youths globally to collaboratively build and strengthen Bitcoin's "social layer." 🌍 As BSN Co-founder Ella Hough put it, "Layer Zero is for those students who recognize the power of community, thinking for themselves, and taking control of their future, today." 🚀 My latest for Forbes Crypto 📌 https://lnkd.in/d7H2hpFi

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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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The latest IMF report on Bitcoin mining by Shafik Hebous and Nate Vernon-Lin contains several basic errors and as such, the report comes under the category of misinformation. https://lnkd.in/d5wvTjfD Mistakes include 1. IMF's own source data show that AI's share of energy consumption and CO2 emissions is increasing, which cryptocurrency's share is decreasing. However, they go on to propose a tax on crypto but not AI. (see chart below) 2. Citing CCAF's statistics on Bitcoin emissions, even though CCAF's own website acknowledges that their data has not been updated since Jan 2022 and is currently significantly overstating emissions. 3. Building their conclusion on the work of authors such as Mora et al and Alex de Vries, who's work has been discredited in peer reviewed research multiple times. (Cambridge Judge Business School, Sai and Vranken) 4. Ignoring the scientific consensus (9 of the last 10 papers published), World Economic Forum reporting (3 case studies highlighting positive environmental externalities), 5 independent whitepapers, and first hand experience of grid operators such as Brad Jones (who ran both ERCOT and NYISO) who confirm Bitcoin mining has a net decarbonizing impact on grids, helps the renewable transition and makes their operations more profitable. 5. Ignoring independent analysis from the Digital Assets Research Institute which showed Bitcoin is now the world's most sustainable energy driven industry, with 56.5% sustainable energy, rising 3.5% per annum. By contrast the banking and financial services sector, of which the IMF is part, uses ~38% sustainable energy, rising 0.5% per annum. 6. Failure to mention that Bitcoin projects such as Gridless in Africa have already supported multiple strategic objectives, which IMF claim on their website are strategic goals of theirs, such as supporting renewable microgrid development, energy independence and energy abundance in developing nations. (Notably: Bitcoin projects have achieved this without imposing a debt-burden on those benefitted). 7. Disclosure statement lacking: The IMF is developing its own CBDC. CBDCs represent a directly competing vision of the future of digital currency to Bitcoin. While this does not mean that the errors by the authors were made knowingly, it is a conflict of interest, and as such should be declared in your report. Due to these fundamental flaws, this report and its conclusions should be disregarded by policymakers and regulators until these errors are resolved. To the authors Shafik Hebous and Nate Vernon-Lin, I would encourage you in future to refer first to the newly formed Bitcoin Research Institute, who was set up to help eliminate basic errors in Bitcoin commentaries and improve the robustness of research done into Bitcoin.

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