Arpan Ajmera’s Post

Forget about @elonmusk and in 5 minutes I'll share with you what I learned on: . . Venture Capital 101. This is one of the most complex areas in finance that I have come across yet. And many brilliant minds in this field like Vusi Thembekwayo, Steve Barlett, and the like. Well. That has nothing to do with what I want to share with you today. Venture capital is a baby of private equity that focuses on investing in new companies with the potential to succeed. It's just like a man who's happy that his wife will finally give birth to a boy after being barren for 15 years. These venture capitalists assess the risk and potential of these companies with the hope that they will get a return worth more than they invested through equity gains as the company grows. Imagine when you are feeding a cow hoping she'll give birth to other calves (say 20 of them) and you sell them and make more money than it costs you to buy that cow. Also, from what I learned, venture capitalists love to invest in technology and bio-technology a lot. HARD TERMS IN THE VENTURE CAPITAL JOURNEY: - EQUITY: This is the amount of money that will be returned to a company's shareholders if all the assets were liquidated and all of the company's debt is paid off in the case of liquidation (Investopedia). Imagine Meta Facebook gets liquidated today and is being sold off, those who invested in it all have a certain percentage of the money in Facebook that belongs to them. That's the end of today's lessons. Credit: Visible takes the credit for teaching me about the meaning of venture capital today. Share this with someone else if you love it. #venturecapital #equity

If you want to make millions, solve billion-dollar problems. But to make billions, you need to acquire million-dollar companies. Less than 1% of businesses actually reach billion-dollar status. But those that do all have this in common: acquisitions and fundraising. Regardless of industry and market, almost all billion-dollar brands have climbed to the top .1% by acquiring their competition. Salesforce acquired Slack. Google acquired YouTube. Facebook acquired Instagram. Amazon acquired Whole Foods. Microsoft acquired LinkedIn. The list goes on. To make billions, acquire million-dollar companies. But how can you afford to do that? Fundraising. The backbone of every Fortune 500 company is raising capital. Whether it’s through crowdfunding, venture capitalists, private equity firms, or going public, capital is the key. There’s a false narrative that to be wildly successful, you have to outwork the competition. The reality is, you just have to buy them.

📈 How M&A Professionals Can Be the Best Option for Early-Stage Companies When early-stage companies look to scale or compete in fast-paced markets, mergers and acquisitions (M&A) professionals can offer a powerful, often underutilized alternative to traditional venture funding. While startups usually focus on raising capital from investors, acquisition by the right partner can unlock even greater opportunities for growth. Many successful companies like Instagram, Android, and YouTube were propelled to new heights after being acquired. Here’s why M&A professionals can be the ideal choice for early-stage startups. 🚀 Access to Capital and Resources. One major challenge startups face is securing the resources needed to scale—whether it’s capital or infrastructure. Acquisitions solve this by providing not just funding but access to a larger customer base, better technology, and more robust infrastructure. For example, Instagram had only 13 employees and 30 million users when Facebook acquired it for $1 billion in 2012. That acquisition supercharged Instagram’s growth to over 1 billion monthly active users, thanks to the resources Facebook brought to the table. 🚀 Innovation at Scale For acquirers, buying a startup often means gaining access to fresh ideas, innovative technology, and new talent. This creates a win-win: the startup gets the backing to scale faster, and the acquiring company gains cutting-edge innovation. A perfect example is Google’s acquisition of Android in 2005 for $50 million. Originally a struggling startup, Android has since become the world’s leading mobile operating system, used by over 72% of smartphones globally. 🚀 Expanding Market Reach M&A professionals help startups tap into new markets quickly. When Facebook bought WhatsApp in 2014 for $22 billion, the messaging app had 450 million users. Today, WhatsApp has over 1.5 billion users worldwide, accelerating Facebook’s global growth, particularly in emerging markets. 🚀 Why M&A Is a Win for Startups Acquisitions offer immediate access to capital, strategic expertise, and market reach, often leading to sustainable growth that organic methods or VC funding alone may not achieve. Startups can scale faster, innovate more freely, and expand more easily when partnered with the right acquirer. Check out the short video to learn how M&A professionals can help early-stage startups unlock their full potential. #MergersAndAcquisitions #StartupGrowth #Acquisitions #BusinessStrategy #ScaleUp

🚨From $𝟭𝟬𝟬,𝟬𝟬𝟬 𝘁𝗼 $𝟲,𝟯𝟱𝟬,𝟬𝟬𝟬 in Just 3 Years 🤯 If you invested $𝟭𝟬𝟬,𝟬𝟬𝟬 in Pinterest in 2011, your investment would have grown 𝟲𝟯.𝟱 𝘁𝗶𝗺𝗲𝘀 𝗯𝘆 𝟮𝟬𝟭𝟵, when Pinterest went public at a valuation of ∼ $12.7 billion. In other words, a $𝟭𝟬𝟬,𝟬𝟬𝟬 investment in 2011 would have been worth $𝟲,𝟯𝟱𝟬,𝟬𝟬𝟬 by 2019. Breakdown: ▷ 2011: Benchmark Capital and other investors invested ∼$𝟮𝟳𝗺𝗻 in Pinterest during its Series B round at a valuation of around $200 million. ▷ 𝗘𝘅𝗶𝘁: 𝗩𝗮𝗹𝘂𝗮𝘁𝗶𝗼𝗻 𝗮𝘁 𝗜𝗣𝗢 (𝟮𝟬𝟭𝟵): $𝟭𝟮.𝟳 𝗯𝗶𝗹𝗹𝗶𝗼𝗻 ▷ Holding Period: 𝟯 𝘆𝗲𝗮𝗿𝘀 (𝗳𝗿𝗼𝗺 𝗦𝗲𝗿𝗶𝗲𝘀 𝗕 𝘁𝗼 𝗜𝗣𝗢). ▷ 𝗘𝘀𝘁𝗶𝗺𝗮𝘁𝗲𝗱 𝗥𝗢𝗜: 𝟲𝟯.𝟱𝘅 #startups #venturecapital #investing #tech

what is #exit in case of startups? It typically refers to a strategy where the founders, investors, or early stakeholders leave the business, usually by selling their shares or ownership stake. This can happen in several ways, such as through an acquisition, a merger, or an initial public offering (IPO). An exit strategy is important for investors and founders to achieve a return on their investment and to plan for the future of the business. Here are a few common types of exit strategies for startup businesses: 1. **#Acquisition:** The startup is bought by another company. This is often an established business looking to expand its product offerings, acquire talent, or eliminate competition. For example, when Facebook acquired Instagram in 2012, it was an acquisition exit for Instagram's founders and early investors. 2. **#Merger:** The startup combines with another company to form a new entity. This can be beneficial for both companies by pooling resources and market presence. 3. **#Initial Public Offering (IPO):** The startup goes public by offering shares on a stock exchange. This allows founders and early investors to sell their shares on the open market. For example, when Uber went public in 2019, it allowed early investors like SoftBank to realize a return on their investment. 4. **#Management Buyout:** The management team of the startup buys out the investors' stakes to take full control of the business. 5. **#Liquidation:** Although less favorable, sometimes startups may not succeed and need to sell off their assets to pay back investors and creditors. #learning #education #entrepreneurship #terminology

Top VC companies in 2024 Let's look at the leading Venture Capital firms in the US. Each of the businesses I’ll mention brought success to numerous startups and encouraged more of them to consider stepping in. Here they are: Tiger Global Management —  invests in global public and private companies that use technological innovations, and has already invested in Briq, Wiz, Scribe. Sequoia Capital —  invests in early-stage startups and founders across a variety of sectors including technology and healthcare, its famous investments include Apple, Cisco, Google, Instagram, LinkedIn, PayPal, WhatsApp, and Zoom. Andreessen Horowitz — backs bold entrepreneurs building the future through technology and has already made an investment in Facebook, Groupon, Twitter, and Zynga. New Enterprise Associates (NEA) — explores the outer edges of possibility in technology and healthcare, its higher-profile deals have included Patreon, Plaid, Upstart, and UpWork. Lightspeed Venture Partners — mostly invest in information technology, and enterprise software like Grubhub, Flixster, Cameo, and Giphy. Dragoneer Investment Group — focuses on growth-stage investments in the software, fintech, and e-commerce sectors including Uber, MercadoLibre, Airbnb, Spotify. Technology Crossover Ventures — specializes in investing in both public and private entities including Netflix, LinkedIn, Airbnb, Facebook, GoFundMe and Spotify. Bessemer Venture Partners — financially supports Saas, cloud computing, cybersecurity, healthcare, enterprise software, and financial services like LinkedIn, Shopify, Twitch, Pinterest, and DocuSign. Accel — invests in everything from consumer to infrastructure including Etsy, Rovio, Braintree, and Atlassian. Battery Ventures — invests in application and infrastructure software, consumer, industrial technology and life sciences, has already invested in CoinBase, Databricks, Glassdoor, and Groupon. Any other VC giants you can think of? #VentureCapital #VCinvestments #StartupTopInvestors

📈 **How M&A Professionals Can Be the Best Option for Early-Stage Companies** When early-stage companies look to scale or compete in fast-paced markets, mergers and acquisitions (M&A) professionals can offer a powerful, often underutilized alternative to traditional venture funding. While startups usually focus on raising capital from investors, acquisition by the right partner can unlock even greater opportunities for growth. Many successful companies like Instagram, Android, and YouTube were propelled to new heights after being acquired. Here’s why M&A professionals can be the ideal choice for early-stage startups. 🚀 **Access to Capital and Resources** One major challenge startups face is securing the resources needed to scale—whether it’s capital or infrastructure. Acquisitions solve this by providing not just funding but access to a larger customer base, better technology, and more robust infrastructure. For example, Instagram had only 13 employees and 30 million users when Facebook acquired it for $1 billion in 2012. That acquisition supercharged Instagram’s growth to over 1 billion monthly active users, thanks to the resources Facebook brought to the table. 🌱 **Innovation at Scale** For acquirers, buying a startup often means gaining access to fresh ideas, innovative technology, and new talent. This creates a win-win: the startup gets the backing to scale faster, and the acquiring company gains cutting-edge innovation. A perfect example is Google’s acquisition of Android in 2005 for $50 million. Originally a struggling startup, Android has since become the world’s leading mobile operating system, used by over 72% of smartphones globally. 💡 **Expanding Market Reach** M&A professionals help startups tap into new markets quickly. When Facebook bought WhatsApp in 2014 for $22 billion, the messaging app had 450 million users. Today, WhatsApp has over 1.5 billion users worldwide, accelerating Facebook’s global growth, particularly in emerging markets. 💼 **Why M&A Is a Win for Startups** Acquisitions offer immediate access to capital, strategic expertise, and market reach, often leading to sustainable growth that organic methods or VC funding alone may not achieve. Startups can scale faster, innovate more freely, and expand more easily when partnered with the right acquirer. Check out the short video to learn more about how M&A professionals can help early-stage startups unlock their full potential. #MergersAndAcquisitions #StartupGrowth #Acquisitions #BusinessStrategy #ScaleUp

Ever wondered how some startups make it to a successful exit while others fade away? While many founders dream of IPOs, the majority of successful exits are acquisitions. Exits are not just about cashing out but creating opportunities for growth and learning. Whether it’s an acquisition or an IPO, the key is to navigate with strategic foresight and adaptability. The journey to a successful exit often depends on many critical factors: -> 𝗧𝗶𝗺𝗶𝗻𝗴: Many founders find that selling after a few years can yield better results than waiting for a larger exit, as the market dynamics and buyer interest can shift over time. -> 𝗔𝗹𝗶𝗴𝗻𝗺𝗲𝗻𝘁: It's essential for co-founders to be on the same page regarding exit strategies. -> 𝗙𝗼𝗰𝘂𝘀 𝗼𝗻 𝗙𝘂𝗻𝗱𝗮𝗺𝗲𝗻𝘁𝗮𝗹𝘀: Prioritising product-market fit, sales, and customer retention can create a more attractive business for potential buyers, ultimately enhancing exit potential. In 2012, Instagram, with just 13 employees, was acquired by Facebook for a staggering $1 billion. This move wasn't just about the money; it was about strategic alignment. Instagram leveraged Facebook's resources while maintaining its unique identity. This acquisition allowed Instagram to grow exponentially, benefiting from Facebook's vast user base and technological infrastructure. Lesson to take from this is to evaluate potential acquirers not only based on the financial aspect but also on the strategic fit. Aligning with a company that can help your startup expand its reach and resources while preserving its unique identity can lead to long-term success. ___ Enjoy this? Follow Oliver Alan Stafurik for daily startup & VC tips and subscribe to my free newsletter: https://lnkd.in/epi4V5uF ✋🏼 #startups #vc #growth

Do you know how Slack turned from a small SaaS startup into a billion dollar company?  Hint: It's not just about having a great product but it is about mastering the art of funding. As someone who's invested in over 80+ startups, I've seen how crucial the right funding strategy is for SaaS success. But here's the news - there's no one-size-fits solution. Let's look at the different ways SaaS companies get funds to grow: ✅Equity Financing: This involves selling shares of your company to private investors or venture capitalists. Like how Facebook raised capital through equity financing by selling shares to private investors. This helped the company scale rapidly and eventually go public ✅Debt Financing: Borrowing money through loans or venture debt allows you to retain full ownership of your company. Like how Tesla used debt financing multiple times to fund its operations and expansion. Many times it issued convertible bonds, which are a type of debt that can be converted into equity. ✅Venture Capital: VCs can be a great source of funding if you're aiming for rapid growth. Airbnb received significant venture capital funding from firms like Sequoia Capital and Andreessen Horowitz. This funding was crucial for its rapid growth and global expansion. ✅Angel Investors: Ideal for early-stage funding, angel investors provide capital in exchange for equity. A great example would be Google which received early-stage funding from angel investors like Andy Bechtolsheim, who wrote a $100,000 check to the company before it was even incorporated. ✅Subscriptions and Customer Payments: Netflix started with a subscription-based model, charging customers a monthly fee for DVD rentals. This model provided a steady revenue stream and helped the company transition to streaming services. ✅Incubators and accelerators: These types of funding offer mentorship programs, office space, and capital in return for equity or future returns. Dropbox was part of the Y Combinator accelerator program, which provided mentorship, office space, and initial funding. This support was instrumental in its early development and growth. Each funding option has pros and cons; ensure whatever you choose aligns with your business goals and allows you to scale effectively. If you're a SaaS founder struggling with funding decisions, drop them in the comments or DM me. #saasfunding #startupfunding #scalingbusiness

This secret early-stage investor in Facebook was embarrassed to talk about his investment. This is the story of Venky Harinarayan 👇 - Venky, a serial entrepreneur, was approached by Sean Parker and Mark Zuckerberg back in 2004 when Facebook was planning to raise its first round of venture financing. - Venky met Mark at his new office when Facebook had less than 10 employees. Venky advised Mark on raising funds from venture capital firms versus media companies, as Facebook was considering raising funds from The Washington Post. - After talking to Mark for a while, Venky realized that Mark was incredibly smart, and he made up his mind to invest in Facebook if he got the chance. - Fast forward to 2005, when Venky learned that Accel was investing in Facebook, he approached Sean and asked him to let him invest in Facebook alongside Accel. - Sean warned Venky that the valuation would be absurdly high, and Venky would receive only a very small stake. - Venky finally decided to invest in Facebook alongside Accel. Accel invested around $12.7 million in Facebook at a valuation of $100 million. - This valuation was criticized by many industry professionals in the Valley, including Facebook's first investor, Peter Thiel. - A few days after this investment, Venky was talking to a VC who was unaware that Venky had also invested in Facebook. The VC said, 'Accel paid crazy money' and was not very happy with the valuation. - Venky felt very embarrassed and did not tell anyone that he was also an investor in Facebook. - This embarrassment soon faded away as Facebook started gaining traction and became one of the biggest tech companies in the world. - Although it was a small stake, the investment in Facebook was one of the best bets Venky ever made. Follow Vrishank R. for more such insider stories revolving around the startup and venture capital ecosystem 😄 #startup #facebook #venturecapital #mark