Anirudh P.

🚨 Fundraising Alert 🚨 Top tier companies raising Pre-Seed to Series A in the next 6 months should apply to Focal where they can pitch almost all their prospective investors at once. Demo day is on May 16th. ✅ Applying takes 7 mins ✅ Previous applicants raised from funds like Sequoia, Balderton, Episode 1, Lightspeed and GV. ✅ Even if you find fundraising easy, this is a way to build added momentum. You can apply here: https://lnkd.in/eTdTtSw7

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HNY! Hope everyone had a great break. Quiet on here as head down. Such a lot of exciting things coming up: - More Tools for all scaleups to improve their growth trajectory - More Founders using VenturePath to secure their Series A-B investment rounds - More VCs joining VenturePath's VC Network - More Events (including a VC dinner for 50 on the 22nd and SuperScalers female founders event on the 30th) - More Partners joining our scaleup support ecosystem - More Data to publish on 2024 VC trends for the UK ScaleUp Investment Mission Busy January! We'll share more on these when we have a minute... If you can play a part, as a founder, VC, investor, partner, sponsor, data provider etc., there's still room for a conversation or coffee with you though 😉

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In addition to building our own VC practice at AAF Management Ltd., we’ve invested in 37 VCs since 2017. Here is what, I believe, it takes to build a multi-vintage, early-stage, venture franchise: 𝟭- 𝗦𝗵𝗼𝘄 𝗙𝗼𝗰𝘂𝘀: hyper-focused GPs build longevity and consistency in their businesses. If you pitch LPs saying you will invest in early stage consumer but end up doing late stage consumer that’s a massive red flag. Stay germane to your mandate and strategy. 𝟮- 𝗔𝗿𝘁𝗶𝗰𝘂𝗹𝗮𝘁𝗲 𝗮 𝗨𝗻𝗶𝗾𝘂𝗲 𝗩𝗮𝗹𝘂𝗲 𝗣𝗿𝗼𝗽𝗼𝘀𝗶𝘁𝗶𝗼𝗻: the market is crowded with venture firms, articulate your differentiated value proposition to LPs and founders. Don’t try to be everything to everyone. Focus on 1-2 value propositions to your stakeholders and execute them with excellence and defensibility. 𝟯- 𝗚𝗲𝘁 𝗕𝗲𝘁𝘁𝗲𝗿 𝗮𝘁 𝗦𝘁𝗼𝗿𝘆-𝗧𝗲𝗹𝗹𝗶𝗻𝗴: we tell stories everyday. Raising capital for a fund and building your venture firm requires that same story-telling skillset. Tell consistent narratives to the market to help build your own brand as well as your firm’s brand. 𝟰- 𝗟𝗲𝘃𝗲𝗿𝗮𝗴𝗲 𝘆𝗼𝘂𝗿 𝗦𝘂𝗯𝗷𝗲𝗰𝘁-𝗠𝗮𝘁𝘁𝗲𝗿 𝗘𝘅𝗽𝗲𝗿𝘁𝗶𝘀𝗲: if you possess subject-matter expertise in a certain vertical, domain or industry, you already own a defensible moat. Accentuate that to your advantage when building your firm, raising capital from LPs and winning deals from founders. 𝟱- 𝗠𝗮𝗶𝗻𝘁𝗮𝗶𝗻 𝗮 𝗖𝗼𝗹𝗹𝗮𝗯𝗼𝗿𝗮𝘁𝗶𝘃𝗲 𝗡𝗮𝘁𝘂𝗿𝗲: early stage venture is a highly collaborate asset class. Keep your ego at the door, you will never be able to do everything it takes to build a firm alone. Leverage LPs, partners and founders for deal flow sourcing, diligence and overall industry best practices. 𝟲- 𝗙𝗶𝗻𝗱 𝘆𝗼𝘂𝗿 𝗣𝗿𝗼𝗱𝘂𝗰𝘁-𝗠𝗮𝗿𝗸𝗲𝘁-𝗙𝗶𝘁: in quintessential startup vernacular, ideally find your product-market-fit by the time you launch your second fund. You need product-market-fit before you scale your AUM, grow your team and carry more fiduciary responsibility. 𝟳- 𝗞𝗲𝗲𝗽 𝘆𝗼𝘂𝗿 𝗣𝗮𝘁𝗶𝗲𝗻𝗰𝗲: early stage VC investing is a marathon. Patience will reward you personally, professionally and financially. Build mental, physical and psychological stamina to endure the inherent ebbs and flows of your entrepreneurial journey. 𝟴- 𝗧𝗵𝗶𝗻𝗸 𝗟𝗼𝗻𝗴-𝗧𝗲𝗿𝗺: early stage VC investing is the archetypal long-term financial asset. Think in 10 year increments for your firm’s grand vision, think in 4 years for a given fund’s investment period and think in quarters when reporting material updates on your portfolio to your LPs. 𝟵- 𝗛𝗮𝘃𝗲 𝗙𝘂𝗻: if instant gratification, short feedback loops and a constant need for reaffirmation is what you are looking for in a career then early stage VC investing will not fulfill you. Have fun building, and as Naval Ravikant once said: "𝙗𝙚 𝙖𝙣 𝙤𝙥𝙩𝙢𝙞𝙨𝙩𝙞𝙘 𝙘𝙤𝙣𝙩𝙧𝙖𝙧𝙞𝙖𝙣." Finally, and most importantly, be authentic and true to yourself. #firmbuilding #entrepreneurs #VC

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Does being a great VC = being a great manager ? Basically no.  Because the two are very different things.  (It’s not me, Kyle Harrison is saying so!) What's important for a VC can be summed up like that : "The two most important things are (1) performance, and (2) teamwork. But if you don't have number 1 then nothing else matters." Being a good VC is making the right investments to have a solid track record. The currency in VC is getting credit for getting deals done. This leaves little room for investors to train newcomers (ie. Associates/Analysts) because you don’t get recognition from that. So being a good manager isn’t valued as much as being a good investor. But problem is, building a solid track record is very different from building a long lasting investment firm, which can only be done by training associates and so being a good manager. David Haber compare the way VC are working with the way Chicago Bulls won championships in 1991-92 meaning winning on the back of 1 or 2 players (1 or 2 good investors) So the structural incentive rewards only deals getting done leaving on the side building a team that knows how to work together. Everything outside track record could be considered pointless. And that’s why VC can’t be considered as an apprenticeship business. But the the positive thing is, a lot of smart VC (ex: Sequoia Capital (US) or Serena (FR)) already know that training new generations is equally important as having a great track record if you want to survive on the long run. So remember as a VC, find great deals but don’t forget to find a great Associate that can succeed you ;) PS: I’m not going to say it but I could: Automate as much as possible to have time for your Associate. Many thanks to Kyle for this interesting piece! Link in comments 👇

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POV: VC who disappeared after the FTX crash convincing their portfolio companies to start meme-coins But on a serious note, most big captable projects I've spoken to say VCs barely communicated after investing, only showing up to claim tokens If you standup for nothing, you tolerate everything Stay informed! P.S - please share (if any) good stories on how VCs have helped you, curious to know #vcfunding #startups #founders

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Summary: Valar Ventures, a venture capital firm co-founded by Peter Thiel, has raised a smaller fund this year compared to previous years. Thiel's involvement in the firm is unclear and it is facing challenges in fundraising. Key takeaways: Valar Ventures has raised a $300 million fund, which is less than half of their previous fund. Thiel's involvement in the firm is uncertain as his name has not been listed on the website for many years. Other notable VC firms such as Tiger Global and Insight Partners have also faced challenges in fundraising. Counter arguments: Some funds backed by prominent names, such as ICONIQ Growth and Wells Fargo, have been successful in their latest fundraising efforts. LPs may be less interested in investing in Valar Ventures due to their previous missed investments and low returns. #venturecapital #startups #fundraising

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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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September 16 2024 – 5 Notable Articles To Read Article: Klarna-Backer Atomico Raises $1.24B to Spur Startup Growth in Europe Takeaway: A VC firm is set to allocate $754M for growth deals, with Atomico remaining focused on software and AI companies, as well as those in fintech and climate tech, according to Niklas Zennström. Source: Bloomberg Link: https://lnkd.in/dePx84Gn Article: New Hong Kong hedge fund secures support for bets on Japan market revival Takeaway: Hong Kong-based investment firm Sengu Capital is preparing to launch a new hedge fund aimed at capitalizing on the resurgence of Japan’s financial market, with a strategy centered on improvements in corporate management, according to a report by the The Japan Times. Source: Hedgeweek Link: https://lnkd.in/dTFR9WX6 Article: Bookkeeping startup finally grabs $200M as AI bolsters enterprise fintech Takeaway: The funding round consists of a $50M equity investment from PeakSpan Capital and a $150M credit facility from Encina Capital Partners, LLC, bringing the company's total funding to $305M. In February, the startup secured $10M from PeakSpan Capital and Active Capital. Prior to that, Finally raised $95M in a Series A round in March 2022. Source: PitchBook Link: https://lnkd.in/dnDfQEhA Article: VC market in Czech Republic is "getting more professional", says fintech boss Takeaway: The founder of Malcom Finance notes that the venture capital market in the Czech Republic is evolving, positioning the country as a hub for engineering and technical talent. Source: Tech.eu Link: https://lnkd.in/d6ZuJmCM Article: Middle East IPO Flurry Gathers Pace With $2 Billion Oman Deal Takeaway: Oil company OQ is set to list 25% of its exploration unit on the Muscat exchange, with the OQEP IPO expected to be the Gulf nation's largest as asset sales increase. Source: Bloomberg News Link: https://lnkd.in/d6khif_H #news #business #ai #research

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This is an excellent article (loong one, pls note) on a step by step guide to hitting PMF or product-market fit. Love how PostHog cofounder 🦔 james hawkins visualises PMF akin to a game, with 5 levels and how to jump levels. More relevant for B2B / SaaS founders than B2C given James' experience w Posthog. One quibble would be keeping the ICP definition process on Level 5, whereas it should be something that you freeze on with picking the problem (his Level 1) ideally. While James describes this as getting to PMF, in my #pmfplaybook this is actually PPF or product to problem fit. In my definition, PPF + MMF (GTM Motion to Market Fit) = PMF. Repeatable scaling post this stage (5 reference customers) via a scalable GTM playbook is what is truly PMF. But this is my opinion against his opinion + track record of building to $20m ARR. This is a truly masterful resource for iterating to PMF. Every B2B / SaaS founder starting out or an aspiring B2B / SaaS founder should eyeball / read this. https://lnkd.in/ghGhBn-v

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Summary: ShareChat, a popular social media startup in India, has seen its valuation plummet from $5 billion to $2 billion following a new funding round. The company has experienced a positive year, cutting expenses and doubling revenue, but has still faced a significant decrease in valuation. Key takeaways: ShareChat's investors, including Google and Tencent, have seen their debt convert to equity at a valuation below $2 billion in the latest funding round. Despite facing strong competition from Instagram and YouTube, ShareChat remains the largest standalone social media app in India and is focused on live-streaming as a differentiating factor. ShareChat has been able to reduce expenses and increase revenue through cost optimization and investment in AI talent. Counter arguments: Some may argue that ShareChat's decrease in valuation is a sign of potential challenges in the Indian market and the company's ability to sustain growth. There may also be concerns about ShareChat's reliance on monetizing through advertisements, particularly as the Indian government is considering stricter regulations for social media platforms. #valuations #tech #private

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Some people are wondering why I've been so outspoken on the proposed M&A shakeup which, in my opinion, risks putting a dampener on startups exits at a crucial time in the ecosystem's development. So I put my thoughts down for SmartCompany. Short version: after a decade of unbelievable growth in the ecosystem it's time for a comprehensive policy approach, one that will help support the next decades of growth in what will be a very different market. These M&A reg changes come off the back of changes/proposals around significant investor thresholds, superannuation taxes, RDTI and visas, amongst others, all of which can chip away at confidence, capital flow and incentives. We have a golden opportunity to really cement our place on the world stage, let's take it. cc. Rampersand

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Finding product-market fit (PMF) is one of the biggest challenges web3 founders face - and we often get asked how to navigate this journey. Recently, I revisited a classic a16z post on PMF and thought it would be a great opportunity to share four key strategies for founders looking to achieve it. 1️⃣ Focus on Network Effects (and Reward the 'Right Users') Network effects are crucial. In crypto, founders can leverage various token-based incentives to drive participation and kickstart growth. However, be cautious - relying solely on incentives without solving real issues for real users can inflate metrics, making it harder to learn from them and make the right decisions on your path toward PMF. 𝐓𝐢𝐩: Invest enough time in creating the right incentive mechanisms that drive real engagement from the 'right users', not just speculative interest. 2️⃣ Engage Your Community for Feedback Your power users - early adopters who have a deep understanding of both your product and the broader space - are crucial in shaping its development. Engage with them directly and observe industry trends on platforms like X and Farcaster. In early technology markets like crypto today, these users can help you refine your product. An example from the blog post highlights how, in the early days of cloud computing, fast-growing startups with unpredictable demands shaped product priorities, leading to innovations like auto-scaling services. 𝐓𝐢𝐩: Regularly engage with your most knowledgeable and active users to garner product feedback. 3️⃣ Build Strategic Partnerships Partnering with strong brands, projects or even individuals that resonate with your target audience can enhance credibility and visibility. Crypto's open-source nature also means that such partnerships can - and should - be leveraged to attract developers. 𝐓𝐢𝐩: Look for partnerships that not only expand your user base but also add credibility to your product. Additionally, consider leveraging partnerships to increase your visibility within the developer community and attract more talent. 4️⃣ Focus on Developers - Not Only Users Building on the previous strategy: By attracting more attention from developers, you can iterate on your product more quickly. The faster you can iterate, the faster you can refine your product and achieve PMF. 𝐓𝐢𝐩: Offer grants or bounties related to the development of your product. Furthermore, create a developer-friendly environment and strong incentives for contributions. — Needless to say, but the search for product-market fit is highly subjective and influenced by many factors that can't be covered in a single blog post. However, I think the insights from a16z offer founders a strong foundation to begin their journey toward achieving PMF. If you are a founder and want to dive deeper into this topic, feel free to read the blog post yourself (link in the comments) - or to reach out to Blockwall 🙏a16z crypto, Andreessen Horowitz #web3 #crypto

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Topic 8 | VC 101: Keeping complex things simple How to get involved in VC Do the job before you have the job There are countless articles and posts I have read hammering this idea. If you want to work in VC one day and don't have a direct relationship with one, start doing it on your own. We get tons of emails everyday and sending out a bunch of "intro request" emails will only get you so far. - Dig into the startup ecosystem in your city. - Do diligence on companies you find insightful or innovative. - Bring meaningful findings from your area of expertise. - Give the VCs a reason to want to talk to you. #vc #startups #breakingintovc #vctips #vc101 #simple

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Met an investor this week who told me he asks Seed stage founders he backs "Do you have any hobbies?" If they say "yes" — he doesn't invest. "THAT is the level of maniacal focus it takes to build something exceptional" Right or wrong, his absolute conviction in this being a predictor of success, made me chuckle. It's just a reminder that every investor has different turn-ons and turn-offs. As a founder, don't change your answer to make an investor happy. That's just going to make both you and your VC miserable over time. Just be you and focus on finding the investors that match your needs AND your vibe.

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I have seen many people talk about how VC is back on track but let’s be honest – this has been one of the toughest years for the VC-PE market. In fact, data from the last 5 years shows it's one of the worst. 50% of the funds are out there raising now, and they are having a hard time doing it. LPs are holding back, deals are slower, and many investors are struggling to close. It’s not just founders having a hard time - investors are feeling the pinch too. If you see a founder who survived this winter - kudos to them! The good news - It only gets better from here. This year has tested everyone. But I feel the ones who survive are going to crush it next year. (Link to the article is in comments)

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For all the talks of AI in VC to do scouting, selection, diligence, automation... Right now I just wished our LLMs could chase the last investors' signatures for me and review boring auditing correspondence. Good problems to have on a Monday I guess? 😴 😜 💪 #datadriven #venturecapital #deeptech #familyoffices #angelinvesting

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