Hans Kristian Furuseth

founders: this is a good summary of why VCs reject you, though keep in mind that stellaris isn't an early stage fund. that is, it's just fine if you haven't figured out everything in the early days. but by the time you are raising series A, you need to have clarity on many fronts- Just don't wait for everything to fall in place before you startup.

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A number of you have been there, investing your own hard-earned money or money under management from others. While once a company has reached a certain level of maturity, there are numbers to look at, which give part of the story, at early-stage, it's really down to assessing people. We all have gut instinct, which is good to use in particular when it does don't feel right, but it's also good to have some reference frameworks to use and practice on. Credit Chris and Ruben for this high-quality content.

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I turned down £10M in funding. Everyone called me crazy (perhaps I was) But I'd seen founders lose their companies to investors who: 👉 Changed the vision 👉 Forced quick exits 👉 Pushed growth over sustainability (Also, they wanted me to ditch my existing seed investors- I felt a responsibility and still do to the people who had faith in me and my vision) At The Brew , we chose bootstrapping. Yes, it meant: 👉 Slower growth 👉 Tighter budgets 👉 More stress But also: ✅ Full control ✅ Better decisions ✅ Sustainable growth Plot twist: We now help other founders avoid the same pressure by offering flexible office space without long-term commitments. 🚀 Sometimes, saying no to money means saying yes to your vision. What would you choose: Fast money or full control? #StartupAdvice #FundingAdvice #EntrepreneurshipJourney

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Without dismissing the issues raised, I think this is a bit simplistic way of looking at it. Rather than suggesting a ban, shouldn't we all learn to play the game? I don't agree that the best idea comes from far flung people merely because they experienced something - that may happen sometimes but statistically it comes from unique insight and professional exposure (and this is what accentuates the network bias) - to a large extent. I agree with Opeyemi 's submission that successful blacks should get in the game (but not just investing in blacks alone). The more representations you have higher up there the more diverse the allocation becomes. I don't think anyone is stopping blacks from becoming LPs, Angel Investors or starting funds.

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Should founders take advice from non-founder VCs? 🤔 As a founder, everyone (family, friends, the neighbors' dog 🐶 ) is constantly trying to give you advice - and especially your investors but, do you really have to listen to VCs who've never built a company themselves? On the one hand, VCs who were not founders often bring a wealth of industry experience. They analyzed hundreds of businesses from many sectors, and they see what works and what doesn't. For example, Benchmark's Peter Fenton is one of the world's top VCs, even though he's never founded a startup. His investments in companies like Twitter have shaped entire industries. Conversely, founders-turned-VCs are better able to understand the emotional side of running a business. At Vinthera, I speak with many GPs about this operational experience being a critical part of their USP to founders - the shared experience creates trust. So, should you take advice from someone who has never built a company before? Does their outside perspective bring value or is the founder's life experience more important? I'd love to hear your thoughts. What is your experience?👇

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Founders should be able to sell secondary whenever they’d like to do so. If you make something - and that thing is valuable - you should be able to sell it. Actually selling that secondary can be tricky. Let's go through the actual steps (or read the whole essay https://lnkd.in/eajr238N): 1. Get the term sheet. 2. Negotiate “normal” major terms: dollars in, price, board, etc. 3. Don’t forget about re-vesting. Founders often do. 4. Sign the term sheet. Go out and start figuring out allocations for the remaining dollars. 5. If you’re lucky enough to have more demand than you do space, you have the opportunity to sell some secondary. Figure out how much excess demand you have. 6. Talk to your lawyer and your accountant about what you want to do. Ask them to explain the pros and cons of selling secondary as common shares vs. preferred shares (which is a bit out of scope for this essay). 7. Decide how much secondary you want - ideally this is “reasonable,” which is a moving target. One good way to frame “reasonable” is to give a clear reason as to why you want to sell. This is particularly important in early rounds. Good reasons include: “Need to pay off student debt” and “Just had our first kid after years at below market salary.” Less good reasons include “Need a new Porsche” and “LinkedIn ghostwriter prices went up.” 8. Go to your new lead investor and say “Hey! Great news! We have 2x demand for available shares. It would mean quite a lot to me and my cofounder if we could take (insert reasonable amount here) off the table because (insert reasonable reason) here. Obviously as our lead, you get first access. Sound good?” 9. Work with the buyer to figure out if you are selling common shares or preferred shares. (a) If you are selling common shares, and the buyer is willing to buy these at the same price as preferred, great! Just make sure that you aren’t creating any challenges around voting by giving those shares to an outside party. Also, talk to your lawyer and accountant. (b) If you are selling preferred shares, go back to your lawyer and accountant to make sure you’re not creating any issues for yourself. You’ll also need to confirm with your existing investors that they are ok with you doing this because it will change the preference stack - which impacts them. 10. Triple check your numbers. 11. Complete your transaction and close the round.

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How to End a VC Pitch Meeting The end of a pitch meeting is as critical as the presentation itself. While many founders spend the bulk of their time perfecting the pitch, the last 10 minutes of the meeting require as much attention. Abruptly ending a meeting leaves investors uncertain or disengaged. A structured conclusion, however, can lead to a clear path forward. Here are three objectives every founder should aim to achieve when wrapping up a VC meeting: Define a Clear Next Step Never leave a meeting without defining the next step. Investors have multiple demands on their time. Without a defined follow-up, your pitch will get lost in the shuffle. Ask directly when the VC’s internal meeting will take place. If they say their investment team meets on Wednesdays, say, “Great, I’ll follow up with you on Thursday.” This tactic demonstrates initiative and keeps the momentum going. If the VC hesitates to define a next step, it’s a red flag. It indicates they aren’t interested in moving forward. Don’t waste time chasing uninterested investors—focus your energy on those who show commitment. Guide Their Evaluation Process Most VCs won’t know how to evaluate your company. It’s your job to guide them. Highlight the metrics that matter in your industry and set the framework for how they should assess your business. For example, you might say, “Retention is a key indicator of our success. Have a look at industry benchmarks and see how our numbers compare.” Or, “To understand our customers' pain points, I recommend speaking with players in this particular segment of the ecosystem.” If you have a supportive paying customer or an industry expert contact, feel free to suggest a reference call. By giving them a roadmap for evaluation, you help the VC align their assessment with the most critical factors that reflect your company’s potential. Set Terms for Further Information Exchange If the VC requests documents you didn’t cover in the meeting—such as a financial plan—this is a chance to secure another engagement. For example, you can say, “I’ll provide the pitch deck we just covered, and let’s schedule a time to go through the detailed financial plan.” This keeps the dialogue active and ensures that further engagement is tied to your next move. It’s not just about sharing data—it’s about maintaining engagement and moving toward the next step in the process. Each piece of information you provide should act as a bridge to further discussions. Ending with Control The key to ending a VC pitch meeting is to maintain control of the process. Defining a clear next step, guiding the evaluation process, and negotiating further engagement are all critical components of a successful close. By managing these elements, you ensure that the conversation doesn't fizzle out but instead continues to progress. Reserve the final 10 minutes of your meeting to wrap up effectively—because how you end the meeting might just determine whether or not you secure the investment.

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While I had bookmarked this article long ago, I happened to have read it very recently and a few conversations with #startup #founders, I realized how things are changing quickly for #dynamic #pricing. As everyone knows, Delta Air Lines was the first to build this dynamic pricing #system for #aviation and airlines; it was Uber who made it famous globally by showing how #prices changed when #demand peaked. They called it #surge pricing. But this doesn't stop only to #airlines, #hotels, or other # transportation or seasonal businesses. it seems to be flowing to other sectors as well Also, a few lessons for #startups on taking advantage of this system. 💡 Dynamic Pricing: The Next Big Opportunity for Startups Dynamic pricing is transforming the startup ecosystem, becoming a game-changer across various industries. This innovative strategy, which adjusts prices in real-time based on demand and other factors, is unlocking new revenue streams and enhancing profitability. ✨ Spotlight on Success: ➡️ Fetcherr: This groundbreaking startup helps airlines automatically adjust ticket prices using advanced algorithms. Fetcherr's platform has boosted airline revenues by 9% and recently secured $90 million in funding, showcasing investor confidence. ➡️ Fast Food & Bars: Wendy’s plans to test dynamic pricing from 2025. In the UK, some bar chains are considering raising beer prices during peak hours to better manage demand. ➡️ Railways: Startups like Seatfrog are revolutionizing the railway sector by offering auctions for ticket upgrades, optimizing pricing based on real-time demand. 🚀 Future Horizons: Dynamic pricing is poised to impact various sectors, especially those with fluctuating demand and limited supply like repair services, medical appointments, and dry cleaning. 🔑 Strategies for Startups 1. Identify niche markets where dynamic pricing can add substantial value. 2. Combine dynamic pricing with subscription models to boost customer loyalty. 3. Develop robust, advanced algorithms and ensure seamless system integration. 4. Prepare for rapid scalability to meet market demands. 5. Learn from pioneers and tailor unique approaches to specific market needs. The rise of dynamic pricing is more than a trend—it's becoming a new market reality. Startups that can deliver effective, innovative solutions stand to gain significant advantages. Let's embrace this opportunity to innovate and lead the way in dynamic pricing. Stay informed about market developments, technological advancements, and changing consumer attitudes. Those who navigate these challenges successfully will be at the forefront of a major shift in pricing strategies across industries. #DynamicPricing #StartupInnovation #TechTrends #BusinessGrowth #FutureOfPricing #Entrepreneurship #Innovation Thank you, Whizy K. and Vox, for putting this informative piece together

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Fundraising Realities The Bar Is High, and Here's Why Even in a year when my fund was closing 20+ deals, I personally only invested in 1-2 startups annually. Smaller VC teams?  They might only do 3-5 deals per year or skip investing altogether for months. This is why fundraising is so challenging.  You’re not just competing with other startups.  You’re competing to be the best founder an investor has seen in the past 6+ months. There’s no room for winging it.  You have to consistently prove you’re the top choice  - Across multiple months.  - Across multiple pitches.  - Across multiple rounds. 🔑 So, how do you become the one investors say yes to?  It’s not luck it’s systems. Here’s how to build one:  1️⃣ Get Introduced by Trusted Connections  The best way to stand out is to be vouched for by someone the investor already respects. Relationships matter. 2️⃣ Craft a Narrative That Makes You Unforgettable  Investors hear dozens of pitches every week. What makes you different? Highlight your expertise, vision, and traction with clarity and confidence. 3️⃣ Run a Process That Shows You’re Exceptional  Investors aren’t just assessing your startup they’re assessing you. A disciplined, transparent, and well-organized fundraising process sets you apart. 🚀 Fundraising isn’t just about asking for capital’s about showing why you’re a founder worth betting on. Great outcomes are built on great systems that make yours count.

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🆕 Validate Your Startup Idea in 30 Days Validation and fundraising are probably the two topics I talk about most. The latter is because that's what everyone asks about and the former is because I think it's the thing most early stage founders get wrong. To help, as a follow up to our last event on validation (our most popular event ever with 170+ registrations), we'll be hosting a 2 week program from 17 to 28 June on validation that goes into more depth. 👨🏻‍🏫 What You'll Learn 1. Create Feedback Loops – How to use our methodology to create feedback loops that will generative insights on your users. 2. Real World Examples – I'll share real world examples from startups that I've worked on. 3. Avoid Common Mistakes – I'll share common mistakes from my own experience and having worked with 100+ startups in SEA. 📋 How it Works 1. Weekly Emails – Each Monday, you’ll receive an email with links to our comprehensive validation course materials. 2. Self-Paced Learning – Dive into the materials at your own pace throughout the week. We recommend engaging with the content for 1-2 hours per week. 3. Live Office Hours – Each Thursday, join me live to ask questions, discuss the materials, and get deeper insights. 🙋 Who This is For 1. Just an Idea – If you have an idea and wondering whether you should work on it full-time. You should sign-up. We'll help you figure out whether you should take the plunge. 2. Recently Started – If you recently started working on your idea full-time. You should sign-up. We'll help you figure out who wants what you're building. 3. Everyone Else – If you’re none of the above, this course will probably still be useful. The principles for validation are the foundations to think about growth. So basically, you should sign-up. Look for the 📌 in the comments.

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I'm speaking at SuperVenture 2024 on the 5th of June in Berlin. The topic of the panel is emerging VC managers: time to shine or out of their depth? Are LPs fleeing to established names and those that cut their teeth during previous cycles? Or is now the time for emerging managers to bring something different to the table? Is volatility leading to true innovation and disruption? We’re on track to see approximately 44% of the total LP capital committed to US VC funds since the start of the year go to just two large established VC platforms, according to PitchBook data. While many established VCs maintain their allure, there is a subset of LPs who are making a deliberate choice to increase their allocations to specialist emerging VC managers - managers who have spun out from established funds and have an attributable track record, founders with deep operational experience turned funders or academics with deep domain expertise. There is non-trivial added complexity when it comes to emerging VC selection – given the large number of funds needed to be screened and the more complicated referencing and DD process. Data highlights how important it is for GPs to identify & back ‘big winners’ early on to drive fund returns. Typically, ~5% of invested capital in a few winners drives most of the return (>50%). The VC model is built around investing in early-stage companies each with the potential to more than return the whole fund. Who has the right to win? Who will the best founders (and LPs) decide to partner with? #SuperVenture #VC SuperReturn

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Excited to share what I learned from Sandro Stark, founding partner at Vanagon Ventures backing FrontierTech from Munich/DACH 🚀 to the World at the YUVC video podcast (links in comments) 💡 Above all, Sandro is a super nice person to get along with and has a great NPS from founders 👋 Here 3 Core Takeaways ✨ 1. Vanagon’s approach to startup evaluation 👀 - Distribution capability is now the key differentiator, not just technical innovation - Customer "stickiness" and deep industry understanding - The solution must demonstrate both climate impact and profit potential 2. Why is Munich's ecosystem strategic? 🇩🇪 - Part of DACH region - third-largest market globally after China and US - Rich concentration of technical talent and corporate headquarters - Untapped potential in Mittelstand venture engagement 3. What's the philosophy behind sustainable success? 😉 - Don't postpone happiness for future achievements - True leadership creates more leaders, not followers - Consistent effort matters more than breakthrough moments Now listen in for more insights! ❤ Kudos to his great co-founders/GPs @Vanagon: Susanne Fromm Axel Roitzsch Shoutout to their amazing portfolios: Senken Particula Renoster youba The Landbanking Group LoopID heartstocks Learn.xyz ExoMatter and more

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The highest valuation in a financing round might be attractive but often it is not the option you should chose. Because it will hurt you later. 1.) With an established valuation you also create an expectation for the exit price. E.g. if you raise at 50m you need to build a 500m company - ask yourself how feasible that is in your industry with your model 2.) The highest bidder might not be the best fit for you in terms of know-how and/or on a personal level. Given you will be "married" to your investor for a longer period of time a 100% match is important. 3.) Often raising at a more aggressive valuation takes longer, so you will put the money to work later than with a less competitive but faster round. It is worth asking yourself if some or maybe all of the additional dilution of a lower priced round will be offset by putting the money to work earlier and spending less time on fundraising. 4.) The high price might come with additional asks that can hurt you later 2x liq pref, additional guarantees.... So don't raise the price at all cost

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Quick-commerce startup Flink raises another $150M at a valuation of nearly $1B Berlin-based quick-commerce startup Flink is moving forward independently with a fresh capital boost, raising $150 million in a new funding round. The company, previously courted by major players like Gorillas, Getir, Amazon, and Gopuff, is now focused on strengthening its presence in Germany and the Netherlands, in partnership with Just Eat Takeaway. This latest funding round comprises $115 million in equity and $35 million in debt, backed by a mix of new and existing investors, including BOND, Mubadala, Northzone, and REWE, a German supermarket giant. Flink has also attracted support from two undisclosed investors, though there’s speculation that Just Eat Takeaway.com could be among them, given the companies’ new “preferred partnership.” “This investment will enable us to further expand our footprint, improve operational efficiency, and continue delivering the fast, reliable service that our customers rely on,” said Oliver Merkel, Flink’s founder and managing director, in a statement. Flink did not disclose its current valuation, but sources close to the company indicate it is now just under $1 billion. This marks a significant drop from its previous heights when Flink was valued at nearly $3 billion following an investment from DoorDash in late 2021, and later reached close to $5 billion in early 2022. However, in the wake of the quick-commerce sector's cooling, Flink is now undergoing a strategic recapitalization. Earlier this year, Flink was rumored to have raised $106 million while exploring potential acquisition offers from Getir or Just Eat Takeaway. While Getir has since scaled back significantly, Just Eat Takeaway appears to have remained involved, leading to today’s new funding deal. The company forecasts gross revenues of $600 million in 2024 from these two markets, up 20% from 2023. Flink claims to have achieved breakeven EBITDA in both Germany and the Netherlands and is targeting overall profitability by the second quarter of 2025. Its average order value has reached $40, with plans to expand further by opening 30 new locations across the two countries over the next year. With 146 operational hubs across 80 cities and a workforce of 8,900 employees, Flink is looking to fortify its business in Europe’s quick-commerce space. While the broader market faces ongoing challenges, Flink’s strategic focus on solidifying its core markets could be key to its survival and long-term success. Stay ahead with the latest in food delivery news from the weekly Boolanga Bites newsletter, brought to you by Boolanga Business. Sign up for our LinkedIn newsletter now to receive weekly updates directly to your inbox every Monday.

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Raise Millions: The guide to fundraising for first-time founders What’s inside the book - Chapter 1: how the fundraising process actually works - Chapter 2: the essential ingredients of a killer pitch deck - Chapter 3: building relationships with investors - Chapter 4: how to pitch to investors - Chapter 5: steps to take once an investor verbally commits Bonus resources: email scripts, templates, and a cheat sheet of our entire book This book is educational and actionable. You’ll learn everything you need to know to fundraise from the pre-seed stage all the way to your Series A. #scalerbee #startup #india #startups #investments #funding #fundraising #venturecapitalist #venturecapital #scale #pitchdeck #business #ai #generativeai #entrepreneures #entrepreneurship #scalingbusinesses #angelinvestors #angelinvesting #fund #founders #businessmodels #pitching #pitch #pitchdecks #investing #investors #investindia #investorcommunity #founderjourney #fundraise #vc

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There is no doubt that the fundraising environment in 2024 is tougher than previous years. This is partly due to the pre-seed and seed funding goalposts moving under the feet of founders without much notice or public announcement. So, how does one achieve the milestones needed to raise venture funding if the capital to achieve those milestones is not as readily available? ➡ Scroll through the carousel to discover our "lean startup" playbook to cheaply get you to a place where funding is more plentiful and easier to secure. ---- ♻ Repost to help founders in and out of your network! If you want to delve deeper into tactics to reverse engineer the venture capital investment decision, you'll find our newsletter helpful. Click the "try our free newsletter" in the bio to sign up.

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First time founders always ask what revenue number they need to get to in order to raise their pre-seed or seed round because getting to a certain revenue number feels like a controllable and measurable KPI. The reality is, it's not that simple. I would instead encourage founders to think about what they need to prove in order for a VC to feel confident they can get to the next round. Newer funds and new partners at bigger funds are measured short term by how many of their companies raise follow on capital and/or are seeing good revenue growth since they invested. Obviously investors need to believe in the team and the market opportunity, but many are also thinking about it through the lens of how confident they are that you will be able to get to that next round. Whether you have $100K or $200K or $300K of ARR doesn't necessarily matter. What matters is how did you get that revenue and are there any early signs that it is repeatable; is there ACV growth potential within your existing customer base and do you understand how to unlock it; is the pipeline growing such that there is a clear line of sight to revenue growth over the next 12 months; is the ACV commensurate with how long the sales cycles are or will be; etc. It's much more nuanced than a specific revenue number. Make sure to talk about your traction in a way that helps to prove some of these things out.

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You might disagree with me but: Having your partner as a co-founder is great. I talked to Vivien Bresson about this a while back on my podcast. Vivien and her husband have co-founded multiple companies. They love building startups together. I got some mixed reactions on this topic after releasing the podcast. Some people said they couldn’t imagine working with their partners. Mixing personal and business seems like a no-go to them. But in my personal experience, working with your partner is great. When I met my wife in Toronto, she was a beauty technician at a Korean Beauty Salon. Her clients loved her and always had ideas on improving the business, but the owner always objected. She was frustrated. I hated seeing her initiatives constantly being shot down and wanted her to be free to implement her vision. So we did our own thing. She quit her job and we set up her own beauty salon. We thought out the entire game plan on a month-long trip to Ko Pha Ngan island in Thailand. It was pretty simple: • She keeps doing what she does best: Making clients happy. • I run some digital marketing and operations in the background. We came back to Canada and got to work - and it was a mega success. She grew it from a small salon with three staff to having two locations and 12 full-time employees. • Top rated on Google. • Clients were raving about it. • Both salons were constantly packed. This isn’t supposed to be a brag about how good we are at building beauty salons. (even though we are.) It’s a reminder that building a business with your partner can be extremely fulfilling, while it might be a relationship test at times. 2 weeks ago, we visited Ko Pha Ngan island again to reminisce about the time we planned out the business together. There’s something about that island that gets us thinking about business and let’s just say - there might be something else in the works. Stay tuned…

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Dilution: from pre-seed to series D, every founder worries about it. But there’s a simple yet smart strategy to manage it. The general rule of thumb I recommend is this: try to limit equity sold to no more than 20-25% in any single fundraising round. Then make sure you build significant value between rounds, because that’s the best way to avoid excessive dilution over time. What I recommend certainly isn’t the only viable approach, of course. If you want more control, have confidence in your entrepreneurial skillset to come up with a different formula. Don’t be scared if accounting isn’t your superpower: apply your technical skills to basic management accounting. Create your own financial model. Map out equity structures (don’t forget that ESOP!), project your growth, and estimate your company’s future value. That’s the extent of what you need to do, though following that advice I gave above about making sure you build significant value between rounds is probably a good idea, too. Overthinking dilution math is the real foe you have to slay here. If you present the people you’re pitching to with something that’s convoluted and unrealistic, you’re basically waving a big red flag right in their faces. #entrepreneurship #startups #fundraising

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