Patrick Walsh

What's been happening in Mental Health innovation this week? ⭕ Virtual Therapeutics and Akili announce a merger. Akili were in big trouble, losing about $10m a quarter after failing to generate revenue for their digital therapeutics products. ⭕ Seven Starling, a maternal mental healthcare startup, raises $12.6m ⭕ Irish startup Spectrum.Life raises €17m in a round led by Act Venture Capital ⭕ Orygen receives an additional $6.4m of funding from the Victorian Sate Goverment for their youth digital mental health service MOST ⭕ Workplace wellbeing provider Habit Health is acquired by Five V Capital for over $200m ⭕ Optum acquires outpatient mental health providers Refresh Mental Health and CARE Counseling ⭕ Acadia Healthcare appoints Nasser Khan, MD as COO to expand their comprehensive treatment centres, grow their outpatient segment and improve quality of clinical care __ Want more insights and trends on mental health innovation? Feel free to follow myself and The Hemingway Report.

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This week, Phuong Ireland and I dive into one of the most crucial yet often perplexing aspects of startup formation: cap table construction and equity distribution. If you're setting up a startup or restructuring your cap table, this conversation is a must-listen. We discuss the essentials of how to navigate structuring equity so that the cap table aligns with industry norms, aiming to attract investors while motivating founders and early employees. From understanding equity splits among co-founders to planning an option pool for future hires, we cover actionable insights that can help founders avoid common pitfalls. This is a tough topic for new entrepreneurs. Hopefully this episode can help folks build a balanced and adaptable ownership structure that supports growth and long-term success. https://lnkd.in/emWEer9B

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Peter Costello established the Future Fund in 2006 & is still its current Chairman 🤨 It’s almost poetic, really. Public funds, designed for the people, yet swirling down the drain of mate-conomics. You couldn’t write this stuff if you tried, or at least you couldn’t write it & call it “good governance.” Let’s stitch it all together & have a look at the fine embroidery of government spending. The Art of “Separate” But Together So, we’ve got funds for disabilitycare & funds for government retirement pensions— sitting in the same buckets! They’re being managed side-by-side, with DCAF & the Future Fund practically holding hands. & the pension fund seems to get first dibs, while those NDIS funds are left to grow in a “safe, future-proof” way, which is code for, “We’ll think about it tomorrow.” nothing like today’s tax dollars fueling tomorrow’s excuses. Investing in Mates, But For “Public Good,” Obviously Then there’s this laughable “merit-based” selection when funds go to private contracts. Isn’t it funny how the same companies—those founded by former government advisers, no less—keep winning these “merit-based” contracts? If the metric is who’s got the most buddies in high places, then, sure, that’s the best value taxpayer dollars can buy. The public thinks it’s paying for services, but maybe it’s actually paying for one giant networking event. Accountability – Just a Fancy Word on a Brochure? So we ask, “Where’s the oversight?” & they throw around words like “transparency” as if saying it makes it true. They’ve got layers of red tape ready to trip anyone who dares ask for details. Who audits this spending? Why, those who signed off on it, of course! A bit like asking the fox if he’s doing a good job managing the henhouse. But hey, trust them—it’s all above board… except for the part where no one can actually see the board. Public Benefit or PR Exercise? Contracts are supposedly in the “public interest,” yet the only public consistently benefiting are the executives cashing in & here’s the kicker when questioned, they paint any critique as an attack on their noble mission. “This is for the people,” they cry, as the funds get funneled into the pockets of well-connected companies. If this is about public good, then why do the only people benefiting seem to have access to the boardroom? Locked Funds & Open Wallets NDIS funds are locked, growing in the background, while government pensions are fully secure & it’s managed by the same board that values “growth” over accessibility. So who’s really benefiting? The vulnerable waiting on promises, or the public sector officials who can count on their retirement fund? Maybe we’re funding more government perks than public services. Here we are, stuck in a system where disability support is kept waiting, government buddies get the cash flow, and “merit” is the punchline. So, the question is, if this is what accountability looks like, what does it say about whose interests are actually being served?

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Survival of the Fittest in a Shifting Funding Landscape Founders are adopting a low-key approach, focusing their energy on internal growth. Armed with capital secured in 2021, many are strategically revitalising their businesses. But the big question remains: What will the dealmaking landscape look like in 2024? "Overall, capital infusion will be concentrated on a narrower spectrum of companies than in all. The private capital raising landscape is anticipated to be robust, showcasing significant improvement from 2022. However, the capital infusion will be concentrated on a narrower spectrum of companies compared to the prolific scene of 2021." Read More: https://lnkd.in/d3536qvA In the meantime, share your thoughts! Are you a founder facing a funding crunch? How are you adapting your strategy? #StartupFunding #Founders #Growth #DealMaking #SibaPanda

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This month marks my 10 year anniversary in Venture, and what a ten years it has been 🎉 🤩 First stop: JamJar Investments Rewind 10 years and you’ll find me sitting at my desk at JamJar, operating under the alias of “Bread”, working my way through an inbox full of 1000 cold inbound pitch decks, reviewing and replying to every single one. Highlights included a hand drawn picture of a new ketchup sachet design with “target market: Nandos” written below it, and a concept for a drink that tasted like the leftover milk at the bottom of a cereal bowl. But there were also some diamonds in the rough, and it was here that I got my first experience of that lightbulb moment when you meet an exceptional founder that you want to back, making my first investment a few months in. JamJar was the best training ground I could have hoped for, and I'm so grateful to Katie Marrache and Adam Balon, Richard Reed & Jonathan Wright for welcoming me into the team. Second stop: Venrex In 2015, I joined Mark & Tom at Venrex alongside Pooja Patel. We clicked as a team immediately, and over the ensuing years launched 7 new funds, grew the portfolio to 180+ companies, built a brilliant team, moved from a small attic in West London to panoramic views in Fitzrovia, and had a lot of fun along the way. As well as the buzz of discovering new founders to back, I also discovered my love for supporting founders post-investment. With 11 board roles and a further 16 portfolio companies to support, the ex-strategy consultant in me had just enough to get my teeth into. Venrex’s people-centric and pragmatic approach to investing chimed with my own instincts about the type of investor I wanted to be. They gave me the most incredible platform to grow as an investor and roll up my sleeves with all of the operational sides of running a venture fund. To the entire Venrex team, new and old, thank you for an amazing chapter. Third stop: Circle & Co In June, I left Venrex to launch my own Venture fund, Circle & Co, which is on track for its first close next month. It's by total chance that this milestone falls on my 10th anniversary in venture, but what an incredible way to kick off the next decade. More details on the fund to follow, but for the moment I want to thank the amazing network of friends, fellow VCs, founders, LPs and family who have got me this far. You are the original Circle, and have been the inspiration & driving force behind this next step. Let's make it a good one.

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As investment flows continue to drive growth in tech and innovation, startups in Ireland 🇮🇪 and the UK are seizing the opportunity to scale, innovate, and disrupt. From AI-driven diagnostic solutions to platforms reimagining corporate interactions and offshore energy innovations, the startup ecosystem is humming with fresh funding and new milestones. Here are some standout deals this month that signal the ongoing strength and potential of startup and scale-up ventures. Needi Investment: £1.4 million Investors: Clarendon Fund Managers, Techstart Ventures LLP Ventures, several angels What they do: needi is a Manchester-based startup redefining corporate gifting by connecting businesses to unique, sustainable products from local suppliers. Founders: Louise Doyle and Steph Scholes Ooodles Investment: €2.5m Investors: āltitude, UK family office Traditum Private Investment Office What they do: Ooodles offers tech leasing solutions to SMEs, allowing them to access the latest tech equipment without significant upfront costs. This latest round is to help expand flexible tech leasing for Irish SMEs Founders: Leonardo Poggiali and Kannan Reghu Gazelle Wind Power Limited Investment: €11.4 million Investors: Indico Capital Partners, DST Global, August One, Wah Kwong, and E2IN2, among others. What they do: Irish based Gazelle Wind Power is developing next-generation floating offshore wind platform technology. Founder: Jon Salazar iFAST Diagnostics Investment: £5 million Investors: KHP Ventures, QantX, UKI2S (managed by Future Planet Capital), Kadmos Capital Ltd, EInk, Raw Ventures, OKG Capital, and angels What they do: iFast Diagnostics has developed technology to determine the most effective antibiotics for different bacteria. Founders: Toby King, Hywel Morgan and @Daniel Spencer RESEARCH GRID Investment: £5 million Investors: Fuel Ventures 🚀, Arve Capital, Ada Ventures, Morgan Stanley Inclusive Venture Lab, Arāya Ventures, Ascension, Plug and Play Ventures, and Atomico What they do: Research Grid is an AI/health tech company focused on improving research processes. Founder: Dr Amber Michelle Hill Paloma Health Investment: €2.3 million Investors: TriplePoint Capital and James Allgrove Company: Paloma Health aims to reduce the long waiting times for children's autism assessments by utilising technology and artificial intelligence to cut the diagnosis time from over two years to just four weeks. Founder: Guillaume ("G") Cohen-Skalli

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#Manchester based past SkilledUp Life tech startup customer Cytix raises £1.6 million Seed investment from Manchester based Praetura Ventures founded by David Foreman. Michael Rees well done. Limited Partner (LP) in this case is Northern Powerhouse Fund II operated by British Business Bank British Business Bank North of England Delyth Lloyd Edwards. Simon Cunnington SkilledUp Life helped Thomas Ballin and the team during the earliest stages of the tech startup when they were self-funded and bootstrapping. I also had the pleasure to mingle with Ben Armstrong at Techcelerate when they were just starting up and trying to build the first version of the product. Both Ben and Thomas stood up as a strong pair of co-founders. They came from the same industry, worked for the same boss and knew the market inside out. They knew how to innovate the market and slice a portion of the market for themselves. They also had a superb unfair advantage in addition to above. The pair was perfect to start a tech product company. Let me explain why. When you talk about building tech startups, especially at the very earliest stages, you need to two people: - Some one who can code and build - Thomas Ballin - Some one who can sell - Ben Armstrong Having been in the tech startup world for 20 years, I rarely see this ideal combination. I knew they would go places. And they had. A massive congratulations from me to Thomas, Ben and the team. My only regret was I could not convince them to join Techcelerate. 😁 Here's the story https://lnkd.in/ec7VzXp2 covered by Deal Lite. Here's the story about Pre-Seed round https://lnkd.in/eR4UQ9fi I look forward to reading the story about Series A investment not too long in the near future. Congrats all. A good day for #Manchester! 🥂 Oh, by the way, we have a ton of #cybersecurity volunteers on https://skilledup.life Here is a bunch of Manchester tech startups who are leveraging SkilledUp Life as they self-fund and bootstrap their businesses in the early stage. These companies are cash-efficient and understand how hard the journey is: - Dustid run by Michael Livingstone - Orakly run by Craig A. Taylor - also a Techcelerate member - mutuals run by eddy D. SkilledUp Life de-risked Cytix over 20 months period. SkilledUp Life is here to give a leg up to tech startups in early years. #Cytix #Cybersecurity #Manchester #TechManchester #SkilledUpLife

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I couldn’t be prouder to be a Venture Partner at Isomer Capital (aka the best European FoF - at least for me) as we just announced the launch of our pioneering £100m secondaries fund. This fund is dedicated to acquiring stakes from LPs in various VC funds, tapping into a massive and largely unexplored market. 🌟 Key Highlights: - Focused Investment: Primarily targeting stakes in VC funds, with selective investments in private companies. - Robust Funding: Already over 20% funded, thanks to strong support from Nordic family offices and a German foundation. - Market Potential: With a growing number of private tech companies and a VC liquidity crunch, Europe's VC secondaries market is poised for rapid growth. - Track Record: This isn’t Isomer’s first foray into the secondaries market. As a firm we’ve done several secondaries deals with portfolio companies and VC firms, including early-stage VC Seedcamp (in 2021) and mobility giant Bolt (in 2023). - Expert Team: Welcoming the amazing Omolade (Rachel) A., formerly of Coller Capital, as a principal to lead this initiative. 💡 Investment Strategy: - 65-75% of the fund will buy "LP interest" stakes in VC funds. - 15-25% will be directed towards stakes in companies. - Up to 15% reserved for flexible investment opportunities. 📈 Looking Ahead: We're targeting returns of 2-3x, with significant distributions expected in the next 4-7 years. As one of the few players in this space, we're not just participating in the market—we're driving it forward. Read all about it here: https://lnkd.in/dc7sbC3G #VentureCapital #SecondariesFund #EuropeanVC

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Jack Dorsey has left the Bluesky board, reflecting on his regret over the sale of Twitter. This pivotal moment highlights the ever-evolving landscape of social media and tech leadership. As the founder of two influential platforms, Dorsey's journey is a testament to the complexities and challenges of the tech industry. His departure from Bluesky raises questions about the future direction of decentralized social media and the impact of leadership changes. Dive into the full story and explore what this means for the tech world. https://lnkd.in/gGHU_T-3 #TechLeadership #JackDorsey #Bluesky #Twitter #TechSherpa #SocialMedia #AIInnovation #FutureTech #Entrepreneurship

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🚨 Funding Alert: It's the last day of October, and 2024 is slipping away faster than you think... You know it, I know it – the funding world moves at LIGHTNING speed ⚡️ Timing is everything, and opportunities vanish in the blink of an eye. If you're aiming to land a funding deal before year's end, we've got your back! 💪 At Magdalena Reith, we're offering a special Q4 deal: Book a pitch deck package before November 15th and get a FREE one-pager 🎁 Your strategic conversation starter that turns "Maybe later" into "Let's talk!" Looking to finish Q4 strong and slingshot your startup into 2025? Here's what you get in our Q4 Power Package: 🎯 Expert guidance  🎁 FREE one-pager  💼 Professional pitch deck  ⏰ Priority completion (optional) Reach out via DM or drop a comment below to learn more and lock in your package before November 15th! #StartupFunding #PitchDecks #Startups

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Are you an early-stage company looking for Pre-Seed - Seed funding? ⬇️⬇️ - We cater to startups looking for investment ranging from £150k - £10m, specifically within the UK/EU. - Our investor network is eager to delve into diverse sectors, maintaining an open approach to ALL industries. - Commercial traction is advantageous - Particular interest lies in sectors such as: • SaaS • Fintech • Marketplaces & Platforms • Computer Vision & NLP • Enterprise Technology • Industrial Automation • The Transition to Sustainable Energy • Artificial Intelligence (AI) & Data Analytics • Software Development Tools Register at FundMyPitch.com and add your pitch today to link up with our wide-ranging network of investors. #fundraising #angelinvesting #startups 🤝 Know a startup on the lookout for investment? Help spread the word

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Today we have a superb episode with an absolute legend, Alan Patricof, Co-Founder of Primetime Partners, Greycroft, and Apax Partners. It’s hard to explain just how important Alan has been for tech and VC. He’s one of the true pioneers in venture capital worldwide, having started his first VC firm in the 1970s, Alan Patricof and Associates, which later became Apax Partners and currently has over ~$80Bn AUM. Alan is an inspiring figure, not only because of his success in the business world but also because of his vitality and contagious optimism. He joined us a day after his 90th birthday and candidly, he had more energy than most people I know. We recorded live on stage at Rise, created by Barclays in NYC for the 2024 Gilgamesh Ventures Summit, an annual meeting where we gather over 150 limited partners, founders, investors, and friends for a series of events and discussions about the future of tech and financial services. In this episode, we discuss: - The early days of Venture Capital and Tech in the 1970s and beyond - Alan grew up in NYC and built his career in NY – how was the city back then? - Building primetime partners to invest in the fastest growing market, people over 60 - Staying healthy. How Alan keeps fit, focused and is closing deals at 90 Years Old - Why your reputation is all that matters in this business… and a lot more! Special thanks to Morgan Borer, Jessica Schaefer, Carlee Snyder, Courtney Dawson, and Carina Oriel! https://bit.ly/4g1HNMU

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Right now, I'm wide awake, since I just landed from the Bay Area a few hours ago. And so here I am, catching up on LinkedIn notifications from the past week. Right up there and lighting it all up, is Noggin HQ with news of further support for their mission! https://lnkd.in/dSmcpme8 I met Evangeline A. & Laura Mills back in 2022 through Hannah Leach. And have been supporting them since. Admittedly I was concerned on how they were going to take on the likes of Experian. But that was put aside once hearing their passion, grit and emphathy for the challenge space, having themselves (and their friends) facing the blockers to even get a mobile phone contract, and seeing their vision for a product and service that can offer people transparency, choice and control of their data. Noggin is for anyone who has ever faced closed doors due to your credit score. It is the next-generation Credit Reference Agency. Outdated credit scoring practices mean millions are unfairly excluded from accessing products they need (often with no explanation). And you’ll be unsurprised to hear, it’s historically disadvantaged groups who suffer most. Noggin will facilitate fairer and more efficient decision making enabling lenders to sell responsibly and profitably to the 40% of young people who are unnecessarily rejected when applying for credit. Bonus points awarded for all this being built in the North East of the country. Not to mention it always being nice when joined by friends, in this case: Dama Sathianathan, Edwina Johnson, Andrea Sinclair, Thish Nadesan, Amrit Sami, Sarah Touzani and others...

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Q4 and here at VenturePath we are busy advocating for a connected venture ecosystem to better support scaling founders. As a member of VenturePath, founders don’t just gain access to fundraising support - they become part of an ecosystem that works together to achieve success. So how are we creating this connectivity? By organising a curated community designed to specifically support scaling UK founders. VenturePath founders are linked with a network of fellow venture-backed founders, peer-referred scale-up experts, successfully exited entrepreneurs, strategic partners, and a £7bn VC network all active between Series A-B. Why does this matter? Scaling a business is challenging on most levels, absorbs almost all of your time. By bringing together the key stakeholders that support founders, we’ve created cohesive, 360° support to cut through the noise and support founders at every stage of scaling their business. Our ecosystem members are grouped as: → Fellow Founders: Founders at similar stages share experiences and challenges, offering invaluable peer support. → Scaleup Experts: Domain specialists, vouched for by fellow founders, are available to provide targeted advice and insights. → Exited Entrepreneurs: Recently exited founders share their journeys and lessons learned through engaging content and events. → VC Network: Access to Series A and B funds offers founders early, informal feedback, fostering open dialogue before formal pitches. → Strategic Partners: Trusted partners provide optional support, helping founders navigate the complexities of scaling their businesses. We believe these are all necessary parts of the journey as you scale with venture backing. We've applied our experience to make these elements readily available and heavily curated. Is this the edge you need to scale your business?

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Very much looking forward to talking to founders that are enabling enterprises to get their data ready for AI consumption. Sign up below!

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Since our US launch last Christmas we: 🇺🇲 Currently have HUNDREDS of US members 📈 Operating at $600k ARR So how did we get there? Well there’s two key areas👇🏻 1️⃣ Partnerships The sheer size of the US market means any partnership we foster unlocks a much bigger scale of distribution compared to the UK. From Mana Tech to Startup Grind, we’ve partnered with key players in the Miami startup ecosystem to sponsor tech meetups, pitch competitions whilst offering incentives such as free memberships and masterclasses. 2️⃣ Bolstering our tech We’ve been making heavy investments into our data/tech capabilities, leveraging AI to help startups understand their data better and enhance their ability to connect with the right experts. Have a read through my interview with Refresh Miami with Riley Kaminer for more insight into our US expansion and the future of Connectd. #Founders #MiamiTech #Startup  

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According to a new survey by Balderton Capital, reported by PitchBook, over two-thirds of entrepreneurs identify burnout as a significant issue within the startup ecosystem. This figure has grown from last year, possibly reflecting the pressure of today’s challenging VC deal-making environment. Startups and scale-ups are undeniably tough, demanding resilience and grit. One key factor in sustaining that resilience is the support of a strong senior leadership team, especially the CFO. The CFO serves as a vital partner—acting as a sounding board, providing crucial commercial insights, driving operational efficiency, and shaping the growth strategy. My advice? If you're on this journey, surround yourself with the very best people. Building an exceptional team can be the difference between achieving success and risking burnout. Don't compromise on talent; it’s one of the most important investments you can make. Please get in touch if you want to discuss hiring a value adding CFO.

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Balderton's €1.3bn raise for European startups sparks debate: Does a bigger VC fund lead to better outcomes? First, consider: 💲 Larger rounds demand bigger funds, but returns get harder at scale 💲 $100M fund needs $1bn exit at 10% ownership for a single 1x return 💲 Most early-stage VCs target 3x returns, investing in 30+ companies 💲Management fees (typically 2%) grow with fund size Plus, the current landscape: Giants like Balderton, Index, and Accel are raising massive funds, while smaller firms stick to sub-$200M and focus on early-stage startups. Many VCs have maintained their previous fund sizes, while others are downsizing or struggling to raise new funds (or even returning un-invested capital to investors, as CRV recently announced they will do). Thus, weigh up the trade-offs: Larger funds (≥$500M): 📈 More firepower, full-cycle support 📉 Risk: Pressure to deploy capital, potentially lower returns Smaller funds (≤$200M): 🔍Agility, focused support, higher potential multiples ❌ Limited late-stage participation The future of European VC may not be one-size-fits-all. As the ecosystem matures, perhaps there's room for both Davids and Goliaths. What's your take? Would you bet on a nimble $150M fund or the muscle of a €1B+ vehicle? Source: Sifted #EuropeanVC #FundStrategy #StartupInvesting PS 🔔 Follow me for strategies and resources for startups and VCs! There's a better, streamlined way to raise capital: 💸https://foundersuite.com/ for startups 💸https://fundingstack.com/ for VCs and investors

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