Anders Krohn

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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TLDR: EIS should be scrapped as a fund structure but retained for Angel investments by individuals. Alex Chalmers has done all the work which in 10 years I've never got around to doing: why 95% of EIS/VCT funds are bad for our tech ecosystem, rip #startups off, and why as a Founder you should push back against their stupid fees or not take their money. https://lnkd.in/dnq9ZScS

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Taavet Hinrikus and I made the Financial Times Due Diligence email. https://lnkd.in/ez2AuGQx One 'unintended consequence' is that if there is a 45% tax on carry and CGT (raising £40m per year, remember) it for all intents and purposes closes the door on new VCs in the UK. Especially started by teams from non-traditional backgrounds. To meet the GP commit, you need to be already part of the 'wealthy' as you cannot rely on the value you create - nearly half of it will disappear - to fund it. We have both had extremely successful startups which are few and far between. The smaller number of new VCs will therefore more likely increasingly be for people who have inherited the capital or can draw it from their already rich family. Probably not want they have in mind with this policy.

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Numbers & insights from a deep tech venture studio that launched 11 companies (all are active) in the last 7 years, reaching £85M valuation across the portfolio: 1. Post Urban, initially bootstrapped by Luke Robinson, an academic with a PhD in physics from Cambridge, now operates with external funding from a UK-based fund. 2. Launched 5 companies during the first 5 years and 6 companies during the last 2 years. 3. All 11 completed pre-seed rounds; 1 of them got Series A, 2 of them are approaching their Series A. 4. The startups have collectively raised ~£25M in venture capital, in addition to receiving grants. The total valuation of the 11 companies is ~£85M, half of which have not yet undergone subsequent funding rounds. 5. Initial equity splits: the venture builder 20%, CEOs of startups 35% (vests over 4 years), CTOs – 20-25%, employees 10-15%. 6. The initial valuation of startups was £2 million, with £300K invested by the venture builder. The last 2 startups were at £3.5-4M initial valuation. 7. Building deep tech ventures requires significantly higher initial funding because these projects need more time to develop demonstrable products. Two portfolio companies hit £1M in ARR. 8. The venture builder has increased the capital for the last 2 startups to ensure they reach meaningful milestones. The CEOs of the startups were able to secure additional funding through their networks, £350K and £450K, respectively. 9. The deep tech investor pool is smaller than that for sectors like SaaS, which requires a stronger proof of concept and market readiness to attract funding. 10. 3-4 times, potential customers became investors in Post Urban Ventures. This is a great approach because it secures investment and validates the concept by gauging whether these potential customers truly believe in the solution and its market necessity. 11. They don't start with a technology or an idea; instead, they integrate insights about global problems and, by actively engaging with advisory boards, founders, and industry experts, identify pain points and align them with technological solutions. 12. They do not bring universities in as co-founders but source scientists or professors to contribute to research and development. This involves leveraging academic expertise to support the technical aspects of startup projects until a prototype is developed. 13. The studio maintains strong connections with major academic institutions, including Cambridge, Oxford, Imperial College, and UCL, supporting its deep tech focus and facilitating access to new technologies and potential founders. 14. Areas of focus in deep tech: AI (Knowledge Graphs, NLP, DNNs, Computer Vision, Edge AI, Active Learning), Quantum Technologies, Biotech, AgTech, Enterprise SaaS. Watch the full interview to gain insights into the portfolio companies, handling IP collaborations with universities, key challenges, and team construction: https://lnkd.in/dCi7fZ7G

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How much deal flow are you missing out on? How many startups are missing out on the right investors? Huge congratulations to Sophie Winwood Rachel Drapper and the team at WVC:E for their latest report. Here’s the deal: having female VCs on your team brings a collective sharpness and depth that’s hard to find elsewhere. They’ve encountered different challenges, navigated different networks, and bring new insights that others might miss. It’s about seeing opportunities through a lens that broadens your reach—because the market isn’t one-size-fits-all, and neither is the talent. By bringing in these perspectives, you gain a strategic edge, spotting the talent and opportunities that others might overlook. It’s not just about adding women to your firm—it’s about setting yourself apart as the VC that consistently identifies and backs the winners. Stop the leaky bucket! To discover how delve into the report. Link in the comments. If you like this post, 🔁 Reshare it, and if you want more like this, 📬 subscribe to our newsletter! ✨https://lnkd.in/ejfaPcpR

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🎉 20VC Closes Fund III at $400M to Back Next-Gen Startups London-based venture capital firm 20VC, led by Founder and Managing Partner Harry Stebbings, has closed its third fund at a remarkable $400 million. Known for combining venture capital expertise with a powerful media platform, the firm continues to solidify its position at the forefront of the startup ecosystem. 💰 The Fund Breakdown: - $125M allocated for Seed investments, ranging from $100K to $3M. - $275M dedicated to Series A investments, ranging from $5M to $15M. Backers of the fund include renowned institutions such as MIT Investment Management Company, Horsley Bridge Partners, and RIT Capital Partners plc. 🚀 The 20VC Difference 20VC operates three sub-funds: 20Sales, 20Growth, and 20Product—each supported by top-tier experts from global tech giants. These specialists actively assist portfolio companies in scaling and achieving their full potential. The firm's innovative approach extends beyond traditional VC, leveraging its media platform, which features in-depth conversations with prominent figures from the business and venture capital worlds, fostering a unique blend of investment and insight. 🌟 Key Team Members Harry Stebbings – Founder & Managing Partner Kieran Hill – Partner, Pre-Seed & Seed Paul Bonnet – General Partner, Series A & Growth This latest fund positions 20VC to further support transformative startups, enabling them to grow from the earliest stages to impactful global players. ✅ Looking to raise capital for your #VCfund?   🤝 Need warm #LP introductions?   📝 Selling #secondaries to increase liquidity?   🧐 Looking for co-investments (Series A/Series B)?   ▶ Please use G+QUANT's link for inquiries and fund decks, or send your inquiry directly to [email protected] #VentureCapital #20VC #StartupFunding #SeedStage #SeriesA #VCNews #Innovation #TechInvestments #StartupEcosystem #Founders

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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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Not all venture firms are created equal - at Playfair Associates & Principals write cheques and lead deals 💰 Why? Because they have the ability, drive and passion to do so And what we care about most is building optimal partnerships with founders that deliver results This means matching them with the right investor who then continually leverages the diverse experiences of our entire team I spend a lot of my time nowdays supporting these investments as well as leading my own I love doing both Founders: don't assume only partners lead deals and don't be afraid to ask how decision making works during your pitch call #venturecapital #startups #fundraising #founder #entrepreneur #entrepreneurship #technology #innovation #business #ceo

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A huge first step in closing the female funding gap in VC - the Invest in Women Taskforce announced a massive £255M fund to back female investors. Why? 🚨Appallingly, less than 2% of equity funds go to women founded businesses - a challenge I saw first hand when building a tech startup in London in the 2010s with a female co-founder (the unstoppable Brynne Kennedy) 2✖️Women investors are twice as likely to back women than male investors (we need more female GPs starting firms and sitting on ICs) 📈£250 Billion (that’s a B) could be added to the UK economy alone by backing women I was lucky enough to join the wonderful launch event last night at Mansion House. The energy was palpable and the room was full of powerful women leading the charge. Excited to see where it goes from here and a huge congrats to taskforce co-chair (and Smart Society Ventures advisor 💪), Debbie Wosskow, OBE

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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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Enough with being spoon-fed 'what' and 'why' advice on pitch decks that's not even fit for pop-ups, forget startups or for your cat, forget investors. It's like trying to light a damp fire when you’re supposed to be launching a rocket, right? "This Is HOW to Write Your Pitch Deck" is for founders ready to cut through the blah and get **it done. Link in comments below for the ❤️ of startups __________________________________ Connect or Follow DeReK WaTSoN Fusion42 F42 In Real Life ___________________________________ #startups #founders #cofounders #venturecapital #angelinvestors

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I often talk about ‘building something offline, before raising money’. This is the perfect example of what I mean👇 One of our portfolio companies Tradeaze UK LTD (it’s a biassed example, I’ll admit), identified a pain point: Co-founder, Jack, is an electrician by trade and saw first-hand the amount of time wasted by tradespeople when picking up tools and parts needed for a job.   To solve this pain point: ↳ Jack set up a Tradeaze iPhone, approached tradespeople on the street, handed out flyers and reached out on Facebook groups to his target audience. ↳ Tradies would text the number, asking for a part or tool. ↳ Jack would then jump on his bike to pick up the part and deliver it back to the customer directly. ↳ After a while, Jack started working directly with merchants providing them with a tablet in kiosk mode, with which the merchant would fill in a really simple form and Jack would receive the order email. ↳ Again, Jack or one of the delivery riders would take the part direct to the tradesperson in need. ↳ Jack continued this way until he got to breaking point and couldn’t handle any more daily deliveries. ↳ This is when he expanded his team to bring in even more experience with his co-founders Joe Blair and Ruben Engel. Since they have raised investment from us and other investors. They were able to prove their pain and solution offline, saving them money and time and proving traction to bring on investors ! Raising too soon, before proving you have the right solution is a huge risk. This is a fantastic way to build a business without needing to raise investment right away. Build offline first ! #businesstips #entrepreneurship #startups

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In 2019, I led a £9m Seed Round. It was the largest Seed Round in the UK that year. Now... You would expect the usual reasons why we invested so much: 1. A clear story 2. Special founders 3. A large opportunity But there was also something else that was a big reason for why we invested. What was it? The founders were able to hire in some of the best people we had seen. They had already built exactly what this company needed to. They had extreme amounts of success doing it. And now were willing to risk everything to join this tiny little start-up. Funnily enough one of those exceptional hires ended up being the CEO! That’s how good their hiring was. At the end of the day, investors invest into teams. And those teams are the people who are going to be the difference between a successful company or not. So as a founder you have to show investors that you can, will and have hired the best of the best. Because second-rate hires will never cut it. -- P.S. What do you think about team-building and its importance? ♻️ Repost to help a founder in your network

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Compare this to founders and startups from developing Asia. The avg pre-seed round would be around €100K and Founder's salary would be around €10K PA. Startups with lower burn will be invincible as Innovation and tech tools aren't geo-restricted anymore. #Startups #VentureCapital #Investment #Innovation #Funding

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Are VCs struggling? With VC funding in UK startups dropping sharply from £36.8bn in 2021 to £20.1bn in 2023, and continuing to decline through 2024, startups are feeling the pinch. 'Good' exits are also substantially down, and we're seeing more companies Phoenixing. I don't hear much about this but surely this is affecting fees, the next fund, carry and TVPI! Does it affect the types of companies/stages of the companies you are backing? Some transparency here can help the wider startup community. VCs/investors would love to hear your thoughts. Amrit Sami Michael Jackson Jordan Lavender Lewis Stringer Jamie Roberts Simon Fox Toby Ganguli Julian Worth Tim Hazell Adam Huckerby Charles Serilas Ian Zant-Boer Saagar Bhavsar 🚀 Mark Pearson Pinedo Engelmann Charlie Weavers-Wright Joshua McHugh James Isilay James Knight Jamie Giles Davide Sangiovanni Darren Westlake Uthish Ranjan Nitish Malhotra Matthew O'Kane Chris Corbishley Kieran Hill Jonathan Hollis Harry Stebbings Doug Scott Hamish Law Stephen Windsor James Wong Oli Hammond Andy Alderson Martin Punt Ian Merricks, FBCS FRSA Dan Bowyer Mads Jensen Fred Soneya

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What ‘VC’ means to me: I’ve had people compare our approach at Tin Men Capital to private equity. Largely because we: -Construct a very focused portfolio -Look keenly at positive unit economics/ pathway to profitability -Keenly involved with supporting our founders scale -Are not reliant on unicorns to deliver returns for the fund Which some consider to be radically different from how most VC funds operate. The reason we take this approach is because we have high conviction. That Southeast Asia needs it’s own investing approach. That what’s worked in the US might not work here. In light of all this, our portfolios have delivered above benchmark returns. We expect that to continue. ‘VC’ to me means calculated risks and being flexible to adapt approaches ‘VC’ to me means doing right by the ecosystem for its longevity ‘VC’ to me is delivering returns ethically with a nett positive for everyone ‘VC’ to me means giving back when we’ve succeeded There are many general partners I respect and consistently test our ideas with. I believe we’ve found gems in a class of startups in the region. What people label us is not important to us. Our mission remains the same: -Seed the next generation of regional and global champions -Deliver strong returns/ DPIs -Collectively build a strong and unique venture ecosystem in Southeast Asia. What does a ‘VC’ mean to you?

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🇬🇧 Calling all UK startups: stepping into the venture capital arena can be a thrilling yet daunting experience, but you're not in this alone. I’ve curated a list of 10 top-notch venture capital firms in the #UK, each a leader in their unique sector. Whether you're revolutionizing #tech, transforming #healthcare, or breaking new ground in another industry, aligning with the right #VC partner is vital for your growth and success. 1. Ascension Focus: Seed and Pre-Seed Ventures Sector: Software, Internet, FinTech Top Portcos: Heatio, Saltroad, Nebu~Flow 2. Fuel Ventures 🚀 Focus: Seed and Pre-Seed Ventures Sector: Software, E-Commerce, Internet Top Portcos: Lunio, Eleos, StudioSpace 3. Force Over Mass Focus: Seed and Series A Ventures Sector: Software, Information Technology, FinTech Top Portcos: CUR8, Artificial Labs, SuperFi Finance 4. Northstar Ventures UK Focus: Seed, Funding Round and Series A Ventures Sector: Software, E-Commerce, SaaS Top Portcos: Lightox, DayaTani, Circadacare 5. Octopus Ventures Focus: Series A, Seed, and Series B Ventures Sector: Software, Health Care, Artificial Intelligence Top Portcos: Sidekick, ExpressionEdits, Swiipr Technologies 6. MMC Ventures Focus: Early-Stage, Pre-Seed, Seed and Series AVentures Sector: Software, Artificial Intelligence, Machine Learning Top Portcos: LiveEO, Stanhope AI, Eatron Technologies 7. SFC Capital Focus: Pre-Seed and Seed Ventures Sector: Software, Artificial Intelligence, IT Top Portcos: Lemon, Unibloom World, Blue Skies Space 8. Episode 1 Ventures Focus: Seed, Series A and Pre-Seed Ventures Sector: Software, Artificial Intelligence, SaaS Top Portcos: Lawhive, Superlinked, Viable 9. Maven Capital Partners Focus: Seed and Series A Ventures Sector: Software, Information Technology, SaaS Top Portcos: Carcinotech, Metrion Biosciences, McKenzie Intelligence Services Ltd 10. Notion Capital Focus: Seed, Series A and Series B Ventures Sector: Software, SaaS, IT Top Portcos: TechWolf, Caeli Wind, Harbor Lab Ready to connect with the perfect investor for your startup? Drop a “LIST” in the comments, and we’ll tailor a personalized investor lineup just for you. Got a favorite UK-based VC firm that deserves a shoutout? Let us know in the comments below. At Thunder.vc, we excel in pairing your startup with venture capital firms that align with your specific sector, growth phase, and objectives.

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I love when accelerators ask me to run a funding strategy workshop to help the founders on the programme work out if they should raise! Especially if they're an early stage accelerator! It's so important as founders that we stop and check if investment is right for us, and if it is which kind, and is it right right now? It's why I co-founded IfWeRaise with Tim Deeson. To ensure entrepreneurs get to ask the right questions at the right time, before they're set on a path that's hard to leave happily. Really enjoyed talking about this on the Graduate Guide with Marlene Leiss. Ps if you're a founder and need help with what questions to ask to work this out,  or if you're running an accelerator and want to offer your community/cohort this support, drop me a note - I'd love to help! #founders #fundraising #investment #accelerator#startups #startupstories #fundingstrategy #entrepreneurship  Type your message...

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This week, Kate Clark called me to chat about BeReal in the wake of the 500 million Euro acquisition. I shared with her a few thoughts about the M&A market opening up in consumer tech, which has been frozen over since 2022. In the past 10 days alone, we've seen sizeable acquisitions of Tabular (Databricks), Champion (Hanesbrands), Bitstamp (Robinhood), AlphaSense (Tegus) and BeReal (Voodoo). Why did this happen and what does this mean for the future? Well, as I shared with Kate, a few reasons: 1) public company growth has slowed down. As Chetan Puttagunta from Benchmark shared, "there are no public software companies projecting to grow revenue 30% or more in the next twelve months." 2) private companies have for the last 18+ months tried to adjust cost structure with varying degrees of success. There's a group of companies that have gotten closer to profitability, still growing nicely with an attractive user base, these make for viable M&A candidates. Other profiles: AI talent grab, compelling product that can lead to long term margin expansion in the combined entity. 3) these late stage private companies face a harsh fundraising environment. Large money managers that entered the venture market in the ZIRP era have shifted some their focus away from late stage growth / pre IPO rounds to asset classes (i.e. fixed income, private credit) where the risk adjusted return is better with rates where they are. The alternative to face the public markets may also not be a viable option. 4) while there are more favorable conditions for M&A today than the last 2 years, these deals may not look as pretty as the headlines suggest. Regulatory headwinds from FTC are inevitable, and wouldn't be surprised if we see more performance earnouts as part of the deal package. 5) I'm optimistic for more M&A activity, and believe it's directionally net positive for the overall ecosystem. M&A activity has the ability to encourage a new set of entrepreneurs; getting even a taste of an exit can be powerful. Even more, I'm bullish on consumer tech. Consumers are still buying, still adopting new technology, and have proven to be resilient. If you're in the early stages (seed + Series A) building in consumer, don't be a stranger and drop me a note. And! Any feedback and thoughts on M&A and markets are always welcome :) Full Information article here: https://lnkd.in/gJJkCVd4

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