Palm Venture Studios

The Palm team is taking a moment to reflect on a year filled with growth, learning, and progress. Our mission remains clear: Provide second-chance capital to promising, purpose-driven companies. In the past 15 months, we’ve invested in over 18 companies and provided strategic support to help them pivot, grow, and find a path to profitability. This work wouldn’t be possible without our dedicated team as well as the founders, venture funds, investors, and the startup teams we collaborate with every day. Thank you all for making our work meaningful. When we started this journey, we set out to build an ecosystem dedicated to building up companies that are solving real problems. While there’s more progress to be made, we’re pausing today with gratitude and excitement for what’s ahead. – Here’s a portion of our Austin team and family at a recent Palmsgiving.

We talk to founders and startup leaders daily about the challenges their companies face, especially in today’s increasingly tough fundraising environment. According to Carta, key trends include: • Only 43% of committed capital from venture funds has been deployed since 2022. • Less than 10% of venture funds launched in 2021 have delivered any LP distributions. • Seed-to-Series A graduation rates have dropped significantly, with fewer startups making the leap to their next funding stage. Companies struggling with capital and cash runways are becoming increasingly common. That’s where Palm comes in. We deliver fast, discreet capital to promising companies facing these hurdles. While financial challenges are critical to rescuing and reviving early-stage startups, they’re not the only barriers to growth: More than 40% of the startups we work with grapple with scalability and operational issues. Many of these businesses have solid foundations but need more than just capital to move forward – they need strategic guidance and operational support to oftentimes, pivot and grow. This could mean: → Refining business models → Expanding their TAM and problem space → Overcoming competition Sometimes, the solution lies in back-office upgrades like better financial reporting or efficient supply chains. Other times, it’s a strategic rebrand or a refined go-to-market approach. At Palm, we work directly with startup leaders to tailor support to their needs. We deliver the resources and guidance to help companies overcome financial challenges, scale, and achieve sustainable growth. Think we could be the right partner for your startup or someone in your network? Let’s connect: hello@palmventurestudios.com.

Strategic guidance is a cornerstone of the support we offer to founders and startup leaders. PVS Partners like John Fitch – a prior founder and investor – are integral to this approach. With firsthand experience navigating the ups and downs of building companies, John engages in authentic, deep-dive conversations with startup leaders about durable growth. In his words: “Too often, I see companies dying because they were pressured to chase growth at all costs. True sustainability is about far more than top-line growth.” At Palm Venture Studios, we value patient capital. We don’t put pressure on returns, and we understand that growth and impact can take time. We work with companies in our portfolio to engineer sustainable and resilient runways for growth and success. How do we assess a company’s potential? According to John, there are three core metrics to evaluate: 1. Clear Product-Market Fit: Does the product or service solve a real problem in a way that your customers truly value? Would they be upset if you went away? If the solution is vastly better than what they were doing before, that's a strong indicator of product-market fit. Without this, long-term growth is a mirage. 2. Great EBITDA Performance: Growth is important, but not when it comes at the expense of financial health. Solid EBITDA performance shows that a business can thrive in any market condition. If a company is only sustainable in boom times, that’s a red flag. 3. A Core Team with the Right Competencies: The team should have a well-rounded skill set that aligns with the current stage of the company. For early-stage startups, that might mean visionary founders and scrappy generalists. For scaling companies, it means leadership with deep operational expertise. “If you’re building or investing, take a step back and assess whether these foundational pieces are in place,” John advises. “Not just in terms of financials, but in the company’s overall structure and strategy. If they aren’t, you know what to focus on.” At Palm, we’re glad to partner with John and the rest of our team to help promising companies integrate sustainability into their growth models. 

Bold ideas come with challenges, especially early on: • 90% of startups fail. • ~20% of startups fail within the first year. • All businesses have a 50% failure rate within five years, and 70% within 10 years. What if we told you that failure doesn’t need to be inevitable? Palm Venture Studios is the only venture studio providing second-chance capital and diverse resources to early-stage startups that haven’t reached their potential. After we invest, we provide comprehensive back-office support and hands-on operational leadership to help startups grow. This includes (and is not limited to): • Go-to-market strategies based on market trends and hindsight wisdom • Talent and recruiting support to bolster a company’s next stage • Financial and accounting management to support sustainable business models • Collaborative network of mentors and advisors that drive progress We don’t want promising startups to become another failure statistic. – Think we could be the right partner for your startup or someone in your network? Let’s connect. Reach out to hello@palmventurestudios.com

Today, we’re spotlighting one of our trusted Partners, Andy Ambrose. Andy was the founder and CEO of LiveOak Technologies, which he sold to DocuSign, and has since been an early-stage investor. He’s passionate about educating entrepreneurs and helping them navigate their founder’s journey. He’s known for his hands-on approach, especially with early-stage founders. In Andy’s words: "As a founder myself, I know firsthand how hard it is to start and scale a new business. In the headwinds of today's fundraising environment, these challenges have become even more daunting. That's why being part of the Palm Venture Studios team is so energizing: We bring empathy, creative approaches to funding, and strategic value to startups who need a second chance. It's been an immense privilege to work with a passionate and accomplished team of founders, operators, and investors who are all committed to bringing value beyond capital." Last week, Andy joined our Fellows for an in-depth onboarding session on deal structures and deal types, covering crucial concepts central to how we do business: ✅ Preferred vs. common shares ✅ Asset purchases ✅ Debt restructuring At Palm, we’re proud to partner with experts like Andy who are helping companies unlock long-term value.

These are answers to 3 questions from founders about partnering with Palm Venture Studios: 1. When is the right time for me to approach PVS? Early-stage startups come to us at various phases of their journeys, though most have raised money and are having trouble raising more. Many have gone to market and seen early revenue traction. Others have stalled, and many need to pivot. That said, if you’re looking to raise a traditional Series A, Series B, or Series C, we aren't the right fit. We specialize in turnaround capital for startups who need a second chance. 2. How much do you typically invest and are you flexible on ownership? There’s no one-size-fits-all formula. Our investment approach is unique for each company. We evaluate a diverse array of factors to determine together how much capital is needed to rescue a startup. We aim for a significant or majority position to promote sustained growth, considering the resources we invest in our companies beyond capital. 3. What kind of support do you offer to founders? We collaborate closely with founders and executives. Our capacity ranges from acute support to daily interaction, depending on the needs of the company. We aim to remove the obstacles that have historically stood in the way of a company’s success. We provide comprehensive back-office support and shared services to help our companies: • Financial and accounting management • Talent and recruiting • Executive Coaching • Studio space • Go-to-market strategy support Founders in our portfolio are also connected to a vetted network of vendors across a variety of services. To promote ongoing growth and success, we sometimes look to acquire or acquire-hire, especially in scenarios that support a company’s strategic growth. Would you or a founder you know be a good fit for our unique venture studio model? DM us to start the conversation.

At Palm Venture Studios, strategic partnerships are vital to our studio. We partner with various stakeholders and investors to identify startups that need help. We identify which companies in your portfolio could benefit from our strategy, step in, and work to manage a turnaround. 𝗪𝗵𝗼 𝘄𝗲 𝗰𝗼𝗹𝗹𝗮𝗯𝗼𝗿𝗮𝘁𝗲 𝘄𝗶𝘁𝗵: • Venture capital firms • Venture debt lenders • Restructuring firms • Professional service providers to early-stage startups • Other investment and advisory stakeholders, including board members We value discretion in all of our partnerships. As a family office, we can work collaboratively, flexibly, and quickly. We offer a two-way partnership, alleviating risk and becoming a critical partner to a company that needs a second chance. For investors or anyone who refers a company to us, we offer a finder's fee of up to $25,000 after a transaction is completed. DM for details.

Join Palm Venture Studios for Techstars Startup Weekend in Austin, part of a global series that unites founders, investors, and builders. When: Friday, October 25 - Sunday, October 27 Where: 4901 E Cesar Chavez St, Austin, TX This event is designed for those navigating a pivot, ready to dive into a new product, or builders eager to create. Over three days, you’ll collaborate with investors, mentors, and peers, culminating in a pitch competition where teams compete for prizes and recognition. Shout out to Michael Popchuk for leading the charge for Startup Weekend and our co-sponsors: Techstars FIESTA Austin Tech Week Orrick, Herrington & Sutcliffe LLP Linnify USUAL ScrumLaunch At PVS, events are a small but important part of the work we do in our six venture studios across the country—and we’re excited to partner with Techstars to continue bringing the startup ecosystem together in Austin. Register now: The first 10 founders using code PALM-ATX get $40 off a standard ticket. Sponsorships are still available – DM or email hello@palmventurestudios.com. – Here’s the link to register: https://lnkd.in/eCh7hAXm 

Our portfolio is diverse and dynamic. We keep an open mind, investing in companies across sectors and industries. We look for promising early-stage startups solving big problems – in durable industries with room for disruption. As a result, our portfolio is home to companies making an impact in industries including (but not limited to): → Sustainability & Climate → Better-for-You CPG → Health & Wellness → E-Commerce → Education & EdTech → Fintech & InsurTech → AI Data Security & Governance → Talent & HR Solutions → GRC & Quality Assurance We’re not bound by specific verticals, and we explore all avenues in our sourcing approach. Know someone running a startup in these areas or more? Tag them in the comments or DM us!

Join Palm Venture Studios at our Austin studio for "Take Care: Empowering Women's Health Innovators,” the first in a three-part series focused on supporting women founders in health and wellness. 𝗪𝗵𝗲𝗻: Thursday, September 26 𝗪𝗵𝗲𝗿𝗲: 4901 E Cesar Chavez St, Austin, TX “Take Care” is one of many events we routinely host in our Austin studio to bring our community of founders, investors, and executives together. We’ll be featuring a panel of inspiring women leaders innovating in women’s health, followed by small group breakout sessions for candid conversations and networking. It’s not too late to sign up – register here: https://lu.ma/yq4c1ia4