Aspa Lekka

I think this is a good short one for builders on pricing, sticking to the original principles of what you want to solve for, getting to learn from NOs and more. Then this one - "Building a business is, frankly, an emotional roller coaster. There are moments when you feel super smart, and moments when you feel super dumb." Well said. By the co-founders of Warby Parker, the OG of internet d2c brands. #startups #mission #vision #build

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A question I like to ask founders: How does your company look like in 5 years, if you are successful? Which companies are not going to exist? Which market or user behaviors are going to change? What does your product look like? The answer does not have to be a true prediction of the future, but it is a strong indicator of the founder's vision and strategic thinking.

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Marketplaces drive outlier returns! Looking at marketplace IPOs since 2010: 50% of the top VC IPOs came from marketplaces that create new economies. They were worth ~$275B post IPO. Including Meta which is a marketplace, it is 60% of the top 10 and 80% of the top 5. Marketplaces are also 5 out of the top 10 Y Combinator companies. Why do marketplaces deliver outlier returns? 1. Powerful network effects 2. Grow and create new markets/economies 3. Economies of scale 4. Embedding by integrating with customers 5. Expandable through new revenue streams Why else are marketplaces one of the best VC investments? Credit to the amazing Sonia Sahney Nagar for the table! 🙏

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As investors, it’s always tough to say no to founders, especially when you have taken time for diligence. An additional challenge when it comes to feedback: choosing between being frank or being "nice." Founders also often feel that VC feedback lacks specificity or adds little value. After spending some time as an investor, I made a conscious decision to take the harder route of being blunt, even if it risked making founders feel bad. In hindsight, I believe it’s been the right choice. Most founders appreciate the candor, feel heard, and have gone on to become long-term friends of the fund. So, I’m taking the liberty of sharing a few of those difficult conversations we’ve had over time: 1. Declining due to lack of customer insight: We recently passed on a couple of high pedigree teams because they hadn’t spent enough time talking to their customers to understand the problem to be solved. 2. Lack of key skills on the team: In some cases, we declined based on the absence of specific key skills in the team, like GTM or strong business thinking. 3. Team chemistry: In one case, we told the CEO — who was a new addition to the 3 member founding team — that it would be difficult for him to gel with the other two co-founders. 4. Failure to unlearn from past successes: In another case, we passed because the founders weren’t showing signs of unlearning from their past successful ventures. 5. Role of co-founders: We once had to tell a two-founder team that their roles should be reversed — that the CEO should actually be the COO, and vice versa. Imagine us telling founders how to structure their roles 🙂 6. And the hardest one: We had to decline a founder we really liked because we didn’t believe in their thesis. This one hurt because we knew how much the team matters in the early stages. At the same time, if we invested, the debate was: a) Will we be able to support the founder on the board if we don't agree with their thesis?, b) If we don’t see eye-to-eye by the next round, will we be able to continue funding the company? As always, founders time and again prove us wrong. I’m sure this will be true in many of the above cases. But my strong preference is to share what I conclude (no matter how shallow my thinking might be) rather than fake a reason.

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According to Morning Brew, $12.2 billion in venture capital went into AI-related startups in the first three months of the year. According to SomosVC, Latina/os accounted for only 2% of all venture capital funding. Based on last year's numbers, that's roughly $3.4 billion. In other words, in the first three months of the year, AI has received almost four times as much capital as the entire Latina/o entrepreneurship demographic did in a whole year. Let that sink in.

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Is Peloton Interactive finally getting their act together? And getting out of the bike biz + sell the core content biz to Apple Fitness… Big news from last week: Peter Stern, the ex-head of media services at Ford + Apple (founder of Apple Fitness+) is the new CEO of Peloton. He clearly believes in the power of fitness content. If I were him, I'd get out of the bike biz ASAP. And move into the biz business to become the Netflix of Fitness ASAP. ->Scale up content ->Show crazy user growth + audience overlap with Apple ->Pitch to be acquired and return to the mothership Making Apple Fitness+ a legitimate fitness app. If Apple wants to get into making over-priced bikes and slapping their logo on ‘em, so be it. Candidly, all the money here is providing great, high-quality content to Apple customers. That either makes  - Apple TV+ better or gives  - Apple Fitness+ worth buying as a standalone. I’m really excited about this news. Hopefully they can FINALLY figure out how to actually monetize this biz. And stop losing money on every bike that they sell. #shopify

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Amongst the most successful VCs in consumer in the past decade has been Kirsten Green at Forerunner So I asked her all about how startups can navigate the 70% reduction in consumer investing & why now might be the best time for VCs to look harder at the category. I loved this discussion. I always learn something from Kirsten. Click below to watch / listen https://lnkd.in/g3kiMPD5

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The latest isssue of HPC Today is published by the great tks | publisher, event organiser, media agency. Here's the surfactants insights column. "Will LAS be Replaced?" This is a really easily readable online magazine format. Check it out. Many peer reviewed articles in here also (not my opinion pieces, I hasten to add) #surfactants #alkybenzene

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“RIP Good Times all the time” Roger Ehrenberg’s top guidance to founders references Sequoia’s 2008 RIP Good Times presentation (https://lnkd.in/eaD4RkaU). He encourages pre product market fit founders to be super cash conscious and hyper metrics driven. They should plan for 30 months of runway with the seed raise and not ramp up spend until they demonstrate real customer traction. “Overpower uncertainty by controlling what you can — burn is one of those things.” — Before Roger even writes the first check into a company, he spends a lot of time with the founder(s) aligning on the metrics and measures of success for the next round. They codify this into a hypothesis document, where they: 1) List the hypotheses and secrets the founders think they know that others don’t and articulate how they can be validated in 12-18 months 2) Identify the 2-3 key questions they want to answer with the seed round as they reach for product-market fit (which may overlap with the list above) — How does Roger define product market fit in a B2B context? “Product-market fit is when you’re able to sell in a way that’s not heavily consultative or requires over-servicing accounts to ensure success.” — What if founders don’t find product-market fit in 18 months? Roger recognizes that some of the most exciting companies have platform-like characteristics that take years to play out. Some of their best companies needed extensions — The Trade Desk needed a few before raising their Series A. How does Roger decide when to bridge a company? He looks at a combination of how the founders have performed and the likelihood that the company can bridge the gap between current state and a Series A: Founder attributes for bridge: 1) Have they been great at executing? 2) Are they resourceful? 3) Do they move fast? 4) Do they have grit? 5) Have they found a pocket of willing early adopters that prove their early hypothesis? Future state: 1) Founder is clear on what the future state of the company needs to look like to raise the Series A 2) Founder can articulate what the gap is between that future state and where they are now If there is a clear line of sight to that Series A, then an extension makes sense -- Tomorrow, I'll dig into IA Ventures' fund model. Thanks for reading! You can keep up with all the posts at https://lnkd.in/eXbktFxZ

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Things That Make You Go Hmm🤔: When getting an Uber to McDonald’s is cheaper than buying Uber Eats! With the high additional costs of ordering food from certain restaurants on Uber Eats, it is possible that paying for an Uber and ordering directly at those restaurants would be the cheaper option. MyBroadband’s regular comparisons of the prices of food when bought through Mr D or Uber Eats as opposed to ordering directly has found the prices can often be substantially higher on the third-party platforms. The increases are fairly easy to explain. For the on-demand apps to be commercially viable, they must charge restaurants and other food-serving businesses selling through their platforms a commission on each order. For Uber, this amounts to somewhere between 15% and 30% of the order value. In addition, UpMenu has pointed out that Uber Eats may charge fees for processing and marketing, which can add further costs that could eat into restaurants’ revenues. To offset the impact of these fees, restaurants increase the prices of menu items ordered through Uber Eats. MyBroadband previously found that McDonald’s, Nando’s, Roman’s Pizza, Rocomamas, and Simply Asia typically charged between 20.7% and 32.9% more for their products on these platforms. Whether you choose Collection or Delivery on Mr D or Uber Eats, you pay an extra fee for the food. When one MyBroadband reader recently argued it would be cheaper to use an Uber Ride to collect food directly than Uber Eats, we had to investigate further. Hmm🤔 https://lnkd.in/dd7Rh4Sm

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

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The Information is out with breaking news about Bolt finalizing a $450M round at a whopping $14B valuation for their Series F. This is complete with Ryan Breslow returning as the CEO. While this fundraising is obviously impressive, the ultimatum is that existing investors "Have to buy at twice their existing positions at the higher valuation." Most egregious is their written threat of forcing the existing Preferred Shares into $0.01 common shares if they do not." It will be interesting to see how BlackRock and General Atlantic respond to this direct threat. #management #venturecapital #privateequity #fintech #capitalmarkets https://lnkd.in/eZZec5kT

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Recently, I joined Daniel Scharff on the Startup CPG Podcast to break down these core financial pillars to help founders build a resilient and scalable brand. Here’s a quick rundown: 1. Cost of Goods Sold (COGS) → Understand the full cost to develop, produce and receive each product (it’s way more than materials.) 2. Customer Acquisition Cost (CAC) → You need to use your CAC as your constant in the spend equation. 3. Cash Flow → Scaling without a handle on cash flow is a recipe for disaster. Too fast of growth can kill a company as quickly as too slow of growth. 4. Margins → Razor-thin margins (stand alone or via discounting) means playing on hard mode. 5. Retention Rate → Repeat customers are the foundation of long-term success in e-commerce. I break down each one in more detail on the podcast. Listen to the full episode here: https://lnkd.in/eJzypw6x

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Agree with most of this. There are also different types of #VC. Early stage VC do invest in a founding team. Later stage may replace the team, as founders may own only single digits and be in the minority. Late stage VC will act more like #PE. In #business, there is accountability and you can be replaced by the board, even if it is “your” company that you founded. It happened to Steve Jobs. What makes you think it can’t happen to you? Investors care about #ROI. Keeping your job requires delivering results.

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[new investment] A bit late...but stoked to participate in the $6Mn seed round of Loop AI - Delivery Intelligence Platform alongside Base10 and Afore Capital. Loop's AI-powered platform helps multi-location food chains manage their operations via data-driven workflows including managing store availability, insights-driven marketing, delivery accounting reconciliation, financial intelligence, and driving store performance. Anand Karthik T. is one of the most intense founders I have met, who is also executing like a beast. This was one of those cases where I committed to invest in the first meeting and was also (I think!) one of the first investors to commit. Looking forward to partnering in the trenches to build this out! PS: after a bit of a gap, will be announcing 2 more investments soon. Stay tuned! https://lnkd.in/dkvNai2W

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CPG founders: Imagine managing your cash flow like a pro, even in a tight capital market. Sounds challenging? Well, it is. BUT it doesn’t have to be! The secret is a proactive cash flow strategy. In 2025, it will be the deciding factor between survival and growth for startups. That’s why I’m teaming up with Samir Shergill, CEO of Highbeam, to show you how to build a cash flow strategy that fuels scalable growth. Here’s what we’ll cover: ✅ Banking & Capital Essentials – Tools that keep cash flowing and maximize liquidity. ✅ Real-Time Cash Flow Analysis – Make faster, data-driven decisions. ✅ Tech & AI for Streamlined Finances – Free up time, automate the manual, and capture valuable insights. Ready to take control of your cash flow and build a foundation for sustainable growth? 🗓️ Date: Wednesday, December 11 ⏰ Time: 1:00 - 2:00 PM ET 👉 Sign up here to secure your spot: https://lu.ma/zxw19w1y

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🌟 Reflection on the Short-Term Rental Industry 🌟 Hey folks, breaking my silence to share some MASSIVE VALUE on the short-term rental industry. 🏡 This article hit me right in the insights, and I'd love to hear your thoughts! As a leader in short-term rentals, I often get asked about the industry's status. Clients, friends, potential investors – you name it. So, here's the scoop: Despite whispers of saturation, national stats from 2023 show a stabilizing supply and demand trend. According to Airdna’s 2024 Rental Outlook Report, demand growth slowed in 2023 but is expected to bounce back to 10.7% in 2024...to pre-pandemic levels! But with competition comes opportunity, especially in a FRAGMENTED industry like short-term rentals. Basically, in order to create wealth in any business market, the opportunity lies in fragmented industries. The opposite of a fragmented industry would be a consolidated industry. In a consolidated industry, a few large companies or players dominate the market, resulting in fewer competitors and potentially higher barriers to entry for new businesses. This can lead to less competition, more standardized products or services, and potentially higher prices for consumers. By leveraging the following strategies, business owners in fragmented industries like short-term rentals can capitalize on the inherent opportunities and gain a competitive advantage despite the challenges posed by market fragmentation. Here's where we shine: 🎯 Niche Focus: We can tailor our offerings to specific market segments, attracting customers with unique needs. 🚀 Agility and Innovation: We're nimble, adapting swiftly to market trends, tech advancements, and creative marketing strategies. 🤝 Collaboration Opportunities: Teaming up with other businesses expands our reach and boosts brand exposure. 👫 Customer-Centric Approach: Exceptional service and personalized experiences win hearts and bookings. 💻 Technology Adoption: Embracing tech streamlines operations and enhances guest experiences. And now, let's delve deeper into the business markets: In the short-term rental arena, there are three main types of business markets: Commodity, Middle Mass, and Premium. We're proud to say we're in the top 3% of the entire industry (The Top 10% of the Premium Markets), representing the cream of the crop. How do we achieve this? By strategically investing in median-priced real estate and leveraging creative finance strategies, we're able to elevate our properties to premium status and generate INSANE returns while mitigating the risks. Our approach is inspired by the top 5% comparable properties in each market we invest in, ensuring that we stand out and deliver exceptional value. I hope this deep dive resonated with you as much as it did with me. Let's keep the STR magic alive! ✨ #ShortTermRentals #IndustryInsights #WinningStrategy #Raisemasters30

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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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