Collin Gutman

What a day at the inaugural Alpaca VC Capital Cup! 🏌️‍♂️☀️ Yesterday, we brought together 20 of South Florida's most incredible VCs, founders, and allocators at The Park in West Palm Beach for an afternoon that was about more than just golf. It was about starting the New Year by getting outside, connecting in-person and continuing to build the South Florida tech ecosystem. And for our team’s David Goldberg, it was about getting out of the sand in a pretty spectacular way – at least ESPN thought so (see ~45 seconds into the clip below, and you’ll get it!).   Since making South Florida my home, I've become increasingly convinced that the future of our tech ecosystem is made stronger when we step away from our screens and spend time together in person. The golf course isn't just about the green or the game – it's about the conversations, collaborations and unexpected outcomes that happen along the way. Huge thanks to our partners Escalon Services, LLC (thank you Zack Mellin) and First Circle Law (thank you Drew Morris) for supporting this vision of ecosystem building. And an even bigger thanks to everyone who showed up, swung a club and helped be a part of what’s happening here in the region: Jonathan Beda of Connexa Capital, Eric Helitzer, LEED AP of SubBase, Patrick Miller and Rob Cousin of J.P. Morgan, Steven Himmel of HighPost Capital, Harry Hurst of Protagonist, Jacob Slevin of FuseProp, Chris Wallace of Dunbar Capital, Paget S. of Gemini, Henri Pierre-Jacques of Harlem Capital, Blake Hatten of CEAS Investments, Howie Diamond of Pure Ventures, Luba Lesiva of Palumni VC, Nicki Berlyn Katz of Related Ross, Rob Hayden of Renew. These are the moments that make our South Florida tech landscape one I’m glad to be a part of. Who's ready for the next gathering? 🤝 #SouthFloridaTech #VentureCapital https://lnkd.in/eZWkqChP

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I recently saw this metric from Carta’s 1Q24 VC Fund Report, which is very concerning. DPI... is nowhere to be found in earlier vintages that probably should start showing DPI. Funding early-stage projects is great, but ultimately, these venture dollars need to exit their investments and pay back their limited partners. That’s where the metric Distributed to Paid-In Capital (DPI) comes in. While managing a fund, we get interim measures during the life of the fund (e.g. IRR, MOIC), but ultimately, “you can’t eat IRR.” If you want to build a lasting venture capital organization, you need to start showing DPI for your fund. Keep in mind that this is traditional VC data from Carta, and is not strictly crypto venture. Crypto venture tends to get liquidity earlier (tokens) and things tend to go parabolic sooner (faster, more unicorns) - but I’d wager that the data here is somewhat similar for Crypto VCs… Not as much DPI as there should be from these earlier vintages. Read the full article, as well as a recap of all the crypto fundraising rounds for August, here: https://lnkd.in/g3eVJ-iF

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Kettleborough VC has been active for ~6 years, invested in ~30 companies, gone through ~80 funding rounds, witnessed ~12 exits including ~4 instances of partial principal erosion, seen ~4 seed to $100M journeys, tracking ~29% XIRR across the portfolio. A couple of IPOs from the portfolio surely seem very much in line ahead.

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LP Tip #20 out of #50: To re-up or not to re-up A re-up refers to an LP making an additional investment in a fund where they previously invested. Before we dive in I want to share that there are reasons an LP may not to re-up which are not in your control. Here is a short list: ➡️ The LP may have evolved their strategy and needs to scale back the #️⃣ of funds they invested in.   ➡️ The LP was never set up to re-up in the first place. ➡️ The LP could be an individual that found themselves in a cash crunch and overly exposed to venture.  I'm assuming that when you got your investment that the LP explicitly told you they do re-ups. Please do not assume they do. My expectation is also that the LP dug in to properly underwrite the fund. 🏴 Re-ups are not automatic. An LP will have to re-underwrite each fund. The speed of the re-up also depends on how much work was done in the initial investment, who led the investment, level of confidence there existed when that investment was done, and current pipeline of funds. There are 4 flags that may cause an LP to walk away. 1️⃣ Partner Breakups/Changes and Team Turnover:  The biggest risk in Partnerships are whether the Partners will stay together. One LP gave me a framework on how to think through this issue that has stuck with me. Partnership is like a marriage. If one feels there is potential for a breakup, does one believe it will be an amicable breakup? Or, does one believe the spouses will never talk again? If it is an amicable split that is manageable. The Partners can find a way to support the fund. Then the question becomes whether the LP wants to back the Partner/s that remain.  If there is high team turnover. The LP will want to investigate because team stability is used as a proxy for firm sustainability and ability to scale. 2️⃣ Fund Does not Execute on what they Sold the LP:  The LP “bought” something specific and typically it is because they were missing this strategy or wanted exposure to a strategy for the portfolio they were constructing. An institutional LP will invest and write a detailed investment memo flagging all the things you said you were going to do and then go back and compare when you come back to ask for money. If for example you pitched a generalist seed stage fund and you show up asking for money sharing that you invested in deeptech at A that will cause alarm. The same can be said for the number of companies you promised to invest in or check sizes you wrote. If there are big differences LPs will want to know why. 3️⃣ Bad Actions  The fund manager/s does something that is unethical. This is a no go for an LP.  What if the situation is not clearcut? This is different for everyone and requires discussions b/w GP and LP, but most LPs don't want headline risk. 4️⃣ Continuous Underperformance  If it's early days an LP will look at some key indicators to see how you are progressing over time.

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A new era of deep tech has emerged. First time funds will raise “unheard of” amounts of capital to fuel next gen deep tech startups - producing outsized, superior returns for LP’s compared to the rest. Prudent investors will act on this data and shift investment strategy as LP’s or risk being left behind savvy wealth managers and CIO’s / FO’s who saw this trend begin 4 years ago.

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💰 Founders, are you wasting time and resources pitching to the wrong investors? 💰 In this podcast excerpt, David Forsberg, CFA from Ascent Energy Ventures shares a crucial piece of advice: Make sure your startup is truly venture-backable before you start seeking funding. 🎯 I've advised hundreds of startups that have raised billions in VC and venture debt funding, and I've seen firsthand the pressures founders face when growing their companies. 🌱 Listen to the full podcast for more game-changing insights. Link in the original Kruze Consulting post. 🎧 #startups #venturecapital #funding #entrepreneurship

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"Small funds may have more incentive to produce higher returns The alignment of incentives between GP and LP varies drastically based on fund size. Managers of smaller funds who have invested substantial personal capital demonstrate an unwavering commitment to lucrative returns, while managers at the helm of colossal funds, buoyed by significant management fees, may exhibit a diminishing drive. This constitutes an almost incontrovertible structural benefit of managing a small VC fund. Furthermore, fund managers of established funds may, over time, raise larger subsequent funds and grow more risk averse. This can present a sub-optimal outcome for their LPs and, by virtue, manifests a bad omen for VC investing." https://lnkd.in/gHKgea4e

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Exciting news! We just sent out the inaugural newsletter for Future Frontier Capital, our pre-seed venture fund backing frontier tech startups. As I hit "send," I realized how launching FFC parallels the path of the founders we support. Starting FFC has required the same passion, perseverance, and self-belief that drive entrepreneurs. Just like a startup, getting a VC fund off the ground demands relentless hustle—building the brand, perfecting the pitch, and networking tirelessly. There are constant challenges that test your resolve and endless hours of unglamorous work behind the scenes. And perhaps most daunting - the self-doubt, wondering if you're crazy for attempting something so bold. Pushing through that negative self-talk requires unshakable faith in your mission. Raising this VC fund reminds me of starting our IP strategy and patent analytics firm two decades ago. It’s a powerful reminder of the perseverance, creativity, and resilience needed to turn an ambitious idea into reality. This experience makes us more empathetic partners, ready to support the founders we back. Our work is just beginning, and this inaugural newsletter underscores our commitment to supporting frontier tech startups every step of the way. #startups #VentureCapital #EmergingManagers #Entrepreneurship #InnovationMindSet

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Building on the success of Rocket Studio with Simon Kirby and Pivotal with Dominic Joseph we decided to merge with Impact Counsel, led by the awesomely talented John D., Erim Jones and Robert Fok earlier this year. We’ve combined our significant and complimentary skills, experience and passion for growing amazing businesses to create a new breed of VC - Creative Capital Ventures Group (CCV). Fund 1 is focused on Sports, Media & Entertainment. Joining us on this exciting journey is media titan Tom Rogers (ex CEO Tivo & CNBC). We have also assembled a mighty team of Venture Partners bringing their expertise into our team, with the legendary Harvey Goldsmith leading our Immersive Entertainment category, and Cam Blackwood (Platinum award winning record producer) and his team at Rezonate heading up Music Rights acquisition. Creative Capital Ventures is designed to disrupt traditional VC models and accelerate the growth of innovative start-ups. We’ve already secured €18 million in commitments and are raising €35 million in total to fuel the next generation of game-changing businesses. What makes CCV different? •⁠ ⁠Founder-Led Expertise: Our team comprises serial entrepreneurs and operators who have built, scaled, and exited successful companies. We know what it takes to drive rapid growth. •⁠ ⁠Speed Scaler: Through our unique venture studio model, we’re not just funding companies—we’re actively accelerating their growth, shrinking the timeline from seed to exit. •⁠ ⁠Industry Focus: CCV focuses on high-growth sectors like Sports, Media, Entertainment, and Lifestyle, with a unique emphasis on IP acquisition to drive returns in stable asset classes. If you're interested in learning more about how CCV is reshaping the venture capital landscape, let’s connect!  More updates to follow! #VentureCapital #Innovation #Entrepreneurship #Startups #ScalingFast #CreativeCapitalVentures https://lnkd.in/eiuWVtvT

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We’ve been investing for a while but I formally closed my first fund just a few weeks ago. 97212 Ventures Fund I. It’s been an incredible journey from initially thinking through the idea and strategy, building the team, and of course, raising capital for the fund. Raising a first-time fund is incredibly hard, as there’s lots of competition for investor dollars… performance and strong relationships are keys for success. As Michael Bodley at PitchBook writes, high-net-worth individuals have backed emerging managers and micro funds, which have smaller investment minimums. Many of them are family and friends, who see this as not just an exciting investment opportunity, but also a way to support their peers and help them get started. I could not be more fortunate to have an incredible lineup of LPs with me at 97212. They represent every aspect of the industry - they are successful founders, operators, general partners of other VC funds, top executives, bankers, lawyers, doctors, family, and friends. I rely on them not just to back our companies, but when it comes to vetting opportunities, driving customer access, and sharing advice on how to become an amazing investor, consistently.   It’s been a blessing, and I couldn’t be more grateful for the support of our LPs. In the end, it’s about creating a win-win for everyone. That’s how you win. https://lnkd.in/etKXANe3

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Big things on the horizon, we are motivated and blessed to be at the dawn of a new age for the internet. Read more about our journey below or listen to the podcast: https://lnkd.in/eJeNhvVa

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Does the incoming administration adjust the landscape for VC in the South? Three trends for family offices and VC investors to consider: https://lnkd.in/dVhVvuND

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During our Annual Investor Day, we discussed a trend we’ve been observing in the VC market: Funds increasingly using “extra downside protection” to compensate for slow growth & inflated valuations of companies. We’re now starting to see some skeletons come out of the closet (and, ironically, they might be the driving force that will re-open the IPO window). First one out: ServiceTitan https://lnkd.in/eNMuPAe6 ps: despite the compounding IPO ratchet structure, I believe ServiceTitan is a solid company and, at the right price (factoring in all adjustments), it's a great deal!

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A bit of a tribute to founders / humbling reminder for investors at the start of '25: I've looked at thousands of early-stage fundraising decks over the past two years. In stereotypical fashion, I can typically tell within 30 seconds (2-3 seconds per slide) if I'm going to dig in, and if it's a company I'd be interested in investing in. Over the last two months I have been working on a project with a really cool company who is raising a Series A. I've been supporting on building the deck, data room, etc. So I've been fully back in the early-stage operator seat. And let me tell you. It is SO MUCH HARDER than investing. I sent the deck to some investor friends for feedback. I really value their opinion. Their feedback was stuff that I tell founders all the time about their decks. But I flat out missed it when putting this deck together. Startups are so much easier said than done. It's really hard being in the arena. Founders live there every day. Cheers to you.

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Well-written and sourced article describing what's going in seed-stage venture market. At 9point8 Collective we tend to orbit the seed-stage (both ideating and developing companies to reach seed and helping post-seed companies refactor and scale in anticipation of A) and for many companies it's a critical inflection point which determines their long term success or failure. The main takeaways I was able to gather: 1️⃣ Many startups that raised seed rounds in 2021-2022 are struggling to secure Series A funding due to tighter market conditions and increased investor expectations. 2️⃣ Seed investors are becoming more cautious, leading to longer diligence processes and a preference for startups with strong traction or experienced founders. As a result, valuations have stayed relatively high even as deal flow reduces. 3️⃣ Startups are adopting various strategies to navigate this challenging environment, including cutting costs, raising bridge rounds or convertible notes, and M&A/acqui-hires. 4️⃣ Despite the challenges, there are opportunities for both startups and investors in this new landscape, particularly for those who can adapt to the changing market conditions. Investors are accumulating dry powder -- and with rates on the decline -- will be looking to deploy into companies with stronger fundamentals than their 2021-2022 counterparts.

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