Deepak Chhugani

I remember the pitch deck. It was 2021, and Baubap, a Y Combinator startup, was disrupting the financial landscape in Mexico with their unique approach to microloans. They had impressive traction, but the valuation was high. Most investors hesitated. But I saw something different: a company with explosive growth potential, fueled by a data-driven approach and a strong team. I knew I had to invest. Fast-forward to today, and my investment in Baubap has grown 32x in just three years! On this week's Lobster Talks Podcast - Y Combinator Secrets, I share the insights behind this successful investment, outlining my investment criteria and why I prioritize growth and traction over sky-high valuations. Learn how you can: - Identify top-performing Y Combinator companies. - Maximize your chances of co-investing in these high-growth startups. - Unlock the "YC premium" and achieve greater investment returns. Watch the full episode now to discover the secrets behind my investment strategy and how you can find your own unicorn: https://lnkd.in/eUkUAYF4 #ycombinator #venturecapital #investing #startup #growth #unicorns #lobstercapital #baubap #fintech

8

10 Harvard-Founded, YC-Backed Unicorns Worth $141B 🦄 According to YC's website, the combined valuation of YC-backed startups is $600B. This means that ~1/4 of YC's value has been created by Harvard founders--Incredible! Stripe, Airbnb, & Rippling drive the power law (93% of value) Btw, who's in Boston this week?! Let's catch up -- Phoenix Fund invests in pre-seed and seed stage startups founded by students and alumni of Harvard/HBS

51

5 Comments

Last month, Uncork Capital celebrated its 20th anniversary with a jubilant gathering attended by 420 guests, marking two decades of success in the venture capital realm. Over the years, the firm, alongside industry peers like First Round Capital and Felicis, has witnessed remarkable growth, now managing billions of dollars in assets. This expansion reflects the flourishing landscape of venture capital, with the industry experiencing exponential growth in investment. Moreover, positive shifts in VC norms, such as the evolving attitudes towards board seats, underscore a commitment to providing tailored support to startups, enhancing their growth prospects. Amidst discussions surrounding sectors like AI, optimism prevails, emphasizing a steadfast dedication to investing in innovative ventures with lasting impact. Read More Here: https://lnkd.in/efN6-Spd Branded Hospitality Ventures Jeff Clavier Susan Liu Ashley Cravens Tripp Jones Sarah Du Andy McLoughlin Amy Saper #innovation #technology #management #venturecapital #startup

5

Among the many inefficiencies weighing on the heavy construction sector, equipment maintenance management is one of the more costly, particularly for heavy equipment dealers who bear the primary responsibility for managing the maintenance of the equipment they sell. We are pleased to have Digital Iron join C2V's portfolio. Ditial Iron seamlessly integrates machinery manuals, CRM data, and customer ERP systems to create a centralized source of equipment specifications, maintenance parameters, and field usage data and provides a natural language interface for researching these issues (the gen AI piece). Once dealers have established the cause of each issue, Digital Iron will automatically check dealer inventory and third-party suppliers for availability, lead time, and price of the necessary parts. This information can then be instantly shared with customers for approval and immediate order of needed parts. In addition to saving hours (often days) identifying and sourcing replacement parts, Digital Iron’s AI models also compare equipment usage information to manufacturer useful life/replacement recommendations for each component and prompt dealers to proactively suggest parts replacements to customers, allowing them to monetize all of the additional (and substantial) post-sale revenue for each piece of equipment they sell. https://lnkd.in/e2QJeQut #ai #construction #investing

13

1 Comment

VC world can be cruel and unforgiving. With LPs more and more pushing for distribution and liquidity, fund managers in the mid-tenure of their fund with zero DPI and TVPI around 1.0 would have much more difficulty to raise new fund. The ability to fundraise is one of the crucial indications and validation of the job for VCs. Key highlights from the article below: Thirteen percent of venture General Partners (GPs) no longer plan to raise another fund due to LP pullback. This rate has doubled since H1 2023 when only 6% of GPs had no plans for another fund. Nearly 44% of venture firms surveyed in mid-2023 had previously postponed their fundraising plans due to concerns about overexposure to the asset class. Many emerging managers entered venture capital in 2019 or 2020 when the LP market supported more funds. However, slow exits in the first half of 2024 have led to challenges in raising second funds without significant cash distributions to LPs. Some venture GPs are now actively participating in the secondaries market to demonstrate returns. Despite the challenges, GPs who secured fresh capital remain optimistic. They expect the 2023 and 2024 vintages to be the strongest return years since 2019. 🚀📈 #VC #VentureCapital #Fundraising #LPs #EmergingManagers #TechInvestment #MarketTrends #CountdownCapital #IndustryInsights #JetVentures #JetInvestment‍‍‍‍‍‍

23

Every VC claims they have an edge, but from where I sit as an LP, it’s clear: the next generation of fund managers will need stronger arguments than 'working very hard' or 'being helpful for founders' to raise money. The best fund managers will set themselves apart with these three non-obvious skills: 1. Cultural fluency - Some of the best startups come from immigrant founders, but they’re navigating a system that isn’t always built for them. VCs who know how to build trust, understand their challenges, and support them where it matters will unlock incredible opportunities. 2. Downstream sales: There’s more money than ever chasing top founders, and the best deals are going to the VCs who founders actively want to work with. It’s not just about pitching; it’s about being the one they call first because they know you’ll add real value. 3. Value-add 2.0: Founders don’t need more generic advice. The best VCs create real pull by building opportunities—whether that’s connecting the right dots in their portfolio or unlocking new markets—that founders actually want and can’t find anywhere else. This is what LPs should focus on when backing funds—it’s what separates good from great. ---- Interested in investing in VCs & startups? let's connect.

381

99 Comments

Summary: Keith Rabois, managing director of Khosla Ventures, is on a mission to turn Miami into the next Silicon Valley and has been actively promoting the city as a tech hub. Despite some challenges and opposition, Rabois remains optimistic about Miami's potential and the growth of its tech ecosystem. Key takeaways: Keith Rabois is determined to make Miami the next Silicon Valley and has seen progress with a growing number of seed investments in the city. Khosla Ventures, where Rabois works, has made multiple investments in Miami, including one into a startup aiming to "reinvent education." Rabois continues to split his time between Miami and San Francisco, but believes that Miami offers a better quality of life and potential for building a thriving tech community. Counter arguments: Some big name investors, such as Andreessen Horowitz, have pulled out of Miami, suggesting that the city does not offer the same opportunities as other established tech hubs. Miami still has a relatively small share of total U.S. seed investments (2.6%-3.5%) which may indicate a lack of resources and opportunities compared to other cities. #venturecapital

2

Today's guest on Business Podcast by Roohi is the first repeat guest on the podcast Had a super interesting discussion with Juan Abundes: Solo GP at Aito Capital In this podcast we cover: 1. GP’s leaving to start their own funds 2. Creative ways of liquidity Thanks to Ana Maury Aguilar for making the intro to Juan! Link to listen to the episode- in the replies

8

3 Comments

For LPs, it’s returns. For founders, it’s scaling. For VCs, it should be relationships. Why? The best investments come from trust—not pitch decks. Founders want partners, not just checks. And LPs back VCs who nurture relationships that yield consistent returns. “Capital is replaceable. Relationships compound.” #VentureCapital #FoundersJourney #LPs #InvestingInTrust

5

As of today, founders have 70 days to speak to investors. Founders have until the 15th of July to build relationships with investors and pitch to them before they go to Ibiza for summer vacation 😁 I believe that 70 days is more than enough to build a relationship and possibly raise capital from an investor. Prateek Sanjay says that the formalities could be a thing of the past and pitching to investors could happen anywhere and anytime. On average it takes from 3 to 9 months to raise a round of financing, and Stéphane Nasser delves deep into the details on strategies that could be employed by founders to do so. Certainly, booking a flight ticket to Ibiza to pitch to investors is the way to go if your investor pool spends their vacation there and I know founders who did this, but not all founders can. All I am saying now is the time to start these conversations with investors 😄 #startups #venturecapital #startupfunding #startupinvesting #earlystagestartups

11

Founders’ agreements are like prenups for startups—most founders avoid them, but they’re essential. Daniel Ospina and I recently revamped our co-founder agreement at Pygma, covering everything from carry, salaries, and conflict resolution to non-competes, side hustles, and performance metrics. What started as a ‘business discussion’ turned into one of our best conversations as co-founders. This process forced us to align on the tough stuff: how to handle leaving founders (good leaver vs. bad leaver), conflict frameworks, and more. The result? A stronger partnership and even more admiration for my co-founder. Building something as ambitious as Pygma isn’t easy, but having the right person by your side makes all the difference. If you haven’t tackled your founders’ agreement yet, don’t wait. It’s not just paperwork—it’s an opportunity to build trust and set your foundation for success. Hopefully, my wife Emilia González Casabianca doesn’t get jealous. If you need help feel free to reach out! I'm happy to help in any way.

89

15 Comments

Tucano completes the sale of all of its shares in Sundwiger Messingwerk to KME Acquired in November 2020 as a corporate carve-out, Sundwiger Messingwerk’s EBITDA increased more than sevenfold under Tucano’s ownership. Founded in Hemer, Sundwiger Messingwerk, with over 350 employees, generates annual revenues exceeding EUR 200 million. Its products, widely used across industries including automotive, electrical, and telecommunications, have established the company as a leader in copper alloy manufacturing. Acquired by Tucano and fellow investors in November 2020 via a carve-out from the Diehl Group, Sundwiger Messingwerk was transformed into a highly profitable enterprise under Tucano’s ownership. Effective January 6th 2025, Tucano announces the successful sale of all of its shares in Sundwiger Messingwerk, a leading German manufacturer of high-quality copper alloys, to KME Group, one of the world’s largest producers of copper and copper alloy products. Special thanks go to the management that has relentlessly and passionately driven the transformation of Sundwiger Messingwerk over the past years!

62

5 Comments

Allocate just released an analysis on a dataset of 253 venture funds, with only pre-2019 vintage years being included. The analysis shows a clear negative correlation between high risk / high reward investment profiles and size of venture fund, i.e. the smaller the funds, the higher the performance, but also the higher the risk. Two ways that LPs can mitigate the higher risk of smaller funds: 1. Diversify across more emerging managers, and 2. Invest across vintages with said managers. Here are the details: Small Funds (0-100MM): Mean TVPI: 4.3 Standard Deviation: 2.4 Median Portfolio Companies: 26 Mid-Sized Funds (100-250MM): Mean TVPI: 3.6 Standard Deviation: 2.0 Median Portfolio Companies: 24 Mid-Large (250-500MM): MeanTVPI: 3.0 Standard Deviation: 1.2 Median Portfolio Companies: 35 Large (500MM+): Mean TVPI: 2.7 Standard Deviation: 0.9 Median Portfolio Companies: 43

33

1 Comment

Something to consider when a VC tells you “pass”. Is to understand why? A “pass” is for that moment in time. Things change in VC and VC firms also change. Some examples- We don’t do Seed stage. Then 2 years later they launch a Seed fund. We are less interested in a path to profitability, 2 years later…we care about path to profitability. The Principal at a firm leaves and joins a firm that is a great fit. The goal posts are constantly changing. It’s tough, but keep up with the changes. Stay in touch with VCs and build relationships along the way.

1

Startups live on the edge of two sharp cliffs: One called ambition, and the other called runway. As founders, we dream big, but the harsh reality is simple: without enough cash to keep the wheels turning, dreams don’t matter. Let’s talk about two critical milestones: securing your runway and reaching break-even. 👉 The Runway Reality Fundraising isn’t just about getting money; it’s about buying time. Time to learn. Time to adapt. Time to survive. 1- Why 18-24 Months? Investors know this is the sweet spot. It’s enough time to test hypotheses, refine your product, and uncover what works. 2- Stretching Every Dollar: In the early stages, every dollar spent must lead to an insight. Marketing experiments, product tweaks, customer feedback loops—everything should be about learning, not just scaling. 3- Avoiding the Burnout Cliff: Running out of cash forces desperate decisions. That’s why managing a runway is about staying calm under pressure while maximizing every opportunity to prove your concept. 👉 Break-Even: The Calm After the Storm Reaching break-even is a game-changer for startups. It’s the moment when the business sustains itself—when survival is no longer tied to fundraising. 1- Why It Matters: Break-even provides stability, allowing founders to focus on growth, innovation, and strategic decisions instead of survival. Your investment burn rate is close to Zero. It means every dollar you spend - you spend on the scaling hypothesis. 2- How It Shapes Decision-Making: Once you’re break-even, you gain the flexibility to take calculated risks and experiment without fear of sinking the ship. 3- The Psychological Win: For founders, reaching break-even isn’t just a financial milestone. Before Business was on Founder/s back. Now it’s the reassurance that the business can stand on its own two feet. Does it mean that challenges are over? Hell no. ⏰ Balancing the Two The real challenge? Knowing when to push for aggressive growth versus when to conserve resources for the long haul. ✅ Smart Spending: Fundraising shouldn’t just be about hitting vanity metrics. It’s about finding product-market fit, refining operations, and scaling sustainably. ✅ Saying No to Pressure: Investors might want to see exponential growth, but founders need to stay grounded. Remember: revenue without sustainability is a house of cards. As founders, our biggest battle isn’t just building the product or convincing investors—it’s managing time and resources wisely. What are your strategies for balancing ambition with financial discipline? Let’s exchange the biggest lessons in it. #Startups #Fundraising #BreakEven #RunwayManagement #Entrepreneurship

10

3 Comments

Fundraising advice for new VC fund managers: Increase your minimums 2.5x-5x. This often leads to better results, as many first-time LPs tend to do the minimum. Remember, you can always make exceptions for "strategic" investors.

21

1 Comment