Matt Salefski

At $10M in annual revenues, we transitioned from doers to thinkers at Grasshopper. This enabled my co-founder and me to leave Grasshopper, and focus on other ventures, the day it was acquired. The management team stayed on and seamlessly continued to run the business. I think of it as our biggest achievement. A common challenge many startups encounter: Growth outpacing the management team's capabilities Company culture, structure, and strategy doesn’t evolve with the business. Founders continue to micromanage everything. Just like the early days. They get stuck in the weeds (daily operations) and lose sight of the broader vision. The solution: Adapt as your business grows. Transition towards becoming thinkers than doers. Delegate tasks. Empower your employees. Set expectations. Track performance. But don't micromanage. A business that doesn’t run without you isn’t an attractive M&A opportunity for buyers. #entrepreneurship #venturecapital #startup #mergers #acquisitions Serial Entrepreneur & Investor Helping Startups Become Unstoppable – David Hauser

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Have you ever noticed that the word Uber is both a noun and a verb? I have spent years studying shared economy, supply chain and logistics. The first and last mile space has proven profitable and lucrative but also fickle and unpredictable. And I love it. In the world of Yahoos and Googles, Ubers and AirBnBs, a person could argue that branding has very minimal impact on the potential success of a company. I have also spent years studying branding, marketing, product management and customer experience. People love all-inclusive. Sometimes when you're dealing with consumers, a little bit more goes a long way. In WebVans defense, while I'm sure they had the most advanced inventory management system, at the time, I'm sure they didn't have automated storage and retrieval, they didn't have the 5G ecosystem, they didn't have RFID and IOT, they didn't have shared economy and they obviously believed, like Jeff Bezos, that because they had figured out how to deliver a book to your door, they could innovate the entire supply chain. And I love the tenacity. They tried to create an all inclusive customer experience. But like, what happens when the name just kinda sucks? Is it possible that the plateau is being caused by a crappy name? Why would people think Cost Plus is a company that would give them a discount on pharmaceuticals? Why would people think WebVan or GoPuff is the best solution for getting things delivered? Branding is part of the customer experience. It's where the brand loyalty begins and creates the potential for evangelism. Don't forget that part.

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Kudos to aifleet on its $16.6M raise to fund growth in tech-enabled trucking. Its investors include Heron Rock Volvo Group Venture Capital, Obvious Ventures, Ibex Investors, Compound, Winthrop Square Capital and Cooley LLP. Aifleet is doing something different. Most other startups in this field are focused on pure technology. They have 204 drivers and power units. Will they be able to make it work with a combination of trucking and technology? https://lnkd.in/ePytPHx7

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Summary: Trucks Venture Capital has announced a new $70 million fund to support early-stage startups in the transportation industry. Led by co-founder Reilly Brennan, the firm plans to invest in a diverse range of companies, including those working on autonomous vehicle tech, electric air taxis, and mobility data platforms. This is the firm's largest fund to date and its investment strategy has evolved to focus on great founders rather than specific sectors or ideas. Key takeaways: Trucks VC has a new $70 million fund to invest in early-stage transportation startups. The firm's investment strategy has shifted to focus on great founders rather than specific sectors or ideas. Previous investments from the new fund include charger installation-as-a-service startup Treehouse and zero-emissions jet aircraft company JetZero. Counter arguments: Some may argue that focusing on great founders rather than specific sectors or ideas may limit the firm's potential for success. The transportation industry is constantly changing and evolving, making it a risky investment for any venture capital firm. #startups #venturecapital #transportation

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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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As someone who is in the middle of two early stage startups, I found this to be a good article framing the importance of Product-Market Fit (PMF). "Hair on Fire", "Hard Fact" and "Future Vision" are the three different archetypes noted and, for a startup, important to figure out up front (along with founder-market fit). However, chances are somewhere else in the world someone is or wants to launch something similar as your startup so ruthless execution is paramount in order to generate the velocity needed to stay ahead of everyone else. #productmarketfit

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Startup community building takes decades and often progress is hard to measure. Every now and then, however, you get some obvious signs. The SMB.co story (link below to learn more!) is one such example. Veteran startup builders, coming together to co-found a company, backed by serial tech founders, and kick-started by a local accelerator. Much work ahead, but a decade+ long journey to get the flywheel cranking in #startupcincy is showing signs of life!

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What is the difference between ConstructionTech and PropTech? We find out today from Patric Hellermann, GP of Foundamental. Our conversation dives deep into: 👉The various segments shaping construction tech, including architecture, engineering, construction, and supply chain advancements. 👉Why outcome-based business models are crucial for success in this space. 👉How AI and data infrastructure are playing a pivotal role in construction. 👉... and more that I invite you to listen in our latest podcast episode. Tune in on EUVC! 🎧 https://buff.ly/3x1VKtC #venturecapital #angelinvesting #startupfunding #fundraising #europe

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The practical application of AI to help manufacturers eliminate unplanned downtime is key to our current and future offering. We do not label ourselves as purely an AI company, as that is one component of our value delivery, but I can say we have a world class team of AI Engineers building incredible tech alongside a team of world class Condition Monitoring Engineers. I am bullish and excited to see how Central Ohio emerges as a global AI hub with Intel as an anchor. cc: Brian Graham, Seyed Mohammad Parvasi, Ph.D., Jaidev Krishnan, Matt Longhouse, Chris Berry

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The tide is turning. Companies that understand RISK is the only certainty are prioritizing #reshoring to diversify their manufacturing value chains. https://lnkd.in/eEyC--ED

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Halle Kaplan-Allen and I will be chatting with Ali Hamed tomorrow about sourcing LPs. You can RSVP here: https://lnkd.in/edYZhKrA Ali wrote this excellent tactical piece on networking that is well worth a read for anyone networking their way to capital: https://lnkd.in/eZ_2f_4x This event is presented by Sydecar, a frictionless deal execution platform for venture capitalists. By pioneering a standardized approach to private investing, they enable capital allocators to identify and back entrepreneurs who are changing the world. Their platform reliably handles back-office operations, automating banking, compliance, contracts, tax, and reporting so that customers can focus on making deals and building relationships.

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Why Buying Your First Business is the hardest & Financing The Fear is Being seen as too risky by lenders and investors. The Solution: Prepare a solid business plan with detailed financial projections. Work with a financial advisor to enhance your credibility. Consider alternative financing options like SBA loans or seller financing.

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There's a new wave of ConTech startups directly competing with incumbents. Instead of selling their solutions to the industry, they are vertically integrating to become tech enabled contractors. Over 10 years ago, a VC famously proclaimed ‘Software is eating the world.’ They argued technology driven businesses will disrupt industries pointing to Facebook and Netflix as examples. While these companies have changed the way we live, they have yet to disrupt industries like Construction or Real Estate. The truth is the physical world needs physical solutions. Take Ento, for example. They were a workforce management solution for blue collar businesses assisting with scheduling and tracking labor. It created ~8-15% efficiency gains for subcontractors which was great… Except that theoretically the software should have produced over 50% gains. So what happened to the ~35%? They realized that selling solutions doesn’t guarantee contractors will fully adopt them. For founders who care about improving construction, it’s a frustrating realization. And now they’re asking, what if we were the contractor? Last Week in ConTech, Treehouse raised $16.6m in Series A funding. They call themselves the ‘Electrical contractor for the 21st century’ where Trades and Software live under one roof. Their software enabled installation platform for electrification projects (think EV charging or home electrification) gives them an efficiency moat. It allows users to quickly receive pricing estimates, perform load calculations and generate plans for permit filings. And their electricians use it to provide real-time updates during installation. A service incumbents don’t offer. It’s not the first time I’ve seen the model. Back in 2022, Roofer.com which uses drones and AI to undertake roofing inspections acquired a roofing contractor to vertically integrate. If I were an incumbent I’d be nervous. The competitive threat has never been from peers or smaller contractors. It’s from new entrants to the market, deeply embedding technology out-competing on price and efficiency. —--- Follow me and Last Week in ConTech to stay up to date with the latest construction tech news, policy changes and startup funding trends. Ento example from Vertical Integrators by Packy McCormick

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Is Bolt’s new $450M raise bold or reckless? I just saw this news (https://lnkd.in/eq9PxW8U)- Ryan Breslow is back at the helm, driving Bolt.com to a $14 billion valuation, not long after a $300 million stock buyback valuation that crushed the spirits of their employees who exercised their options at their last valuation. I'm all for founder-led companies with a little dash of crazy, but I don't like the smell of this new raise at all This dramatic turnaround, fueled by international investors, raises more questions than confidence. Breslow’s move feels more like an Adam Neumann-inspired hype play than a true growth strategy. The focus is on challenging Stripe and fueling FOMO, not on sustainable fundamentals. For founders and investors, this is a reminder: don’t let flashy narratives blind you to the reality of valuations. I’m all for supporting founder-led companies—it takes a little crazy to be a founder at this scale—but this one might be a step too far IMO. What’s your take on this announcement? All hype or the next Stripe killer?

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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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I really enjoyed recording this episode of The Digital Industrial Podcast with Ty Findley. We talked about common misconceptions for deep tech, the "Why Now" for the category, and differences between investor diligence for deep tech and traditional tech. https://lnkd.in/eKtwjauu

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I enjoyed going on Nick Telson-Sillett’s podcast, Pitch Deck by Forward Pursuit. Nick is a serial founder and investor (founded and exited DesignMyNight) so knows both sides of the table which always makes for an enriching chat. Some things we discussed: - The perceived power dynamic between VCs and founders can hinder productive conversations. - A compelling product demo can significantly influence investor interest. - Founders must focus on solving real customer problems to succeed. - Hiring standards are crucial for building a successful startup team. - Behavioural roadblocks can prevent the adoption of new solutions. - Validation from potential customers is key for pre-revenue startups. - The early-stage funding landscape has become more efficient and selective. - Pace of execution is a critical factor in attracting investment.

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Huge opportunity