Patrick Curtis

🌟Innovative VC Firm Overcomes Exits Drought with Secondary Sales🌟 ⛵Navigating a challenging landscape where exits are scarce, Santa Barbara Venture Partners (SBVP) has pioneered a novel approach to sustain its growth and attract investors for its second fund: secondary sales. Instead of waiting for traditional exits like IPOs or acquisitions, SBVP opted to sell shares of its portfolio companies, demonstrating its ability to generate returns for investors and stand out in a competitive market. 🎤According to Dan Engel, founder and managing partner of SBVP, these secondary transactions have been a game-changer, sparking investor interest and bolstering the firm's credibility. By leveraging its recent successes, including a lucrative stake in sports-betting company DraftKings Inc.' acquisition of digital lottery app Jackpocket, SBVP seized the opportunity to return profits to its limited partners (LPs) and pave the way for its second fund. 💡Engel highlighted the challenges faced by young VC firms in raising subsequent funds, particularly amid a downturn in exit activity and heightened investor scrutiny. With traditional exit routes becoming increasingly elusive, the pressure is on for firms to demonstrate tangible returns and establish a track record of success. ✨"For us, secondary sales have been a game-changer. They've helped us return profits to our LPs and attract investors for our second fund," said Dan Engel. 💰For SBVP, the decision to pursue secondary sales was driven by the need to provide liquidity to LPs and validate its investment thesis in the eyes of prospective investors. By strategically offloading portions of its holdings in high-performing portfolio companies like Bark Technologies and Rad AI, SBVP not only generated substantial returns but also bolstered investor confidence in its ability to deliver results. ⚠Despite the complexities and potential stigma associated with early share sales, Engel emphasized the importance of prioritizing investor returns and seizing opportunities to unlock value for stakeholders. With a focus on profitability and transparency, SBVP remains committed to its mission of delivering sustainable growth and maximizing returns for its LPs. 🔍 "Returning profits to our investors is our top priority. By strategically selling shares, we're proving our commitment to delivering results and driving value for our stakeholders," added Engel. As SBVP continues to explore secondary transactions and expand its investor base, the firm stands as a testament to innovation and resilience in the face of market challenges. 🚀 ✅ Looking to raise capital for your #fund and increase the international pool of your LP #investors?   🤝 Need warm #LP introductions?   📝 Selling #secondaries to increase liquidity?   🧐 Looking for co-investments?   ▶ G+QUANT's link for inquiries and fund decks: https://lnkd.in/gjC_EuTE #VCInnovation #SecondarySalesSuccess #InvestorReturns #ValueCreation 

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VC Market Update: Riding Out the Post-Boom Bumps. 2021's high-flying valuations and growth have given way to a more complex reality. With longer private timelines, tough exit markets, and capital tightness, startups face unique challenges—but also fresh opportunities. For those navigating today’s VC landscape, strategic planning is key. Whether it's balancing growth with capital efficiency or exploring secondaries smartly, there’s a path forward. And with boosts from AI and future rate cuts, brighter days could be ahead!

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💡Benchmarks in the investment industry serve as a standard for measuring the performance of securities, mutual funds, or investment managers. They provide a reference point for analyzing allocation, risk, and return of a portfolio, enabling investors to make informed decisions. Thanks Peter Walker for keeping us all informed!! Can’t wait for this!! Follow and get on the waitlist for this one! #benchmarks #fundraising #Capitalraise #founders #womenshealth #femhealth #medtech #wellness

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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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2 active fund offerings from the Echelon Fund team who have been killing it ever since their cohort at The Fund School. https://lnkd.in/gVd-dhfY sidecarportfoliofund.com This presentation of Echelon Fund, LLC and Sidecar Portfolio Fund (the “Company”) is for information only and shall not constitute an offer to buy, sell, issue or subscribe for, or the solicitation of an offer to buy, sell or issue, or subscribe for any securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The information contained herein is subject to change without notice and is based on publicly-available information, internally developed data, third party information and other sources. The third party information has not been independently verified. While the Company may not have verified the third party information, nevertheless, it believes that it obtained the information from reliable sources and has no reason to believe it is not accurate in all material respects.

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Having a Cars and Capital event tomorrow in Southern California with Oren Klaff. If you want to join message me. https://lnkd.in/gDQ4D39u Oren Klaff Bridger Pennington #InvestorEvent #FamilyOffice #InvestmentOpportunity #CarlsbadEvent #PrivateEquity #WealthManagement #InvestmentConference #CapitalRaising #NetworkingEvent #IndustryLeaders #FinancialGrowth #InvestorsMeetup #WealthBuilding #BusinessGrowth #InvestmentForum

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SPVs → just a step in the overall VC Fund Manager Goal It is my belief that many people start syndicates to go on and raise a traditional venture fund. Most folks want to raise capital from institutional/higher net worth LPs, have capital they can deploy at their discretion, and also be able to make a living and build a true VC firm with management fees (remember, syndicate management fees are minimal). After all, this is how traditional venture capital works and what many, I would say most folks in venture, strive to do. It should not come as a surprise that many syndicate leads start with the SPV ecosystem to build a track record and an LP-base to level-up to go on and raise a fund, where the GP can have full capital deployment discretion and take larger management fees. Most syndicates are likely unable to raise a fund, therefore, only the higher quality syndicates put in the work to position them to go on to raise a fund. Even though I've been excited to double/triple down on syndicates, I equally can understand the rationale to wanting to build a traditional venture fund, and institutionalize your firm. As a reminder, we see many folks enter the syndicate ecosystem because it is a good place to establish yourself as a potential fund manager. Starting with SPVs allow for: 1. Faster way to start investing with outside capital 2. Way to build a track record (with outside capital) 3. Gain experience w/LPs & learn to operate (in some ways) similar to a traditional fund 4. Start building relationships with potential fund LP’s, VCs & founders. 5. Better pricing & flexibility of an SPV versus a traditional Venture Fund. Those who leave the syndicate ecosystem to raise a venture fund have graduated from the syndicate ecosystem (i.e the minor leagues) into the big leagues. So, while they may be gone (or less active) in syndicating deals, they have made it to the destination they were looking to achieve. Some of us like living in the SPV grind though... -- Powered by Sydecar, Last Money In is the most actionable Venture Capital newsletter with 50k subscribers. Written by Zachary Ginsburg and Alex Pattis, the global syndicate leaders with 800+ VC SPVs closed.

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VC platform teams rarely add meaningful value to portfolio companies. They’re mostly a tool for GPs to justify raising larger funds and collecting higher management fees.

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Excited to join industry leaders in LA to explore the future of non-traditional investments. I’ll be speaking at the Private Wealth Southern California Forum, hosted by Markets Group, on 12 November. Together, we’ll discuss how innovations in alternative assets are reshaping the investment landscape. Thank you to Markets Group for providing the platform to explore these transformative developments. #PrivateEquity #Innovation #Technology #Entrepreneurship #VentureCapital #Investing #Finance #Alternatives #Startups #Speaker

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As we approach year-end, here's a helpful guide for General Partners and Limited Partners explaining: - What gets taxed? - What isn't taxed? - Scheduling K-1s - How venture fund earnings are taxed - VC fund write-offs - How Carta can help Check it out below (it's a quick read)!

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3/4 of PE investors and execs surveyed agree that culture is critical to portfolio company success... ...yet only about 1/4 of them actually evaluate a target company's culture. (credit: Alix Partners) If you're in the 50%+ of PE folks that believe in the importance of culture, but aren't actually evaluating it, here's how to close that gap. → What is the culture? (I can help with this) → Which parts of that will support our value creation agenda? → Which parts could get in the way? → What needs to happen to remove those cultural roadblocks? Enjoyed hanging out with Omeed and Joe on The SaaS Buyers Club podcast! #PrivateEquity #Culture #ValueCreation

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Interesting post, Frank Rotman . I'd argue that rather than try to use your markups as traction for raising funds 2, 3 and 4 , emerging managers should consider helping their startups get earlier liquidity via suggesting listing on growth exchanges like the Toronto Stock Exchange, the LSEG (London Stock Exchange Group) or the ASX . DPI > IRR or TVPI when it comes to LPs. A VC that returns >2x in 7 years to LPs is going to have a much easier time raising the next fund than a fund with an IRR or TVPI of whatever. The entire vc industry has drank the kool aid that companies should be doing >$300m in ARR before listing. The LP community needs / wants liquidity before the 12 to 14 years its currently taking to IPO in the US, however. Startups can list on the above exchanges doing $20m in revenue with 30% YoY growth, they don't have to deal with Sarb Ox compliance and follow on raises are orders of magnitude easier for a listed company. Why? There's so many more public market investors than private market investors. The only other option for Emerging managers to stand out is by getting DPI via selling secondaries to a fund like Practical Venture Capital Chris Mayo, CFA Neil Shah Delilah Panio Amit Verma Dave McClure Aman Verjee, CFA Karin Tenenboim

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VCs have a playbook... But it’s not about trends. It’s about fundamentals. Here’s what they’re looking for: 1) Strong Founders Passion, resilience, and vision win every time. 2) Innovative Products Solve real problems and have a unique edge. 3) Market Potential Show there’s a large, growing market to capture. 4) Sustainable Revenue Prove you’re built for long-term growth. 5) Scalability Can you grow fast and keep up with demand? Founders who understand this are ahead of the game. Focus on these 5 elements, and VCs will notice.

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Well done, Frank. Would you consider posting these as articles on LInkedIn too? I lost access to Twitter (X) and have not been able to get any help from their support desk - I know a few others who have had the same experience. This is a topic Lisa Morales-Hellebo and I think about a lot as we build REFASHIOND Ventures: The Industrial Transformation Fund.

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What sets New York startup ecosystem apart for CFOs? New York isn’t just the financial capital of the world it’s a powerhouse of tech innovation and entrepreneurship. For CFOs navigating this unique landscape, the challenges and opportunities are unlike any other. What makes NYC’s startup ecosystem so distinctive for finance leaders? 🤔Startups in NYC operate in a high stakes environment where the race isn’t just for market share but also for top talent, coveted funding, and the ever elusive spotlight. A CFO in this arena must be more than a numbers expert, they need to be a strategic thinker, quick decision maker, and proactive innovator. 💸In NYC, CFOs benefit from unparalleled access to a dense network of investors who truly understand the intersection of finance and technology. This proximity to venture capitalists, private equity firms, and angel investors with a keen eye for innovation creates fertile ground for securing funding and scaling operations. 🌱From skyrocketing real estate prices to competitive talent acquisition, the cost of doing business in New York can be staggering. For CFOs, managing these expenses isn’t just about cutting costs, it’s about optimizing resources to fuel sustainable growth without sacrificing innovation. 👳🏾‍♂️New York’s vibrant cultural and professional diversity isn’t just a talking point, it’s a competitive advantage. The city draws talent from across the globe, offering CFOs the opportunity to build dynamic, multifaceted teams that drive creative problem solving and cutting edge strategies. 🗽CFOs in NYC straddle two worlds, the discipline and precision of Wall Street and the nimbleness and innovation of Silicon Alley. Balancing these contrasting yet complementary mindsets is what makes financial leadership in New York uniquely rewarding and distinctly challenging. New York City’s startup ecosystem demands CFOs who are more than financial stewards they’re strategic architects, cultural leaders, and operational innovators. For those who can master the unique demands of this environment, the opportunities to leave a lasting impact are limitless. #nyc #cfo #startup #tech

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🚨 California Bill AB-3129: A New Era for Health Care Transactions? 🚨 Thanks for the detailed note: Kathryn Edgerton, Deborah Daccord, Karen S. Lovitch The recently introduced California Bill (AB-3129) aims to curb the price increases and lower service quality often linked to such acquisitions. Key Highlights: 🔸 Mandatory Reviews: Private equity groups and hedge funds must notify the AG 90 days before any transaction involving a health care facility or provider group. The AG can extend this period by 45 days, potentially delaying transactions. 🔸 Conditional Approvals: The AG can grant, deny, or impose conditions on transactions if they are likely to have anticompetitive effects or significantly impact access to health care services. 🔸 Prohibitions on Management: The bill restricts physician and psychiatric practices from entering management agreements with private equity or hedge fund-controlled entities. Impact on Digital Health Adoption: The increased scrutiny could slow down the adoption of digital health solutions, as transactions involving tech investments may face delays and additional costs. However, it could also ensure that such innovations prioritize patient care over profit. Cost of Healthcare Provision: While the bill aims to control costs, the additional administrative burden and potential delays might increase operational costs for health care providers, which could be passed on to patients. Consolidation by PE Firms: The bill could deter private equity investments, slowing down the trend of consolidation in the health care sector. This might benefit smaller, independent practices but could also limit access to capital for necessary upgrades and innovations. 🤔 Should Other States Follow? While California's approach aims to protect patients from the negative impacts of unchecked acquisitions, it also introduces significant regulatory overhead. Other states should consider the balance between oversight and operational efficiency, learning from California's experience. This bill is a double-edged sword: aiming to protect patients but risking increased costs and delayed innovation. Other states should watch closely to determine the best path forward. #HealthcareReform #DigitalHealth #PrivateEquity #HealthCareInnovation #CaliforniaLegislation

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The state of venture capital is wild right now. We are witnessing a surge of innovation across the spectrum: - Funds merging - VC doing PE - PE doing VC - Secondary funds - Buyout funds - Spin-out funds - Debt funds - Continuation funds - Infrastructure funds - GP turnover - Hard Tech surging - Family Office uptick

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Want to be a Venture Capital Scout? Scout for Syndicate leads. I’m biased, but I think SPV/Syndicate leads are some of the best connections for VC scouts. As a syndicate lead, I’ve leaned into working with VC scouts the past 3-4 years. It's been a great way to gain unique access to deal flow and many of my most exciting portfolio companies have come from various “scouts”. Given the deal by deal investing strategy and ability to share carry with those who support sourcing & diligence, it’s become increasingly common for syndicate leads to actively partner with scouts and share carry or upside in the SPV. What’s in it for the scout? Deal x deal carry. While there are multiple traditional VC scout models that exist, the syndicate scout model is pretty straightforward. If you source a deal and support diligence, the syndicate lead is going to share some of the carry with the scout, and likely a more meaningful amount than a traditional venture fund. This is of course an SPV, so you are getting carry for the specific deal you sourced and not fund-level carry. A little more background on why the SPV model aligns with VC scout deal sourcing… Syndicate leads are structured (and many times set up) to invest in more companies than a traditional venture fund. In order to consistently bring LPs high quality deals, it makes sense to partner with folks in your network who have strong deal flow. Most times the carry split from syndicates will be more generous than that of a traditional venture fund. Syndicates do not necessarily have a certain number of portfolio companies they can invest in, meaning as long as they are getting access to quality deals that LPs want to participate in, then they will: 1) Be more likely to say yes and run the SPV into that investment and 2) Be more willing to provide a higher carry split, especially if you as a scout show you can repeat this with more future access In summary, if you are going to scout for venture funds, you might as well explore doing so with syndicates and capitalize on deal by deal carry/upside. Disclaimer: If you are scouting deals because you want to get into VC, working with traditional VCs is likely better from a networking standpoint, but if you are scouting to capitalize on carried interest/upside, I think the SPV lead route can be more attractive, and more frequently. -- Interested to see if you are a fit for our new Deal Sheet accredited investor product? Explore Deal Sheet to access 100-200+ of the best SPV startup (pre-seed to pre-IPO) investment opportunities per year. Deals are curated by Zachary Ginsburg & Alex Pattis (deployed > $200M across 750+ SPVs) across 50+ syndicate leads.

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