Charlie O'Donnell’s Post

One of the truths in business we've forgotten over the years is that businesses don't exist to make money. Businesses exist to meet a need. Making money and generating profit are the means by which businesses earn the right to continue meeting customer needs over time. Show me a business that can't tell a clear, succinct story of how they meet customer needs (in ways customers would say themselves), and I'll show you the Achilles heel in their product or business model that will be their undoing. In VCs, firms like Forum Ventures and Redesign Health will win out over time. Their lifeblood is positioning founders to win. They know they don't succeed unless their founders succeed, not the other way around. I'm not sure how we reverse this trend, but I'm glad to see firms like these two leading the way. Who else is doing this right?

Great lessons for anyone looking to build that 0-1 journey (0 to 1 bn! ) Excellent points; you can get to 1m by being focusing on yourself, to get to 1bn you have to focus on others. 🧑💻Christopher J. Sanjeev Addala

Thanks for these thoughts, Olivia. I (obviously) couldn't agree more. The reason that so many are so dismissive of this sort of capability-building by a small handful of firms is that they either (a) don't want to admit that it matters, because admitting it's impactful is then VERY expensive for them to then go duplicate, or (b) they've tried or seen others try, but only half-heartedly, and seen those efforts amount to not much. The reality is if you're going to do it you need to REALLY commit and invest. There can be no half measures in this stuff. If you're going to do it that way you should definitely save the money and pay yourselves more. But if you bring a customer-centric approach to it and think like a product builder, and commit whatever resources are necessary to unlock real value creation then you'll see some really rewarding results. You don't need to do everything - in fact you shouldn't. But the things you do choose to do you need to invest in the people and leadership to make sure you do it exceptionally well. People also like to say that firms that build any meaningful portfolio support capabilities end up attracting weaker founders. That's total BS and lazy thinking. As I shared in the session last week, we track religiously the engagement and interactions of our Impact team with our portfolio, and we have from the beginning found that the most capable and most experienced founders are amongst those who lean into what we offer the most. These people understand the value of free help and recognize that no matter how experienced you are and how great your founding team is, you are always under-resourced at the beginning and there is always stuff that you need help on. That's exactly what we're there for. We're not there to run a business for someone, we're there to pitch in around the edges, fill gaps that an early company isn't big enough to be able to fill on their own, etc. But really, I love that so many people dismiss this stuff. Less competition is a luxury....

We’re excited to celebrate a major milestone for our client H/L Ventures: the successful close of their $24M CityRock Venture Partners Fund II! 🚀💼 H/L Ventures' early-stage venture capital fund has successfully closed at $24 million, continuing their mission to support and actively engage with Seed and Series A startups at the intersection of growth, impact, and diversity. The fund will focus on critical areas such as climate change, healthcare, fintech, infrastructure, and the future of work, with a strong emphasis on backing underrepresented founders. H/L Ventures exemplifies the growing trend of VCs prioritizing not just financial returns but also social and environmental impact. We’re eager to see this fund drive meaningful change and support the next generation of visionary founders. Learn more about CityRock Fund II: https://lnkd.in/dKEbQzgJ cc: Oliver Libby, Galina Ozgur #VentureCapital #ImpactInvesting #FundingNews #SeriesA #SeedFinanciing #HLVentures

Founders — when making your pitch, be sure your TAM is big enough to ask for venture capital. To successfully raise venture money, and continue raising without the music stopping at some point, you have to show that you'd make at least one billion dollars in revenue if you had 100% of the market. Let's say you get to $300M of ARR — your company may be worth $3-4B at that point — but without significant growth and upside from here it will be hard for the next set of investors to back you to go public. Late-stage VC typically invest bigger checks (e.g. $100M) into a company unless they can see a path to $5B or more. That path becomes visible with a sufficiently large TAM and strong growth prospects within it. Also, ideally you can show both a top down and bottom up TAM for your company adding up to at least $1B in your pitch. That way investors will be more confident that you can deliver the scale of returns they expect.

🚨 Breaking News! Masha Bucher’s Day One Ventures Raises $150M Fund III Day One Ventures, an early-stage VC firm, is bridging the gap between technology and society through art, storytelling, and culture. They focus on AI, climate, enterprise software, fintech/crypto, and deep tech. Here's how Masha did it: 🔢 Numbers Matter: “If you raise the third fund, numbers should say something.” And they do. Masha is an early investor in eight unicorns, with Day One Ventures boasting 22 exits, including one IPO. 💡 A Female Approach: “I have fully raised this fund with a very female energy and approach,” says Masha. “The problem is that women think they need to act like men to become successful. The reality is, I want to be myself.” 🤝  Community Power: “14 of our portfolio founders invested in us.” That’s the strength of a solid community! First Fund III investments include AstroForge, Rainmaker, Cradle, Layer N, and Affiniti. Thank you, Masha Bucher, for sharing your story with Forbes! 👏 Read the full article: https://lnkd.in/gyEgBu7v #Forbes Jenny Chao

𝗕𝗲𝘆𝗼𝗻𝗱 𝘁𝗵𝗲 𝗕𝘂𝗰𝗸𝘀 #𝟳: 𝗧𝗵𝗲 𝗔𝗿𝘁 𝗼𝗳 𝗥𝗮𝗶𝘀𝗶𝗻𝗴 𝗮 𝗩𝗖 𝗙𝘂𝗻𝗱 – 𝗠𝘂𝗹𝘁𝗶-𝗖𝗹𝗼𝘀𝗲 𝗦𝘁𝗿𝗮𝘁𝗲𝗴𝘆 𝗮𝗻𝗱 𝗜𝗻𝘃𝗲𝘀𝘁𝗼𝗿 𝗘𝗾𝘂𝗮𝗹𝗶𝘇𝗮𝘁𝗶𝗼𝗻 Let's delve into a technical yet utterly fascinating aspect of venture capital: raising the fund itself. Yes, it's about amassing those millions to fuel cool startups. But did you know it's not all gathered in one go? As we gear up for our second close at welovefounders, let’s explore the magic of multiple closes and the dance of investor equalization. 𝗧𝗵𝗲 𝗠𝘂𝗹𝘁𝗶-𝗖𝗹𝗼𝘀𝗲 𝗔𝗽𝗽𝗿𝗼𝗮𝗰𝗵 Raising a VC fund typically unfolds in phases, known as "closes." Here’s how it works: - 𝘍𝘪𝘳𝘴𝘵 𝘊𝘭𝘰𝘴𝘦: This initial phase is the kickoff. It allowed us at welovefounders to start deploying capital as early as September 2023, even while we continue to raise more. Think of it as opening the gates to start the race. - 𝘚𝘶𝘣𝘴𝘦𝘲𝘶𝘦𝘯𝘵 𝘊𝘭𝘰𝘴𝘦𝘴: These are opportunities for additional investors to join the fund over a period, typically 12 to 24 months. It's like keeping the door open just a bit longer to let a few more VIPs into the concert. Why this strategy? Flexibility, my friends! It helps fund managers like us secure capital faster and start making investments sooner rather than waiting to hit the ultimate fund target. 𝗧𝗵𝗲 𝗘𝗾𝘂𝗮𝗹𝗶𝘇𝗮𝘁𝗶𝗼𝗻 𝗘𝗾𝘂𝗮𝘁𝗶𝗼𝗻 What happens when new investors come in after the first close? Suppose you're considering joining our second close (and please do! 😍). We’ve been investing in awesome companies for the last 9 months, and these companies have already started creating significant value (more on that soon). There needs to be an agreement between first and second close investors to ensure all invest on the same basis. Enter the world of equalization: - 𝘊𝘢𝘱𝘪𝘵𝘢𝘭 𝘊𝘢𝘭𝘭 𝘔𝘦𝘤𝘩𝘢𝘯𝘪𝘤𝘴: New investors contribute not only their share of the current investments but also catch up on any investments made between their entry and the first close. This ensures fairness, maintaining equivalent stakes for all investors regardless of their joining time. - 𝘍𝘦𝘦 𝘈𝘥𝘫𝘶𝘴𝘵𝘮𝘦𝘯𝘵𝘴: Similarly, new investors might pay an equalization fee to compensate earlier investors who bore more risk initially. This balancing act ensures that whether you're the first or the last investor on board, everyone enjoys the same risk and reward setup. It's like ensuring every concertgoer gets a front-row experience, even if they arrived a bit late. 𝗪𝗵𝘆 𝗦𝗵𝗼𝘂𝗹𝗱 𝗬𝗼𝘂 𝗖𝗮𝗿𝗲? Understanding these mechanics is crucial, whether you're considering becoming a VC fund investor or you're on the entrepreneurial side, curious about where all this investment money originates. 🚀 Disclaimer du Jour: The insights shared come from my personal adventures in the fundraising jungle. They're meant to guide and inspire, not serve as financial gospel. #equilization #fundraise #venturecapital

Ever wondered how some startups manage to not only secure funding but also achieve remarkable growth swiftly? The secret often lies with their lead investors. These key players do much more than provide funds; they bring a wealth of knowledge, connections, and strategic foresight to the table. I'm excited to share my latest article: "Why Lead Investors Are the Secret Sauce in Venture Capital." In this deep dive, I explore: - The strategic influence of lead investors in setting the course of funding rounds. - The invaluable mentorship and networking opportunities they provide. - Real-world examples of startups transformed by their lead investors. - Whether you're seeking funding or looking to invest, understanding the pivotal role of lead investors can significantly impact your approach and success. 👉 Read the full article here for insights on harnessing the power of lead investors in your venture capital journey https://lnkd.in/eEesUCYQ I’d love to hear your experiences with lead investors or any questions you might have about engaging with them. #VentureCapital #StartupFunding #startupinvestmenttips #BusinessGrowth #InvestorInsight #businesstips #businessadvice

True VCs are not just portfolio managers; they are co-creators, working hand-in-hand with founders to shape the future. VCs are artisans. With nearly two decades of experience in the art of venture capital, I firmly believe that the core of our work remains unchanged, even as tech permeates every industry and the nature of investments evolves. When VC firms prioritize strong entrepreneurial relationships alongside financial mechanics, they preserve the unique craft element that sets venture capital apart. At Foundation Capital, our hands-on, collaborative approach is at the heart of everything we do. We invest in people, not just companies. Our team provides tailored guidance, strategic insights, and unwavering support to each founder to help them navigate the challenges of building a successful business. This artisanal approach is more than just a strategy—it's a commitment to empowering visionaries and building a future shaped by their groundbreaking ideas.

Announcing: $300M raised for The General Partnership's Fund II When we launched The General Partnership, we aimed to redefine venture capital partnership and closing this second fund is one more step toward that vision. Working with Daniel Portillo and our team of industry veterans, we've shown that true partnership goes beyond capital. Our approach is unique: We offer customized support for each company's needs - recruiting, product and engineering, GTM and Capital. We give founders the resources they need with capital and by deploying experienced recruiters, engineers, designers, and GTM leaders to work with leaders at each startup. We maintain alignment with founders through our Sweat Equity model. To our founders: Your trust validates our model. We're committed to driving your success through hands-on work, not just checks. To our LPs: Thank you for believing in our vision. Your support enables us to continue redefining VC and supporting the best as they build their companies. With Fund II, we're doubling down on supporting founders from formation to breakout stages and if you’re a builder, Let’s run it back! More here from Dan Primack and Axios https://lnkd.in/gcn9U9s5 And our note on TheGP II here: https://lnkd.in/gTJ8pyZu