Lomit Patel’s Post

Why Seed Round Investments are Crucial for U.S. Innovation! Seed-stage investors are the unsung heroes driving our startup ecosystem. They provide the essential early funding, mentorship, and networks that help startups validate their business models and accelerate growth. This support is crucial for navigating the challenges of scaling and ensuring that the U.S. remains a global leader in innovation. Let's champion more seed investments to keep our entrepreneurial spirit alive and thriving! Ready to make an impact? Join the movement and support our next generation of innovators! #Innovation #Startups #SeedFunding #Entrepreneurship #Investing

📈 Startups' Valuations Rebound! After a challenging period, startup valuations are quietly bouncing back to record levels. Investors are beginning to see the end of the slump, suggesting a renewed confidence in the market. This resurgence highlights the resilience and adaptability of startups in navigating economic fluctuations. 🔗 Read more on TechCrunch article from bell and share your comments. #Startups #Valuations #Investment #TechIndustry #EconomicRecovery #Entrepreneurship 🚀

Our Founder and Managing Partner, @Ivan Nikkhoo, recently published an article in @Startups Magazine on ‘How Startups Can Bridge the Funding Gap.’ Ivan shares strategies for founders to navigate the funding gap, highlighting the importance of extension rounds to extend runway, support growth and maximise value. He also outlines how our portfolio company @ Quincus, a global enterprise SaaS platform for the logistics industry, leveraged an extension round to support its technological advancements, accelerate market growth and extend its runway between funding rounds. 📖 Read the full article: https://bit.ly/3WduG4l #NavigateVentures #Startupsmagazine #startups #Entrepreneurship #VC #venturecapital

Our Founder and Managing Partner, @Ivan Nikkhoo, recently published an article in @Startups Magazine on ‘How Startups Can Bridge the Funding Gap.’ Ivan shares strategies for founders to navigate the funding gap, highlighting the importance of extension rounds to extend runway, support growth and maximise value. He also outlines how our portfolio company @ Quincus, a global enterprise SaaS platform for the logistics industry, leveraged an extension round to support its technological advancements, accelerate market growth and extend its runway between funding rounds. 📖 Read the full article: https://bit.ly/3WduG4l #NavigateVentures #Startupsmagazine #startups #Entrepreneurship #VC #venturecapital

Our Founder and Managing Partner, @Ivan Nikkhoo, recently published an article in @Startups Magazine on ‘How Startups Can Bridge the Funding Gap.’ Ivan shares strategies for founders to navigate the funding gap, highlighting the importance of extension rounds to extend runway, support growth and maximise value. He also outlines how our portfolio company @ Quincus, a global enterprise SaaS platform for the logistics industry, leveraged an extension round to support its technological advancements, accelerate market growth and extend its runway between funding rounds. 📖 Read the full article: https://bit.ly/3WduG4l #NavigateVentures #Startupsmagazine #startups #Entrepreneurship #VC #venturecapital

In today's dynamic startup ecosystem, the landscape of early-stage funding is undergoing significant transformation. According to a recent article by TechCrunch, Y Combinator (YC) startups are increasingly turning to tiny seed rounds as traditional VC investors show diminishing interest in early-stage investments. This shift highlights a critical challenge for budding entrepreneurs: securing initial capital to fuel their innovative ideas. The traditional allure of hefty VC checks is giving way to more modest, yet essential, seed rounds. This trend underscores the importance of adaptability and resourcefulness for startups aiming to thrive in this evolving environment. As someone deeply invested in the startup ecosystem, this resonates profoundly. Having witnessed and contributed to various phases of startup evolution over the decades, it's evident that securing initial funding remains a cornerstone of entrepreneurial success. However, the strategies and approaches must evolve with the times. For founders navigating this new terrain, here are a few takeaways: Embrace Smaller, Strategic Seed Rounds: Focus on building strong relationships with a diverse array of investors, including angel investors and micro-VCs, who can provide not just capital but also invaluable mentorship and network connections. Leverage Accelerators and Incubators: Programs like YC continue to offer critical support beyond funding, including mentorship, resources, and a robust network of alumni. Prioritize Sustainable Growth: Aim for a lean, agile approach to growth. Prove your concept and achieve key milestones with minimal resources to attract further investment. Stay Informed and Adapt: Keep a close eye on industry trends and be prepared to pivot your funding strategy as the landscape evolves. This TechCrunch article serves as a timely reminder of the ever-changing nature of startup funding. For those of us dedicated to fostering innovation and supporting the next generation of entrepreneurs, staying adaptable and proactive is key. https://lnkd.in/gwiEv5NQ #StartupFunding #VentureCapital #Entrepreneurship #YC #SeedRounds #Innovation #TechTrends #Founders

Valuations of startups have quietly rebounded to all-time highs. Some investors say the slump is over. But there’s a catch! Generative AI businesses aside, the last couple of years have been relatively difficult for venture-backed companies. Very few startups were able to raise funding at prices that exceeded their previous valuations. Now, approximately two years after the venture slump began in early 2022, some investors, like IVP general partner Tom Loverro, are saying that the worst of the downturn is behind us and the startups that survived should shift from cash preservation mode to spending money on growth. #startups #valuations #venturecapital https://lnkd.in/ddjKNYjS

Crossing The Series A Chasm: This great article highlights the new heights a startup must achieve to raise a successful Series A round. "We can see that the median step-up in valuation from seed to Series A has gone from $19.5 million in Q1 2022 to $28.7 million in Q1 2024. Series A VC firms seem to be looking for much stronger revenue performance, with targets of $2 million to $3 million in ARR, compared to $1 million to $2 million just a few years ago... The outcome is that while 31.8% of Q1 2020 seed startups closed their Series A within two years, that fell to just 12% for Q1 2022 — which should worry everyone." As startup advisors and operators ourselves, we have seen this trend over the past 2 years develop and hence banded together as a collective to offer startups access to fractional talent to help them "cross this new chasm" with experienced, battle-tested entrepreneur-turned-investors and operators. "Crunchbase data shows that for a Series A closed in 2014, the median time following a startup’s first seed at $1 million or above was 14 months. In 2020, that increased to 24 months." This trend continues. https://lnkd.in/gBeFQKsz 🚀 We're thrilled to announce the launch of Crest Collective with an incredible team of 20 hand-selected fractional executives! We're here to be the support crew that founders need to scale their startups to new heights. #startups #fractionalexecutives #growth https://lnkd.in/gqAaYgms

Is there an oversaturation of startups in the US? Currently, there are over 55,000 VC-backed companies active in the US, intensively vying for funding in a sluggish market. More than 2,000 VC firms halted new investments in startups in the first nine months of 2023. In 2023 alone, around 3,200 startups folded. The demand for capital from late-stage and venture growth companies surpasses available investor funding by over 2x, while early-stage companies face a slightly smaller gap of 1.4x. Will the 'startup mass extinction event' gain momentum in 2024? #startup #venturecapital https://lnkd.in/gnXw5djT

"As interest rates climbed and global uncertainty became pervasive, the growth-at-all-cost mindset evaporated and investors pivoted rapidly to favoring startups with strong revenue, capital efficiency, and strong gross margins. " Data-backed insights are always interesting. This is an interesting analysis of nearly 100 startups that excluded outliers (in AI, biotech, etc), and here are 3 key takeaways from this article. 🔑 Growth in Revenue: Startups that successfully raised series A averaged a y-o-y growth rate of 600% vs 150% for startups that failed to raise. 🔑 Unit Economics: Startups that successfully raised series A had an average gross margin of 80% vs 10% for startups that failed to raise. 🔑 Burn Multiple: Startups that successfully raised series A had a burn multiple of 1.7 vs 22 for startups that failed to raise. 💡 "Burn Multiple measures how efficient a company is at generating revenue vs how much cash it burns. Lower is better." #seriesa #fundraising #startups #vc #venturecapital