Mamoon Hamid’s Post

"It took Los Angeles-based venture firm Act One Ventures some three years to raise its $73 million third fund, which the firm finally closed on Dec. 1, according to co-founder and General Partner Alejandro Guerrero. The firm held the first close on the fund in 2021. “The environment we saw radically changed from when we started to when we ended,” he said. Limited partners scrutinized the cash position, burn and valuation of the firm’s portfolio companies in the new fund to a much greater extent than previously, he said. What helped Act One ultimately exceed its original fundraising target was that its companies had a long cash runway, he said. Another major factor was that Act One provided liquidity via secondary sales to the LPs in its first fund, Guerrero said. Close to a quarter of venture funds globally spent less than six months raising capital in 2021, according to Preqin. Only 12% zoomed to a fund close in such a short time in the first three quarters of 2023. Valuing private companies isn’t an exact science at any time, and there are a variety of ways to do that accounting. A prolonged period of illiquidity and a dearth of follow-on financing into startups has created greater differences of opinion on appropriate marks because there is no market event to indicate a new valuation. Ultimately the true value of the shares of a company is only known at the time they are sold. For venture fund managers, valuation is a balancing act. On the one hand, elevated paper returns may make venture funds look more attractive to LPs. On the other, not being realistic about the value of one’s portfolio can backfire."

We are excited to announce the initial closing of our second fund! In 2019, we launched session.vc as a founder-led investment platform designed to take a more hands-on approach than traditional venture capital firms. Having spent more than 20 years building startups and serving as board members of high-growth ventures, session.vc was a natural evolution for us. Our approach is centered on an owner-operator mindset, where we are ourselves the largest investors in our funds. Our first fund supports fourteen founder teams, several of which have gone on to secure Seed / Series A follow-on rounds. We continue to work closely with SalesPlaybook, Cerrion, deskbird, Dufour Aerospace, GUURU Solutions, Iona Mind, Jua.ai, Lano, Saporo, SuperDuperDB actively supporting their continued growth. With our latest fund, we are making a deliberate break from the traditional power law game of VC investing, to partner with a growing number of entrepreneurs, who are questioning the conventional venture funding path, which relies on permanent fundraising. "The mantra of these founders is to raise less and build more." Many have achieved initial product market fit and significant traction with minimal cash burn. For them raising capital has become an option, not a requirement. The reason they speak with us is not an urgent financing need. They are looking for an experienced partner, with a track record of successfully scaling business operations and delivering exits - a value proposition which few can offer and where we believe we can make a real difference. Building a broad portfolio of passive investments has always been alien to our owner-operator DNA. Leaving the conventional venture capital factory line will allow us to be more concentrated and devote our full time and attention to a handful of companies, which are in control of their destiny.  If you're a founder seeking active, experienced support to scale your business, let's connect. We ❤️ to build!

"Sequoia Capital's transition to an evergreen fund structure represents a seismic shift in the venture capital landscape, fundamentally challenging the orthodoxy that has dominated the industry for decades. This move is not merely a tactical adjustment but a wholesale reimagining of how venture capital can and should operate in the modern era of company building and value creation, a hallmark of Venture Capital 2.0." Click the link to read my latest work and learn everything you need to know about Sequoia's evergreen fund and what it will mean for the future of venture capital and startups! Sequoia Capital #evergreenfunds #venturecapital #startups https://lnkd.in/dhfaaP95

Front Porch Partners Successfully Raises Fund II🌟 💰Front Porch Venture Partners, a prominent Triangle-based venture capital firm, has made significant waves with the successful closure of its second fund, amassing an impressive $20 million. Founded in 2019, Front Porch is now poised to inject fresh capital into burgeoning startups across the Southeastern states, signaling a promising boon for regional innovation and entrepreneurship. 🌱💼 💡"This substantial fund, quadrupling the size of its inaugural pilot fund, marks a pivotal moment for the Triangle's startup ecosystem," says Nikin Shah, General Partner at Front Porch. "In a landscape where local investment faced challenges, Front Porch's bolstered financial firepower injects vitality into the region's entrepreneurial spirit." 💥📈 🔎Front Porch's investment strategy encompasses a dual focus: allocating funds to other venture capital firms (like Durham-based IDEA Fund Partners and Hatteras Venture Partners) as well as individual startups. "Our goal is to nurture around 25 promising companies and empower emerging ventures to thrive," adds Shah. 💡💰 📝Notable beneficiaries of Front Porch's initial fund include innovative ventures like CureMint, Inc.®, VitalFlo, and Klearly, underscoring the firm's commitment to fostering diverse, high-potential enterprises within its ecosystem. 🚀🌟 🌪Against the backdrop of a venture capital industry navigating unprecedented challenges, Shah reflects on the tumultuous year of 2023 as a "hard reset," echoing sentiments shared across the entrepreneurial landscape. Despite the setbacks, Shah remains cautiously optimistic, pointing to signs of recovery as leading firms conclude fundraising efforts and a resurgence of capital inflows. 📉📈 🕯As Front Porch Venture Partners embarks on this transformative journey with its expanded fund, the firm's proactive approach and strategic investments promise to invigorate the Southeast's startup ecosystem. With a keen eye on emerging opportunities and a steadfast commitment to driving innovation, Front Porch is poised to play a pivotal role in shaping the future of regional entrepreneurship. 🔍🚀 Congratulations to the Front Porch Venture Partners' new fund!👏👏👏 ✅ 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   #FrontPorchVenture #StartupInvestment #VentureCapital #Entrepreneurship #SoutheastStartups #RegionalInnovation #InvestmentStrategy #EconomicRevival #TechEcosystem #FinancialGrowth

💰Contour Venture Partners Raises $42M for Fifth Fund 💼 Introduction: Contour Venture Partners, a New York-based seed investor known for early investments in companies like Datadog and Movable Ink, has raised $42 million for its fifth fund. The firm is targeting $90 million for this flagship fund and has been actively fundraising since May 2023. 💡Key Points: - **Fundraising Progress**: The firm closed on $42 million from 64 backers, aiming for a total of $90 million. It had previously raised $20 million as part of a parallel fund. - **Market Context**: Fundraising has been challenging for venture funds recently, with overall venture fundraising down more than 50% last year compared to 2022’s record-breaking numbers. 📝Investment Strategy: - **Check Sizes and Focus**: Contour writes checks between $500,000 and $1.5 million, primarily leading rounds in seed and early-stage companies. It focuses on sectors like SaaS, digital media, and financial services, with a preference for companies based in New York or the Northeast. - **Track Record**: Despite not having a massive war chest, Contour has a strong investment track record. Notable successes include:  - Datadog: Early investment in 2011, which IPO'd in 2019 with a $7.8 billion valuation.  - OnDeck: Invested in 2006, went public in 2014 with a $1.3 billion valuation.  -Pendo: Active portfolio company, raised over $460 million, valued at $2.6 billion.  - Movable Ink: Content personalization startup, raised nearly $100 million, valued at $1.3 billion. 👩👩👧👦Firm Background: - **Founders and Leadership**: Contour was founded in 2005 by Matt G. and Bob Greene, who continue to lead the firm. - **Capital Raised**: Over its nearly 20-year history, the firm has raised more than $370 million across four flagship funds and three opportunity funds. 🕯Conclusion: Contour Venture Partners continues to make significant strides with its fifth fund, demonstrating resilience and strategic prowess in a challenging fundraising environment reported TechCrunch. ✅ Looking to raise capital for your #VCfund and increase the international pool of your LP #investors?   🤝 Need warm #LP introductions?   📝 Selling #secondaries to increase liquidity?   🧐 Looking for co-investments (Series A/Series B)?   ▶ G+QUANT's link for inquiries and fund decks: https://lnkd.in/gjC_EuTE #VentureCapital #ContourVenturePartners #StartupFunding #Datadog #MovableInk #InvestmentStrategy #SeedFunding #TechInvesting

Regarding #vcfunding and #privateequity in the #supplychain space... Here's what I know: coming out of Manifest: The Future of Supply Chain & Logistics and speaking with a lot of VC/PE companies, they don't have a sufficient level of understanding of the global supply chain to make informed investments. (They can't.) Here's what else I know: most VCs/PE companies think because they have an investment or two in the space that they actually know about it. (They don't.) One more thing: I don't know that Brian Laung Aoaeh, CFA and Lisa Morales-Hellebo will be successful in their investing strategies...time will tell. But I do know that they have a level of understanding in this space that most VCs just don't have. I have also come to learn that this understanding is required for systematic success. At least they are the right people playing the right game. Everyone else is basically throwing darts at dart board blindfolded.

🚀 Exciting news in the venture capital space! Vintage Investment Partners just secured a whopping $200 million for their latest fund - Growth IV - aimed at propelling growth-stage tech gems in Israel, Europe, and the U.S. 🌟 With a total of $4 billion under management, Vintage is soaring high and set to catalyze innovation across sectors. Discover how they plan to foster cutting-edge startups and what this means for the tech landscape. #VentureCapital #GrowthInvestment #Innovation #VintageInvestmentPartners #TechnologyStartups #GlobalImpact 🌐💼🔍

START-UPS FAILED, NOW VENTURE GOES UNDER The sudden closure of OpenView a Bosten based venture capital firm is one of the few public signs of the turmoil in VC and start-upland Very little of this makes the media and VCs are notorious for keeping bad news private OpenView founded 2006, staff 74 with funds under management US$2.4 billion, so not a new firm and mid ranged in size. Total 153 investments, with 50 exits and 33 current start-ups under management Expect much more of this in 2024 as the cash crunch hits venture firms     VENTURE CAPTIAL Venture capital (VC) is a form of equity financing where capital (using other peoples cash) is invested mostly in start-ups VCs invest money at high risk in the hopes of generating significant profit (mix of fees, interest charges and exit cash) over 8-10 years Basic functions: ❎ VCs raise funds from investors (Limited Partners or LPS) ✅ VCs deploy funds in start-ups ❌ VCs manage the investment getting paid fees + charges ✳ Exits for cash are needed through IPOs, or fall back actions - trade sales. mergers or shutdowns   FACTS There are 50,000 VC-funded start-ups in the US that haven't exited - worth a staggering US$566 billion (ex Pitchbook) Fintech is estimated 10,500 valued at US$101 billion In 2023 YTD only 18 exits by IPO or M&A valued over U$1.1 billion, ex Crunchbase, 6 of those raised less than 200 million. There are 50 - 75 more smaller exits, a tiny amount vs the massive backlog Poor IPOs by ARM, Instacard and Klaviyo have not raised the bar These three profitable Tech IPOs were supposed to show public floats are back and firing, opening the flood gates to raise much needed cash IPOs waiting include: Chime, Discord, Navan, Reddit, Inc., Revolut, SpaceX, Stripe, Turo IPO market in 2023/4   📛 In Q4 last year US VC returns turned sharply negative, showing a quarterly IRR of nearly -20% How will VCs dig themselves out of this hole?   BOOM TIMES FOR VCs, INVESTORS & START- UPS   VCs and start-ups boomed as a result of zero interest rates with investors seeking more risk. The Covid stimulus and extra central bank cash accelerated the boom in 2020/21   ⏫ US start-ups are double the 2017 number, world-wide estimates range from 135,000 – 160,000 ❌ Yet VC’s have enough money to fund half that and with new funding collapsing, it’s really dire ⏬ In 2013 US had 850 active VC’s, today over 2,500 ex Pitchbook Around the world VC growth is more dramatic with China, India, UK, Israel leading the charge - active VCs now over 12,500 Active venture/growth investors increased fourfold in a decade to 40,000 Unless interest rates return to zero VCs and start-ups are in for a very rough 2024 – expect many more OpenViews #vcfunding #openview https://lnkd.in/gTijqGEV

"The number of active traditional VCs in US venture capital deals peaked at 18,504 in 2021, according to Pitchbook data compiled for BI. That fell to 15,985 in 2022 and to 9,966 last year. So what happened to the 8,538 VCs that stopped investing in the last two years?" Enter the Zombie fund, the walking dead of the venture world. They have concluded that a successor fund is not happening and they will start downsizing staff as management fees start dropping. Remaining callable funds will be saved for only the most promising ventures. The problem is that often funds do not broadcast their Zombie status. In fact, as the article highlights, some go through the motion of vetting deals even though they have limited/no ability to invest. In other cases, founders may be unaware that investors on their cap table have entered Zombie status - and will not be able to participate in future fundraising. Founders should do their homework. If a fund has not invested in two years, there should be a compelling reason not to consider them a Zombie fund. For ventures with Zombie investors, the risks go beyond the inability to fund follow-ons: 1️⃣ Zombie funds will often oppose additional financings that will dilute their equity. 2️⃣ Zombie funds will push for early sales at low valuations, knowing that the future will only dilute their positions. 3️⃣ Potential acquirers can look at the same data and determine if a venture's cap table/board includes multiple Zombie investors. They may wait on the assumption that the lack of funding capacity among existing investors will ultimately force a fire sale. Ventures should consider gently trying to engineer a secondary sale, most likely to an existing investor or maybe a secondary fund, to mitigate this risk. https://lnkd.in/ebsR4EXQ