Alan Patricof’s Post

Exciting News: Joined Grit Capital Partners as Partner & Chief Operating Officer! I'm thrilled to announce that I've recently embarked on an invigorating new journey as Partner & Chief Operating Officer at Grit Capital Partners. Grit Capital Partners is an emerging venture capital firm that brings a new way of doing business to early-stage investing. What drew me to this incredible opportunity was the perfect alignment of our focus on founders' GRIT (passion and perseverance for long-term goals) and the extensive entrepreneurial and operational experience of the partners, reflecting closely with my core values and ethos. It felt like I found a mission that resonates precisely with the person I see when looking in the mirror. A pivotal aspect of the firm's visionary approach involves redefining and enhancing the traditional LP/GP relationship. The drive to make LPs better early-stage investors has fueled my eagerness to be at the forefront of reshaping early-stage venture capital. At Grit Capital Partners, we are on a mission to empower unstoppable founders and teams poised to disrupt industries and markets through groundbreaking technology and AI, ultimately changing the world. We proudly prioritize opportunities that have the potential to catalyze ecosystems with software. Our focus areas span disruptive technologies in Financial Services, Commerce, and Digital Media. We believe wholeheartedly in the transformative potential of ecosystem technologies and are committed to supporting founders who push the boundaries of what's possible. I am particularly excited about working closely with Paul Palmieri, Michael Flannery, Jennifer Byrne, Matthew Bellows and the entire Grit Capital Partners team. Their investing and operating expertise is unmatched, and I look forward to the dynamic synergy that will undoubtedly result from our collaboration. Here's to new beginnings and the road ahead! #authenticitywins #gritcapitalpartners #venturecapital #innovation #newbeginnings #foundergrit

Venture Capital News - Venture Capital News Headlines

Private Equity vs Venture Capital for your $100M Career Private Equity is a lot like Venture Capital. Private Equity firms tend to invest side by side with late-stage venture capital firms. Which do you do? Those who thrive in Private Equity love the mathematical side of things. They love modeling and they’re more risk averse, preferring to model out business decisions. My most successful mentee in PE loved modeling, creating regressions, and being pulled in on important deals. At the same time, he doesn’t like a lot of uncertainty. Picking a stock, thinking about the future, and considering the possibilities of what might happen are not interesting to him. But, looking at how he can structure super complex deals is fascinating to him. He enjoys getting rid of almost all the risk and creating a whole bunch of upside (the asymmetric trade). People like that flourish in private equity. Venture Capitalists spend lots of time in deep thought on where the future is headed. From this thought and research, they build a thesis or a way they can invest around that future. Then, they figure out how to deploy capital using the thesis. The firms that invest in seed and Series A and Series B, they’re very different from PE. As a VC, you’re imagining how the team might change the future with their innovation. You're envisioning how that might fit with one of your themes or theses for how the future will play out. There’s not much financial modeling. As a VC, you’re going to wade through a ton of pitch decks. Some will be passed on to you. Some will be sent in. Some pitch decks you’ll solicit. Then you’ll decide which founders you want to meet with. You’ll be chasing hot deals and trying to avoid the dogs while picking out diamonds in the rough. You’ll also be spending huge amounts of time networking with groups of founders and board directors. Because they can give you access to the best and hottest deals. For a deeper dive into Private Equity or Venture Capital career paths, check out my book $100M Careers: The 5 FASTEST Career Paths to Wealth Beyond Your Wildest Dreams. #venturecapital #investing #careers

Private Equity vs Venture Capitalism for your $100M Career Private Equity is a lot like Venture Capital. Private Equity firms tend to invest side by side with late-stage venture capital firms. Which do you do? Those who thrive in Private Equity love the mathematical side of things. They love modeling and they’re more risk averse, preferring to model out business decisions. My most successful mentee in PE loved modeling, creating regressions, and being pulled in on important deals. At the same time, he doesn’t like a lot of uncertainty. Picking a stock, thinking about the future, and considering the possibilities of what might happen are not interesting to him. But, looking at how he can structure super complex deals is fascinating to him. He enjoys getting rid of almost all the risk and creating a whole bunch of upside (the asymmetric trade). People like that flourish in private equity. Venture Capitalists spend lots of time in deep thought on where the future is headed. From this thought and research, they build a thesis or a way they can invest around that future. Then, they figure out how to deploy capital using the thesis. The firms that invest in seed and Series A and Series B, they’re very different from PE. As a VC, you’re imagining how the team might change the future with their innovation. You're envisioning how that might fit with one of your themes or theses for how the future will play out. There’s not much financial modeling. As a VC, you’re going to wade through a ton of pitch decks. Some will be passed on to you. Some will be sent in. Some pitch decks you’ll solicit. Then you’ll decide which founders you want to meet with. You’ll be chasing hot deals and trying to avoid the dogs while picking out diamonds in the rough. You’ll also be spending huge amounts of time networking with groups of founders and board directors. Because they can give you access to the best and hottest deals. For a deeper dive into Private Equity or Venture Capital career paths, check out my book $100M Careers: The 5 FASTEST Career Paths to Wealth Beyond Your Wildest Dreams. #venturecapital #investing #careers

🌱 For pre-seed/seed founders 🌱 The early stage vc markets have changed drastically -- but many founders don't truly understand how or how much things have shifted until its too late or they are deep into the fundraising process already. This recent Allocate pod lifts the veil on the pre-seed/seed 2024 markets. SO MANY GEMS are packed 💎 into the first 20 min, I had to listen twice. Key takeaways from pre-seed VCs I'm a big fan of Jenny Fielding of Everywhere Ventures, Kirby Winfield at Ascend (PNW represent!) & Nate Williams. 💎 The market in one word: 'turbulent' 💎 Fundraising bi-furcation; 2X founder building in AI (rounds take weeks) vs All Others (rounds take up to 6 months). 💎 "Leading VCs" (ie. first check in) are putting in a TON of work - building conviction & then helping founders fill the round. 💎 Up to 5 rounds pre-A; need lower early valuations to enable step ups 💎 Pre-seed entry valuations have corrected to $5-8M 💎 Round sizes have increased at pre-seed & seed for extended runway Many more insights in the full pod here: https://lnkd.in/gYf-DMr6 #venturecapital #preseed

Most VCs don’t add as much value as they think https://lnkd.in/gKXfFKMZ - 33% of founders said that they felt VCs simply weren’t honest about the expertise they could offer - 65% said VCs missed mark delivering beyond cash  - Female founders rated value-add as twice as important than males - Value-add includes connections to partners, customers, talent, sharing knowledge Lean AI startups are new black get so get grants + angels + perhaps one right VC for pre seed for MVP for initial traction then with CVP after crossing $100K MRR raise seed at 2.5x valuation of pre seed then get to $10M ARR in 2 years with $100M valuation with awesome cap table where VC's own 20% max. Cheers.....Steve AI startup advisor 'force multiplier'  https://lnkd.in/g38mWcs 

The Pro-Rata Trap: How VCs Lose Millions on Their Biggest Winners Excited to publish our newest Last Money In Media newsletter today. This week we deep dive into: - How pro-rata works - Reasons why investors sometimes DO NOT get or do not take their pro-rata - My personal view on how pro-rata actually works (not legally) - A few unique pro-rata stories that led to me getting pro-rata when we didn’t “legally” have it and losing it when we did Unfortunately SPV leads are occasionally unable to double down and get pro-rata on some of their breakout winners. This is an issue both syndicate leads and venture funds deal with and an issue that can have massive impacts on returns given the dilution from follow-on financings. Obviously not all of your portfolio companies are going to be winners where you want to re-invest and maintain your ownership percentage, but given a VC’s Seed investment may be diluted 50%+ from first investment to IPO, having a strategy around maintaining ownership, especially when acquiring ownership requires relatively minimal additional capital (e.g. Seed+, Series A), is critical to avoid leaving millions (if not tens to hundreds of millions) on the table in winners. And when we say hundreds of millions, we mean it. As a quick example, let’s say Riverside acquires 10% of Company A at Seed. It turns out Company A goes the distance and IPO’s at a $3B valuation. If I maintained my full 10% in the business at IPO by investing in every pro-rata round (and thus avoiding almost all dilution), my stake would be worth ~$300M. If I skipped every pro-rata round, it’s likely I would have been diluted 50-70% and my take may only be worth $100M-$150M (i.e. $150M+ left on the table). Point being - pro-rata is serious money for the big winners. Link to full article in comments. -- Powered by Sydecar and Forge, Last Money In Media is the most actionable venture capital newsletter. Written by Zachary Ginsburg and Alex Pattis, the global syndicate leaders with 800+ SPVs invested.

Ola Amigos, Launching into a month of deep dives into the vibrant realms of VC and investments. Let's kick things off by answering the burning question: How Does Venture Capital Work? Spotting Gold Mines ✨🔍: Venture capital kicks off with the thrilling hunt for gold mines. We're talking about a meticulous process—industry exploration, networking galore, and data-driven precision—to spot ventures that scream potential. Hardcore Due Diligence 🕵️♂️💼: At the core of venture capital is some serious due diligence action. We're not just scratching the surface; we're delving deep into financials, operations, and strategic alignment. Think of it as a SWAT analysis on steroids—assessing risks, market viability, and alignment with our investment objectives. Strategic Money Moves 💰🕺: Successful due diligence sets the stage for strategic money moves. More than just cash injection, we're bringing our A-game—extensive industry chops and a killer network. It's a partnership dance, strategically crafted for mutual growth. Always Got Your Back 🤝💼: Post-investment, we don't just cut ties. We're in it for the long haul as your strategic partner. Expect continuous support, regular check-ins, and strategic nudges to help your startup spread its wings. Scaling Like a Boss 📈🚀: Now, we're not just talking growth; we're talking strategic scaling and sustainable dominance. Additional funding rounds are not random—they're tactical. We're there every step to ensure your market takeover is nothing short of legendary. Exit with a Bang 💥🎉: The grand finale involves navigating exit strategies. Acquisition or IPO, we orchestrate exits that leave everyone smiling—especially you and your investors. Venture capital is a dynamic tango of strategy, risk, and foresight. Buckle up for a month of unrivaled insights. Stay tuned, and let's rock the venture capital landscape together! 🚀💼 #VentureCapitalMysteries #EntrepreneurialJourney #GameChangersUnite

At this point - everyone knows my bias around people We started Oceans because we saw a big gap in the support Founders needed from their partners beyond the check. We felt like we had a unique opportunity to change the game given our own backgrounds as Operators in the hard day to day decisions and the desire and genuine love in the grind of building something great. Being a founder is hard. It gets easier when you surround yourself with world class talent that raises your bar. Founders should view their investors as value add - and ideally choose who they want at their table. My goal in my conversations with Founders is to be their best (and most fun) investor conversation of their day. The one where they can be open and honest. The one where we talk about THEM and THEIR TEAMS - not just their valuation and raise details. The one where we both talk about our own strengths and areas of development and what makes them a unique team to solve the problem they are aiming to solve. And hopefully they ask the same of me - what makes Oceans the right partner for them - because these conversations - at this stage especially - should be a two-way conversation. And now it looks like I will be having many more of those If you are a great Founder looking to build a stellar team, knowing your current deck will be outdated in a few months but the team is what will remain the same and why you will win - reach out. Lets go!!!!!!!!!!!!! Steven Rosenblatt, Joshua Rahn, Sara Barek, Brian Lew, Sasha Levyn

I’ve been in the startup world for over a decade now. I’ve built my own companies, helped other entrepreneurs bring their ideas to life, and mentored countless founders getting off the ground. Everyone knows it takes courage and a thick skin to take the leap, but one thing people often overlook is that once you’ve mustered all the courage to give it a go, you then have to find investors who believe in you and your vision so much that they are willing to put their money (and their reputations) on the line to give you a shot at making your dream a reality. Pre-seed and seed investing is a totally different game. There’s no product let alone product-market fit to lean on, no revenue to ramp up, and no established go-to-market strategy to drive adoption and growth. How do you even go about placing bets on ideas this early? In my opinion, the best earliest stage investors have been in the trenches themselves. They’ve built and scaled products and businesses, attracted and hired all sorts of talented people, and developed the instinct to identify when opportunity and timing cross paths with talent and execution. On top of that, they have a well-earned ability to attract other top-notch investors. When we set out to build Polymer we had a big vision and not much else beyond an early prototype. We were lucky to connect with the team at Oceans straight out of Entrepreneurs Roundtable Accelerator. They could see our vision and were as excited about it as we were. We got to know everyone on the team and grew to appreciate and value each partners’ trench-based superpowers. We have come a long way from those early conversations in 2019, but at every step, we’ve been able to lean on the Oceans team for guidance and support. I can say confidently they are the best team in the business and I’m excited for them to close their new fund so they can invest in many, many more companies. If you are building something big and looking for someone who will have your back from day one, make sure to reach out. Congratulations Steven Rosenblatt Joshua Rahn Brian Lew Sara Barek Glenn Handler!