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🌟💰 Cendana & Kline Hill Launch $105M Fund for Secondary Stakes in Seed VC Funds💰🌟 📢Cendana Capital, a fund of funds that invests in dozens of seed-stage venture firms, and Kline Hill Partners, a firm focused on buying small previously owned private assets, are announcing a new $105 million Kline Hill Cendana Partners fund, which is well above the $75 million target, reported TechCrunch. 🔊“Over the past 2 years, we’ve been hearing from our portfolio funds, ‘We have a family office that wants to sell their $2 million commitment. Would you be interested in buying it?'” said Michael Kim, founder and managing director of Cendana Capital. "As we navigate the evolving VC landscape, this fund offers a unique opportunity to buy stakes in seed-stage VC funds and startups at relative bargains," shares Michael Kim. 💡💸 Led by Kim and Chris Bull, CFA of Kline Hill Partners, this joint venture combines expertise and relationships to navigate the secondary market with precision. "Our goal is to capitalize on the current buyer's market in venture capital," says Bull. 🌐🤝 "With traditional secondary investors eyeing the venture space, the competition is fierce. However, our focus on seed-stage firms sets us apart," explains Kim. 📈💼 Cendana’s relationships with its portfolio funds, including Lerer Hippeau, Forerunner Ventures and Bowery Capital, are helping it take the lead on sourcing secondary deals. Cash-hungry venture investors, whether VCs themselves or their LPs, are increasingly looking to sell their illiquid positions to secondary buyers.  As they embark on this venture, the firms are poised to make a significant impact on the VC ecosystem, providing much-needed liquidity and unlocking new opportunities for growth. "The future looks bright for Cendana and Kline Hill's joint endeavor," concludes Bull. 🌟💰 With the demand for liquidity in the VC space at an all-time high, Cendana and Kline Hill's initiative couldn't come at a better time. By facilitating secondary transactions in seed-stage funds, they're not only providing relief to cash-hungry investors but also fueling innovation and growth in the startup ecosystem. 🌱💡 As the venture capital landscape continues to evolve, partnerships like these will play a crucial role in ensuring the health and sustainability of the industry. With their proven track record and strategic approach, Cendana and Kline Hill are well-positioned to lead the way forward. 🚀🌐 ✅ 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 #VentureCapital #SecondaryMarket #SeedFunding #Innovation #StartupInvesting #Entrepreneurship #CendanaCapital #KlineHillPartners #VCInvestment #SeedStage #LiquidityOpportunity #FutureofVC #InnovativePartnerships

Empowering Startups: The Magic of Micro Venture Capital in Early-Stage Funding Part - 6 Link to Part -5: https://lnkd.in/gtEGPdPZ Let us look at a few more US-based Micro / Early Stage VC firms: 1) Acrew Capital, SF: Acrew Capital is a Venture Capital Fund managed & led by Founding Partners Theresia Gouw , Asad Khaliq, Lauren Kolodny, Mark Kraynak, Vishal Lugani, & others. Some of their notable bets include Gusto, Chime, Plaid, Casa, Cipher Trace, Coinbase, & others. 2) Shrug Capital, SF: Shrug Capital is a Venture Capital Fund managed & led by Moshe Lifschitz(Managing Partner) & Niv D.(Managing Partner). Some of their notable investments include Varda, Hadrian, Anduril, Living Carbon, Nucleus, Liquid Death, & others. 3) Dorm Room Fund, NY: Dorm Room Fund is a Venture Fund focused on student founders. The fund is managed & led by Molly Fowler(GP), Caroline Toch(Principal), Student Investment Partners Secil Altintas, John Azubuike, Ananya Chadha, Andy Huai-Ping Chen, MD MBA, Danny Delaney, Archika Dogra, Zaid Fattah, Elana Golub, Deshani Gunathilake, Sydney Hertz , Lena Renshaw , & others. Some of their notable investments include Fiscal Note, Shield AI, Dandy, Meta Map, Science IO, & others. 4) Kindred Ventures, SF: Kindred Ventures is a Venture Fund managed & led by Steve Jang(Founder & Managing Partner), Kanyi Maqubela(Managing Partner), Natalie Arora, Tsolmon Jargalsaikhan, & others. Some of their distinguished investments include Adyton, Basis Theory, Coinbase, Housable, Opal, Particle, Tonal, & others. 5) Maven Ventures, SF: Maven Ventures is a Venture Fund managed & led by Jim Scheinman(Founding Managing Partner), Sara Thomas Deshpande(GP), Robert Ravanshenas, & Kelly Briton. Some of their notable investments include Zoom, Embark, Docket, Cruise, AngelList, & others. 6) Red Sea Ventures, NY: Red Sea Ventures is a Venture Capital Fund managed & led by Scott Birnbaum(Founding Partner), Ken Lau, Tamar Vidra, & Rachel Aboodi. Some of their noteworthy investments include Allbirds, WayUp, Fly, Clarasight, Beacon, & others. #VentureCapital #VC #investment #startup

Entrepreneur lessons from a venture capitalist- an interesting take on the state of venture capital globally by Techstars 2024: The Great Venture Reset. So what will 2024 look like? The short answer is rather than a prelude to a recovery, 2024 will be much more of the same. Valuations will continue to be real world rather than fantasyland, VCs will raise substantially less than in the times of plenty, and the IPO market will gradually return (largely due to a backlog of companies requiring liquidity and cap table simplification), but not to anything like the feeding frenzy we saw a couple of years ago. Above all the Great Venture Reset means the consolidation of the VC industry is here to stay, and there are likely to be significantly fewer, but higher performing VCs as a result. One of the biggest themes to have emerged in 2023 is the consolidation that has occurred within the venture capital industry, and the rise of so-called “zombie” VC funds, which effectively operate only to manage existing investments, while being unable to raise fresh capital. This is especially true of emerging managers, who were on track to raise far less this year than they have in a decade, The main reason underlies this: LPs had a reality check Over the past 18 turbulent months, LPs have had a reality check regarding venture capital as an asset class. As returns have fluctuated wildly, many have come to appreciate that despite its obvious attractions (especially the stellar returns of the leading firms and the occasional stratospheric startup success story), venture is an overcrowded space subject to extreme volatility, which makes the 10 year-plus lifespan of a typical fund significantly less appealing than it was during a bull market. They have recalibrated their capital allocation strategy accordingly, with many rejecting or minimizing exposure to venture capital

BY MCKINSEY & COMPANY: A machine-learning approach to venture capital! In this interview, Hone Capital managing partner Veronica Wu describes how her team uses a data-analytics model to make better investment decisions in early-stage start-ups. Veronica Wu has been in on the ground floor for many of the dramatic technology shifts that have defined the past 20 years. Beijing-born and US-educated, Wu has worked in top strategy roles at a string of major US tech companies—Apple, Motorola, and Tesla—in their Chinese operations. In 2015, she was brought on as a managing partner to lead Hone Capital (formerly CSC Venture Capital), the Silicon Valley–based arm of one of the largest venture-capital and private-equity firms in China, CSC Group. She has quickly established Hone Capital as an active player in the Valley, most notably with a $400 million commitment to invest in start-ups that raise funding on AngelList, a technology platform for seed-stage investing. In this interview, conducted by McKinsey’s Chandra Gnanasambandam, Wu explains the differences between the tech-investment landscape in China and the United States and describes how Hone Capital has developed a data-driven approach to analyzing potential seed deals, with promising early results. The Quarterly: Tell us a little bit about the challenges you faced in the early days of Hone Capital and how you came upon AngelList. Share Sidebar Veronica Wu biography Veronica Wu: When CSC Group’s CEO, Xiangshuang Shan, told me he wanted to build an international operation, I had never done venture capital before. I just knew what they did and how hard it is to get into the VC space in Silicon Valley. There have been very few examples of outside capital that successfully entered the Valley. It’s partly an issue of credibility. If you’re an entrepreneur who’s trying to build your business, how do you know a foreign firm will be there in the next round, whereas people here in the Valley have already built a track record of trust. The question for us became, “How do we access the top deals so that we can build that network of trust?” I was very fortunate that an ex-McKinsey colleague of mine told me about a platform called AngelList that might be an interesting hack into the VC scene. I soon learned more about how they were building an online ecosystem of top angel investors and a steady flow of vetted seed deals. The platform provided access to a unique network of superconnected people—we would not have known how to reach many of them, and some would not even have considered working with us for a very long time, until we were more established. So we saw AngelList as an opportunity to immediately access the VC community. Stay current on your favorite topics Subscribe We also saw the huge potential of the data that AngelList had. There’s not a lot of ........ https://lnkd.in/gfG5SeYy

BY MCKINSEY & COMPANY: A machine-learning approach to venture capital! In this interview, Hone Capital managing partner Veronica Wu describes how her team uses a data-analytics model to make better investment decisions in early-stage start-ups. Veronica Wu has been in on the ground floor for many of the dramatic technology shifts that have defined the past 20 years. Beijing-born and US-educated, Wu has worked in top strategy roles at a string of major US tech companies—Apple, Motorola, and Tesla—in their Chinese operations. In 2015, she was brought on as a managing partner to lead Hone Capital (formerly CSC Venture Capital), the Silicon Valley–based arm of one of the largest venture-capital and private-equity firms in China, CSC Group. She has quickly established Hone Capital as an active player in the Valley, most notably with a $400 million commitment to invest in start-ups that raise funding on AngelList, a technology platform for seed-stage investing. In this interview, conducted by McKinsey’s Chandra Gnanasambandam, Wu explains the differences between the tech-investment landscape in China and the United States and describes how Hone Capital has developed a data-driven approach to analyzing potential seed deals, with promising early results. The Quarterly: Tell us a little bit about the challenges you faced in the early days of Hone Capital and how you came upon AngelList. Share Sidebar Veronica Wu biography Veronica Wu: When CSC Group’s CEO, Xiangshuang Shan, told me he wanted to build an international operation, I had never done venture capital before. I just knew what they did and how hard it is to get into the VC space in Silicon Valley. There have been very few examples of outside capital that successfully entered the Valley. It’s partly an issue of credibility. If you’re an entrepreneur who’s trying to build your business, how do you know a foreign firm will be there in the next round, whereas people here in the Valley have already built a track record of trust. The question for us became, “How do we access the top deals so that we can build that network of trust?” I was very fortunate that an ex-McKinsey colleague of mine told me about a platform called AngelList that might be an interesting hack into the VC scene. I soon learned more about how they were building an online ecosystem of top angel investors and a steady flow of vetted seed deals. The platform provided access to a unique network of superconnected people—we would not have known how to reach many of them, and some would not even have considered working with us for a very long time, until we were more established. So we saw AngelList as an opportunity to immediately access the VC community. Stay current on your favorite topics Subscribe We also saw the huge potential of the data that AngelList had. There’s not a lot of ........ https://lnkd.in/gP7T44KA

I read an interesting article about a research study from Sante Ventures. They researched 1384 Venture Capital Funds from 1978-2018. The study revealed that only 17% of Venture Capital Funds larger than $750M Assets Under Management (AUM) generated a return greater than 2.5 times the Total Value to Paid-In (TVPI) after deducting management fees and carried interest. That means 83% of these large firms generated returns less than 2.5 times TVPI. The research also found that smaller funds with less than $750M AUM were 50 percent more likely to return more than 2.5 times TVPI. The IRR between large and small funds was significant. Large funds had an average IRR of 9.7 percent while small funds had an average IRR of 17.4 percent. The research study supported Sante Venture's decision to disperse its total AUM of $800M across five funds to keep each fund below a certain size. Kevin Lalande, the founder of Sante Ventures strongly believes that's the best way for venture capital funds to be organized and practiced. It's hard to verify the data from the study because there isn't much publicly available data about the performance of Venture Capital funds. Nevertheless, I didn't find any articles from large VC funds or journalists refuting the claims of the Sante Venture study. https://lnkd.in/gYMKGwRX

"The Big Book of Venture Capital" is a good collection of industry insights. It is a recommended read to anyone interested in the VC ecosystem. 🙌 Kudos to Rohit Yadav, CAIA for such a work.

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

Inspired Capital secures $330M fund to take venture capital ‘back to the studs’ Inspired Capital is celebrating its 5th day with the closing of its Inspired Capital Fund III with $330M successful superior commitments. This caller magnitude brings the firm’s full assets nether absorption to astir $900 million. The New York-based early-stage task steadfast was founded successful 2019 by entrepreneurs Alexa von Tobel and Penny Pritzker. They went connected to rise $200 million for a debut money and past $281 million for its 2nd money successful 2021. Partner Lucy Deland and COO Mark Batsiyan are besides co-founders. Fund III is backed by organization investors, including starring endowments, pensions and foundations. “For maine it’s benignant of a existent ‘pinch maine moment,’ due to the fact that I decided to give the adjacent galore decades of my vocation toward uncovering the entrepreneurs that privation to wholly alteration what’s possible,” von Tobel told TechCrunch. “Venture capital, erstwhile decently deployed is really the astir almighty economical motor that the satellite has ever seen. And arsenic existent stewards of task deployed properly, it is 1 of the astir almighty ways to alteration the world.” Inspired Capital leads investments of pre-seed to Series A into what von Tobel, managing partner, described arsenic “fearless founders who are solving the hardest challenges facing humanity.” The steadfast writes checks betwixt $1 cardinal and $15 million. It has amassed a portfolio of implicit 50 companies that person gone connected to rise a cumulative $1.5 cardinal successful follow-on capital. Notable investments see spot tech startup Habi, present valued astatine $1 billion; worker ownership institution Teamshares; concern banking institution Rho; and Paytient, which has developed a strategy for making healthcare payments implicit time. Like earlier funds, von Tobel expects to put successful betwixt 25 and 30 companies with the 3rd fund, which volition beryllium astir 10 investments per year. Inspired Capital volition besides proceed to put successful a wide scope of companies gathering “An Inspired Future,” which is the firm’s thesis astir “innovations that determination the satellite dramatically forward.” That could include, for example, the digitization of the concern economy, retooling the modern workforce, the monetization furniture of the internet, unlocking AI’s imaginable AI and fiscal equilibrium successful a volatile society. As portion of the caller fund, Inspired Capital wrote a manifesto that highlights however the task superior steadfast thinks, what it believes successful and what it is looking for. Among that is however the steadfast likes to physique monolithic companies that are embracing precise large risks and solving immense problems, von Tobel said. “There vol...