The hottest Startup funding Substack posts right now

And their main takeaways
Category
Top Business Topics
Construction Physics 11065 implied HN points 04 Jan 25
  1. There are maps showing natural amenities across the US, ranking places based on factors like temperature and sunshine. The West Coast and Florida score well, while the Midwest does not.
  2. Venture capital funding is shifting, with larger firms getting most of the money while smaller ones are struggling. There's a big drop in initial public offerings, making it tougher for investors.
  3. Boeing's recent struggles can be linked to its past merger with McDonnell Douglas, which seems to have affected its product development negatively.
The VC Corner 459 implied HN points 14 Aug 24
  1. You need a solid tech stack to improve efficiency in early-stage funds. This helps you manage tasks better and focus on high-impact work.
  2. A basic software budget for productivity can be around $1.2K per year per person, with additional costs for add-ons and data sources.
  3. Understanding your goals and resource needs is essential when choosing tools. Investing in the right data sources and proper tech can really boost your fund's performance.
Venture Curator 419 implied HN points 28 Jun 24
  1. Product-Market Fit is crucial for startups; it means customers are buying and using the product enthusiastically.
  2. Metrics are key to determine Product-Market Fit; track factors like customer acquisition cost, customer lifetime value, and retention rates.
  3. If you haven't achieved Product-Market Fit, focus on customer feedback, keep your team lean, and avoid ineffective shortcuts.
Newcomer 1808 implied HN points 31 May 23
  1. Venture capital supports unsustainable models to achieve scale, like with tech giants Apple, Google, and Amazon.
  2. Companies like Uber and Airbnb, initially fueled by VC funding, now face challenges as they struggle with profitability.
  3. VC funding has fueled a culture of excessive capital consumption, leading to concerns about sustainability and the future of innovation.
Venture Curator 319 implied HN points 14 May 24
  1. When seeking funding, having evidence of growth potential is essential, even without a built product. Investors look for scalability and market understanding.
  2. Successful startups focus on solving popular, urgent, and growing problems with frequent solutions. Frequency in addressing a problem can lead to exponential growth.
  3. For startups, having the right distribution channels can be more important than having a great product. Efficient distribution impacts customer acquisition cost and lifetime value.
Get a weekly roundup of the best Substack posts, by hacker news affinity:
ChinaTalk 370 implied HN points 03 Jan 25
  1. Pony.ai is a leading robotaxi company in China, rapidly expanding its fleet and operations in major cities. They are working to boost their commercialization amidst significant competition.
  2. Despite a promising start, Pony.ai is currently facing challenges in profitability, with high operational costs and moderate revenue growth. They hope to improve their financial situation by 2025.
  3. Pony.ai is exploring international expansion but must navigate strict regulations and competition in foreign markets. They currently focus on China, where they have strong government support and demand.
Venture Curator 219 implied HN points 07 May 24
  1. Investors need a clear understanding of the problem a startup is solving, focusing on why it's worth solving and who faces the problem.
  2. For a successful pitch to investors, startups must present a business model beyond just pricing, detailing revenue streams, competitive advantage, and key economics.
  3. In the world of venture capital, the potential for startups to become billion-dollar companies is crucial for investors, impacting funding decisions and the overall success of the venture.
Venture Curator 199 implied HN points 23 Apr 24
  1. Poor decisions in follow-on investments can be the biggest risk of value destruction for VCs.
  2. Time and effort in VC decision-making are often misaligned, with more focus on initial investments than follow-on.
  3. Two simple methods to determine Product-Market Fit are through retention curves and Net Promoter Scores.
Venture Curator 179 implied HN points 30 Apr 24
  1. Raising capital is a sales process where founders sell trust and confidence in building something valuable. Understanding VC decision-making dynamics increases the likelihood of closing deals.
  2. Knowing the structure and decision processes of VC firms can help founders navigate partnerships and improve their chances of success.
  3. The key to success in VC pitch meetings is building relationships with various partners within a firm to gain broader support and increase the probability of getting to a 'yes.'
Venture Curator 199 implied HN points 11 Apr 24
  1. Successful VC fundraising starts by identifying the right fit - pay attention to signals VCs give about the types of startups they want to fund.
  2. Pitch big visions to VCs, focusing on disruptive opportunities with outsized returns to stand out in the competitive startup landscape.
  3. Key factors for VCs to invest include unique insights, good timing, clear messaging, scalable growth plans, strong moats, early traction, and founder's passion.
Venture Curator 199 implied HN points 19 Mar 24
  1. The 'ask and use of funds' slide is a crucial opportunity for founders when fundraising; it should clearly state how much money is being raised, for what purpose, and avoid common mistakes like not including a specific dollar amount.
  2. Include SMART goals in the 'use of funds' slide, focusing on product, traction, market validation, and key hires; investors want to see a detailed plan on how the raised funds will contribute to company progress.
  3. Avoid including valuation on the 'ask' slide before securing a lead investor; the focus should be on the amount needed and what it will be used for, rather than terms of investment.
Venture Curator 199 implied HN points 08 Mar 24
  1. Startups can raise funding with just an idea, without a fully developed product. Investors look for scalability and growth potential in startups.
  2. Investors analyze startup ideas based on three main aspects: Problem, Solution, and Insights. Startups should focus on solving a popular, urgent, and scalable problem with a unique advantage.
  3. Successful startups have key elements like frequency in problem-solving, a clear differentiation in the solution, and an unfair advantage in the market. Founders should aim for these to attract investors.
Venture Curator 179 implied HN points 05 Mar 24
  1. Investors value the velocity of return on customer acquisition cost (CACD) more than the LTV/CAC ratio. They want to know how quickly their investment in acquiring customers is returned as customer lifetime value.
  2. Customer cohorts are crucial: Not all customers have the same value. By tracking the LTV/CAC ratio by customer cohort, businesses can optimize their marketing efforts and focus on acquiring high-LTV customers.
  3. Startup success is tied to the correlation between customer acquisition cost (CAC) and customer lifetime value (LTV). A high LTV/CAC ratio indicates a successful business model, while a low ratio can lead to financial challenges and potential startup failure.
Venture Curator 219 implied HN points 01 Feb 24
  1. Investors prioritize understanding the market opportunity over just focusing on market size. They want to see a detailed bottom-up approach that showcases how a business will attract and retain customers.
  2. Entrepreneurs should move away from the typical market size slide in pitches. Instead, they should emphasize showing investors a deep understanding of the market opportunity at an individual customer level.
  3. Investors are interested in startups that create new markets rather than compete in established markets. Building a bottom-up model focusing on customer acquisition and satisfaction is critical in pitching to investors.
Venture Curator 219 implied HN points 30 Jan 24
  1. When raising funds, focus on milestones rather than expressing your 'Use of Funds' slide as percentages to show understanding of the funding journey.
  2. Understand where the value increase in your startup will come from, ensuring the proper allocation of funds for operations, technology development, and growth metrics.
  3. Design your fundraising strategy around specific goals and targets, painting a clear picture of how the next round of funding will be achieved through key hires, customer growth, and revenue increase.
Dealflow Latam 99 implied HN points 22 Apr 24
  1. Dealflow LatAm newsletter covers startup funding news, M&A news, investor and accelerator news, startup news, big company and policy news in the Latin American ecosystem.
  2. Sign up for the newsletter to stay updated on the latest from the Latin American startup and VC ecosystem. The curated weekly email delivers relevant articles straight to your inbox every Monday morning.
  3. The newsletter also highlights funding rounds of various startups in Latin America, showcasing the growth and investment activities in the region.
Nail It and Scale It 39 implied HN points 11 Jun 24
  1. When asking about customer acquisition cost (CAC), it's important to know the full story behind the number. Questions like how long the data covers and how much was spent can reveal if the figure is reliable.
  2. Some businesses may share only their best data to look good, which can be misleading. It's smart to ask how recent and continuous the data is to get a clearer picture.
  3. CAC shouldn’t be seen alone. Understanding what a company is trying to achieve can change how we interpret that cost, especially as they grow and scale their spending.
Overlooked by Alexandre Dewez 275 implied HN points 04 May 23
  1. The Italian startup ecosystem has shown growth with an increase in funding and the rise of unicorns like Scalapay and Satispay.
  2. Compared to other European countries, Italy's VC funding per capita is lower, indicating room for growth in the ecosystem.
  3. Italy's tech ecosystem is still in early stages, facing challenges like brain drain, lack of risk-taking mindset, and the need for stronger angel investor presence.
Venture Curator 239 implied HN points 04 Sep 23
  1. Limited Partners (LPs) evaluate the performance of a VC fund using terms like DPI, RVPI, and TVPI.
  2. When raising funds for a startup, VCs look for reasonableness in the amount raised relative to progress and goals. The amount raised can reflect valuation expectations and the company's runway.
  3. Understanding financial factors like cash in, cash out, and achieved milestones can make VC meetings smoother and increase the chances of getting funded.
Venture Curator 219 implied HN points 28 Aug 23
  1. Start Small, Stay Nimble: Raising less capital in early stages allows flexibility for strategic adjustments while maintaining control.
  2. Small Beginnings, Bigger Rewards: As your startup proves its worth, raising less initially can lead to diluting fewer shares and higher valuations later on.
  3. Grow Smarter, Stronger: Strategic use of capital matters more than the amount raised, like nurturing a seed to watch your startup grow into a mighty oak.
Venture Curator 139 implied HN points 08 Dec 23
  1. Start Small, Stay Nimble: Raising less capital early on gives flexibility for strategic adjustments while retaining control.
  2. Small Beginnings, Bigger Rewards: Raising less initially leads to diluting fewer shares later as the startup's valuation naturally increases.
  3. Grow Smart, Grow Strong: It's not about the amount of capital raised but how strategically it is used for smarter growth.
Venture Curator 179 implied HN points 15 Sep 23
  1. VC firms prefer having an option pool before the funding round to ensure proper allocation of shares and ownership percentages among founders, investors, and future employees.
  2. Lessons from the Dot-Com era suggest parallels with the current Generative AI hype, highlighting potential trends in commoditization, emergence of innovative disruptors, and advice for startups to focus on long-term goals.
  3. Startups often reinvest VC funds into other startups, showcasing a trend seen during peak market craziness, where companies like Stripe and Coinbase made significant investments.
Venture Curator 159 implied HN points 31 Oct 23
  1. Understanding the relationship between risk and cash flow is crucial for founders to successfully raise funding.
  2. Peeling away layers of risk with each funding round can help founders attract more investment.
  3. During user interviews, focus on understanding user problems rather than pushing product features.
Lolita's Newsletter 137 implied HN points 06 Aug 23
  1. US economy is experiencing ups and downs with increased interest rates and reduced consumer spending
  2. Global VC funding dropped significantly in Q2 2023 but some areas like AI and female founders are showing promise
  3. Despite the challenges, tough times can present opportunities for staying informed, resilient, and adaptable
Venture Prose 1058 implied HN points 03 Jul 20
  1. Kima Ventures, led by Xavier Niel, focuses on investing in French tech founders worldwide.
  2. Their investment strategy involves making $150k investments in 100 new startups annually, with a particular focus on French tech founders.
  3. Kima Ventures aims to stay with companies for the long haul, providing support through their portfolio management platform and maintaining steady returns.
Venture Prose 519 implied HN points 11 Jan 21
  1. Seed investments are taking on the role of traditional Series A funding, leading to a shift in investment strategies.
  2. Collaboration and partnerships with angel investors and operators are crucial for the success of seed funds like New Wave, focusing on founder-centric approaches.
  3. Teamwork and partnerships are emphasized in the journey of launching and growing an initiative like New Wave, highlighting the importance of collective effort for long-term success.
Venture Prose 199 implied HN points 13 Oct 20
  1. Success in cooking and venture capital requires time, experience, and the ability to adapt.
  2. Venture capital involves dealing with chaos and uncertainty, but principles and a long-term horizon can guide decisions.
  3. To succeed in venture capital, focus on timing, biases, competition, specialization, and building capacity and capability.
Clouded Judgement 5 implied HN points 11 Oct 24
  1. A budget flush happens when companies spend leftover budget at the end of the year to avoid losing any funds. This can boost sales for software companies looking to close deals quickly.
  2. Last year's budget flush was stronger than usual, with companies spending more due to concerns over budget cuts. This year, a similar trend could happen, driven by a more positive economic outlook.
  3. The performance of software stocks is rising, signaling optimism in the market. Investors are hopeful that major companies will report good earnings, which could lead to more investments in the software sector.
Magis 36 implied HN points 19 Jun 23
  1. Startups can raise large upfront rounds to de-risk future fundraising and take advantage of money's present value.
  2. Founders should benchmark their equity dilution against similar funding rounds to understand ownership implications.
  3. Raising more capital than necessary can lead to giving away equity at a discount, especially for capital-efficient startups.
Startup Real Talk 1 HN point 18 Oct 23
  1. Venture capital investors expect high returns, so startups need to aim to be either hugely successful or risk being considered failures.
  2. In the world of venture-backed startups, growth is essential - if a business can't sustain growth, it may face failure.
  3. Founders should carefully assess if venture capital funding aligns with their business goals and take steps to mitigate potential misaligned interests with investors.
Bold & Open 0 implied HN points 17 Mar 24
  1. Open source projects can thrive by sharing ideas without locking them behind restrictive intellectual property rights.
  2. When seeking funding for an open source startup, consider the need for funding based on growth and profitability.
  3. Investors look for viable projects with clear market fit, competitive advantage, a strong team, scalability potential, and a clear exit strategy.