The hottest Venture Capital Substack posts right now

And their main takeaways
Category
Top Business Topics

☎️ E11: In Conversation with Lux Capital on the State of the Future

Let Us Face the Future • 138 implied HN points • 18 Aug 23
💼 Business Venture Capital Funding Research Innovation Startups
  1. In venture capital, focusing on stochastic opportunities and thinking qualitatively can bring competitive advantage.
  2. Research in venture capital is rare but can uncover novel investment theses and give a long-term competitive edge.
  3. Balancing science risk and political landscape awareness is crucial in deep tech investments.

Why Tech and Crypto Stocks are so extreme [Finance Fridays]

Technology Made Simple • 119 implied HN points • 22 Jul 22
💰 Finance Tech Stocks Venture Capital Investing
  1. Blitzscaling in tech leads to high valuations and rapid growth without immediate profitability, creating potential for massive crashes when unsustainable models are exposed.
  2. Tech companies often lack clear paths to profitability, growing on funding alone. When market conditions shift, these companies can implode quickly, impacting investors.
  3. Investing in tech involves a game of passing the hot potato, where VCs aim for profitable exits even if the invested companies are unsustainable. This dynamic can lead to losses for unsuspecting retail investors.

The Ultimate Investors List of Lists 🚀

The VC Corner • 1 HN point • 27 Aug 24
💼 Business Venture Capital Investing Startups Funds Finance
  1. Finding the right investors is crucial for startup success. It helps to connect with the right people whether you're just starting out or already growing.
  2. Using curated lists of investors saves time and effort in your search. This way, you can focus more on running and building your business.
  3. Access to a variety of potential investors increases your chances of finding the right match for your startup's needs. More options mean better opportunities!

The Billion Dollar Revenue Club

next big thing • 145 implied HN points • 13 Jul 23
💼 Business Technology Venture Capital Startups Investing Revenue
  1. The Unicorn era is making way for companies that focus on achieving over $1 billion in annual revenue.
  2. Venture funding should prioritize companies with potential to reach over $1 billion in annual revenue, rather than just a high valuation.
  3. The focus on $1+ billion in annual revenue is seen as a healthier and more sustainable goal for companies than chasing a valuation north of $1 billion.
Get a weekly roundup of the best Substack posts, by hacker news affinity:

Niche is the Next Big Thing

Equal Ventures • 59 implied HN points • 29 Dec 22
💼 Business Venture Capital Competition Market Analysis Business Strategies Startups
  1. Competition in the tech industry has intensified, making it essential for companies to find a sustainable advantage to generate long-term profitability.
  2. Focusing on niche markets can lead to less competition, higher profits, and sustainable growth compared to chasing large markets with intense competition.
  3. Dominating a niche market allows for the development of early competitive advantages, market dominance, and long-term profitability, providing a foundation for future expansion and success.

Announcing $175m more to Bridge the Digital Divide

Equal Ventures • 19 implied HN points • 20 Feb 24
💼 Business Venture Capital Technology Startups Investments Funding
  1. Equal Ventures raised $175 million to Bridge the Digital Divide - $100m for Equal Ventures Fund 2 and $75m for the Opportunity Fund to invest in analog markets like climate, insurance, retail, and supply chain.
  2. The firm aims to support founders in non-traditional technology markets and believes the time is right for innovation in these industries.
  3. Equal Ventures focuses on providing hands-on support, independent conviction, and a 'prepared mind' to startups, aiming for strong founder relationships and long-term success.

Absurd Seed Rounds Arguments

Venture Prose • 359 implied HN points • 05 Jan 21
💼 Business Venture Capital Entrepreneurs Investment Startups
  1. Ownership percentage isn't everything. What matters is belief in your venture and ambition from investors.
  2. As a founder, maintain control of your cap table. Choose investors based on their value, not just their reputation.
  3. When raising a large seed round, consider working with multiple institutional investors to manage risks and dynamics effectively.

Series A Activity: June 2023

Magid and Co • 39 implied HN points • 05 Jul 23
💰 Finance Investment Funding Venture Capital Founders
  1. There was a significant decrease in Series A deal activity from June 2022 to June 2023, with 290 deals in 2022 compared to 146 in 2023.
  2. It's crucial for founders to closely monitor individual firm actions rather than just market-level statistics, especially when major players from previous years are less active.
  3. Founders seeking funding should focus on understanding which investors are actively writing checks and building relationships with these firms, even if they are less known or harder to reach.

9. Describing Agency Problems in Serfdom, Employment and Entrepreneurship

Insight Axis • 39 implied HN points • 17 Apr 23
💼 Business Employment Entrepreneurship Venture Capital Investment Relationships
  1. Serfdom involved extreme inequality but had direct mutual interest between lords and serfs for protection and survival.
  2. Employment dynamics often have high inequality and may involve agency problems if the employer is not a significant shareholder, highlighting indirect mutual interest.
  3. Entrepreneurship with venture capital introduces extreme inequality similar to serfdom but adds an agency problem where venture capitalists may not have a direct stake, calling for more equitable investment models.

Series A activity: Week of August 14, 2023

Magid and Co • 39 implied HN points • 21 Aug 23
💼 Business Venture Capital
  1. The post shares data on Series A deals done in the last week.
  2. The data focuses on worldwide Series A deals excluding China, with an amount raised greater than $5M and companies not focused on therapeutics.
  3. Readers are encouraged to subscribe to receive new posts and support the author's work.

Commerce Flows vs. Capital Flows

Equal Ventures • 39 implied HN points • 02 Mar 23
💼 Business Ecommerce Venture Capital Retail Investment Brands
  1. The strategy of focusing solely on DTC (direct-to-consumer) is no longer a sustainable path for most brands.
  2. There's a significant mismatch between the amount of venture capital flowing into ecommerce businesses and the actual share of commerce that DNVBs (digitally native vertical brands) hold.
  3. More investment is needed in areas like brick-and-mortar retail, off-price channels, and wholesale, where the potential for economic growth far exceeds current VC interest.

Investing in the Age of Generative AI

East Wind • 37 implied HN points • 26 Jun 24
💼 Business Venture Capital Market Trends Tech industry Generative AI
  1. Investors are really excited about generative AI because it can change how businesses operate. This excitement comes after a slowdown in traditional software growth, making AI seem like a fresh opportunity.
  2. However, the generative AI market is seeing some signs of trouble. Big funding levels are leading to fierce competition and some companies are struggling to keep up, which might lead to fewer successful startups.
  3. Ventures need to adapt quickly, as the landscape is changing fast. Investors should consider focusing on smaller markets where companies can still grow and succeed, rather than chasing after larger, more saturated markets.

TabaPay Working On A Deal To Acquire Synapse, Sources Say

Fintech Business Weekly • 59 implied HN points • 10 Mar 24
💼 Business Fintech Venture Capital Startup Regulation
  1. TabaPay is in talks to acquire Synapse, a banking-as-a-service platform, to potentially mitigate damage caused by a past financial incident.
  2. Oxygen, a neobank, is pivoting to focus on 'health solutions' temporarily, suspending its banking services.
  3. Trade groups are suing to block a new CFPB rule that limits credit card late fees, arguing it restricts choices and responsible credit card use.

More on Follow-Ons

Venture Upward • 19 implied HN points • 30 Jan 24
💼 Business Venture Capital Investments Career Advice
  1. Follow-ons in venture capital are for earning money from carry, not for just building a track record.
  2. Increasing investment in subsequent rounds can escalate downside risk without similar upside benefits.
  3. Being strategic about follow-on investments in portfolio companies is crucial to avoid excessive risk and maximize returns.

Deep Tech For Deep Minds? Or Deep Pockets?

Investing 101 • 59 implied HN points • 24 Feb 24
💼 Business Venture Capital Manufacturing Investing Technology Hardware
  1. The history of venture capital reveals a significant role played by hardware companies in the tech industry's early days, tracing back to the 1950s and even earlier.
  2. The decline in hardware investment by VCs in favor of software has had implications on manufacturing and American industrial capabilities, with a recent resurgence in manufacturing employment in the US.
  3. The recent interest in hard tech and manufacturing by VCs has led to a new wave of investment, sparked by success stories like SpaceX and Nvidia, raising concerns about hype cycles and the need for a deeper understanding of the complexities of hard tech startups.

Having a Conversation With Yourself: 2024

Investing 101 • 9 implied HN points • 28 Dec 24
💼 Business Investing Venture Capital Entrepreneurship Market Trends Business strategy
  1. Storytelling is a powerful tool that shapes how we see reality. The stories we tell ourselves and others influence our beliefs and actions.
  2. It's important to think long-term in both investments and personal goals. Planning for decades can help you make better choices today.
  3. Ambition is a valuable trait and can coexist with care for family and personal well-being. It's essential to recognize that supporting your ambitions doesn’t take away from others' opportunities.

Welcoming Ali Afridi Back to Equal Ventures

Equal Ventures • 19 implied HN points • 16 Jan 24
💼 Business Venture Capital Entrepreneurship Investments Startups Support
  1. Ali Afridi is rejoining Equal Ventures as a Principal, bringing a valuable blend of experiences in entrepreneurship and VC insights.
  2. Equal Ventures is shifting towards competitive specialization in founder support, aiming to offer comprehensive expertise to portfolio companies.
  3. The team at Equal Ventures has evolved its structure to maximize support for seed stage founders, leveraging a mix of industry leads, product owners, and experts like Ali Afridi.

The Trillion Dollar Question

Venture Prose • 259 implied HN points • 04 Feb 21
💼 Business Venture Capital Market Analysis Technology Companies Revenue Generation Value Creation
  1. Demand can only be served if there is supply. Market issues arise when the supply can't meet the artificial demand.
  2. Venture capital-backed companies in the US needed around $3 trillion in capital to sustain growth, questioning the sustainability of valuations and cash requirements in the tech industry.
  3. The rapid growth of non-profitable tech companies raises concerns about whether the market can support the increasing cash requirements, potentially indicating an unsustainable pace.

5 Takeaways from CalSTRS’ Private Equity Performance Report

East Wind • 7 implied HN points • 14 Jan 25
💰 Finance Private Equity Investment strategy Venture Capital Market Trends
  1. Traditional buyout strategies are the main focus in private market investing, making up the majority of capital deployed. This means investors often look for large returns by channeling money into these proven strategies.
  2. Private equity investments take a long time to provide returns, sometimes over a decade. Many firms are staying private longer, which can slow down how quickly capital returns to investors.
  3. Venture capital investments have seen a significant decrease lately, with much lower capital contribution compared to previous years. This change highlights a shift in the market, making it harder for funds to generate strong returns.

Clouded Judgement 10.25.24 - Misaligned Incentives

Clouded Judgement • 13 implied HN points • 25 Oct 24
💼 Business Venture Capital Startups Investment Strategies Financial Markets Economic Trends
  1. Venture capitalists are changing how they work with founders. Instead of focusing on big wins together, some are now just trying to make quick money from management fees.
  2. Founders should be careful about raising too much money too early. Getting larger sums from investors can often come with higher valuations, which can hurt the business long-term.
  3. It's important for founders to know how many other companies their investors are supporting. If an investor has too many companies, they might not have enough time to help yours succeed.

Welcome Odyssey Energy Solutions to the Equal Ventures Family

Equal Ventures • 59 implied HN points • 08 Sep 22
💼 Business Venture Capital Clean Energy Entrepreneurship Startups Investing
  1. Odyssey Energy Solutions joined the Equal Ventures Family, aiming to democratize clean energy development in emerging markets.
  2. Emily McAteer, the founder of Odyssey Energy Solutions, has led the company to accumulate over $1 billion of financing and is focused on a global clean energy transition.
  3. Equal Ventures is excited to lead Odyssey's $5.3 million seed round to enhance capital markets offerings and advance procurement solutions for clean energy development in emerging markets.

New Wave 🌊 One Year In 🎂 Hiring 🔥

Venture Prose • 99 implied HN points • 28 Feb 22
💼 Business Investments Venture Capital Hiring Founders Startups
  1. New Wave venture firm achieved impressive results in just one year: 10 investments, 22M€ deployed, 6 rounds announced, and 265M€ raised by portfolio companies. Their IRR stands at 500% and TVPI at 3x.
  2. New Wave focuses on seed deals and carefully selects companies on the critical path between Seed and Series A, emphasizing building strong equity stories with founders.
  3. New Wave is looking to hire individuals with key attributes such as the ability to sift through data effectively, form and defend opinions thoughtfully, and cultivate strong relationships.

Equal Ventures is Hiring Associates

Equal Ventures • 19 implied HN points • 04 Dec 23
💼 Business Venture Capital Investment Startups Consulting Banking
  1. Equal Ventures is hiring two Associates for its investment team in New York to work on industry research, investment analysis, and portfolio support
  2. Candidates with 2-4+ years of experience in consulting, equity research, private equity, or investment banking are encouraged to apply, along with those who are intellectually curious, passionate about startups, professional, self-directed, and friendly
  3. Potential applicants are required to email their LinkedIn profile, resume, and answer specific questions related to industry sectors, investment opportunities, contrarian beliefs, and personal passions, with responses expected within 2 weeks

Y Combinator Bets on New Space Startups

Space Ambition • 1 HN point • 09 Aug 24
💼 Business Startups Investment Venture Capital Technology
  1. Y Combinator is investing more in SpaceTech startups, with over 30 companies in their portfolio, showing a growing interest in space innovation since 2015.
  2. Most successful startups in Y Combinator's SpaceTech program have founders with aerospace backgrounds, often from well-known companies like SpaceX or NASA, which helps attract funding.
  3. The current accelerator batch has some exciting new startups, including those focusing on data centers in space and advanced weather balloons, indicating fresh ideas in the space sector.