The hottest Venture Capital Substack posts right now

And their main takeaways
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Top Business Topics

Announcing $175m more to Bridge the Digital Divide

Equal Ventures • 19 implied HN points • 20 Feb 24
💼 Business Venture Capital
  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
  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.

Venture Capital & Free Lunch

Not Boring by Packy McCormick • 156 implied HN points • 20 Feb 24
💼 Business Venture Capital
  1. Venture capital is considered to be the best asset class due to its ability to fund innovation and high potential returns.
  2. Despite its risks and failures, venture capital has historically delivered strong returns and funded groundbreaking ideas.
  3. Venture capital's free lunch concept is the idea that through the failures and successes in investment, society benefits from innovation without direct costs.

VC/PE Exit Woes + A Decade of SaaS Data

Bigfoot Capital • 39 implied HN points • 25 Oct 23
💼 Business Venture Capital
  1. VC and PE firms facing challenges to exit investments due to lack of primary liquidity
  2. PE deals show increased activity in 2023, with many acquisitions in sub-$25M range and in Seed/Series A stages
  3. SaaS Historical Benchmarks Report reveals expansion revenue growth and challenges for sales reps in hitting quotas
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Was Fintech's Biggest Lending "Innovation" A Willingness To Serve Riskier Borrowers By Charging Higher Rates?

Fintech Business Weekly • 237 implied HN points • 09 Jul 23
💰 Finance Venture Capital
  1. Fintech lenders rely heavily on conventional credit scores like FICO and possibly overcharge riskier borrowers.
  2. Fintech's main 'innovation' is serving borrowers banks reject by charging higher interest rates.
  3. Goldman Sachs is looking to offload its Apple partnership, showcasing the shifting landscape of fintech engagements.

Performative Failure

Investing 101 • 69 implied HN points • 03 Nov 24
💼 Business Venture Capital
  1. Performative failure, where people act as if they are failing for show, can prevent real learning and growth. It's better to genuinely take risks and embrace true failure.
  2. Shame often stops people from trying because they confuse their self-worth with their success or failure. It’s important to separate who you are from what you achieve.
  3. Choosing the right challenges to pursue is key. Aiming for meaningful goals makes any failures valuable and worthwhile, as they contribute to growth and character.

Why VCs Won't Fund Your Startup

Athena Scale • 39 implied HN points • 20 Mar 23
💼 Business Venture Capital
  1. VCs care about making money for investors and partners.
  2. VCs look for products that scale fast, have high margins, and a market.
  3. To prove worth to VCs, provide market research, financial predictions, pricing strategy, and customer acquisition plan.

The Bipolar Market

Life on the Trail • 39 implied HN points • 04 Oct 23
💼 Business Venture Capital
  1. There are two sides in the early stage market: AI-hype and non-AI companies.
  2. Startups should focus on solving hard problems and gaining customers' validation before raising capital.
  3. Opportunities for angels and smaller funds lie in supporting startups raising between $500k and $1.5M.

Approaching the Edge

sidkasbekar • 39 implied HN points • 19 Jul 23
💼 Business Venture Capital
  1. Approaching the edge of knowledge is exciting and impactful in both academia and business.
  2. Having a unique insight for a startup involves being at the frontier of knowledge and noticing gaps.
  3. Consider specializing early to expedite your journey to the edge and explore investing in trends if invention isn't your focus.

Surviving the end-goal ICP 🌤

The SaaS Baton • 39 implied HN points • 21 Jun 23
💼 Business Venture Capital
  1. Startups selling to other startups may not have their founder persona as the eventual ICP.
  2. Even with initial success, it's important for startups to continuously adapt and grow to meet market demands.
  3. When pitching to VCs, consider sending a separate pre-read document to control the narrative and ensure alignment in meetings.

Series A Activity: June 2023

Magid and Co • 39 implied HN points • 05 Jul 23
💰 Finance Venture Capital
  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.

Digest 5/22/23

axialdaily • 39 implied HN points • 22 May 23
💼 Business Venture Capital
  1. Axial invests in early-stage life sciences companies
  2. Rondo Therapeutics founded in 2019, developing bispecifics for solid tumors
  3. Kathleen Keough leads research on three-dimensional genome rewiring

9. Describing Agency Problems in Serfdom, Employment and Entrepreneurship

Insight Axis • 39 implied HN points • 17 Apr 23
💼 Business Venture Capital
  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.

Sources of Inspiration

Sarah's Newsletter • 139 implied HN points • 05 Apr 22
🕹 Technology Venture Capital
  1. Listening to discussions and staying informed is key to finding inspiration.
  2. Blogs, newsletters, and podcasts from various individuals and sources can provide valuable insights and provoke thoughts.
  3. Staying connected with data news, conferences, and VC updates can enhance understanding and spark creativity.

Different Strokes For Different Folks

Investing 101 • 69 implied HN points • 26 Oct 24
💼 Business Venture Capital
  1. Different venture funds have unique strategies. Some focus on raising large amounts of capital for many investments, while others prefer to make fewer, more targeted investments.
  2. Success in venture capital isn't guaranteed, no matter how fancy the fund. It's crucial for firms to find their own style and approach to increase the chances of success for their startups.
  3. Having a clear focus can be a big advantage. Smaller funds can compete effectively by honing in on specific areas and being selective about their investments.

The Sequence Chat: Yohei Nakajima on Creating BabyAGI, Autonomous Agents and Investing in Generative AI

TheSequence • 140 implied HN points • 06 Mar 24
🕹 Technology Venture Capital
  1. BabyAGI project focuses on autonomous agents and AI enhancements for task execution, planning, and reasoning over time.
  2. Challenges in adopting autonomous agents include human behavior changes and enabling AI access to tools for task execution.
  3. Future generative AI trends include AI integration across various industries, increased passive AI usage, and automation of workflows with AI workers.

Commerce Flows vs. Capital Flows

Equal Ventures • 39 implied HN points • 02 Mar 23
💼 Business Venture Capital
  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.

ServiceTitan files to go public, Substack-o-nomics and please don't scratch my Bakkt

Alex's Personal Blog • 65 implied HN points • 19 Nov 24
💰 Finance Venture Capital
  1. ServiceTitan is planning to go public, targeting a large market in the trades with software and fintech services. This shows there's strong potential for growth in this essential industry.
  2. The company has attracted significant investment from top venture capital firms, indicating confidence in its business model and future profitability.
  3. Going public will benefit not only ServiceTitan but also the investors, providing them with returns after a long wait for exits.

More on Follow-Ons

Venture Upward • 19 implied HN points • 30 Jan 24
💼 Business Venture Capital
  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.

How Much Revenue Does AI Startup Sierra Need? $225M

Alex's Personal Blog • 65 implied HN points • 29 Oct 24
💼 Business Venture Capital
  1. AI startups like Sierra are trying to improve customer service, which can be cheaper than hiring lots of workers. That's smart because AI can save money in the long run.
  2. The valuation of Sierra seems very high compared to its current revenue. This might mean they are setting themselves up for a tough future if they don't meet those big expectations.
  3. There's a sense that some investors are overestimating startups based on past successes, hoping they will grow quickly without enough proof. This approach can be risky for everyone involved.

the end of zero-marginal costs + the end of your ai fund

State of the Future • 44 implied HN points • 15 Jan 25
💰 Finance Venture Capital
  1. AI investing is getting more complicated and expensive because it requires a lot of computing power to operate. This has shifted the focus from free services with low costs to ones that need higher budgets.
  2. Startups may struggle with lower profit margins compared to past tech companies, which could make it harder for them to grow and attract funding. Investors are taking notice of these challenges.
  3. Public markets might offer better opportunities for investing in AI now, compared to private startups. Companies with solid infrastructure, like big tech firms, have an edge that makes investing directly in them more appealing.

Welcoming Ali Afridi Back to Equal Ventures

Equal Ventures • 19 implied HN points • 16 Jan 24
💼 Business Venture Capital
  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.

#27 Episode - Venture Fund Legal Checklist ✅

Law of VC • 246 implied HN points • 28 Feb 23
💼 Business Venture Capital
  1. The article provides a basic understanding of key decisions and material terms for forming and closing a venture capital fund.
  2. Forming a traditional VC fund typically involves creating three entities: the General Partner (LLC), the Management Company, and the Venture Fund.
  3. Compliance with key laws such as the Securities Act, Investment Company Act, and Advisers Act is crucial for post-closing obligations in venture fund formation.

The Trillion Dollar Question

Venture Prose • 259 implied HN points • 04 Feb 21
💼 Business Venture Capital
  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.

Revisiting 2024 Predictions

next big thing • 44 implied HN points • 18 Dec 24
💼 Business Venture Capital
  1. Venture capital is expected to pick up in 2024 as many companies seek funding to survive and grow. More startups could get funded, especially those in AI, but some may struggle to raise money.
  2. AI technology saw incredible growth in 2024, with many new applications becoming popular. Despite some challenges, AI became a huge part of tech this year.
  3. There are hopeful signs for real-world uses of crypto, as new applications are being built. With better technology and user needs, crypto could see significant adoption this year.

What I'm preparing for in 2024

next big thing • 120 implied HN points • 01 Jan 24
🕹 Technology Venture Capital
  1. 2024 might see a fundraising frenzy in the venture capital world with many companies trying to raise capital.
  2. Many late-stage companies are working on becoming IPO-ready, focusing on strong financial performance and management teams.
  3. AI will be a major focus in 2024, with advancements in AI-enabled products, but also facing challenges like lawsuits and safety concerns.

Welcome Odyssey Energy Solutions to the Equal Ventures Family

Equal Ventures • 59 implied HN points • 08 Sep 22
💼 Business Venture Capital
  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.

#28 Episode - Everyone in VC is an Accredited Investor

Law of VC • 179 implied HN points • 12 Jun 23
💰 Finance Venture Capital
  1. A proposed law aims to create an exam for non-accredited investors to become accredited, but it may not change much due to fund limits and regulations
  2. Increasing the number of LPs allowed per fund, opening up equity crowdfunding to funds, and easing restrictions on qualifying investments in VC funds are recommendations to address current limitations
  3. The impact of allowing non-accredited investors into venture funds may not change significantly without further regulatory adjustments

The Trough of Feedback

Investing 101 • 106 implied HN points • 17 Feb 24
💼 Business Venture Capital
  1. Understanding the dynamics of healthy relationships is crucial in the world of tech and startups, especially regarding venture capitalists.
  2. Venture capitalists often become overly concerned with seeking validation and can struggle with providing valuable feedback due to various insecurities.
  3. The feedback process in venture capital, known as The Trough of Feedback, can be challenging due to the balance between honesty, long-term relationship building, and reputation management.

How to Think Like a VC When Evaluating a Startup Role

The Caring Techie Newsletter • 11 implied HN points • 12 Aug 25
💼 Business Venture Capital
  1. Before joining a startup, it's important to evaluate the market. Ask yourself if it’s growing and if the company has a chance to succeed.
  2. The team is crucial to success. Look into their backgrounds and how well they work together to see if they can achieve their goals.
  3. Understand the business model and financial health of the startup. Make sure there's a clear path to revenue and that you’re getting a fair deal if you decide to join.