The hottest Venture Capital Substack posts right now

And their main takeaways
Category
Top Business Topics

Startups: The Door Is Closing

European Straits • 46 implied HN points • 06 Sep 23
💼 Business Venture Capital
  1. The era of startups may be coming to an end, urging entrepreneurs to consider new strategies.
  2. Factors like shifting demographics, capital scarcity, and deglobalization are influencing the decline in innovation.
  3. Venture capital is evolving, with a potential reversion back to its original niche, impacting the fate of startups.

AgFunder's reading list for new VC analysts & associates

Rob Leclerc • 79 implied HN points • 05 Feb 21
💼 Business Venture Capital
  1. Venture capital can be challenging to understand and may take new analysts 6-18 months to fully grasp.
  2. Books, essays, interviews, videos, podcasts, websites, and blogs are great resources for new VC analysts to learn about the industry.
  3. Understanding the history, culture, and frameworks of venture capital is crucial for new VC analysts and associates.

SPACs a.k.a "Vegas Wedding Chapel of liquidity events"

Turnaround • 59 implied HN points • 25 Jan 21
💼 Business Venture Capital
  1. Startups are increasingly staying private longer due to the availability of private money and growth of Venture Capital and Private Equity.
  2. SPACs, or Special Purpose Acquisition Companies, offer more certainty and speed for companies going public compared to traditional IPOs.
  3. SPACs may be seen as more expensive than IPOs due to higher fees, but have evolved and come under greater scrutiny by the SEC.
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Equal Ventures Hiring Insurtech/Fintech Associate

Equal Ventures • 39 implied HN points • 10 Aug 21
💼 Business Venture Capital
  1. Equal Ventures is hiring an Insurtech Associate to focus on research, investments, and supporting founders in the insurtech space.
  2. Ideal candidates should have experience in consulting, equity research, or private equity, and a strong interest in startups and the venture ecosystem.
  3. Applicants are required to submit responses to specific questions along with their LinkedIn profile/resume for consideration.

Signals

Venture Prose • 99 implied HN points • 16 Dec 19
💼 Business Venture Capital
  1. Detecting signals of success or failure from founders is crucial for making investment decisions.
  2. Introverted nature can be an asset in quickly spotting subtle signals and making informed choices.
  3. Simple observations can reveal important clues about founders and their potential for success, such as behaviors or communication styles.

Clouded Judgement 10.25.24 - Misaligned Incentives

Clouded Judgement • 13 implied HN points • 25 Oct 24
💼 Business Venture Capital
  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.

ReflexAI

next big thing • 39 implied HN points • 27 Jul 23
💼 Business Venture Capital
  1. ReflexAI secured $3.3M in Seed funding led by Footwork
  2. The founders of ReflexAI have a background in crisis prevention and AI models
  3. ReflexAI provides AI-powered tools for training frontline teams in call centers

A Crowdsourced List of Books and Resources for New Venture Capitalists

Venture Reflections • 27 implied HN points • 26 Jan 24
💼 Business Venture Capital
  1. A crowdsourced list of books and resources for new venture capitalists was shared.
  2. The resources are categorized based on different aspects like VC business, technology innovation ecosystems, cautionary tales, finance, and more.
  3. The list includes various formats of resources like books, blog posts, podcasts, newsletters, and organizations for new VCs to explore.

VCs sell money

Sunday Letters • 19 implied HN points • 20 Nov 22
💼 Business Venture Capital
  1. Venture capitalists (VCs) primarily sell money to companies, and their main goal is to find good companies to invest in. It's a sales role, and they often have to compete to get the best opportunities.
  2. Most VC returns come from a few big successes, while many investments may only give back what was initially put in or fail completely. This means that if your startup doesn't do well, it's a bigger deal for you than for the VC.
  3. Understanding the different motivations and incentives between you and your VC is crucial. Even if both of you want the company to succeed, you may want success for different reasons and might make different decisions along the way.

What do funding rounds look like for AI startups?

Entry Level Investing • 33 implied HN points • 18 Oct 23
💼 Business Venture Capital
  1. Every subcategory of Company has its own KPIs and benchmarks for venture funding rounds.
  2. Application Layer AI companies are assessed similarly to traditional Enterprise SaaS solutions but with some leeway on revenue targets.
  3. Tooling Layer businesses tend to fundraise one stage behind Application Layer businesses due to higher capital investment and time requirements.

Fantastic Builders and Where to Find Them, 2nd Installment

Building the Builders • 12 implied HN points • 28 Oct 24
💼 Business Venture Capital
  1. Esther Crawford made bold choices in her career, like using her own savings to fund her startup. She felt confident doing this because she knew she could always find another job if it didn't work out.
  2. Her honesty with investors about tough decisions helped build trust and support. This showed that being truthful can strengthen relationships in business.
  3. Esther's journey highlights the importance of following your own path and interests rather than just fitting into societal expectations. Her choices were driven by personal goals and values.

Where Has All The Money Gone?

Superfluid • 39 implied HN points • 28 Jun 23
💼 Business Venture Capital
  1. In the past, startups received large amounts of capital at early stages like Pre-Seed, which led to a funding freeze at Series B stage.
  2. Decrease in later-stage technology funding and changing market dynamics have implications for the entire startup ecosystem.
  3. Founders are facing pressure to survive with short runways, need to focus on revenue generation, cost control, and strategic decision making.

Having a Conversation With Yourself: 2024

Investing 101 • 9 implied HN points • 28 Dec 24
💼 Business Venture Capital
  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.

Redefining the Future of the Creator Economy

The New Internet by Jeff Morris Jr. • 10 implied HN points • 22 Nov 24
💼 Business Venture Capital
  1. The creator economy has exploded since 2019, allowing many artists and influencers to turn their online popularity into profitable businesses. They create content, build audiences, and find various ways to earn money.
  2. Investors are shifting focus from traditional 'creator stack' platforms to supporting creators directly. This new model involves investing in creators for a share of their future earnings, recognizing that creators could also build software and tech businesses.
  3. Advancements in AI are changing how creators work, enabling them to create software without big teams. More creators are moving towards building apps and software products, expanding beyond just making content.

Dilution from Mega-Seed Rounds

Magis • 36 implied HN points • 19 Jun 23
💼 Business Venture Capital
  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.

How to Lose Money Quickly

Very Fine Day • 42 implied HN points • 19 Mar 23
💼 Business Venture Capital
  1. Success in media is not just about the idea or people, it's often about the money and big expectations
  2. Many large investments in media brands are more about power and influence than profit
  3. Creating a successful media brand requires starting small, being nimble, and not just throwing money at the problem

What do Negative Interest Rates mean for Innovation?

Turnaround • 59 implied HN points • 29 Jun 20
💰 Finance Venture Capital
  1. Negative interest rates can impede the process of creative destruction by keeping unproductive "zombie companies" alive, hindering market opportunities for new and innovative startups.
  2. Negative interest rates may lead to more funding flowing into startups and venture capital as investors seek higher returns in riskier assets, potentially boosting the startup ecosystem.
  3. Negative interest rates could boost the crypto economy by driving more interest in cryptocurrency as a viable alternative to traditional banking, particularly if mainstream banking options become unattractive due to negative rates.

WindBorne Systems

next big thing • 34 implied HN points • 22 Jun 23
🕹 Technology Venture Capital
  1. Accurate weather data is crucial for making informed decisions and mitigating costs associated with severe weather events.
  2. Improvements in weather technology are needed due to gaps in weather observations globally.
  3. WindBorne Systems received a $6M Seed round investment led by Footwork for their work in providing detailed weather observations to improve forecasting and reduce carbon emissions.

5/23/22: 2022 Q1 Chinese VC/PE Update & Overseas Investments Summary

Tech Buzz China Insider • 19 implied HN points • 24 May 22
💼 Business Venture Capital
  1. The 2022 Q1 Chinese VC/PE Update shows a significant decrease in early-stage investments in China, while the US saw increases in most aspects except for the number of exits.
  2. The majority of Chinese investment dollars went to the US, followed by India and Singapore, with a noticeable decline in investments in Latin America, Australia, and Africa.
  3. Over half of the number of investments from China in overseas markets were in early-stage (seed B) investments, with the top sectors being healthcare, blockchain, and fintech.

What is a "Moat" and why does it matter?

Equal Ventures • 19 implied HN points • 28 Feb 22
💼 Business Venture Capital
  1. In the startup world, having 'moats' or durable competitive advantages is crucial for long-term success.
  2. Moats are defined by being proven, perpetuating, and permanent, providing economic leverage and sustainable margin growth.
  3. Investing in building strong moats early on can help businesses sustain value over time and outperform competitors in the long run.

5 Takeaways from CalSTRS’ Private Equity Performance Report

East Wind • 7 implied HN points • 14 Jan 25
💰 Finance Venture Capital
  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.

Patience, Patience, Patience

Superfluid • 39 implied HN points • 01 Mar 23
💼 Business Venture Capital
  1. In the world of venture capital, patience is key for both founders and investors.
  2. Technological revolutions take around 50 years to fully proliferate through society.
  3. Investors should be cautious about backing startups in trendy spaces and focus on patient and sensible deployments of capital.

30 Top Angel Investors in Cyber

The Security Industry • 26 implied HN points • 15 Oct 23
💼 Business Venture Capital
  1. Angel investors play a crucial role in startup funding by taking significant risks and often waiting years for returns.
  2. To reduce risk, angel investors make multiple investments in various companies.
  3. Top angel investors in cybersecurity, such as Shlomo Kramer and Ariel Maislos, have impressive track records and investments in key companies.

Four Blog Posts I Didn't Publish This Year

Venture Reflections • 8 implied HN points • 16 Dec 24
💼 Business Venture Capital
  1. Not every idea needs to be shared. Keeping a drafts folder helps organize thoughts while deciding what’s worth publishing.
  2. Some topics are better discussed in personal conversations, as they can be sensitive or complex. It's okay to hold back rather than add to negativity.
  3. Investor updates are common now, but many are lacking in quality. Providing meaningful information is key to keeping investors informed.

SVB: Conflicts of (Insider Loan) Interest

Nongaap Investing • 37 implied HN points • 22 Mar 23
💼 Business Venture Capital
  1. Silicon Valley Bank faced a significant spike in insider loans, raising concerns about VC conflicts of interest and Director independence.
  2. Approximately 38% of SVB's reported incremental venture debt went to start-ups affiliated with Directors, prompting questions on underwriting transparency.
  3. The lack of disclosure in the Proxy Statement and the concentration of loans to insider-affiliated start-ups suggest potential VC conflicts of interest impacting risk management.

An Alternative Approach to Deep Tech VC

FreakTakes • 30 implied HN points • 13 Jul 23
💼 Business Venture Capital
  1. It's important to consider the original goals of organizations, like Y Combinator, which focused on providing fast experimentation and proof-of-growth.
  2. Deep tech VC can benefit from a model inspired by mid-20th century research organizations that focused on profitable problem-solving and spinoff companies.
  3. Collaboration with applied research professors at universities and shaping projects for future VC investment can enhance the quality and viability of deep tech investments.

2022 - A Reflection on 3 Years of Equal

Equal Ventures • 19 implied HN points • 13 Jan 22
💼 Business Venture Capital
  1. Equal Ventures had a significant year in 2021 with early investments reaching success, showcasing potential for more growth ahead.
  2. The journey of investment in ThreeFlow highlights the challenges and risks faced in venture capital, and the importance of strong support networks.
  3. Reflecting on the past three years, Equal Ventures emphasizes gratitude for supporters and aims to continue being a dedicated venture firm with a strong team and innovative approach.

Tidal Waves in Venture Capital

East Wind • 20 implied HN points • 11 Dec 23
💼 Business Venture Capital
  1. Venture capital is facing challenges like the curse of scale and lower returns, making the industry more competitive.
  2. Data science and AI are reshaping VC investment processes, improving deal sourcing and evaluation.
  3. VC is becoming higher frequency, with firms leveraging AI to move faster and secure deals in a more competitive landscape.

How things work at Kima Ventures

Venture Prose • 79 implied HN points • 01 Feb 19
💼 Business Venture Capital
  1. Kima Ventures tracks dealflow opportunities using in-house tools, not CRM platforms, and follows a weekly workflow for managing new opportunities.
  2. They manage meetings and communication by logging them on Google Calendar and Airtable, aiming to keep to-do lists short and manageable.
  3. The team has efficient processes for decision-making, investing, and portfolio management, utilizing various tools and software for tracking deals and progress.

Turnaround #6: A new podcast for you & more

Turnaround • 59 implied HN points • 23 Sep 19
💼 Business Venture Capital
  1. The Indian mobile gaming sector is seeing significant growth on the new internet highway, attracting serious venture capital.
  2. The gaming industry in India is evolving, with skill-based games like Fantasy Sports and Rummy gaining traction despite some legal challenges.
  3. The future of the gaming sector in India holds potential for growth, with predictions of increasing interest from Chinese companies and opportunities in ancillary areas like creator tools and blockchain-based gaming.

Minimum Viable Raise

Aashay's Newsletter • 4 HN points • 22 Aug 23
💼 Business Venture Capital
  1. Startups should consider raising a little more capital upfront to have adequate resources for product development and market introduction.
  2. As software markets evolve, buyer expectations increase, and ventures now penetrate traditional sectors with longer sales cycles.
  3. Founders may need to adjust their mindset and be open to raising more capital initially to navigate the changing landscape of startup financing.

Pippa Passes: SVB, Alien Motherships, Mathematical Constants, New Physics, Manhattan Project v2, CBDC, and Indra’s Net

Dr. Pippa's Pen & Podcast • 29 implied HN points • 12 Mar 23
💼 Business Venture Capital
  1. The financial world has issues with captive models, where banks raise money for clients and hold it, leading to potential risks like re-hypothecation.
  2. Start-ups, especially in Silicon Valley, faced challenges with raising capital and high failure rates, raising questions about the funding and support system for these businesses.
  3. There is a need to better understand the difference between having a brilliant product and building a successful business, as many founders struggle to make that transition.

Zombiecalypse in Startupland

East Wind • 9 implied HN points • 30 Jul 24
💼 Business Venture Capital
  1. The SaaS market is struggling, with many companies facing slow growth. This makes it hard for them to go public or find buyers.
  2. There are lots of startups that were once valued highly, but now they can't exit or sell without losing value. This is creating a backlog of troubled companies.
  3. Investors are still showing interest in AI startups, but there’s a risk of repeating past mistakes and ending up with even more struggling businesses that can't deliver for their investors.