The hottest Venture Capital Substack posts right now

And their main takeaways
Category
Top Business Topics

What is a Tech Company?

Equal Ventures • 19 implied HN points • 13 Sep 21
🕹 Technology Venture Capital
  1. Companies are starting to leverage their technological advantages instead of just selling them, expanding investment opportunities beyond traditional software companies.
  2. Some disruptors in industries like insurance are struggling with unsustainable financials, emphasizing the need for a solid business model and competitive advantage.
  3. Investors need to focus on digital leverage and creating a sustainable competitive advantage when evaluating potential tech companies to invest in.

Walking On a Tightrope

Superfluid • 13 implied HN points • 06 Mar 24
💼 Business Venture Capital
  1. In the startup world, founders must balance irrationality and rationality for success. It's about believing in big ideas but also making data-driven decisions.
  2. As a startup evolves, founders need to shift from irrationality to rationality, showing a clear path to profitability.
  3. Recognizing when to embrace irrationality and when to be rational is key for successful founders. It's a valuable skill that can build trust and credibility.

Concentration > Diversification

Equal Ventures • 19 implied HN points • 30 Aug 21
💼 Business Venture Capital
  1. In the venture ecosystem, focusing on concentration over diversification can be crucial for survival and success.
  2. Venture firms with disciplined fund sizes and concentrated bets have a track record of achieving massive returns.
  3. Building strong relationships with founders and providing hands-on support can set a venture firm apart in a competitive market.
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Most AI startups are service businesses, pretending to be product companies

Enterprise AI Trends • 7 HN points • 05 Aug 24
💼 Business Venture Capital
  1. Many AI startups are actually offering services rather than traditional software products. This means they often rely on providing custom solutions to meet their clients' unique needs.
  2. As AI technology improves, businesses are becoming more self-sufficient in creating their own automated solutions with low-code tools. This could make it harder for AI solution providers to retain clients.
  3. For AI startups to succeed, they need to find ways to build scalable products with less dependence on consulting. This could involve creating specific tools that solve distinct problems instead of broad platforms.

Garuda Ventures' New $31M Fund

Tippets by Taps • 14 implied HN points • 25 Oct 23
💼 Business Venture Capital
  1. Garuda Ventures raised a $31 million fund to support exceptional founders at an early stage.
  2. They focus on four core themes in their investments: Intelligent Applications, Commerce Infrastructure, The New Perimeter, and Climate 2.0.
  3. Garuda Ventures emphasizes the importance of empathy, candor, and operating excellence when supporting founders.

The number one piece of advice I give to new VCs launching their investing careers

Venture Reflections • 16 implied HN points • 23 Aug 23
💼 Business Venture Capital
  1. In venture investing, it's better to take things slowly at first than to rush into too much too soon.
  2. Venture funds evaluate new checkwriting investors based on access to good investments, judgment in selecting companies, and discretion in choosing which companies to bring for discussion.
  3. New investors should strive for high quality opportunities over high quantity, avoiding becoming the 'spray bottle' of lower quality deal flow.

Clouded Judgement 5.23.25 - AI Grows the Size of the Prize

Clouded Judgement • 2 implied HN points • 23 May 25
💰 Finance Venture Capital
  1. Venture capital returns can grow as fund sizes increase. The value of successful startups has been climbing, which could mean bigger returns for investors in the future.
  2. Inflation and rising yields are influencing the bond market. As government spending increases and investor concerns grow, yields on U.S. debt are going up, making it more expensive to borrow.
  3. Understanding how software companies are valued is important. These companies are often valued based on their expected revenue, and knowing the growth rates can help investors find the best opportunities.

Hiring VC MBA Interns with experience in Insurance, Supply Chain / Logistics & Climate / Energy

Equal Ventures • 19 implied HN points • 23 Mar 21
💼 Business Venture Capital
  1. The company is hiring MBA interns with experience in Insurance, Supply Chain/Logistics, and Climate/Energy
  2. Interns will research industry themes and investment opportunities remotely for 10 weeks in the summer, with a stipend included
  3. Ideal candidates should have experience in these sectors, be intellectually curious, professional, self-directed, and friendly

Announcing the Emerging Manager Circle

Equal Ventures • 19 implied HN points • 22 Feb 21
💼 Business Venture Capital
  1. Starting a new venture fund can be both exciting and terrifying, with challenges like setting up back office procedures and managing communications.
  2. Connecting with a community of peers facing similar challenges can provide valuable support, mentorship, and resources.
  3. The Emerging Manager Circle initiative aims to democratize access to venture capital and support emerging GPs in starting their own firms.

Evolution of Investors in the New Digital Age

Equal Ventures • 1 HN point • 05 Mar 24
💰 Finance Venture Capital
  1. Investors in the new digital age need a deeper understanding of industry dynamics and business models beyond just technology.
  2. The evolving landscape requires investors to focus on financial efficiency and long-term profitability rather than just growth metrics.
  3. Successful venture investors must prioritize core investment skills like financial acumen to drive long-term returns.

Finding “Founder <> Investor Fit”

Equal Ventures • 19 implied HN points • 16 Jan 21
💼 Business Venture Capital
  1. Investor-founder fit is crucial in venture dynamics. This involves understanding if you need a cheerleader or a trainer investor.
  2. Investors can be categorized as cheerleaders or trainers - those who offer support and those who push for improvement.
  3. Knowing the type of investor you want, whether hands-on or hands-off, is important for aligning expectations and achieving success in your startup.

Announcing the Seed and Series A of ThreeFlow

Equal Ventures • 19 implied HN points • 15 Jan 21
💼 Business Venture Capital
  1. ThreeFlow announced funding and rebranding as a benefits placement system connecting brokers and carriers.
  2. Equal Ventures led ThreeFlow's seed round after building a relationship and seeing potential in the company.
  3. ThreeFlow has become a rapidly growing company in the insurtech landscape by focusing on efficiency and customer satisfaction.

Promoting Ali Afridi to Principal

Equal Ventures • 19 implied HN points • 11 Jan 21
💼 Business Venture Capital
  1. Ali Afridi's determination and eagerness to learn led him to drop out of college to pursue a career in the venture community, showing his unique perspective and intelligence.
  2. Cognitive diversity is valued in the workplace, as demonstrated by Ali Afridi's ability to bring impactful insights and expose blind spots, making the team smarter and better.
  3. Ali Afridi's promotion to Principal after his impactful contributions and continuous pursuit of knowledge showcases the value of investing in talented individuals within a firm.

STARTUP VALUATIONS

MacroCrunch • 16 implied HN points • 16 Apr 23
💰 Finance Venture Capital
  1. Valuation levels in early stage VC are expected to decline through 2023.
  2. Changes in public markets take time to impact private markets, with a lag of 9-18 months.
  3. AI/ML startups may not be as capital intensive as startups in other sectors like fintech or aerospace.

Key Ideas: Which Hold Up the Test of Time?

European Straits • 8 implied HN points • 14 Mar 24
💼 Business Venture Capital
  1. The concept of the Age of the Multitude requires revision due to changing dynamics influenced by technology and artificial intelligence.
  2. The Age of Computing and Networks still holds relevance but is challenged by new advancements like AI and large language models, showing we may still be navigating this era.
  3. Capitalism and the Corporate Contract exhibit an evolution in power dynamics within corporations, highlighting shifts in priorities for customers, employees, and shareholders.

Who (And Where) Are Today’s Innovators?

European Straits • 11 implied HN points • 27 Sep 23
💼 Business Venture Capital
  1. The decline in young adults may impact innovation, but different factors contribute to innovative mindsets.
  2. Understanding age, cohort, and historical period effects is crucial in studying innovation and age-related phenomena.
  3. Innovation has evolved over time from solo inventors to corporate labs to young tech entrepreneurs, impacting the age of predominant innovators.

Finding the Right Burn Rate for Pre-Seed Companies - The Relationship Between Burn Rate and Graduation Rate for Our First 150 Pre-Seed Investments

Venture Reflections • 12 implied HN points • 17 May 23
💼 Business Venture Capital
  1. Successful pre-seed companies spend more money per month than unsuccessful ones.
  2. The difference in average monthly burn rates between successful and unsuccessful companies is small since 2016.
  3. Spending more money is likely an effect, not the cause, of success in finding product-market fit.

The Venture Activity Index

Who is Nnamdi • 10 implied HN points • 25 Jul 23
💼 Business Venture Capital
  1. The Venture Activity Index measures the state of the venture business cycle using the Venture Activity Index (VAI).
  2. Funding in the venture market is fluctuating around a linear trend with a consistent ~5% growth per quarter on average.
  3. Correlations across different stages of venture investment have increased since 2020, with later stages experiencing more volatility than seed and Series A stages.

The Changing Nature of Pre-Seed Syndication

Venture Reflections • 6 implied HN points • 11 Mar 24
💼 Business Venture Capital
  1. The landscape of pre-seed investment is shifting, making it more challenging for founders to raise pre-seed rounds.
  2. Certain categories like defense tech and AI are skipping pre-seed investment due to high capital requirements.
  3. Many pre-seed investment partners are now focusing more on larger rounds with companies that have traction, resembling seed rounds.

Notes on Progress: The world that has never been

The Works in Progress Newsletter • 12 implied HN points • 15 Feb 23
🕹 Technology Venture Capital
  1. Ben Reinhardt announces his new ARPA-style lab, Speculative Technologies, to create the world that has never been.
  2. Academia, NASA, and startups each have limitations in fostering novel technologies and scaling them for impact.
  3. Building a nonprofit research organization like DARPA could support groundbreaking technologies with a focus on societal impact and scale.