Mary Whiting

Summary: The article discusses the current venture firm fundraising market and the success of emerging VC firm A* in raising $315 million for its oversubscribed Fund II. It highlights the firm's focus on early-stage investments and its experienced founding partners. Key takeaways: Venture firms raised $9.3 billion in Q1 and it is unlikely that 2023's record-breaking total of $81.8 billion will be surpassed. A* has been successful in fundraising due to its focus on seed rounds and backing breakout companies in its portfolio. The firm's founding partners have a strong track record and diverse experience in different industries. Counter arguments: The article mentions that emerging managers are feeling the frost in the fundraising market, suggesting that not all emerging VCs may be as successful as A*. While A* has found success in raising institutional investors for Fund II, this may not be the case for all emerging VCs. #venturecapital #vc #fundraising #startups #innovation

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Earlier this year, we surveyed our fellow Los Angeles-based GPs to get a pulse check on the LA venture ecosystem. Here’s what we found: 💗 Deal flow is healthy, and most LA venture investors (68%) are seeing the same or more deal flow YoY. ✈ LA investors are spending time in a variety of markets, with NYC, Austin, and SF following closely on LA’s heels. 🔍 Innovation is concentrated in AI and machine learning, space, and commerce. 💸 Funding is happening, but it’s barbell-shaped, with deals concentrated at the early and late stages. Funding post-Series A has been challenging. 🚩 LA is differentiated, but not without its challenges. Key difficulties include not attracting enough AI talent (despite having the largest number of engineers graduating from our region over any other in the United States); talent relocated to more tax-friendly or less expensive locations; and the great SoCal / NoCal divide 🙏 Thank you to all our many respondents! I’m so glad to be part of a venture ecosystem that includes great minds like Anna Barber, Brent Murri, W. Christine Choi, Sarah Tomolonius, Rob Smith, Win Chevapravatdumrong, John Tabis, Jill Royster, Jesse Draper, Ashley Balla, Britt Danneman, Tram Lai, Carmen Palafox, Elaine Russell, Deborah Benton Amanda Schutzbank, Brian Lee, Petra Griffith, Minnie Ingersoll, Shamin Walsh, Gabe Greenbaum...wow, this list could go on forever...plus too many other exceptional humans to name. You know who you are! Explore our findings more deeply with our survey dashboard: https://bit.ly/3JsaLaB

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Big things on the horizon, we are motivated and blessed to be at the dawn of a new age for the internet. Read more about our journey below or listen to the podcast: https://lnkd.in/eJeNhvVa

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Summary: Industry Ventures has raised a $900 million early-stage hybrid fund for investing in emerging managers and directly backing growth-stage companies. This is their seventh hybrid fund and is larger than their previous one. The fund will be split between backing VC funds, direct investments, and acquiring stakes from emerging managers. Key takeaways: Smaller, newer funds are finding it more difficult to raise capital, but this fund from Industry Ventures offers hope for emerging managers. The fund will be split between various investments, including backing VC funds and buying secondary interests. Industry Ventures may have an advantage due to their ability to invest in both emerging and more established managers. Counter arguments: Some may argue that it is still difficult for emerging managers to raise funds. The success of Industry Ventures may not be indicative of the overall climate for emerging managers. #venturecapital #venture #startups #fundraising

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Southeast VC Update: Q2 2024 PitchBook Venture Monitor Highlights The Southeast continues to hold its position in the VC regional landscape #5 in dollars raised for Q2 2024 🥉 #3 in deal count (just behind the West Coast and the Mid-Atlantic) H1 2024 Southeast Breakdown:  📊 10% more deals than Northeast  📈 30% more deals than Mountain region, 20% more than South  💰 5% more dollars raised than Mountain region  💸 23.5% more dollars raised than South YoY Funding Trends:  📈 Southeast: Up 29% 📈 Mid-Atlantic: Up 136%  📉 Midwest: Down 67%  📉 New England: Down 11%  📈 West Coast: Up 59% Key Trend: While closing in on Mid-Atlantic numbers, we are seeing more deals but smaller rounds. This could indicate strong activity occurring in the seed & early-stage funding, despite the macro challenges. (Pitchbook classifies the Southeast as AL, FL, GA, KY, MS, NC, SC, TN, Puerto Rico, & Virgin Islands) #BuildInSE

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⛳ Emerging fund managers pulse check. PitchBook tracks over 10,000 funds that are raising money, with 45% being emerging fund managers (defined as firms with less than 3 funds). Despite a dip in available capital—down to 16% from the pre-pandemic 23%—these managers are finding creative ways to stay competitive, like partnering with larger firms. 💼 Joanna Drake (founder turned investor) shared how "wildly different" it is raising a fund versus for a startup. One key datapoint she shared on the fund side was how little feedback you get along the way (and the years you can wait for it). The “long-winded and challenging process to raise capital” inspired Drake and Ben Black to create RAISE Global, a community for emerging fund managers and the “forward-thinking LPs” who back them. (A decade later, several hundred emerging managers with AUM under $200m are on the platform) They've found the newest emerging managers are more diverse and geographically dispersed than Silicon valley, and more were able to crack the ceiling and raise larger $100m funds (although this is still a small % of the market, requiring partnership with larger funds at the late stage). ▶ And not a hugely surprising datapoint: A lot of action is in the sub $49 million range, where roughly 50% of emerging managers are raising. Theresa Sorrentino Hajer, Head of U.S. venture capital research at Cambridge Associates warns that past success isn't actually a strong indicator on it's own to assess emerging managers. We've had a valuation reset. And newer managers with investments during the 2019-2021 "party days", need to build relevant track record and play to their strengths. A lot of emerging managers are specializing (70% who applied for Raise had a thematic focus), and betting on getting in as early as possible in the startup's lifecycle (Raise: 31% at accelerator/ pre-seed stages, and 47% at seed stage). “Emerging managers have to compete on a different dimension,” Nick Moran from New Stack Ventures. You're no longer just dealing with capital. Emerging VC's need to be as innovative and nimble as the startups they invest in, having a unique thesis and insights. They also play a role at the top of the deal-flow funnel: helping larger firms find promising companies, so finding a thesis, sector or philosophy aligned partner at a larger firm is helpful. Onwards! #EmergingManager #Startups #VC

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Exciting Opportunity for Emerging VCs!    Because of the massive demand we received for our last cohort, we're thrilled to announce that applications are now open for a third cohort at Coolwater Capital this year, kicking off in early October. We accelerate VC funds to help them build the next great venture capital powerhouses. Please message me privately if you are interested, and I’ll send you an application link!  Why Coolwater Capital? **Proven Track Record** We've backed 200+ VC funds, collectively raising over $3 billion. **Extensive Network** Meet members of our proprietary network of 3,000+ active allocators through curated events, programming, and a managed community, including billion-dollar family offices, endowments, pension funds, C-suite executives of Fortune 100 companies, HNWs, celebrities, exited founders, and more. **Expert Training** Our 8-week "Build" program offers comprehensive training from 300+ domain experts and 300+ LPs. **Robust Support** Join 200+ annual events, including 25+ in-person and our major Demo Day summits. **Diversity & Impact** We are leaders in backing diverse fund managers; 25% of our GPshave female partners and 42% have Partners from underrepresented backgrounds. **Industry-Backed** Coolwater itself is backed by industry leaders, including the leader of a $1T+ private equity group, a top-performing hedge fund, the co-founder of one of the biggest accelerators, and many others. Our participants are our biggest advocates, reflected in our Net Promoter Score score of 83. Don't miss out on becoming part of one of the largest tech accelerators in the world. #VC  #VentureCapital  #Startups  #Innovation  #DiversityInTech  #CoolwaterCapital

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Calling all #Founders: Venture Capital Association of Alberta (VCAA)’s Deal Flow Calls represent a great opportunity for #PreSeed to #SeriesA companies to gain exposure to some of the countries most active Venture Capital #investors. If your company is raising equity capital, I strongly encourage you to check out the link below!

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Prime Coalition has long taken a different tack to climate finance compared to its for-profit brethren. It makes the usual venture-style investments in startups through Azolla Ventures and also helps philanthropists direct their money to climate-related projects that it deems high impact. Trellis Climate follows the latter model with a focus on middle stages, where capital has grown scarce. #climatetech #climateVC #climatefinance

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I figured out how to break into VC 🔓 I don’t have a traditional story when it comes to breaking into VC, and you don’t have to either. For those looking to get into VC and unsure how, myself and Kenneth Kashif Thomas share our experiences on the CF_Div_Sweeps podcast hosted by Rory Mason Spotify - Audio: https://shorturl.at/swFS0. Youtube - Video: https://lnkd.in/dCTx3R8W Anyone looking for advice, Dm me and I’ll be happy to give you some tips! #podcast #venturecapital #startups #business

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Summary: The article reflects on the changes in the venture capital industry over the past 20 years, as seen through the lens of Uncork Capital's 20th anniversary celebration. Key takeaways: The industry has become significantly larger over the years, with billions of dollars being invested in startups compared to only millions. The rules and norms around VC practices have also shifted, with more flexibility for VCs to invest their own money and back competing companies. Board seats, once seen as valuable investments, are now viewed as potentially hindering a company's growth, with some VCs choosing not to take them. Counter arguments: Some argue that VCs have a fiduciary duty to be actively involved in board meetings and help companies, making the trend of not taking board seats questionable. There is also the concern that founders have limited control over their company's choices, and may have to accept funding from VCs with competing investments. #venturecapital #vc #startups

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Summary: The article discusses the perspective of Notable Capital's managing partner, Hans Tung, on down rounds in investments. He believes that down rounds can still be beneficial in the long run and reveals his continued enthusiasm for the fintech sector. The article also delves into recent changes at the firm and other shifts in the world of venture capital. Key takeaways: Hans Tung believes that down rounds can lead to a successful outcome in the long run and views an IPO as just one milestone in a company's journey. Nearly 11% of the year's VC deals were down rounds, indicating their prevalence in the current market. Hans shares his optimism for the fintech sector and discusses the specific areas within fintech that excite him. Counter arguments: Some investors may still view down rounds as negative and prefer to avoid them in their investments. The article does not provide any potential drawbacks or criticisms of Hans's perspective on down rounds. #venturecapital #economy #startups

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I recently had an enlightening conversation with Alex Pattis, general partner of Riverside Ventures and author of the #1 VC syndicate newsletter, "Last Money In." Alex's journey from sales director to launching a syndicate that has completed over 300 deals is truly remarkable. He's deployed over $70 million in capital and built a network of thousands of LPs along the way. During our chat, Alex clarified the intricacies of syndicates, explaining how they differ from traditional venture funds and the unique value they bring to both founders and investors. Syndicates offer a flexible, deal-by-deal approach for LPs, allowing them to cherry-pick investments. Alex highlighted that having a tier-one VC co-investor can significantly boost LP interest in a syndicate deal. Transparency and managing expectations are crucial when working with founders, according to Alex. He also shared insights on how Special Purpose Vehicles (SPVs) can be a strategic tool for founders to consolidate smaller investors. These structures offer a way to simplify cap tables while still accessing a broader investor base. Alex offered his perspective on the current syndicate market, noting the increasing interest in growth-stage and pre-IPO deals due to shorter paths to liquidity. This trend reflects a shift in investor priorities and the evolving landscape of venture capital. Whether you're a founder looking to understand syndicates or an aspiring investor curious about this unique approach to venture capital, Alex's insights are invaluable. Check out Episode 48 of Fundraising Demystified to learn from Alex's experience and gain a deeper understanding of the syndicate ecosystem!

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A good datapoint for pre-seed founders looking to onboard advisors. Data shows only 1 in 10 pre-seed advisors get more than 1% equity, highlighting the need for careful allocation. Thanks Peter Walker for the insights to help align grants with the industry & preserve equity for growth. #Advisors #Equity #Founders

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Deploying $50m/year → does it make sense to start a fund? Sharing part of this week’s Last Money In Media post written by my partner Zachary. -- A syndicate is a way to build quickly; a fund, albeit much slower to get started,  is a way to build something much bigger - and not just from an AUM standpoint. At $30m-50m likely deployed this year, I would not raise a fund to go big at first / I would only raise a fund to build a world class firm. I’ll be the first to admit that having a fund requires a different level of discipline due to a mix of more aligned carry incentives and constraints. When your losers go against your winners on the carry component, you need to think much more deeply about your model (e.g. portfolio construction); similarly when you have limited shots on goal and limited capital, every investment requires stronger conviction. And venture capital as a fund is a much different business when your losers go against winners. Yes, venture capital generally outperforms every other asset class but the dispersion of returns is wider in venture than anywhere else with almost half of funds returning 1x capital or less…meaning if you go the fund route, you better be best in class at your job to receive any meaningful upside. And sometimes being great at your job is outside of your control - I know many people that launched funds in 2021 that will not perform well because they deployed too much at the top of the market - that’s mostly on them for a lack of discipline/restraint and partially just tough luck. But most of those GPs won’t see a dime of carry with many not able to raise fund II. If I (Zach) were to raise a fund today, the opportunity cost is also substantial - given the effort, I would pull back syndicating almost completely, which means I’m basically giving up a $100M recurring fund ($30-40m/year = $100m (ish) fund likely) and giving up superior carry economics in the process. -- Powered by Sydecar & Forge, Last Money In Media is the most actionable venture capital newsletter. Written by Zachary Ginsburg and Alex Pattis, who have deployed >$200M across 800+ SPVs.

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Very rarely in venture, magic 🪄 happens and you realize in the first meeting that you've found founders and a company that you absolutely want to back. When I met Sam Atkinson and Zach Bailet last summer, I had just this feeling. We live in a globalized world 🌎 and country borders don't factor in our shopping 🛍️ decisions. We don't think twice about ordering products from overseas, and we expect seamless checkout, shipping, and returns experiences 🔁from our our merchants whether domestic or international. You'd think cross-border logistics and returns management were solved for merchants in today's globalized world? As I continued to spend time with Sam and Zach and spoke to more and more merchants on their logistics stacks, I found just the opposite to be true. Returns and cross-border logistics are still extremely messy, inefficient, and expensive for merchants to handle. Enter, Swap. THEN, the real magic happened - when as a VC you introduce a potential customer to help you DD a product, and they not only provide glowing reviews, but end up signing with the company before you get to IC 😀 Win-win-win. Hill House Home We at QED Investors couldn't be happier to lead the Series A for Swap, and get to support Sam, Zach and the entire epic Swap team on their mission to build a hub for a merchants logistics stack. They've started with the two hardest problems to crack - returns and cross-border - but have already launched insurance, recycling... just wait till you see their product roadmap 🤤 So excited to partner with some of our favourite investors on this journey - Cherry Ventures & 9900 - as well as ecommerce insiders such as Ed Hallen of Klaviyo and 2100 Ventures from the Benetton Group family. Watch this space 😀 Nigel Morris Frank Rotman Bill Cilluffo Ashley Marshall Yusuf Ozdalga Victoria Zuo Dinika Mahtani Chris Corbishley Cian Wright Juan Pellerano-Rendón Martine K. Rory Sweeney

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A new era of deep tech has emerged. First time funds will raise “unheard of” amounts of capital to fuel next gen deep tech startups - producing outsized, superior returns for LP’s compared to the rest. Prudent investors will act on this data and shift investment strategy as LP’s or risk being left behind savvy wealth managers and CIO’s / FO’s who saw this trend begin 4 years ago.

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Taking this sabbatical to upskill in the world of DeepTech has been a game-changer for me. It's not just about learning new things; it's about broadening my horizons, fostering innovation, and bringing fresh perspectives back to my core expertise. This experience has been invaluable, and I can’t wait to see how our impact will grow in the deeptech world. Here's to continuous learning and pushing boundaries! 💡 As always, I love hearing about others' journeys and experiences in similar situations. Reach out, let's chat! #Deeptech #VC #Innovation #Upskilling #ContinuousLearning #TechIndustry #Resilience

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