Why does everyone say "fundraising is hard?" The image below shows that a VC can source 1000-2000 deals annually, and 10-21 make it to a term sheet, which equals a 1% acceptance rate. Let's intersect that with a Pitchbook investor search we ran for a client raising a seed round from B2B software investors. Search Criteria: AUM under $1bn Enough dry powder to invest in the round Last investment size < startup's seed round amount This surfaced 200 investors that would be considered qualified targets. Conclusion: Founders are dealing with a 1% conversion rate in a target market with around 200 participants, which will be the smallest target market they have ever pursued. Let's intersect all of that with the traditional fundraising workflow: 1️⃣ Prepare a deck and data room using varying quality levels of content cobbled together from different sources and procure investor lists for cold/warm outreach 2️⃣ Talk to a handful of investors and get objections with limited or generic feedback 3️⃣ Adjust pitch materials and continue pitching and hope that a few investors will say "yes" When these data points and workflows are combined, you can see why there is so much uncertainty, frustration, and anxiety around fundraising. Over the last year, we have enabled a new fundraising workflow that has been proven multiple times to decrease investor rejections by 70%+ and reduce fundraising time to under 2.5 months. 🚀 Here's the new fundraising workflow: 1️⃣ Maximize your startup's invest-ability before speaking with investors according to insider VC information 2️⃣ Start or continue speaking with highly targeted investors 3️⃣ Start racking up commitments Working inside 15 venture funds to help select investments, we've come to a solid realization about two things: ➡ Investors have concrete first principles regarding the ideal investment at all fundraising stages. Investment decisions are more of a science than previously thought. ➡ When founders receive investment, 99% of the time, their business just happens to match the investor's internal investment criteria. They were in the right place at the right time. Officially launching today, we have decided to break down the information barrier and provide you with exactly what investors want to see, down to every nuance, so you can fit your startup into that mold before pitching them. This isn't just "content"—it's interactive tools that will help you gain investment through fixing blindspots. Given we are venture capital consultants, we know how 15+ funds think about investing from the inside—not 1 or 2 VC funds. We also aren't founders who have raised a VC round and weren't working inside the VC firm: they don't know exactly why the VC invested. If you're planning to raise a round at some point or are facing investor rejections now, these are the only tools you will need to prepare for, accelerate, and close your fundraising round. ❇ Click the link in the bio for course access! ❇
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Why does everyone say "fundraising is hard?" The image below shows that a VC can source 1000-2000 deals annually, and 10-21 make it to a term sheet, which equals a 1% acceptance rate. Let's intersect that with a Pitchbook investor search we ran for a client raising a seed round from B2B software investors. Search Criteria: AUM under $1bn Enough dry powder to invest in the round Last investment size < startup's seed round amount This surfaced 200 investors that would be considered qualified targets. Conclusion: Founders are dealing with a 1% conversion rate in a target market with around 200 participants, which will be the smallest target market they have ever pursued. Let's intersect all of that with the traditional fundraising workflow: 1️⃣ Prepare a deck and data room using varying quality levels of content cobbled together from different sources and procure investor lists for cold/warm outreach 2️⃣ Talk to a handful of investors and get objections with limited or generic feedback 3️⃣ Adjust pitch materials and continue pitching and hope that a few investors will say "yes" When these data points and workflows are combined, you can see why there is so much uncertainty, frustration, and anxiety around fundraising. Over the last year, we have enabled a new fundraising workflow that has been proven multiple times to decrease investor rejections by 70%+ and reduce fundraising time to under 2.5 months. 🚀 Here's the new fundraising workflow: 1️⃣ Maximize your startup's invest-ability before speaking with investors according to insider VC information 2️⃣ Start or continue speaking with highly targeted investors 3️⃣ Start racking up commitments Working inside 15 venture funds to help select investments, we've come to a solid realization about two things: ➡ Investors have concrete first principles regarding the ideal investment at all fundraising stages. Investment decisions are more of a science than previously thought. ➡ When founders receive investment, 99% of the time, their business just happens to match the investor's internal investment criteria. They were in the right place at the right time. Officially launching today, we have decided to break down the information barrier and provide you with exactly what investors want to see, down to every nuance, so you can fit your startup into that mold before pitching them. This isn't just "content"—it's interactive tools that will help you gain investment through fixing blindspots. Given we are venture capital consultants, we know how 15+ funds think about investing from the inside—not 1 or 2 VC funds. We also aren't founders who have raised a VC round and weren't working inside the VC firm: they don't know exactly why the VC invested. If you're planning to raise a round at some point or are facing investor rejections now, these are the only tools you will need to prepare for, accelerate, and close your fundraising round. ❇ Click the link in the bio for course access! ❇
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Fundraising can indeed be a daunting journey filled with uncertainties. Your innovative fundraising workflow is a game-changer, offering a strategic approach to maximize startup invest-ability and secure commitments efficiently.
Founders: fundraise in <2.5 months with 70%+ fewer objections | Use our novel fundraising process, distilled from working inside 15+ VC funds, by clicking the link below👇
Why does everyone say "fundraising is hard?" The image below shows that a VC can source 1000-2000 deals annually, and 10-21 make it to a term sheet, which equals a 1% acceptance rate. Let's intersect that with a Pitchbook investor search we ran for a client raising a seed round from B2B software investors. Search Criteria: AUM under $1bn Enough dry powder to invest in the round Last investment size < startup's seed round amount This surfaced 200 investors that would be considered qualified targets. Conclusion: Founders are dealing with a 1% conversion rate in a target market with around 200 participants, which will be the smallest target market they have ever pursued. Let's intersect all of that with the traditional fundraising workflow: 1️⃣ Prepare a deck and data room using varying quality levels of content cobbled together from different sources and procure investor lists for cold/warm outreach 2️⃣ Talk to a handful of investors and get objections with limited or generic feedback 3️⃣ Adjust pitch materials and continue pitching and hope that a few investors will say "yes" When these data points and workflows are combined, you can see why there is so much uncertainty, frustration, and anxiety around fundraising. Over the last year, we have enabled a new fundraising workflow that has been proven multiple times to decrease investor rejections by 70%+ and reduce fundraising time to under 2.5 months. 🚀 Here's the new fundraising workflow: 1️⃣ Maximize your startup's invest-ability before speaking with investors according to insider VC information 2️⃣ Start or continue speaking with highly targeted investors 3️⃣ Start racking up commitments Working inside 15 venture funds to help select investments, we've come to a solid realization about two things: ➡ Investors have concrete first principles regarding the ideal investment at all fundraising stages. Investment decisions are more of a science than previously thought. ➡ When founders receive investment, 99% of the time, their business just happens to match the investor's internal investment criteria. They were in the right place at the right time. Officially launching today, we have decided to break down the information barrier and provide you with exactly what investors want to see, down to every nuance, so you can fit your startup into that mold before pitching them. This isn't just "content"—it's interactive tools that will help you gain investment through fixing blindspots. Given we are venture capital consultants, we know how 15+ funds think about investing from the inside—not 1 or 2 VC funds. We also aren't founders who have raised a VC round and weren't working inside the VC firm: they don't know exactly why the VC invested. If you're planning to raise a round at some point or are facing investor rejections now, these are the only tools you will need to prepare for, accelerate, and close your fundraising round. ❇ Click the link in the bio for course access! ❇
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"Advice to GPs was consistently to keep fundraising. Many GPs described hundreds and occasionally thousands of first meetings to LPs. This season of raising capital is particularly challenging. Perhaps nowhere has this been more felt than for emerging managers. The market for emerging managers cratered 97% versus highs in 2021. Yet many LPs described continued dedication to the space, and unique advantages to be gained from partnering with new firms (besides narrowly investment performance). Mohadeseh Abdullahi from Molten Ventures shared insights on the proprietary data the firm gathers through its fund of fund program, suggesting that strategic approaches can still uncover valuable opportunities. Finally, perhaps the one driver for future VC fundraising will be DPI – or realized returns. Without cash returning back to LPs, fundraising will continue to be slow (since they will be squeezed on allocation). One solution covered in multiple panels was the use of secondaries—selling existing investments to realize returns and provide liquidity. This strategy allows firms to get money off the table without necessarily offloading their best assets. The importance of DPI, or realized returns, was underscored as a critical metric for raising subsequent funds."
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📌 In the world of Venture Capital, a great idea isn’t enough. Your pitch is your ticket to attracting the right investors — and making it stand out is crucial. 🔑 𝗪𝗵𝘆 𝗮 𝗦𝘁𝗿𝗼𝗻𝗴 𝗣𝗶𝘁𝗰𝗵 𝗠𝗮𝘁𝘁𝗲𝗿𝘀 Investors see hundreds of pitches every month. Without a clear and compelling pitch, your business might get lost in the crowd. A solid pitch showcases your business idea, highlights its value, and answers the critical question: why should an investor believe in you? Here’s how you can craft a pitch that gets noticed: 1️⃣ Craft a Clear, Concise Summary Your short summary should be razor-sharp. This is often the first (and sometimes only) section an investor sees before deciding to read more. Can you describe your business and its value proposition in two sentences? If not, you may lose potential interest. Simplify, clarify, and make it impactful. 2️⃣ Highlight the Problem and Solution Every great pitch addresses a problem that your business solves. Investors want to know the pain point you’re tackling and why it matters. Then, articulate how your product or service provides a unique solution to that problem. This is your moment to shine. 3️⃣ Showcase Traction Data speaks louder than words. Whether it’s user growth, sales, partnerships, or social media engagement, showcasing proof of traction can boost investor confidence. Investors love momentum—they want to see that others are already on board and that your idea has legs. 4️⃣ Present a Strong Team Your pitch isn’t just about the business—it’s about the people driving it forward. Investors spend a lot of time reviewing the "Team" section because a great idea is only as strong as the team executing it. Highlight your team’s expertise and experience, and explain why they’re the right people to make this happen. 💡 𝗣𝗿𝗼 𝗧𝗶𝗽𝘀 𝘁𝗼 𝗜𝗺𝗽𝗿𝗼𝘃𝗲 𝗬𝗼𝘂𝗿 𝗣𝗶𝘁𝗰𝗵 Keep Updating Your Pitch: The more frequently you update, the more investors will see that you’re making progress. A pitch that evolves shows momentum, and investors are drawn to that. Leverage Visuals: Pitches with images and videos receive 32% more interest than those without. Consider adding relevant visuals, even if it’s just a logo or product demo. Nail the Details: Your pitch is often the first impression. Spelling mistakes, vague descriptions, or an unclear ask for funding can turn off an investor. Be thorough, professional, and precise. 🔍 𝗜𝗻𝘃𝗲𝘀𝘁𝗼𝗿 𝗔𝘁𝘁𝗲𝗻𝘁𝗶𝗼𝗻 𝗛𝗮𝗰𝗸 Numbers and bullet points catch the eye faster than long paragraphs. Use them to your advantage in your highlights section. Investors want to know at a glance why your business stands out. 💼 𝗧𝗵𝗲 𝗔𝘀𝗸: 𝗘𝗾𝘂𝗶𝘁𝘆 𝘃𝘀. 𝗟𝗼𝗮𝗻𝘀 When it comes to raising funds, most Angel Investors prefer equity deals, especially when tax relief (SEIS/EIS) is involved. Clearly state what you’re offering—whether it’s equity or debt—so that investors understand the terms upfront. Credit: Oliver Jones (Angel Investment Network)
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📌 In the world of Venture Capital, a great idea isn’t enough. Your pitch is your ticket to attracting the right investors — and making it stand out is crucial. 🔑 𝗪𝗵𝘆 𝗮 𝗦𝘁𝗿𝗼𝗻𝗴 𝗣𝗶𝘁𝗰𝗵 𝗠𝗮𝘁𝘁𝗲𝗿𝘀 Investors see hundreds of pitches every month. Without a clear and compelling pitch, your business might get lost in the crowd. A solid pitch showcases your business idea, highlights its value, and answers the critical question: why should an investor believe in you? Here’s how you can craft a pitch that gets noticed: 1️⃣ Craft a Clear, Concise Summary Your short summary should be razor-sharp. This is often the first (and sometimes only) section an investor sees before deciding to read more. Can you describe your business and its value proposition in two sentences? If not, you may lose potential interest. Simplify, clarify, and make it impactful. 2️⃣ Highlight the Problem and Solution Every great pitch addresses a problem that your business solves. Investors want to know the pain point you’re tackling and why it matters. Then, articulate how your product or service provides a unique solution to that problem. This is your moment to shine. 3️⃣ Showcase Traction Data speaks louder than words. Whether it’s user growth, sales, partnerships, or social media engagement, showcasing proof of traction can boost investor confidence. Investors love momentum—they want to see that others are already on board and that your idea has legs. 4️⃣ Present a Strong Team Your pitch isn’t just about the business—it’s about the people driving it forward. Investors spend a lot of time reviewing the "Team" section because a great idea is only as strong as the team executing it. Highlight your team’s expertise and experience, and explain why they’re the right people to make this happen. 💡 𝗣𝗿𝗼 𝗧𝗶𝗽𝘀 𝘁𝗼 𝗜𝗺𝗽𝗿𝗼𝘃𝗲 𝗬𝗼𝘂𝗿 𝗣𝗶𝘁𝗰𝗵 Keep Updating Your Pitch: The more frequently you update, the more investors will see that you’re making progress. A pitch that evolves shows momentum, and investors are drawn to that. Leverage Visuals: Pitches with images and videos receive 32% more interest than those without. Consider adding relevant visuals, even if it’s just a logo or product demo. Nail the Details: Your pitch is often the first impression. Spelling mistakes, vague descriptions, or an unclear ask for funding can turn off an investor. Be thorough, professional, and precise. 🔍 𝗜𝗻𝘃𝗲𝘀𝘁𝗼𝗿 𝗔𝘁𝘁𝗲𝗻𝘁𝗶𝗼𝗻 𝗛𝗮𝗰𝗸 Numbers and bullet points catch the eye faster than long paragraphs. Use them to your advantage in your highlights section. Investors want to know at a glance why your business stands out. 💼 𝗧𝗵𝗲 𝗔𝘀𝗸: 𝗘𝗾𝘂𝗶𝘁𝘆 𝘃𝘀. 𝗟𝗼𝗮𝗻𝘀 When it comes to raising funds, most Angel Investors prefer equity deals, especially when tax relief (SEIS/EIS) is involved. Clearly state what you’re offering—whether it’s equity or debt—so that investors understand the terms upfront. Credit: Oliver Jones (Angel Investment Network)
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🌟 Interesting insights on navigating private equity vs. venture capital for your business growth revealed in a recent read. Here's the takeaway for entrepreneurs to apply in their context: ✨ Private Equity (PE): - PE focuses on mature, stable companies for investments. - More common sources of PE funds include insurance companies, investment banks, and trusts. - Business owners must be prepared to give up control to PE investors. ✨ Venture Capital (VC): - VC targets high-growth companies with disruptive potential. - Google's GV division and Shark Tank represent notable examples of VC investments. - VC investors are willing to wait for the payout and tend to focus on tech startups. ✨ Key Differences: - PE demands major control from business owners, while VCs seek minority stakes. - PE investors prefer stable, mature companies, while VCs bet on high-growth potential startups. - The risk tolerance and business size preferences vary significantly between PE and VC investors. 💡 Lesson to apply: Understand your business stage, growth prospects, and risk tolerance to choose between PE and VC financing wisely for optimal growth and success! https://lnkd.in/gfgdsN_5
How Private Equity and Venture Capital Differ
business.com
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💥 "Think There's No Capital Available in Canadian VC? Think Again!" 💥 🚀 Here are some insights from BDC's latest Venture Capital Landscape report. While the Canadian ecosystem faces challenges, it also provides ample opportunities. Read below! 1 - Ample Dry Powder Canadian VC investors are sitting on an estimated $10.4 billion in dry powder. There is still ample capital to be deployed into new deals. 2 - Foreign Investor Participation: Foreign investors participated in nearly 60% of Canadian deals in 2023, highlighting the continued attractiveness of Canadian startups to international capital, even in a turbulent market. 3 - Fundraising Activity: Despite a year-over-year decline, fundraising activity in 2023 was 27% higher than the pre-pandemic average (2015-19). Established managers raising large funds contributed significantly to this trend. 4 - Sectoral Shifts and Opportunities: Increased investor interest in life sciences, and energy and clean technology (ECT) sectors. These sectors saw a rise in the proportion of dollars invested in 2023, indicating new opportunities for capital deployment. 5 - Focus on Early-Stage Investments: Seed and early-stage companies received more than 80% of dollars invested in new companies within BDC's direct portfolio, highlighting a strong focus on funding new ventures at the early stages. If you are a founder, don't fall into the trap of assuming that "there is no more capital available". There is ample capital available, waiting to be deployed. Focus on your metrics and on building a resilient business to improve your chances of getting funded. Be patient! Let's build! Boreal Ventures Link to report: https://lnkd.in/eTZERAmF
46081-report-canada-venture-capital-landscape-2024.pdf
bdc.ca
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Founders: Most Active VC List 💰 The UK stands as one of Europe’s leading start-up hubs, with the UK attracting 4x more VC investment than Germany and over 10x more than countries like Spain Here are some of the most active VCs driving this growth (let me know in the comments if I’ve missed anyone!) 👇 Fuel Ventures 🚀 Founded: 2016 Investments 180+ Investment Stage: Pre-Seed, Seed, Series A Speedinvest Founded: 2018 Investments: 100+ Investment Stage: Seed Seedcamp Founded: 2007 Investments: 491 Investment Stage: Seed, Series A, Series B Eight Roads Founded: 1969 Investments: 472 Investment Stage: Seed, Series A, Series B, Series C, Series D Balderton Capital Founded: 2000 Investments: 376 Investment Stage: Seed, Series A, Series B, Series C, Series D LocalGlobe Founded: 2019 Investments: 341 Investment Stage: Seed, Series A Octopus Ventures Founded: 2008 Investments: 327 Investment Stage: Seed, Series A, Series B, Series C, Series D Ascension Founded: 2012 Investments: 277 Investment Stage: Seed, Series A Anthemis Group Founded: 2010 Investments: 222 Investment Stage: Seed, Series A, Series B, Series C, Series D Entrée Capital Founded: 2004 Investments: 221 Investment Stage: Seed, Series A, Series B, Series C, Series D 83NORTH Founded: 2006 Investments: 207 Investment Stage: Seed, Series A, Series B, Series C, Series D Atomico Founded: 2006 Investments: 204 Investment Stage: Seed, Series A, Series B, Series C, Series D Notion Capital Founded: 2009 Investments: 161 Investment Stage: Seed, Series A, Series B Downing Ventures Founded: 1986 Investments: 166 Investment Stage: Seed, Series A, Series B, Series C, Series D Frontline Ventures Founded: 2012 Investments: 134 Investment Stage: Seed, Series A, Series B, Series C, Series D Connect Ventures Founded: 2012 Investments: 109 Investment Stage: Seed firstminute capital Founded: 2017 Investments: 109 Investment Stage: Seed, Series A, Series B AlbionVC Founded: 2004 Investments: 108 Investment Stage: Seed, Series A, Series B MMC Ventures Founded: 2000 Investments: 180 Investment Stage: Seed, Series A, Series B Dawn Capital Founded: 2006 Investments: 114 Investment Stage: Seed, Series A, Series B SuperSeed Founded: 2018 Investments: 29 Investment Stage: Seed, Series A Felix Capital Founded: 2014 Investments: 95 Investment Stage: Seed, Series A, Series B, Series C, Series D 20VC Founded: 2017 Investments: 38 Investment Stage: Pre-seed, Seed & Series A Index Ventures Founded: 1996 Investments: 300+ Investment Stage: Seed, Series A, Series B Crane Venture Partners Founded: 2015 Investments: 72 Investment Stage: Seed, Series A, Series B Greyhound Capital Founded: 2015 Investments: 57 Investment Stage: Seed, Series A, Series B I ran out of characters so please share others below ⬇️ —————————————————————- ♻ Useful for your network too? Repost 👉 Did I miss any from the UK or Europe? 👉 Add in the comments below ⬇️ 🙏 Please TAG your favourite VC’s to help others
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𝐅𝐮𝐧𝐝𝐫𝐚𝐢𝐬𝐢𝐧𝐠 𝐢𝐧 𝟐𝟎𝟐𝟒 𝐢𝐬 𝐭𝐨𝐮𝐠𝐡𝐞𝐫 𝐭𝐡𝐚𝐧 𝐞𝐯𝐞𝐫, 𝐚𝐧𝐝 𝐡𝐞𝐫𝐞’𝐬 𝐰𝐡𝐲... Yet, I’ve seen teams survive and thrive when they turn these challenges into opportunities. - 5 hard truths about fundraising in 2024: 1/ Venture capital is shrinking ↳ VC funding is down 33.6% compared to last year. ↳ Startups are competing harder for less money. 2/ Fundraising takes longer ↳ It now takes 17.4 months to close a VC fund. ↳ Founders need to prepare for a long grind and extended negotiations. 3/ Fewer funds, tougher competition ↳ Only 1,670 VC funds have closed this year, down 40%. ↳ Securing funding now requires more effort and sharper pitches. 4/ North America is slowing, Europe is booming ↳ Europe’s fundraising surged 26.9% while North America dropped 17%. ↳ Geography can play a huge role in your fundraising success. 5/ Big funds dominate ↳ Over 50% of new capital came from just 12 megafunds. ↳ Startups need to be realistic—big funds are chasing experienced managers. But here’s the thing: every fundraising challenge is an opportunity to be creative, relentless, and strong. I’ve seen teams rise above these obstacles with persistence and strategy. It’s not about the hand you’re dealt—it’s how you play it. - Here is how I've seen teams overcome these challenges: 1/ Pivot early, pivot smart ↳ Teams that align with growing sectors like sustainability or infrastructure are securing funding faster. ↳ Pivot towards sectors that are drawing capital—secondaries are up 66.4%. 2/ Build relationships before you need them ↳ Start conversations with investors early—way before you need the money. ↳ Founders who nurture relationships for months (or years) close faster. 3/ Focus on niche investors ↳ Instead of chasing megafunds, startups that target smaller, specialized funds often win. ↳ Investors in niche markets are hungry for the right opportunity. 4/ Leverage Europe’s momentum ↳ If you can target European investors or have operations there, you have an edge. ↳ Don’t limit yourself to local capital. 5/ Resilience wins ↳ the teams that push through the challenges, stay adaptable, and stay patient are the ones that succeed. ↳ Longer timelines aren’t a roadblock—they’re part of the process. Looking ahead to 2025, experts forecast a gradual recovery. With inflation stabilizing and interest rates easing, capital flows could start unlocking again. For startups, that means staying lean, visible, and ready to seize opportunities as the market rebounds. Prepare today, because the tide will turn in your favor! Fundraising isn’t about immediate wins—it’s about building long-term partnerships. You’re closer to success than you think. ------------------------------------- ♻️ Repost and follow Leon Eisen, PhD for daily fundraising, entrepreneurship and VC insights. Ring the 🔔 on my profile.
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