Bradley Kellmayer’s Post

https://lnkd.in/gYi_H-xf We all know raising venture capital is tough today. A major cause is the lack of exits which limits recycling of funds back to early-stage startups. This article provides a glimmer of hope. A public offering is the glitter and the crowning achievement, i.e. everyone gets paid. But there are other options, albeit not as Hollywood-like. Private equity firms are looking at high-quality late-stage startups. But the price to revenue multiples is suppressed. For non-AI firms, it went down to 6 – 12x from 12 – 15x. It is nonetheless a liquidity event for investors.

Venture capital is slowing down amid economic uncertainty, but private markets are holding potential. While VC deals have dropped 32% from the previous quarter, investors are eyeing opportunities in private assets and secondary markets. With startups staying private longer and IPO markets on the horizon, what does this mean for the future of funding and innovation? Read full blog here: https://lnkd.in/egBXXQhm #NKDAdvisory #VentureCapital #PrivateMarkets #EconomicUncertainty #Startups #Innovation #InvestmentOpportunities #SecondaryMarkets #IPO #PrivateAssets

A new playbook for venture capital and startup exits? Sell to PE. "...The alchemy of the #venturecapital process, in which investments are catalyzed over a number of years into a successful #IPO or a big #M&A deal, is under pressure...", reports The Wall Street Journal. INVESTORS ARE ASKING FOR RETURNS EARLIER, IN A WEAK EXIT MARKET: "...Investors are demanding to extract returns from #VC firms and #startups even though the #IPO market is still in a state of recovery, reflecting lingering economic anxieties and other factors. IPOs in 2024 have outpaced last year, but activity remains below normal levels...". PRIVATE EQUITY PROVIDES EXIT AND LIQUIDITY: "...Those dynamics are driving VCs and more mature startups to create liquidity by selling to private equity, even though the rewards often aren’t nearly as dazzling as in a public offering....". BUT EXITS TO PE MAY APPLY TO MATURE STARTUPS, SPECIFIC SECTORS AND EXIT VALUATIONS ARE LIKELY TO BE LOWER: "...Some of the VC-backed companies that have been private for longer and have sufficient scale have been in the radar of private equity (...), But PE companies are also highly selective when it comes to acquiring tech companies. Where venture capital firms place lots of bets and hope that a few turn out to be huge winners, PE buyers look for companies with a reliable business model they believe they can take to the next level. PE firms are particularly drawn to software companies with subscription business models and stable, recurring revenues, although they will look for growth opportunities in other sectors such as AI-supportive data infrastructure deals too (...) Three years ago, many startups in #cybersecurity and other areas of tech were valued at 12 to 15 times forward revenue (...) Now those #valuations are in the #revenuemultiple range of six to 12 times, in many areas, with the exception of a few areas such as #AI and some software-as-a-service players...". #privateequity #exit #startup #innovation #techinnovation #investmentideas #investmentbanking #mergers #mergersandacquisitions #techtrends #techstartups #healthcarestartups #corporatestrategy #investment #investmentterms #bigdata #venturecapital #venturecapitalist #capitalmarkets

📊🤖 Balderton Capital, a European venture capital firm, has closed its $615 million Early Stage Fund IX and $685 million Growth Fund II, to back Europe’s most ambitious entrepreneurs from the seed stage through IPO. 📈 There was strong investor demand for Early Stage Fund IX and Growth Fund II, which marked the first time Balderton raised its early and growth funds simultaneously. The increasingly global mix of LPs in the firm’s funds has been attracted to Balderton’s European focus and track record of success. 🤖 Read more here: https://lnkd.in/eSqU7_EZ Bernard Liautaud #tech #funding #news #VC #startup #investment #technology

For venture capital firms, finding the next big startup investment opportunity is a never-ending pursuit. With thousands of startups being founded every year, it's impossible for VC firms to comprehensively track and evaluate every potential deal themselves. This has led many leading venture firms to implement "VC scout" programs to crowdsource deal flow and leverage external networks to surface promising startups. Read as an article: https://lnkd.in/dUzRwSHM Subscribe to TheSEC.AI today https://www.thesec.ai #TheSECAI Join our Discord https://lnkd.in/gKfM7_zU to #OpenSourceWallStreet #finance #investing #money #personalfinance #wealth #investment #stocks #trading #investing #investor #money #markets #entrepreneur #business #stockmarket #wealthbuilding #equities #fixedincome #commodities #dividends #portfoliomanagement #riskmanagement #assetallocation #financialliteracy #venturecapital #startups #ai #machinelearning

Thiv Holdings, a venture capital firm dedicated to empowering early-stage startups tackling critical challenges! What sets us apart? Experienced Team: Our team leverages 12+ years of experience in investment banking to guide founders from vision to reality. Focus on Impact: We invest in ventures that create positive social or environmental impact, alongside strong financial potential. Founder-Centric Approach: We believe in open communication and a collaborative partnership, becoming your trusted advisor on your journey. Looking for seed funding and strategic support to propel your venture forward? We're actively seeking passionate founders building the future! Stay tuned for more information about our investment criteria and application process coming soon! #venturecapital #startup #impactinvesting #entrepreneur #launch

➡️ Amid a slow IPO recovery, venture capital firms face increased pressure to deliver returns, with many turning to private equity (PE) deals to provide liquidity, even if these exits offer less spectacular rewards than public listings. ➡️ Private equity activity in the tech sector is rising, driven by lower capital costs and a stronger alignment on valuations. Tech now makes up nearly 30% of total PE deal value, with firms targeting established, scalable companies, particularly in software with stable revenue models. ➡️ Startup valuations have significantly dropped from peak levels, with many tech companies now valued at 6-12x forward revenue, reflecting a more conservative investment climate. #startups #venturecapital

Have you ever wondered!!!! how the VENTURE CAPITAL FIRMS work and shape the world by fueling the innovation, backs new ideas and drives growth in today’s dynamic startup ecosystem. look 👇 #VentureCapital #Startups #Investment #Funding #Finance #Investors

Rumor has it that Venture Capital is a high-end route to making money by investing in start-ups and big businesses with expectations of high turnover. Recently, I read a book about how an individual secured 4 million in venture capital, and I am still astonished to date. #VentureCapital #Investing #StartUps #Business #Finance

That Sound You're Hearing Is 13% Of Venture Capital Firms Quiet Quitting. I'll tell you why the "investor tourist" class is silently disappearing in my new article for Inc. Magazine https://lnkd.in/e2Aq__un #innovation #technology #startup #venturecapital #money