Cyrannus’ Post

As an aspiring venture capitalist, this article has valuable insights into the core questions to ask founders when evaluating potential investments. By mastering these areas, aspiring VCs can better identify promising startups and establish meaningful conversations with founders.

Venture capital is like any other business where people matter the most. While VC firms focus on the founding team when investing in a startup, limited partners (LPs) look for strong partners in the fund. When key partners leave a VC firm, it can cause several challenges. This is especially true if the departing partners were the main point of contact for startups or responsible for winning deals. Their departure can change the relationship between the founders and the fund, potentially affecting exits and impacting the LPs' ROI. Below is a good article by Tushar Goenka on the subject: https://lnkd.in/gSEgYYUW #venturecapital #investments

In 2020, I started dipping my toes into angel investing—into companies like SpaceX, Carta, AngelList, LayerZero, and Anduril. 😮 But here’s the twist: I didn’t have to start with millions. I got in with as little as $1k. 🕹️ The secret? Syndicates. Syndicates allow investors to put their money into start-ups and invest on a deal-by-deal basis. Here’s how it works 👇 You apply to join different syndicates (many through AngelList). Once accepted, you start receiving curated startup investment opportunities in your inbox. You can then decide to invest on your terms, deal by deal. What’s the difference between joining a syndicate vs. a traditional VC fund? 𝗜𝗻𝘃𝗲𝘀𝘁𝗺𝗲𝗻𝘁 𝗦𝘁𝗿𝘂𝗰𝘁𝘂𝗿𝗲 - Syndicates: You control your choices on a deal-by-deal basis. - Funds: LPs contribute upfront, and the fund managers decide how to allocate across all deals. 𝗣𝗼𝗿𝘁𝗳𝗼𝗹𝗶𝗼 𝗖𝘂𝘀𝘁𝗼𝗺𝗶𝘇𝗮𝘁𝗶𝗼𝗻 - Syndicates: Flexibility to pick individual deals based on your interest and risk tolerance. - Funds: Diversifies automatically across a range of investments within a specific theme or sector. 𝗘𝘅𝗶𝘁 𝗦𝘁𝗿𝗮𝘁𝗲𝗴𝗶𝗲𝘀 - Syndicate: Allows you to choose deals with different exit timelines—maybe you’re looking for a late-stage opportunity closer to IPO. - Fund: A set strategy for the entire portfolio, typically 7-10 years. 𝗙𝗲𝗲𝘀 - Syndicate: Often just a 20% carry-on deals, no annual fees unless a complicated structure / later-stage deal and requires legal involvement - Fund: Usually 20% carry plus a 2% management fee for 10 years. 𝗖𝗮𝗽𝗶𝘁𝗮𝗹 𝗥𝗲𝗾𝘂𝗶𝗿𝗲𝗺𝗲𝗻𝘁𝘀 - Syndicates: You can jump in with around $1k per deal. - Funds: Requires a larger upfront commitment with periodic capital calls. At Red Beard Ventures, we have two ways for investors to get in on the action: - Red Beard Ventures Fund: A web3-focused early-stage fund investing in blockchain, gaming, DeFi, and beyond, both in equity and tokens. - Red Beard Ventures Syndicate: A stage-agnostic syndicate investing in frontier tech— space, AI, climate tech, sports, and more. Interested in starting to grow your angel portfolio? You can apply here: https://lnkd.in/gW5GHB3j #AngelInvesting #Startups #VentureCapital #Syndicates #Investing --- Enjoy this? Follow Elana Gold for venture capital, angel investing, and startup insights

Which London-based VC firms have been the most active this year? And which industries are commanding the largest and most frequent investments? This week, we updated our long-standing article to bring you the latest numbers — and much more, including an analysis of London’s startup ecosystem. #VentureCapital #PrivateEquity #BeauhurstInsights https://lnkd.in/d2DgtwP

It's wild to see how much the scene has transformed over just a couple of decades. 🌟 From humble beginnings of writing six-figure checks to now overseeing billions in assets, it's been quite the journey for firms like Uncork Capital.📈 The discussion around VCs investing their own money in startups and the nuances of potential conflicts of interest definitely got me thinking. 💼💡It's crucial for transparency and trust in the industry. And let's not forget the lively debate on board seats. While some advocate for more hands-on involvement, others argue for a more hands-off approach. 🤔 Overall, a great read shedding light on the ever-changing dynamics of the VC world. #VentureCapital #StartupLife #IndustryInsights https://lnkd.in/ggXXGeMJ

The title ‘Venture Partner’ in Web3 VC is often misunderstood. Traditionally, venture partners source deals for funds and earn a share of the profits from successful investments they introduce. However, the role has evolved: Portfolio Founders: Some funds grant the title to founders of high-performing startups within their portfolio, even as these founders remain focused on their own ventures. LP Representatives: In other cases, individuals from family offices that are limited partners receive the title, sometimes as a condition for their investment—a practice that can blur lines and create conflicts of interest. Despite these variations, venture partners are crucial for deal flow. Yet, they often don’t participate in investment committee meetings, due diligence, negotiations, or other core investment processes. Their primary role is to introduce startups to the fund. For founders, it’s essential to understand who you’re engaging with. When interacting with a venture partner, inquire about their specific role and influence within the fund to ensure you’re connecting with the right decision-makers.

𝗩𝗲𝗻𝘁𝘂𝗿𝗲 𝗖𝗮𝗽𝗶𝘁𝗮𝗹 𝟭𝟬𝟭: 𝗔 𝗚𝘂𝗶𝗱𝗲 𝗳𝗼𝗿 𝗙𝗼𝘂𝗻𝗱𝗲𝗿𝘀 Venture capital can propel your startup to new heights, but mastering its dynamics is essential for success. Key Takeaways: 1️⃣ Origins & Purpose: Born in Silicon Valley in the 1960s, venture capital aims to fund startups capable of achieving billion-dollar valuations. 2️⃣ Stages of Funding: Funding evolves from ideation (under $250K) to seed (($1M-$3M) and scaling (Series A-C, $4M+). 3️⃣ Capitalization & Dilution: Expect VCs to take 15%-30% equity per round, with strategies to manage dilution across multiple raises. PS. check out 🔔 for a winning pitch deck the template created by Silicon Valley legend, Peter Thiel https://lnkd.in/ejp-Bhnu

LPs, VCs, and startups are all crucial parts of a healthy ecosystem, each with a specific role to play. But what exactly are these roles? 🤔 In our latest interview with Stanislav Sirakov, GP at LAUNCHub Ventures, we touched on this topic. These insights come from a recent LP meeting where the fund reviewed the evolution of their portfolio. 📊 Get an insider's perspective below. #VentureCapital #LP #TechStartup

LPs, VCs, and startups are all crucial parts of a healthy ecosystem, each with a specific role to play. But what exactly are these roles? 🤔 In our latest interview with Stanislav Sirakov, GP at LAUNCHub Ventures, we touched on this topic. These insights come from a recent LP meeting where the fund reviewed the evolution of their portfolio. 📊 Get an insider's perspective below. #VentureCapital #LP #TechStartup