ESNA - Europe Startup Nations Alliance’s Post

In startups, stock options play a big role in aligning the interests of founders, employees, and investors. They not only help attract top talent but also foster long-term commitment and loyalty, driving the company’s success 🚀 ✨ In this article, Arthur Jordão, Executive Director at ESNA - Europe Startup Nations Alliance, explores the benefits of stock options, their role in talent retention, and the challenges within the European startup landscape. Discover how stock options can fuel innovation and growth. https://lnkd.in/dFqEEb6q

If you're an early-stage startup founder considering raising a Pre-Seed round, now is the time! 🏂 While some headlines may suggest a sharp drop 📉 in funding for startups since 2021, there's a silver lining. According to Carta, there's been a whopping 51% increase in total invested capital for Pre-Seed rounds on SAFe or Convertible notes. However, it's important to note that raising a priced round on a pitch deck and a great idea is now much harder, if not close to impossible. Investors are looking for the right opportunity and some traction. So, how do you navigate this complex environment? 🌀 Focus on the fundamentals. Get your Segment, Problem, and Unique Value Proposition right! 💪 Do the interviews, not just the surveys and the online research. Show investors how big the problem you're solving is, what kind of insights only you have on it, and what an outstanding opportunity it is. Get some early traction. Come to investor meetings prepared with examples and data you've gathered personally on the ground. The FOMO will do the rest ;) You've probably noticed that the data shared is specific to US startups. But as Nikola Yanev shared yesterday, there are 100 VC funds that raised over €16 billion last year, with the majority focused on early-stage investments over the next 2-4 years. Link to his post in the comments. Keep pushing forward and stay focused on the fundamentals to secure your Pre-Seed round! If you're not sure how or where to start - check us out, that's why we've built Icanpreneur, to support you go from Idea to Product-Market Fit, without relying on luck. #ificanpreneuryoucantoo #icanpreneur #preseed #earlystagestartups #earlystage #earlystageinvesting

As you might know, at Freiraum Ventures we have a soft spot for university teams, and as such, some recent findings by Adam Shuaib, PhD caught our attention. Adam found that only 15% of Europe's unicorn founders are alumni of the 5 most represented universities, suggesting that a big chunk of investment opportunities can be found outside the usual suspects like London, Paris and Berlin. Yet, as the majority of VC money continues to flow into the flashy startup hubs, we risk overlooking success stories in other ecosystems. Head over to our blog where we explain how VCs can adopt a more unified approach to back our homegrown champions and ensure Europe remains competitive at a global scale. Read the full piece here 👉 https://shorturl.at/4dDe5

Peter makes such a great point about understanding today’s investment rounds. Having solid data is crucial, but let’s be real—it’s just one part of the equation for founders. One thing we always remind the founders we work with at SALAMNDR is that it’s not just about the numbers on the cap table. Yes, dilution matters, but you’ve got to look at the bigger picture: What else does an investor bring to the table? Can they introduce you to the right people—potential customers, vendors, maybe even future investors? Do they know your space inside and out, and can they offer real advice on how things are trending strategically? Sure, protecting your equity is important, but sometimes you need to get the cash and keep growing, especially if you don’t have other promising leads. The key is finding that balance between managing your dilution and building a solid company with the right partners backing you. At SALAMNDR, we help founders figure all this out. It’s never just about the math—it’s about making the right moves to set you up for long-term success. #Fundraising #StartupLife #CapTableStrategy #Founders #VC

We are bringing back our popular "Investors on Stage" sessions to the EU-Startups Summit in Malta! ✨ On the main stage we will welcome 30 high-profile VCs to present their investment firms and focuses with a 2-3 minute pitch each. In these sessions, we flip the switch, turn the tables, and put them in the hot seat for a change! 🚀 Before reaching out to investors, it’s important to do your homework and find out which VC firms are a fit for your company in terms of industry focus, business stage, or even geographical focus. https://lnkd.in/dx4WCmn3

🔮 Are you investing with a ‘discount to the future’ mindset? Peter Thiele’s wisdom resonates deeply in the world of startup investing. The true value of an investment isn’t found in past performance, but in the potential of what’s to come. At Nobody Studios, we embrace this mindset by creating a diversified portfolio of startups poised to shape the future. Discover how you can invest at a discount to tomorrow’s breakthroughs in my new blog. 🔎 Read here: https://lnkd.in/g2_Rx5sA #futuretechnologies #peterthiel #venturestudios #techtrends

U.S. companies received nearly $31 billion in angel and VC funding in Q2. 📈 That's a 61% increase over Q1. Some traditional startup hubs, including Silicon Valley, New York and Los Angeles, contributed to this growth. But so did many emerging markets across the country. Our latest research highlights the 10 metro areas where funding increased the most — and the startups driving that growth. Dive into your free copy: https://hubs.la/Q02QLh5F0

Founders: here's how much of your company investors are asking for. Data from 3,368 rounds raised by US startups on Carta so far in 2024. Of course founders typically sell less equity in later rounds (as the business is much more established). But even within a single round like Series A, the gap between primary and bridge round dilution is quite wide. 𝗞𝗲𝘆 𝗧𝗮𝗸𝗲𝗮𝘄𝗮𝘆𝘀 • 75th percentile for primary Seed and Series A is around 25%. Deals with 30% or more dilution are rare. • The 20.4% median in primary seed rounds does not take into account the conversion of SAFEs or Convertible Notes (which is the usual route for pre-seed cash). • Pretty high median dilution in bridge seed rounds. A bridge after a seed round can either be great (an investor wants to pre-empt the A) or pretty bad (struggling company looking for a lifeline). So the distribution is all over.    • Many founders want to exit the Series A round maintaining majority control of the business. At 20% seed + 20% A + 8-10% pre-seed...that gets tricky!    • Deep tech sectors like Biotech and Hardware typically see dilution more towards the upper end of the ranges; standard SaaS is more the median.    • Dilution matters, but so do deal terms. Good to see liquidation preferences over 1x remain uncommon for Seed and A (less than 5% of deals). They are popping up more frequently in B and C however, especially in bridge rounds.    • This data doesn't look at "seed on SAFEs" but the median sold in a $3M SAFE round is 20.5% (which matches almost exactly with the dilution for a priced seed). Obviously, each round is a unique negotiation between the founders and investors. Founders want to hold on to a significant stake in the company they've created - and investors need a certain allocation in order to for their fund economics make sense. Hopefully these benchmarks help set the terms! Give me a shout in the comments if you want this same graphic filtered to a specific industry. #startups #founders #dilution #venturecapital #fundraising Fresh startup data bottled from pristine mountain streams every Thursday morning - subscribe for more at the link in graphic below.

“You can leave the floor - no perfect pitch exists!” - that’s how Quentin Dupraz from Ilavska Vuillermoz Capital kicked off one of the most insightful sessions I’ve attended with Alokta during #LuVentureDays 😅 It’s clear that the startup world is changing - creativity and non-traditional approaches are emerging more and more as the new norm 🔥No longer just about ticking boxes, founders are learning how to stand out and tell compelling stories. Here are some of the key points Quentin shared that really stuck with me: 🎯Investing is like a love affair You build long-term relationships that suit both sides. Be clear about your needs, expectations, and boundaries while encouraging the other side to do the same. This creates transparency and avoids misunderstandings. 🎯Go beyond good Finding 10 good companies isn’t enough. The goal? Spotting the fantastic ones that truly stand out. 🎯Pitching is just the start The pitch gets you in the room, but what happens next is about building trust and relationships. It’s your ability to tell a compelling story that makes the real difference. 🎯It’s all about the narrative Most pitches fall short because they don’t convey the full story. Show what you’ve already accomplished — talk about the hours spent, the research done, and the lessons learned. 🎯Timing is key VCs face huge risks with timing, and your startup has to be front and center. A simple product with a clear vision goes a long way. A big market? Great — but it’s the niche you’ve mastered that makes you stand out. 🎯Monetization from the start Even if you’re pre-revenue, outline how you plan to monetize. And when discussing your go-to-market strategy, be sure to show off your distribution channels and partnerships. 🎯The power of teamwork A complementary team is a must, and founders who can demonstrate flexibility and resilience are the ones who succeed when things don’t go as planned — which they rarely do in startups! 🎯 Avoid overload Keep your slides focused and to the point — just enough to spark curiosity. In early-stage startups, focus on your ideal customer profile rather than the competition. The key takeaway? Make your pitch simple yet powerful. Focus on the story, the vision, and the team behind it. To read more: Alokta Startup Luxembourg, LPEA - Luxembourg Private Equity & Venture Capital Association, LuXembourg - Let's Make It Happen, The LHoFT - Luxembourg House of Financial Technology, Luxinnovation GIE, University of Luxembourg Incubator and Entrepreneurship Programme, Luxembourg-City Incubator, PULSE, LBAN - Luxembourg Business Angel Network, Paul Wurth InCub, Le Village by CA, Technoport SA, GP Bullhound, Tomorrow Street, Expon Capital, Dealflow.eu, gener8tor, House of Startups Luxembourg, Cluster for Logistics Luxembourg - C4L

Navigating Secondaries: Unlocking Liquidity Options for Startup Stakeholders - this is what our Founding Partner Peter Sandberg has been invited to speak about at the EU-Startups Summit 2024 on #Malta in 2 weeks from now, May 9-10th. We're excited and grateful for the opportunity to increase the awareness of our unique offering on secondaries, invited by Thomas Ohr, Ana Metz, and Anastasiia Ponomareva 😊 Ping or DM Peter if you'll be in Malta during the event, and are curious to hear more 🚀 ✅ #EUstartupSummit #secondaries #liquidity #alternativeinvestments