FundMyPitch’s Post

During last week's general assembly of Jolt Capital's funds, Jean Schmitt revealed the strong and consistent performances of growth deeptech investments. It echoes the findings of a recently released report by Hello Tomorrow and Deepbright Ventures entitled "Deeptech decoded: a strategic investor's guide". Here's what their exec summary reads: 🔸 "Deeptech is far from the unpredictable money sink it is often perceived to be." 🔸 "A broad analysis of 862 deeptech startups shows they achieved a gross (unrealized) IRR of 23.7% (19.6% net)" 🔸 "Hardware-focused startups significantly outperform their software-based counterparts, with IRRs of 28% compared to 13% for software-based businesses." 🔸 "Startups holding patents tend to perform better, achieving a 25% IRR versus 20% for non-patented companies." Jean is quoted in the opening part of that report: "About half of the top 100 listed companies in the world are deeptech companies, which is another piece of evidence. All investors who require portfolio diversification and optimal risk management, particularly pension funds, and who are not investing enough in deeptech yet are exposing their portfolio to underperformance, increased risks and lower resilience." Most of the time, hybridization doesn't pan out. But sometimes, when you carefully select your part of the spectrum, you get the best of both worlds. At Jolt, we'll keep hammering home the same pro domo message again and again: "growth deeptech equity has the agile hands of tech VC, and the powerful legs of big tech buyout." Europe shouldn't miss that train... Download the full report here: https://lnkd.in/gRpVTXy #deeptech #startup #scaleup #investment #fund #growthequity #privateequity #DPI #IRR #performance #metrics #assetclass #LP #report

From Jolt Capital Founding CEO, Jean Schmitt: "About half of the top 100 listed companies in the world are deeptech companies, which is another piece of evidence. All investors who require portfolio diversification and optimal risk management, particularly pension funds, and who are not investing enough in deeptech yet are exposing their portfolio to underperformance, increased risks and lower resilience." #Deeptech #GrowthCapital #JoltCapital #ScaleUp #DPI #IRR

No surprise here for anyone involved in venturing, but a good overview of the situation and an opportunity to add my perspective. “We’ve raised a lot of money, and we’ve given very little back,” Thomas Laffont, co-founder of investment firm Coatue Management, said at a recent conference. “We are bleeding cash as an industry.” "There are currently more than 1,400 startups valued at $1 billion or more—so-called unicorns—according to a recent presentation from Coatue. All have investors waiting to get rich." “There are companies that are 13, 14, 15 years old. This is beyond any historic standard. And there are over a thousand of them,” said Bill Gurley, a partner at the venture firm Benchmark. There are several contributing factors that led to this situation, and I'll just list a few in order of importance: 1) There was way too much capital raised and invested by the venture capital 'industry' (hint as to the problem), which is best viewed and practiced as a discipline dependent on individual talent. 2) Valuations were falsely elevated due in no small part to excessive VC, and they still haven't corrected (see Gurley's comment -- most of these ventures are still valued far too high). 3) Big Techs became too big and crossed the antitrust line long ago. VC has become increasingly reliant on flipping to Big Techs in particular to achieve attractive ROIs when they should have been focused on building sustainable companies. M&A has always been a significant source of exits / liquidity / and ROI, but it reached 70% of total ROI for VC in the U.S. a couple years ago. If we were seeking to blame, there is plenty to go around. 1) Excessive monetary and fiscal stimulus inflated bubbles in all assets, including VC, and we still haven't seen a correction in most assets. 2) Big Techs have abused market power, engaged in regulatory capture, and generally behaved in a predatory manner, distorting and manipulating markets. 3) VCs had about as much discipline in managing capital as Congress... the level of fund raising in some funds is obscene, and that it's still centralized around SV is inexcusable. It's bad for the economy. 4) Like VCs, too many entrepreneurs became experts in raising capital, rather than building lasting companies. While I agree that the Trump admin will likely be friendlier to M&A, and we do need more of it, I really don't think it will be sufficient to bale out the majority of VC firms and unicorns that haven't marked their valuations to the actual market. Big Techs will likely still have handcuffs, as well they should. That said, we shouldn't punish entrepreneurs and VCs for what Big Techs, Congress and regulators have done. The 3rd and 4th tier in tech need to step up their game in M&A, as should other industries.

How Investors Assess Risk in Early Stage! Investing in #early-stage startups involves navigating a landscape of high risk and high potential. #Investors focus on the founder's ability to adapt and lead, especially when faced with uncertainty. Beyond the idea, it's about assessing the market #opportunity, product-market fit, and the startup's ability to scale. #Financial sustainability is a priority, with investors looking at cash flow management and the path to profitability. A startup that demonstrates operational efficiency and smart use of capital is seen as less #risky. Additionally, awareness of industry regulations and market trends is crucial in mitigating future #challenges. In early-stage investing, it’s not just about the risk—it’s about finding startups with the resilience to thrive in a competitive, ever-changing environment. How do you assess risk when #evaluating early-stage startups, and what factors do you prioritize in your investment decisions?

Investors in early-stage startups look for three main qualities: a clear and compelling vision, evidence of traction, and a strong, capable team. Highlight these elements in your pitch to significantly increase your chances of securing investment.

Financing a startup in the built environment can be difficult due to unique industry demands and a slew of financial products to choose from. In this three-part series, I aim to reveal the decisions a founder will make that factor into where, why, when and how built world startups raise capital. These articles will also explore how to leverage specific financial products to maximize runway and protect equity for the industry's most common startup business models. The first part is out now on the BuiltWorlds website and it lays the foundation for how startups begin to evaluate their capital structures. Read more: https://lnkd.in/g3xM9fqt

In a new series from BuiltWorlds Venture Analyst Cameron Mabley, we'll be exploring the capital sources available to built world startups and furthermore digging into why capital structures in general are critical to those startups' ultimate success. In this first installment of what will be a three-part series, Mabely covers the decisions that govern how a startup may choose to capitalize itself, writing, "Whether a business owner chooses to fund their enterprise with debt, equity, or a mix of the two depends on the expenses incurred and the product or service provided." He also goes on to cover the differences between operating expenses and and capital expenditures as well as opportunities for how a startup may eventually finance its growth. Read more: https://lnkd.in/g_snz8XH Follow us for more insights on all things venture in the built world!

💼Professional investors understand that success in venture capital is all about managing risks and leveraging opportunities. When they invest $100, they spread their investments across 20-30 startups. Why? Because in this high-stakes game, a significant number of these investments may not reach the desired outcome. 📊Yet, here’s where the magic happens: even if most fail, the few that succeed have the potential to yield returns of up to several hundred times the initial investment! It’s not about winning every time; it’s about diversifying, staying informed, and making calculated investments on tech and innovation. At eqwefy, we’re passionate about empowering investors to take these measured steps and contribute to a thriving startup ecosystem. #VentureCapital #InvestmentStrategy #RiskManagement #StartupInvesting #Innovation #Finance #eqwefy