Peter Walker’s Post

Very useful information!

Fyi: Funding update: "Now these metrics are reflective of many things, but the primary dynamic is supply and demand. There are certain industries (and certain founders) who can generate a higher "demand" for their companies - and there are some sectors that investors are cooler towards." All of content: "How do different industries compare at the pre-seed stage? Of course everyone has a different definition of "pre-seed". In this graphic, we based the analysis on companies who raised between $1 million and $3 million on SAFEs or Convertible Notes in 2024. X-axis: median valuation cap Y-axis: median cash raised Bubble size: total companies 𝗪𝗵𝗮𝘁 𝘀𝘁𝗮𝗻𝗱𝘀 𝗼𝘂𝘁? • As usual, #B2B #SaaS is the largest sector (big grey bubble in the center of the chart). • AI, unsurprisingly, has very high cash and valuation medians. The bubble size for #AI is not to scale, as it actually appears in many other sectors as well. • #Biotech (with some heavy influence from notes as opposed to SAFEs) is valued quite highly at this stage with a median valuation cap of $17 million. • Good showings for #Fintech, #Healthtech, and #Web3 (yes, #crypto startups are still out there). • Not so good for #Edtech, #Food, or #Logistics. Now these metrics are reflective of many things, but the primary dynamic is supply and demand. There are certain industries (and certain founders) who can generate a higher "demand" for their companies - and there are some sectors that investors are cooler towards. Each individual negotiation will be different but hopefully this helps set some reality for fundraising founders out there - and if you want to dig deeper into pre-seed, join us tomorrow at our virtual event! 10am PT sharp, comment below for a link. VCs headed back from vacation, more deals happening — bullish on H2 2024! #startups #preseed #valuation #founder #fundraising ………………………………………………………….. RePosted by: #StartLouis is For the St. Louis Region and Beyond, EcoNetwork System for #Founders, #StartUps, #Entrepreneurs, #Innovators, #SMB’s and Others. ….. “StartLouis Where “StartUps” Start !”. Free to join, Free access to Resources and the “Top 10+ List of Resources” For: #Founders, #StartUps, #Innovators, #Entrepreneurs, #SMB’s and Others. Access via web site (MeetUp) “StartLouis”. ….. Ed Schneider, StartLouis V5.0, Founder, Principal, Lead Organizer. ….. (R:08062401). ———————————————-—-

This analysis offers valuable insights into the pre-seed landscape across various industries, and it's clear that the dynamics of supply and demand play a significant role in shaping the outcomes. It's interesting to see how sectors like AI and Biotech are commanding higher valuation caps and cash raised, reflecting strong investor interest and confidence in these fields. The standout presence of B2B SaaS as the largest sector is expected, but the high valuations in AI and the solid performances in Fintech, Healthtech, and Web3 highlight where the excitement is right now. On the other hand, the cooler reception in Edtech, Food, and Logistics is a reminder of the cyclical nature of investor sentiment and the challenges some sectors face at this stage. For founders in these industries, understanding these trends is crucial when navigating the fundraising landscape. It's not just about having a great idea but positioning it in a market that investors are eager to engage with. The upcoming virtual event sounds like a perfect opportunity to dive deeper into these trends and gather actionable insights for those at the pre-seed stage. Looking forward to seeing how the rest of 2024 unfolds, especially as more VCs get back in the game. Thanks for sharing this detailed analysis! 

Welcome to...Total Tally Tuesdays. Did we get your attention? 😁 Our attempts at humorous alliteration aside, we present our take on another set of interesting stats from Peter Walker, aka Carta's insightful Data Storyteller. Here's what we find 'surprising' and 'not surprising' based on the data below. Surprising - AI Prominence: AI is tracked separately, showing its growing importance across industries. - Edtech Position: Edtech has low median valuations and cash raised despite the focus on remote learning. - Cybersecurity Placement: Cybersecurity's lower position in valuation and cash raised is unexpected given the importance of digital security. - Web3 Performance: Web3 is top-ranked for valuation and cash raised despite crypto market volatility. Not Surprising - General SaaS Dominance: The highest number of companies (178) aligns with software industry growth. - Fintech's High Valuation: High median valuation caps are consistent with digital finance trends. - Healthtech Popularity: Being the second most represented sector reflects a focus on digital health solutions. - AI's High Metrics: High median valuation and cash raised align with current investment in AI technologies. - Biotech's Position: High valuation and cash raised align with the sector's capital needs. - Hardware and Medical Devices: Lower company counts but moderate valuations match their capital-intensive nature. Like Peter, we are equally bullish on H2 2024! #venturecapital #valuations #startups #USA

𝗛𝗼𝘄 𝗱𝗼 𝗱𝗶𝗳𝗳𝗲𝗿𝗲𝗻𝘁 𝗶𝗻𝗱𝘂𝘀𝘁𝗿𝗶𝗲𝘀 𝗰𝗼𝗺𝗽𝗮𝗿𝗲 𝗮𝘁 𝘁𝗵𝗲 𝗽𝗿𝗲-𝘀𝗲𝗲𝗱 𝘀𝘁𝗮𝗴𝗲? Key Observations: • B2B SaaS remains the largest sector, represented by the big grey bubble at the chart's center. • AI shows high median cash and valuation caps, underscoring its growing prominence. The AI bubble appears in multiple sectors, reflecting its broad impact. • Biotech boasts a median valuation cap of $17 million, significantly influenced by notes rather than SAFEs. • Fintech, Healthtech, and Web3 show strong performance, indicating continued investor interest (yes, crypto startups are still out there). • Edtech, Food, and Logistics are not faring as well in the pre-seed stage. VCs are back from vacation, and deals are heating up — bullish on H2 2024! #startups #preseed #valuation #founder #fundraising #cenergy #dynlab

The industry is shifting to AI-powered platforms, which industry are you trying to penetrate using the power of AI? How will you leverage pioneering in a niche AI Market and also land significant funding opportunities utilizing your strategy?

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This is our monthly number, where we discuss investment trends. Don't worry—it's not all about Al. Yes, over 30 Al unicorns have made it to the global stage this year, but climate tech, health tech, and fintech startups are also on the rise. 🚀 The key takeaway? No one can deny that Al's feature set boosts acquisition across the board. The future is more than just automated-it's diversified. Are you curious where Whales Ventures sees the hottest opportunities in these sectors? Let's talk about it. #AlUnicorns #InvestmentTrends #GenAl

Despite $332 billion in AI VC investments since 2019, exit options are shrinking, with M&A for venture-backed companies dropping to $47 billion in 2024 from $148 billion in 2021, and IPOs nearly stagnant. To thrive, AI startups need defensibility through a large market, solutions to key pain points, and industry disruption potential, along with rational valuations and fundamentals-focused growth for sustainable exits. Read Full Report at Crunchbase: https://lnkd.in/gPvNEZeX Check out the latest edition of our weekly newsletter AlphaInsights: U.S. Elections and the Future of Venture Capital 🗳️🇺🇸🔮  https://lnkd.in/gaidCyy6 #AlphaImpact8 #AI8Ventures #AlphaImpact8Ventures #VentureCapital #VC #AIMarket #AI #AIStartups #Exit #ExitStrategy #Innovation #Business #StartupGrowth #MergersAndAcquisitions #IPO #Valuation #Market #Investor #DisruptiveTech #Entrepreneurship #Digital Are you a startup? Apply for funding here: https://lnkd.in/g9VP3GJ6   Interested in changing the world? Check out our website: https://lnkd.in/eHcuMS3Z    Venture Capital is an illiquid and risky asset class with significant technical and market risks, past performance is no indicator of future performance. Investment is available to accredited investors only

𝐕𝐞𝐧𝐭𝐮𝐫𝐞 𝐂𝐚𝐩𝐢𝐭𝐚𝐥: 𝐀 𝐓𝐚𝐥𝐞 𝐨𝐟 𝐓𝐰𝐨 𝐂𝐢𝐭𝐢𝐞𝐬 As the AI wave continues, the early-stage startup environment is a tale of two cities. Investment activity is booming, specifically within Generative AI, but exits remain hard to come by, and investors (limited partners) of VC funds are not seeing the realized returns they hoped for. LPs are looking for 𝐃𝐏𝐈: Distributed to Paid in Capital calculated as: 𝐃𝐏𝐈 = 𝐂𝐚𝐩𝐢𝐭𝐚𝐥 𝐝𝐢𝐬𝐭𝐫𝐢𝐛𝐮𝐭𝐞𝐝 𝐭𝐨 𝐥𝐢𝐦𝐢𝐭𝐞𝐝 𝐩𝐚𝐫𝐭𝐧𝐞𝐫𝐬 / 𝐂𝐚𝐩𝐢𝐭𝐚𝐥 𝐢𝐧𝐯𝐞𝐬𝐭𝐞𝐝 𝐛𝐲 𝐥𝐢𝐦𝐢𝐭𝐞𝐝 𝐩𝐚𝐫𝐭𝐧𝐞𝐫𝐬 VCs need to both fund founder dreams but also be held to our mission as stewards of capital. Returning capital to LPs continues to be a big challenge not only due to minimal exit activity but also the fact that fund sizes have increased dramatically creating a denominator effect problem. The venture industry must focus on DPI and produce realized gains vs. just having paper gains. Here are some of the highlights from the Pitchbook/NVCA “Venture Monitor” Report for 2Q 2024 (https://lnkd.in/g-mnSew8): • Fundraising by venture funds on track to reach pre-pandemic levels ($37.4B raised in 1H 2024), but capital is going to established managers, while new funds struggle to raise; • Deal activity expands for the third straight quarter, with the highest early-stage deal count since 2022; • Percentage of dollars invested in first VC rounds still remains small at 9.4%; • Generative AI investment activity continues at a record pace with $22.1B invested in 1H 2024 across 280 investments; • AI & ML investments are on the rise and approaching 50% of all capital invested; • Exit count (500) and exit value ($49B) are still dismal with few ipos (overall exits to reach 2017 level); • Based on 1Q 2024 VC performance data by Cambridge Associates, the DPI numbers since 2015 have been really low for VCs. Please share your thoughts in comments. #venturecapital #NVCA #founders #entrepreneurs