Friends & Family Capital

A big thank you to Marina Temkin, CFA at TechCrunch for skillfully capturing the heart of Friends & Family Capital. With her extensive experience in financial analysis and journalism, Marina's article underscores our commitment to assisting founders and CFOs in enhancing their finance functions and refining their fundraising strategies. We invite you to read more about our approach and the close of our oversubscribed $118M third fund here: https://lnkd.in/em9Dd_Ng

Ready for launch! Astranis Space Technologies Founder and CEO John Gedmark with Friends & Family Capital's John Fogelsong await the launch in Cape Canaveral. Watch it live here: https://lnkd.in/gUSCv-_n

𝗞𝗲𝘆 𝘁𝗵𝗲𝗺𝗲 𝗳𝗼𝗿 𝗤𝟯 𝟮𝟬𝟮𝟰 𝗘𝗮𝗿𝗻𝗶𝗻𝗴𝘀: “The Ubiquitous AI Agent” • 𝗠𝗮𝗰𝗿𝗼 𝗲𝗻𝘃𝗶𝗿𝗼𝗻𝗺𝗲𝗻𝘁 𝗰𝗼𝗻𝘁𝗶𝗻𝘂𝗲𝘀 𝘁𝗼 𝘀𝘁𝗮𝗯𝗶𝗹𝗶𝘇𝗲 with signs of strength across our coverage universe • 𝗠𝗮𝗻𝘆 𝗼𝗿𝗴𝗮𝗻𝗶𝘇𝗮𝘁𝗶𝗼𝗻𝘀 𝗯𝗲𝗴𝗶𝗻 𝘁𝗼 𝗶𝗻𝗰𝗼𝗿𝗽𝗼𝗿𝗮𝘁𝗲 𝗔𝗜 𝗮𝗴𝗲𝗻𝘁𝘀 into their software to improve customer outcomes • 𝗨𝘀𝗲𝗿 𝗴𝗿𝗼𝘄𝘁𝗵 𝗶𝗻 𝗔𝗜 𝘂𝘀𝗲 𝗰𝗮𝘀𝗲𝘀 now positively impacts topline forecasts beyond the cloud providers • 𝗣𝗹𝗮𝘁𝗳𝗼𝗿𝗺 𝘂𝗽𝗱𝗮𝘁𝗲𝘀 𝘁𝗼 𝗿𝗲𝗶𝗴𝗻𝗶𝘁𝗲 𝗴𝗿𝗼𝘄𝘁𝗵 are prevalent among application software firms • 𝟴𝟮% 𝗼𝗳 𝗰𝗼𝗺𝗽𝗮𝗻𝗶𝗲𝘀 both beat estimates and had analysts raise estimates on revenue and EPS

What changed for $1 Billion+ software business this year?   • Growth rates slowed slightly, and still maintained strong compounding to $1 Billion in revenue. • 65%+ revenue growth to start and 35% revenue growth as the floor became the new norm. • With the slowing of growth rates, operational metrics like the Rule of 40, CAC Payback, and Sales Efficiency also saw slight declines. • However, Revenue Unicorns now have stronger FCF margins at $1 Billion+ in revenue.   Learn how Founders and CFOs have continued their growth at scale in the full report: https://lnkd.in/g_b8A2Xr

𝗜𝗻𝘁𝗿𝗼𝗱𝘂𝗰𝗶𝗻𝗴 𝘁𝗵𝗲 𝟮𝟬𝟮𝟰 𝗘𝗱𝗶𝘁𝗶𝗼𝗻 𝗼𝗳 𝘁𝗵𝗲 𝗥𝗲𝘃𝗲𝗻𝘂𝗲 𝗨𝗻𝗶𝗰𝗼𝗿𝗻 𝗣𝗹𝗮𝘆𝗯𝗼𝗼𝗸. Key Playbook actions on the path from $100 Million to $1 Billion in revenue include: - 𝗚𝗿𝗼𝘄 𝗙𝗮𝘀𝘁𝗲𝗿 𝗟𝗼𝗻𝗴𝗲𝗿: Grow revenue 65%+ to start and keep it above 35% - 𝗗𝗶𝘀𝘁𝗿𝗶𝗯𝘂𝘁𝗶𝗼𝗻 𝗠𝗮𝘁𝘁𝗲𝗿𝘀: Invest 2x on S&M as compared to R&D - 𝗢𝗽𝗲𝗿𝗮𝘁𝗶𝗼𝗻𝗮𝗹 𝗘𝘅𝗰𝗲𝗹𝗹𝗲𝗻𝗰𝗲: Target “Rule of 50” for revenue growth plus FCF margin Learn about these and other Playbook insights in the complete 2024 Edition of the Revenue Unicorn Playbook included below. 𝗔𝗯𝗼𝘂𝘁 𝗧𝗵𝗲 𝗥𝗲𝘃𝗲𝗻𝘂𝗲 𝗨𝗻𝗶𝗰𝗼𝗿𝗻 𝗣𝗹𝗮𝘆𝗯𝗼𝗼𝗸 The Revenue Unicorn Playbook is an analytical guide that explores the growth of public software companies from $100 Million to $1 Billion in revenue. The goal of the Playbook is to offer founders and company leaders a framework to examine their growth and investments as they scale.

𝗕𝗶𝗴 𝗺𝗼𝘃𝗲𝘀 𝗶𝗻 𝘀𝗽𝗮𝗰𝗲: Astranis Space Technologies announces a DoD contract to design next-generation Resilient GPS satellites.    𝗪𝗵𝘆 𝗶𝘁 𝗺𝗮𝘁𝘁𝗲𝗿𝘀: GPS outages cost ~$1 Billion per day to the US economy — disrupting everything from stock markets to agriculture.   The Resilient GPS program is a $1.9 Billion program to build 24+ small satellites that will boost GPS resilience and secure key capabilities.   The program is moving fast using the DoD’s “quick start” authority. Within six months, Astranis has already been awarded a contract for the initial design phase.   Space infrastructure matters. Read more in CNBC’s coverage of the announcement here: https://lnkd.in/gprGSC6c  

Siemens Announces Acquisition of Altair for $10.6B. Public market acquisitions can influence valuation multiples for high-growth technology companies in the private markets. An update on recent acquisitions and multiples for our friends building technology companies can be found below.

Inc. Magazine names Friends & Family Capital to its 2024 Founder-Friendly Investors list.   Their rigorous selection process includes direct feedback from portfolio company Founders -- and that matters to us.   We create lasting value as the trusted partner for Founders and CFOs as they scale their finance function.   As experienced operators, we help Founders build teams, scale operations, and raise capital.   Let’s build the future, together. https://lnkd.in/e5SNdkd9

Silver Lake and GIC Announce Acquisition of Zuora for $1.7B. Public market acquisitions can influence valuation multiples for high-growth technology companies in the private markets. An update on recent acquisitions and multiples for our friends building technology companies can be found below.

Key Takeaways from the Q3 2024 Market Conditions Update: · Uplift in deal activity with a long tail of investors · Longer time between rounds with a median of two years · Over a third of new rounds are flat or down rounds · Backlog of almost 400 companies may need capital · Investor demand for strong core business models The Friends & Family Capital Market Conditions Update features metrics that we track internally on companies raising capital at valuations ranging from $1 Billion to $10 Billion. This is one of the assets we review with founders, CEOs, and CFOs in our network as they prepare for their growth rounds. The summary report is available for review below.