ArcTern Ventures’ Post

In the world of venture capital, who you are is who you (typically) invest in. Research reveals that VCs often back startups with founders who mirror their own identity, leading to homogenous portfolios. Yet, diverse teams generate 30% higher returns, underscoring the missed opportunities due to unconscious biases. “The VC world is about deciding who to bet on, so it’s important to be aware of these unconscious biases.” Sifted sat down with Best Nights VC’s Bianca Ambrosini, ADAN's Alhaji Allie Bangura, and Founderland’s Stephanie von Behr to explore how to combat similarity bias in VC. To read the whole article, check the link below in the comments.

"Companies building a more sustainable future are extremely viable investments. A greener solution doesn't necessarily mean the product will be worse or more expensive." Today's Investor Spotlight Interview brings you the perspective of investor Danny Brown, a partner at the venture fund MaC Venture Capital. MaC Venture Capital invests across categories, with climate as one of their focal points. They emphasise tech and tech-enabled products aligned with cultural shifts and social progress. Empower your fundraising strategy as a climate founder by learning what Danny Brown likes to see when MaC Venture Capital makes an investment. We've linked the article in the comments. From all of us at Brighter Future, we thank Danny very much for giving us his views as a socially progressive climate investor, and we wish MaC Venture Capital enormous success in its portfolio of impressive, diverse startups. Our conversation was fascinating and unique, and we hope you enjoy it as much as we did. Thanks for reading. Have a great day, everyone. #investorspotlight #seekthechange #impactinvesting #progressive #climate #entrepreneurship

🌍💡 In 2023, the UK saw a significant shift in venture capital, with climate tech ventures securing 29% of total VC funding, reaching a record $6.2 billion [1]. To gain deeper insights into this burgeoning trend, we had the privilege of speaking with Cameron McLain, Co-Founder and Managing Partner of Giant Ventures on the role of VC-funded purpose-driven businesses in solving the world's most pressing challenges.  Click below to read the insights. #InvestmentTrends #ImpactInvesting #VC #Wealthmanagement #Finance #ClimateTech #BedrockGroup [1] https://lnkd.in/dZEijyyj

Thoughtful reporting, as always, by Erin Griffith at The New York Times. This one sentence blew my mind and illustrates just how far VC has matured and grown, along with the rest of the tech industry: "Last year, venture capital managed $1.1 trillion, up from $297 billion in 2013, according to PitchBook, which tracks start-ups." How VC firms define and brand themselves [in order to compete to back the best tech entrepreneurs, and hence generate financial returns] has certainly morphed in the last two decades. But perhaps it's a natural evolution? Will be interesting to see what happens next.... https://lnkd.in/gZsm5EmS

What next for Venture Capital investors? Octopus Titan VCT reported that the trust’s portfolio value fell by £132 million According to PitchBook data, the number of active investors in European VC has shrunk by over 50% in the past year, while 38% of VCs disappeared from dealmaking in the US in 2023. With fewer investments, some firms no longer need as many employees to source and execute deals. tl;dr - Fundraising has also declined dramatically in the past two years. - In 2023, Sequoia shed one-third of its talent team - Y Combinator let go of 17 employees earlier in the year - Startup accelerator Techstars laid off 20 employees in January - with the VC downturn in 2022, many investors retreated from dealmaking Credit: Leah Hodgson, Senior Financial Writer at PitchBook Q: Any VC investors, Family Offices and HNW private market investors...where are you planning on deploying capital in 2024-2025? Follow Damian Ainsley for more private market news, views and clues. #venturecapital #familyoffice #privatemarkets #markets #investing #alternativeinvestments #hnwi #wealthmanagement

𝗕𝗲𝘆𝗼𝗻𝗱 𝘁𝗵𝗲 𝗕𝘂𝗰𝗸𝘀 #𝟳: 𝗧𝗵𝗲 𝗔𝗿𝘁 𝗼𝗳 𝗥𝗮𝗶𝘀𝗶𝗻𝗴 𝗮 𝗩𝗖 𝗙𝘂𝗻𝗱 – 𝗠𝘂𝗹𝘁𝗶-𝗖𝗹𝗼𝘀𝗲 𝗦𝘁𝗿𝗮𝘁𝗲𝗴𝘆 𝗮𝗻𝗱 𝗜𝗻𝘃𝗲𝘀𝘁𝗼𝗿 𝗘𝗾𝘂𝗮𝗹𝗶𝘇𝗮𝘁𝗶𝗼𝗻 Let's delve into a technical yet utterly fascinating aspect of venture capital: raising the fund itself. Yes, it's about amassing those millions to fuel cool startups. But did you know it's not all gathered in one go? As we gear up for our second close at welovefounders, let’s explore the magic of multiple closes and the dance of investor equalization. 𝗧𝗵𝗲 𝗠𝘂𝗹𝘁𝗶-𝗖𝗹𝗼𝘀𝗲 𝗔𝗽𝗽𝗿𝗼𝗮𝗰𝗵 Raising a VC fund typically unfolds in phases, known as "closes." Here’s how it works: - 𝘍𝘪𝘳𝘴𝘵 𝘊𝘭𝘰𝘴𝘦: This initial phase is the kickoff. It allowed us at welovefounders to start deploying capital as early as September 2023, even while we continue to raise more. Think of it as opening the gates to start the race. - 𝘚𝘶𝘣𝘴𝘦𝘲𝘶𝘦𝘯𝘵 𝘊𝘭𝘰𝘴𝘦𝘴: These are opportunities for additional investors to join the fund over a period, typically 12 to 24 months. It's like keeping the door open just a bit longer to let a few more VIPs into the concert. Why this strategy? Flexibility, my friends! It helps fund managers like us secure capital faster and start making investments sooner rather than waiting to hit the ultimate fund target. 𝗧𝗵𝗲 𝗘𝗾𝘂𝗮𝗹𝗶𝘇𝗮𝘁𝗶𝗼𝗻 𝗘𝗾𝘂𝗮𝘁𝗶𝗼𝗻 What happens when new investors come in after the first close? Suppose you're considering joining our second close (and please do! 😍). We’ve been investing in awesome companies for the last 9 months, and these companies have already started creating significant value (more on that soon). There needs to be an agreement between first and second close investors to ensure all invest on the same basis. Enter the world of equalization: - 𝘊𝘢𝘱𝘪𝘵𝘢𝘭 𝘊𝘢𝘭𝘭 𝘔𝘦𝘤𝘩𝘢𝘯𝘪𝘤𝘴: New investors contribute not only their share of the current investments but also catch up on any investments made between their entry and the first close. This ensures fairness, maintaining equivalent stakes for all investors regardless of their joining time. - 𝘍𝘦𝘦 𝘈𝘥𝘫𝘶𝘴𝘵𝘮𝘦𝘯𝘵𝘴: Similarly, new investors might pay an equalization fee to compensate earlier investors who bore more risk initially. This balancing act ensures that whether you're the first or the last investor on board, everyone enjoys the same risk and reward setup. It's like ensuring every concertgoer gets a front-row experience, even if they arrived a bit late. 𝗪𝗵𝘆 𝗦𝗵𝗼𝘂𝗹𝗱 𝗬𝗼𝘂 𝗖𝗮𝗿𝗲? Understanding these mechanics is crucial, whether you're considering becoming a VC fund investor or you're on the entrepreneurial side, curious about where all this investment money originates. 🚀 Disclaimer du Jour: The insights shared come from my personal adventures in the fundraising jungle. They're meant to guide and inspire, not serve as financial gospel. #equilization #fundraise #venturecapital

💸 With #QVCS, Maddyness UK profiles different #funds to give #founders and #entrepreneurs the information they need to choose the right #investor. Today, we speak to Jeffrey Evans, General Partner at Mantis Venture Capital. “We #invest in a variety of #industries but have chosen to focus on key, emerging industries that establish the infrastructure for the #nextgeneration of #technology.” “Having #people around you that care about your #vision, who have differing #perspectives than you, who have differing #expertises, allows for your #idea to #flourish in the best way possible.” https://lnkd.in/ezgQrT2a

After 3 years in the business of VC - observing all of my brethren and studying their strategies and returns, I find that the two most successful types of venture funds are 1) those who really do live on the inside and have 100% proprietary deal flow (i.e. Sequioa, Benchmark, etc) or 2) those who truly have the ability to work with their portfolio companies to identify and create intrinsic value in pursuit of building real businesses. With case #1, these firms are consistently betting on either proven founders who are knowledgeable of what it takes to get from zero to one - and although this is no guarantee of success, it certainly helps and tips the odds ever so minutely in their favor - or founders so vetted by trusted networks that they too are more likely to be walking outliers/fund returners who are worth the extra effort to teach the art of early stage survival. Again, a type #1 firm can become the house in casino parlance. They should win over time and reps. 99.9% of venture funds are unequivocally not type #1 no matter what they tell you. Many have friends and contacts who can start unicorns but it’s not as consistent as the sheer volume coming from the network and reputational bandwidth of a type #1 firm. Most other VCs get deal flow the same way. The best of the rest stop at nothing to keep their ears to the ground and their networks fresh. It’s hard work. Lots of flights and coffees, and tentacles reaching into universities, incubators, etc. They are the top 5%. The other 95% are mediocre - too untalented, idle, tired or old or lazy, not working their asses off, destined to be tossed into the dust bin of history. The ones who say “forget your losers, spend all energy with your winners!” are the chumps who parrot #1 types thinking they’re like them or will be - they aren’t, and they won’t. This is most venture funds. Middling. They won’t make it past two to three vehicles. If you work very hard as a VC, have good advice to give, spend real time with your companies at critical moments, and lean in - then you can be a type #2 in my opinion. I do also believe it gives an edge to former operators. We get a deluge of great deal flow at Impellent Ventures - but we’re not bullshitting ourselves into believing that we’re sitting in a lab at Stanford 24/7 or in Elon Musk’s living room while he breeds his next thing. We’re not a type #1. We are a type #2, though. Ask our founders. Ask anyone. Put our assertion to the test. Most of our portfolio companies are surviving to thrive or all out crushing it. Luck? Probably partly - but my narcissism/egoism tells me otherwise. We do help in most cases. Zero to one. We live for it. We’re also having fun. And we’re lucky to be in a position to do what we do. We’re grateful. And hungry. And who knows, maybe someday we’ll become a type #1 firm. But one thing I do know - we’ll never relinquish our type #2 reputation and grit - the same quality that exists in our portfolio company founders.

🤖 𝐆𝐏/𝐋𝐏 𝐎𝐧𝐥𝐢𝐧𝐞 𝐏𝐢𝐭𝐜𝐡 𝐄𝐯𝐞𝐧𝐭 𝐓𝐨𝐝𝐚𝐲 𝐚𝐭 𝟑𝐩𝐦 𝐂𝐄𝐓! 📅 Emerging Manager - 19th November, 3 PM CET - Online 👉 𝐋𝐏𝐬: Join directly here https://lu.ma/fpnteit8 👉 𝐆𝐏𝐬: Today’s session is full. To join future events, please schedule a screening meeting with our Head of Community and Events, @Zoe Li https://lnkd.in/euKrD3Xf 🎤 𝐕𝐂 𝐄𝐦𝐞𝐫𝐠𝐢𝐧𝐠 𝐌𝐚𝐧𝐚𝐠𝐞𝐫𝐬 (𝟔 𝐟𝐮𝐧𝐝𝐬 𝐱 𝟓𝐦𝐢𝐧 𝐞𝐚𝐜𝐡): 1️⃣ Navigate Ventures & Ivan Nikkhoo - Fund II, Early Growth - Between the A and Growth Rounds, B2B Enterprise SaaS, Los Angeles, London, Fund Size: $70M ($15M raised) 2️⃣ Argon Ventures & Bob Mason Andy Feinberg - Fund II, Pre-seed, Applied AI, Vertical Applications, North America, Fund Size: 36M (anchored with $13M of LP capital) 3️⃣ Aquillius Ventures & Leah Villegas, PhD, MBA MyPhuong Le, PhD - Fund I, Pre-seed & Seed, Life Sciences, Medtech and Sustainability, US, Fund Size: $50M ($5M raised). Backed by Joseph Park and Bridgette Smith, Richard Lin, Varun Turlapati, Aspina Corp and Microtek Inc. 4️⃣ African Renaissance Ventures & Magdi Amin - Fund I, Seed, Tech Ventures in East Africa, Fund Size: $10M ($5M raised) 5️⃣ Virta Ventures & Russell S. - Fund I, Solo-GP, Early-Stage, Software centric climate tech, North America, Fund Size: $10M ($8M raised), Backed by a Founding Partner of Sequoia’s crossover/public fund, Coolwater Capital, and a number of later stage climate tech GPs. Track record: Current Fund - 1.4x TVPI across 13 investments; Angel Track Record: 6x MOIC and 60% IRR across 51 angel investmentsl; Key exits: Stem (public); Convex (acquired); HyPoint (acquired) 6️⃣ Jambaar Capital & Nadia Seemuth July ANDRAOUS - Fund I, Impact Tech Investing, Africa 𝐀𝐛𝐨𝐮𝐭 𝐭𝐡𝐞 𝐄𝐯𝐞𝐧𝐭: We're excited to introduce the new format of GP LP Pitch Events! This dynamic, 1-hour session takes place 𝐞𝐯𝐞𝐫𝐲 𝐓𝐮𝐞𝐬𝐝𝐚𝐲 𝐚𝐭 𝟑 𝐏𝐌 𝐂𝐄𝐓, designed to help LPs efficiently screen VC funds and maximise their time. 𝐅𝐮𝐧𝐝 𝐏𝐢𝐭𝐜𝐡 (𝟑𝟎𝐦𝐢𝐧): 𝟔 𝐅𝐮𝐧𝐝𝐬 𝐱 𝟓𝐦𝐢𝐧 𝐏𝐢𝐭𝐜𝐡 𝐰𝐢𝐭𝐡 𝐐&𝐀 𝐁𝐫𝐞𝐚𝐤𝐨𝐮𝐭 𝐑𝐨𝐨𝐦 𝐂𝐚𝐬𝐞 𝐒𝐭𝐮𝐝𝐲 (𝟑𝟎𝐦𝐢𝐧): Each fund will showcase a deal in separate Zoom rooms. LPs will be assigned to each room, staying for 5min before rotating to the next room #emergingmanagers #venturecapital #limitedpartners #vcfunds #fundraising #lp #gp

🎆 We’re thrilled to announce the closing of our €170M Fund V to back exceptional early-stage technology founders across Europe! This is our largest fund to date, reinforcing our 17-year track record of backing exceptional early-stage European technology founders. We are the 9th best VC globally (HEC Paris-Dow Jones VC ranking) and remain one of Europe’s premier early-stage venture capital firms. 🎉 💡 There is no such thing as ‘too early’ for us! We’ve been among the first institutional backers of European unicorns like Tink, GetYourGuide, Neo4j, TravelPerk, Boozt and Peakon, and will continue to partner with exceptional founders from inception to Series A with Fund V. We have a broad investment scope with focus areas changing with every fund generation to make informed, swift decisions and to contribute relevant value-add. For Fund V, our focus areas include: productivity/AI, software infrastructure, travel, climate technology, synthetic biology and crypto. With already committed investments in LLM compute infrastructure (France), database software (Poland), software for carbon capture (Germany) and consumer travel (UK), we aim to make 25-30 early-stage investments with Fund V. At Heartcore Capital, we believe venture capital is a deep partnership between founders and the investor. We take great care in being loyal, empathetic and truthful partners to the founders, and helping them grow an initial idea to a generational company.🤝🏻 Lastly, we’d like to thank our existing and new LPs for their support and trust in us despite today’s challenging VC environment. We look forward to supporting exceptional founders across Europe with Fund V in the coming years. cc: Jimmy Fussing Nielsen Christian Jepsen Signe Marie Sveinbjørnsson Max Niederhofer Yacine Ghalim Heidi Haurholm-Rasmussen