Pankaj Agarwal’s Post

The Venture Capital landscape appears to be showing signs of recovery. According to Carta’s latest “State of Private Markets Report” for Q2 2024, there are promising indicators that suggest a resurgence in activity and confidence among investors. One of the most encouraging trends highlighted in the report is the uptick in funding rounds in the U.S. In Q2, companies on Carta completed 1,287 new funding rounds, marking a 4% increase from Q1. This momentum is complemented by a significant 12% rise in total VC investments, which reached $20.9 billion. These figures are expected to rise further as more data from Q2 is finalized, indicating that the market may be regaining its strength, underscoring a resurgence of investor confidence in private markets. Another positive sign is the decline in the rate of the down rounds across all stages which dropped from 24.2% to 25% Q1 to Q2. This six-quarter low suggests that startups are achieving favourable valuations reflecting a healthier investment environment. We also see decreasing bridge rounds from series A through C, meaning companies are securing sufficient funding without needing interim financing. The New York Metro Area alone secured a $3.6B influx of investments in Q2, which highlights the area and its growing prominence as a startup hub. While challenges remain, the report is optimistic for the future for U.S. based startups. With increased funding activity and improved valuation stability, the private markets are showing signs of recovery and growth. As more data and trends continue, the full picture will become clearer and could lead to a more robust and dynamic ecosystem in the coming months. For more information, read the full report here:  https://lnkd.in/gkezHNaW #GOVentures #VC #venturecapital #investments #startup #carta

𝗨𝗻𝗱𝗲𝗿𝘀𝘁𝗮𝗻𝗱𝗶𝗻𝗴 𝗜𝗻𝘃𝗲𝘀𝘁𝗺𝗲𝗻𝘁 𝗡𝘂𝗺𝗯𝗲𝗿𝘀: 𝗪𝗵𝗮𝘁 𝗜𝗻𝘃𝗲𝘀𝘁𝗼𝗿𝘀 𝗡𝗲𝗲𝗱 𝘁𝗼 𝗞𝗻𝗼𝘄 Investing in startups involves understanding key metrics to assess potential and risks. Here’s a breakdown of the crucial 𝗻𝘂𝗺𝗯𝗲𝗿𝘀 𝗶𝗻𝘃𝗲𝘀𝘁𝗼𝗿𝘀 𝘀𝗵𝗼𝘂𝗹𝗱 𝗳𝗼𝗰𝘂𝘀 𝗼𝗻: 𝟭. 𝗖𝘂𝗿𝗿𝗲𝗻𝘁 𝗩𝗮𝗹𝘂𝗮𝘁𝗶𝗼𝗻 Indicates the company's estimated worth, helping investors gauge its market position and growth potential. This comparison with industry standards can reveal if the startup is overvalued or undervalued. 𝟮. 𝗔𝗺𝗼𝘂𝗻𝘁 𝗥𝗮𝗶𝘀𝗲𝗱 𝗦𝗼 𝗙𝗮𝗿 Shows the total capital secured by the founders and from whom, ensuring alignment with the company's vision and values. Well-funded startups with reputable investors often indicate stability and growth potential, reducing risks for new investors. 𝟯. 𝗖𝗮𝗽 𝗧𝗮𝗯𝗹𝗲 𝗡𝘂𝗺𝗯𝗲𝗿𝘀 Outlines ownership percentages within the company. A healthy cap table ensures founders retain enough equity for future funding and avoids issues like dead equity or excessive early investor control, which can affect future financing. 𝗗𝗲𝗮𝗹 𝗡𝘂𝗺𝗯𝗲𝗿𝘀 𝟭. 𝗣𝗿𝗲/𝗣𝗼𝘀𝘁 𝗩𝗮𝗹𝘂𝗮𝘁𝗶𝗼𝗻 Pre-money valuation is the company’s worth before new investments; post-money includes the current funding round. This helps investors understand their potential ownership stake and evaluate deal terms. 𝟮. 𝗥𝗮𝗶𝘀𝗶𝗻𝗴 𝗔𝗺𝗼𝘂𝗻𝘁 The total sum the company aims to raise now, indicating lead investors and their contributions. This signals confidence in the business and helps investors decide their potential investment allocation. 𝟯. 𝗖𝗮𝗽 + 𝗗𝗶𝘀𝗰𝗼𝘂𝗻𝘁 For early-stage investments, SAFEs might be used. The "cap" sets a maximum valuation for future equity, and the "discount" provides a lower share price in future rounds, incentivizing early investment for potentially higher returns. Analyzing these numbers helps investors make informed decisions aligned with their strategies and risk tolerance, evaluating potential returns and the startup’s growth trajectory. 𝗝𝗼𝗶𝗻 𝗼𝘂𝗿 𝗻𝗲𝘁𝘄𝗼𝗿𝗸 𝘁𝗼 𝗮𝗰𝗰𝗲𝘀𝘀 𝘁𝗵𝗼𝗿𝗼𝘂𝗴𝗵𝗹𝘆 𝘃𝗲𝘁𝘁𝗲𝗱 𝗶𝗻𝘃𝗲𝘀𝘁𝗺𝗲𝗻𝘁 𝗼𝗽𝗽𝗼𝗿𝘁𝘂𝗻𝗶𝘁𝗶𝗲𝘀 𝗮𝗻𝗱 𝗯𝗲𝗰𝗼𝗺𝗲 𝗽𝗮𝗿𝘁 𝗼𝗳 𝗮𝗻 𝗲𝘅𝘁𝗲𝗻𝘀𝗶𝘃𝗲 𝗰𝗼𝗺𝗺𝘂𝗻𝗶𝘁𝘆 𝗼𝗳 𝗲𝘅𝗽𝗲𝗿𝗶𝗲𝗻𝗰𝗲𝗱 𝗶𝗻𝘃𝗲𝘀𝘁𝗼𝗿𝘀. 𝗧𝗼 𝗯𝗲𝗰𝗼𝗺𝗲 𝗮𝗻 𝗜𝗻𝘃𝗲𝘀𝘁𝗼𝗿: https://lnkd.in/giZsrVju #InvestmentTips #StartupInvesting #AngelInvestors #InvestmentMetrics #StartupGrowth #CapTable #Valuation #SAFEAgreement #RaisingCapital #InvestorNetwork #VentureCapital #EarlyStageInvesting #InvestmentOpportunities #FinancialGrowth #BusinessInvesting #InvestorCommunity #InvestmentStrategy #StartupSuccess #TechInvesting #StartupInvesting #StartupSuccess #InvestmentStrategy #InvestmentOpportunities #TechInvesting #InvestorInsights #Funding #InvestorCommunity #Founders #Entrepreneurs #StartupsGuide #InvestorsNetwork #StartupEvaluation #InvestorsGuide

During #PrivateEquityandVentureCapital module taught by Florin V. & Eli Talmor at London Business School, I came across 2 terms which a new investor generally doesn't encounter in #startup #investing. These are 𝐃𝐫𝐲 𝐏𝐨𝐰𝐝𝐞𝐫 & 𝐒𝐡𝐚𝐝𝐨𝐰 𝐂𝐚𝐩𝐢𝐭𝐚𝐥. 𝐃𝐑𝐘 𝐏𝐎𝐖𝐃𝐄𝐑 𝐃𝐞𝐟𝐢𝐧𝐢𝐭𝐢𝐨𝐧: It represents cash reserves that VC firms have committed from their limited partners (LPs) but not yet invested in startups. 𝐒𝐢𝐠𝐧𝐢𝐟𝐢𝐜𝐚𝐧𝐜𝐞: • 𝑆𝑡𝑟𝑎𝑡𝑒𝑔𝑖𝑐 𝐹𝑙𝑒𝑥𝑖𝑏𝑖𝑙𝑖𝑡𝑦: Having dry powder allows VC firms to be flexible & opportunistic. They can invest when market conditions are favorable or when promising startups emerge. • 𝑀𝑎𝑟𝑘𝑒𝑡 𝑇𝑖𝑚𝑖𝑛𝑔: VC firms strategically time their investments to maximize returns. Holding dry powder enables them to invest during downturns or when valuations are attractive. • 𝑃𝑜𝑟𝑡𝑓𝑜𝑙𝑖𝑜 𝑀𝑎𝑛𝑎𝑔𝑒𝑚𝑒𝑛𝑡: Dry powder is crucial for portfolio diversification & managing risk. 𝐔𝐬𝐞𝐬: 𝑁𝑒𝑤 𝐼𝑛𝑣𝑒𝑠𝑡𝑚𝑒𝑛𝑡𝑠, 𝐹𝑜𝑙𝑙𝑜𝑤-𝑜𝑛 𝑅𝑜𝑢𝑛𝑑𝑠, 𝐴𝑐𝑞𝑢𝑖𝑠𝑖𝑡𝑖𝑜𝑛𝑠, and 𝑅𝑒𝑠𝑐𝑢𝑖𝑛𝑔 𝐷𝑖𝑠𝑡𝑟𝑒𝑠𝑠𝑒𝑑 𝐶𝑜𝑚𝑝𝑎𝑛𝑖𝑒𝑠. 𝐂𝐡𝐚𝐥𝐥𝐞𝐧𝐠𝐞𝐬: • 𝑇𝑖𝑚𝑖𝑛𝑔: VC firms must balance deploying dry powder efficiently without rushing into suboptimal deals. • 𝐼𝑛𝑓𝑙𝑎𝑡𝑖𝑜𝑛: Holding dry powder for too long risks losing value due to inflation. 𝐄𝐱𝐚𝐦𝐩𝐥𝐞𝐬: Suppose a VC firm has $100m committed by LPs. If they've invested $60m so far, the remaining $40m is dry powder. 𝐒𝐇𝐀𝐃𝐎𝐖 𝐂𝐀𝐏𝐈𝐓𝐀𝐋 𝐃𝐞𝐟𝐢𝐧𝐢𝐭𝐢𝐨𝐧: Shadow capital refers to nontraditional investments in startups beyond typical VC sources, such as corporates, PE funds, MFs, & other non-VC investors. 𝐄𝐱𝐚𝐦𝐩𝐥𝐞𝐬: • 𝐹𝑎𝑚𝑖𝑙𝑦 𝑂𝑓𝑓𝑖𝑐𝑒𝑠, 𝐿𝑃 𝑎𝑡 𝑉𝐶 𝐹𝑢𝑛𝑑𝑠 & 𝐻𝑁𝑊𝐼𝑠: Wealthy individuals invest directly in startups, contribute to shadow capital. • 𝐶𝑜𝑟𝑝𝑜𝑟𝑎𝑡𝑒 𝑉𝑒𝑛𝑡𝑢𝑟𝑒 𝐶𝑎𝑝𝑖𝑡𝑎𝑙: Corporates directly invest in startups or collaborate with traditional VCs. • 𝑃𝑟𝑖𝑣𝑎𝑡𝑒 𝐸𝑞𝑢𝑖𝑡𝑦 𝐹𝑢𝑛𝑑𝑠: PE funds, which traditionally focus on larger, established firms, now show interest in startups. • 𝑀𝐹𝑠 & 𝐻𝑒𝑑𝑔𝑒 𝐹𝑢𝑛𝑑𝑠: They allocate capital to startups, often alongside traditional VCs. 𝐈𝐦𝐩𝐚𝐜𝐭: • 𝐸𝑥𝑡𝑒𝑛𝑑𝑒𝑑 𝑅𝑢𝑛𝑤𝑎𝑦: Shadow capital allows private companies to remain private for longer, delaying need for IPO or acquisition. • 𝑉𝑎𝑙𝑢𝑎𝑡𝑖𝑜𝑛 𝐼𝑛𝑓𝑙𝑢𝑒𝑛𝑐𝑒: Shadow capital affects startup valuations & deal terms. • 𝐷𝑖𝑣𝑒𝑟𝑠𝑖𝑓𝑖𝑐𝑎𝑡𝑖𝑜𝑛: Startups benefit from a broader investor base beyond traditional VCs. 𝐂𝐡𝐚𝐥𝐥𝐞𝐧𝐠𝐞𝐬: • 𝐴𝑙𝑖𝑔𝑛𝑚𝑒𝑛𝑡: Balancing between traditional VCs & shadow capital investors can be complex. • 𝐷𝑖𝑙𝑢𝑡𝑖𝑜𝑛: Shadow capital can dilute existing shareholders' ownership. 𝐎𝐯𝐞𝐫𝐚𝐥𝐥 𝐒𝐢𝐠𝐧𝐢𝐟𝐢𝐜𝐚𝐧𝐜𝐞: Shadow capital plays a crucial role in shaping the venture capital landscape, impacting both startups & traditional VC firms. Let me know your thoughts! VentureVista Investments

#JPMorgan: #Collaboration #Helps #Startups #Scale the #InnovationEconomy #markets ----- https://lnkd.in/gFz9j-Tt ------ For smaller firms and startups seeking capital — the lifeblood of growth — the last few months of 2024 are holding some promise after a long drought of high interest rates and stubborn inflation. The IPO market has rebounded, up 30% for the first half of 2024 year over year. Venture capital has also seen a 20% uptick from last year. Deal sizes have increased across sectors as diverse as artificial intelligence, healthcare technology and climate technology. “We’re starting to see more and renewed interest from crossover and mutual fund investors in later stage rounds … and there’s a record amount of dry powder for venture capital and growth equity firms that have been kind of sitting on the sidelines,” Melissa Smith, co-head of innovation economy and head of specialized industries for J.P. Morgan commercial banking, told PYMNTS. Looking out to the end of the year, based on public filings and J.P. Morgan’s own pipeline visibility, the current year could log $30 billion in terms of IPO volumes, above $19 billion in volume seen last year, Smith said. Beyond those optimistic developments, like just about everyone else, she noted, founders are “trying to figure out where things are headed from a broader macroeconomic perspective.” The prevailing wisdom is that the Federal Reserve will start lowering rates at some point during the third quarter of 2024. Against that backdrop, the U.S. economy seems like it’s moving toward a soft landing. Serving and Shaping the Ecosystem But founders must be ready for all sorts of permutations of reality and in the meantime are steering their firms through growth, investment and seed rounds, using a combination of funding and partnerships to bring their innovations to market. Preserving cash flow is imperative, and banking partners can help provide stability and visibility into day-to-day cash management, Smith said. The investment community is a tight-knit one, Smith said, adding that “founders and partners and firms are clearly constantly talking to each other, sharing ideas, seeking advice and forming powerful connections.” At the center of it all lies J.P. Morgan, with a full suite of solutions and expertise to help those companies connect and innovate collectively. Smith noted that “we want to, and can, holistically serve the ecosystem” across portfolio companies, founders and VC partners with payments and liquidity solutions and financing alternatives. By way of example, she offered up J.P. Morgan’s continued journey with Closinglock, which provides wire fraud prevention and FinTech solutions to the real estate industry.

New report confirms Europe’s tech investment doldrums, but there are signs of life #startup  #fundraising  #angelinvestor  #investments  #VentureCapital  #vc #Entrepreneurship  #venturefunding  #investing #TechNews #Innovation #technology  https://lnkd.in/eTtvwMJq

🔍 𝐈𝐧𝐯𝐞𝐬𝐭𝐨𝐫𝐬: 𝐇𝐨𝐰 𝐄𝐪𝐮𝐢𝐭𝐲 𝐑𝐨𝐥𝐥-𝐔𝐩𝐬 𝐎𝐩𝐞𝐧 𝐁𝐫𝐨𝐚𝐝𝐞𝐫 𝐎𝐩𝐩𝐨𝐫𝐭𝐮𝐧𝐢𝐭𝐢𝐞𝐬 🌐 What if we revealed a new investment strategy that could level the playing field for investors? 🌍 From an investor’s perspective, Equity Roll-Ups open the door to broader investment opportunities. Many startups have a high minimum investment threshold, making it difficult for investors with smaller cheques to participate. With an ERU, smaller checks can be pooled together, allowing investors to gain exposure to high-growth startups without needing to meet the minimum ticket size individually. 🏦 𝗪𝗵𝘆 𝗘𝗾𝘂𝗶𝘁𝘆 𝗥𝗼𝗹𝗹-𝗨𝗽𝘀 𝗪𝗼𝗿𝗸 𝗳𝗼𝗿 𝗜𝗻𝘃𝗲𝘀𝘁𝗼𝗿𝘀: 🌱 𝗣𝗼𝗿𝘁𝗳𝗼𝗹𝗶𝗼 𝗗𝗶𝘃𝗲𝗿𝘀𝗶𝗳𝗶𝗰𝗮𝘁𝗶𝗼𝗻: Investors can participate in multiple startups or rounds without needing to commit large sums to each. 📄 𝗥𝗲𝗱𝘂𝗰𝗲𝗱 𝗔𝗱𝗺𝗶𝗻𝗶𝘀𝘁𝗿𝗮𝘁𝗶𝘃𝗲 𝗖𝗼𝗺𝗽𝗹𝗲𝘅𝗶𝘁𝘆: Holding shares through an Equity Roll-Up means less paperwork and a simpler engagement process for investors. 📊 𝗥𝗶𝘀𝗸 𝗠𝗶𝘁𝗶𝗴𝗮𝘁𝗶𝗼𝗻: With smaller investments spread across multiple deals, investors can diversify risk across a portfolio of startups. Equity Roll-Ups offer investors flexibility, access to broader opportunities, and streamlined engagement with startups. 👉🏻 𝗥𝗲𝗮𝐝𝐲 𝐭𝐨 𝐬𝐢𝐦𝐩𝐥𝐢𝐟𝐲 𝐲𝐨𝐮𝐫 𝐜𝐚𝐩𝐢𝐭𝐚𝐥-𝐫𝐚𝐢𝐬𝐢𝐧𝐠 𝐩𝐫𝐨𝐜𝐞𝐬𝐬? 🧐 Learn more about how Equity Roll-Ups (ERUs) can help by reading our full article here: https://lnkd.in/gtHUzQR4 👉🏻 𝗝𝘂𝗺𝗽 𝗼𝗻 𝘁𝗵𝗲 𝗽𝗹𝗮𝘁𝗳𝗼𝗿𝗺 𝘁𝗼 𝗴𝗲𝘁 𝘀𝘁𝗮𝗿𝘁𝗲𝗱: https://lnkd.in/dpGcjPmi 

Amsterdam’s Vortex Capital Partners recently raised a new tech fund to back high-growth potential SMEs. 💸 €145M 💡 Investing in companies that are growing and have a profitable core business, especially those using technology in unique ways. It mainly targets companies making €3M to around €30M annually with the potential to grow nationally and internationally. 🌍 #Netherlands, #Belgium, and other European countries. 📈 Founded in 2012, the firm has invested in 24 companies with over 55 follow-on investments. Current PortCo's include Studytube, POM, Kitry, Horizon Group, MyBit Group, among others. 💭 “This strengthens our position as an active investor in the software and technology sectors, where we see many opportunities and consolidation opportunities. We look forward to also working with ambitious entrepreneurs and management teams through this fund to contribute to building strong and healthy companies.” - Evert Jan de Groot, Managing Partner at Vortex Capital Partners 🗞️ Vishal Singh Silicon Canals - European Technology News https://lnkd.in/enrYe4td 👏 For the #AudaciousInvestors unleashing innovation and empowering tomorrow🚀 Evert I Joost I Kelsey I Agnes I Dalip I Jorre I Deron I Jeroen I Robert I Rick I Team Vortex … #venturecapital #vc #funds #startups #entrepreneurs #funding #tech #entrepreneurship #technology #innovation #Amsterdam #Netherlands

Do you want to invest in “SAFE”? What does it mean to invest in “SAFE”? Is it to invest safely or invest in a specific kind of instrument? “SAFE” stands for “Simple Agreement for Future Equity”. It is one of the preferred investing instruments in the startup world. It is an agreement between an investor and a company where the investor invests the money now, and they get the right to convert the amount into equity in a future equity round. This arrangement enables startups to raise capital when the value of the company is not certain. For instance, an investor enters into a SAFE agreement to invest $50,000 in a startup company with a valuation cap of $2 million. At the time of investment under the SAFE agreement, the investor is not immediately a shareholder, but they can convert the SAFE into equity at the time of a future equity financing round. These instruments are mostly used as an alternative to convertible notes. The main difference between SAFE and convertible notes is that SAFE does not have an interest rate or a maturity date, and interest does not accrue with a SAFE. In general terms, a SAFE imposes no obligation on the founders to repay the investment if the SAFE never converts into equity. Valuation Cap in SAFE SAFEs are also issued with a valuation cap. The valuation Cap in a SAFE is the maximum valuation at which the SAFE investor's money converts to equity, irrespective of the actual valuation of the company at the equity financing round. It is the benefit that SAFE investors will receive because they are taking a risk by investing in a new startup. For example, if an investor invests in SAFE with a valuation cap of $20 million during the early stage of a startup, and later, as the startup grows, new investors invest in the company at a $40 million valuation, SAFE investors will effectively be paying half the price compared to new investors, since the valuation cap was initially agreed upon at $20 million. As a result, they can acquire twice as many shares as new investors. In conclusion, investing in a "SAFE" offers a unique and flexible opportunity for early investors to support startups while minimizing the risks associated with uncertain valuations. By investing under a Simple Agreement for Future Equity, investors secure a potential stake in a company's future without immediate equity ownership, benefiting from terms like valuation caps that reward early investment risks. As the nature of startups continues to evolve, SAFE provides an innovative new financial tool to match the objectives of founders and early investors, simplifying the investment process and fostering growth in the early stages of a company’s development. #StartupFunding #InnovationFinance #VentureCapital

Unlock Exponential Growth: Invest in Startups with Niraga Capital Are you seeking investment opportunities with high potential returns and the chance to be part of the next big thing? Consider investing in startups with Niraga Capital, where innovation meets exponential growth. Here’s why startup investments are a game-changer: High Potential Returns 🚀 Startups, particularly in the tech sector, offer unparalleled growth opportunities. Successful startups can provide returns far exceeding traditional real estate investments, turning your early-stage investment into substantial capital gains. Diversification Opportunities 🌍 Invest across various industries and geographies. Our startup investment options allow you to diversify your portfolio beyond the confines of local real estate markets, reducing risk and enhancing returns. Support Innovation and Impact 💡 Invest in the future. You support groundbreaking ideas and technologies that drive societal progress by funding startups. Many startups focus on solving critical social, environmental, and economic issues, allowing your investments to make a positive impact. Liquidity Options 💰 Enjoy earlier liquidity through secondary markets, acquisitions, and IPOs. Unlike the long-term commitments often required in real estate, startup investments offer more flexible exit strategies. Attractive Tax Benefits 💸 Benefit from numerous tax incentives for startup investments, including deductions, credits, and favorable capital gains tax treatments. Enhance your overall returns with these strategic tax advantages. Agility and Speed ⚡ Capitalize on a dynamic ecosystem. The startup environment moves quickly, offering opportunities to seize emerging trends faster than traditional real estate markets. Ready to invest in the next big thing? Connect with us at Niraga Capital and start your journey toward high-growth opportunities today! #StartupInvesting #Innovation #HighReturns #InvestmentOpportunities #Diversification #TaxBenefits #FutureGrowth

🚀 Mid-2024 Venture Investment Update 🚀 According to MAGNiTT's flagship report: 💰Total VC investments: $3.5BN across 618 deals. 🗓️ YoY (Year-over-Year) decline: 34%, mirroring global trends. 📈 Trend: Shift towards early-stage investments as mega-rounds slow down. In MENA, VC activity shows sustained growth at a moderate pace. Early-stage investments are thriving, with $1M-$5M rounds tripling from 15% in 2020 to 45% in H1 2024. Looking ahead, international interest remains strong, driven by government support and new fund announcements, poised to fuel growth into H2 2024 and early 2025. Credit: Philip Bahoshy, CEO-Magnitt ♻️Repost to inspire your Startup Network💡 LinkedIn: Dr. Michael Tadros Agile | PMP® | cPgM® | BSc. | MSc. | PhD. #startup #startups #michael_theprofessor #startupfunding #success #research #partnerships #fundraising #investing #entrepreneurlife #innovation #founders #projectmanagement #smallbusiness #entrepreneurship #entrepreneur #entrepreneurs #venturecapital #investment #venturecapital #siliconvalley #technology