Debunking the Fund of Funds Myth: Why LPs Should Re-evaluate Their VC Strategy
Introduction A Fund of Funds (FoF) is an investment vehicle that allocates capital across multiple venture funds, providing investors with diversified exposure to startups while outsourcing fund selection and management. Venture capital (VC) has evolved from a niche industry into a complex asset class with multiple sub-strategies, including seed-stage, early-stage, growth-stage, and multi-stage investments. The […]
Founder Ownership in VC-Backed Companies: How Much Do Founders Retain?
Introduction One of the most critical considerations for startup founders is equity ownership. While founders begin with full ownership of their company, raising venture capital (VC) inevitably leads to dilution. Understanding founder ownership trends, equity distribution, and how ownership changes through funding rounds is essential for any entrepreneur seeking to navigate the venture-backed journey effectively. […]
What Venture Capitalists Look for in a Startup
Venture capitalists (VCs) play a pivotal role in the startup ecosystem, providing not just funding but also mentorship, connections, and strategic guidance. However, securing venture capital is highly competitive. In 2022 alone, VCs invested over $238 billion in startups globally, but only a small fraction of startups successfully raised funding. So, what exactly do venture […]
The Status Quo in Europe: the Gender Divide in Venture Capital Funding
A recent report by Sifted initiates an insightful exploration into the landscape of gender diversity within Europe’s startup ecosystem, focusing on the allocation of venture capital (VC) funding into female-founded startups across different regions. This comprehensive analysis sheds light on both progress made and persisting challenges in achieving gender parity within the realm of entrepreneurial […]
Websites to Build Your Company without VC or Investors Backup
Note: This article is inspired by Chris Federspiel’s original LinkedIn post, “Founding a business without VC”. Thank you, Chris, for your candid reflections and unwavering commitment to empowering entrepreneurs. Hey there, fellow dreamers and future titans of industry! Have you ever found yourself bursting with innovative ideas but held back by the seemingly insurmountable barrier […]
Pitch the way VCs think. (If you want that)
This article is inspired by “Pitch the Way VCs Think: Presenting with Emotion” by Vinod Khosla, published on May 21, 2019, where Khosla shares valuable insights on the investor perspective and offers advice to entrepreneurs on how to effectively present to potential investors. As an entrepreneur, you’ve nurtured your idea from a spark of inspiration […]
