The Holiday Fundraising Trap – What Founders Should Do Now
Thinking about launching your fundraise now? November & December are the worst months to start, with just 6.4% of deals closing in January. Here's what you should do.
Latest
Time Is Killing Venture Returns
As an investment vehicle for LPs, venture capital is broken. As a founder, you need to understand this dynamic. Choose your investors wisely.
Why Longer Fundraising Cycles Are Good for Startups
It's taking longer to raise a round of venture funding. This is a healthy change. Let me explain why.
The Rapid Rise of Zombie VCs
Zombie VCs are surging: 25% fewer active investors in 2024 vs 2023, and 50% down from 2021's peak. These funds can't make new investments, but their short-term focus can still cause major problems for founders in their portfolio.
Getting from Series A to Series B is a Tall Task
This chart tells an important story for early-stage founders. Only 10% of startups that raised a Series A in 2022 have raised a Series B two years later. That drop of nearly 2/3 from 2018 represents a brutal cliff for founders.
Unicorn bubbles
This chart is a perfect illustration of the pain still to come in venture. The explosion of ‘unicorns’ in 2021 and 2022 is the venture bubble in action. It will take years to unwind, and venture returns will continue to suffer along the way.
Your Mushroom Farm is Not a Tech Company
Most businesses aren't a good fit for venture capital. Picking the right sources of funding is one of the most important decisions you'll make. When you're pitching your mushroom farming startup as a tech company, you're on a path that's
Census Data Highlights Surge in New Startups
In the coming wave of AI-related disruption, we can enable entrepreneurship and unleash the job-creating forces behind it. We need to learn from the past to set the right policies for the future.
Valuation Makes The Headlines – Liquidation Preferences Allocate The Cash
Why do some startups, despite raising over $100 million and achieving unicorn status, end up with little to show for it? The startup press and many founders are obsessed with valuation. But that can be a trap. During a liquidation event, the most important factor is how the cash is
Four Steps to Navigating the Startup Team Skills Gap
Jim Collins, the author of Good to Great, stated that the key to building great companies is getting the right people on the bus. This is a critical concept for successful founders. You need the right people on your bus to find and scale product-market fit. The wrong people slow
🪤 Avoid the SAFE Note Dilution Trap
SAFEs are fast and inexpensive to use. That’s a feature and a bug. Too many founders overuse SAFEs and end up in a dilution trap. * Carta recently released its Q1 2024 State of Pre-seed report. It's the perfect opportunity to review the current state of SAFE notes
How To Steer Your Startup Through The VC Shakeout
Are your current venture investors acting strange? Did they seem more nervous and jumpy at your last board meeting? Are you concerned that you’re suddenly not all on the same page? Venture funds are under a lot of pressure right now. This has implications for your startup as you
Leadership
Fear, Uncertainty, and Doubt Can Be Founder Superpowers
Fear. Uncertainty. Doubt. As a founder, it’s easy to believe these feelings are weaknesses. They lay the foundation of imposter syndrome. But when properly channeled, fear, uncertainty, and doubt are founder superpowers. They help you find the path to profitable, scalable growth. They allow you to stay in control
Growth
Embrace the MVP and Stop Trying To Boil The Ocean
You’re trying to boil the ocean. You had a simple idea for a startup. One problem to solve. A solution to a common pain point that would attract customers and keep them coming back. You were targeting a small market at first. But that’s ok. You had a
Funding
Are You Growing Fast Enough?
2023 is in the books. Your 2024 budget is sitting in front of you. The start of a new year is the perfect time to reassess whether your startup is still on the venture path. Here is a simple question: Is your revenue growth strong enough to attract a round
Leadership
Don't Believe The Hype
The Scooter company Bird filed for bankruptcy yesterday. Another high-flying unicorn falls to earth. This is an important reminder that you can’t believe the hype in the startup press.
Funding
Down Rounds and Recaps Part 4 – Navigating the Startup Recap
Welcome to part four of our series on down rounds and recaps: * Part 1: A Guide to Down Rounds and Recaps * Part 2: Managing Your Key Stakeholders * Part 3: A Deep Dive Into Down Rounds * Part 4: Navigating the Startup Recap <- You are here Let’s get on
Funding
Down Rounds and Recaps Part 3 – A Deep Dive into Down Rounds
Welcome to part three of our series on down rounds and recaps: * Part 1: A Guide to Down Rounds and Recaps * Part 2: Managing Your Key Stakeholders * Part 3: A Deep Dive Into Down Rounds <- You are here * Part 4: Navigating the Startup Recap Let’s get into
Funding
Down Rounds and Recaps Part 2 – Managing Your Key Stakeholders
Welcome to part two of our series on down rounds and recaps: * Part 1: A Guide to Down Rounds and Recaps * Part 2: Managing Your Key Stakeholders <- You are here * Part 3: A Deep Dive Into Down Rounds * Part 4: Navigating the Startup Recap Let’s get into
Funding
Down Rounds and Recaps Part 1 — What, Why, When
Welcome to part one of our series on down rounds and recaps: * Part 1: A Guide to Down Rounds and Recaps <- You are here * Part 2: Managing Your Key Stakeholders * Part 3: A Deep Dive Into Down Rounds * Part 4: Navigating the Startup Recap Let’s get into
News and Analysis
Staying True to Your Values: Learning from Substack's Crowdfunding Decision
Exploring the consequences of prioritizing short-term gains over long-term trust and transparency in the startup world, as illustrated by Substack's recent fundraising approach.
News and Analysis
From DTC to AI: Lessons in Navigating Business Model Shifts
The explosion of AI over the past six months is just the start. This innovation will shake the very foundations of many business models in the coming decade.
News and Analysis
The Ripple Effects of SVB's Failure: Navigating the New Normal for Startup Funding
Stay in control of your startup. Stay focused on investing in profitable, scalable growth. Extend your runway as much as possible, staying default investable if possible, but always with a path to default alive.
Funding
Mass Extinction Event for Startups? Are You Default Investable or Default Alive?
For many startups, the next 12 months will be challenging. Default Investable or Default Alive. Know which path you are on. A few weeks ago, Tom Loverro of the venture fund IVP tweeted that we are on the verge of a mass extinction event for startups. Carta shared data showing