Yotam Rosenbaum’s Post

In Q2 of ‘23, only 12 VC-backed startups in the US became unicorns. ⏺ The unicorn startup bubble is over. This is good news for smart investors. Let’s face it, many startups were overvalued and attracted excessive investments based on hype rather than sound fundamentals. With the bubble deflating, the focus is shifting toward more realistic valuations and solid business models. This provides better opportunities for investors seeking genuine growth prospects and sustainable returns. The unicorn bubble bursting is a great lesson for investors to: ✅ Avoid FOMO and speculative hype ✅ Diversify your portfolio to manage risk ✅ Conduct thorough research and due diligence ✅ Look for startups with a clear path to profitability ✅ Focus on well-defined strategies and sustainable growth Down rounds, bridge rounds, lower valuations... It’s the end of easy money. What are your thoughts on the investor landscape this year? #investors #venturecapital #founders #startups #fundraising Always sharing tips and strategies for emerging investors and VCs. Follow to keep seeing content like this ➕

As the IPO market continues to face challenges, Norwest Partner Lisa Wu shared insights yesterday at Fortune #BrainstormTech with Jessica Mathews on market conditions and the silver linings for startups.    Her and the fellow panelists’ take? A more realistic approach to startup growth can lead to a healthier tech ecosystem, but there’s still a hangover from the highs of 2021.    Read on to learn more about the potential uptick of M&A activity and what opportunities lie ahead for startups: https://lnkd.in/eeQaaf3H 

At nearly every phase of the startup market, venture round sizes got bigger in Q3. The median size of primary rounds on Carta increased at every stage from Series A to Series E, with the biggest leap occurring at Series A: There, the median primary round size hit $9.6 million, a 25% increase over Q2. But this isn't the full story. While valuations were trending up in Q3, the number of deals taking place was still trending down. The total number of new primary funding rounds on Carta sank to a five-year low in Q3. VCs have grown choosier about which companies to back. But when they find the right target, investors are still willing to spend big. “From 2020 to early 2022, there was a tremendous amount of top-of-market investing. Valuations were popping off the chart. Then, a downturn cycle kicked in. Now, I think there’s a lot more focus on profitability or path to profitability, a lot more focus on rigor and discipline.” -Ron Heinz, co-founder and GP at both Signal Peak Ventures and Oquirrh Ventures Take a deeper dive into the data here: https://lnkd.in/g7n8dXrz We're also sharing charts that show startup fundraising by stage at the 25th, 50th, 75th, and 90th percentiles. #vcfunding #vcdata #valuations

This term might sound fancy, but it's all about keeping things simple!  A SAFE note, which stands for *Simple Agreement for Future Equity*, is basically an IOU for investors in the startup world. Imagine you're an early-stage startup with a brilliant idea, but haven't quite figured out your official valuation yet. An investor sees your potential and wants to jump on board, but doesn't want to pin down a price just yet. That's where SAFE notes come in! The investor gives you money upfront, and in exchange, they get the promise of shares in your company at a discounted rate or a valuation cap (whichever is better for them) when you have a bigger financing round down the line. Think of it as a handshake deal for future ownership, with some built-in flexibility for both sides. Stay tuned for more VC Terms Decoded where we'll break down valuation caps, discount rates, and why they matter! Want to stay in the FSF loop?https://shorturl.at/fnrsx  #VentureCapital101 #Startups #FinancialLiteracy

🌟 Riding the Startup Wave: Investors Strike Gold in New-Age IPO Boom! 🚀 We’re witnessing a revolution fueled by innovation and technology ideation. New-age startups like ixigo, Go Digit, and Awfis are not just making headlines—they're setting new benchmarks in the public markets. Venture capitalists such as Peak XV Partners, Elevation Capital, ChrysCapital, A91 Partners, and TVS Capital are striking gold, validating their early confidence in these visionary startups. This is reshaping investment paradigms and highlighting the limitless potential of the startup boom. This wave of IPOs is creating golden opportunities for investors, offering a chance to capitalize on the growth and impact of pioneering startups with successful exits. The birth of unicorns and industry disruptors signifies not just entrepreneurial success but also the vast, untapped potential for substantial investor gains. Cheers to the trailblazers of the startup revolution and the investors who believed in the power of big dreams and innovative ideas! 🚀🌟 #StartupEcosystem #Innovation #TechIdeation #IPOBoom #VentureCapital #InvestmentSuccess #GoldenOpportunities

New Post: VCs anticipate more exits in 2024 - It’s been a rough few years for startups looking to exit, but companies, especially late-stage startups, can’t stay private forever. When the exit market didn’t open back up in 2023, as many hoped after a very quiet 2022, investors and founders alike decided that 2024 was the year that the exit market would defrost. Now that 2024 is here, do they still think that? TechCrunch+ recently surveyed more than 40 investors to get their predictions on a variety of topics heading into 2024, including what they thought the state of the exit market will look like. The vast majority of investors responded that they think exit volume will be higher in 2024 than in 2023 and 2022, but there wasn’t consensus on what those exits would look like. Some investors are more optimistic about M&A in 2024, while others think we will see a rebound in the IPO market. While most respondents answered this survey before the Adobe-Figma deal dissolved, many VCs acknowledged that startups looking to pursue that route this year will have to be conscious of the current regulatory environment anyway. M&A Don Butler, managing director of Thomvest Ventures, said that he thinks the pace of M&A will increase this year. The emphasis on better business fundamentals and economics in the startup realm over the past few years has resulted in a number of startups that have found the sweet spot of reporting solid growth trajectories on top of solid business economics. #VCs #anticipate #exitshttps://lnkd.in/dwrk6aQC

Investing in early-stage startups is risky. Which is why angels or VCs are looking for outsized returns from a small percentage of their portfolio. They need to see the big dream and the potential for huge success. But it's not just about the dream. Post-2021, the capital environment has changed. Investors now look for founders who can execute in the short term. Proof points and a clear plan for immediate execution give them confidence that their money will be well-spent and that you won't need more funds soon after. So, here are two things I recommend startup founders focus on: 1. Showcase the Dream - Articulate the big idea and its potential impact. Make it compelling and show how it can deliver significant returns. 2. Demonstrate Short-Term Execution - Provide proof points that you can achieve short-term goals. Have a clear plan showing how you'll use the investment to reach immediate milestones. Make sure that you demonstrate a balance in both aspects. Your pitch should convey that you're not just a visionary but also a doer who can make things happen. #StartupFundraising #VentureCapital #AngelInvesting

Q4 Data is out for Venture-Backed start-ups. Here are the key takeaways by funding stage: - Seed & Series A: Median pre-money valuations increased, especially for Series A which jumped from $29M to $45M. But round sizes fell or held flat. - Series B & C: Valuations ticked upward slightly while median round sizes were flat or down. - Series D & E: Later stage trends diverged, with Series D median round sizes increasing but Series E holding steady. Valuations rose across both stages. Valuations keep rising slowly despite rocky markets. It hints that investor appetite persists for standout startups. 2024 might just be the year for the market to comeback. #venturecapital #vc #investor #angelinvestor #founder #startups Source: Carta (State of Private Markets)

Startups: Avoid crazy valuations, dilution is ok. Below 6 pieces of advices by 3 tier 1 VCs. Listen and repeat (before going to bed). ➡ not to go for the absolute minimum dilution by trying to get “some crazy valuation” Founders should anticipate parting with 15% to 25% of their company in typical (read: not crazy-competitive) rounds. And unless you’re building a hyped AI company, you shouldn’t expect to get 20 term sheets. ➡ expect, especially in early funding rounds, a “clean” term sheet No onerous veto voting rights or multiple liquidation preferences. ➡ having a roster of customers means more now than it did in 2021.  It’s not so easy anymore to get customers for your product, as company budgets have been slashed. But if you do have some buyers lined up, “traction is something that’s really gold, and it helps you massively in your fundraise.” ➡ “account for more time, account for more runway” when raising money. The time to raise a Series B round has grown by 85%, according to recent Carta data. ➡ don't “get distracted by good news, bad news” “Navigate, pivot, change, adapt, but focus on finding a real solution. All the rest — the funding rounds, the valuations, your partners, at some point the exit — will then strictly be a result.” ➡ starting companies not to get bogged down It'll likely be a good number of years before you sell your business and probably in a very different market to today. "While it's important to understand the environment that you're in, you're building now for something in the future, which will change anyway.” Here are highlights of the conversation Judith Dada, partner at General Catalyst/La Famiglia, Alexander Schmitt, partner at Lightspeed and Rainer Märkle, general partner at HV Capital , had with Anne Sraders on Sifted #startups #VC Mind the Bridge

For many young startups, this market is the only one founders have known. 🚀 But if you’ve been in the game for more than a few years, you may have noticed the subtle change over time in the investing market. ⏰💥 I recently read an article picking the brains of Jeff Clavier, 💸 founder of a prolific early-stage venture capital firm out west, and his managing partner of many years, 💰Andy McLoughlin. I’ll link the full article below ⬇️🔗so you can check out their wisdom for yourself, but here are some nuggets from the article that I found particularly interesting for young startups in the market today 🤔🔍… 🌱 There’s a growing acceptance, though still controversial, of VCs backing competing companies. The prevalence of this might be due to the decrease in late-stage deals. 🌱 Although some VCs might not be interested in joining the board, it remains that good board members are seen as valuable, especially in the early stages, while VCs may choose to relinquish seats in later stages for more relevant expertise. 🌱 Despite a booming market, liquidity issues are constraining high-net-worth individuals' ability to invest, impacting the availability of capital for seed funds. These are just a few of the insights that Clavier and McLoughlin shared in this article 🤯, and if you’re curious about the current state of the venture market, I urge you to read the full interview: https://buff.ly/3KgPMb1 #MatthewGlickLegalServices #StartupAttorney #CorporateAttorney #TechStartupLawyer #DealFramework #BusinessNegotiation #LegalTerms #Venture #VentureCapital #VC #Investing #Interview #BoardSeats