Spark Growth Ventures

Did you see the Selina news coming? Hearing about the insolvency of a key player in your space is never welcome, but at the same time, the news did not come as a surprise. Here is my perspective on their journey: Selina’s lodging product was never designed for the specific needs of  digital nomads and remote workers. About 10 years ago, they  launched  as a hostel in Bocas del Toro, one of the most popular backpacker towns in LATAM, and managed to build an amazing hostel product in a highly-fragmented market. Selina  did a great job executing their strategy of taking over run-down hostels and refreshing them with nominal CapEx. They capitalized on the WeWork fever of that era, marketing coworking spaces inside their hostels and selling this shiny ‘new’ product to investors. A “growth at all costs” mindset  and post-Covid growth enabled them to go public in October 2022 - with a $1.2 billion valuation. On top of going public at a high point in private company  valuations, they did this through a SPAC merger - and like many SPACs of that era, Selina faced liquidity challenges after initial enthusiasm wore off. From my perspective, Selina’s challenges were three-fold: Despite marketing  “co-living packages”, Selina's lodging format  was never designed for the needs of remote workers. Most of their bedroom accommodations  are dormitory-style, attracted leisure travelers and became known for their parties. With an average length of stay of 3 nights, Selina was always a short-term backpacker product, not a coliving community for digital nomads. Remote workers want a calm environment, private rooms and long-term pricing, making it easy to stay for longer and “live anywhere”. The second issue is the same that WeWork faced: they used a long-term lease strategy, focusing on growth at all costs instead of unit economics. Combine that with extensive overheads, including headquarters in NYC and London, and you end up with quite an expensive business to run. The third issue is their bloated valuation: A $1.2 billion valuation did not seem crazy in the “Unicorn era”, but now that investors are focused once again on profitability and efficiency (not just rapid growth), the numbers don’t add up anymore. Most travel/real estate companies (Inspirato, Sonder, Vacasa) who did a SPAC have been having the same issues. The pandemic didn’t help Selina stabilize either, and this year’s slowdown in travel was likely their fall from grace. I really thought Selina's management would pull off a turnaround. Their founding team and brand were strong. They had an amazing network of properties, and during the pandemic made a savvy acquisition of Remote Year. What’s next for Selina? Like WeWork and OYO, the brand may well survive under a new corporate structure with a focus on tighter operations and improved unit economics. What are your thoughts?

🚀 Interos Inc Chosen as Government-Wide #SCRM Platform 🚀 We’re honored to announce Interos has been selected as the government-wide supply chain risk management (SCRM) platform for #nationalsecurity and #defense! 🛡️✨ Our contract with the US General Services Administration (GSA) brings Interos’ multi-tier risk intelligence to all Department of Defense and civilian agencies – building on existing deployments with the US Navy, Missile Defense Agency, U.S. Department of Health and Human Services (HHS), and other leading government partners. Highlights: ▶ AI Predictive Risk Intelligence: Anticipate and mitigate supply chain disruptions before they impact national security. ▶ Lifecycle Supply Chain Risk Management: Monitor, model, and mitigate threats across the defense industrial base. ▶ Real-Time Visibility: Actionable intelligence to safeguard military readiness and protect critical infrastructure. 🔗 Read the press release: https://lnkd.in/gQVzZaQU Join us in celebrating this milestone and Interos’ commitment to building the most trusted government supply chains in the world! 🌐💼

Check out CRN's list of hottest IoT Startups (we may be biased, but it's a pretty great read!) --> https://bit.ly/3WdYYUj #Iot #startups #news #maintenance #predictivemaintenance #conditionmonitoring

#IndependenceDay A very Happy Independence Day to all from an unabashedly patriotic immigrant and the Spark Growth Ventures community. As we celebrate the birth of arguably the greatest nation in the history of humanity, I'm reminded of the ideals of liberty, meritocracy and the pursuit of happiness that have shaped the lives of hundreds of millions, both within the US and across the world for around 250 years. We have a lot to be grateful for what we have been given but at the same time, have an immense responsibility to continue to foster and perpetuate the ethos and values that have made USA a great nation – freedom; pursuit of balanced capitalism that works for all hardworking and contributing citizens; and respect for diverse perspectives, law and order, and our bountiful nature.   As fireworks light up the sky and we gather to celebrate this day of independence, I feel a mix of pride and hope. Despite the regression in many aspects of our political, fiscal and societal well-being over the last few years, I still continue to be hopeful for our future, knowing that our founding values continue to inspire millions of us each day and that the vast majority of us are striving to perpetuate our American exceptionalism. God Bless America!

Congratulations to our inspiring leader, Christina Lopes, on her nomination for the Women in AI Award from VentureBeat! Christina is a testament to women pushing the boundaries of cancer care, and we're proud to see her recognized for her vision to bring AI to veterinary oncology. Check out the list here! https://hubs.li/Q02FKtSH0 #VentureBeats #WomenInAI #VBTransform #AIinHealthcare #PetTech

With 2 days to go to the largest gathering of investors, innovators, and entrepreneurs in Southern California, the excitement is palpable for the upcoming session, "Transitioning from Industry to Venture & Angel Investing: Insights and Strategies," at TechCon SoCal. This highly anticipated discussion, moderated by Amit Singh, Partner at Dentons, will feature a distinguished panel of experts, including Hem Suri, Founder & Managing Partner of Spark Growth Ventures; Al Bsharah, Managing Partner & Founder of Interlock Capital; Brad Greenwald, Managing Partner at Hilltop Venture Partners; and Anshu Agarwal, General Partner at Converge. Attendees can expect a wealth of knowledge and strategic insights on making the leap from industry to investment. In the current landscape of venture and angel investing, professionals transitioning from industry roles are increasingly shaping the investment ecosystem. The panel will delve into contemporary strategies for identifying promising startups, leveraging industry expertise to make informed investment decisions, and navigating the complexities of the venture capital world. The discussion will also highlight the unique advantages and potential challenges faced by those coming from traditional industry backgrounds, providing actionable insights for aspiring investors looking to make a successful transition. Reflecting on the past, the panelists will explore the evolution of venture and angel investing. They will discuss key milestones, shifts in trends, and the impact of technological advancements. This retrospective analysis will provide attendees with valuable lessons and enduring principles to apply to current and future investment opportunities. Don't miss this essential session - join us and get ready to transition from industry to venture and angel investing! OPEN Silicon Valley TIE San Diego Interlock Capital Orange County OC Startup Council The Brink SBDC EvoNexus UC San Diego SDSU College of Sciences Pismo Ventures Cross Ocean Ventures Startup Steroid - Deal Flow | SPVs | Demo Day Platform Alliance for Southern California Innovation Spark Growth Ventures SoCal Startup Day Reflect Ventures Wharton Alumni Angels NuFund Venture Group Flok Labx Ventures Mercury Pankaj Kedia Serhat Pala Neal Bloom David Saxton Cheryl K Goodman Ellen M. Chang Niraj Desai Akash Pai Sufyan Subzwari Jonah Peake 🐺 Ella Napata Stephen Silver Fred Grier Scott Fox 🦊 Atlás Blake Eric Eide #TechconSoCal2024 #IndustryExperts #TechConference #InnovationSummit #TechTalks #startupsteroid #innovations #technologynews #networking #artificialintelligence #digitalhealth #robotics #startups #AngelInvestors #vc #SandDiegoStartup #founders #consumertech

#TechConSocal2024 #BuildingOutsideSiliconValley Spark Growth Ventures is committed to helping support top-tier founders from across the nation as well as internationally. Out of the 25 portfolio companies that we have partnered with in the last ~3.5 yrs, the pre-dominant majority are neither in SV nor in NYC (the top two hubs for startup funding in the US), but are in emerging hubs such as Nashville, Columbus, Cleveland and Sacramento: • 6 are HQ-/Co-HQ-ed across San Diego, Sacramento and LA metros • 4 in the Midwest • 4 with HQs/co-HQs in Europe and Asia • 2 in the DC Metro area • 2 in Pacific Northwest • 1 in the South • 1 in the Mountain West Even though there're significant ecosystem benefits from being in large hubs (SV/ NYC/ Boston etc), we think that top-tier innovation and teams with proper distributed support, especially in the post-COVID era, can be successful from most places – there are some additional hurdles but nothing that’s insurmountable. In addition, several benefits of being in the emerging/small hubs vs. the traditional centers. On the personal side also, I grew up in tier-2/3 cities and towns of India (Kota, Ratlam, Jallandhar, Kapurthala, Meerut, NE States etc.) and similarly, built my early foundation in the US in small MidWestern towns/cities, and finally made a conscious decision to create a life out of a mid-sized city in the US. So, I can personally relate to & in fact, support pursuing one’s dreams from just about anywhere, not just large obvious places. Therefore, given our mindset and philosophy, I am really excited to be part of the "Challenges and Opportunities of Creating a Prosperous Venture Outside of Silicon Valley" panel being moderated by Zamir Shukho, MBA (General Partner at Vibranium Venture Capital), alongside my dear friend and classmate Paul Yeh (Founding Partner at Conductive Ventures), Brad Greenwald (Managing Partner at Hilltop Venture Partners) and Howard Ko (Partner at Morpheus Ventures). We will most likely start around 2 pm PST in case you would like to hear our combined perspectives. Lastly, #TechConSoCal is shaping to be one of the largest innovation conferences in #SanDiego, with hundreds of VCs, founders, startup professionals and innovation enthusiasts attending. If you are able to make it to San Diego for a day or even swing by for a few hours, it will definitely be worth the price of admission. Thanks Faisal Mushtaq, Serhat Pala, Neal Bloom and many others for helping organize this invaluable event right here in San Diego and for making a huge contribution to the local ecosystem.   Spark Growth Ventures, Safa Mahzari, Alessio Sanfilippo, Gaurav Bhatia, Jaikaran Sawhny, Jeffrey Haux, Kimberly Davis King, Marcos Rivera, Pooja Skogstad, Raj Pudipeddi, Rohit Gulati, Vittal Kadapakkam, TIE San Diego, Orange County OC Startup Council, The Brink SBDC, EvoNexus, UC San Diego, SDSU College of Sciences, Wharton Alumni Angels, NuFund Venture Group, Jonah Peake, Fred Grier, Pankaj Kedia

Congrats AssetWatch® team on the successful Series B and for having us as part of your impressive journey.

Having a frank discussion about the state of venture capital in 2024 at the panel sponsored by Snell & Wilmer and our own EvoNexus. Moderated by Bardia Moayedi and featuring Ross Bundy of CRISPR QC, Hem Suri of Spark Growth Ventures and Patrick Henry of GroGuru Inc. Introduced by EvoNexus CEO Rory Moore. #venturesandiego #sandiegostartup

#TechconSoCal2024 Looking forward to the opportunity of participating in one of the largest innovation conferences in #SanDiego and learning/sharing perspectives with hundreds of local VCs, founders, startup professionals and innovation enthusiasts. Thanks Faisal Mushtaq for organizing this invaluable event and for making a huge contribution to the local ecosystem.