Joanna Arras

To all #founders and #entrepreneurs out there, our intro meetings are conversational and easy going. Feel free to message me to setup a call. Learn what Pioneera Ventures can do for you!

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At the CFA Society Indianapolis Venture Breakfast last week I mentioned how SaaS is losing its VC footing to AI. A couple of folks asked for more information, so I figured I'd share today's PitchBook newsletter on the topic. (https://lnkd.in/eJ285n-a) Amid shifting landscapes in the tech sector, corporate innovation funds and investment dollars are increasingly pivoting towards AI experimentation. As traditional SaaS startups experience a deceleration in revenue growth, the focus is shifting. 💡 As we witness this transition, it's crucial for professionals in tech and investment sectors to understand how AI can drive not only efficiency but also innovation. ❓ Let's discuss how your organizations are adapting to this shift. Are you experimenting with AI? What impacts do you foresee in your industry? #AI #CorporateInnovation #TechTrends #StrategicInvestment

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Thanks to Kanhai Kapadia for hosting me on the Hindsight podcast. It was a lot of fun talking about the importance of data in helping brands manage profitability and also how both Consumer Brands and SaaS companies are transitioning to this post-zirp environment #dtc #analytics

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This week Mikal Ventures brings you a 4-week breakdown of the non-US capital market with an emphasis on the Mikal verticals. Over the 4-week period ending May 29, a total of 1,545 new companies were added, with 101,688 companies included in the non-US Health Tech, Med Tech, Fin Tech, AI Tech, and Ed Tech verticals. The non-US AI Tech saw the greatest percentage growth in new companies for the period, weighing in at a notable 27%, nearly two times the overall vertical average of 15%. The non-US Heath Tech vertical led the group in transactions. Non-US Med Tech vertical lead in both SEC Filings and news articles. Mikal Ventures publishes these stats on a rolling 4-week basis to provide a perspective on how the verticals and new startups move through time. We hope you find them informative and thought-provoking. VC Investors are always adjusting their "Play Book" with a variety of options for investing. Mikal Ventures is one of those alternatives, offering curated solutions to real world problems. Reach out if you have questions on how we can be of assistance and bookmark https://mikalventures.com/ for additional insights and information.

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A few Friday thoughts... After several days in Chicago surrounded by 200+ LPs at the ILPA Members' Conference covering everything from AI to NAV facilities, I'm headed into the weekend energized by what's to come. That may come at a surprise after the week we've had as an industry. The decision from the U.S. Fifth Circuit on the SEC's Private Fund Advisers rules was handed down just moments before we kicked off ILPA’s AGM on Wednesday. All along, ILPA has viewed the PFA as addressing areas that pose risks to both LPs and the industry around transparency, governance and alignment of interest. It was disappointing—albeit not a shock—to see the PFA vacated. But ILPA is choosing to turn our energy to the compelling opportunity before us as an industry. Together, we can chart the path for how we'll work better together, on our own terms. Particularly around transparency. Just days prior to the ruling, we had debuted the next evolution of ILPA reporting templates on fees and expenses and performance for industry feedback. The templates were developed by a broad industry coalition over a three-month period, partly to comply with the PFA quarterly statements rule implementation deadline, but largely because this work needed to be done. We've temporarily paused the comment period. Now we have the benefit of more time to ensure that these minimum reporting standards have cross-industry buy-in to ensure wide support and adoption. Will you join us in this effort, in paving the way forward as an industry? https://lnkd.in/e-6hspU4

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As lenders to late and growth-stage companies, we're often asked: “What exactly do you look for in potential borrowers?" In my 30 years of experience working in the venture ecosystem, I’ve seen what qualifies some businesses to get the financing they need. Here is what we typically look for: ✔ Proven Business Model: Those with validated product-market fit, recurring revenue streams, and predictable cash flow are typically less risky and more likely to succeed in repaying their debt obligations. ✔ Stable and Diverse Customer Base: Borrowers with a stable and diverse customer base demonstrate a reduction in concentration risk and lower dependency on a single revenue source. ✔ Strong Management Team: At Runway, we look for entrepreneurs with a track record of success, industry expertise, and a clear ability to execute a business plan. A strong management team signals confidence to the lender that the business will be able to navigate challenges and drive business growth. ✔ Capital Efficiency: Startups that have effectively managed their capital resources, are clear on how the funding will be used, have minimized burn rate, and achieved meaningful milestones are strong candidates to utilize debt financing. ✔ Equity Backing: Previous equity financing by an established VC can provide additional validation of a company’s business model, market opportunity, and growth prospects. ✔ Exit Strategy: Those with a clear path to profitability and viable exit (such as through an initial public offering or strategic acquisition) provide assurance that the debt will be repaid in a timely manner. If you’re thinking about how to grow your business, and exploring debt as an option, keep this in mind!

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This week Mikal Ventures brings you a 4-week breakdown of the US capital market with an emphasis on the Mikal verticals. Over the 4-week period ending April 15, just over 900 new companies were added, with 94,109 companies included in the US Health Tech, Med Tech, Fin Tech, AI Tech, and Ed Tech verticals. AI Tech again saw the greatest percentage of growth in new companies and transactions, weighing in at over double the vertical averages for the period. The US Fin Tech vertical again led the way in SEC Filings and news articles. Mikal Ventures publishes these stats on a rolling 4-week basis to provide a perspective on how the verticals and new startups move through time. We hope you find them informative and thought-provoking. VC Investors are always adjusting their "Play Book" with a variety of options for investing. Mikal Ventures is one of those alternatives, offering curated solutions to real world problems. Reach out if you have questions on how we can be of assistance and bookmark https://mikalventures.com/ for additional insights and information.

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Announcing VSC Ventures' inaugural Dirty Jobs Summit Across the world, companies relying on blue-collar workers face challenges in finding reliable labor as boomers retire and younger generations choose other paths over trade roles. We believe software, automation, and robotics in these Dirty, Dusty, and Dangerous industries is a matter of ‘when’ not ‘if’ Over the past two years, we have actively invested in seed-stage companies bringing automation, efficiency, and digital transformation to legacy industries through companies like PaintJet, Glacier, concrete.ai AI, Sesame Solar, Presso®, Homemade, and more… and we’re just getting started! ***Why a Dirty Jobs summit?*** Incredible founders are tackling key issues in slow-to-digitize, hard-to-decarbonize sectors like manufacturing, construction, recycling, and logistics, but they lack a space to share learnings and grow their network with kindred operators and investors. The Dirty Jobs Summit has curated a group of top founders, investors, operators, marketers, and decision-makers, creating a forum for founders to be seen and heard. Our Summit will distill specific takeaways, including strategies and tactics the most ambitious startups are deploying, the solutions legacy players are adopting, and the capital investors are deploying to bring huge transformations to dirty jobs ***Who’s going to be in the room?*** Seed through Series B Founders from Rapid Robotics, Inc, GrayMatter Robotics, Renewell Energy, Jacobi Robotics, @Kodama Systems, Reshape Automation, Olis Robotics, Raise Robotics, Urban Machine, Polymath Robotics, Bedrock Energy, Cambium Carbon LLC, First Resonance, Plantd, GaeaStar,CivilGrid, Gritt.ai, VoltAir Inc., and many more GPs and Partners from Lowercarbon Capital, Eclipse, G2VP, Lux Capital, Pathbreaker Ventures, HCVC, Outsiders Fund, Brick & Mortar Ventures, At One Ventures, Voyager Ventures, Congruent Ventures, AlleyCorp, Blue Bear Capital, F-Prime Capital, Union Labs Ventures, Wireframe, Bee Partners, Schematic, Ravelin, Counterpart, 81 Collection, Climactic, Dart Ventures, Sandhill Angels, and so many more ***What will be discussed at Dirty Jobs?*** Proposed topics we’ll cover in our roundtable discussions: — Accessing downstream capital in unsexy industries (Series A & beyond) — Navigating nearshoring of critical manufacturing — Frameworks for effective storytelling in legacy industries — Writing & winning grants in 2024 — What strategics actually care about and look for — Customer acquisition strategies that actually work We've got a great group already with just a *few* more open spots. If you'd be a good fit for Dirty Jobs please RSVP ASAP: https://lu.ma/4dus91nm Special thanks to our incredible sponsors Fidelity Private Shares, Trinity Capital, SVB and Goodwin. See you on June 4th. cc: Jay Kapoor, Vidush Jaipuria, Maggie Philbin

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The transition from Operator to VC Partner is not always as straightforward as we think. Some great advice today from Victor Lazarte in today's Fortune Term Sheet. I thought it was worth sharing. The heart of the matter is contained in this quote: “One mistake that I’ve made, that I think is common for operators-turned-investors, is that when someone pitches a company, you project a lot into it,” said Lazarte. “You can do this or that thing, and get very excited about the company you’d build in that person’s place—and that’s a huge mistake…This one time I brought a company in and all the partners asked why I was excited about such a small market. And I was like, yeah, but after they do this, there’s an opportunity to go much further…People reminded me then—the entrepreneur hadn’t pitched us on any of this, that [I’m thinking about] the company I would do.” Great insight for all entrepreneurs and investors! Endeavor Colorado Zeb King Tegan Stanbach Kathryn Dickson #privateequity #venturecapital #investing #innovation #entrepreneurship #founders #startups https://lnkd.in/g5-3uy5K

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I’m about possibility and opportunity. During the time between my last exit and starting Cascade Seed Fund I ran multiple companies through strategy building and execution. People love to plan because it’s about possibility but its just as important to know what you don’t want to happen as it is to know what you do want to happen. Lots of companies fail because of too much offense and not enough defense. What are small actions you can do today to strengthen the safety and well-being of your company. More on offense soon.

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Such an excellent conversation this week. For those in venture capital, this is a must listen. https://lnkd.in/gQUgM8q9

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For some insight into what I look for in companies, check out Good Revenue's recent podcast!

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Per PitchBook, PE managers' returns to LPs are still in decline. The data speaks for itself. Clearly the past few years have seen a significant decline in realizations. However, one of the biggest mistakes continually made in investing is to take recent data and simply extrapolate it into the future. The article makes the statement: "The decline is a sign that PE realizations have yet to bottom out, as GPs navigate unfavorable market conditions for exiting their often long-held investments." I wouldn't be so sure. The data might actually be pointing out that the decline has bottomed out - and we simply have not yet recognized it. The investing markets are a pendulum, constantly swinging back and forth between wide open capital markets and markets closed tight. We have been in a closed market for some time now. Don't be too surprised if what we are experiencing now is the early innings to a thaw. Only time will tell... Endeavor Colorado #privateequity #venturecapital #innovation #entrepreneurship #founders #startups #investing https://lnkd.in/gCCWN9_D

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Good blog post from my partner Andrew Heyman on the importance of alignment between founders and their VC partners. GoPoint is actively seeking new investments. Happy to speak more with anyone running new ventures looking for perspective here.

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🌟 Looking to secure first-round funding? Check out these essential tips to perfect your pitch from the team at Ascend Venture Capital. From finding the right investor to crafting a compelling story and nailing down financial details, these insights will help you stand out and succeed in your fundraising efforts 🚀 #StartupFunding #InvestorPitch #VentureCapital

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🚀 Here are the Top 3 things I learned moderating a VC panel about "Funding AI Startups" at #CincyAiWeek... 1️⃣ VCs are people, too! 🤝 Building relationships and understanding their perspectives is key. I feel like a lot are 80% the same in their charge, but 20% VERY different in approach/culture/thesis. ✅ So what? Prioritize networking and building genuine connections with investors. Don't seek ways to appeal to the 80% that you know everyone is looking for. Chase down the 20% differentiators and figure out how you fit into them. 2️⃣ ...But VCs also use artificial intelligence, themselves 🤖 Leveraging AI tools can streamline processes and enhance decision-making. Understanding how to frame your messaging such that it will appease not just the people but the bots, too, could be critical. ✅ So what? Leaning into that 20% (see above), prompt engineer your messaging to fit VC target theses. You can find these - VCs serve them up online. It's never been easier with Ai to scale your messaging/approach (*ahem* Narratize now open to individuals/teams *ahem* - sorry had a cough), so why not leverage it to have [many] multiple instances of your pitch messaging. 3️⃣ Calling yourself "generative AI" isn't always going to help. 🤔 Investors prioritize clear value propositions and market potential over buzzwords. I was somewhat surprised to hear the consensus say that there is borderline gen.ai exhaustion that is making it really hard to discern the true value prop through the "gen.ai messaging weeds". It was almost like they were saying "we get it...you use ai...join the club...now...what actual problem are you solving again ???" ✅ So what? Focus on articulating your startup's unique problem-solution fit and addressing market needs directly. Talk less about gen.ai and more about market traction. What I call SMMs (Show Me Metrics) are key to demonstrate traction. Money is Queen, but if no money is being generated, at least demonstrate traction/validation with papered beta engagements (if you don't know how to do that effectively, DM a good Venture lawyer 😉) Grateful and honored to hopefully add a little value with Scott Jacobs Tyler Mantel Patrick Henshaw Ryan Retcher Sue Bevan Baggott [REACH OUT TO THEM DIRECTLY THEY WILL RESPOND] & special shout out to Summer Crenshaw Zachary Huhn & Jon Salisbury on a quickly-assembled, phenomenal event. Maybe we run it back in Columbus ??? Just saying. 🤷‍♂️ Cheers.

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Awesome to chat about Team Equity with startup leaders today at William Buck. Equity can be a great motivator for startups and growth companies, when you have the right compliance structure, balanced with awesome communication and culture. A great team equity plan involves Founders and executives buying into and setting a winning strategy and culture, and finance, legal, and people operations bringing it all together! Thanks Jack Qi and 😎Alex Millar from Hudled for being awesome partners and putting this on! Cake Equity Callum Davidson Kim H.

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