Josh Halpern

🌟Innovative VC Firm Overcomes Exits Drought with Secondary Sales🌟 ⛵Navigating a challenging landscape where exits are scarce, Santa Barbara Venture Partners (SBVP) has pioneered a novel approach to sustain its growth and attract investors for its second fund: secondary sales. Instead of waiting for traditional exits like IPOs or acquisitions, SBVP opted to sell shares of its portfolio companies, demonstrating its ability to generate returns for investors and stand out in a competitive market. 🎤According to Dan Engel, founder and managing partner of SBVP, these secondary transactions have been a game-changer, sparking investor interest and bolstering the firm's credibility. By leveraging its recent successes, including a lucrative stake in sports-betting company DraftKings Inc.' acquisition of digital lottery app Jackpocket, SBVP seized the opportunity to return profits to its limited partners (LPs) and pave the way for its second fund. 💡Engel highlighted the challenges faced by young VC firms in raising subsequent funds, particularly amid a downturn in exit activity and heightened investor scrutiny. With traditional exit routes becoming increasingly elusive, the pressure is on for firms to demonstrate tangible returns and establish a track record of success. ✨"For us, secondary sales have been a game-changer. They've helped us return profits to our LPs and attract investors for our second fund," said Dan Engel. 💰For SBVP, the decision to pursue secondary sales was driven by the need to provide liquidity to LPs and validate its investment thesis in the eyes of prospective investors. By strategically offloading portions of its holdings in high-performing portfolio companies like Bark Technologies and Rad AI, SBVP not only generated substantial returns but also bolstered investor confidence in its ability to deliver results. ⚠Despite the complexities and potential stigma associated with early share sales, Engel emphasized the importance of prioritizing investor returns and seizing opportunities to unlock value for stakeholders. With a focus on profitability and transparency, SBVP remains committed to its mission of delivering sustainable growth and maximizing returns for its LPs. 🔍 "Returning profits to our investors is our top priority. By strategically selling shares, we're proving our commitment to delivering results and driving value for our stakeholders," added Engel. As SBVP continues to explore secondary transactions and expand its investor base, the firm stands as a testament to innovation and resilience in the face of market challenges. 🚀 ✅ Looking to raise capital for your #fund and increase the international pool of your LP #investors?   🤝 Need warm #LP introductions?   📝 Selling #secondaries to increase liquidity?   🧐 Looking for co-investments?   ▶ G+QUANT's link for inquiries and fund decks: https://lnkd.in/gjC_EuTE #VCInnovation #SecondarySalesSuccess #InvestorReturns #ValueCreation 

2

Check out the latest issue of my investor-focused newsletter Not From Concentrate!

6

1 Comment

I'm not sure why when I post this YouTube video it doesn't auto play on LinkedIn, but if anyone wants a peak at what we were up to in South Korea, here it is: https://lnkd.in/eecUeRH2 And if you know how to correctly post YouTube videos on LinkedIn, that would be helpful too #founders #venturecapital Antler

26

1 Comment

Having a Cars and Capital event tomorrow in Southern California with Oren Klaff. If you want to join message me. https://lnkd.in/gDQ4D39u Oren Klaff Bridger Pennington #InvestorEvent #FamilyOffice #InvestmentOpportunity #CarlsbadEvent #PrivateEquity #WealthManagement #InvestmentConference #CapitalRaising #NetworkingEvent #IndustryLeaders #FinancialGrowth #InvestorsMeetup #WealthBuilding #BusinessGrowth #InvestmentForum

24

1 Comment

HawkTower is a new venture capital firm focused on Underleveraged California. Our mission is to foster innovation and commercialization in critical rising and emerging regions of California, a state that still holds untapped potential as the world's fifth-largest economy. A thriving California, one that continues to grow, compete, and innovate on a global scale, is crucial for America's overall prosperity. Today, our website launched. We are also excited to announce additions to the team and advisory, including: Bill Sherrod, EdD, a 29-year Navy veteran and former Strategic Advisor to the President of the Naval Postgraduate School (NPS), has joined HawkTower as a Venture Partner. Bill, who initially joined us as an advisor in February, has quickly become an indispensable part of our team. His extensive experience in dual-use technology, advanced air mobility, and more brings HawkTower a wealth of knowledge and expertise. Vittoria Lecomte is a new Venture Partner. Tori is a former Forbes 30 Under 30 and an investment banker at Barclays in their Technology, Media, and Telecom Group. She was lead analyst on the Fitbit (now part of Google) and GoPro IPOs. Before joining HawkTower, she was the founder and CEO of Sesh which had a successful exit to Caraway. HawkTower is thrilled to announce our strategic partnership with Tesserakt Ventures, an early-stage venture capital firm based in Central California. This collaboration, at a time of critical opportunity for emerging California, will drive cohesion in the marketplace. Daniel Emilio Sabzehzar (Venture Partner) and Phoenix Skeahan (Operating Partner) will join HawkTower, enhancing our sourcing, diligence, and portfolio support capabilities. Lenny Mendonca, a Turlock native, is a new advisor. He served as Governor Newsom's Chief Economic and Business Advisor and is also a Senior Partner Emeritus at McKinsey & Company, where he founded the firm's U.S. state and local public sector consulting practice. Walt Duflock, head of innovation for the Western Growers , is also a new advisor. Walt is a partner at a 5th-generation family farming operation in Monterey County. In addition to 30 years of experience at Silicon Valley tech startups, Walt and his team at WGA are extraordinary thought leaders in the AgTech ecosystem. Our technical advisory capacity is significantly strengthened with the support of Alexander Wolf, Dean of the Baskin School of Engineering at University of California, Santa Cruz, Amy Fleischer, Dean, the College of Engineering California Polytechnic State University (Cal Poly), and Rakesh Goel, Dean, School of Engineering, University of California, Merced. HawkTower is confident in the entrepreneurial acumen and potential of each of these universities (as well as NPS, UC Davis, Fresno St., and others). I'm humbled to share these updates with you as we continue to grow our firm out in the open with your input.

121

23 Comments

118 VCs (one hundred eighteen!) are gathering in San Diego next week - to meet with 30 SD startups. But it's so MUCH bigger than just those 30 co's. It brings VCs back - when they see quality companies. It helps those who are next-in-line and adjacent. It enables us to send deal flow all year 'round. It attracts talent and other companies. It inspires entrepreneurship. Connect is working for SD. Together, we're building the best damn innovation ecosystem on the planet. Year over year. Five.Ten.Thirty.

264

25 Comments

🛰️ Extending the lives of satellites in geostationary orbit and disposing of end-of-life satellites and space debris in low-Earth orbit are reaching the commercial phase with three news items this week: two from the US and one from France. With SpaceX set to build the deorbit vehicle for International Space Station, this is the big one. It will be interesting to see how this segment will evolve. Mission success will guarantee a significant advance for the first one. It will probably become a winner-takes-all scenario, with the lion's share of the market going to the leader.

5

Coming soon on Aug 1: "Transformation to a Fresh Tomorrow." This is theme of our 3rd Annual Web3 Investor Day, as we welcome the innovators and investors convening in Chicago for these discussions around the next generation Internet. Our theme reflects the optimism, determination and commitment investors and innovators have solidified off the depths of the bear markets to drive success in the bull markets. Broader investor optimism suggests that fresh institutional funds into Web3 across both tokens and equity may endure.  Across adoption metrics, customer interest and developer activity, Web3 seems to have normalized. It’s refreshing to see the transformation and next evolution of Web3 and it’s refreshing to meet many of you on August 1.  And yet, even with the improved optimism from last year, there still remain open questions in the development and adoption of our next generation Internet:  1. the balance of speculative versus productive investor capital in this current cycle 2. the productive role of liquid trading capital in fostering Web3 innovation 3. the attractiveness of venture investments in follow on financings 4. the role of policy and regulation that may enhance innovation 5. the continued developer activity to improve the underlying infrastructure 6. other Web3 recovery characteristics in target customer use cases. We remain committed to navigating regulatory shifts, fostering investor optimism, and building the customer use cases for Web3.  Physical spaces enhance our innovation conversations.  In person relationships foster our collaboration.  Relationships drive breakthrough innovations.  Reach out to Rizza Torres at Decasonic if you would like to join us! #web3investorday #web3 #venturecapital

20

6 Comments

The recent CCA program award to Anduril highlights a vital case study for VCs on navigating defense acquisitions and gauging startup maturity from a government perspective. Typically, startups begin with SBIR awards, but the award’s utility varies across agencies, offering weak signal for investors. Anduril’s initial SBIR in 2019 was for $50K; at Machina Labs we secured our first SBIR in 2020 for over double that amount. However, many firms disappear at this stage, so Phase 1 SBIRs are not strong indicators for VC investment; they mainly serve to de-risk tough scientific and technical challenges. Progressing to Phase 2 SBIR, which focuses on commercial viability, both Anduril and Machina have advanced, using this stage to further de-risk engineering for commercial use. Importantly, funding for Phases 1 and 2 often does not indicate product-market fit as it does not typically come directly from the customer’s budget but is more accessible than other government funds. The narrative changes with Phase 3, which is geared toward actual technology acquisition and is a robust indicator of market fit. Both Anduril and Machina, as well as Blue Force Tech (BFT is the company Anduril acquired last year and developed their CCA), have secured Phase 3 awards, suggesting strong government interest in these technologies. To bridge the gap to program of records (like CCA program), which the government budgets for two years in advance, transition funding mechanisms such as STRATFI or APFIT are used. Anduril and BFT have had those. We are working with our customers to secure that. Anduril made a very smart move and strategically acquired BFT, which was likely ahead in that two years to program of records to expedite this transition, killing two birds with one stone, gaining hardware expertise and an accelerated path to funding. In summary, we at Machina Labs are perhaps a couple of years behind Anduril but are aggressively pursuing technology development and scale to meet and exceed our customers’ needs. That being said, nothing is guaranteed with government funding, but we are working very hard with our customers to earn their business. So far, they seem to be happy with us. Keep in mind we have had fraction of the private funding Anduril has gotten to date but going toe to toe in meeting government need! Disclaimer: I am not a government funding expert and my comments only stems from my specific understanding of government acquisition process from tech startups shaped by my experience at Machina. Applogzie if there are any unintentional mistakes

58

2 Comments

Super excited to be joining this amazing group of panelists at TechCon SoCal, the largest gathering of investors, innovators, and entrepreneurs in Southern California! With just 13 days to go, I can't wait to share insights and connect with fellow industry leaders. Looking forward to discussing investment strategies and entrepreneurial growth. See you there! #TechconSoCal2024 #InnovationSummit #Entrepreneurship #Innovation #InvestmentStrategies

37

2 Comments

Pervasive AI Disruption Knows No Bounds Emerging technologies are now built almost exclusively around the diverse cognitive capabilities of Integrated AI (what I call Multiple Intelligences for Machines). This is creating a world of Pervasive AI, spanning across and uniting the world of both physical and digital. in this world, constantly emerging new products, processes, experiences and ventures create massive increases in productivity, democratization and speed / adaptability / agility. This is how emerging technology can be used to create the kinds of game-changing asymmetries that overturn markets. And those that transform history. https://lnkd.in/dwSbuzwF

1

Two weeks ago I spent 3 days with brilliant human beings discussing the state of AI investment with other angel syndicate leads, angel investors and VCs at Hustle Fund's #camphustle in Los Gatos. It was brilliant. Truly awesome to learn so much from insanely accomplished investors. But was so clear to me again is that the US and the UK are two countries divided by separate languages of ambition. Aspiration and ambition underlined by the cluster effect of successful exits, incredible talent and venture capital driven by operators and founders rather than accountants. But one reason why the US often trumps (pun not intended) the UK is they learn from failure. Run a startup that didn't reach the dizzying heights of venture-scale returns? Learn, reset and go again. What they certainly do not do is look at failure with glee and an "I told you so" attitude. Which is what I sense when I read most of the narrative around the failure of Cazoo. Alex Chesterman swung and missed. The business was flawed, unit economics didn't add up and in reality - there was very little innovation outside the vertical alignment of a well-understood business. But when we look down upon what he tried to do and 💩 💩 it all we're doing is making it harder for someone else to be equally as ambitious. Focus on what went wrong. Focus on the fundamental underlying business models that drive efficient use of capital and the push for profitability. But let's celebrate people shooting their shot and not celebrate the failures.

23

3 Comments

Special Futurists #TechWeek Power Walk for AI, Web 3, and Space Tech founders, investors, and developers. 🚀 🍦 ​What We Will Do ​Join us for the very first Futurists walk in NYC, an easy-going and excellent icebreaker opportunity during the heart of tech week. We'll spend an hour strolling along the beautiful Highline on the west side, chatting about our AI, Blockchain, and Space Tech projects, exchanging ideas, and hearing about new business ventures, emerging trends and future scenarios. It's a relaxed affair with no stiff or formal meetings. Feel free to join us for conversation, to listen, or simply to enjoy a walk on the Highline and indulge in some ice cream afterward. ​Bonus Exclusive for those who've joined our power walks, we invite you to join our Futurists WhatsApp group and visit our virtual spaceship! Connect with like-minded individuals who share the experience and have something in common. ​*After Walk Due to high interest in our walk, we're heading to a special ice cream event after the walk where you can mingle and socialize. Note: the ice cream location will be revealed only to walk participants. If you can't make it, feel free to send someone in your place! ​Is This for Me? This event is perfect for you if you actively involved in A.I., Web 3 and/or Space tech: ​An investor ​A creator ​An influencer ​A founder ​Running a startup ​Raising money ​Looking for a co-founder ​Interested in sharing ideas ​Seeking brainstorming opportunities ​Networking ​Looking for new or first customers/users ​Pitching your business ​Seeking a chance to clear your head ​Aiming to get in 2,000 steps ​ Also, check out our virtual events on our space ship These events are filling up quickly, and early bird specials are available. Additionally, individuals with 10,000 or more followers or subscribers on social media (business or private) can get free tickets (limited spaces available  https://lnkd.in/emwmKeMY ) ​Follow us on X https://lnkd.in/eAwMiqfa ​Linkedin: https://lnkd.in/euaJebRW ​ Sponsored by Future Center Ventures (www.futurecenter.ventures) ​This event is a part of #TechWeek Andreessen Horowitz - a week of events hosted by VCs and startups to bring together the tech ecosystem look forward to seeing you tomorrow. 🚀 🍦 https://lu.ma/0e623t5f

2

1 Comment

Amidst the foundational models arm race, this is the time to innovate at the application layer, and build consumer products in GenAI. Our daily interactions- and over time our relationship with technology- will be redefined through AI companionship, intellectual partnership and personalisation. Consumer experiences and interfaces are going to be redesigned- particularly in India- where rapid shifts in cultural and economic forces are already reshaping our behaviour. I've explored these dynamics in my latest piece on consumer GenAI. I'm betting that as foundation models continue to improve and increasingly get commoditised, the player that owns the consumer will win.

18

1 Comment

An interesting article below, that demonstrates out how San Diego is punching above its weight.  And how Connect's strategy and execution over time, contintues to be central to that success. The article describes the current state of the market in Seattle.  (And i love Seattle.) It's a market that we tend to track with relative to venture fundings.  They used to kick our butts, we outraised them each of the last three years.  This despite the fact they have 3x as many funds there, and 9x the amount of resident capital there. (per pitchbook) Some key takeaways:  * They continue to compare themselves to SIlicon Valley. Instead, we leverage our proximity. *They whine there's not enough local investors (see note above - they have more than us). We bring over 200 VCs to SD annually! * They say founders are not connected with one another. We bring CEOs together regularly, in a variety of ways - private dinners and through our Springboard program. * They say they need to elevate their image on a national & international stage. Why we created and continue to build Five.Ten.Thirty (aka Inno Day).  * And the last paragraph - they need to concentrate on making their region a great place to live. Our mantra: "It's about Better, not Bigger." (See XEO, TL Fund). THANK YOU FOR ALL OF YOUR SUPPORT. WE ARE ON A MISSION TOGETHER!!!  (Comments, whining, suggestions on SD always welcome.) https://lnkd.in/g6Rq_f2Y

109

10 Comments

Interesting piece from Marc Andreessen on how startups are not getting the regulatory support they need to sustain America's technological leadership. "Regulatory agencies have been green lit to use brute force investigations, prosecutions, intimidation, and threats to hobble new industries, such as Blockchain. Regulatory agencies are being green lit in real time to do the same to Artificial Intelligence." While many investors themselves (both in the US and Europe) are worried how AI will change our lives, our jobs and social interactions, the top VC opinion leader thinks regulation is already too restrictive. #techstartups #techleadership #strategicgrowth

9

1 Comment

“Be quick, but don’t hurry.” John Wooden, the great UCLA basketball coach coined that phrase, and this week will offer interesting opportunities to watch pros applying it: the NBA Playoffs, yes, but also SF Climate Week. I’ve been thinking about how to apply the proper balance of patience and urgency to the climate fight. First, what does Wooden’s advice mean? Prolific basketball scorers will often talk about the need to “let the game come to you.” In other words be aggressive, move with purpose, probe for openings… but not to the point where you are hurrying into the teeth of the defense and in so doing making careless mistakes or missing the right play. The notion of patience also applies over time. Joel Embiid of the Philadelphia 76ers famously talked a few seasons ago (in a very impatient sports town) about trusting “The Process” in turning the league’s worst team into one of its enduring best. Back to climate. While hundreds of functional technologies/approaches are being deployed in thousands of ways across all industries to draw down emissions, it will take time we don’t really have — maybe a generation — to scale up these new methods enough to keep us under the warming levels above which really bad things happen. It can be depressing, and I’m certainly not alone in wanting to push harder. But it occurs to me that some of that urgency could qualify as hurrying in Coach Wooden’s sense. This (possibly contrarian?) perspective comes in part from an executive coach who once reflected that I sometimes struck him as having “both the gas and brake pushed down all the way.” He—and my team it turned out—experienced a grinding between my inner drive to quickly usher everything from decisions to workstreams through to conclusion and a desire to gather more information and make the perfect set of moves. Both “pedals” represented an exertion of control; and the solution to this inner tension was actually to practice patience by easing up with *both* feet. Point being this: amidst our ever-increasing incentives to ramp up velocity with decreasing margins for error, I wonder if being a bit more methodical each day could significantly improve the end result. In a realm as complex and fraught as climate, with so many entrenched defenses, could daily 1% improvements to our patience compound our effectiveness over time? Taking the extra breath to be more present in a conversation and learn more about another perspective. Sitting with the discomfort of ambiguity while waiting on more information. Trusting in the flow of things, the skills of colleagues, the angles that will appear and allow us to make outsized impact with more leverage than if we hadn’t allowed the game come to us. Think about it this week. As a hoops fans or climate warrior, a connector or caretaker — where and how could a little more patience help improve your part of the game? #ClimateChange #Sustainability #EarthDay #Improvement https://lnkd.in/gmyV3DYt

8

1 Comment