Diana Murakhovskaya’s Post

🌱 Launching a business is such a thrilling ride, but turning your ideas into reality can be a bit of a puzzle. Many companies need a financial boost to make their dreams come true, especially startups relying on that magical seed funding to sprout and grow. 🔍 Let's delve into seed capital – what it's all about, how it does its thing, where you can dig it up, and some savvy tips for securing it. But first things first, what's seed funding? 💸 Seed funding is the cash injection given to early-stage companies, paving the way for turning ideas into actual, workable businesses. Those first money often comes from angel investors, venture capital pals, or supportive people at startup accelerators. Seed investors? They're the risk-takers, believing in the future success of companies and throwing in their bets. 🚀 Follow us to learn more about Seed Funding! #StartupLife #SeedFunding #BusinessGrowth #FinancialBoost #RiskTakers

"Raising a down round is taboo in the venture capital world, forcing founders and early investors to confront a number of tough questions and feelings. It shouldn’t be so scary. Much like in the public markets, there are a number of reasons why private companies may go up and down in value. When valuations get too inflated, down rounds pull the market back to earth. We don’t have to love them, but we shouldn’t fear them." A thoughtful take from Endeavor Catalyst worth the read: #entrepreneurship

Venture capital investors, have you taken the 𝗠𝗲𝗻𝘀𝗮𝗿𝗶𝘂𝘀 𝗢𝗮𝘁𝗵? I recently shared the great news on Salfati Group joining VC Lab’s cohort #14 and that I had officially taken the Mensarius Oath. I’d like to take a minute to reflect on the Mensarius Oath and why I believe it should become an industry standard and best practice. 👇 For context, the Mensarius Oath is a symbolic contract and commitment to keep things honest, transparent, and above board in how VC and other finance professionals handle investments. It involves signing and publicly affirming your support for it and states that if you or a panel of your peers agree that you have violated the Oath, then you will voluntarily leave the industry. Here’s why it matters: The valuation bubble shed light on how GPs were incentivized to maximize AUM rather than DPI and ROI due to abundant liquidity. This led to poor due diligence processes across the board and 𝗿𝗲𝘀𝘂𝗹𝘁𝗲𝗱 𝗶𝗻 𝗺𝗮𝗻𝘆 𝗳𝗶𝗿𝗺𝘀 𝗳𝘂𝗻𝗱𝗶𝗻𝗴 𝘂𝗻𝘀𝘂𝘀𝘁𝗮𝗶𝗻𝗮𝗯𝗹𝗲 𝘀𝘁𝗮𝗿𝘁𝘂𝗽𝘀, now facing challenges to stay afloat. Perhaps the real winners are the early orchestrators who successfully exited the market before the burst. Who knows. But the reality is that there’s now a critical mass of LPs, other GPs, founders, employees, and several other stakeholders taking the hit with write-offs, layoffs, and other non-ideal outcomes that diminish trust at an industry level. Now that the VC cycle has reset, I encourage fellow investors to take the oath and set the standard of honesty, transparency, and trust: https://lnkd.in/emZxnuCq All serious technological developments out there needed a robust venture ecosystem to flourish. Let’s ensure that the new generations focus on funding the future of technology rather than ephemeral financial hype cycles. Would you take the Mensarius Oath?   #founders #startups #investors #fundraising #venturecapital PS 🔔 Follow me for posts on startups, venture capital, and fundraising. Looking to reach Product-Market Fit? 👉 Send me a private message with "PMF" and we can talk.

Roughly 1 in 5 venture capital financing rounds is down these days. That’s 4x what it was two years ago. Down rounds are reality, so why are investors and founders still so afraid of them? Jackie Carmel, Managing Director of Endeavor Catalyst, argues that down rounds should be treated as a normal feature of a healthy private market, not something to hide from or squirm your way out of. While not aspirational, a down round should not signify that something is wrong with a company if other signals are positive. She also brings in other voices, including Shu Nyatta, founder and managing partner at Bicycle Capital, who explains just how odd the private market is when compared to public markets. Read the full article 👉 https://lnkd.in/gFMq-h2z #investing #entrepreneurship #venturecapital #endeavorfeatures

Most people assume angel investing is simply about rich people passively maximizing financial gains by proving capital to founders who do all the work. The truth is that the most impactful angels take that title to heart, and actually help guard founders from unnecessary mistakes, while hopefully guiding them toward success. Their capital contribution is a way of having skin in the game, on top of providing their expertise, connections, and support. I've learned a bunch from impactful investors like Arlan Hamilton, Elizabeth Yin, Jason Calacanis, and many others. I even embarked on my own journey as an angel by first serving as an advisor, and then investing small checks into startups I care about. The truth is that we need many more purpose-driven angels to truly move the needle for startups who have so much to gain from our knowledge and resources. During economic downturns, angels are especially crucial as traditional funding is even harder to come by. Check out the intro-level course I put together for first-timers looking to get started. Regardless of the amount of money in your bank account today, you can begin adding value to high potential startups and have skin in the game. When in doubt, remember what Beyoncé said, "Pay me in equity..." Join our community at Bison Venture Partners: https://lnkd.in/e9BYXgmy #education #startups #venturecapital

Do you need to raise a seed round for your startup? Raising all-important seed capital is no small feat. It demands a blend of strategy, determination, and a touch of creative flair ✨ Focus on four simple steps to secure investor interest and runway. Step 1️⃣ – Nail that pitch deck. It should shine a spotlight on your product, market size, financial forecasts, and the star power of your team. This is your first handshake with potential investors. Make it count! 🎯 • Use storytelling to make your deck memorable. • Focus on the problem you're solving and why it matters. • Include visuals like graphs and charts to convey data effectively. If you need help with design and creating a compelling narrative, work with a professional. Step 2️⃣ – Scout for potential investors. Use tools like LinkedIn, Crunchbase, AngelList, and PitchBook to find investors aligned with your industry, needs, and startup stage. Importantly, consider their portfolio, network, and values. Once shortlisted, send them your pitch deck, and always remember - rejections are stepping stones, not setbacks. Step 3️⃣ – Practice makes perfect. Rehearse your in-person pitch until it's a perfect blend of hard data and audacious dreams. To prepare: • Record yourself giving the pitch to identify areas for improvement. • Practice in front of various audiences and ask for honest feedback. • Develop responses to potential questions investors may ask. Keep your ears open to feedback 👂 Step 4️⃣ – Persistence pays. Follow up with potential investors, update them on your progress, and keep the conversation alive. You're planting the seeds for future collaborations 🌱 Use whatever tool works for you, whether it’s a Kanban board on monday.com or a dedicated fundraising tool like Streak The journey to securing seed capital is as thrilling as it is challenging. It’s the first step to bringing your startup vision to life. Good luck out there, and remember – from little things, big things grow! The small (but daunting) steps you take today will lead to AMAZING things in the future. A question for established founders – What's been your biggest lesson learned when raising seed funding? Share your experience in the comments below! #Startups #SeedRound #Fundraising #Investors #AngelInvestors

Down rounds aren't great - there's not much argument on that. But they are not the death knell that many make them out to be. As my esteemed colleague Jackie Carmel writes here, often they are much more a function of external macro factors than poor performance by the company, especially in the current down cycle in the venture markets. And avoiding a down round at all costs can lead to onerous terms that become far more problematic in the future than the down round would have been. The message to founders is clear: you (and your company) are much more than the number attached to your valuation. Leading a high growth company is a long journey and the key is setting yourself up for long-term success, not over-valuing your valuation. PS - please forgive the dad pun at the end, I simply couldn't resist.

2023 has been a tough year for the venture markets. A wild roller coaster ride for many investors. But everyone's still: "What's your next startup investment?" "How do you pick the right companies?" “How do I find deal flow?” It’s clear: people want to learn about investing in startups, BUT...it's such an opaque daunting space. That's why I think Venture investors needs the right education, skills and support. I mean, practical, hands on, real-world learning. And it's important to stay committed to honing your craft for life. Speaking of improving, this year pushed my limits. We ran 5 cohorts of our flagship Syndicate program and launched Venture Fundamentals to guide new angels. We've reached 200 investors across nearly 30 countries, and our network has expanded to 1300. 2023 also the year we led our first venture funding lead and writing our first seven-figure check. As the year wraps up, I'm thrilled about our growth and eager for 2024. Thanks for being part of this journey. Wishing you all happy holidays and a fantastic new year!

Great insights and visuals from Tomasz Tunguz of Theory Ventures: step-up valuations are at a decade low, and time between rounds is at a decade high. These conditions are harshest on companies who hope to raise a Series A. Sound scary? Here's how founders can adapt: 1. Most pitch decks are written with rose-tinted glasses. I know you are "selling" but you must be realistic with your deck. When investing, Craig Cummings and I typically have to reduce revenue forecasts by ~50% and increase costs assumptions based on our operating experience. Hope for the best, but plan for the worst! 2. "I wish I'd taken less money in the Seed round…" said no founder ever in my 20-year investment career. Never leave cash on the table. Minimizing dilution is tempting, but capital buys you optionality. 3. It's never too early to start the raise: raising money with a year of cash runway is 10x easier than with only 90 days of burn, especially in the current climate of extended diligence and elongated closes. Plus, your negotiating position is better when you're not in an existential time crunch. More on that in Craig's excellent blog on leveraging investor FOMO: https://lnkd.in/daHZWAtD Craig and I have recently made 36-month runway a standard condition for an investment round out of Moonshots Capital's funds and syndicates. The new normal might feel harsh to new founders, but it's worth keeping in mind that we're undergoing a correction: after the pandemic boom, things are returning to 2018-levels. With realistic projections, patience, and diligence, strong teams and extraordinary leaders always prevail. Check out Tomasz's blog here: https://lnkd.in/dzscb6Kh #leadershipprevails #venturecapital #marketcorrection #startuprunway #fundraising #seriesa #startupfundraising #founders #founderadvice #seedround #fundraisingenvironment #startups #leadership

Pre-Seed Funding in 2024 Mid-way 2024, most founders have realized that money is less abundant than it was in 2021. Unless you build AI infrastructure. Being Sam Altman also helps. Result: More bootstrapping, organic growth. Good! Over the last decade, a lot of first-check and idea-stage VCs emerged. More options for less affluent founders and capital-intensive businesses. Great! What I hear from a lot of founders though: Investors come with outlandish demands. "Series A traction metrics at Pre-Seed valuations" I find that disturbing... - Yes, power dynamics are in favor of investors. - Yes, it's super hard to raise a new fund right now. - Yes, you need to adjust portfolio risk. 𝗕𝘂𝘁: 𝗧𝗵𝗲𝗿𝗲'𝘀 𝗻𝗼 𝗳𝗿𝗲𝗲 𝗹𝘂𝗻𝗰𝗵. 𝗬𝗼𝘂 𝗰𝗮𝗻'𝘁 𝗵𝗮𝘃𝗲 𝘆𝗼𝘂𝗿 𝗰𝗮𝗸𝗲 𝗮����𝗱 𝗲𝗮𝘁 𝗶𝘁. If you commit to pre-seed and first checks, you can't expect the founder to derisk your entire investment. Or am I missing something? As Peter Walker put it today: Early-stage venture is so weird right now. What's your take on fundraising right now? #venturecapital #founders #startups #fundraising