Mike Chan’s Post

🌴Exceptional Capital: Marell Evans' Journey to VC 🏈 Marell E. Evans, founder of Exceptional Capital, has defied the odds to raise $50 million for his first fund in Miami. His journey from NFL to VC exemplifies the "humble hustler" mentality driving his success. 📈Fund Growth: Exceptional Capital's initial $30M fund has expanded to $50M, despite challenges faced by other emerging VCs in raising capital. "It's tough to be an emerging manager right now, it's tough to build something that's worth." 📝Investment Strategy: The firm focuses on pre-seed and seed-stage startups, leveraging proprietary AI software to identify promising founders and talent. 🏃♂️Personal Journey: Evans transitioned from NFL to a career in technology sales, ultimately finding his passion in venture capital. With a bit of good luck, Evans got a meeting with Ben Horowitz, now the legendary investor at famed venture firm Andreessen Horowitz. 🏦Professional Milestones: Evans gained valuable experience at IBM, Okta, and SoftBank and a firm foundation at the family office of former Facebook and Amazon exec Owen Van Natta, before launching Exceptional Capital. ⏰Market Timing: Evans capitalized on an explosion of new fund managers entering the VC landscape between 2020 and 2022. In 2021, more than 1,800 emerging VCs raised over $180 billion, according to a recent PitchBook, those totals fell dramatically in 2023 — just 637 emerging managers raised new capital of $98 billion. 🤝Strategic Partnerships: Exceptional secured backing from prominent LPs, enabling fund expansion and team growth. Funding included backing from LPs like New Enterprise Associates (NEA), 776 Capital, Lightspeed, and SV Angel, among others. 💰Investment Philosophy: Evans prioritizes foresight over following trends, maintaining discipline in investment decisions, and uses proprietary AI-enabled software to track potential new startup founders at companies like OpenAI and Notion. 📢Founder Recognition: Startup founders appreciate Evans' passion and determination, seeing parallels between his journey and their own. "That same kind of vision and passion that you need to have as a founder to will a company into existence," Cody Coleman of Coactive AI said. 🔮Long-Term Vision: Evans is committed to building upon Exceptional Capital's success, aiming for continued growth and impact in the VC ecosystem with his team Andrew Van Nest as its managing partner, who focuses on talent investing and scouting, chief of staff Melissa Morano Aurigemma, and senior associate Graham Stoddard. ✅ Looking to raise capital for your #VCfund and increase the international pool of your LP #investors?   🤝 Need warm #LP introductions?   📝 Selling #secondaries to increase liquidity?   🧐 Looking for co-investments (Series A/Series B)?   ▶ G+QUANT's link for inquiries and fund decks: https://lnkd.in/gjC_EuTE #VentureCapital #MiamiTech #StartupInvesting #ExceptionalCapital #MarellEvans #Founders #InvestmentStrategy

🌟 Considering Angel Investing? Here's Why Joining a VC Syndicate Might Be Your Winning Move! 🚀 Are you an angel investor looking to dive into the exciting world of startup investments? While going solo has its perks, joining a VC syndicate could be the game-changing strategy that propels your investment journey to new heights. Here's why: Diversification, Amplified: By pooling your resources with other angel investors in a VC syndicate, you instantly gain access to a more diversified portfolio of startups. Instead of putting all your eggs in one basket, you can spread your risk across multiple promising ventures, increasing your chances of hitting that jackpot investment. Access to Top Deals: VC syndicates often have access to exclusive deals and opportunities that may not be available to individual investors. By tapping into the collective network and expertise of the syndicate lead and other members, you can get early access to high-potential startups before they hit the mainstream radar. Mitigated Risk, Enhanced Due Diligence: Syndicates typically conduct thorough due diligence on potential investments, leveraging the expertise and insights of seasoned investors and industry experts. This rigorous vetting process can help mitigate your risk by ensuring that you're investing in startups with strong fundamentals and growth potential. Learning and Networking: Joining a VC syndicate is not just about investing—it's also a valuable learning experience. You'll have the opportunity to learn from the syndicate lead and other members, gaining insights into investment strategies, market trends, and startup evaluation criteria. Additionally, you'll expand your professional network, opening doors to new opportunities and collaborations within the startup ecosystem. Amplified Impact: By joining forces with other angel investors in a VC syndicate, you can amplify your impact on the startups you invest in. Your collective investment can provide startups with the capital and support they need to scale and succeed, potentially leading to greater returns for everyone involved. Option to invest in Seed Stage and Post-Revenue Startups: With an average ticket size ranging from $10,000 to $25,000, joining a VC syndicate allows you to participate in seed stage and post-revenue startups enabling you to support early-stage companies in their crucial growth phases, where your investment can make a significant impact on their success and a better chance with good returns for the angel investor in future. In conclusion, while solo angel investing has its allure, joining a VC syndicate offers a compelling array of benefits—from diversification and access to top deals to risk mitigation and learning opportunities. If you're ready to take your angel investing game to the next level, consider joining a VC syndicate and unlock a world of exciting investment possibilities!

IGNITING NEW BEGINNINGS˖ "At Fuze Fund, we believe in the transformative power of a well-timed spark. The word ‘fuze’ embodies the pivotal moment when potential energy is unleashed, igniting a wave of transformation and growth. As a venture capital fund, we specialize in Seed-stage investments in minority-led, veteran-led, and women-led ventures. We understand that the right support at the right time can create explosive growth. Our mission is to be that fuze, lighting the way for diverse founders and entrepreneurs to achieve lasting impact. We hold a steadfast belief that inclusive investment practices and diversity are the cornerstones of driving innovation, and we aim to be an incubator for disruptive ideation, a place where bold new ideas can take root and flourish." "Our platform is more than just a funding source; it’s a vibrant research hub and a dynamic sounding board. We share cutting-edge insights from across the sector and celebrate alongside our portfolio companies, learning and growing together on their unique journeys. Our commitment at Fuze goes beyond direct investment. We facilitate this through our portfolio of Venture Growth Funds and active participation in investment collaboratives. But our support doesn’t stop there. We foster an environment rich in educational resources, research insights, peer mentorship, and strategic partnerships. Thus, we are dedicated to providing not just financial backing, but a comprehensive support system that nurtures innovation and resilience." "As our flagship fund prepares to enter the subscription phase, we invite you to join us. Help us harness our collective energy to build a more inclusive entrepreneurial ecosystem! We are passionate about supporting founders who operate at the social and economic margins of our society, and we are committed to uplifting the entrepreneurial ambitions of our men and women in uniform. At Fuze Fund, we are not just lighting a spark; we are igniting a revolution in the world of venture capital!" Dr. T.J., Managing Partner (website launching soon)

A NOT SO NOVEL CASE OF THE PRINCIPAL-AGENT PROBLEM. #venturecapital #businessandmanagement Misaligned incentives are a major challenge for most businesses and venture capital is no exception. I was recently admitted into VC Labs Venture Institute cohort 2 and one of the assignments had me studying this challenge in some depth. It has been illuminating to say the least. VC firms typically adopt the 2/20 rule. The management firm earns 2% of the assets under management as management fees annually and 20% of the funds profit. An immediate challenge arises because 2% of a multimillion-dollar fund is a decent return. General Partners managing the fund can thus be tempted to increase the size of the fund and by extension increase their percentage of the assets under management as opposed to doing the hard work of identifying startups worth investing in by doing thorough due diligence, supporting the startups with governance, network access and generally adding value by nominating experienced and engaged board members. This would run contrary to the goals of the Limited Partners who make money when the portfolio companies exit profitably.  Additionally, when fund managers raise a large fund, they can afford to invest in more startups, and they can end up neglecting portfolio companies that may not seem like winners. Coupled with the power law, the VC is likely to end up concentrating on the 2% companies that look like winners. This would be disadvantageous to the founders whose interests would be a VC who is engaged and provides more than just capital. What then, what should a GP, LP or founder do? I find this quote by Kathryn Gould to be instructive; “I didn’t go into a deal unless I thought it was going to be a winner. All 10 had to win, that was my attitude. A lot of VCs run and hide, but I worked hard, I was a good fixer, and I earned my money.” By leveraging this attitude, Kathryn ended up achieving a 90% IRR over her career.  Turns out in Venture Capital as in business, Honesty, Integrity, and good old hard work is a recipe for success. This applies to GPs, LPs, Founders, and all of us doing life on this planet. If you found this interesting, you will find these links interesting too. ·       https://lnkd.in/dTye9N7J ·       https://lnkd.in/dxgcVugu ·       https://lnkd.in/dU3xP_UX

💡 Focus in venture capital is a strategy that delivers results, especially when you are a small VC fund. According to Pitchbook, VC funds under $250m that are specialising on particular sectors outperform generalists. Article below. 👉 What does it mean for startup founders? When it comes to choosing the right partner, a VC firm that has a focus on your sector brings deep industry knowledge and can actually add value to your startup. Such investors understand the unique challenges you may be passing through, and they can provide tailored support that goes beyond just financial backing. #venturecapital #specialization #startups #founders #investment #industryknowledge

🌟 Venture Capital: My Journey Through the Venture Deals Spring 2024 Course🌟 As a student at the crossroads of curiosity and ambition within the realm of startups and venture capital, I've recently achieved a milestone that I'm eager to share: Completing the Venture Deals Spring 2024 course: This educational journey offered by Techstars and Kauffman Fellows was not just a course; it was an eye-opener that refined my understanding of the venture capital landscape, equipping me with the knowledge and skills to navigate the VCIC (Venture Capital Investment Competition) with confidence. A huge thank you to Elliott Robinson, Miriam Rivera, Nicole Glaros, Jaclyn Freeman Hester and Jeffrey Harbach for their invaluable insights that made this course so impactful. Why Venture Deals: - Comprehensive and Free: It's a rare gem that breaks down the complex venture capital ecosystem into digestible, accessible insights, all at no cost. - Expert Foundations: The course, rooted in Brad Feld and Jason Mendelson's influential work "Venture Deals," provides an in-depth exploration of key venture deal elements, seeking to narrow the knowledge gap between entrepreneurs and investors. - Diverse Perspectives: It covers everything from the dynamics of VC transactions to effective investor engagement, negotiation strategies, and the pivotal aspect of founder wellness. Don’t miss out on this transformative experience. Keep an eye out for the next session! 👉 Sign up for updates and never miss an opportunity to grow: (https://lnkd.in/eFYz55Vu) #VentureCapital #StartupFunding #Entrepreneurship

Rolling Funds has emerged as a new star in the ever-evolving venture capital landscape. This innovative approach to fundraising is transforming how investors back promising startups. 🔸 What Are Rolling Funds? Rolling Funds introduce a dynamic twist to traditional venture capital models. Led by emerging fund managers, these funds operate on a subscription-based model, allowing managers to raise and deploy capital on a quarterly basis. This flexible structure democratises access to venture capital, opening doors for both new and seasoned investors. 🔹 The Flexibility Advantage: Rolling Funds offer a fresh take on commitment periods. Unlike conventional funds with long lock-in periods, investors in Rolling Funds can commit on a quarterly basis. This agility suits both fund managers and investors, aligning interests and reducing financial barriers. 🔸 Syndication Amplified: Rolling Funds amplify syndication power. Managers can tap into their network and gather a broad base of limited partners, enhancing diversification and deal flow. This collaborative approach unlocks opportunities that might have remained hidden in a traditional fund structure. 🔹 Empowering Emerging Managers: Rolling Funds spotlight emerging managers, giving them a platform to launch and scale their investment careers. With lower upfront capital requirements, talented individuals can leverage their expertise to secure backers and generate meaningful returns. 🔸 A Game-Changer for Startups: For startups, Rolling Funds translate into a more consistent and predictable stream of capital. The quicker fundraising cycles enable founders to focus on growth, innovation, and scaling without the prolonged uncertainty of capital availability. 🔹 Real-World Examples: Chasing Genius Fund: Renowned investor Chase Hughes launched a Rolling Fund focusing on early-stage tech startups. Hughes leverages his network and expertise to attract investors keen on participating in fast-paced investment cycles. Startup Accelerator Fund: A prominent accelerator program transformed its model into a Rolling Fund. This adaptation allowed them to continually support startups beyond their traditional accelerator phases, fostering long-term growth. Rolling Funds are shaping the future of venture capital by embracing technology and adaptability. As the venture ecosystem continues to evolve, this model exemplifies the power of innovation in reshaping traditional investment paradigms. #77DaysofInvestmentInsights (13/77) #RollingFunds #VentureCapital #PrivateEquity

Venture capital (VC) funding can be a game-changer for startups, but do you understand the financial dynamics behind it? Dive into our latest blog post to learn how VC firms operate, the investment lifecycle, and crucial considerations for your company's growth. Whether you're a founder weighing your funding options or seeking to decode your cap table, this guide is your roadmap to navigating the VC landscape effectively. Read More: https://bit.ly/4bnSZkv #VCMath #VCFund #VentureCapital #StartupFunding #BusinessGrowth #ShayCPA #cpafirm #techaccountants #startupaccountants #techstartup #techcompany

🚀 The Great VC reset: Lessons for Founders 💡 The world of Venture Capital witnessed a whirlwind in 2021, marked by abundant capital and sky-high valuations. in 2023 the VC market has undergone a significant reset, reshaping the dynamics for early-stage founders and investors alike. Great advice by James Murphy of Forum Ventures Here's a rundown of crucial insights: 📊 High-Stakes Peak Valuations: Investing during peak valuations can pose severe challenges for VCs. Inflated valuations demand higher returns from future investments to offset the impact on existing portfolios. For founders, it's essential to be cautious of misaligned incentives as VCs push for high-risk strategies to make up for past portfolio construction missteps. 🌊 Changing VC Support Dynamics: VCs promise founders money and support, but during bear markets, the focus tends to shift toward top-performing companies. Startups grappling with challenges might face less commitment, so founders should carefully choose VCs based on their track record and commitment level. 💼 VC Fund Viability at Stake: Up to 50% of seed-stage funds face possible closure in the next 12-18 months due to the current economic climate. Founders should assess past fund performance to gauge the likelihood of their VC partners being active in the future. 🔄 Rise of Insider Rounds: Insider rounds are on the rise, with VCs preferring to support existing portfolio teams rather than new ventures. Founders should aim for strong growth metrics to secure follow-on funding from existing investors. 🛑 Shift in Founder-Friendly Deals: The "founder-friendly" era is evolving, with investors demanding more favorable terms. Founders should be prepared to negotiate aspects like pro-rata rights, board structure, and liquidation preferences. 🧮 LPs' Buyer's Remorse: LPs are reevaluating their venture capital allocations, affecting the fundraising landscape. The influx of non-traditional VC investors adds complexity, and many VCs are grappling with raising their next fund. 📅 Extended Fundraising Timelines: VCs are now deploying capital cautiously over two- to three-year periods, leading to longer fundraising timelines for founders. Expect fewer deals and a more competitive meeting landscape. 💪 Embracing Change for Resilience: While the VC reset poses challenges, it's an opportunity for founders to build stronger startups. Find investors who genuinely understand your needs and adapt to the changing environment. Focus on resilience, ask tough questions, and forge partnerships that align with your success. For inquiries and free consultations about G+QUANT services, please contact Jasmina Ibrahimagic at jasmina@gplusquant.com       #VentureCapital #VentureFunding #VentureDebt #Fundraising #Innovation #Technology #Entrepreneurship #Investing #Network #Investors #LPs #GPs #FamilyOffice #Markets #Economy #Business #Founders #Startups #StartupFunding