Stuti Pandey’s Post

💥Exciting news from Kraken Ventures ! They're launching a new $100M fund And guess what? They're not just stopping at the first investment 💸 💡 The Hidden Power of Follow-On Investments: Fueling Success Beyond the First Check!" 🚀 ☑️Elevating Winners to Champions: Imagine a startup soaring to unimaginable heights. Follow-on investments, solidify victory. Additional capital becomes the backbone of growth, propelling the company higher in a competitive landscape. ☑️Signaling Confidence and Momentum: Leading by example matters. Follow-ons reveal faith in a company's potential. When lead investors back their words with follow-on capital, the positive message resonates, setting off a chain reaction in the investment world. ☑️Decoding Investor Perception: Pitching a brilliant company to new investors? Confidence wavers if you're not joining the next funding round. Regardless of reasons, hesitation casts doubt. If you're not investing further, why should they? ☑️Taming the Volatility Beast: Venture capital is a rollercoaster, and startups face unexpected challenges. Follow-on investments act as a safety net, providing resources to weather storms and stay on track. ☑️Beyond Funding: Navigating Valuation and Dilution: Investments impact valuation and dilution. Limited follow-on reserves mean tougher negotiations. Less follow-on capital can lead to earlier backers being diluted more than they'd prefer. Venture capital's secret weapon? Follow-on investments! They build trust, ensure stability, and ignite innovation. Don't just bet on the first check; bet on the journey. #technology #innovation #venturecapital #investing #investors #founders #entrepreneurs #entrepreneurship #fundraising #linkedin https://lnkd.in/deWht5AX

Silicon Valley’s premier venture firm undergoes ‘profound change’ after China splits and soured bets on FTX and Twitter LPs said the most consequential of Sequoia’s chief Roelof Botha’s changes is likely to be the success of a new investment vehicle called the Sequoia Capital Fund. Sequoia’s new fund, announced in 2021, breaks from VC mold by holding on to stock of companies even after an IPO, based on Botha’s conviction that certain tech stocks will continue to outperform long after going public. The fund — alongside a new accelerator programme for early stage companies called Arc — positioned Sequoia to provide companies with “permanent capital” throughout their lifetimes, according to LPs. Sequoia has rewarded LPs for their faith. A person with knowledge of the firm’s finances said that in the past four-and-a-half years, from just $2bn invested into start ups, it had distributed $34bn in cash and stock. So when the Sequoia Capital Fund launched in 2021, almost all LPs opted to roll their money into it. With the alternative being shut out of Sequoia’s future investments, some felt there was little choice.

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How To F*ck Up The Right Way 💩 Bessemer Venture Partners coined the "Anti-Portfolio" - a digital wall of shame honoring lost opportunities. Whether you are a VC, corporate leader or founder, building your Anti-Portfolio is worth the effort to learn and advance: 1️⃣ 𝗢𝘄𝗻 𝗶𝘁: 𝗗𝗲𝘁𝗲𝗰𝘁 𝗮𝗻𝗱 𝗮𝗰𝗸𝗻𝗼𝘄𝗹𝗲𝗱𝗴𝗲 𝗮 𝗺𝗶𝘀𝘁𝗮𝗸𝗲 2️⃣ 𝗔𝗻𝗮𝗹𝘆𝘇𝗲 𝗶𝘁: 𝗥𝗲𝘃𝗶𝗲𝘄 𝘄𝗶𝘁𝗵 𝗳𝗲𝗲𝗱𝗯𝗮𝗰𝗸 𝗮𝗻𝗱 𝗵𝗲𝗹𝗽 3️⃣ 𝗥𝗲𝗳𝗿𝗮𝗺𝗲 𝗶𝘁: 𝗘𝘅𝘁𝗿𝗮𝗰𝘁 𝘁𝗵𝗲 𝗴𝗮𝗽𝘀 𝗮𝗻𝗱 𝗹𝗲𝘀𝘀𝗼𝗻𝘀 4️⃣ 𝗦𝗼𝗹𝘃𝗲 𝗶𝘁: 𝗠𝗮𝗸𝗲 𝗮 𝗽𝗹𝗮𝗻 𝗮𝗻𝗱 𝗽𝘂𝘁 𝗶𝘁 𝗶𝗻𝘁𝗼 𝗽𝗿𝗮𝗰𝘁𝗶𝗰𝗲 5️⃣ 𝗥𝗲𝗽𝗲𝗮𝘁 𝗶𝘁: 𝗞𝗲𝗲𝗽 𝗮 𝗽𝗼𝘀𝗶𝘁𝗶𝘃𝗲 𝗮𝘁𝘁𝗶𝘁𝘂𝗱𝗲 𝘁𝗼 𝗹𝗲𝗮𝗿𝗻 2012, Brian Armstrong (Coinbase) emailed Ethan Kurzweil (BVP) about investing in their 10M valuation cap round: "What questions can I answer for you in the next two weeks that would cause you to invest in Coinbase?" The reply: “There’s really no questions you could answer that would cause me to invest!” Coinbase went public at $85.8 billion valuation. Kurzweil's take-away: “I was trying to wait until I had the perfect thesis to go to him, half the thesis would have been fine”. Ethan later went on to spearhead the $250M dedicated funding for web3. The moral: Don't let mistakes define you, you can f*ck up and still be highly successful - as long as you are willing to learn and keep moving. #foundersjourney #venturecapital #startup #funding #fundraising

Announcing the Launch of Auros Ventures We are thrilled to unveil Auros Ventures, a bold new initiative designed to navigate the intricate dynamics of the crypto market through strategic investments across the liquidity and duration spectrum. In the crypto world, short-term volatility and long-term value creation are intricately intertwined. Unlike traditional markets, where these risks can be managed independently, the crypto market demands seasoned expertise and a comprehensive risk management approach that cannot be developed overnight. At Auros, our evolution from High-Frequency Trading (HFT) to venture investing showcases our unique ability to manage these intertwined risks seamlessly. Traditional venture firms and new VC funds entering the token space often lack the trading experience necessary to handle the complexities of the crypto market. While they may seek token upside, their ability to manage associated risks beyond short-term gains is limited. Auros Ventures bridges this gap. Our approach combines the crypto market's inherent risks with the specialised capabilities required to manage them. Venture investing is a natural extension of our expertise, leveraging Auros’ distinctive advantage in long-term crypto investments. Julien Auchecorne, a seasoned finance and digital assets expert, is leading Auros Ventures. He has held roles at XBTO, J.P. Morgan, and Brevan Howard. As Head of Auros Ventures, Julien will work closely with Auros's Founder and CIO, Benjamin Roth, to guide the VC arm in deploying capital and supporting innovative startups in digital assets and Web3. Join us as we embark on this exciting journey, forging new paths and unlocking value in the ever-evolving crypto landscape. #AurosVentures #CryptoInvestment #VentureCapital #CryptoMarket

Great conversation for Ep 12 of Inside the Hutt with Kenny Rowe and Nick Simmons from Octu Ventures (https://octu.ventures/) to discuss all things Urbit and venture DAOs. Topics included: -Kenny & Nick's history including early work in the Urbit ecosystem -What is Urbit and why is it an interesting category for startup investing -Why has developer and investor activity picked up around Urbit -What is the overlap between Urbit and crypto -Octu's investment strategy and focus -How Octu is structured as an investment DAO and the benefits of utilizing this approach vs. traditional GP/LP structure -Octu's incubation from Hydra Ventures Apple: https://lnkd.in/gbpdvYYe Spotify: https://lnkd.in/gSWUQWii Hutt Capital

Discover how crypto-related ventures are securing a substantial $1.9B in funding, with leading platforms like Wormhole achieving remarkable valuations and backing from giants like @CoinbaseVentures. #CryptoInvestment #VentureCapital #BlockchainTechnology

This is how crypto venture capitalists lost their edge: Protocol Ventures, The largest crypto and web3 venture capital firm went belly up last year and now, Dragonfly ventures as well as smaller specialized firms like Morningstar are also facing the heat. How did this happen ? The answer is "token sales". You see, a few web3 startups had an idea, to create their own crypto/decentralised block chain tokens and sell them instead of diluting equity to raise funds. Why did venture capitalists agree to this clearly bad idea ? 1) Greater liquidity, making exit strategies easier and more profitable. 2) The self fulfilling prophecy of buying tokens ⏩ price rising⏩ rising price attracting more investors ⏩ even higher prices. All in a matter of months. The greed in the ecosystem reached a level where crypto startups themselves started buying each other's tokens oftentimes partnering up with venture capitalists who were investors in their company, diverting crucial funds from operations. Everything went wrong as soon as the crypto market started collapsing, starting a market cascade where the collapse of one company led to investors being long squeezed in another company due to the sheer speed of firms exiting positions. The saddest part of this entire story ? Some of these startups were revolutionary, bringing liquidity solutions, API's and derivative contracts traders have been crying about for years. As always the greed from institutions and startups killed innovation. #cryptocommunity #privateequity

Very interesting: In a terrain where venture capital firms are treading water, Sequoia Capital has showcased a commendable defiance. While an industry-wide IRR of -16.8% for the year ended Q1 painted a bleak picture, Sequoia marked up 15 of its funds by an average of 9.2%, contrasting sharply against the narrative of many peers. Yet, not all glitters in Sequoia's journey. The hiccup with FTX, where a $150 million investment evaporated, raises a brow on the due diligence front, a reminder that even the mighty can have an off day. Despite the FTX misadventure and some Indian portfolio jitters, Sequoia has demonstrated a robust strategy. The $7.5 billion in realized and unrealized gains cushioning the FTX misstep, alongside a resilient 21.8% IRR boasted by Sequoia Capital Global Growth Fund III, underlines a narrative of adept recovery. The firm's strategic manoeuvre of segregating its US, Europe, China, and India units into distinct entities, coupled with marked-up values in most China and India funds, unveils a blueprint of resilience. This is Sequoia Capital, standing tall amidst market turbulences, akin to the towering tree it's named after. Its saga continues to be an inspiring chronicle in the VC realm, affirming why it remains one of the world's most storied and successful VC firms, continually acing the test of time. #VentureCapital

Venture capitalists are now insisting on board seats in portfolio startups due to the recent increase in failures and governance issues seen in startups. What the numbers say: Telstra Ventures general partner Yash Patel said, "Every major investor is now asking for a board seat, versus 2021 when you had maybe 50% [requesting a seat]." Investors had previously relaxed board seat criteria in the boom investment cycle of 2021 due to the fear of missing out on good deals, as there were a lot of investors competing for funding rounds. Relevance: The situation has changed since the VC funding pullback that started in 2022. Due to the slump, the average number of investors participating in funding rounds has now fallen from 5.2 in 2021 to 3.5 in 2023. The current value is the lowest in a decade. What happened: The downfall of FTX highlighted the importance of having board seats — with hindsight, investors have realized that closer oversight might have prevented the fallout of the defunct cryptocurrency exchange. Considering OpenAI's recent boardroom power struggles that led to the ousting and reinstating of CEO Sam Altman, its largest investor, Microsoft, joined the board in the non-voting observer role.