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Navigating the financial intricacies of your startup can be as crucial as your next big idea. Among these, understanding capital calls is fundamental. This article will delve into what a capital call is, its triggers, benefits, and the challenges it may pose. Whether you're preparing for your first round of funding or looking to refine your financial strategies, our insights will help you manage capital calls effectively, ensuring that your venture remains well-funded and resilient in the face of evolving business demands. Get ready to equip yourself with the knowledge every founder needs to handle financial commitments confidently. What is a Capital Call? A capital call, also known as a "drawdown," is a legal mechanism investment funds use to secure investment commitments from their partners or investors, particularly in private equity or real estate. When investors commit to a fund, they do not typically transfer all their committed funds upfront. Instead, these funds are "called" or requested as needed over the life of the investment. This process allows the fund to request funds from investors as they identify appropriate investment opportunities or need to cover expenses. For startup founders, understanding this concept is vital as it directly affects your business's cash flow and financial planning. By adhering to the stipulations of a capital call, you ensure that your business can access necessary funds quickly, maintaining liquidity and operational stability as opportunities or challenges arise. The Importance of a Capital Call As we explore the dynamic landscape of startup financing, the role of capital calls becomes increasingly significant. Understanding their strategic importance can transform how you manage and leverage investor commitments to fuel your business's growth. Capital calls are crucial for maintaining your startup's financial health and operational momentum. They provide a structured way to incrementally secure funding, which can be particularly beneficial in managing cash flow and ensuring that funds are available when needed. For startups, this means being able to react swiftly to market opportunities or unexpected challenges without the pressure of having full investor funds on hand at all times. Additionally, capital calls demonstrate to investors your commitment to prudent financial management and project execution. Funds are used judiciously and only drawn down as required to achieve business objectives. This method of funding not only helps smooth financial operations but also builds trust with investors, showing that their capital is being managed responsibly. Related resource: A Quick Overview on VC Fund Structure What Triggers a Capital Call? Capital calls are not arbitrary; they are triggered by specific needs within the fund's operation or investment strategy. Typically, these needs arise from investment opportunities aligning with the fund’s objectives or operational expenses requiring immediate funding. For example, a capital call may be issued when a fund has agreed to invest in a promising startup or is part of a consortium buying a significant asset, like real estate or another company. The timing is crucial—funds are requested to seize these opportunities swiftly and effectively. Operational costs, such as development projects, marketing initiatives, or expansion plans, can also trigger a capital call, ensuring the fund has the liquidity to support these activities. Real-Life Example: A notable instance of a capital call occurred with the SoftBank Vision Fund. In 2019, amidst various large-scale investments in technology companies, SoftBank reportedly made frequent capital calls to its investors, such as Apple and Foxconn, to provide the necessary funding to support its ambitious investment strategy. This was crucial for maintaining the pace of investment and ensuring that the fund could capitalize on strategic opportunities as they arose. Such instances highlight the importance of capital calls in maintaining investment momentum and fulfilling the fund's strategic objectives. Key Benefits of a Capital Call Understanding the benefits of capital calls can significantly enhance your strategic approach to funding and investor relations. These benefits optimize financial operations and build robust pathways for sustainable growth and investor confidence. Here are some key benefits of capital calls for startups: Flexibility in Fund Utilization: Capital calls allow startups to request funds as needed rather than holding large amounts of cash on hand. This flexibility helps manage cash flow efficiently and reduces the cost of capital. Timely Access to Funds: Capital calls provide quick access to committed funds when opportunities or needs arise. This ensures startups can act swiftly on business opportunities or cover unexpected expenses without delay. Enhanced Credibility with Investors: Regular and strategic use of capital calls demonstrates to investors that their capital is being managed responsibly. It shows that funds are being deployed in a way that is aligned with the business’s growth strategy and not lying idle. Strategic Growth Opportunities: With access to capital as needed, startups can strategically pursue growth opportunities that require immediate investment. This can be crucial for staying competitive and scaling operations in a timely manner. Challenges of a Capital Call While capital calls are vital tools for managing funding within a startup, they also come with their own set of challenges. Founders should recognize these potential hurdles to better prepare and navigate them effectively. Here are some of the key challenges associated with capital calls: Potential for Investor Dissatisfaction: If capital calls are made too frequently or perceived as unplanned, they can lead to investor dissatisfaction. Investors might feel their funds are not being managed efficiently, which can impact their trust and future willingness to invest. Timing and Cash Flow Issues: There can be a mismatch between the timing of a capital call and the availability of funds from investors. This can create cash flow challenges, particularly if the capital is needed urgently for project continuation or to seize a market opportunity. Complexity in Administration: Managing and administering capital calls involves significant logistical coordination, especially with a large group of investors. This can increase startup administrative burdens and costs, diverting attention from core business activities. Legal and Compliance Risks: Each capital call must adhere to the terms outlined in the investment agreement. Failure to comply with these terms can lead to legal challenges or breaches of contract, posing substantial risks to the business. Update Your Investors Easily With Visible This article explored the complexities and strategic importance of capital calls within a startup's financial landscape. From understanding what triggers a capital call to recognizing its benefits and challenges, it's clear that managing investor relations and funding efficiently is crucial for sustainable growth. Effective communication with investors is key to navigating these challenges. To streamline your investor updates and manage capital calls smoothly, consider using Visible, a tool designed to help you communicate effectively with your financial stakeholders. Enhance your financial operations and maintain strong investor relations by signing up today. Create your account on Visible and start managing your investor communications more efficiently. Related resource: How To Write the Perfect Investor Update (Tips and Templates)

Navigating the complexities of investor agreements is crucial for startup founders aiming to secure crucial funding while protecting their interests. This article will guide you through the essentials of crafting a solid investor agreement, highlighting key components like investment terms, company valuation, and exit strategies. You'll learn not only what makes up an investor agreement but also how to tailor one to fit your startup's unique needs, ensuring a clear path to successful investor relationships. What Is an Investor Agreement? An investor agreement is a legal contract between an investor and a company that outlines the terms of the investment. It specifies the roles, expectations, and obligations of both parties, ensuring that the investor's financial contributions are protected and that the company uses the funds as agreed upon. There are several types of investor agreements commonly used in business, each tailored to different investment scenarios: Stock Purchase Agreement: This type of agreement is used when investors purchase shares directly from the company, giving them ownership according to the percentage of stock acquired. Convertible Note Agreement: Often used in early-stage startups, this agreement allows the investment to initially be a loan that converts into equity, usually after a subsequent financing round or under certain conditions outlined in the agreement. Simple Agreement for Future Equity (SAFE): Popular among startups for its simplicity and flexibility, a SAFE grants investors the right to convert their investment into equity at a later date, typically during a future funding round. Restricted Stock Agreement: This agreement governs the issuance of shares that are subject to certain restrictions, typically vesting over time and providing that shares must be sold back to the company under certain conditions. Debt Agreement: When startups prefer not to give up equity, they might opt for debt agreements where the investor lends money to the business, to be repaid with interest by a specified date. Each type of agreement has its nuances and must be chosen carefully based on the company’s specific needs and the investor's expectations. It’s crucial for founders to understand these distinctions to choose the most appropriate form of agreement for their circumstances​​​​. Key Components of an Investor Agreement Template When structuring an investor agreement, it's essential to include comprehensive and detailed sections that address every aspect of the investment relationship. This clarity not only safeguards both parties' interests but also ensures smooth cooperation throughout the duration of the agreement. Below, we delve into the key components that should be part of any investor agreement template, each playing a crucial role in fostering a transparent and effective partnership. Related resource: A Complete Guide on Founders Agreements 1. Preliminary Information The foundation of any investor agreement begins with the preliminary information, which includes all the basic and identifying details such as the names, addresses, and legal statuses of the parties involved, as well as the date of the agreement. This section sets the legal context for the agreement and acts as a reference point for all parties involved, ensuring there is no ambiguity about who is bound by the terms of the document. 2. Investment Details Specifying the investment details is critical. This includes the amount of investment, the form it will take (whether cash, assets, or services), and any conditions or milestones that must be met before the investment is realized. Clear articulation of these details prevents misunderstandings and sets clear expectations for the deployment of the investment, which is vital for both parties’ financial planning and accountability. 3. Company Valuation and Capital Structure It's important to clearly outline how the company is valued and how its capital structure will be affected post-investment. This information sets the stage for determining ownership percentages and the distribution of equity. Transparency in this area reassures investors about the basis of their investment valuation and aligns all parties’ expectations regarding their stakes. 4. Roles and Responsibilities Defining the specific roles and responsibilities of both the investor and the startup is crucial for maintaining clear expectations and accountability. This section should detail the commitments of each party, including any operational roles the investor might assume, and their involvement in decision-making processes. Clarity here ensures smooth day-to-day operations and helps prevent conflicts. 5. Terms of Investment The terms of investment outline the specifics of the financial relationship, such as the rights to dividends, conversion rights, and voting rights. This section is fundamental as it delineates how profits and losses are distributed, how and when investments might be converted into equity, and how investors can influence company decisions through their votes. 6. Governance and Voting Rights Governance structures and voting rights are essential for outlining how decisions are made within the company, who gets to vote, and what issues require a vote. This framework is key to maintaining order and clarity in the company's decision-making processes, particularly in scenarios involving multiple investors with varying stakes. 7. Exit Strategies Planning for future changes in ownership or the potential exit from the company is crucial. This part of the agreement might include buyback rights, rights of first refusal in case of sale, and other mechanisms that allow for a smooth transition or exit. Having these strategies predefined helps manage expectations and reduces potential conflicts during critical transitions. 8. Confidentiality and Non-Disclosure To protect the sensitive information of both the startup and the investor, confidentiality and non-disclosure clauses are critical. These provisions help build trust, protect trade secrets, and ensure that strategic information does not fall into competitors' hands. 9. Dispute Resolution Finally, having a predetermined method for resolving disputes is crucial for handling disagreements efficiently and fairly. This section should specify whether disputes will be handled through mediation, arbitration, or court proceedings, and outline the steps each party should follow in the event of a disagreement. Related resource: What Should be in a Startup’s Data Room? How Do You Write an Investor Agreement? Drafting an investor agreement is a critical step for any startup engaging with investors. This document not only formalizes the relationship between a company and its investors but also ensures that both parties are clear on the terms of the investment. Below, we detail the essential steps involved in creating a robust investor agreement that secures interests and fosters a positive business relationship. Gathering Information and Structuring the Agreement The first step in drafting an investor agreement is to collect all necessary information about the investment and the parties involved. This includes details about the investment amount, the structure of the investment (e.g., equity, debt), and the specific roles and obligations of each party. Accurate and comprehensive information is crucial as it forms the basis of the agreement, ensuring that all terms are based on a clear understanding of the investment and the expectations of both parties. This foundational step prevents future misunderstandings and lays the groundwork for a solid legal agreement. Involving the Right Parties It is essential to identify and involve all relevant parties in the agreement process. This includes not only the investors and company founders but also may include lawyers, accountants, and other stakeholders who have a vested interest in the transaction. Ensuring that all parties are appropriately represented and that their roles and expectations are clearly defined from the outset is crucial. This clarity helps in avoiding conflicts later and ensures that the agreement reflects the interests and responsibilities of everyone involved. Drafting Key Clauses The heart of the investor agreement lies in its clauses, which detail the terms of the investment, rights, and obligations of the involved parties. Key clauses include those related to the amount and structure of the investment, conditions for funding, management and use of the investment, investor rights, and any specific covenants related to company governance. Each clause must be drafted with clarity and precision to avoid ambiguity and ensure that the terms are enforceable. Legal expertise is often required in this phase to ensure that the clauses are legally sound and adequately reflect the agreed-upon terms. Negotiation and Finalization Once a draft of the investor agreement is prepared, the negotiation phase begins. During this stage, both parties review the draft, suggest modifications, and discuss any concerns they might have with the proposed terms. This phase is crucial as it allows both sides to refine the agreement to better meet their needs and to ensure mutual understanding and satisfaction with the terms. After negotiations are completed, the final agreement is prepared for signing. It is advisable for both parties to have legal counsel review the final document to ensure that it is comprehensive and legally binding. Related resource: The Startup's Handbook to SAFE: Simplifying Future Equity Agreements Build Strong Investor Connections with Visible Crafting a solid investor agreement is key to protecting the interests of both the startup and its investors. Establishing clear terms and open lines of communication from the outset can significantly enhance these critical business relationships. To manage and enhance investor relations with ease and efficiency, try Visible. By using Visible, you can streamline investor communications, track important metrics, and report progress efficiently, keeping your investors engaged and informed. Ready to take your investor relations to the next level? Try Visible free for 14 days and start strengthening your investor connections.

Crowdfunding has revolutionized the way startups and social initiatives gather the necessary funds to bring their ideas to life. This article will explore the intricacies of crowdfunding, delving into its various types and the unique benefits and challenges they present. Whether you're a founder looking to kickstart your project or simply curious about how crowdfunding could play a role in your financial strategy, read on to discover the ins and outs of this dynamic funding mechanism. What Is Crowdfunding, and Why Is It Important? Crowdfunding is a method of raising capital through the collective effort of friends, family, customers, and individual investors. This approach taps into the collective efforts of a large pool of individuals—primarily online via social media and crowdfunding platforms—and leverages their networks for greater reach and exposure. Crowdfunding is vital not only as a tool for gathering financial resources but also for validating a product or service in the market, engaging with customers, and building community support​​​​. Three of the most popular crowdfunding platforms include: Kickstarter- The platform operates on an all-or-nothing funding model, which means that project creators only receive funds if their campaign reaches its predetermined funding goal. This model encourages creators and founders to set realistic goals and actively promote their projects to ensure success. Indiegogo- Known for its flexibility, it supports a wide range of campaigns from tech innovations to artistic endeavors. The platform is distinct for allowing both fixed and flexible funding goals, making it a versatile choice for project creators who may still benefit from partial funding if they do not meet their full target. Patreon- Patreon stands out among crowdfunding platforms because it caters to creators seeking continuous funding rather than one-time project support. This makes it particularly popular with individuals involved in ongoing creative endeavors such as musicians, YouTubers, podcasters, and filmmakers. Related resource: How to Raise Crowdfunding with Cheryl Campos of Republic The Pros and Cons of Crowdfunding Crowdfunding offers unique opportunities and benefits for startups and projects, but it also comes with its set of challenges. In the next section, we will delve into the pros and cons of crowdfunding, providing a balanced perspective that will help founders understand what to expect and how to prepare for a successful campaign. Pros of Crowdfunding Pre-Launch Interest and Momentum: Crowdfunding allows founders to generate buzz and interest in a product or service before it officially launches. This pre-launch momentum can be crucial in establishing a brand and ensuring a successful market entry​​. Market Validation: Crowdfunding campaigns allow investors to gauge customer interest and validate the market demand for a product or service before it fully hits the market. This can reduce the financial risks associated with launching new and untested products​​. Risk Reduction through Pre-Sales: By using crowdfunding platforms to pre-sell products, founders can reduce financial risks associated with production and inventory. This approach ensures that there is a market demand before significant investments are made​​. Marketing and Publicity: Crowdfunding campaigns can serve as powerful marketing tools, providing significant media exposure and public attention that can continue to benefit the project long after the campaign has ended​​. Direct Customer Feedback: Crowdfunding offers a unique opportunity for founders to receive direct feedback from early adopters. This feedback can be invaluable for making adjustments to the product or service before it hits the broader market​​. Building a Loyal Community: Crowdfunding not only raises funds but also helps in building a community of supporters who are emotionally and financially invested in the success of the project. This community can become a vital asset for future promotions and continued business growth​​​​. Access to Capital: Crowdfunding provides a platform to raise significant amounts of money without the need for traditional financial intermediaries such as banks or venture capital firms. This can be especially useful for startups and small businesses that may not have access to traditional funding sources​​. Cons of Crowdfunding High Competition: The popularity of crowdfunding platforms means that numerous projects are vying for the same pool of potential backers. Standing out among the crowd requires a compelling story and effective marketing strategies, which can be challenging and resource-intensive​​. Fulfillment Pressures: Successfully funded projects face the pressure of fulfilling backers' rewards and expectations. This can be particularly challenging if the campaign goes viral and the number of backers exceeds initial forecasts, complicating logistics and potentially increasing costs​​. All-or-nothing Funding Models: Many crowdfunding platforms operate on an all-or-nothing funding model, where you must reach your funding goal to receive any money. Falling short means no funding at all, which can be a significant risk if you've already invested in campaign marketing and product development​​. Public Exposure of Ideas: When you pitch a project on a crowdfunding platform, you expose your business idea or concept to the public, which includes potential competitors. This can lead to issues if the intellectual property is not fully protected or if the concept is easily replicable​​. The 4 Different Types of Crowdfunding As you explore the world of crowdfunding, it's essential to understand the different types that are available. Each type offers unique advantages and fits different kinds of projects and goals. Below, we delve into the four primary types of crowdfunding: donation-based, equity-based, rewards-based, and debt-based. Choosing the right one can be critical to your campaign’s success. Related resource: 6 Types of Investors Startup Founders Need to Know About 1) Donation-Based Crowdfunding Donation-based crowdfunding is exactly what it sounds like – backers donate money without expecting anything in return. This model is primarily used for charitable causes or community projects where the reward is the satisfaction of contributing to a good cause. When to Use This Method of Crowdfunding This method is ideal for non-profit organizations, social causes, or community projects where monetary return isn't an expectation. It's particularly effective when the audience is motivated by philanthropy rather than a tangible return​​. 2) Equity-Based Crowdfunding Equity-based crowdfunding involves offering a stake in your company in exchange for capital. This means investors receive shares of your business and become partial owners. It’s a way to raise significant funds while distributing the financial risk among a group of investors. When to Use This Method of Crowdfunding Use equity-based crowdfunding when you need substantial capital and are comfortable sharing ownership of your company with investors. It is suitable for startups that expect to grow and generate significant revenue, making the equity stake potentially valuable​​. 3) Rewards-Based Crowdfunding Rewards-based crowdfunding allows backers to contribute in exchange for tangible rewards, which can vary from the product itself to other unique perks. This type is popular among creative projects and startups that wish to offer their product as a pre-sale. When to Use This Method of Crowdfunding This method works best for consumer-focused projects where you can offer your product as a reward to backers. It's suitable for validating product demand before mass production and engaging with your customers directly​​. 4) Debt-Based Crowdfunding Also known as peer-to-peer (P2P) lending, debt-based crowdfunding allows individuals to lend money to a project or business with the expectation of getting their money back with interest. It mirrors traditional loans but from multiple lenders at potentially more favorable terms. When to Use This Method of Crowdfunding Debt-based crowdfunding is appropriate for founders who need traditional loan conditions but prefer a broader base of lenders to minimize risk. It is also beneficial when founders can ensure a steady revenue stream to manage repayments​​. Crowdfunding vs Traditional Fundraising: What are the Differences? Crowdfunding and traditional fundraising serve the same primary purpose—raising money—but differ significantly in their approach and execution. Traditional fundraising typically involves seeking substantial sums from a few donors, such as angel investors, venture capitalists, or banks, and often requires a detailed business plan, credit checks, or proven business history. It can be a lengthy process with a lot of personal interaction and persuasion. In contrast, crowdfunding is usually conducted online and aims to gather smaller amounts of money from a large number of people. This method leverages the power of social networks and is accessible to anyone with an internet connection. Crowdfunding campaigns provide immediate feedback and market validation, as they allow the entrepreneur to gauge interest in a product or concept before fully committing to production or scaling. Moreover, crowdfunding can offer more than just financial benefits; it can also provide publicity, community engagement, and customer feedback​​​​. These fundamental differences make each method suitable for different types of projects and funding needs, with crowdfunding often being more accessible and engaging, while traditional fundraising can offer more significant amounts of capital and potentially fewer stakeholders to manage. Related resource: How to Secure Financing With a Bulletproof Startup Fundraising Strategy Fundraise the Right Way With the Help of Visible Crowdfunding not only helps raise the necessary funds for your venture but also connects you with a community that can offer support and feedback. If you are also interested in finding traditional investors and accelerators check out our Connect Investor Database. Instead of wasting time trying to figure out investor fit and profile for their given stage and industry, we created filters allowing you to find VCs and accelerators who are looking to invest in companies like you. Check out all our investors here and filter as needed. As you embark on your fundraising journey, consider leveraging platforms like Visible to streamline your efforts. After finding the right Investor you can create a personalized investor database with Visible. Combine qualified investors from Visible Connect with your own investor lists to share targeted Updates, decks, and dashboards. Start your free trial here.

Venturing into the startup ecosystem can be as thrilling as it is daunting, especially when securing venture capital funding. One critical element in this journey is mastering the art of crafting an effective investor agreement. Whether new to being an entrepreneur or gearing up for your next funding round, understanding the nuances of investor agreements can significantly impact your business's future. In this guide, we'll walk you through investor agreements, their types, what they should include, and how to negotiate them to best protect and leverage your interests. Get ready to empower yourself with the knowledge to secure funding while safeguarding your visionary endeavors. What Is an Investor Agreement? An investor agreement is a foundational document that outlines the terms, conditions, and mutual commitments between a startup and its investors. In the realm of startups and venture capital, this agreement serves as a formal contract that specifies the amount of investment provided, equity stakes, responsibilities of each party, and the protective clauses for both investors and the company. It ensures both parties are clear about the expectations and the structure of the investment, making it essential for maintaining harmony and clear communication as the business grows. This document governs the financial relationship and often addresses operational roles, providing a framework for decision-making and future financial interactions. Related resource: A Complete Guide on Founders Agreements Is an Investor Agreement the Same as a Shareholder Agreement? While both investor agreements and shareholder agreements are pivotal in business operations, they are not the same and serve distinct purposes. An investor agreement is specifically designed for scenarios involving new investments, focusing on the terms that govern a particular investment round. It typically includes details about the investment amount, equity distribution, investor rights, and specific conditions tied to the funding. On the other hand, a shareholder agreement is a broader document that encompasses the overall relationship among all shareholders of a company. This agreement is intended to manage the interactions among shareholders and outline the general operations of the company. It often covers voting rights, transfer of shares, dispute resolution, and the management of daily operations and future sales of the company. Thus, while there may be overlap, such as provisions concerning equity and voting rights, the investor agreement is transaction-specific, focusing on the terms related to a particular investment. While, the shareholder agreement is a comprehensive guideline that applies to all shareholders, setting the stage for the company’s governance and shareholder relations over time. Related resource: The Startup's Handbook to SAFE: Simplifying Future Equity Agreements Common Types of Investor Agreements Navigating the landscape of venture capital requires a sound understanding of the various types of investor agreements that shape the financial and operational structure of a startup. These agreements are pivotal in defining the terms of partnership between investors and the company, each tailored to address specific aspects of the investment and company governance. Below, we outline some of the most common types of investor agreements, providing clarity on their purpose and implications. Term Sheet: Often the first formal document presented in the investment process, the term sheet outlines the basic terms and conditions under which an investor will invest in a startup. It is not typically legally binding (except for specific provisions like confidentiality and exclusivity) but serves as a foundation for more detailed legal documents that follow. Key elements include the amount to be invested, the valuation of the company, and the rights assigned to the investor. Shareholders Agreement: This document goes beyond the basic investment terms to detail the relationship among all shareholders and the company's management. It includes provisions on the transfer of shares, voting rights, and how decisions are made within the company. It protects the rights of all shareholders, large and small, and ensures that everyone operates under the same set of expectations. Conversion Rights: These rights are particularly relevant in agreements involving convertible notes or preferred shares. Conversion rights specify when and how these securities can be converted into common stock, usually during specified events such as a subsequent funding round or a public offering. This clause is crucial for investors seeking to capitalize on the company's growth by eventually converting their initial investment into equity. Vesting Schedules: Common in both investor agreements and employment contracts within startups, vesting schedules determine how and when stock options or shares allocated to the founders and employees become fully owned (vested). They are designed to incentivize longevity and commitment, typically requiring individuals to remain with the company for a certain period before gaining full equity ownership. What Should an Investor Agreement Include? Crafting an investor agreement involves meticulous attention to detail across several key components that safeguard the interests of the startup and its investors. This document is not just a financial agreement but a strategic blueprint that guides the relationship and expectations on both sides. From investment specifics to governance, financial terms, exit strategies, and legal protections, each aspect of the agreement must be carefully defined to ensure clarity and avoid potential disputes. Here’s what to consider including in an investor agreement to lay a solid foundation for the future. Investment Terms The investment terms are the cornerstone of any investor agreement, establishing the financial relationship between the startup and its investors. It's crucial to clearly define: Investment Amount: Specify the total amount of money the investor will provide. This impacts the company's capital structure and operational capabilities. Valuation Methods: How the company's value is assessed affects the equity given to investors. Different valuation methods can yield different results, so choosing and agreeing on the correct method is vital. Dilution Terms: These terms outline how an investor's percentage ownership might decrease due to the issuance of new shares in future funding rounds. Clarity here helps manage expectations regarding the investor's stake over time. Governance Governance in investor agreements addresses the oversight and strategic direction of the startup, emphasizing the roles and powers of the board, the investors, and the founders: Board Composition: Define who gets a seat at the table and the balance of power between founders and investors. This can significantly influence company decisions. Voting Rights: Specify the voting mechanisms and rights attached to different classes of shares. This is essential for making critical decisions that affect the company’s future. Founder Roles: Clearly outlining the roles and responsibilities of the founders ensures they have defined duties and a voice in major company decisions. Financial Terms Financial terms in an investor agreement dictate how profits and losses are distributed and how financial operations are handled: Dividend Rights: These rights determine if and when dividends will be paid out to shareholders, which can influence investor interest and satisfaction. Liquidation Preferences: In the event of a sale or dissolution of the company, these preferences outline who gets paid first and how much, prioritizing certain investors over others. Anti-Dilution Provisions: These provisions protect investors from losing value in their investments in case of future equity raises at a lower valuation than what was initially agreed. Exit Strategies Exit strategies are vital for planning the possible conclusions of the investment relationship: Buyback Clauses: Allow the company to repurchase shares from the investors, giving control over when and how investors can exit. Tag-Along and Drag-Along Rights: Ensure that minority shareholders have the right to join in (tag-along) or compel others to join (drag-along) a sale of the company, protecting their interests during major transactions. Legal Protections Legal protections in an investor agreement safeguard against various risks and ensure compliance with applicable laws: Warranties: Assurances given by the company regarding its status and the veracity of information provided to investors. Indemnities: Protect investors from financial losses resulting from specific legal issues connected to the company. Conditions Precedent: Terms that must be met before the investment is fully activated, ensuring that certain benchmarks or conditions are satisfied. How to Draft an Investor Agreement Step-by-Step Drafting an investor agreement is a critical process that requires careful consideration and detailed planning. This document not only formalizes the investment but also sets the stage for the relationship between the startup and its investors. By following a systematic approach, founders can ensure that the agreement comprehensively covers all necessary aspects, thereby safeguarding both parties' interests and laying a firm foundation for future growth. Let’s walk through the steps to draft an investor agreement effectively. 1. Preliminary Considerations The initial stage of drafting an investor agreement involves understanding its purpose and scope. It's essential to clearly identify: Purpose of the Agreement: Define what you want to achieve with the investment. Is it for scaling operations, product development, or entering new markets? Parties Involved: List all entities and individuals involved in this agreement, including the startup, any co-founders, and all investors. Type of Investment: Determine whether the investment will be in the form of equity, a convertible note, or another structure. Each type has different implications for both parties. This groundwork is crucial as it shapes the rest of the agreement and ensures that all participants are clear about the basics before moving forward. 2. Define the Terms of the Investment These elements define the financial engagement and ensure both parties are aligned on the terms of the financial involvement. Specifying the terms of the investment involves detailing the following: Investment Amount: State the total amount of money the investors will contribute. Structure of the Investment: Outline whether the investment will be made in one lump sum or in tranches based on milestones. Valuation of the Company: Agree on how the company is valued, which will influence the equity offered to investors. Intended Use of Funds: Describe how the investment will be used, which helps in aligning investor expectations with company plans. 3. Outline Rights and Obligations Clarifying these points prevents misunderstandings and establishes a transparent operational relationship. It is vital to articulate clearly the rights and obligations of each party: Investor Rights: These include voting rights, inspection rights, and the right to participate in future funding rounds. Company Obligations: Detail the company's obligations to investors, such as regular financial reporting, adherence to agreed-upon business strategies, and maintaining certain performance metrics. 4. Include Key Provisions Including key provisions is essential for defining the operational and governance framework of the agreement. These provisions safeguard interests and provide a guideline for managing the company and the investment: Governance Structures: Set up the composition and powers of the board of directors. Dividend Policies: Outline if and when dividends will be issued to shareholders. Exit Strategies: Define the conditions under which the company can be sold, and the investors can exit. Confidentiality Terms: Ensure both parties agree on what information remains confidential and how it is handled. 5. Draft Protective Clauses for Both Parties Protective clauses are critical for minimizing risk and protecting the interests of both parties. These clauses ensure that all parties have legal recourse and that the investment is protected against unforeseen issues: Representations and Warranties: Ensure that all parties are accurately representing their status and the state of their businesses. Conditions Precedent: Specify any conditions that must be met before the investment is finalized. Dispute Resolution Mechanisms: Establish how disputes will be resolved, selecting arbitration or litigation preferences and applicable law. 6. Finalize the Agreement Ensuring thorough review and legal oversight helps prevent future legal complications, making this step critical to the successful conclusion of the drafting process. Review and Revision: Have all parties review the draft and make necessary revisions. This may involve several rounds of negotiation. Legal Oversight: Engage legal professionals to ensure that the agreement complies with all relevant laws and regulations. Signing and Execution: Once finalized, have all parties sign the agreement, and execute it to make it legally binding. Tips for Negotiating an Investor Agreement Negotiating an investor agreement is a critical skill for startup founders. It requires a deep understanding of both your company's needs and the dynamics of the investment market. This negotiation process is not just about securing funds but also about setting up a partnership that supports the company's long-term success. Here are some practical tips to help you negotiate effectively, ensuring that the terms meet your business goals and align with investor expectations. Have a Clear Understanding of Your Startup's Valuation Knowing your startup's current market value is crucial in negotiations. A well-supported valuation gives you the leverage to discuss equity stakes and investment terms with confidence. Understand different valuation methods, such as discounted cash flows or comparables from your industry, to justify your company's worth. This knowledge prevents undervaluation and helps you articulate your business's potential effectively, ensuring that investment terms are fair and reflective of your startup's true value. Research Industry Standards Familiarity with common terms and conditions in your sector is invaluable. This knowledge helps set realistic expectations and provides benchmarks against which you can measure offers. Research what similar companies in your industry have agreed to in terms of equity, dividends, and other key contract terms. Being informed about industry standards not only strengthens your negotiating position but also helps ensure that the terms you agree to are competitive and equitable. Seek Legal and Financial Advice Never underestimate the importance of professional advisors in the negotiation process. Legal and financial experts can clarify the implications of the terms being negotiated and help you navigate the complexities of investor agreements. They ensure that the agreement complies with relevant laws and protect your interests by identifying potential risks in proposed terms. This professional input is crucial for making informed decisions and securing an agreement that supports your company’s interests. Consider the Long-Term Implications of Each Term Each term in an investor agreement can significantly impact your company's future trajectory. Carefully evaluate how terms related to governance, exit strategies, and financial commitments could affect your business's growth and operational freedom. Consider scenarios like future funding rounds, potential acquisition offers, and changes in the management structure. This foresight will help you negotiate terms that support your long-term business strategy and provide flexibility as your company evolves. Leverage Competing Offers If you have multiple investment offers, use them to your advantage. Competing offers can significantly strengthen your negotiating position, potentially leading to better terms. Transparently communicating the interest from various investors can create a sense of urgency and competition among potential investors, often resulting in more favorable terms for your startup. Focus on Building Relationships View negotiations as the beginning of a long-term relationship with your investors. Establishing a positive rapport can lead to ongoing support and additional opportunities beyond the financial transaction. Investors who feel valued and see potential in the relationship beyond the immediate transaction are more likely to be flexible and supportive. Prioritize open communication, transparency, and mutual respect during negotiations to build a strong foundation for future collaboration. Strengthen Your Investor Connections with Visible Effective management and communication with investors are crucial for maintaining these relationships. This is where Visible can optimize your experience. By using Visible, you can streamline investor communications, track important metrics, and report progress efficiently, keeping your investors engaged and informed. Ready to take your investor relations to the next level? Try Visible free for 14 days and start strengthening your investor connections. Related resource: What Should be in a Startup’s Data Room?

Venture capital is entering a transformative era, powered by AI tools that reshape the very foundations of investing. From automating deal sourcing to enhancing due diligence and portfolio management, AI is not just an add-on but a game-changer for startups and investors alike. In this article, we’ll cover how AI technologies revolutionize venture capital, spotlighting seven pivotal tools that set new benchmarks for efficiency, decision-making, and strategic foresight. Benefits of Using AI Tools in Venture Capital In the competitive arena of venture capital, leveraging the latest technologies provides a distinct edge. AI tools represent a significant leap forward, offering benefits that enhance the entire investment lifecycle. These technologies streamline operations and enable deeper insights and more robust portfolio oversight. Here's how AI is making a transformative impact: Increased Efficiency: AI automates the labor-intensive process of deal sourcing, filtering through thousands of startups to highlight the most promising ones. This automation extends to other areas such as market research and data analysis, significantly reducing the time venture capitalists spend on these tasks and allowing them to focus on strategic decision-making​​​​. Enhanced Decision-making: AI's ability to process and analyze vast datasets gives venture capitalists unprecedented insights. From predictive analytics on market trends to in-depth evaluations of startup viability, AI tools equip investors with the information needed to make informed decisions with greater confidence​​​​. Performance Monitoring: Real-time data analysis is another critical benefit of AI in venture capital. Tools specifically designed for monitoring portfolio companies can track performance indicators, alerting investors to both opportunities and potential risks. This capability ensures that venture capitalists can respond quickly to changes in their investments' status, optimizing for success​​​​. Related resource: How AI Can Support Startups & Investors + VCs Investing in AI Uses Cases for AI in Venture Capital Venture capitalists leverage AI in several key areas to enhance their operations, reduce manual workload, and make more data-driven decisions. The following use cases illustrate the versatility and power of AI in VC, highlighting how AI tools are not just optional extras but essential components of a modern venture capital firm's toolkit. Deal Flow Automation One of the most significant advantages of AI in venture capital is the automation of deal flow processes. AI tools can sift through vast amounts of data to identify potential investment opportunities, filtering out noise and focusing on startups that meet specific criteria. This automation significantly increases efficiency, allowing venture capitalists to allocate more time to engaging with high-potential deals rather than searching for them. Example: Caena utilizes AI to automate the process of finding and assessing potential investment opportunities, making it easier for venture capitalists to discover startups that align with their investment thesis​​. Startup Evaluation and Due Diligence AI plays a crucial role in the evaluation and due diligence phase, analyzing extensive datasets to assess a startup's financial health, market potential, and operational viability. This capability enables venture capitalists to conduct a more thorough and accurate assessment of potential investments, reducing the risk associated with early-stage startups. Example: Tracxn leverages AI to provide detailed analyses of startups, offering insights into their financial status, market positioning, and growth potential, thereby streamlining the due diligence process for investors​​. Portfolio Management and Monitoring Effective portfolio management and monitoring are vital for venture capitalists, and AI enhances these processes by offering real-time insights into performance metrics and potential risks. This enables investors to make informed decisions swiftly, capitalizing on opportunities and mitigating risks. Example: Visible AI Inbox allows investors to uncover insights from unstructured data in seconds. Forward the updates and files founders share with you directly to Visible. AI Inbox will automatically parse, structure, and uncover new insights combined with the data already in Visible. Deal Negotiation and Term Sheet Generation AI is also transforming the deal negotiation and term sheet generation process. By leveraging data-driven insights, venture capitalists can optimize investment terms and outcomes, ensuring that both parties reach agreeable terms efficiently. Example: Using ChatGPT to generate term sheets showcases AI's ability to streamline complex legal negotiations. By analyzing vast amounts of data, AI can suggest terms that are fair and in line with market standards, simplifying the negotiation process​​. 8 AI Tools Being Used in Venture Capital Venture capital is a fast-evolving field, and AI technologies are playing an increasingly significant role in reshaping its landscape. From enhancing deal sourcing and due diligence to improving investor relations and portfolio management, AI tools provide venture capitalists with powerful ways to enhance efficiency and accuracy. In this section, we will explore seven cutting-edge AI tools making a mark in the venture capital industry, detailing what each tool does and how it can be leveraged to gain a competitive edge in the market. Related resource: 13 Generative AI Startups to Look out for Visible AI Inbox Visible AI Inbox combines with our other data sources to create a source of truth for all of your portfolio data and information. Forward the updates and files founders share with you directly to Visible. AI Inbox will automatically parse, structure, and uncover new insights combined with the data already in Visible. Learn more by scheduling a call with our team here. Visible AI Updates Visible AI Updates allows founders to send best-in-class investor updates in minutes. Your founders can leverage AI Updates to automatically turn their Visible Request data and responses into shareable updates embedded with charts, images, files, and more. Learn more by scheduling a call with our team here. ChatGPT ChatGPT, developed by OpenAI, is an advanced language model designed to understand and generate human-like text based on the input it receives. In the venture capital sphere, ChatGPT can be utilized for various purposes including automating responses to common investor inquiries, generating detailed reports, and analyzing market trends. For startups seeking funding, ChatGPT can be instrumental in crafting compelling pitches, managing communications with potential investors, and even updating stakeholders about the company’s progress through tools like the Visible platform- find out how to use AI for your investor updates here. This makes it a versatile tool for enhancing interaction and maintaining transparent investor relations. Related resource: Using AI Prompts to Write Your Next Investor Update Caena Caena is a strategic AI tool designed to optimize decision-making in venture capital. It assists VCs in predicting startup success rates by analyzing vast amounts of data on startup performance and market trends. For startups, Caena can prove invaluable by providing insights on their positioning within the market, helping them to fine-tune their strategies for attracting investor attention and funding. By leveraging Caena, startups can better understand the competitive landscape and improve their pitches, increasing their chances of securing venture capital. Merlin Merlin offers robust analytics solutions that help venture capitalists streamline the process of deal sourcing and due diligence. By using Merlin, VCs can access detailed insights about potential investment opportunities, market trends, and the competitive environment. For startups, Merlin serves as a tool to stand out in a crowded market by providing detailed analytics on their business model and market potential, which can be crucial in discussions with potential investors. By highlighting their strengths and market opportunities through Merlin’s analytics, startups can attract venture capital funding more effectively. Tracxn Tracxn is a specialized AI tool that provides comprehensive data intelligence for venture capital firms. It helps in identifying the best startups across various sectors by analyzing market data and trends. Venture capitalists use Tracxn to streamline their deal-sourcing processes and to stay updated on the most promising investment opportunities worldwide. Its extensive database and sophisticated analytics enable VCs to make informed decisions quickly, saving time and resources in the competitive venture capital market. TechScout TechScout is designed to assist venture capitalists in discovering and evaluating emerging technologies and startups. It provides detailed insights and analyses on the latest tech innovations, helping VCs spot high-potential investments early. Venture capitalists rely on TechScout to stay ahead of trends and to efficiently assess the technological viability and potential market impact of new startups, thus enabling more strategic investment decisions. Quid Quid is a platform specializing in visualizing complex data, enabling venture capitalists to see patterns and connections that might otherwise go unnoticed. It analyzes data from various sources to provide VCs with comprehensive market landscape analyses and competitive insights. This capability makes Quid an invaluable tool for venture capital firms aiming to understand broader market dynamics and to identify emerging sectors and technologies that promise high returns. Enhance Your Fund Operations With Visible As the venture capital landscape transforms with the integration of AI tools, these technologies are proving to be indispensable in enhancing portfolio management, deal sourcing, due diligence, and overall investment management. AI not only automates and speeds up the process but also provides deeper insights and more accurate forecasts, allowing venture capitalists to make more informed decisions and manage investments more effectively. Learn more about Visible AI by scheduling a call with our team here.

"This just made my reporting life 100x easier" — Olivia O'Sullivan, Forum Ventures Jay Baer said, “We are surrounded by data but starved for insights.” Having a system to leverage your data to uncover insights takes a venture capital firm’s operations from good to best-in-class. With the Visible + Airtable integration, you can automatically send reports from Visible to an Airtable database. Check out the portfolio information that can be exported from Visible Reports below: Company Properties (Ex: Sector, HQ location, Recent Updates) Investment Properties (Ex: Latest Price Per Share, Ownership %) Metrics/KPIs with custom insights (Ex: Revenue, Revenue QoQ) Learn more about how you can leverage Visible + Airtable for your firm by booking a call with our team below: How it Works Export your Visible Reports to an Airtable database with two clicks. Simply navigate to the report you’d like to export, connect your Airtable account, and sit back while your Visible Report is automatically sent to Airtable. From here, combine data with existing data in Airtable to streamline reporting and uncover new insights across your fund. Put Visible + Airtable to Work for Your Firm Ready to level up your portfolio management and reporting at your firm? Schedule a call with our team to learn more about how you can leverage Visible to centralize portfolio company data, uncover insights, and power your LP reporting and team meetings.

At Visible, we often compare a venture capital fundraise to a traditional B2B sales and marketing funnel. At the top of your funnel, you add qualified investors to your pipeline (via cold and warm outreach). In the middle of the funnel, you nurture and pitch potential investors with emails, updates, pitches, meetings, etc. At the bottom of the funnel, you are hopefully closing your new investors. Related Resource: How to Find Venture Capital to Fund Your Startup: 5 Methods In order to best help you fill the top of your “fundraising funnel,” we’ve put together a list of a few popular VC firms located in Miami. Check them out below: 1. Ocean Azul Partners As the team at Ocean Azul Partners put on their website, “We are an early-stage venture capital firm passionate about helping entrepreneurs bring innovative technology solutions to market. We’re operators who are determined to use our successes and lessons learned to provide significant value to the teams with which we work. We are proud to support entrepreneurs building unique solutions that will shape the futures of their industries.” Investment Range As put on their website, “We write initial checks of size $200K-$2M, with a portion of our fund reserved for follow-on. We play an active role in all of our investments and have board seats on most of them.” Industries The team at Ocean Azul primarily focuses on B2B software. Learn more about Ocean Azul Partners by checking out their Visible Connect Profile. Related Resources: The 12 Best VC Funds You Should Know About 2. Guild Capital As the team put on their website, “Guild Capital is an early-stage venture capital firm. Founded in 2009, we have been dedicated to venture further than conventional Silicon Valley-based VC patterns to look for growth-stage teams who can evolve into great companies.” Investment Range The team at Guild does not publicly state their investment range but does look to companies that have “generated early revenue” or those that have not generated revenue that shows signs of momentum. Industries The team at Guild does not have a specific industry but shares their thesis for industries and markets by stating, “We believe in businesses bringing industry-contrarian solutions to large addressable markets. In general, we prefer markets that are not ‘winner-takes-all.” Learn more about Guild Capital by checking out their Visible Connect Profile → 3. Starlight Ventures As put on their website, “We are an early stage venture firm designed to address humanity’s biggest challenges and opportunities through breakthrough technology. We aim to enable long-term human flourishing: a prosperous civilization that responds effectively to large-scale opportunities and existential threats alike.” Investment Range The team at Starlight does not publicly state their investment range. Industries The team at Starlight does not publicly state-specific industries but rather invest in companies that impact long-term human flourishing. Learn more about Starlight Ventures by checking out their Visible Connect Profile → 4. Fuel Venture Capital As put by their team, “Fuel Venture Capital has brilliantly executed against this mission and has become known and trusted as leaders who are founder-focused and investor-driven. Our world-class venture executives have deployed over $400MM of capital from our global LP base following a disciplined “Phased Investment Thesis” managing risk while driving return on investment.” Investment Range The team at Fuel invests across multiple stages as put below: Industries The team at Fuel invests across many industries but ultimately look to, ‘disruptive global, tech-driven companies.” 5. LAB Miami Ventures As put by their team, “LAB Ventures is a VC Fund and Startup Studio dedicated to accelerating early-stage real estate and construction technology companies… We invest in early-stage real estate and construction technology companies. We invite investors with an interest in these sectors to join our growing network and stay on the leading edge of tech trends.” Investment Range The team at LAB does not publicly state their investment range but typically invests in pre-seed, seed, and series A rounds. Industries As put by their team, “Our focus is on early-stage technology businesses that serve the Real Estate and Construction industries – Property Technology, or “PropTech” for short. We take a very broad view of what is included in PropTech, but have a preference for software over hardware, recurring revenue, and enterprise over the consumer.” 6. Krillion Ventures As put by their team, “Krillion Ventures is a Miami-based venture capital fund that actively invests in early-stage technology companies solving problems in healthcare, financial services, and real estate.” Investment Range The team at Krillion Ventures does not publicly list their investment range but gives the following information, “We invest in companies that can demonstrate proof of concept and are seeking capital to accelerate their growth. We make follow-on investments in our portfolio companies on a deal-by-deal basis.” Industries The team at Krillion is focused on companies in the health tech space. Learn more about Krillion Ventures by checking out their Visible Connect Profile → 7. Miami Angels As put by the team at Miami Angels, “We bring together exceptional entrepreneurs and accomplished accredited investors to fuel success. Our group is comprised of over 150 angel investors, many of whom have been entrepreneurs themselves. Beyond providing capital, we collaborate with our founders to ensure they have access to talent and future funding.” Investment Range The team at Miami Angels does not publicly state what their investment range is. You can learn more about their investment criteria below: Industries As put on their website, “Because of our diverse investor base, we are able to leverage that expertise and invest in many industries. However, we do NOT invest in hardware, lifestyle brands, consumer goods, biotech, development shops, or financial derivatives.” Learn more about Miami Angels by checking out their Visible Connect Profile → 8. Secocha Ventures As put by their team, “Secocha Ventures is an Investment Firm focused on early stage Consumer Products & Services, Fintech & Healthcare Technology companies.” Investment Range The team at Secocha Ventures does not publicly disclose their investment range. They do mention, “We invest in startups raising their Pre-Seed, Seed, or Series-A rounds.” Learn more about the Secocha Ventures investment criteria below: Industries As shown above, the team at Secocha Ventures states, “We invest in FinTech, HealthTech, and Consumer Products & Services.” Related Resources: Private Equity vs Venture Capital: Critical Differences 9. Third Sphere As put by the team at Third Sphere, “We use early stage capital to upgrade systems. That starts with finding the sectors currently not working with consideration for people, businesses, or general public responsibility – everything from infrastructure to supply chains. Because ensuring our future takes more than reducing carbon emissions.” Investment Range The team at Third Sphere has multiple funds. For their venture fund, they explain their range and criteria as, “A real investment is about more than capital. We invest at the earliest stages (pre-seed & seed), stay close to our founders, and work with them from the onset of our relationship to build relationships with other founders, investors, and customers. From crafting a clear, eye-catching subject line to navigating a pitch, our emphasis on coaching leads to productive, inventive, and valuable relationships that bring ideas to life. Our community is more than just a nice idea – it’s a system designed to work for you.” Industries Third Sphere breaks down their industries and markets into the following: 10. TheVentureCity As put by their team, “TheVentureCity is a global, early-stage venture fund that refuses to follow the conventional crowd. We offer promising founders investment with bespoke data insights and operating expertise – designed for product-led growth.” Investment Range According to their Visible Connect Profile, the team at TheVentureCity typically writes checks between $1M and $4M. Industries As put on their website, “We are generalists, but index high on Fintech, HealthTech, AI/ML/Data and B2B SaaS. We like businesses that are “needed” and are not just “nice to haves”.” Learn more about TheVentureCity by checking out their Visible Connect Profile → Find out How Visible Can Help Your Startup Today At Visible, we oftentimes compare a fundraise to a B2B sales and marketing funnel. At the top of your funnel, you are finding new investors. In the middle, you are nurturing and pitching potential investors. At the bottom of the funnel, you are working through diligence and ideally closing new investors. Related Resource:A Quick Overview on VC Fund Structure With the introduction of data rooms, you can now manage every aspect of your fundraising funnel with Visible. Find investors at the top of your funnel with our free investor database,Visible Connect Track your conversations and move them through your funnel with ourFundraising CRM Share yourpitch deck andmonthly updates with potential investors Organize and share your most vital fundraising documents with data rooms Manage your fundraise from start to finish with Visible.Give it a free try for 14 days here.

In the ever-evolving world of finance, "dry powder" serves as a pivotal concept for investors, encapsulating the essence of liquidity and strategic investment readiness. The term "dry powder" echoes through the corridors of finance, signifying a reservoir of liquid assets poised for deployment. Originating from the military use of gunpowder, the contemporary financial landscape repurposes this term to signify cash reserves and highly liquid securities, ready to be ignited for investment opportunities or to navigate economic tumults. In this article, we’ll delve into the nuances of dry powder, shedding light on its types, strategic uses, and indispensable value in venture capital – aiming to arm investors with insights to optimize their investment strategies. What is Dry Powder? Dry powder in finance refers to readily available cash or liquid assets held by investors, companies, or funds, earmarked for immediate investment opportunities or emergency use. This concept spans across personal finance, corporate reserves, and notably, in private equity and venture capital, where it underscores the readiness to capitalize on opportune moments or cushion against unforeseen financial downturns​​. Types of Dry Powder There are three primary types of dry powder, each serving distinct purposes and embodying different levels of liquidity and deployment readiness. Each type of dry powder plays a unique role in an investor's arsenal, offering different degrees of liquidity, potential for appreciation, and strategic flexibility. Understanding and managing these forms of financial reserves enable investors to navigate the complexities of the market, seize emerging opportunities, and safeguard against economic volatility. Cash Reserves Cash reserves constitute the most liquid form of dry powder. They are immediately available funds that do not require conversion or sale to be utilized. This immediacy makes cash reserves an invaluable asset for investors looking to act swiftly on investment opportunities or cover urgent financial needs without the delay of liquidating other assets. Cash reserves are kept in accounts where they can be quickly accessed, often without significant transaction costs or losses, offering unmatched liquidity and readiness​​. Marketable Securities Marketable securities, including stocks, bonds, and treasury bills, represent another key form of dry powder. While not as liquid as pure cash reserves, these assets can be sold relatively quickly in the financial markets, often with minimal impact on their value. This category of dry powder allows investors to hold assets that can appreciate over time but can still be converted into cash on short notice. The ability to sell these securities rapidly makes them a crucial component of an investor's dry powder, balancing potential growth with liquidity​​. Unallocated Capital Unallocated capital refers to funds that have been raised or set aside for investment but have not yet been deployed. In the context of venture capital and private equity, it includes committed capital from investors that is waiting to be invested in portfolio companies. This type of dry powder offers strategic flexibility, allowing funds to seize new investment opportunities as they arise or to support existing investments with additional capital. Unallocated capital must be managed carefully to balance the readiness for new investments with the risk of having excessive unused capital, which could otherwise be earning returns​​. How do Investors Use Dry Powder? As we delve deeper into the strategic application of dry powder, it's crucial to recognize its multifaceted role in bolstering investment portfolios, safeguarding against market downturns, and capitalizing on unique investment opportunities. This section explores some pivotal strategies investors employ to leverage their dry powder, illustrating how these reserves enhance both the resilience and growth potential of investment endeavors. 1. Dry Powder as a Tool for Growing Portfolio Companies Dry powder represents a critical resource for investors, particularly those in venture capital or private equity, aiming to accelerate the growth of their portfolio companies. By keeping a reserve of liquid assets, investors can swiftly inject capital into these companies when opportunities for expansion, product development, or market entry arise. This proactive use of dry powder can significantly enhance a company's competitive edge, drive innovation, and facilitate scale-up operations, ultimately contributing to its long-term value creation​​. The strategic allocation of dry powder for growth initiatives enables investors to optimize the trajectory of their investments, ensuring they are well-positioned to capitalize on emerging trends and opportunities. 2. Acting as a Safety Net in Case of Economic Downturn In the unpredictable landscape of financial markets, economic downturns pose a significant risk to investment portfolios. Dry powder serves as a critical safety net in these scenarios, providing investors with the liquidity necessary to navigate through periods of market volatility without being forced to liquidate assets at a loss​​. This reserve of liquid assets allows investors to maintain their investment positions, cover operational costs, and even seize counter-cyclical investment opportunities that may arise during downturns. The presence of dry powder enhances financial stability and resilience, empowering investors to withstand economic fluctuations and safeguard the value of their investments. 3. Creating Opportunities in a Distressed Debt Situation Distressed debt situations, where securities are trading at significant discounts due to a company's financial instability, present unique investment opportunities for those with dry powder. Investors can use their liquid reserves to purchase these securities at a lower cost, betting on the potential for recovery and significant returns on investment. This strategy requires a deep understanding of the distressed assets and the factors contributing to their undervaluation, as well as a readiness to act swiftly when such opportunities are identified​​. Dry powder enables investors to capitalize on these situations by providing the necessary liquidity to invest in distressed assets, offering a pathway to potentially high returns through strategic acquisitions and restructuring efforts. Advantages of Dry Powder in Venture Capital Venture capital and private equity firms use dry powder as a strategic tool, safeguarding their existing portfolios and propelling their investments to new heights. The presence of readily available capital enables these firms to act swiftly and decisively in the face of both opportunity and adversity. Here, we'll explore the key advantages that dry powder offers in the realm of venture capital and private equity, highlighting its role in driving success and mitigating risks. Enhanced Deal-Making Capacity: With substantial dry powder reserves, venture capital and private equity firms can pursue larger and potentially more lucrative deals. The ability to mobilize funds quickly gives these firms a competitive edge in bidding for high-value targets, facilitating growth and diversification of their investment portfolios. Flexibility in Investment Timing: The availability of dry powder affords firms the luxury of timing their investments to capitalize on market conditions. They can strategically enter or exit investments based on their assessment of market cycles, optimizing returns on their capital deployment. Opportunistic Acquisitions: Markets are dynamic, and distressed assets or undervalued opportunities can emerge anytime. Dry powder positions firms to take advantage of these situations, acquiring assets at a discount or investing in companies poised for a turnaround, thus potentially generating significant returns. Negotiating Leverage: In deal negotiations, a firm's ability to close transactions quickly with available cash can serve as a powerful bargaining tool. This leverage can lead to more favorable deal terms, including price concessions or preferential terms of sale, enhancing the value captured from each transaction. Risk Management and Stability: During economic downturns or periods of heightened market volatility, dry powder can serve as a stabilizing force. It provides the means for venture capital and private equity firms to support their portfolio companies through financial difficulties, ensuring long-term stability and preventing forced exits at unfavorable valuations. Related resource: Calculating Your Quick Ratio Track Fund Performance Data With Visible Dry powder is the lifeline that enables investors to seize opportunities, navigate downturns, and optimize the growth and resilience of their portfolios. Understanding how to manage and deploy these reserves effectively is crucial in the competitive landscape of investment. Visible offers insights and tools that can help investors track, manage, and communicate the performance of their portfolios, making it easier to harness the power of dry powder in achieving investment success. Learn how to get started with Visible to track your crucial fund performance data here. Related resources: Private Equity vs Venture Capital: Critical Differences How To Find Private Investors For Startups

Understanding which investors are engaging the most with your fundraising assets such as Visible Decks, Visible Updates, and Visible Data Rooms gives you insight into where to best spend time during the fundraising process. A New Contact Activity Page With this latest product update, we've made it easier to discover important engagement activity from the investor contacts stored on Visible. You can use these contact insights to determine who your most engaged investors are and when is best to follow up next. The updated contact page now displays all properties, engagement trends, recent activity, and the latest shared items, all in one view. Check Out Your Investor Activity Ready to see how investors are engaging with your Visible assets? Log into Visible below to take a look at the new contact pages for your investors:

Venture capital is a dynamic field, offering unique opportunities to influence the future of technology, innovation, and entrepreneurship. If you're fascinated by startups, growth, and investment, diving into how to get into venture capital can open up a world of possibilities. This guide is crafted to demystify the venture capital industry and outline actionable steps for those looking to start their career in this interesting sector. What is Venture Capital? Venture capital (VC) is a subset of private equity, focused on investing in startups and early-stage companies with high growth potential in exchange for equity. Venture capital firms or funds assess the risk and potential of these companies, aiming for a return through equity gains as the companies grow. These investments typically come after an initial seed funding round and aim for a significant return through an eventual exit event, such as an IPO or acquisition​​. Venture capital is pivotal in funding innovative startups that might not have access to traditional financing methods due to their novel business models or technology. The VC industry is known for its involvement in high-tech sectors like IT, biotechnology, and clean technology​​. Venture capitalists provide capital, strategic advice, networking opportunities, and operational support to help these companies scale​​. What VC firms are and what they do: Venture Capital Firms: These are specialized financial entities that pool money from different investors to invest in startups and emerging companies. The end goal is to earn a return on their investment, typically through an exit event like an IPO or a sale of the company. Function: VC firms actively manage their investments by offering strategic guidance, networking opportunities, and sometimes even taking a seat on the company's board. They seek to boost the company's growth and increase its value over time, aiming for a profitable exit strategy to return capital to their investors. Roles and responsibilities of a venture capitalist include: Identifying Investment Opportunities: Venture capitalists scout for promising startups with high growth potential, innovative business models, or technology. Due Diligence and Analysis: They thoroughly evaluate potential investments, assessing the company's business model, market potential, competitive landscape, and management team. Funding Startups: After a careful assessment, venture capitalists fund chosen startups in exchange for equity, typically aiming for a minority stake. Providing Strategic Advice: Beyond financial support, venture capitalists offer valuable guidance on business strategy, growth, and operational improvements. Networking: They leverage their extensive networks to support portfolio companies with hiring, partnerships, and customer acquisition. Venture capital is not just about money; it's about building a partnership between investors and entrepreneurs to foster innovation and growth. As such, venture capitalists are integral to developing and scaling startups, helping them evolve from fledgling companies into significant players in their respective industries​​​​​​. This dynamic field offers a unique blend of financial acumen, strategic thinking, and a deep understanding of innovation, making it a fascinating career path for those passionate about shaping the future of business and technology. Understanding the Venture Capital Industry and Job Market To truly understand the venture capital industry and its job market, it's crucial to look beyond just the financial investments and see the entire ecosystem that supports and drives innovation. For those aspiring to work in VC, comprehending this ecosystem and its current dynamics is not just beneficial—it's essential. This knowledge will equip you with the insights needed to navigate the competitive landscape of VC careers, whether you aim to become a venture capitalist, an analyst, or play another pivotal role within this field. Overview of the Venture Capital Ecosystem At its core, the venture capital ecosystem is made up of venture capital firms and the professionals working within them. Positions range from Analyst, Associate, and Principal, to Partner roles such as Managing Partner and General Partner. Other significant roles include Venture Partners, Investor Relations Managers, Entrepreneurs-in-Residence, Marketing & Social Media personnel, Interns, and VC Scouts. Each role carries distinct responsibilities, from conducting research and due diligence (Analysts, Associates) to leading the firm's strategic direction (Managing Partners) and making key investment decisions (Partners)​​. These VC firms source capital from limited partners, such as pension funds, endowments, and wealthy individuals, to invest in high-potential startups and early-stage companies. The ecosystem also includes the entrepreneurs and startups seeking funding, alongside a network of service providers such as lawyers, accountants, and consultants who support venture investments' transactional and operational aspects. For those looking to work in VC, understanding the roles within these firms and the skills and experiences valued in the industry is key. Networking, financial analysis, market research, and strategic thinking are just some of the core competencies needed. Additionally, being familiar with the legal and regulatory environment of startup financing can set candidates apart. Current Trends and Challenges in the VC Industry Several trends and challenges are shaping the VC job market today: Diversification of Investment Areas: VC firms are increasingly investing in a wider range of industries. This broadening scope requires professionals with specialized knowledge or the ability to learn and adapt to new sectors quickly. The Rise of Remote Work: The global shift towards remote work is changing how VC firms operate, including how they interact with their portfolio companies and conduct due diligence. This trend is creating opportunities for professionals with strong digital communication skills and the ability to work effectively in a remote environment. Increased Competition for Positions: As the allure of venture capital grows, so does the competition for roles within VC firms. Aspiring professionals need to build a strong personal brand, demonstrate their value through past experiences, and cultivate a robust network within the industry. Ethical and Sustainable Investing: There's a growing emphasis on ethical investing, with more VC firms considering the environmental and social impact of their investments. Knowledge of sustainable business practices and impact investment can be a significant advantage. Navigating the venture capital job market requires a keen understanding of both the roles available within the industry and the broader trends shaping its future. By staying informed and adaptable, aspiring VC professionals can position themselves for success in this exciting and dynamic field. How Do You Get Into Venture Capital? Successfully entering the venture capital industry typically involves a mix of education, experience, skillset, and networking. While there is no one-size-fits-all approach, understanding these components can significantly enhance your prospects in this competitive field. Education and Experience The educational background of those working in venture capital often includes undergraduate degrees in business, finance, economics, or engineering. A Master's in Business Administration (MBA) is also highly regarded, with many VC professionals holding degrees from top-tier business schools. This educational foundation provides the necessary theoretical knowledge and analytical skills. Experience is equally, if not more, important. Many successful venture capitalists have backgrounds in entrepreneurship, investment banking, management consulting, or have been part of a start-up. This experience is invaluable as it provides a deep understanding of the challenges and opportunities within start-ups and the broader business landscape. It also helps develop the ability to evaluate the potential of early-stage companies. Internships in VC firms or related fields can be a stepping stone, offering firsthand experience and the opportunity to make initial industry contacts. Participation in relevant extracurricular activities, such as business plan competitions or investment clubs, can also be beneficial. Skillset and Personal Qualities Venture capital is not just about numbers; it requires a unique set of skills and personal qualities. Analytical and financial skills are fundamental, as VCs need to assess start-ups' viability and potential return on investment. Strategic thinking is crucial for understanding market trends, competitive landscapes, and a start-up's potential for scale and growth. Personal qualities matter greatly. Resilience and patience are essential, as success in venture capital often takes time, and not all investments will pay off. Strong interpersonal and communication skills are needed to build relationships with entrepreneurs and co-investors and to negotiate and close deals effectively. An entrepreneurial mindset is also key, with the ability to take calculated risks and make decisions in the face of uncertainty. Building a Network and Finding Mentorship Networking is critical in the venture capital world. Building a broad and deep network with entrepreneurs, investors, and industry professionals can open opportunities to discover promising start-ups, secure investment deals, and find potential co-investors or partners. Mentorship is another crucial aspect. Finding a mentor within the VC field can provide guidance, advice, and access to a wider network. Mentors can help navigate the industry's complexities, offer insights on investment strategies, and support career development. Engaging with the VC community through conferences, seminars, and online platforms can facilitate networking and finding mentorship opportunities. Additionally, contributing to the VC ecosystem through blogging, speaking at events, or participating in forums can raise your profile and help establish valuable connections. Entering the venture capital industry is challenging but achievable with the right mix of education, experience, skills, and network. Persistence, continuous learning, and active engagement with the VC community are key to success in this dynamic and rewarding field. Related resource: 6 Helpful Networking Tips for Connecting With Investors Main Entry Points in Venture Capital Venture capital entry can vary widely, depending on one's background, education, and career stage. Understanding the main entry points can help aspirants tailor their journey toward this exciting and impactful field. Below, we explore three primary entry points into venture capital: pre-MBA, post-MBA, and Senior level, each offering distinct pathways and opportunities for prospective venture capitalists. Pre-MBA The pre-MBA entry point in venture capital is primarily for those in the early stages of their careers, often immediately after undergraduate studies or after gaining a few years of work experience. This level typically involves entering VC firms in analyst or associate roles. The primary function at this stage involves supporting the firm's investment process, which includes market research, deal screening, due diligence, and financial modeling. Candidates at this entry point usually hold a bachelor's degree, with a preference for fields such as finance, business, economics, or engineering. However, what stands out more than the degree itself is relevant work experience, especially in startups, banking, consulting, or tech companies, and a demonstrated passion for venture capital and entrepreneurship. The Pre-MBA route is an excellent opportunity for individuals to immerse themselves in the VC ecosystem, build a network, and gain a solid understanding of what it takes to evaluate and support startups. Post-MBA The Post-MBA entry point is tailored for individuals who have completed their Master of Business Administration (MBA) degree and are looking to leverage this advanced education to enter or advance within the venture capital field. Post-MBA roles in VC are typically at the associate or senior associate level, though some may enter as a partner, depending on their experience and network. An MBA from a top-tier business school can be particularly advantageous, as VC firms often value the advanced business acumen, strategic thinking, and extensive networking opportunities these programs provide. Furthermore, an MBA with a concentration in entrepreneurship, finance, or management can be especially relevant. Candidates at this stage are expected to have a more significant role in investment decisions, portfolio management, and even in providing strategic advice to startups. The Post-MBA path is well-suited for those looking to pivot into venture capital with a solid foundation in business principles and a strong professional network. Senior Level Senior-level entry points in venture capital are typically reserved for individuals with extensive experience in related fields such as entrepreneurship, executive leadership, investment banking, or consulting. Entering VC at a senior level often means stepping into roles such as partner or managing director. At this stage, education is less about the degree itself and more about the depth and breadth of professional experience and the individual's track record in building, advising, and investing in successful companies. Senior entrants are expected to bring a robust network, deep industry insights, and a keen eye for identifying and nurturing high-potential startups. They play a crucial role in shaping the investment strategy of the firm, leading fundraising efforts, and guiding the firm's overall direction. The senior-level entry is ideal for accomplished professionals looking to leverage their expertise to make a significant impact in the venture capital ecosystem. Regardless of the entry point, a career in venture capital demands a blend of analytical acumen, strategic foresight, and interpersonal skills. The journey into VC can be as diverse as the startups it seeks to fund, offering multiple paths for those passionate about driving innovation and entrepreneurship. Prominent Roles at a VC Firm Understanding the roles within a VC firm and the qualifications needed for entry-level positions is the first step toward pursuing a career in this exciting field. Aspiring professionals should focus on building relevant skills, gaining appropriate experiences, and networking extensively to improve their chances of breaking into venture capital. Below, we will cover the prominent roles at a VC firm, highlighting their responsibilities and the considerations for those aiming to enter the field, especially at an entry level. Related resource: How to Hire for Your First VC Platform Role Roles Include: General Partner (GP): The top-tier position in a VC firm, GPs are responsible for investment decisions, fundraising, and overall firm management. They often have a wealth of experience in investing, entrepreneurship, or specific industries. Limited Partner (LP): LPs are investors in the VC fund who provide the capital that GPs invest. While not involved in day-to-day operations, LPs are vested in the fund's performance. Venture Partner: Venture Partners are typically experienced entrepreneurs or executives who work part-time with the VC firm. They assist with deal sourcing, due diligence, and providing strategic value to portfolio companies. Principal: Principals hold a senior position, often just below the GPs, and are involved in sourcing deals, leading due diligence processes, and supporting portfolio companies. They might be on track to become GPs. Associate: Associates analyze investment opportunities, conduct market research, and support the due diligence process. This role is often considered entry-level or just above, serving as a pathway to more senior positions within the firm. Analyst: Analysts are typically entry-level professionals who support Associates and Principals in their duties. Their work includes market research, financial modeling, and preparing investment memoranda. Analyst positions are great for gaining exposure to the VC world and understanding the basics of venture investing. Considerations for Entry-Level/Junior Roles Educational Background: A degree in finance, business, economics, or a related field is commonly preferred. However, degrees in engineering, science, or technology can also be valuable, especially for VC firms focusing on specific sectors. Relevant Experience: Internships or work experience in startups, investment banking, management consulting, or in the industry the VC focuses on can be advantageous. Networking: Building a strong professional network is crucial in the venture capital sector. Attend industry events, and workshops, and connect with professionals on LinkedIn. Skills and Qualities: Analytical skills, understanding of financial modeling, excellent communication skills, and a genuine interest in technology and startups are essential. Being proactive and having a keen eye for evaluating startups' potential is also important. Persistence and Patience: Landing a role in VC can be highly competitive. It often requires persistence, patience, and sometimes, a bit of luck. Keep learning, stay engaged with the industry, and build your professional network. 6 Steps for Breaking Into Venture Capital for Beginners Breaking into venture capital, especially for beginners, can seem daunting due to the industry's emphasis on networking and prior investment or entrepreneurial experience. However, with the right approach and mindset, aspiring VC professionals can pave their way into this dynamic sector. Below are six practical steps to guide beginners through the essential actions and considerations necessary to launch a successful career in venture capital. These steps aim to build a strong foundation, enhance relevant skills, and expand professional networks, all critical components for those looking to make their mark in the world of venture capital. Related resource: A Guide to How Venture Capital Works for Startups and New Investors 1) Know Which Type of Investing You Want to Work In Venture capital encompasses a broad spectrum of investment stages and sectors, each offering unique opportunities and challenges. Understanding these differences is crucial for those aiming to enter the field, as it not only aligns your career path with your interests and expertise but also shapes your networking and learning strategies. Here’s a brief overview of the funding stages and why choosing a specialization can be beneficial: Funding Stages: Pre-seed and Seed Stage: This is the earliest investment phase, where venture capitalists provide capital to help validate and develop the initial idea, product, or market. Working in this stage requires a keen eye for potential and the ability to work with very early-stage companies. Series A and B (Early Stage): After the seed stage, companies seeking Series A and B funding are typically looking to expand their market reach and scale their operations. Investors at this stage focus on companies that have shown some traction and are ready for more significant growth. Series C and Beyond (Growth Stage): At this point, companies are well-established in their markets and seek funding to scale their operations further, develop new products, or expand globally. Investors here need to assess scalability and market dominance potential. Late Stage and Pre-IPO: Investments at this stage are made in companies on the verge of going public or being acquired. Here, The focus is minimizing risk and ensuring a strong return on investment. Why Specialization Matters: Specializing in a specific stage of investment or sector can be a powerful way to differentiate yourself in the competitive VC landscape. It allows you to develop deep expertise, better assess opportunities, and build a valuable network in your chosen niche. Visible has covered several specialized investment areas, highlighting the diversity within venture capital: Cannabis Venture Capital: An emerging sector with unique regulatory and market challenges. Learn more. NFT Investors: Investing in the burgeoning market of non-fungible tokens, which has exploded in popularity and scope. Learn more. Esports Investors: Focusing on the fast-growing industry of competitive gaming, which includes everything from game development to event management. Learn more. Food and Beverage Startups: Targeting innovations in food technology, sustainability, and beverages. Learn more. Community VC Investors: Investing in startups that prioritize social impact and community building. Learn more. 2) Develop the Right Skill Set Securing a position in the competitive field of venture capital requires a specific set of skills that enable individuals to identify promising investment opportunities, support portfolio companies, and generate significant returns for their firm and its investors. These skills are a blend of technical know-how, analytical prowess, and interpersonal capabilities. Here are several key skills necessary for success in venture capital and how aspiring professionals can go about acquiring them: Financial Analysis and Modeling: Importance: The ability to analyze financial statements, forecast future performance, and model various scenarios is crucial for evaluating the potential of investment opportunities. Financial analysis helps in understanding the viability, stability, and profitability of a startup. How to Attain: This skill can be developed through formal education in finance or business, online courses, and practical experience such as internships or roles in financial analysis, investment banking, or management consulting. Market Analysis and Sector Expertise: Importance: Venture capital professionals need to have a deep understanding of the market trends, competitive landscapes, and technological advancements within their chosen sectors. This knowledge enables them to spot emerging opportunities and risks. How to Attain: Stay informed by reading industry reports, attending conferences, and following thought leaders on social media. Consider specializing in a sector where you already have experience or education, and continuously learn to stay ahead of trends. Networking and Relationship Building: Importance: Building and maintaining a robust network of entrepreneurs, investors, and other VC professionals is essential for sourcing deals, conducting due diligence, and supporting portfolio companies. Strong relationships can also facilitate syndicate deals and co-investments. How to Attain: Attend industry events, join relevant online communities, and actively participate in discussions. Offering value through insights, introductions, or resources can help build meaningful connections. Strategic Thinking and Decision Making: Importance: Venture capital involves making high-stakes decisions with incomplete information. The ability to think strategically, weigh the potential risks and rewards, and make informed decisions is critical for success. How to Attain: Practice by analyzing case studies of venture investments, joining a community, and seeking mentorship from experienced professionals in the field. Adaptability and Resilience: Importance: The startup ecosystem is fast-paced and unpredictable. The ability to adapt to changes, learn from failures, and remain resilient is vital for navigating the ups and downs of venture investing. How to Attain: Embrace challenges and setbacks as learning opportunities. Engage in projects or roles that push you out of your comfort zone and require you to adapt quickly. 3) Get Relevant Work Experience To enhance your candidacy for a role in venture capital, consider gaining experience in these areas. Whether through full-time roles, internships, or even side projects, relevant work experience can significantly bolster your understanding of the business landscape and investment process. Additionally, these experiences provide valuable networking opportunities and the ability to develop a track record of success, both of which are crucial for a career in venture capital. Here’s a look at some of these areas and why they are relevant. Investment Banking: Investment bankers have a strong foundation in financial modeling, deal structuring, and market analysis. This background is beneficial for venture capital, where similar skills are used to evaluate and finance high-growth companies. Why It’s Relevant: The rigorous analytical training, experience with high-stakes transactions, and exposure to various industries make former investment bankers well-equipped to navigate the complexities of venture investing. Management Consulting: Consultants are adept at solving complex business problems, conducting market research, and formulating strategic recommendations. These skills apply to venture capital for assessing a startup’s strategy, market potential, and operational capabilities. Why It’s Relevant: The ability to critically analyze a company’s positioning and propose actionable strategies is invaluable in helping portfolio companies scale and succeed. Entrepreneurship: First-hand experience in founding or working at a startup provides insight into the challenges and realities of building a business from the ground up. This perspective is crucial for venture capitalists in identifying resilient and innovative founders and in providing meaningful support to portfolio companies. Why It’s Relevant: Understanding the entrepreneurial journey allows venture capitalists to empathize with founders and offer practical advice, making them more effective investors. Sales and Business Development: Experience in sales and business development roles can be particularly valuable, especially when evaluating startups’ go-to-market strategies and scaling potential. These roles cultivate skills in market analysis, customer acquisition, and revenue growth strategies. Why It’s Relevant: Assessing a startup’s capacity to generate revenue and expand its customer base is critical for predicting its long-term success. Technology and Product Management: For venture capital firms focused on tech startups, experience in software development, product management, or a related field can provide essential insights into product innovation, development cycles, and market fit. Why It’s Relevant: A deep understanding of technology trends and product development processes enables venture capitalists to evaluate startup products' technical viability and innovation potential. 4) Understand the Mindset of a Venture Capitalist Understanding the venture capitalist mindset is more than just knowing how to evaluate companies or make investment decisions; it's about embracing a comprehensive approach to risk, innovation, and entrepreneur support. Aspiring venture capitalists should immerse themselves in this mindset, adopting a forward-thinking, empathetic, and continuously learning attitude toward their work and the startups they invest in. Long-term Vision: What It Means: Venture capitalists often invest in startups with the potential for significant long-term growth, even if immediate profitability is not in sight. They look for transformative ideas that can scale and impact markets or create entirely new ones. How to Develop: Cultivate the ability to see beyond current market trends and evaluate how emerging technologies or business models could evolve. This involves staying informed about technological advancements, societal changes, and global economic shifts. Risk Assessment and Tolerance: What It Means: VC involves investing in high-risk, high-reward opportunities. Successful venture capitalists are skilled at assessing the risk vs. reward of potential investments, comfortable with the possibility of failure, and optimistic about the prospects of outsized returns. How to Develop: Learn to analyze the factors that can lead to startup success or failure, including market size, team composition, product-market fit, and competitive landscape. Practice weighing these factors to make informed decisions under uncertainty. Value Addition Beyond Capital: What It Means: Venture capitalists look to add value to their portfolio companies beyond just financial investment. This could be in the form of strategic guidance, network introductions, or operational support. How to Develop: Build a network of contacts across various industries, cultivate expertise in specific areas of business growth, and learn how to mentor and support entrepreneurs effectively. Build Relationships with Entrepreneurs: What It Means: A key part of a venture capitalist's role is to build strong, trust-based relationships with entrepreneurs. Understanding the challenges and pressures that founders face is crucial for providing the right support and making informed investment decisions. How to Develop: Engage with startup founders, participate in entrepreneurial communities, and, if possible, experience the startup journey yourself. This can provide valuable insights into the entrepreneurial mindset and the challenges of building a business from the ground up. Continuous Learning: What It Means: The venture capital industry is dynamic, with new technologies and business models constantly emerging. A successful VC must be a lifelong learner, always ready to update their knowledge and adapt to new information. How to Develop: Make a habit of reading industry reports, attending conferences, and engaging with thought leaders in your areas of interest. Being open to new ideas and willing to adjust your perspectives based on new evidence is key. 5) Cultivate Your Brand and Story Developing a strong personal brand and a compelling narrative can significantly differentiate you from others. A personal brand is essentially your professional reputation — it’s what people think of when they hear your name. It encompasses your expertise, experiences, values, and the unique perspective you bring to the venture capital ecosystem. Here’s why it’s crucial and how you can build it: Why It’s Important: Trust and Credibility: A well-established personal brand builds trust and credibility with entrepreneurs, co-investors, and within your own firm. It signals that you have the knowledge, network, and skills to add value beyond just capital. Deal Flow: A strong brand can attract investment opportunities. Founders want to work with venture capitalists who have a reputation for being insightful, supportive, and connected. A good brand makes you a magnet for promising startups. Career Opportunities: In a sector where who you know is often as important as what you know, a recognizable personal brand can open doors to new opportunities, partnerships, and career advancements within the VC community. How to Cultivate Your Brand and Story: Identify Your Unique Value Proposition: Consider what sets you apart from others in the field. Is it your deep knowledge of a particular industry, your experience in scaling startups, or your network in the tech community? Define this and make it the cornerstone of your personal brand. Be Visible and Engaged Online: Use social media platforms like LinkedIn, Twitter, and Medium to share your insights, comment on industry trends, and engage with content from other thought leaders. Consistently posting valuable content can establish you as an expert in your areas of interest. Speak and Participate at Industry Events: Speaking at conferences, panels, and webinars or participating in podcasts can significantly boost your visibility and credibility. It also provides networking opportunities and a platform to share your unique insights and stories. Contribute to the Venture Community: Mentor startups, write insightful articles, or volunteer to judge pitch competitions. These activities not only contribute to the ecosystem but also reinforce your brand as someone who is knowledgeable and invested in the success of others. Network Authentically: Build genuine relationships within the VC community. Your brand is not just about what you project online or on stage but also about how you interact with people in one-on-one settings. Authenticity in your interactions can foster long-lasting professional relationships. 6) Proactively Build Your Network with Venture Capitalists and Founders Networking is not just a supporting activity in venture capital; it's a core aspect of the job. For someone aspiring to break into VC, proactively building a network of venture capitalists and startup founders is crucial. This effort is about marketing yourself as a good fit for the industry by showcasing your knowledge, enthusiasm, and the unique value you can bring to a venture capital firm. Here’s why this proactive approach is essential and how it transforms an aspiring VC into a valuable asset for a VC firm: Why You Need to Be Proactive: Visibility: The VC space is relatively small and tightly knit. Making your presence known and staying top of mind for people within the industry is vital. By actively engaging in networking, you increase your visibility and the likelihood of being considered for opportunities. Demonstrate Fit and Passion: Engaging with the VC community allows you to demonstrate your passion, understanding of the industry, and how your background and skills make you a good fit. It’s an opportunity to show, rather than tell, that you belong in the space. Learn and Adapt: Networking with professionals and founders gives you insights into the current trends, challenges, and opportunities within the venture ecosystem. This knowledge not only makes you more informed but also helps you adapt your approach and offerings to meet the needs of a VC firm better. Why a Strong Network Makes You a Valuable Asset: Deal Flow: A broad network of founders and fellow VCs can become a source of deal flow, which is the lifeblood of any venture capital firm. Being able to bring in unique investment opportunities can make you an invaluable member of the team. Due Diligence Support: A diverse network allows you to conduct more thorough and informed due diligence by tapping into experts and potential customers for feedback on a startup’s product or service Portfolio Support: Beyond identifying and evaluating deals, VC firms also work to support their portfolio companies in scaling their operations, entering new markets, and securing further financing. A well-connected VC can leverage their network to help portfolio companies navigate these challenges Industry Insights: Having a network that spans various sectors and geographies can provide early signals on emerging trends, investment themes, and competitive dynamics. This insight can inform a VC firm’s strategy and investment decisions. How to Proactively Build Your Network: Engage in Industry Events and Conferences: Attend VC and startup events, panels, and workshops. These are excellent opportunities to meet both VCs and entrepreneurs. Utilize Social Media and Online Platforms: LinkedIn, Twitter, and other industry-specific platforms can be powerful tools for engaging with the VC community, sharing your insights, and initiating conversations. Offer Value: Whether through introductions, sharing relevant information, or offering expertise, always look for ways to provide value in your interactions. Networking is a two-way street. Seek Mentorship: Reaching out to established VCs for guidance can lead to valuable relationships. Many professionals are open to sharing advice and insights with those who are genuinely interested and eager to learn. Expand Your Venture Capital Network with Visible Venture capital is an exciting field that blends financial expertise with a passion for innovation. It offers a unique vantage point on the future of technology and entrepreneurship. Visible stands as a valuable resource in this journey, providing insights through our resources and The Visible Edge a bi-weekly newsletter with curated resources to help maintain your edge in Venture Capital.

When starting a venture capital for a fundraise, it is important to stay focused on the right investors for your business. This means sticking to investors that fund companies in your industry, stage, geography, etc. In order to best help founders find the right investors for their business, we’ve laid out 10 investors that are funding FoodTech startups below: Quick Overview of the Food Tech Industry As written by the team at Bread and Butter Ventures, “Food technology includes tech-enabled companies operating anywhere in the food value chain. From on farm to supply chain and manufacturing to restaurants and grocery. “Tech” can be software, hardware, bio sciences, or any combination of the three.” Food and agriculture is a major aspects of the economy. Many venture capitalists and entrepreneurs find that there are inefficiencies in the food and agriculture sector and can be improved by funding innovative companies. Challenges in Foodtech As put by the team at Blue Horizon in their post, The US food industry is facing a labor crisis and needs technology solutions to help solve it, “The food industry is strained from multiple forces, including heightened expectations from both customers and employees (e.g., wage increases, gig economy) as well as macro-economic pressures (e.g., inflation, supply chain constraints).” Related Resource: The 16 Best Startup Newsletters Related Resource: VCs Investing In Food & Bev Startups 1) Better Food Ventures Location: Menlo Park, CA Funding stage: Early-stage, seed stage According to the team at Better Food Ventures, “​​Our investments in food and agriculture technologies span the value chain — from seed, soil, supply chain, store, supper to stomach— to support the digitization of today’s food system, and form the building blocks necessary to meet our food supply needs in 2050.” According to their Visible Connect Profile, the team at Better Food Ventures typically writes checks anywhere between $250k and $10M. Some of Better Food Ventures most popular investments include: Milk Moovement Love with Food Byte Add Better Food Ventures to your Visible Fundraising Pipeline here → 2) 1st Course Capital Location: Redwood City, CA Funding stage: Early-stage, pre-seed, seed As the team at 1st Course Capital puts it, “1st Course Capital is an early stage venture capital firm investing in innovative business models and technologies changing how we grow, produce, and distribute food.” Some of 1st Course Capital’s most popular investments include: BlueCart Farmshelf Gooder Foods Add 1st Course Capital to your Visible Fundraising Pipeline here → 3) Nucleus Capital Location: Berlin Funding stage: Pre-seed and seed stage As put on their website, “Nucleus Capital is a new venture capital firm supporting purpose-driven founders. We believe that entrepreneurial innovation is necessary to tackle global threats to planetary health. We deeply respect the entrepreneurial process and partner with founders at the nucleus of their journey, investing at the Pre-Seed & Seed stage. We are most excited by mission-driven teams with relentless ambition, deep domain expertise and creative ideas.” Nucleus is focused on pre-seed and seed stage investments. Some of Nucleus Capital’s most popular investments include: Planet A Foods Juicy Marbles Yuri Add Nucleus Capital to your Visible Fundraising Pipeline here → 4) Tet Ventures Location: Berlin, Germany Funding stage: Early-stage As put on their Visible Connect Profile, “We are one of the most active global foodtech VCs, investing in teams and technology building a better food system.” Tet Ventures typically writes check anywhere between $50k and $250k. They look to fund companies anywhere in the world at the earliest stages. Some of Tet Ventures most popular investments include: Farmstead Maven Gather Made Add Tet Ventures to your Visible Fundraising Pipeline here → 5) Bread and Butter Ventures Location: Minneapolis, MN Funding stage: Seed stage As put by the team at Bread and Butter Venturese, “Bread and Butter Ventures is an early stage venture capital firm based in Minnesota, the Bread and Butter State, investing globally while leveraging our state and region’s unparalleled access to strong corporate connections, commercial opportunities, and industry expertise for the benefit of our founders.” You can learn more about Bread and Butter in our podcast with Brett Brohl below: The team at Bread and Butter typically writes checks anywhere between $100k and $400k. They traditionally focus on Food Tech, Health Tech, and Enterprise SaaS companies. Some of Bread and Butter Venture’s most popular investments include: Alchemy Dispatch Goods Omnia Fishing Add Bread and Butter Ventures to your Visible Fundraising Pipeline here → 6) FoodHack Location: Lausanne, Switzerland Funding stage: Pre-seed to Series A As written by the team at FoodHack, “Where Food & FoodTech professionals come to get the inside scoop on industry news and meet partners, friends, mentors, investors – and everything in between. From our weekly newsletter, to our ambassador run Meetups and our annual FoodHack Summit – our goal at FoodHack is to make it easier for purpose driven food founders to access the funding, network and knowledge they need to successfully launch and scale their business.” Add FoodHack to your Visible Fundraising Pipeline here → 7) Bluestein Ventures Location: Chicago, IL Related Resource: Chicago’s Best Venture Capital Firms: A List of the Top 10 Firm Funding stage: Early-stage — typically between seed and series A As put by the team at Bluestein Ventures, “We look for that magic combination of strategic vision + flawless execution. We’re inspired by visionary entrepreneurs that challenge the status quo – purpose-driven teams that are hungry to change the paradigm – and translate that into action. Entrepreneurs are our focus. As experienced investors, we know the journey isn’t easy. That’s why we’re here to partner with you to help you succeed.” Check out some of Bluestein’s most popular investments below: Cultured Decadence Meati New Culture Add Bluestein Ventures to your Visible Fundraising Pipeline here → 8) AgFunder Location: San Francisco, CA Funding stage: Seed to Series B As put by their team, “AgFunder is an online Venture Capital Platform based in Silicon Valley. AgFunder invests in exceptional and bold entrepreneurs who are aiming to build the next generation of great agriculture and food technology companies.” The team at AgFunder has written checks anywhere between $50k and $900k in a round. They invest in companies across the globe. Some of AgFunder’s most popular investments include: Atomo Coffee Alpha Foods FieldIn Add AgFunder to your Visible Fundraising Pipeline here → 9) S2G Ventures Location: Chicago, Boston, and San Francisco Funding stage: Anywhere from seed to growth stage As written by the team at S2G, “Our strategy reflects a growing appetite for investment that combines financial returns with positive long-term social and environmental effects. S2G has identified tough tech sectors that are ripe for change and is building a multi-stage portfolio of seed, venture, and growth stage investments and flexible solutions including debt and infrastructure capital.” The team at S2G will invest across many stages and are focused on companies that benefit the environment and society. Check out a few of S2G Venture’s most popular investments below: AppHarvest Ripple Beyond Meat Add S2G Ventures to your Visible Fundraising Pipeline here → 10) Blue Horizon Location: Zurich, Switzerland Funding stage: Seed to Series B As written by the team at Blue Horizon, “Blue Horizon is accelerating the transition to a Sustainable Food System that delivers outstanding returns for investors and the planet. The company is a global pioneer of the Future of Food. As a pure play impact investor, Blue Horizon has shaped the growth of the alternative protein and food tech market. The company invests at the intersection of biology, agriculture and technology with the aim to transform the global food industry.” Check out some of the most popular Blue Horizon investments below: Eat Just Impossible Foods Planted Add Blue Horizon to your Visible Fundraising Pipeline here → Secure venture capital for your food tech startup with Visible At Visible, we oftentimes compare a fundraise to a B2B sales and marketing funnel. At the top of your funnel, you are finding new investors. In the middle, you are nurturing and pitching potential investors. At the bottom of the funnel, you are working through diligence and ideally closing new investors. Related Resource: A Quick Overview on VC Fund Structure With the introduction of data rooms, you can now manage every aspect of your fundraising funnel with Visible. Find investors at the top of your funnel with our free investor database, Visible Connect Track your conversations and move them through your funnel with our Fundraising CRM Share your pitch deck and monthly updates with potential investors Organize and share your most vital fundraising documents with data rooms Manage your fundraise from start to finish with Visible. Give it a free try for 14 days here.

In venture capital, grasping the concept of Additional Paid-In Capital (APIC) is essential. It represents the premium investors pay over a share's nominal value, indicating their confidence in a company. Beyond a mere balance sheet entry, APIC demonstrates investor support, fueling startup innovation and growth. What is Additional Paid-in Capital (APIC) APIC, a critical financial indicator in a company's equity section, shows the excess amount investors pay over shares' par value during events like IPOs or financing rounds. This metric is particularly significant in the startup and venture capital ecosystem, as it represents a tangible measure of investor confidence and financial commitment to a company's potential for growth and innovation. APIC is not just an indicator of the funds a company has raised; it underscores the premium investors are willing to pay for a stake in the company, beyond the basic valuation of shares. This additional capital can be crucial for startups, offering a vital resource for expansion, research and development, and scaling operations, ultimately influencing the company's strategic direction and growth trajectory​​​​​​. Additional Paid-In Capital vs. Contributed Capital APIC denotes funds received beyond a share's par value, differing from contributed capital, which sums all shareholder capital. This distinction illuminates a company's financial wellness and growth potential. Contributed capital includes both the par value of issued shares, often referred to simply as "capital stock," and APIC. Essentially, it represents the initial and additional equity investments made by shareholders. The par value portion of contributed capital reflects the nominal value of shares, set at the company's inception and usually a minimal figure, serving as a legal requirement in some jurisdictions. APIC, on the other hand, captures the premium investors are willing to pay beyond this nominal value, driven by their belief in the company's future growth and success. These two components' roles within a company's financial architecture are distinct yet complementary. Contributed capital forms the bedrock of a company's equity structure, signifying the total equity stake held by shareholders. APIC, as a subset, highlights the additional confidence and financial backing investors are prepared to offer, often reflecting the market's valuation of the company's potential beyond its book value. Related resource: What Are Convertible Notes and Why Are They Used? Sources of Additional Paid-In Capital APIC originates from strategic activities such as IPOs, premium stock issuances, and stock-based compensation, which are crucial for securing funds beyond a share's par value. Each source has unique advantages, strategic implications, and impact on the company's overall financial health and equity structure. Understanding these sources provides a clearer picture of how companies leverage investor enthusiasm and market conditions to bolster their financial positions and support their long-term growth and development strategies. Related resource: From IPOs to M&A: Navigating the Different Types of Liquidity Events 1. Initial Public Offerings (IPOs) IPOs serve as a critical APIC source for companies going public, marking their first share offering to the public and usually bringing significant capital. IPOs allow companies to access funding from a broader investor base, surpassing the limits of private financing rounds predominantly participated in by venture capitalists and angel investors. The significance of IPOs in generating APIC lies in the premium price at which shares are often offered to the public. This premium—over and above the par value of the shares—translates into APIC, reflecting the market's confidence in the company's growth prospects. The funds raised through an IPO can dramatically enhance a company's financial position, providing capital for expansion, debt reduction, and other strategic investments. Moreover, the impact of an IPO on a company's financial position extends beyond immediate capital infusion. Successfully going public can increase a company's visibility, credibility, and ability to attract talent through stock-based compensation. However, it also subjects the company to regulatory requirements, increased scrutiny from investors and analysts, and the pressures of quarterly performance expectations. IPOs are a crucial milestone for growth-oriented companies, offering a pathway to secure significant APIC that supports their strategic ambitions and solidifies their market standing. 2. Stock Issuance at a Premium Issuing stocks at a premium is a strategic way to generate APIC, leveraging investor demand. This approach involves selling new shares for more than the stock's par value, with the difference between the sale price and the par value directly contributing to APIC. This strategy not only raises significant funds for the company but also signals strong market confidence and investor willingness to invest at higher valuations, reflecting positively on the company's perceived growth potential and stability. The strategic nature of issuing stocks at a premium lies in its dual benefit: securing necessary capital for expansion and operational needs while simultaneously bolstering the company's equity base without incurring debt. This method of raising capital is particularly advantageous for companies with a strong brand reputation and clear growth trajectory, as it minimizes dilution of existing shareholdings and avoids the interest costs associated with debt financing. Moreover, the premium paid over the par value represents investor confidence in the company's future prospects, making it a critical gauge of market sentiment. This strategy also provides companies with flexibility in timing and pricing, allowing them to maximize capital-raising efforts when market conditions are favorable. The APIC generated through such issuances is vital for funding research and development, marketing strategies, and other growth-oriented initiatives, ultimately contributing to the company's long-term success and shareholder value. Issuing stocks at a premium is a strategic financial decision that is a testament to a company's market position and growth outlook. It plays a crucial role in shaping its financial landscape and supporting its strategic goals. 3. Stock-based Compensation Stock options and RSUs are key to boosting APIC and attracting and retaining talent. These programs allow employees to share in the company's success through equity or equity-like incentives, aligning their interests with those of the company and its shareholders. Stock options allow employees to purchase company stock at a predetermined price, potentially lower than future market value, over a specified period. When employees exercise these options, the difference between the exercise price and the market value at the time of exercise contributes to APIC, reflecting the value added to the company through employee commitment and efforts. This mechanism bolsters the company's financial resources and fosters a sense of ownership and partnership among employees, driving performance and innovation. RSUs are another form of stock-based compensation where employees receive a set number of shares that vest over time, based on continued employment or meeting certain performance milestones. Upon vesting, the fair market value of these shares, minus any amount the employee pays for them (often nothing), is recorded as APIC. This direct injection of value into APIC underscores the tangible contributions of employees to the company's growth and success. These stock-based compensation strategies are crucial in a company's financial planning and employee engagement. They not only enhance APIC but also serve as a non-cash way to compensate and incentivize key talent. By effectively using stock options and RSUs, companies can strengthen their APIC, improve their financial positioning, and foster a motivated, performance-driven culture that aligns with the company's long-term objectives. Calculating Paid-in Capital Calculating paid-in capital, which includes par value and APIC, reveals shareholders' total equity contributions, offering valuable insights into a company's financial support. This figure is a key component of a company's equity structure, revealing the financial backing it has received from its investors over time. Here's a simplified approach to calculating paid-in capital: Identify Par Value of Issued Shares: Start by determining the par value per share—a nominal value assigned to stock for legal purposes—and multiply it by the total number of issued shares. This gives you the base value of the equity issued. Calculate APIC: APIC is the amount over and above the par value that investors have paid for shares. To find APIC, subtract the total par value of issued shares from the total amount actually received from issuing those shares. Sum Up Total Paid-In Capital: Add the total par value from step 1 to the APIC calculated in step 2. The sum represents the total paid-in capital, reflecting the comprehensive equity contribution by shareholders. For example, if a company issues 1,000 shares at a par value of $1 per share but sells them for $10 each, the par value of equity is $1,000 (1,000 shares x $1), and the APIC is $9,000 ([$10 - $1] x 1,000 shares). The total paid-in capital, therefore, is $10,000 ($1,000 + $9,000). This calculation provides a clear picture of the financial resources shareholders have committed to the company, underscoring the importance of initial and additional contributions to its equity base. Understanding this process is crucial for investors aiming to assess a company's financial health and the extent of shareholder support. Related resource: The Ultimate Guide to Startup Funding Stages How Additional Paid-in Capital Works APIC plays a fundamental role in shaping a company's financial structure, acting as a key indicator of the strength and stability of its equity base. APIC is generated when a company issues new shares and sells them at a price above their nominal or par value. The difference between the sale price and the par value is recorded as APIC on the company's balance sheet, under the shareholders' equity section. This mechanism not only provides companies with a vital source of funding without incurring debt but also reflects the market's valuation of the company, often seen as a vote of confidence from investors. The mechanics of APIC directly influence a company's financial structure by enhancing its equity cushion. This is particularly important for startups and growth-phase companies, which may prefer equity financing to debt to avoid interest obligations and preserve cash flow. A robust equity base, bolstered by significant APIC, can improve a company's borrowing capacity, as lenders often view a strong equity position as a sign of financial health and stability. Real-world examples illustrate the impact of APIC on companies' financial strategies and market perception. For instance, a tech startup conducting an IPO may price its shares significantly above the par value due to high investor demand, driven by its innovative products and market potential. The resulting APIC from this IPO boosts the company's financial resources for expansion and sends a positive signal to the market about its growth prospects. Another example can be found in established companies issuing new shares at a premium during secondary offerings. These offerings, aimed at raising capital for strategic initiatives, can significantly increase APIC, demonstrating investor willingness to pay a premium based on the company's past performance and future growth expectations. APIC is a critical component of a company's financial architecture through these mechanisms, enabling strategic growth initiatives, enhancing corporate valuation, and signaling confidence to investors and market analysts. Its role in a company's financial structure underscores the importance of equity financing strategies in corporate growth and investor relations. How is Additional Paid-in Capital Taxed? Though not directly taxed, APIC's impact on a company's financial health and shareholders' tax obligations is significant, navigating the complexities of regulatory frameworks. For businesses, APIC enhances the equity base without generating immediate taxable income. It represents capital received from shareholders beyond the nominal value of shares issued and, as such, does not constitute revenue or profit that would be subject to corporate income tax. This capital injection strengthens the company's balance sheet and can support growth and expansion efforts, potentially leading to increased profitability and, by extension, future tax liabilities through higher taxable income. From an investor's perspective, the tax implications of APIC are primarily associated with capital gains. When investors sell their shares at a price higher than their purchase price, the profit realized is subject to capital gains tax. The initial investment, including any premium paid over the par value (i.e., APIC), forms the basis for calculating these capital gains. It's crucial for investors to accurately track their investment's cost basis, including APIC, to determine the correct amount of taxable gain upon disposition of the shares. Stock-based compensation plans, which can contribute to APIC, also have specific employee tax considerations. For instance, when employees exercise stock options, the difference between the exercise price and the market value during exercise may be subject to income tax as compensation. Investors and companies must also stay informed about regulatory changes and tax laws that might affect the taxation of equity transactions and capital gains, as these can vary by jurisdiction and over time. Consulting with tax professionals is advisable to navigate these complex areas effectively and ensure compliance with current tax laws while maximizing tax efficiency. Track Fund Performance Data With Visible By leveraging Visible, investors can track critical portfolio company and investment data all from one place. Learn how to get started with Visible to track your crucial investment data here.

At Visible, we often compare a startup fundraising process to a traditional B2B sales and marketing funnel. At the top of your funnel, you are adding qualified investors. Nurturing them in the middle of the funnel with email, meetings, pitches, etc. And ideally closing them as a new investor at the bottom of a funnel. Related Resource: How to Find Venture Capital to Fund Your Startup: 5 Methods Just like a sales and marketing funnel, a fundraising funnel needs to start with the right investors for your business (e.g. qualified lead or qualified investor). One of the aspects founders will want to research is the geography of the investor and where they invest. Check out a few popular venture capital firms located in Chicago below: 1. Hyde Park Venture Partners According to the team at Hyde Park Venture Partners, “We’re an early-stage venture capital firm focused on high-growth, mid-continent technology startups. We seek companies with an exceptional founding team and fast-growth potential, looking to raise a first or second round of capital. With offices in Chicago and Indianapolis, our team is tenacious, responsive, and committed to adding value to each investment.” Learn more about Hyde Park Venture Partners and check out their Visible Connect Profile here → Investment Range The team at Hyde Park invest in early-stage companies — pre-seed to series A. According to their Visible Connect Profile, the team at Hyde Park Venture Partners generally writes checks anywhere between $250k and $4M. Industries Hyde Park Venture Partners primarily invests in SaaS, marketplace, and tech-enabled companies. Popular Investments Some of Hyde Park Venture Partners most noteable investments include: G2 Avant High Alpha Terminus 2. Chicago Ventures As the team at Chicago Ventures put on their website, “We lead seed rounds before it’s obvious, and serve as active, operationally-involved partners during a company’s earliest days.” The team at Chicago Ventures pinpoints 4 areas where they are best suited to help their portfolio companies: Talent: Build your company Community: Skill up Customers: Identify + connect Communication: Tell your story Learn more about Chicago Ventures and check out their Visible Connect Profile here → Investment Range The team at Chicago Ventures has a focus on leading seed rounds. According to their Visible Connect Profile, this can range in checksizes from $500k to $5M. Industries The team at Chicago Ventures is agnostic in their industries and look to invest in “overlooked teams.” Popular Investments Some of Chicago Ventures most noteable investments include: Logicgate Project44 Tock 3. LongJump According to their website, “LongJump is an investment fund, run by founders and operators. We invest in high potential founders and help them turn their ideas into fast-growing businesses. In addition to capital, we also provide connections and community to our portfolio, helping to connect you with other investors, employees, and advisors.” The team at LongJump is full of founders and operators which offers portfolio companies the opportunity to lean on their experience and networks. Learn more about LongJump and check out their Visible Connect Profile here → Investment Range The team at LongJump is focused on seed investments (particularly writing the first check in a company). They typically write checks anywhere between $50k and $100k. Industries The team at LongJump is agnostic in their investment industries. You can learn more in their thesis below: “The population of founders in Chicago (and everywhere else, too) should mirror the community around them. But we don’t see that. Instead we see deep bias towards certain people, certain industries, and certain backgrounds — none of which are predictive of success. And we see this opportunity gap widening over time, creating a chasm that prevents many from starting companies and getting them to the next level. That’s why we’re creating LongJump. To help founders of all backgrounds, all races, all genders, and all socio-economic conditions to get their start. This isn't a charity; this is an opportunity.” Popular Investments Some of LongJump’s most noteable investments include: Stabl STIGMA Anjoy 4. Origin Ventures According to their website, “Origin Ventures is an early-stage venture capital firm investing in software, consumer, and marketplace businesses in the Digital Native economy.” Learn more about Origin Ventures and check out their Visible Connect Profile here → Investment Range According to their Visible Connect Profile, the team at Origin Ventures typically writes checks anywhere between $500k and $5M. Industries The team at Origin Ventures has an intense focus on software, marketplace, and consumer apps. You can learn more in their thesis below: “We believe businesses built for Digital Natives have an outsized growth advantage. The Digital Native Economy is powered by 140M Millennials and Gen Z between the ages of 10 and 40. They’re the first generations to have a smart phone, pervasive high speed internet, and social media from a young age. Digital Natives grew up with a cell phone in their hand, and they do things differently than prior generations as a result. We’ve identified themes driven by these behavioral changes and use them to drive our investment strategy.” Popular Investments Some of Origin Venture’s most noteable investments include: GrubHub Cameo Tock 5. Energy Foundry According to their website, “Energy Foundry invests venture capital in today’s most promising energy innovators, and we work with the world’s leading energy companies to build and scale new ventures. Our approach merges venture capital with the perks of partnership, and includes an arsenal of essential tools and relationships to help bring great ideas to market.” Learn more about Energy Foundry and check out their Visible Connect Profile here → Investment Range According to their Visible Connect Profile, the team at Energy Foundry typically writes checks anywhere from $750k to $10M. Industries The team at Energy Foundry has a focus on disruptive energy and cleantech startups. You can learn more about their approach below: “We invest early-stage venture capital in energy start-ups with transformational technologies, an eye towards growth, and ridiculously talented teams. Technology advancements are disrupting the energy industry and creating new venture opportunities. Those who understand this dynamic landscape can unlock value. That’s why we focus exclusively on energy. Energy Foundry effectively deploys capital and leverages strategic tools to de-risk investments and accelerate time to market for the most promising ventures.” Popular Investments Some of Energy Foundry’s most noteable investments include: Azumo Bractlet e-Zinc 6. Starting Line According to the team at Starting Line, “Starting Line invests in founders who are willing to take on substantial personal risks, out of fear of living a life of regret. That fear of wondering what life might have looked like if you’d just gone for it.” Learn more about Starting Line in our interview with Ezra Galston of Staring Line below: Investment Range The team at Starting Line directly lays out their investment range below: “We are a first check venture capital fund, meaning that we aim to anchor true seed rounds with check sizes ranging from $750,000 – $2,000,000 in rounds ranging from $1 – $6M. Our sweet spot within that range is leading $1-1.25M into a $2.5M seed round. We typically write our largest check in a Company’s first round, though we do retain reserves for all portfolio investments.” The Starting Line team is extremely transparent and offers countless opportunities to learn about their investment process on their website here. Industries As put on their website, “Starting Line is a thematic early stage venture capital fund focused on investing in consumer marketplaces, services and products that are cheaper and better, improve access for the 99% + as well as the software infrastructure that enables it.” Popular Investments Some of Starting Line’s most noteable investments include: Substack Made in Spothero 7. Jump Capital According to the team at Jump Capital, “Jump provides series A and B capital to data-driven tech companies within the FinTech, IT & Data Infrastructure, B2B SaaS and Media sectors. We back entrepreneurs with bold vision seeking a business partner and not just a financial investor.” Learn more about Jump Capital and check out their Visible Connect Profile here → Investment Range The team at Jump Capital typically writes checks somewhere between $1M and $10M. Learn more below: Industries The team at Jump Capital is primarily focused on the following industries: Fintech IT and Data Infrastructure Media B2B SaaS Popular Investments Some of Jump Capital’s most noteable investments include: 4C Insights Fast Radius Lumere 8. MATH Venture Partners As put by the team at MATH, “We believe companies that have an unfair advantage in customer acquisition will outperform. This advantage is usually inherent in the business model – leveraged sales, channel partners, compliance triggers, network effects, expansion opportunities or some other element creating urgency in the market.” Learn more about MATH Venture Partners and check out their Visible Connect Profile here → Investment Range The team at MATH Venture Partners typically writes checks anywhere between $1M and $2M. You can learn more abou their investment criteria below: Industries As put by the team at MATH, “Our portfolio includes software, data analytics, marketplaces and e-commerce companies across industries. We invest in both B2B and B2C businesses. We do not invest in medical device, life sciences or capital-intensive businesses.” Popular Investments Some of MATH Venture Partners most noteable investments include: 86 Repairs Spothero Acorns 9. New Stack Ventures As put by the team at New Stack, “At New Stack, we invest in outsiders. Our startups don’t look like what’s commonly funded in Silicon Valley. The standard formula of Stanford educated, Google trained, Bay Area-located is not what we’re looking for. We believe in mission-driven founders with an irrational commitment to their cause –regardless of location or circumstance.” Learn more about New Stack Ventures and check out their Visible Connect Profile here → Investment Range The team at New Stack Ventures typically writes checks between $500k and $1.5M. Industries As put on their website, “New Stack invests broadly across sectors and categories with an emphasis on B2B SaaS, Fintech, Supply Chain, Cyber, Proptech, Healthcare, and eCommerce.” New Stack also has themes they look for in their companies below: “TRACTABLE: Tools that give non-experts, expert capabilities UGV: Platforms that empower users to generate value ACCESS TO IDLE SUPPLY: Activating idle capacity TROJAN HORSE: Targeted beachhead provides access to broader opportunity NETWORK EFFECTS: Value increases as users increase BD INNOVATION: Customer acquisition strategy is as novel as the product COMPETING W/ NON-CONSUMPTION: Turning non-consumers into consumers MOUNTING LOSS: As individual usage increases, switching costs increase” Popular Investments Some of New Stack Ventures most noteable investments include: Hologram Fixer WithMe 10. Cultivian Sandbox Ventures As put by the team at Cultivian Sanbox Ventures, “Cultivian Sandbox is a venture capital firm focused on building next-generation food and agriculture technology companies capable of generating superior returns. As early investors and active board members, we employ a hands-on approach to building companies and are often directly involved in setting company strategy, recruiting key executives, and raising additional capital.” Investment Range According to their website, “Cultivian Sandbox makes equity investments of $1-10M and participates in follow-on financings of high-performing companies. We generally focus initial investments on early-stage companies and invest selectively at later stages.” Industries Cultivian Sandbox Ventures has a focus on next-generation food and agriculture technology. Related Resource: VCs Investing In Food & Bev Startups Popular Investments Some of Cultivian Sandbox Venture’s most noteable investments include: Copper Cow Coffee Full Harvest Culture Connect With Investors Today At Visible, we oftentimes compare a fundraise to a B2B sales and marketing funnel. At the top of your funnel, you are finding new investors. In the middle, you are nurturing and pitching potential investors. At the bottom of the funnel, you are working through diligence and ideally closing new investors. Related Resource: The 12 Best VC Funds You Should Know About With the introduction of data rooms, you can now manage every aspect of your fundraising funnel with Visible. Find investors at the top of your funnel with our free investor database, Visible Connect Track your conversations and move them through your funnel with our Fundraising CRM Share your pitch deck and monthly updates with potential investors Organize and share your most vital fundraising documents with data rooms Manage your fundraise from start to finish with Visible. Give it a free try for 14 days here. Related Read: Private Equity vs Venture Capital: Critical Differences

The cannabis industry has taken off over the last few years as legalization sweeps across US states. Since 2011 venture capital investment in the cannabis space has gone from a tad more than $0 to $1.5B+ in 2019. To keep an eye on the space as it continues to grow, we wanted to share what venture capitalists are active in the space. Visible Connect is our investor database. Connect allows founders to find active investors using the fields we have found most valuable, including: Check size — minimum, max, and sweet spot Investment Geography — where a firm generally invests Board Seat — Determines the chances that an investment firm will take a board of directors seat in your startup/company. Traction Metrics — Show what metrics the Investing firm looks for when deciding whether or not to invest in the given startup/company. Verified — Shows whether or not the Investment Firm information was entered first-handed by a member of the firm or confirmed the data. And more! Related Resources: The Understandable Guide to Startup Funding Stages What do cannabis investors want to see in a potential investment? Finding the right investors to pitch to is a small part, yet crucial, part of a fundraise. Before building a list of potential investors, founders need to understand what potential investors are looking for in an investment. Check out a few of the most common attributes cannabis VCs look for below: ROI potential A VC fund’s job is to generate returns for its investors (LPs). In order to do this, they need to build a portfolio that has the ability to generate outsized returns. This means that VCs are looking for portfolio companies that have huge ROI potential and can return the fund to their investors. Related Resource: A Quick Overview on VC Fund Structure Scalability Going hand in hand with ROI potential is the potential for scalability. By having a clear vision for scalability and growth, startups can stand out in the eyes of investors. The potential for growth is a signal to investors that they have the ability to generate huge returns. High barriers to entry Another aspect potential investors look for in a potential investment are barriers to entry. In competitive spaces, like the cannabis industry, investors want to see portfolio companies that have built high barriers to compete and take their market share. Branding and vision Investors will also want to see strong branding and vision from a cannabis startup. This is relevant for any startup but especially important for consumer-facing cannabis startups. Related Resources: Private Equity vs Venture Capital: Critical Differences Venture capital firms making cannabis investments When fundraising, it is crucial that founders are spending time communicating with and pitching the right investors. In order to help founders get a start with finding cannabis investors, we used our free investor database, Visible Connect, to find 12 investors below: KEY Investment Partners KEY is a Denver-based capital venture firm positioned in the most established market of US cannabis. In addition to their +38 years of investing experience, KEY Investment Partners also produces a cannabis-focused blog (found HERE), which gives insight into current events impacting the legal cannabis industry. To learn more about KEY Investment Partners check out their Visible Connect profile HERE. CanopyBoulder The Boulder, co-based venture capital firm is a staple with their 115+ investments (3 deals in the last 12 months) in the space. CanopyBoulder runs a number of programs for early-stage cannabis startups — “incubator and accelerator programs support growth-stage ancillary cannabis and hemp/CBD businesses with capital, strategic guidance and access to networks.” To learn more about CanopyBoulder check out their Visible Connect profile HERE. Base Ventures Base Ventures is a Berkeley, CA-based venture fund led by Erik Moore. Base Ventures is a seed-stage fund that invests across all verticals of tech companies — with a % of those being in cannabis companies. Erik and his team have made over 100 venture investments with the most recent cannabis investment being in late 2019. To learn more about Base Ventures check out their Visible Connect profile HERE. Entourage Effect Capital Entourage Effect is one of the largest players in the cannabis industry. They have allocated over $200M into 65+ companies since 2014. Their three managing partners, Matt Hawkins, Andy Sturner, and Dov Szapiro, have a combined 65+ years of venture experience and are not planning on slowing down anytime soon. To learn more about Entourage Effect Capital check out their Visible Connect profile HERE. Lizada Capital Lizada Capital closely follows the legalization and opportunity involving cannabis. They have invested anywhere from $10,000 to $1M in cannabis transactions and are constantly on the lookout. Led by Steven Trenk, Lizada believes they are in a position to blossom into one of our generation’s best opportunities. To learn more about Lizada Capital check out their Visible Connect profile HERE. HALLEY Venture Partners HALLEY Venture Partners has been focused on the cannabis sector for the past five years. The San Francisco-based firm is led by Steve Schuman, who has over 17 years of private and public equity experience, ranging across agriculture, technology, and manufacturing. HALLEY is heavily geared toward the technology sector of cannabis and is looking to build highly-scalable businesses. To learn more about Base Ventures check out their Visible Connect profile HERE. Related Resource: 14 Venture Capital Firms in Silicon Valley Driving Startup Growth Green Lion Partners Green Lion Partners looks to invest in early-stage ventures throughout the entire cannabis industry. The Denver-based business, founded by Jeffrey Zucker and Michael Bologna, looks to “elevate public perception of the cannabis industry.” To learn more about Green Lion Partners check out their Visible Connect profile HERE. Salveo Capital Salveo Capital is focused on creating long term cannabis companies and focuses on empowering the entrepreneurs in charge. Michael Gruber (managing partner) has been involved in the early stage investing environment for 25 years, focusing on tech, finance, and agriculture. Jeffrey Howard (managing partner) has spent 21 years on Wall Street and has become both an advisor and investor of cannabis-based firms. To learn more about Salveo Capital check out their Visible Connect profile HERE. Archytas Ventures Archytas invests between $1,000,000 to $25,000,000 into cannabis-focused companies. With offices in New York and Los Angeles, Archytas have led previous Series A, B, and C investments. Archytas Ventures is led by David Kivitz and Antony Radbod, who are looking for strong management teams supported by cash flow and enterprise value. To learn more about Archytas Ventures check out their Visible Connect profile HERE. Phyto Partners Phyto Partners invests in a plethora of different cannabis-based businesses, including SaaS, Data, Biotech, Advertising, and more. The investing firm is led by Larry Schnurmacher, who has invested in 25 private, cannabis businesses over the past five years. Phyto invests more than just capital into the 30+ businesses they have lent help to. To learn more about Phyto Partners check out their Visible Connect profile HERE. CJV Capital CJV Capital believes that the industry of cannabis is the smallest it will ever be. CJV has proved to lead seed investments in the past and is constantly looking for “smart people solving difficult problems” across the entire cannabis industry. To learn more about Base Ventures check out their Visible Connect profile HERE. Altitude Investment Management Altitude Capital Partners is a leading private investment firm focused on investing $250 million of capital in businesses that own compelling intellectual property assets. They seek to invest in portfolio companies that have valuable patents, trademarks/brands, copyrights, royalty streams, trade secrets, and other intangible assets which will create a competitive advantage in creating value. To learn more about Altitude Investment Management, check out their Visible Connect profile HERE. To view cannabis-based VCs and over 11,000 other global VCs, visit Visible Connect! Find cannabis venture capital investors with Visible As we mentioned above, finding the right investors to pitch to for a fundraise is crucial to success. Founders need to make sure they are spending their time on the right investors. In order to best help founders filter and find the right investors for their business we built Visible Connect, our free investor database. Give Visible Connect a try here. Related Resource: 10 Angel Investors to Know in Los Angeles

At Visible, we oftentimes compare a venture fundraise to a traditional B2B sales and marketing funnel. At the top of the funnel, you are finding potential investors via cold outreach and warm introductions. In the middle of the funnel, you are nurturing potential investors with meetings, pitch decks, updates, and other communications. At the bottom of the funnel, you are working through due diligence and hopefully closing new investors. Related Resource: The Understandable Guide to Startup Funding Stages Just like sales, a solid fundraising process starts by finding the right investors. If you’re a founder located in Europe looking to find the right investors for your business, check out our list of VCs funding companies in Europe below: 1. Global Founders Capital Global Founders Capital is a fund that invests worldwide across any sector and stage. As put by their team, “Global Founders Capital is a globally oriented, stage agnostic venture capital firm that empowers gifted entrepreneurs worldwide. Global. We support founders in all geographies. Stage agnostic. We back companies across all stages and throughout the lifecycle. Operational. Our platform offers founders all the support they need to scale.” Location Global Founders Capital is located in Berlin but they invests in companies across the globe. Portfolio Highlights Global Founders Capital has invested in 900+ companies. Over their course of investing, they’ve backed popular companies such as: Canva Delivery Hero Slack Brex Funding Stage Global Founders Capital invests across all stages and business lifecycles. Learn more about Global Founders Capital by checking out their Visible Connect profile → 2. Hiventures As put by their team, “Hiventures is the biggest and most active capital investment partner of the development of Hungarian enterprises. Our mission is to provide resources for the growth and innovation of Hungarian enterprises by offering unique capital financing solutions. Our investment programmes are available from the idea phase to large enterprises, which allows us to cover the entire entrepreneurial ecosystem and thus improve its competitiveness. We are a reliable and flexible investment partner of our portfolio companies in terms of development and crisis management as well.” Related Resource: Private Equity vs Venture Capital: Critical Differences Location Hiventures is located in Hungary and funds companies that are located in Hungary. Portfolio Highlights Some of Hiventure's most popular investments include: Likespace Neonectar Unreal Industries Funding Stage Hiventures has multiple funds that invest in stages from pre-seed to seed and growth stage. Learn more about Hiventures by checking out their Visible Connect profile → 3. High-Tech Grunderfonds As put by their team, “HTGF is a venture capital investor for innovative technologies and business models. We successfully support the best founders whose ideas can revolutionize entire industries and improve people’s lives – from seed to exit. As a seed investor, we have financed 700 start-ups in the industrial tech, digital tech, life sciences, and chemicals sectors. We have overseen more than 160 exits, including IPOs. When founding your company together with us, you benefit from an experienced partner at your side.” Location HTGF has offices in both Bonn and Berlin and invests in companies with headquarters in Germany. Portfolio Highlights Some of High-Tech Grunderfonds most popular investments include: Instagrid Taxdoo Orbex Funding Stage HTGF is focused on seed-stage companies that have been around for less than 3 years. As put by their team, “We flexibly invest up to 1 million euros in the seed round – as lead investor, but also gladly together with partners. You can bring this with you or we will contact suitable investors from our network for you. In total, we can invest 4 million euros across all financing rounds and we open doors.” 4. Seedcamp As put by their team, “We invest early in world-class founders attacking large, global markets and solving real problems using technology. We are first-cheque investors, backing founders with ticket sizes between £300K-500K. We have led first rounds in unicorn businesses like TransferWise, Revolut, and Hopin along with the likes of Pleo and Sorare. You may have already raised a small amount of capital from friends and family but this is most likely your first round of institutional investment. It doesn’t matter where in your product development you are; if you think the Seedcamp Network — the most powerful, collaborative, connected, and experienced network you’ll find — can help supercharge your idea, you’ve come to the right place.” Learn more about Seedcamp by checking out their Visible Connect profile → Location Seedcamp is located in London. Portfolio Highlights Seedcamp has invested in 460+ companies. Some of their most popular investments include: Wefox Primer UiPath Funding Stage Seedcamp tries to be the first check in a company. They typically write checks between £300K and 500K. 5. Par Equity As put by the team at Par Equity, “Founded in 2008, our investment model is designed to identify and back the most innovative, high growth technology companies in the North of the UK. We’re based in Edinburgh and we’re investing across Northern England, Northern Ireland and Scotland. Key to our success is our distinctive hybrid investment model, combining our discretionary managed funds with the skills, expertise and contacts of the Par Investor Network – a large and engaged pool of investors and mentors with a track record of founding, growing and selling companies, who can add value throughout the investment life cycle. This investment strategy, fusing the experience of angel investors with the professionalism and rigour of an experienced venture capital fund manager, is a force multiplier for Par Equity, delivering better outcomes for the investors and the entrepreneurs.” Learn more about Par Equity by checking out their Visible Connect profile → Location Par Equity is located in Edinburgh and invests in companies across Northern England, Northern Ireland, and Scotland. Portfolio Highlights Some of Par Equity’s most popular investments include: Aveni Cumulus Kibosh Funding Stage Par Equity looks to invest in companies with more than £20k of monthly revenue and are seeking to raise between £0.5m to £10m. 6. Partech As put by their team, “Partech is a global investment platform for tech and digital companies, led by ex-entrepreneurs and operators of the industry spread across offices in San Francisco, Paris, Berlin and Dakar. We invest from €200K to €75M in a broad range of technologies and businesses for enterprises and consumers, from software, digital brands and services to hardware and deep tech, across all major industries.” Learn more about Partech by checking out their Visible Connect profile → Location Partech has offices in San Francisco, Paris, Berlin, and Dakar and invests in companies across the globe. Portfolio Highlights Some of Partech’s most popular investments include: Alan OneFocus Bolt Funding Stage Partech has multiple funds and invests in companies from seed to growth stages. Related Resource: Breaking Ground: Exploring the World of Venture Capital in France 7. Speedinvest As put by the team at Speedinvest, “We refuse to be just another investor who sends you money and shows up at board meetings to provide “advice.” Our mission is to empower you throughout your journey with actionable, aligned and game-changing support. From day one, you have full access to our experienced investors, Platform+ operational experts and global networks of industry partners. Whatever you need to succeed, we do everything in our power to help make it happen.” Learn more about Speedinvest by checking out their Visible Connect profile → Location Speedinvest has offices in Berlin, London, Munich, Paris, and Vienna and funds companies that are located in Europe. Portfolio Highlights Some of Speedinvest’s most popular investments include: Wefox Bitpanda Primer Funding Stage As put by their team, “We are early-stage investors with a strong focus on pre-seed and seed rounds. But to be honest, some of our best investments were stretching the limits of how “seed” is defined, so we grant ourselves some flexibility here.” 8. Octopus Ventures As put by their team, “Octopus Ventures is one of the largest and most active venture capital investors in Europe. Our mission is simple – to invest in the people, ideas and industries that will change the world. For the last few years, we’ve focused our efforts, and our investments, on three areas where we think we can make the biggest impact. We focus on building a more sustainable planet, empowering people and revitalizing healthcare.” Learn more about Octopus Ventures by checking out their Visible Connect profile → Location Octopus Ventures has offices in London, Manchester, and New York. Portfolio Highlights Octopus has funded over 180 companies. Some of their most popular investments include: Graze Elliptic Lollipop Funding Stage Octopus Ventures invests in companies from pre-seed to series B. Learn more about how their process changes depending on stage here. Related Resource: A Quick Overview on VC Fund Structure Looking for Investors? Try Visible Today! As we mentioned at the beginning of this post, a venture fundraise often mirrors a traditional B2B sales and marketing funnel. Just as a sales and marketing team has dedicated tools, shouldn’t a founder that is managing their investors and fundraising efforts? Use Visible to manage every part of your fundraising funnel with investor updates, fundraising pipelines, pitch deck sharing, and data rooms. Raise capital, update investors, and engage your team from a single platform. Try Visible free for 14 days.