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founders
Fundraising
Understanding The 4 Types of Crowdfunding
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.
founders
Operations
The Startup’s Guide to Investor Agreements: Building Blocks of VC Funding
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?
founders
Fundraising
Miami’s Venture Capital Scene: The 10 Best Firms in 2024
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.
founders
Product Updates
Product Update: Uncover Key Insights About Investor Activity
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:
founders
Fundraising
10 Foodtech Venture Capital Firms Investing in 2024
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.
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Fundraising
Chicago’s Best Venture Capital Firms: A List of 10+ Firms Investing in 2024
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
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Fundraising
12+ Cannabis Venture Capital Investors to Know in 2024
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
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Fundraising
8 Most Active Venture Capital Firms in Europe in 2024
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.
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Fundraising
10+ Venture Capital Firms in Canada Funding Startups in 2024
At Visible, we typically compare a venture fundraise to a traditional B2B sales and marketing funnel. At the top of the funnel, you find potential investors via cold outreach and warm introductions. In the middle of the funnel, you nurture 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. Like sales, a healthy fundraising funnel starts by finding the right investors. This can be based on geography, check size, focus areas, etc. For founders looking for investors in Canada, check out our list below: 1. BDC Ventures As put by the team at BDC Ventures, “Our venture capital funds present diverse opportunities for entrepreneurs to innovate in new and existing markets. The breadth of our funds across industries, technologies and company stage is unique in Canada’s venture capital space. Each fund is managed by a dedicated team with decades of experience bringing groundbreaking Canadian companies to the world stage.” Location BDC Ventures is focused on growing the venture capital ecosystem in Canada. Company Stage BDC Ventures invests in companies from early to late stages. Preferred industries The team at BDC Ventures is currently operating 6 funds that invest across multiple industries including: Sustainability Venture Fund Climate Tech Fund II Thrive Venture Fund and Lab for Women Deep Tech Venture Fund Industrial Innovation Venture Fund Growth Venture Co-Investment Fund Related Resource: 10+ VCs & Accelerators Investing in Underrepresented Founders Portfolio Highlights Some of BDC Ventures’ most popular investments include: Hopper Unsplash Shoelace Learn more about BDC Ventures by checking out their Visible Connect profile → 2. Golden Ventures As put by the team at Golden Ventures, “We have a deep sense of empathy to founders and their craft. We challenge our portfolio and team to build remarkable companies. We are authentic and rational in our decision-making and apply the same honesty to our relationships.” Location Golden Ventures is headquartered in Toronto and invest in companies throughout North America. Company Stage Golden Ventures is focused on seed-stage companies. As put by their team, “We target initial commitments of $500K – $2M for between 7-15% of a company, and we reserve capital to follow on into companies based on progress.” Related Resource: Seed Funding for Startups 101: A Complete Guide Preferred industries Golden Ventures is industry agnostic in its investment approach. Portfolio Highlights Some of Golden Ventures’ most popular investments include: ApplyBoard Yesware Stacked Learn more about Golden Ventures by checking out their Visible Connect profile → 3. Inovia Capital As put by their team, “Inovia Capital is a venture capital firm partnering with founders to build impactful and enduring global companies. With four active venture funds, two growth funds, a continuation fund and an expanding team of investors, operators and advisors, we are fully equipped to support founders with capital, insights and mentorship throughout their journey.” Location Inovia Capital is headquartered in Canada and invests in companies across the globe. Company Stage Inovia Capital invests in companies across all stages. Preferred industries As put by their team, “We focus on B2B and B2C SaaS companies and marketplaces.” Related Resource: 32 Top VC Investors Actively Funding SaaS Startups Portfolio Highlights Some of Inovia’s most popular investments include: Bench Hopper Darwin AI Learn more about Inovia Capital by checking out their Visible Connect profile → 4. BlueSky Equities As put by their team, “Bluesky Equities is a privately-owned, absolute-return focused, investment management company. We are unconstrained in our approach, investing in public and private markets with a focus on alternative assets including venture capital, private equity, hedge funds, and real estate.” Location Bluesky Equities is headquartered in Calgary and invest in companies across Canada. Company Stage Bluesky Equities is focused on early-stage investments. Preferred industries Bluesky Equities is focused on B2B SaaS companies. Related Resource: 15+ VCs Investing in the Future of Work Portfolio Highlights Some of Bluesky Equities’ most popular investments include: Ownly Active Door Spocket Learn more about Bluesky Equities by checking out their Visible Connect profile → 5. ArcTern Ventures As put by the team at ArcTern Ventures, “Since 2012, we’ve been investing in entrepreneurs obsessed with solving humanity’s greatest challenges—climate change and sustainability. We’re former startup founders ourselves, we get it, and like you, we believe technology can save our planet.” Location ArcTern has office locations in Toronto, San Francisco, and Oslo and invests in companies across the globe. Related Resource: The 11 Best Venture Capitals in San Francisco Company Stage Explain the company stage this firm invests in. Preferred industries As put by their team, “We invest broadly in technology companies that have a positive impact on climate change and sustainability.” Some specific sectors include: Clean Energy Energy Efficieny and Storage Circular Economy Advanced Manufacturing and Materials Mobility Food Systems Related Resource: VCs Investing In Food & Bev Startups Portfolio Highlights Some of ArcTern’s most popular investments include: Palmetto Span Flashfood Learn more about ArcTern Ventures by checking out their Visible Connect profile → 6. Relay Ventures As put by the team at Relay Ventures, “We don’t fund companies. We fund founders. From the beginning, we have had a simple philosophy. We view founders as partners. We bring capital, networks, and experience, and our founders bring expertise, teams, and dreams. Together we build transformational businesses based on teamwork, trust, and aspiration. Because being a founder depends on it. Our track record speaks for itself.” Location Relay Ventures is headquartered in Toronto and invests in companies across North America. Company Stage Relay Ventures is focused on seed and pre-seed stage companies. Preferred industries Relay Ventures is industry agnostic and focuses on companies operating in large markets. Portfolio Highlights Some of Relay Ventures’ most popular investments include: Ecobee Bird Swift Learn more about Relay Ventures by checking out their Visible Connect profile → 7. Alate Partners As put by the team at Alate Partners, “We invest in courageous founders and transformational technology that will change the built world for the better. Founded as a partnership between Relay Ventures and Dream, our team has decades of experience in venture capital, operations, and real estate. In addition to providing capital, Alate has unique access to expertise and customers through our network of influential real estate partners, investors, and founders.” Location Alate Partners is headquartered in Toronto. Company Stage Alate Partners invest in companies around the Seed and Series A stages. Preferred industries As put by their team, “We exclusively invest in real estate and construction technology, so you can skip explaining the basics and focus on what matters most. Our knowledge and network are here to accelerate your growth.” Portfolio Highlights Some of Alate’s most popular investments include: Bird Altrio PadSplit Learn more about Alate by checking out their Visible Connect profile → 8. Real Ventures As put by their team, “Real Ventures is an early-stage venture firm focused on serving daring entrepreneurs with the ambition to create successful, global companies. Since 2007, Real Ventures has dedicated itself to building the Canadian startup ecosystem on the belief that people, not money, build game-changing companies. Real Ventures provides stage-specific guidance, mentorship, and access to networks and resources to fast-track founders’ personal and company growth. Real Ventures manages $325 million across five funds and its active portfolio of 100+ companies is currently valued at $10 billion.” Location Real Ventures is headquartered in Toronto and has an office in Montreal. They primarily invest in companies in Canada. Company Stage Real Ventures is focused on early-stage investments. Preferred industries As put by their team, “There is no standard answer, but there are three main things that we look for: a great team with unique insight on a market opening that has massive scaling potential. We like to hear bold ideas that have the potential to disrupt unconventional industries.” Portfolio Highlights Some of Real Ventures most popular investments include: Mejuri Integrate AI Unbounce Learn more about Real Ventures by checking out their Visible Connect profile → 9. Georgian As put by the team at Georgian, “We believe that entrepreneurs deserve an experience of growth capital that matches any other best-in-class technology partner. We’re focused on your experience as a growth-stage CEO, using data-driven insights to improve how our team supports you and your team.” Location Georgian is headquartered in Toronto and invests in companies across the globe. Company Stage Georgian is focused on companies that are generating $500k+ in MRR and are raising between $25M and $75M. Preferred industries Georgian is focused on B2B SaaS companies. Related Resource: FinTech Venture Capital Investors to Know Portfolio Highlights Some of Georgian’s most popular investments include: Beam Shopify Ritual Learn more about Georgian by checking out their Visible Connect profile → 10. Panache Ventures As put by the team at Panache Ventures, “We invest in the most promising founders — those who are automating, decentralizing, democratizing, and expanding human capabilities. We want to be the first to invest in your potential, and to support your leadership.” Location Panache is headquartered in Montreal and invests in primarily invests in companies in Montreal. Company Stage Panache invests in early-stage companies and tries to write the first check into their companies. Preferred industries Panache is industry agnostic in their approach. Related Resource: 10 VC Firms Investing in Web3 Companies Portfolio Highlights Some of Panache Ventures most popular investments include: Altrio Dwelling Relay Learn more about Panche Ventures by checking out their Visible Connect profile → Maximize your fundraising impact with Visible 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.
founders
Fundraising
FinTech Venture Capital Investors to Know in 2024
The last few years have been interesting for Fintech as we've seen both startups and established companies start to rethink the financial industry in order to adapt to a world that was rapidly changing thanks to crypto, blockchain, and the pandemic. Related resource: 14 FinTech Startups Shaping the Future of Finance Relevant trends from the past few years include: A surge in investments and interest in crypto and blockchain Financial services and products broadened as more partnerships were created thanks to embedded banking A shift from legacy infrastructures to core banking systems Fintech’s reach expanded to regions of the world that needed it most due to broken financial systems such as Southeast Asia, Africa, and Latin America There was a focus on innovation and global opportunities from VC’s and companies who are looking to take advantage of the increasing need for change within the Fintech industry Recent Investment highlights: (source) “Record number of fintech deals drives total investment to $210 billion in 2021” “Blockbuster year for crypto and blockchain, with $30 billion in investment globally” “‘Buy now, pay later’ space seeing large deals across jurisdictions” “Increasing focus on core banking replacements” “PE investment in fintech space more than doubles previous high” What we can take away from this is that fintech is emerging to be the leading sector within investments and 2022 will be a year of increased optimism and interest not only within Fintech but subsectors (such as Defi), which are well positioned to keep evolving and make a huge impact on the world and the financial system as we know it. There is a huge need for modernizing core banking platforms and even replacing banking systems- making it the best time to launch a fintech startup as well as invest in one. TechCrunch conducted interviews with some of the top VCs within the fintech space and said the two biggest topics that are spiking the interest of investors are crypto and Latin America investments. Others have said that there is also an increasing interest in B2B payments, BNPL (buy now, pay later platforms), embedded services (embedded lending, embedded insurance and embedded capital markets businesses- source). KPMG’s top predictions for the fintech market globally in 2022: (Source) A growing number of banks will offer embedded solutions There will be increased regulatory scrutiny of embedded finance offerings Fintechs will focus on branding themselves as data organizations ESG-focused fintechs will have a big growth trajectory There will be a stronger focus on dealmaking in underdeveloped regions. Unicorn status will lose some of its luster in developed markets, but remain key in emerging ones Related Resource: 15 Cybersecurity VCs You Should Know Related Resource: 14 Gaming and Esports Investors You Should Know Visible looks to help connect founders with investors all over the world. Below, we highlight 10 of our favorite FinTech venture capitalists. Search through these investors and 13,000+ more on Visible’s Connect platform. FinTech Collective Location: New York, New York, United States About: The firm is currently investing out of its third fund, a $200m early-stage fund with a focus on capital markets, wealth and asset management, banking-lending-payments, and insurance. The firm actively invests in decentralized finance (“defi”) opportunities across these segments. Thesis: Our ambition is to create the future of financial services, bringing transparency and choice to developed markets and financial connectivity and socio-economic mobility to developing markets. Investment Stages: Seed, Series A, Series B Recent Investments: Qlub NYDIG Anyfin Accel Location: Palo Alto, California, United States About: Accel is a leading venture capital firm that invests in people and their companies from the earliest days through all phases of private company growth. Atlassian, Braintree, Cloudera, CrowdStrike, DJI, Dropbox, Dropcam, Etsy, Facebook, Flipkart, FreshWorks, Jet, Qualtrics, Slack, Spotify, Supercell, UiPath and Vox Media are among the companies the firm has backed over the past 35 years. Thesis: We partner with exceptional founders with unique insights, from inception through all phases of growth. Investment Stages: Pre-Seed, Seed, Series A, Series B, Series C, Growth Recent Investments: NiYO Solutions Coast Genesis Global Anthemis Group Location: New York and London About: Our deep understanding of markets and models, passion for emerging technology and values inspire everything we do. By creating fertile ground for a diverse group of startups, investors, entrepreneurs, institutions, academics, and visionaries to converge, we believe we can solve the financial services world’s most pressing challenges faster, better and for the benefit of all. Thesis: Invests in startups that leverage technology to significantly impact the financial system. Investment Stages: Pre-Seed, Seed, Series A, Series B, Series C, Growth, Early Stage, Startup Studio (Lab) Recent Investments: Atom Bank tide Flat.mx Related Resource: 15 Venture Capital Firms in London Fueling Startup Growth RRE Ventures Location: New York, New York, United States About: RRE Ventures is a New York-based venture capital firm that offers early-stage funding to software, internet, and communications companies. Investment Stages: Series A, Series B Recent Investments: Venmo Bol Capitalize Greycroft Location: New York, New York, United States About: Greycroft is a venture capital firm that focuses on technology start-ups and investments in the Internet and mobile markets. Investment Stages: Pre-Seed, Seed, Series A, Series B, Growth Recent Investments: Procurated CyberFortress Kandji Insight Partners Location: New York, New York, United States About: Insight Partners is the most trusted scale-up firm in the software industry. Thesis: We support companies in good times, as well as challenging ones. Investment Stages: Pre-Seed, Seed, Series A, Series B, Series C, Growth Recent Investments: ncino checkout.com coast QED Investors Location: Alexandria, Virginia, United States About: QED Investors actively supports high-growth businesses that use the information to compete — and win. Investment Stages: Seed, Series A, Series B Recent Investments: zibo bitso Index Ventures Location: San Francisco, California, United States About: They are an international venture capital firm based in London, San Francisco and Geneva Thesis: Other firms invest in deals, Index invests in people. A deal is transactional. Relationships endure, and ours are based on curiosity, thoughtfulness, and deep conviction. Investment Stages: Seed, Series A, Series B, Series C, Growth Recent Investments: CoverWallet Savvy Wealth Fireblocks Related Resource: The 11 Best Venture Capitals in San Francisco Better Tomorrow Ventures Location: San Francisco, CA About: BTV is an early stage fintech focused fund that leads rounds in pre-seed and seed-stage fintech companies globally. We take a pretty broad view on fintech, and many vertical SaaS and marketplace businesses fit in our purview too. Thesis: We invest for a better future (hence the name); financial technology is a great way to improve people’s lives. Investment Stages: Pre-seed, Seed Recent Investments: Brick CreditBook Clubbi Bain Capital Ventures Location: Boston, Massachusetts, United States About: Bain Capital Ventures is a global private equity firm with over $17 billion of assets under management. Since 1984, the firm has invested in over 200 companies, with such notable successes as Aspect Development, DoubleClick, Gartner Group, and Netfish Technologies. Bain Capital Ventures manages a $250 million fund. Bain Capital Ventures partners with exceptional management teams to help early stage companies become long-term leaders in their markets. Thesis: We partner with disruptive founders to accelerate their ideas to market. Investment Stages: Pre-Seed, Seed, Series A, Series B, Growth Recent Investments: Orum Material Bank Reonomy American Express Ventures Location: Palo Alto, California, United States About: Seeks to invest in innovative startups in order to enhance the company’s core capabilities and accelerate their efforts in consumer commerce and B2B services. Investment Stages: Seed, Series A, Series B, Series C, Growth Recent Investments: Finmark Pinwheel Statespace SignalFire Location: San Francisco, California, United States About: SignalFire is a venture capital firm that invests in seed-stage companies and breakout companies. Investment Stages: Seed, Series A Recent Investments: Tradeswell PlanetScale ​​Ro Torch Capital Location: New York, New York, United States About: Torch Capital is a brand-focused investment firm built to shepherd the next generation of industry changing mission driven consumer companies. We invest in consumer platforms, products and services from healthcare, fintech, and food & beverage, to digital media, e-commerce and marketplaces. Investment Stages: Pre-Seed, Seed, Series A Recent Investments: Embed Lili Little Otter Mouro Capital Location: London, England About: Mouro Capital is a venture capital firm that backs entrepreneurs and start-ups who are shaping the future of financial services. With $400m AuM and the support of Banco Santander, the fund targets early to growth stage investment opportunities across Europe, North America and Latin America. The fund brings fintech expertise, a global network and a track-record of successful investments and market recognition from our core investment team to scaling start-ups. Recent Investments: a55 Digital Asset Holdings Curve Canaan Partners Location: Westport, Connecticut, United States About: Canaan Partners invests more than money in a company—they invest their time, experience, knowledge, connections and team-oriented approach. They place tremendous value on creating working partnerships with entrepreneurs and management teams who have the character and the drive to succeed. Prominent among Canaan’s resources is the breadth of operating, managerial and financial experience. Investment Stages: Seed, Series A, Series B, Growth Recent Investments: Kickpay CircleUp Italic Related Resource: Atlanta’s Hottest Venture Capital Firms: Our Top 9 Picks Additional FinTech Resources Downloadable KPMG’s Pulse of Fintech H2’21 Download this edition for: Global and regional analysis with key investment data and insights Top fintech trends for 2022 and beyond Interviews with Quantexa and Thought MachineFintech segment insights for a deeper dive into payments, insurtech, regtech, Wealthtech, cybersecurity, blockchain and cryptocurrency Spotlight articles on Emerging Markets: LATAM and Africa. Other Investor Lists 15 Venture Capital Firms Investing in VR 10 Gaming and Esports Investors You Should Know 10 Venture Capitalists Investing in Cannabis 60+ Active Seed Stage SaaS Investors & Fundraising Tips 23 Top VC Investors Actively Funding SaaS Startups Exploring VCs by Check Size 10 VCs Investing In Food & Bev Startups 10 Blockchain Investors Founders Should Know 10 VC Firms Investing in Web3 Companies 15 Direct to Consumer (D2C) VC Investors You Need to Know Start Your Next Round with Visible We believe great outcomes happen when founders forge relationships with investors and potential investors. We created our Connect Investor Database to help you in the first step of this journey. 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 VC’s and accelerators who are looking to invest in companies like you. Check out all our FinTech investors here. After learning more about them with the profile information and resources given you can reach out to them with a tailored email. To help craft that first email check out 5 Strategies for Cold Emailing Potential Investors and How to Cold Email Investors: A Video by Michael Seibel of YC. 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.
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Fundraising
Berlin Venture Capital Investors to Know in 2024
Over the last decade, Berlin has transformed into the Silicon Valley of Germany and become a hotspot for founders and venture capital, with over 500 startups and around 40,000 business registrations per year. The city is the perfect environment for entrepreneurs to start and scale their businesses. Favorable conditions include highly qualified international talent, lots of networking opportunities and a vibrant social scene, a high standard of living at a relatively low cost, and a very active VC scene. Some of the well-established startups that call Berlin home are Soundcloud, Zalando, GetYourGuide, Delivery Hero, HelloFresh, N26, Tier Mobility, and Grover- just to name a few. Alternate funding opportunities, accelerators, and startup communities that are specific to Berlin Berlin government grants IBB BSS Accelerators and Incubators entrepreneur first Antler SIB (Startup Incubator Berlin) Expedite Ventures: Expedite Ventures is a Business Angel group of CTOs and CPOs. “We support tech founders hands-on with our know-how and capital. We’re nerds at heart, all passionate founders ourselves – some of us are still running startups. We have decades of collective experience in building and scaling technology companies. We offer a true hands-on mentoring approach, which we think is at least as important as capital. That’s why we provide both – plus a perspective that typical business-oriented angels and most VCs simply can’t provide.” Startup Scholorships IHK Berlin: Set-up subsidy for those unemployed Bayer G4A– partners with healthcare startups and technology companies that are developing innovative solutions in healthcare. Encourage Ventures: The investor network for female founders Notable Angels include co-founders and former MDs from Blinkist, N26, and mysugr. Innovators Room– helps founders, investors, corporate innovators as well as rising talent to network and advance their career together, through our Slack community, TechJobs newsletter and various online and offline learning events. Factory Berlin– provides members a curated network of entrepreneurs, professionals and creators, exclusive networking and knowledge-sharing events and programs, and access to our two locations in Berlin. WLOUNGE– a connector, change-maker, door opener, inspiration, access, enabler, and empowerment, headquartered in Berlin. A key player in the German Tech ecosystem and globally. We are global, founded to support diversity and women in business and technology. Each year we provide innovative services, workshops, round tables, The Tech Awards Gala, delegations, conferences, investment scouting, female founders program, leadership and fundraising, Growth opportunities, matchmaking activities between startups and corporates. BerChain– A non-profit association based in Berlin, connecting and promoting the Berlin Blockchain community from throughout the Blockchain ecosystem and beyond, positioning Berlin as the global Blockchain Capital. Hubraum-hubraum is Deutsche Telekom’s tech incubator. By bringing early-stage startups and the leading European telco together, hubraum sparks innovation transfer and creates business opportunities for both sides. Since 2012, hubraum has been collaborating with the digital ecosystem out of its campuses in Berlin, Krakow and Tel Aviv. EXIST– EXIST aims at improving the entrepreneurial environment at universities and research institutes. FoodLabs– FoodLabs is a venture studio and investor for startups that shape the future of nutrition, sustainability and health. Berlin VC Investment Within the Last 10 Years: Events StartUpNight– This will be the 10th year of the event which includes stage programs, workshop sessions, and pitch opportunities, experts from venture capital firms, corporates, and funding institutions will give founders the opportunity to present themselves and their innovations and get answers to their questions on important topics such as funding. Hub.berlin– The business festival for digital movers and makers. TOA– Tech Open Air Resources Berlin Startup Report (only in German) Berlin Startup Resources Berlin Startup Map Top 10 Government Grants Guide to Berlin startup funding German Startup News EU Startups Business Insider: Grunderszene Startup-Insider VCs Investing in Berlin Startups Lakestar Location: Zürich, Zurich, Switzerland About: Lakestar invests with a long term view across all stages from Seed to Growth. We have been privileged to partner with some of the world’s best tech entrepreneurs. Their stories are inspirational and make us proud. Thesis: Our vision is of a world of technology-enabled, progressive societies, born of the very best ideas that founders can dream up and that we can help realise. Investment Stages: Seed, Early, Growth Recent Investments: 1047 Games AccuRx Aetion To learn more about Lakestar, check out their Visible Connect Profile. Related Resource: 8 Active Venture Capital Firms in Germany June Fund Location: Berlin, Germany About: June is a global technology investor, backed by leading industrial minds. June invests into new paradigms across all stages – from networks to infrastructures to open software platforms. We take a macro-thematic view on technological progress, new economic models and value creation. June’s breadth of experience, intellectual curiosity and long-term thinking have attracted exceptional teams and individuals. Investment Stages: Pre-Seed, Seed, Series A, Series B, Series C, Growth Recent Investments: Reebelo Statespace SimScale To learn more about Lakestar, check out their Visible Connect Profile. HV Capital Location: Berlin, Munich, Germany About: Founded in 2000, they are one of the leading independent European early stage funds. Investment Stages: Pre-Seed, Seed, Series A Recent Investments: Storyblok KoRo Flip To learn more about HV Capital, check out their Visible Connect Profile. Target Global Location: Berlin, Berlin, Germany About: We’re an international VC headquartered in Berlin with €800m+ AuM, focusing on fast-growing tech companies across their lifecycles. With offices in London, Tel Aviv, & Barcelona, we connect the key European startup ecosystems. We help exceptional entrepreneurs to build market leaders. Investment Stages: Pre-Seed, Seed, Series A Recent Investments: Masterschool Reverence Casava To learn more about Target Global, check out their Visible Connect Profile. Acton Capital Location: Munich, Bayern, Germany About: Acton Capital Partners is a specialist investor in internet- and mobile-based, consumer-oriented businesses. Having managed more than 30 investments since 1999 as the corporate venture capital business of Hubert Burda Media, the German family-owned global media company, the Acton team brings a wealth of expertise to the companies in which it invests, delivering superior capital returns. Investment Stages: Series A, Series B Recent Investments: Convelio Zenjob Knix Wear To learn more about Acton Capital, check out their Visible Connect Profile. IBB Location: Berlin, Germany About: Investing in Berlin-based start-ups with a focus on Tech (e.g. Software & IT, Industrial Tech, Health Care) and other business model innovations (e.g. Digital Consumer and Media Businesses). Thesis: IBB Ventures is for all those who make a difference and create a sustainable future. We invest public funds as venture capital and, together with Berlin startups, help to promote our capital as a business location. Our focus is on innovative ideas and ambitious founders. With our many years of experience we are at your side and help you to successfully implement your ideas. Investment Stages: Seed, Series A Recent Investments: Blinkist Babbel The Female Company To learn more about IBB, check out their Visible Connect Profile. Speedinvest Location: Berlin, London, Munich, Paris, and Vienna, Austria About: We have 40 investment pros in Berlin, London, Paris, Munich, Vienna, San Fran & an in-house team of 20 operational experts to support you from day one. We fund early-stage Fintech, Digital Health, Consumer Tech, Network Effects, Deep Tech & Industrial Tech. Send us your pitch! Thesis: Speedinvest is a leading early-stage venture capital firm with more than €600M AuM and 40 investors based in Berlin, London, Munich, Paris, and Vienna. Our dedicated sector-focused teams are the first to fund Europe’s most innovative technology startups and our in-house operational experts are on-hand to offer founders ongoing support with growth, HR, US market expansion, and more. Wefox, Bitpanda, TIER Mobility, GoStudent, Wayflyer, CoachHub, Schüttflix, TourRadar, Adverity, and Twaice are among our portfolio of 250+ companies. Learn more at www.speedinvest.com. Investment Stages: Pre-Seed, Seed, Series A Recent Investments: Bliq Byrd Kevin To learn more about Speedinvest out their Visible Connect Profile. Verve Ventures Location: About: Verve Ventures provides its pan-European network of selected private and institutional investors access to those top-tier investment opportunities. The company invests from EUR 500k to several million from Seed to Series B and beyond across Europe. Verve Ventures’ dedicated team helps startups with their most pressing needs such as hiring, client introductions and access to an expert network of high-profile individuals. To become part of Verve Ventures’ growing network of entrepreneurs and investors, visit verve.vc. Thesis: Investing in technology and science-driven startups. Adding value through our exclusive network of investors. Investment Stages: Seed, Series A, Series B Recent Investments: Soter Analytics Byrd helios To learn more about Verve Ventures, check out their Visible Connect Profile. Cherry Ventures Location: Berlin, Germany About: Cherry Ventures is an early-stage venture capital firm led by a team of entrepreneurs with experience building fast-scaling companies such as Zalando and Spotify. The firm backs Europe’s boldest founders, usually as their first institutional investor, and supports them in everything from their go-to-market strategy and the scaling of their businesses. Cherry Ventures has previously invested in the seed stage of over 70 companies across Europe, including FlixBus, Auto1 Group, Flaschenpost, Infarm, Rows, Forto, SellerX, Juni, and Flink. Cherry Ventures is based in Berlin and invests across Europe with operations in London and Stockholm. Thesis: Founders first and investors second. Investment Stages: Pre-Seed, Seed Recent Investments: Klar Cosuno NUMA Group To learn more about Cherry Ventures check out their Visible Connect Profile. EQT Ventures Location: Stockholm, Stockholms Lan, Sweden About: EQT Ventures is a sector agnostic, multi-stage VC fund, with just over €1.2 billion total capital raised. The fund’s team of former founders and operators from the likes of Spotify, Booking.com, Hotels.com and King have experienced the entrepreneurial journey firsthand and know how challenging it can be. They’re ready to support the next generation of entrepreneurs in Europe and the US with the expertise and advice needed to build global success stories. Investment Stages: Seed, Series A, Series B, Series C Recent Investments: Moralis Instabox Nothing To learn more about EQT Ventures, check out their Visible Connect Profile. Blueyard Capital Location:Berlin, Germany About: BlueYard invests in founders with transforming ideas that decentralize markets and empower humanity. Typically $1-3m as an initial investment; active around the world. Most active in crypto/web 3 (e.g. Protocol Labs, Filecoin, Open Zeppelin, Radicle), technologies that help us overcome our largest planetary challenges (e.g. Marvel Fusion, Meatable, Dance), frontier biology to help us live long and prosper (e.g. BitBio, Biofidelity) and vertical software un-bundling monopolies (e.g. Pitch, Wonder). Thesis: BlueYard seeks to invest in founders with transforming ideas that decentralize markets. Investment Stages: Pre-seed, Seed, Series A Recent Investments: Privy Dance FreedomFi To learn more about Blueyard Capital, check out their Visible Connect Profile. Expedite Ventures Location: Berlin, Germany About: Expedite Ventures is a Business Angel group of CTOs and CPOs. We support tech founders hands-on with our know-how and capital. We offer a true hands-on mentoring approach, which we think is at least as important as capital. That’s why we provide both – plus a perspective that typical business-oriented angels and most VCs simply can’t provide. Investment Stages: Pre-seed, Seed Recent Investments: Superlist widgetbok supernova To learn more about Expedite Ventures, check out their Visible Connect Profile. Start Your Next Round with Visible We believe great outcomes happen when founders forge relationships with investors and potential investors. We created our Connect Investor Database to help you in the first step of this journey. 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 VC’s and accelerators who are looking to invest in companies like you. Check out all our investors here and filter as needed. After learning more about them with the profile information and resources given you can reach out to them with a tailored email. To help craft that first email check out 5 Strategies for Cold Emailing Potential Investors and How to Cold Email Investors: A Video by Michael Seibel of YC. 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.
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Fundraising
Corporate Venture Capital vs. Venture Capital: Understanding the Differences
How Corporate Venture Capital Differs from Traditional VC Corporate Venture Capital (CVC) is a form of venture capital where a large corporation invests in early-stage or start-up companies that are aligned with their strategic interests. In this form of investment, the corporation provides funding, as well as strategic and operational support to the start-up, in exchange for equity or ownership in the company. CVC is different from traditional venture capital in that the corporate investor is not only interested in financial returns but also seeks to protect its corporate strategy and gain a competitive advantage through the investment. By investing in startups, corporations hope to gain access to innovative technologies, products, or services that can enhance their own operations or offer new growth opportunities. CVCs are commonly found in industries such as technology, healthcare, and energy, where innovation plays a critical role. CVCs typically have a single firm as their limited partner, resulting in a highly concentrated capital source. The parent corporation plays a significant role in the daily operations of the corporate venture. CVC teams are expected to closely monitor their portfolio companies and regularly share insights and reports with their corporate partner. Related resource: Understanding Contributed Equity: A Key to Startup Financing Benefits of Partnering with a CVC Partnering with Corporate Venture Capital can offer significant benefits beyond just funding. By providing access to resources, expertise, partnership opportunities, flexibility in investment terms, and long-term support, CVCs can help startups accelerate their growth. Access to Resources and Expertise Since CVCs are backed by large, established corporations they have significant resources, such as research facilities, new technologies, specialized expertise, and established networks that can be leveraged by their CVC arms to support their portfolio companies. They also have a more extensive network of contacts in their industry than traditional VCs because the parent company of the CVC likely has established partnerships, customers, and suppliers that they can leverage to provide strategic support to their portfolio companies. CVCs may also provide startups with mentoring, coaching, and strategic guidance from experts related to them. More Skin in the Game and Long-term Support CVCs have a vested interest in the success of their portfolio companies because they are seeking strategic value in addition to financial returns. This means that they are motivated to provide ongoing support, guidance, and resources to help their portfolio companies achieve their goals. Partnership Opportunities These partnerships can provide startups with access to new markets, distribution channels, and customer bases. Partnering with a CVC can also help startups to gain credibility and visibility in their industry, which can be particularly valuable for early-stage startups. Founders Should Focus on Alignment with CVCs Corporate Venture Capital typically invests in companies that align with their strategic interests. Founders should identify CVCs that are a good fit for their business, by researching their areas of expertise, target industries, and investment focus. By focusing on CVCs that have expertise in the company’s industry or sector, founders can ensure that as a partner they can offer them valuable insights, resources, and connections and have a deep understanding of the founder’s business. This provides startups with strategic value beyond just financial support. CVCs often have a specific investment focus, such as early-stage startups or companies that are developing new technologies. By understanding the CVC’s investment focus, founders can determine if they fit the investment criteria of the CVC. This can help ensure that the CVC is interested in investing in their business and that there is a mutual fit between the founder’s business and the CVC’s investment strategy. Founders should also evaluate the CVC’s track record to determine if they are a good fit for their business. This involves researching the CVC’s past investments, looking at the success rates of those investments, and speaking with other founders who have partnered with the CVC. By evaluating their track record, founders can determine if the CVC has a history of success in their industry or sector and if they are a good fit for their business. Examples of Successful Partnerships Between CVCs and Startups Intel Capital and DocuSign Intel Capital, the corporate venture capital arm of Intel, invested in DocuSign, an electronic signature technology company. Intel Capital’s investment provided DocuSign with access to Intel’s expertise in hardware and software technologies, as well as its global network of customers and partners. This partnership helped DocuSign expand its market reach and enhance its product offerings, while Intel Capital gained strategic insights into the digital transformation space. Google Ventures (GV) and Uber GV, the venture capital arm of Alphabet Inc. (Google‘s parent company), made an early investment in Uber. GV provided Uber with not only financial backing but also access to Google’s mapping and technology resources, which significantly contributed to Uber’s growth and expansion. This partnership allowed Uber to leverage Google’s expertise in mapping and navigation services, enhancing the overall user experience of the Uber app. Qualcomm Ventures and Fitbit Qualcomm Ventures, the investment arm of Qualcomm, invested in Fitbit, a leading wearable technology company. Through this partnership, Fitbit gained access to Qualcomm’s advanced semiconductor technology and wireless connectivity expertise. Qualcomm Ventures supported Fitbit in developing innovative wearable devices with improved performance and connectivity, helping Fitbit strengthen its market position and technological capabilities. CVC vs Traditional VC Investment Process The investment process with a CVC can be different from that of a traditional VC. CVCs typically focus on assessing strategic fit, have a longer-term perspective, share resources and expertise with their portfolio companies, and may have a different governance structure. Founders seeking investment from a CVC should be aware of these differences and tailor their pitch accordingly to ensure a successful partnership. The investment process with a Corporate Venture Capital (CVC) firm can be different from that of a traditional VC in several ways. Here are some key differences: Strategic Fit Assessment Unlike traditional VCs, CVCs usually invest in startups that align with their parent company’s strategic interests. This means that before investing in a startup, a CVC will first assess whether the startup aligns with its parent company’s strategic priorities. This strategic fit assessment can involve evaluating how the startup’s product or service fits into the parent company’s product roadmap, assessing whether the startup’s technology can be integrated with the parent company’s existing technology, and determining if the startup’s target market aligns with the parent company’s customer base. Long-Term Perspective CVCs typically have a longer investment horizon than traditional VCs. While traditional VCs typically look to exit their investments in 5-7 years, CVCs may have a longer-term view and are often interested in building strategic partnerships with their portfolio companies that can last for many years. This longer-term perspective can impact the investment process, as CVCs may be more interested in investing in startups that have the potential to grow into long-term partners rather than those that can provide a quick return on investment. Resource and Expertise Sharing CVCs often have access to extensive resources and expertise from their parent companies, which they can share with their portfolio companies. This means that the investment process may involve evaluating whether a startup can benefit from the parent company’s resources and expertise and how that support can be provided. For example, a CVC may look for startups that can benefit from access to the parent company’s distribution network, research facilities, or specialized expertise. Governance Structure Since the parent company of the CVC is heavily invested in the success of the portfolio companies, the CVC may have more involvement in the day-to-day operations of the startup than a traditional VC. This can impact the investment process, as the CVC may be more interested in having a board seat or other forms of governance control to ensure that the startup aligns with the parent company’s strategic goals. Resources Portfolio Monitoring for Corporate Venture Capital Investors The Counter Club by Counterpart Ventures Startup incubators or accelerators that have partnerships or connections with CVC firms: Y Combinator Techstars 500 Startups Corporate Venture Capital Investors JLL Spark Pruven Wayra Brand Capital Coinbase Ventures SR One Chiratae Ventures BDMI NTT DOCOMO Ventures Start Your Next Round with Visible We believe great outcomes happen when founders forge relationships with investors and potential investors. We created our Connect Investor Database to help you in the first step of this journey. 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. After learning more about them with the profile information and resources given you can reach out to them with a tailored email. To help craft that first email check out 5 Strategies for Cold Emailing Potential Investors and How to Cold Email Investors: A Video by Michael Seibel of YC. 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.
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Fundraising
The 11 Best Venture Capitals in San Francisco in 2024
At Visible, we typically 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 12 Best VC Funds You Should Know About Like sales, a healthy fundraising funnel starts by finding the right investors. This can be based on geography, check size, focus areas, etc. For founders looking for investors in the San Francisco area, check out our list below: 1. Accel As put by their team, “Accel is a leading venture capital firm that invests in people and their companies from the earliest days through all phases of private company growth.” Focus and industry: Accel is industry agnostic Funding stage: Accel invests across many stages — from pre-seed to series B and beyond Accel is synonymous with venture capital in San Francisco. Accel was founded in 1983 and has since funded 1,500+ companies. They have funds across the globe and invest in founders across many geographies, industries, and stages. Some of their most popular investments include: Facebook Slack Spotify Location: Palo Alto, CA Learn more about Accel by checking out their Visible Connect profile → 2. Greylock Partners As put by their team, “At Greylock, our mission is to help realize rare potential. To do this well, we believe it’s essential to be trusted partners to entrepreneurs at every stage — from idea to IPO. The entrepreneurs we back have the vision to build something huge that hasn’t existed before. They are paranoid about what could go wrong — but are obsessed with what can go right. They are mission-driven, intellectually honest and infinite learners. They have raw ambition, bravery, and grit. They don’t give up, ever. And they are unique in their ability to lead and inspire others to join their journey.” Focus and industry: Greylock is focused on enterprise, consumer, and crypto software Related Resource: FinTech Venture Capital Investors to Know Funding stage: Greylock invest from pre-seed to series B and beyond As put by their team, “We focus on enterprise, consumer, and crypto software at Seed and Series A, and also make new company investments in Series B and beyond. We support entrepreneurs throughout their journey from idea to IPO and onwards.” Some of their most popular investments include: Airbnb Facebook Figma Location: Menlo Park, CA Learn more about Greylock by checking out their Visible Connect profile → 3. Menlo Ventures As put by their team, “Genuinely, actively invested. Invested in your success, but also your struggles. Your questions, your concerns, your highs, your lows. We don’t just invest our dollars, we invest our dedication, our drive. Our tested advice and trusted support. That’s because, when we find an idea we believe in, we’re all engaged. When we’re in, we’re ALL IN.” Focus and industry: Menlo Ventures focuses on the following industries: Consumer Cloud Infrastructure Cybersecurity Fintech Healthcare SaaS Supply Chain and Automation Related Resource: 15 Cybersecurity VCs You Should Know Funding stage: Menlo Ventures across stages from inception to series B and beyond As put by their team, “We are investors and company builders—we know what it takes to turn a budding idea into a scalable business. We work with early-stage founders to find product-market fit, develop go-to-market strategies, scale their organizations, and support them as they grow.” Some of their most popular investments include: Affinity Minted Roku Location: Menlo Park, CA Learn more about Menlo Ventures by checking out their Visible Connect profile → 4. Spark Capital As put by their team, “We are Spark Capital, investors in products we love by creators we admire, including Affirm, Carta, Cruise, Discord, Oculus, Plaid, Postmates, Slack, Twitter, and Wayfair. We know there are no playbooks or formulas for success and are here to help founders win their own way. We invest across all sectors and stages, and work out of San Francisco, Boston, and New York City.” Focus and industry: Spark Capital invests across all industries Funding stage: Spark Capital invests across all stages Like many of the funds on this list, Spark Capital has been investing across all industries and all stages for decades. Some of their most popular investments include: Twitter Slack Affirm Location: San Francisco – Boston – New York Learn more about Spark Capital by checking our their Visible Connect profile → 5. Bessemer Venture Partners As put by their team, “Bessemer Venture Partners is the world’s most experienced early-stage venture capital firm. With a portfolio of more than 200 companies, Bessemer helps visionary entrepreneurs lay strong foundations to create companies that matter, and supports them through every stage of their growth.” Focus and industry: BVP invests across many industries Funding stage: BVP invests in early-stage companies BVP has become a leader in early-stage investments. They focus on companies across the globe and have backed some of the most famous companies to date. Some of their most popular investments include: LinkedIn Shopify Yelp Location: San Francisco, CA Learn more about Bessemer Venture Partners by checking out their Visible Connect profile → 6. Altos Ventures As put by their team, “Altos Ventures was founded in 1996, to exclusively address the needs of promising, young technology companies and entrepreneurs. Because of their focus on entrepreneurs – along with their network of co-investors, partners, and industry experts—they know how to build viable business models so companies can move on to the next stage of growth.” Focus and industry: List the focus, industry, or types of companies this VC typically invests in. Funding stage: Altos Ventures is focused on early-stage companies Altos Ventures is a purpose-driven investment fund that is focused on the fundamentals. Some of their most popular investments include: Bench Outdoorsy Roblox Location: Menlo Park, CA Learn more about Altos Ventures by checking out their Visible Connect profile → 7. Andreessen Horowitz As put by their team, “Andreessen Horowitz was established in June 2009 by entrepreneurs and engineers Marc Andreessen and Ben Horowitz, based on their vision for a new, modern VC firm designed to support today’s entrepreneurs. Andreessen and Horowitz have a track record of investing in, building and scaling highly successful businesses.” Focus and industry: Andreessen Horowitz invests across many industries, including: Bio + Health Cultural Leadership Consumer Crypto Enterprise Fintech Games Related Resource: 15 Venture Capital Firms Investing in VR Funding stage: Andreessen Horowitz invests across all stages. As put by their team, “a16z is defined by respect for the entrepreneur and the company building process; we know what it’s like to be in the founder’s shoes. The firm is led by general partners, many of whom are former founders/operators, CEOs, or CTOs of successful technology companies, and who have domain expertise ranging from biology to crypto to distributed systems to security to marketplaces to financial services.” Some of their most popular investments include: Affirm Airbnb Coinbase Location: Menlo Park, CA Learn more about Andreessen Horowitz by checking out their Visible Connect profile → 8. Expa As put by their team, “Expa is where the best startups find support and funding to scale. Collectively, we’ve launched dozens of companies, supported 50+ founders, and reached hundreds of millions of users. Our community of builders includes the founders and leaders of Uber, Virgin Galactic, Twitter, Current, and more.” Focus and industry: Expa invests across many industries Funding stage: Expa focuses on early-stage investments As put by their team, “Expa was created by Uber co-founder Garrett Camp to support the next generation of founders. The partners at Expa are builders and operators themselves, who can provide founders with practical advice in product design, branding, engineering, operations, and recruiting.” Some of their most popular investments include: Aero Drip Radar Location: San Francisco, CA Learn more about Expa by checking out their Visible Connect profile → 9. Benchmark Venture Capital As put on their Visible Connect profile, “Benchmark Capital is focused on one, and only one, mission: to help talented entrepreneurs build great technology companies. That’s what drives them and everything they do – from how they organize their firm to their investment strategy.” Focus and industry: Benchmark is focused on social, mobile, local, and cloud companies. Funding stage: According to their Visible Connect profile, “Their investments range in size from as little as $100,000 to as much as $10 or $15 million. Typically, they invest $3 to $5 million initially and expect to invest $5 to $15 million over the life of a company.” Benchmark has raised 6 funds that span 2 decades. Some of Benchmark’s most popular investments include: Asana Dropbox Zillow Location: San Francisco, CA Learn more about Benchmark by checking out their Visible Connect profile → 10. First Round Venture Capital As put by their team, “We’re focused on being the world’s best partner for founders at the very first stages of company creation — so we’ve designed the firm to do just that. When you work with First Round, you get super active partners (most of whom are former founders themselves) working side-by-side with you on your biggest and smallest challenges.” Focus and industry: First Round invests across all industries Funding stage: First Round likes to be the first check in a company, regardless of stage. As put by their team, “Typically, our initial investment in a startup ranges from $1 million to $5 million, but we’ve gone higher and lower in some cases. Currently, our average initial investment is right around $3 million.” Some of First Round’s most popular investments include: Notion The Black Tux Uber Location: San Francisco – New York – Philadelphia 11. Y Combinator Y Combinator is synonymous with accelerators. As put by their team, “Y Combinator (YC) is a startup fund and program. Since 2005, YC has invested in nearly 3,000 companies including Airbnb, DoorDash, Stripe, Instacart, Dropbox, and Coinbase. The combined valuation of YC companies is over $300B. YC has programs and resources that support founders throughout the life of their company.” Focus and industry: Y Combinator invests across all industries. Funding stage: Y Combinator helps companies launch with a $500k check. Since its inception in 2005, Y Combinator has been accredited for helping launch, fund, and grow some of the most prolific startups. Some of their most popular investments include: Airbnb DoorDash Stripe Location: San Francisco, CA Find top investors in the Bay Area with Visible 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.
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Fundraising
A Founder’s Guide to Accelerators Funding Startups in 2024
As an ambitious founder, joining an accelerator program can be a major stepping stone on the path to startup success. By joining an accelerator, startups can fast-track their progress, gaining access to resources and networks that would otherwise take years to build. The impact of such programs is evident when we look at companies like Dropbox, Airbnb, and Reddit, each of which gained invaluable benefits from accelerator experiences with Y Combinator. By turbocharging their development, these companies leaped ahead, becoming industry leaders and household names. In this article, we’ll delve deeper into the world of accelerators, helping you understand why such a program could be a game-changer for your startup and some startup Accelerators to consider from our Connect investment database. Benefits of Joining an Accelerator One of the most significant advantages of accelerator programs lies in the mentorship they provide. Founders are often paired with experienced entrepreneurs, investors, or industry experts who guide them through their growth trajectory. These mentors provide a wealth of industry insights, and strategic guidance that can open doors to significant networking opportunities. Alongside this, accelerators usually offer a certain amount of funding in exchange for equity. This early-stage capital injection can be crucial for startups to build their prototype, hire talent, or scale their operations. It also opens up a vast network of fellow founders, investors, and industry professionals, creating an ecosystem of collaboration and learning. Additionally, founders gain access to resources and tools, such as workspaces, training sessions, and state-of-the-art technology. Accelerators ensure startups have what they need to succeed in today’s competitive market. These cumulative benefits can often be the catalyst that propels a young startup from stagnation to rapid growth. “We surveyed 43 founders who attended these accelerators to better understand their biggest takeaways from each respective program. Founders highlighted many aspects of the accelerator programs, including access to quality advisers, mentors, and corporations, the strength of the program’s network, and the benefits of an environment that encourages deep thinking and iteration. They also appreciated education on fundraising and warm connections to investors and potential customers. On the other hand, founders expressed the need for more education on running a company.” – PitchBook Newsletter Selection Criteria and Application Process Accelerators receive a plethora of applications, but only a handful make the cut. Therefore, understanding the selection criteria is crucial. Generally, these programs look for startups with high business potential, meaning your idea should solve a significant problem and have a sizable market. Team composition also plays a vital role; accelerators prefer diverse, dedicated, and capable teams that can withstand the rigors of startup life. Scalability is another crucial factor; your business should have the potential to grow rapidly and provide a return on investment. As for the application process, it usually begins with an online application where you’ll provide information about your startup and why you believe it would benefit from the program. You’ll likely need to submit a pitch deck – a brief presentation outlining your business plan. If your application is shortlisted, the next stage is usually an interview with the accelerator’s selection committee. This is your opportunity to demonstrate your passion, knowledge, and commitment. Related resource: Our Teaser Pitch Deck Template Startup Growth Metrics and Benchmarks For startups looking to attract accelerator interest and subsequent investment, monitoring and presenting the right growth metrics is critical. Key metrics include Monthly Recurring Revenue (MRR) and Year-over-Year (YoY) growth to showcase revenue consistency and scalability. Customer Acquisition Cost (CAC) and Lifetime Value (LTV) ratio provide insights into the efficiency of marketing strategies and customer value. Engagement metrics, like Daily Active Users (DAU) or Monthly Active Users (MAU), highlight product stickiness and user adoption. Tracking these metrics allows startups to demonstrate growth potential and operational efficiency to potential accelerators and investors. Equity vs. Non-equity Programs For founders, choosing between equity-based and non-equity accelerators is a crucial decision that impacts the future of your startup. Equity-based programs typically require you to give up a portion of your company's equity in exchange for capital, mentorship, and resources. This can be a good option if you're looking for substantial funding and are willing to share your company's ownership. On the other hand, non-equity accelerators offer support without taking any stake in your company, ideal for those who wish to retain full ownership. However, they might offer less capital. Consider your startup's funding needs, how much control you're willing to share, and the specific benefits each program offers to make an informed decision. Legal and IP Considerations for Startups in Accelerators When joining an accelerator, it's crucial to carefully navigate legal and intellectual property (IP) considerations. Protecting your startup's IP is paramount, as it forms the core of your value proposition. Ensure you understand the terms of the accelerator agreement, especially concerning IP rights and confidentiality. Some accelerators may require disclosure of your IP, so it's essential to have clear agreements in place to protect your interests. Consulting with a legal expert specializing in startup and IP law can provide tailored advice, helping you safeguard your assets while benefiting from the accelerator's resources and network. Engaging in due diligence and obtaining professional legal guidance are key steps in this process. What to Expect from an Accelerator Most programs are highly structured and rigorous, designed to make the most of every minute. A typical day could include a blend of workshops, mentorship sessions, networking events, and ample amounts of time for product development. Accelerators push startups to evolve rapidly, so the schedule can be demanding. Expect long days and tight deadlines, but also a supportive, collaborative environment full of passionate people who share your entrepreneurial spirit. It’s a high-intensity period, but the pace is intentionally set to prepare you for the demanding nature of running a startup. Preparing the Team Preparing your team for an accelerator program is much like gearing up for a marathon. The program’s intensity means your team will need to be mentally prepared and resilient. Transparency is key – ensure your team understands the expectations and commitments of the program. Encourage open communication about concerns and questions. Prioritize team health and well-being to avoid burnout. Foster a culture of agility and quick decision-making, as accelerators move at a fast pace. Regular check-ins and debriefs can help the team navigate the experience collectively, learning and pivoting as needed. Setting realistic and achievable goals before entering an accelerator is crucial. Having clear objectives will help you stay focused amidst the whirlwind of activities and opportunities. Your goals could range from product development milestones, market validation, and customer acquisition targets, to preparing for fundraising. Be ambitious, but also practical – consider your team’s capacity and the program’s duration. Your goals should be specific, measurable, achievable, relevant, and time-bound (SMART). Remember, these goals are not set in stone; they should evolve as you receive new information and feedback during the program. Regularly revisit and revise your goals to ensure they align with your startup’s growth and the invaluable feedback you’ll receive within the accelerator environment. Related resource: Startup Metrics You Need to Monitor Navigating Post-Accelerator Challenges After completing an accelerator program, startups face the challenge of maintaining momentum. To sustain growth, focus on continuous learning and adaptability, leveraging the network and resources acquired during the program. Establish clear, achievable goals for short and long-term growth, and continuously measure performance against these objectives. Engage with the accelerator alumni community for support and potential collaboration opportunities. Prioritize building strong customer relationships and refining your value proposition based on feedback. Lastly, maintain fiscal discipline while seeking further investment opportunities to fuel growth. Resources The most active startup accelerators and where they’re investing Accelerator connect profiles in our Fundraising CRM Seed-DB maintains a global list of accelerators and data on their funded startups. Barclays Eagle Labs: Our passion is innovation and growth so much so, that in 2015 when underused Barclays spaces became available we created Eagle Labs, a network made up of member businesses, partners, investors, corporates, mentors, banking expertise and so much more. Startup Accelerators to Check Out Buildit Accelerator And Program Info Provided by Arta Beitāne, Associate and Accelerator Program Manager About: Buildit is an accelerator that supports hardware and IoT startups in turning an idea into a tangible, market-worthy product. Sweetspot check size: $ 300K Traction metrics requirements: Must have an MVP or working prototype Thesis: At Buildit you don’t just get a product accelerator. You get a partner in development that’s invested in seeing you succeed. Program Specifics: What does the curriculum include? What skills and knowledge areas does the program focus on? “​Curriculum topics: Smart prototyping, design for manufacturing, business modelling and pricing, efficient marketing with 0$ budget, pitch trainings, Fundraising & Legalese, IP protection, Sustainability and ESG reporting since Day 1…The program focuses on setting up the startup so that the team can raise their next investment rounds – clear plans and milestones, team competencies, IP rights, etc.” Mentorship and Network: Who are the mentors and what are their backgrounds? “​Mentors are of various profiles, and the group constantly changes as we are on a constant lookout for fresh perspectives. Mentors usually are or have been founders themselves, some are investors and some are specialists in their own areas (lawyers, engineers, consultants). What networking opportunities exist within the program? What kinds of professionals will they have access to? “​Mentors (a long list of 300 experts, compiled over years) and investors mainly.” Success Stories and Track Record: What notable companies have gone through the program?” “​We’re proud [amongst others] of STRIGA, Naco Technologies, Alternative Plants to name a few.” Post-Program Support: What kind of support (if any) is offered to startups after they complete the program? “​In most cases, we invest in our program graduates. Participants are pre-selected in a way where we see high potential of a Buildit investment case. The network is quite widespread geographically and industry-wise, nevertheless, relatively closely knit, therefore, we see high likelihood in portfolio company founders helping each other + we try to host annual in-person events to facilitate relationship building and rekindling.” Aviatra Accelerators About: Aviatra Accelerators empowers women entrepreneurs to start and grow their businesses faster and with more confidence. Thesis: We offer classes, coaching and community to women entrepreneurs. Our program “Capital-Ready Women” helps women get ready to successfully access capital from lenders and investors. "Our newest program for women entrepreneurs is Capital-Ready Women. It’s designed to help women get ready to successfully access capital from lenders and investors. It begins with our Free Fundability Assessment, available at FreeFundabilityAssessment.com." Union Kitchen About: Union Kitchen is a Food Business Accelerator. We build successful food businesses by bringing together our Accelerator with access to our Kitchen, Distribution, and Stores. Since starting in 2012, we’ve worked with over 650 food businesses, including DC favorites Compass Coffee, Snacklins, Mas Panadas, Caribe and many more! Union Kitchen also launched an investment fund in 2022. Are you ready to build your successful food business? Apply here: https://unionkitchen.com/apply Arkley Brinc VC About: Arkley is an Accelerator VC that focuses on early-stage hardware startups to help them grow from prototype to IPO. Thesis: We are the most individual acceleration program on earth. Representing the bespoke model: We do what’s necessary to make you do what’s impossible. We are working with startups as a team member in order to achieve agreed operational and financial goals by using Arkley’s ecosystem. Accelerator Centre About: Accelerator Centre is a network of facilities dedicated to developing and commercializing technology startups. Thesis: The Accelerator Centre is an award-winning startup accelerator dedicated to building and scaling sustainable, globally competitive companies and giving startups the highest probability of long-term success. Dreamit Ventures About: Dreamit is a venture fund and growth-focused accelerator for Urbantech, Securetech, and Healthtech startups Sweetspot check size: $ 1M Traction metrics requirements: Seek healthtech and securetech companies with early commercial traction and proven product market fit that are focused on scaling. Thesis: Dreamit Ventures is a fund and growth program focused on startups with revenue or pilots that are ready to scale. Capital Innovators About: Capital Innovators provides top-ranked accelerator programs, venture fund management, and corporate innovation. It manages private and corporate venture funds focused on technology, consumer products, and energy innovations. Capital Innovators has helped scale 188 companies and assisted them in raising over $600 MM in follow-on investment and creating over 2,900 jobs. HARDS About: The First Brazilian Software/Hardware Accelerator Thesis: How do we acceerate your startup? It’s easy .. years of experience from our investors, partners, mentors, advisors and managers in hardware and software development, added to the experience of accelerating Darwin Startups! Village Capital About: Our mission is to reinvent the system to back the entrepreneurs of the future. Our vision is a future where business builds equity and long-term prosperity. gener8tor About: gener8tor is a nationally ranked, concierge accelerator that invests in high-growth startups. Sweetspot check size: $ 100K AngelPad About: AngelPad is a seed-stage accelerator program that finds product market fit, defining a target market to get first validation for a company. Sweetspot check size: $ 1M Thesis: Find awesome companies with founders we like to work with and spend three very intense months with them. The Alchemist Accelerator About: The Alchemist Accelerator is a venture-backed initiative focused on accelerating startups whose revenue comes from enterprises. Sweetspot check size: $ 75K Traction metrics requirements: Looking for companies from the idea stage to 15K+ in MRR FounderFuel About: FounderFuel is a mentor-driven venture accelerator that helps new startups make progress on the venture path. Sweetspot check size: $ 120K Thesis: We ignite the global success of companies by developing the leaders behind them. Amplify About: Amplify is a pre-seed fund in Venice, CA dedicated to backing strong teams at the earliest stages and supporting from first check to exit. Thesis: At Amplify, our vision is clear — help passionate technology entrepreneurs grow their startups into strong, scalable & successful companies. Flashpoint About: Flashpoint is an international tech investment manager with approx. $400 million AUM focused on international tech companies originating out of Europe and Israel. Flashpoint manages five venture funds: three VC funds, a Venture Debt Fund, and a Secondary Fund. The firm is headquartered in London and has offices in New York, Tel-Aviv, Budapest, Warsaw, Riga, and Nicosia. Global Insurance Accelerator About: The Global Insurance Accelerator is a mentor-driven business accelerator designed to foster innovation in the insurance industry through startups targeting the global insurance industry. We take in early-stage companies who are building solutions that support the insurance industry. We provide seed funding, networking with our mentors, a desk in our beautiful office in Des Moines, 100-days of on-site support and time on stage at the Global Insurance Symposium with hundreds industry executives in attendance. This is not your typical accelerator. Our investors are insurance carriers, our mentors are primarily insurance executives. Startups participating in our program find product-market fit and do customer discovery faster than they could ever do at any other accelerator. We are a strategic partner. The Deal: Investment with founder-friendly terms: $50k in the form of a post-money SAFE that converts to 5% of the company; no board seat Curated meetings with 75+ insurance-focused mentors in program; dozens more after Final presentations @ Global Insurance Symposium (~600 attendees in 2019) Additional exposure at industry conferences One-bedroom, residential-style suite at the Staybridge Suites, with amenities including daily breakfast, nightly dinner, gym, pool, and laundry (in-person nights / 2-minute walk from GIA) Office space for your entire team Typical accelerator perks (deals on hosting, marketing tools, etc) Stocked fridge at the GIA office Founders need to be in Des Moines during the program, business-related travel is supported Hardware.co About: HARDWARE.co is a global community and accelerator for entrepreneurs, industry professionals and makers dedicated to the creation of innovative hardware products and companies. HARDWARE.co is made out of several interconnected components to serve, maintain, and grow our community. The HARDWARE.co Accelerator, Lab, Meetups, and Online Platform form a multichannel resource to give community members the opportunity to create leading products and companies. We support every stage of hardware development – from ideas, to prototypes, to investments, and beyond. Looking for Investors? Try Visible Today! 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. Related Resource: Accelerator connect profiles in our Fundraising CRM
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7+ VC Firms Funding the Future of Healthcare in 2024
Venture capital (VC) has become an instrumental force in driving innovation and growth across various industries, and healthcare is no exception. Within the article, we’ll cover venture capital within the healthcare sector, its significance, the healthcare investment landscape, the benefits it brings, and the types of healthcare companies that VCs actively invest in. The Role of Venture Capital in Healthcare Venture capital serves as a catalyst for progress in the healthcare industry. By providing funding and expertise to early-stage and high-potential companies, VCs help drive innovation, accelerate research and development, and bridge the gap between groundbreaking ideas and commercial success. With their financial resources and industry knowledge, venture capital firms empower healthcare entrepreneurs to transform their visions into tangible solutions that improve patient care, enhance medical outcomes, and reshape the healthcare landscape. The Healthcare Investment Landscape VC firms are actively seek opportunities in a wide range of healthcare sectors, including biotechnology, medical devices, healthcare IT, and healthcare services. Despite a slight slowdown, venture capital funds managed to raise an impressive amount of nearly $22 billion in 2022, making it the second-largest fundraising year on record. The positive momentum continued into Q1 2023, with the fundraising pace accelerating slightly to $6.8 billion. Notably, early-stage investors showed a preference for seed and Series A investments, indicating their confidence in backing promising startups at the initial stages of their growth journey. As venture capital funds still have a significant amount of capital yet to be deployed in the healthcare sector, it is expected that top companies will continue to attract investor interest. However, this interest is likely to come with investor-driven valuations, as investors seek to balance risk and returns in an increasingly competitive market. The abundance of available capital presents a unique opportunity for healthcare startups to secure the necessary funding to fuel their growth and innovation. Although the overall investment pace experienced a slowdown in Q1, with investors navigating macro uncertainty and market downturns, they remained focused on supporting their promising later-stage portfolio companies. This support was evident through insider extensions and bridge rounds, allowing companies to bridge the funding gap and continue their growth trajectory. Looking ahead to the second half of 2023, there is an expectation of an uptick in larger, outsider-led funding rounds. These rounds may see valuations being adjusted to better reflect market conditions, potentially resulting in down rounds or flat “engineered” rounds that include incentives for new investors. “CVS is betting big on primary care. Here’s a breakdown of its 5 biggest deals of 2023. CVS is aggressively investing in and acquiring digital health companies while competitors retrench. We dig into the pharmacy giant’s recent primary care moves.” Anand Sanwal, founder of CBInsights, Newsletter Benefits of Venture Capital in Healthcare Venture capital firms play a pivotal role in shaping the future of healthcare by providing critical funding, expertise, and strategic guidance. Access to Capital One of the primary advantages of venture capital in healthcare lies in its ability to bridge the funding gap for early-stage companies. Healthcare ventures often require substantial financial resources to advance research, conduct clinical trials, and navigate complex regulatory landscapes. Expertise and Guidance Beyond financial support, VC firms bring a wealth of industry knowledge and experience to the table. Seasoned investors offer strategic guidance, mentorship, and operational expertise to healthcare entrepreneurs. Their deep understanding of the sector helps startups refine their business models, overcome regulatory hurdles, and optimize their commercialization strategies. The invaluable insights and advice provided by venture capitalists significantly enhance the chances of success for healthcare ventures. Validation and Credibility Securing VC funding serves as a powerful validation for healthcare startups. The rigorous due diligence process conducted by venture capitalists not only validates the viability of the company’s products or services but also enhances its credibility in the eyes of other stakeholders. This validation opens doors to additional funding opportunities, attracts potential partners and customers, and positions the company as a trusted player in the industry. The stamp of approval from venture capitalists acts as a strong endorsement, driving confidence in the startup’s vision and mission. Network and Partnerships Venture capital firms possess extensive networks within the healthcare ecosystem, comprising key players such as healthcare providers, pharmaceutical companies, regulatory bodies, and industry experts. By partnering with venture capitalists, startups gain access to these invaluable networks, which can facilitate collaborations, strategic partnerships, and distribution channels. The connections offered by VCs are instrumental in accelerating market adoption, expanding reach, and tapping into new markets. The network effect of venture capital opens up a world of possibilities for healthcare startups to thrive and make a significant impact. Long-Term Support and Sustainability Unlike short-term investors or traditional lenders, venture capital firms typically take a long-term view when investing in healthcare companies. They are committed to supporting startups throughout their growth journey, providing follow-on funding rounds as needed. This long-term support ensures the sustainability and continuity of healthcare ventures, enabling them to focus on innovation, research, and achieving long-term objectives. The stability and backing of venture capitalists give healthcare startups the confidence and resources to navigate challenges and pursue ambitious goals. Types of Healthcare Companies VCs Invest In Venture capital firms invest in a wide array of healthcare companies, each with its unique value proposition and growth potential. These are some of the top healthcare industries that are attracting VC investment along with some other trending industries as well Biotech Companies Biotech companies leverage biological processes and living organisms to develop innovative therapies, diagnostic tools, and research solutions. VCs invest in biotech firms due to the tremendous potential for groundbreaking discoveries, the ability to address unmet medical needs, and the prospects of substantial returns on investment. Subindustries within Biotech include: Gene Editing: Companies developing innovative gene editing technologies like CRISPR-Cas9, enabling precise modification of genetic material for potential therapeutic applications. Immuno-oncology: Companies focusing on immunotherapies that enhance the body’s immune system to target and fight cancer cells, including cellular therapies and immune checkpoint inhibitors. Precision Medicine: Companies that leverage genomic data and advanced analytics to develop personalized medicine approaches, tailoring treatments to individual patients based on their genetic makeup, biomarkers, and other unique characteristics. Check out our investor list article, The Top VCs Investing in BioTech. Medical Device Companies Medical device companies focus on developing advanced medical technologies and devices that enhance patient care, improve treatment outcomes, and streamline healthcare delivery. These companies often require significant financial backing for research, development, clinical trials, and regulatory approvals. VCs invest in medical device companies to support their growth and innovation in this rapidly evolving sector. Subindustries within Medical devices include: Minimally Invasive Surgical Devices: Companies develop innovative medical devices and instruments for minimally invasive surgeries, offering improved patient outcomes, reduced recovery time, and enhanced surgical precision. Digital Health Monitoring Devices: Companies create wearable devices and remote monitoring technologies, enabling continuous tracking of vital signs, remote patient monitoring, and real-time health data analysis. Artificial Intelligence (AI) in Medical Imaging: Companies combining AI and medical imaging to improve diagnostic accuracy, automate image analysis, and assist radiologists in interpreting medical images such as X-rays, MRIs, and CT scans are attracting investment. Healthcare IT Companies Healthcare IT companies play a vital role in transforming the delivery of healthcare by leveraging technology to address industry challenges and improve overall outcomes. They develop innovative solutions that enhance clinical workflows, optimize administrative tasks, ensure data security and privacy, and facilitate seamless interoperability among various healthcare stakeholders. They do this through creating software, systems, and platforms that streamline processes, improve patient care, enhance data management, and enable efficient communication within the healthcare ecosystem. VCs are attracted to companies that bring innovative and disruptive solutions to the industry, leveraging technologies like AI, machine learning, and big data analytics. These solutions have the potential to transform healthcare practices and enhance patient care. Additionally, companies that focus on cost reduction and operational efficiency by automating tasks and streamlining workflows are interesting to VCs. These companies enable healthcare providers to optimize resources, minimize errors, and achieve cost savings. VCs also acknowledge the importance of regulatory compliance and data security in the healthcare sector. Companies specializing in robust cybersecurity measures and privacy protection tools are in high demand. Subindustries within Healthcare IT include: Telehealth Platforms: Companies developing telehealth platforms, telemedicine apps, and remote patient monitoring solutions to support virtual consultations, remote diagnostics, and remote care delivery. Health Data Analytics: Companies specializing in advanced data analytics and artificial intelligence to derive insights from healthcare data are receiving investments, supporting population health management, personalized medicine, and improved clinical decision-making. Cybersecurity and Privacy: Companies focusing on healthcare data security, patient privacy protection, and compliance with regulations such as HIPAA. These companies develop solutions to safeguard electronic health records, secure data sharing, and prevent data breaches. Healthcare Services Companies Healthcare services companies encompass a wide range of organizations dedicated to providing essential healthcare services to individuals and communities. These companies, can include hospitals, clinics, nursing homes, home healthcare providers, and diagnostic services. VCs recognize the increasing demand for healthcare services due to factors such as population aging and rising healthcare needs. Investing in healthcare services companies allows VCs to capitalize on this growing market and generate favorable financial returns. Moreover, VCs seek out healthcare services companies that bring innovation and differentiation to the industry. Companies that introduce novel care delivery models, leverage technology advancements and enhance patient experiences attract VC investments. By investing in such companies, VCs aim to support the transformation of healthcare services delivery and improve patient outcomes. Subindustries within Healthcare services companies include: Digital Health Platforms: Investment is flowing into companies offering comprehensive digital health platforms, integrating electronic health records (EHRs), patient engagement tools, telehealth capabilities, and data analytics to improve care coordination, patient outcomes, and operational efficiency. Home Healthcare Services: Companies providing innovative home healthcare services, including remote monitoring, virtual consultations, and personalized care delivered in the comfort of patients’ homes, are attracting investment. Mental Health Services: Investments are being made in companies focusing on digital mental health solutions, such as online therapy platforms, mental health apps, and virtual support networks, to address the increasing demand for accessible and convenient mental healthcare. 6 Venture Capital Firms Investing in Healthcare Numerous firms are actively investing in healthcare innovation and shaping the future of the industry. Below we’ll explore six notable venture capital firms that have made significant contributions to the healthcare sector. These VCs bring a wealth of experience, expertise, and financial resources to support the growth and success of healthcare startups and companies. Their strategic investments have helped drive advancements in biotechnology, medical devices, healthcare IT, and healthcare services, propelling the industry forward and improving patient care. 1. Felicis Ventures Felicis Ventures is a boutique VC firm that backs iconic companies reinventing existing markets and creating frontier technologies. At Felicis Ventures we back the world’s iconic companies of today and tomorrow. We have a passion for products and out-of-the-box thinking. Company Stage: Seed, Series A, Series B, Growth ​​Location: Menlo Park, California, United States Portfolio Highlights Guild Predibase Operant 2. New Enterprise Associates New Enterprise Associates is a global venture capital firm investing in technology and healthcare. NEA’s proven investment strategy spans all stages of a company’s growth, from seeding innovations in emerging markets to funding early-stage companies in high-growth markets to fueling the growth of market leaders. Any stage of growth is the right stage to partner with NEA. We can add value and offer expert guidance throughout your company’s lifecycle—whether your big idea is at its inception or has already progressed to be a viable reality. Company Stage: Pre-Seed, Seed, Series A, Series B, Series C, Growth Location: Menlo Park, California, United States Portfolio Highlights PixieBrix Regression Games Timescale 3. BoxGroup Investing in dreams at the earliest stage with companies like Plaid, Airtable, Ro, Ramp, and many more. We support companies based on conviction in the team. We believe in “founder market fit” – the concept that certain teams are able to unlock specific markets. This is the first step to get to “product market fit.” Ideas tend not to be equal opportunity which means that it requires the right team to bring a vision to life. Company Stage: Pre-Seed, Seed, Series A ​​Location: New York, United States Portfolio Highlights Plaid Airtable Ramp 4. SV Health Investors SV Health Investors, formerly SV Life Sciences, is a leading healthcare and life sciences venture capital and growth equity firm. Their goal is to transform healthcare – one investment at a time – by supporting the entrepreneurs who create and build breakthrough companies and treatments. In biotechnology, we are venture-focused. In healthcare services and digital health, we seek growth equity opportunities. In medical devices, we pursue a range of opportunities from early stage/venture-focused to early commercialization to growth equity. Company Stage: Pre-Seed, Seed, Series A, Series B, Growth ​​Location: Boston, Massachusetts, United States Portfolio Highlights Therini Bio Nimbus Therapeutics Quell Therapeutics 5. Elevate Capital For some populations, there is a noticeable gap in gaining access to investment capital. These aspiring entrepreneurs are both underserved and overlooked, yet they have the courage and vision it takes to start and scale a business. At Elevate Capital, we believe there is a tremendous opportunity to invest early and offer mentorship to these entrepreneurs. We provide the venture capital and guidance they need to turn their startups into great companies. Elevate Capital is the nation’s first institutional venture capital fund that specifically targets investments in underserved entrepreneurs—such as women and ethnic minorities, or those with limited access regionally to capital and opportunities. We support visionaries with disruptive ideas and products through two specialized investment vehicles. Company Stage: Pre-Seed, Seed, Series A Location: Portland, Oregon, United States Portfolio Highlights TrovaTrip The Bacon HacWare 6. StandUp Ventures StandUp Ventures is a Toronto-based, seed-stage venture capital fund focused on investing in high-growth ventures with at least one female founder in a key leadership role. We believe that women-led companies think outside the box, recruit great talent, and serve bigger markets. We invest in seed-stage, for-profit technology companies with at least one woman in a C-level leadership position within the company and an equitable amount of ownership. We’re dedicated to curious, confident, and fearless entrepreneurs building ground-breaking technology companies. We partner with ambitious founders across Canada to break through from Seed to Series A. Company Stage: Seed ​​Location: Toronto, Canada Portfolio Highlights ODAIA Acerta Analytics TealBook 7. Civilization Ventures Civilization Ventures is a venture capital firm focused on cutting edge innovations in exponential health tech and biology. Company Stage: Seed, Series A, Series B ​​Location: San Francisco, California, United States Portfolio Highlights Foresight Diagnostics Evonetix Infinimmune Partner With VCs Investing In The Future of Healthcare with Visible Venture capital has emerged as a powerful catalyst for progress in the healthcare industry. By bridging the funding gap, providing expertise, and fostering innovation, VCs enable healthcare startups to thrive and create transformative solutions. Funding not only drives financial success but also cultivates a future where patient care is enhanced, medical outcomes are improved, and the boundaries of what is possible in healthcare are continually pushed. Check out Visible’s investor database, Connect, to find VCs investing specifically within the healthcare space. Also here are two more of our list articles, 10+ Founder Friendly Venture Capital Firms Investing in Startups The 12 Best VC Funds You Should Know About Companies should leverage VCs expertise and resources to accelerate their growth, navigate regulatory challenges, and scale their impact. Also, get access to Visible for free for 14 days: https://app.visible.vc/create-account
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