Visible Blog

Venture capital can be a game-changer for startups, offering not just financial backing but a whole ecosystem of support. However, it's not without its trade-offs. This article delves into the multifaceted world of venture capital, from the substantial resources and invaluable networks it brings to the potential for diluted ownership and pressure for rapid growth. Whether you're considering venture capital for your startup or simply curious about its implications, this guide will provide you with a balanced perspective. Advantages of Venture Capital for Startups Venture capital offers a plethora of advantages to startups that go beyond mere financial investment. It's about injecting your business with the resources, knowledge, and networks needed to thrive in competitive markets. Let's explore how venture capital can catalyze your startup's growth and success. Related resource: How to Find Venture Capital to Fund Your Startup: 5 Methods Access to Significant Capital Venture capital provides startups with significant capital that can be pivotal for scaling operations, research and development, and entering new markets. Unlike traditional financing, which may be limited or come with stringent repayment terms, venture capital offers a substantial financial runway, allowing startups to focus on growth without the immediate worry of financial constraints. Expertise and Mentorship Beyond capital, venture capitalists often bring a wealth of expertise and mentorship to the table. They offer strategic guidance, industry insights, and operational advice that can help navigate the complexities of scaling a startup. This mentorship can be invaluable in avoiding common pitfalls and accelerating growth. Networking Opportunities Securing venture capital also opens the door to a vast network of industry contacts, potential partners, and clients. These connections can be instrumental in business development, partnerships, and even future fundraising efforts. The right introductions can significantly accelerate a startup's trajectory. Credibility and Prestige When a VC firm decides to invest, it does so after thorough due diligence, assessing the startup's potential for growth, market opportunity, and the strength of its team. This rigorous evaluation process means that once a startup secures venture capital, it's seen as having passed a critical test of viability and potential. This perception can be incredibly beneficial in several ways: Attracting Further Investment: With the initial VC backing, other investors are more likely to take an interest in the startup. VC funding can serve as a validation of the startup's potential, making it easier to raise additional rounds of funding. The initial VC investment often acts as a catalyst for attracting more capital, as it reduces the perceived risk for subsequent investors. Talent Acquisition: Top-tier talent looks for opportunities that offer both growth potential and stability. VC funding enhances a startup's appeal to such individuals by providing evidence of both. The funding signifies that the startup has enough resources to scale and supports its long-term vision, making it a more attractive place for ambitious professionals looking to make their mark. Market Positioning: A startup with venture capital backing can also command more attention in its market. Customers, suppliers, and partners often view VC-funded startups as more credible and stable, making them more likely to do business with them. This enhanced credibility can be crucial for startups looking to establish themselves in competitive markets. Brand Visibility: VC firms often have extensive networks and platforms for promoting their investments. When a startup secures VC funding, it can benefit from this exposure, increasing its visibility in the industry and among potential customers. No Repayment Requirement One of the most significant advantages of VC funding over traditional loans is the absence of a repayment obligation if the startup fails. The advantage of not having to repay the investment if the startup fails frees entrepreneurs from the weight of debt, allowing them to focus fully on their vision and growth. This model not only facilitates innovation and risk-taking but also builds a partnership framework between investors and founders, where both parties are equally invested in the success of the venture. This risk-sharing model has several advantages for startups: Encourages Risk-taking: Knowing that failure will not result in crippling debt allows entrepreneurs to pursue innovative, high-risk ideas that could lead to significant market disruptions. Focus on Growth: Without the burden of debt repayment, startups can channel their resources into growth and development rather than diverting funds to service debt. Attracts Talent: The potential for significant returns without the personal financial risk associated with debt can make startups more attractive to top talent. Investor Support: Since VCs have a vested interest in the startup's success, they are more likely to provide support, advice, and connections to help the business grow. No Debt or Interest In traditional financing models, such as bank loans or debt financing, the borrower is required to repay the principal amount along with interest, regardless of the business's success. This obligation can place a considerable strain on a startup's cash flow, especially in its early stages when revenues may be unpredictable or non-existent. Moreover, in the event of business failure, entrepreneurs may still be liable for the outstanding debt, which can lead to personal financial ruin in the case of personally guaranteed loans. Venture capital, on the other hand, is invested in exchange for equity in the startup. VCs are well aware of the high risk associated with these investments, including the possibility that the startup may fail. Their return is contingent upon the success of the business, typically realized through an exit event such as an initial public offering (IPO) or acquisition. If the startup fails, the venture capital invested does not need to be repaid. This setup aligns the interests of the investors with those of the founders, as both parties succeed or fail together. Related resource: Pros and Cons of Crowdfunding for Your Startup Scalability Venture capital is a critical accelerator for startups aiming to make a market impact, providing not just funds but a springboard for rapid growth and scalability. This financial backing enables startups to swiftly penetrate and expand in markets, pushing innovation and product development at an accelerated pace. It facilitates the hiring of top talent essential for scaling operations and executing ambitious growth strategies. Furthermore, venture capital empowers startups to engage in strategic partnerships and acquisitions, enhancing their market reach and product offerings. It supports substantial investments in marketing and brand building, crucial for establishing market presence and driving customer acquisition. Additionally, venture capital aids in geographic expansion, opening doors to new markets and global opportunities. Disadvantages of Venture Capital While venture capital can be a powerful tool for startups, it's not without its disadvantages. The pursuit of venture funding comes with considerations that can affect your startup's trajectory and founding principles. Let's examine the potential downsides to be mindful of. Dilution of Ownership Accepting venture capital typically involves exchanging equity in the startup for financial investment, leading to a dilution of the founders' ownership stake. This means that founders own a smaller percentage of their company after the investment than they did before. While this influx of capital is crucial for growth, it also results in founders sharing control and potential future profits with the venture capitalists. This trade-off is an essential consideration for startups, as it impacts the founders' influence over company decisions and their share of the financial rewards in the event of the company's success. Less Control Venture capital investors frequently seek a say in business decisions as a condition of their investment, potentially leading to diminished control for the original owners. This involvement can range from strategic direction to operational changes, reflecting the investors' stake in the startup's success. While their expertise can be beneficial, it may also result in founders having to compromise on their vision or make decisions aligned with the investors' goals, rather than their own. This dynamic underscores a critical trade-off in venture funding: accessing significant capital and expertise at the cost of sharing decision-making power. Pressure for High Growth VC funding often comes with the expectation of rapid, substantial returns, placing intense pressure on startups to grow quickly. This urgency for growth can sometimes push startups towards aggressive expansion strategies that may not align with sustainable or prudent business practices. The drive for quick scalability and market dominance can lead to short-term decisions that prioritize speed over stability, such as overextending financial resources, neglecting quality control, or unsustainable customer acquisition practices. While rapid growth can propel a startup to success, this pressure can also risk its long-term viability and ethical standing, challenging founders to balance investor expectations with sustainable development. Length and Complex Process Securing venture capital is a time-consuming and complex process, marked by an extensive due diligence phase that demands significant attention and resources from startup founders. The journey to obtain venture funding involves multiple steps, including preparing detailed business plans, financial projections, and engaging in negotiations with potential investors. Venture capitalists conduct thorough due diligence to assess the viability, market potential, and team capability of the startup. This scrutiny can include deep dives into the startup's financials, business model, competitive landscape, legal compliance, and more. The process ensures that investors are making informed decisions but also requires startups to be transparent and well-prepared. This exhaustive vetting process, while necessary for securing investment, can divert founders' focus from day-to-day operations and delay immediate business development efforts. The complexity and length of securing venture capital not only test a startup's readiness and resilience but also its capacity to balance long-term fundraising goals with short-term business needs. Focus on Exit Strategy Venture capitalists typically enter investments with a clear exit strategy in mind, aiming for a significant return on their investment through a sale, merger, or public offering of the startup. This focus on exit events is fundamental to the venture capital model, as it dictates the timeline and manner in which investors expect to realize their profits. However, these exit strategies may not always align with the long-term vision of the startup founders. Founders often embark on their entrepreneurial journey with a passion for their product or service and a vision for long-term growth and industry impact. In contrast, venture capitalists' emphasis on an exit within a certain timeframe can pressure startups towards rapid scaling and market positioning that prioritizes short-term valuation increases over sustainable growth and development. This misalignment can lead to strategic conflicts, where founders are pushed to make decisions that optimize for an exit event rather than the long-term health and vision of the company. Navigating these differing objectives requires careful negotiation and alignment of interests between founders and their venture capital partners to ensure that the company can achieve both its immediate goals and long-term ambitions. Alternatives to VC Funding For startups wary of the potential downsides of venture capital, there are several alternative funding options available. These alternatives can offer different advantages, from less dilution of ownership to more aligned growth strategies. Let's explore a few of these options. Related resource: Types of Venture Capital Funds: Understanding VC Stages, Financing Methods, Risks, and More Angel Investments Angel investments represent a vital source of capital for startups, typically coming from affluent individuals who provide funding in the early stages of a company's growth. Unlike venture capitalists, who usually invest through funds with money pooled from various sources, angel investors use their own wealth to support startups they believe in. These investors often offer capital in exchange for equity in the company, acquiring a stake in the startup's future success, or sometimes through convertible debt, which can later be converted into equity. Angel investors not only provide financial backing but can also bring valuable expertise, industry connections, and mentorship to the startup. Their investment can be crucial during the initial phases when the startup may not yet qualify for venture capital or bank loans due to the high risk associated with early-stage ventures. By opting for angel investment, founders can secure the necessary funds to kickstart their operations, refine their product, or expand their market reach, all while potentially gaining a supportive advisor in their angel investor. This form of investment offers a blend of financial support and personal engagement, making it an attractive option for startups seeking both capital and guidance. Revenue-based Financing Revenue-based financing is a funding model where investors provide capital to startups in exchange for a percentage of the company's future revenues until a predetermined amount is repaid. This form of financing offers a flexible repayment schedule that directly correlates with the business's performance, making it distinct from traditional equity or debt financing. In this model, repayments increase when revenue is high and decrease during slower business periods. This flexibility is particularly advantageous for startups with fluctuating revenue patterns, as it aligns repayment obligations with their financial capacity. Unlike equity financing, revenue-based financing does not require founders to give up ownership stakes, nor does it impose fixed repayment terms like traditional loans. Instead, the total repayment amount is usually a multiple of the invested capital, agreed upon at the outset. Revenue-based financing is attractive for businesses that generate consistent revenues but may not yet be profitable or for those looking to avoid dilution of ownership. It allows startups to access the capital they need for growth, such as expanding operations, entering new markets, or increasing marketing efforts, without the pressures of equity dilution or rigid debt schedules. This model promotes a partnership approach, with investors directly vested in the company's revenue growth and success. SBA Loans Small Business Administration (SBA) loans are a government-backed financing option designed to support the growth and sustainability of small businesses. These loans are facilitated by the SBA, a U.S. government agency, in partnership with banks and lending institutions. The SBA guarantees a portion of the loan, significantly reducing the risk to lenders and enabling more favorable terms and lower interest rates for borrowers compared to traditional bank loans. SBA loans are known for their relatively lower interest rates and longer repayment terms, making them an attractive option for startups and small businesses seeking funding without the burdensome costs associated with conventional loans. The variety of SBA loan programs caters to different business needs, from purchasing equipment and real estate to providing working capital and funding for expansion projects. One of the key benefits of SBA loans is their accessibility to businesses that might not qualify for standard bank loans due to requirements for higher credit scores or collateral. The SBA's backing means that businesses with solid plans and potential for success have a greater chance of obtaining the financing they need, even if they're in the early stages of growth or lack extensive credit history. However, the process of applying for an SBA loan can be more complex and time-consuming than other financing options, requiring detailed business plans, financial statements, and projections. Despite these challenges, the favorable terms, lower interest rates, and government support make SBA loans a compelling choice for small businesses and startups looking for a stable and affordable source of funding. Connect With the Right Investors for Your Startup With Visible Venture capital offers startups a blend of significant capital, expertise, and networking opportunities, propelling rapid growth and market impact. However, it also brings challenges such as diluted ownership and intense pressure for quick returns. Alternatives like angel investments, revenue-based financing, and SBA loans present different benefits and trade-offs, catering to various startup needs. For founders navigating these options, Visible provides a comprehensive platform to find and connect with the right investors, track a fundraise, share a pitch deck, and manage stakeholder communications effectively. Give Visible a free try for 14 days here. Related resource: A Guide to How Venture Capital Works for Startups and New Investors

Fundraising is difficult. Building a process and system to attract and close investors can help move a fundraise along. At Visible, we often compare a venture fundraise process to a traditional B2B sales and marketing funnel. At the top of a fundraising funnel, you need to find the right investors for your business. Like identifying a qualified lead for sales and marketing, you need to define the investor that is a fit for your business. In the middle of the fundraising funnel, you need to nurture potential investors with meetings, emails, pitch decks, and more. At the bottom of the fundraising funnel, you are ideally closing new investors and delighting them with regular communication. Related Resource: A Quick Overview on VC Fund Structure In order to help you find the best investors for the top of your fundraising funnel, we created an investor database, Visible Connect. If you’re a founder located in Japan, check out our list of investors using Connect below: 1. Genesia Ventures As put by the team at Genesia Ventures, “It would be no exaggeration to say that the world has entered a new era through digital technologies, and startups have played and are still playing pivotal roles in this game-changing transformation. The large industries and social infrastructure that have thus far led the world are on the brink of new development through the disruptive potential of the digital sphere. Simultaneously, developed regions are establishing new industries through a digital infrastructure that is not dependent on traditional modalities or assets. Through seed and early-stage investment in startups, we believe we can help achieve a thriving society heralded by digital technology, and we are committed to supporting these startups and accelerating their growth, ushering in a world in which everyone can create wealth and has equal opportunities.” Learn more about Genesia Ventures by checking out their Visible Connect profile → Location Genesia Ventures has offices in Japan, Indonesia, and Vietnam. They invest in companies across Southeast Asia and Japan. Portfolio Highlights Some of Genesia Ventures’ most popular investments include: Nudge Activaid Airboxr Investment Focus Genesia is focused on seed-stage and early-stage investments. Related Resource: The Understandable Guide to Startup Funding Stages 2. Global Brain As put by their team, “Global Brain’s mission is to “bring unimaginable innovation into society through business creation.” Our surrounding environment is significantly changing due to global risks including extremely intense global competition, pandemics, and global warming. We believe that in such a time of uncertainty lies the greatest opportunity. The power of startups is vital to overcome unprecedented situations. The global economy is now largely led by many companies created right after the financial crisis.” Learn more about Global Brain by checking out their Visible Connect profile → Location Global Brain has an office in Tokyo and 9 other office locations across the globe. Portfolio Highlights Some of Global Brain’s most popular investments include: Base Food August Fluently Investment Focus Global Brain invests in companies across all stages and all industries. 3. Monozukuri Ventures As put by their team, “Monozukuri Ventures is a venture capital firm based in Japan and North America specializing in hard tech. In addition to the investment, we have a dedicated team to support hardware prototyping, mass production, and business development. We aim to create a world where entrepreneurs and startups can quickly produce and sell high-quality products, even in small quantities. Our mission is to help the world’s entrepreneurs rapidly deliver high-quality products to the market, regardless of production volume. As a global ecosystem contributor, we provide founders with essential resources such as investment, mentorship, prototyping know-how, manufacturing expertise and community support.” Learn more about Monozukuri Ventures by checking out their Visible Connect profile → Location Monozukuri Ventures has offices in Japan and North America and invests in companies in Japan and the US. Portfolio Highlights Some of Monozukuri Ventures’ most popular investments include: Mira Sembient HiberSense Investment Focus Monozukuri Ventures invests across all stages and primarily funds companies building hard tech. 4. D4V (Design for Ventures) As put by the team at D4V, “We help startups deliver not only financial returns but also positive impact on the world. Our work aims to support and strengthen the culture of entrepreneurship in Japan and beyond, accelerating the growth of a more entrepreneurial economy.” Learn more about Design For Ventures by checking out their Visible Connect profile → Location D4V is located in Tokyo and primarily invests in entrepreneurs and companies located in Japan. Portfolio Highlights Some of D4Vs most popular investments include: Cinnamon AI HOMMA Nudge Investment Focus D4V is focused on early-stage investments. Some of the markets and verticals that they are focused on include: Digital Disruption and Industry Transformation New Lifestyles and Cultures Financial Tools and Wellbeing Lifelong Learning and Empowerment Personal and Public Health 5. Benhamou Global Ventures As put by their team, “BGV is an early-stage venture capital firm focused on global Enterprise 4.0 technology innovation. The partners at BGV drove successive waves of enterprise technology disruption in Silicon Valley and have years of company-building experience. Founded by Eric Benhamou, former chairman and CEO of 3Com, Palm and co-founder of Bridge Communications, BGV is comprised of global operating executives and investors, and is often the first and most active institutional investor in its portfolio companies.” Learn more about BGV by checking out their Visible Connect profile → Location BGV has offices across the globe and invests in companies across the globe. BGV has an office in Kyoto. Portfolio Highlights Some of BGV’s most popular investments include: Kardinal Everest Labs Anch.ai Investment Focus BGV is focused on early-stage investments and specializes in “Enterprise 4.0 companies.” As put by their team, “Enterprise 4.0 refers to a new wave of B2B startups that combine artificial intelligence, intelligent automation and proprietary access to data to deliver actionable insights for enterprise businesses. These disruptive startups provide full stack solutions in the form of hyper-niche vertical solutions, programmable cloud infrastructure or cloud-native security innovations to generate immediate business value and significant ROI improvements for their customers.” Related Resource: How AI Can Support Startups & Investors + VCs Investing in AI 6. Sozo Ventures As put by their team, “Sozo Ventures was formed in 2012 to invest in and support technology-enabled ventures with their global expansion. We invest in category leaders transforming global industries with advanced data technologies, ecommerce, enterprise cloud, fintech, IoT and healthcare IT, and other advanced solutions. We are structured to connect the most ambitious entrepreneurial teams with the world’s most advanced and respected customers and distributors. We are at our best when we can share our expertise well before expansion strategies are set.” Learn more about Sozo Ventures by checking out their Visible Connect profile → Location Sozo Ventures has office locations in Tokyo and Redwood City, CA. Sozo invests in companies across the globe. Portfolio Highlights Some of Sozo’s most popular investments include: Zoom Twitter Coinbase Investment Focus As put by the team at Sozo, “We look for companies that are at the ‘Readiness’ Stage – a term coined internally that details companies that have a strong management team and culture, stable long-term investors, credible and recognizable customers and traction, and appropriate organizational structures for target international customers. Readiness is achieved by different businesses at different stages – and Sozo is set up to be a long-term flexible supporter of companies that we partner.” 7. Beenext As put by the team at Beenext, “We don’t just invest in startups, we get ‘invested in them. BEENEXT is a partnership of the founders, by the founders, and for the founders. When a founder partners with us, it partners with the entire BEENEXT community. We provide an opportunity for co-creation, inclusive growth, knowledge-exchange, mentorship and capital support.” Learn more about Beenext by checking out their Visible Connect profile → Location Beenext has an office in Singapore but invests in companies in Japan, Southeast Asia, India, and the US. Portfolio Highlights Some of Beenext’s most popular investments include: AngelList SixSense Wellthy Investment Focus Beenext invests in companies across the globe and across many sectors and industries. 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. Related Resource: Private Equity vs Venture Capital: Critical Differences

Collecting updates from portfolio companies on a regular basis is an important part of running smooth operations at a VC firm. Well-organized, accurate, up-to-date portfolio data helps investors provide better support, make data-informed investment decisions, and share more engaging insights with LPs. However, collecting data from portfolio companies can also be a time-consuming and frustrating process if you’re not implementing best practices. On Thursday, March 28th, Visible hosted a product webinar covering tips for streamlining the portfolio data collection process for VCs. This webinar recording is not made publicly available. Reach out to our team to learn more about Visible. Webinar Poll Results Here are the results from the poll conducted during the webinar. The top three reasons VCs collect data from companies are: Understand company performance in general Send updates to current LPs Provide better support to portfolio companies Topics Discussed Why VCs collect data from portfolio companies (poll) Top 5 most common metrics to track Founder-friendly data collection What other investors are doing How to set your firm up for data collection success Advice from Visible customers Demo of recent product updates Time for questions This webinar recording is not publicly available. Reach out to our team to learn more about VC portfolio data collection best practices. Related Resources Portfolio Data Collection Tips for VCs The Best Practices for VC Portfolio Data Collection Streamlining Portfolio Data Collection and Analysis Across the VC Firm

Venture Capital funds dedicate a lot of time and resources to optimizing their pipeline processes. However, not all VCs apply the same level of intention and effort to their post-investment processes. This is why portfolio support is not only considered an important differentiator for funds but also a critical part of the success of the fund and its portfolio companies. Value-add portfolio support can help with everything from attracting better deal flow (don’t forget founders talk to each other!), improving brand recognition, raising capital from LPs, and most importantly, helping companies succeed. What is Portfolio Support? Portfolio support is a post-investment process that is intended to help portfolio companies perform, grow, and overcome potential hurdles. This typically includes some combination of the following: New company onboardings Hiring and recruiting Marketing and promotional support Future fundraising support Events Why is Portfolio Support Important? In the early days of venture, capital alone was enough to be a differentiator. As the venture capital market has evolved so have the expectations for VC funds. Formalized post-investment support for portfolio companies has become a differentiator for VC firms — it helps with brand recognition, portfolio company performance, and ultimately improves a firm's odds of increasing returns and raising a future fund. Who Owns Portfolio Support? Portfolio company support is typically owned by the person running a firm's platform. For larger funds, this might be a dedicated person or team (e.g. Head of Platform, Platform Manager, etc.). At a smaller fund, this likely falls on the shoulders of a partner. Related resource: VC Fund Performance Metrics 101 How Do Portfolio Companies Request Support? In Visible’s survey taken by VC Portfolio Operators, respondents shared that they are made aware of support needs from companies in a variety of different ways. The most common is directly from companies (44%) but also from investment team members (29%) and in third place, from Investor Updates from companies. From this data, it’s clear portfolio support requests are being shared in myriad ways with different team members at a fund. This highlights the importance of having open and transparent communication across your fund team so that portfolio support requests can be triaged quickly and by the right person. Getting Started With Portfolio Support Best Practices This guide is created for VC investors and operators who want to level up their portfolio support. The content of this guide is derived from Visible’s 2022 Portfolio Support Survey, Visible’s July 2022 Webinar on Building Scalable Portfolio Support, and the industry experience Visible has gained through supporting hundreds of investors around the world to improve their portfolio monitoring and management processes. Contents of the Guide: What is Post-Investment Support Who Owns Post-Investment Support How to Best Scale Your Post Investment Support Most Common Portfolio Support Requests + Resources Advice for First-Time Platform Managers Ready to take your support to the next level? Learn how Visible can help you with your portfolio management and reporting here.

Raising capital as a startup founder is difficult. On top of building a product, hiring a team, and scaling revenue, founders need to make sure that their business is funded for success. If you are a founder starting to raise your seed round, check out our guide below: What is Seed Funding? Seed funding is capital that a company raises in its earliest stages — typically the earliest form of outside capital. Seed funding is integral to getting ideas off the ground and giving a potential company and idea life. After a seed round, startups go on to raise future rounds of capital — e.g. Series A, Series B, Series C, etc. You can learn more about seed fundraising and future rounds in our post, The Ultimate Guide to Startup Funding Stages. What is the Purpose of Seed Funding? The purpose of seed funding is simple. It is intended to give a founding team enough capital to pursue a certain idea or market to prove if the concept works. Different investors may have different requirements for a seed-stage company but generally, they are pursuing “product-market fit.” As Marc Andreessen, Founder of Andreessen Horowitz, defines it, “Product/market fit means being in a good market with a product that can satisfy that market.” Seed size rounds are exploding in size and the purpose may be vary quite a bit from company to company and investor to investor. When is it the Right Time to Raise Seed Funding? The timing to raise seed funding for a startup can be tricky. First and foremost you should approach seed investors when you believe you have a strong enough product, market, or team (or combination of those) to build a company that deserves to be venture-backed. This means that you can scale and grow to the valuations where an investor can generate a solid return on your company. As the team at Y Combinator writes, “Founders should raise money when they have figured out what the market opportunity is and who the customer is, and when they have delivered a product that matches their needs and is being adopted at an interestingly rapid rate. How rapid is interesting? This depends, but a rate of 10% per week for several weeks is impressive. And to raise money founders need to impress. For founders who can convince investors without these things, congratulations. For everyone else, work on your product and talk to your users.” If you believe that your business has what it takes to generate massive returns for an investor, it is likely time to start your fundraising process. Related Resource: What is Pre-Revenue Funding? How to Raise Seed Funding for Startups The key to successfully raising a seed round is to have a system and process in place to raise capital. Just as you have a systematic approach to your sales and marketing funnel the same should be done for your fundraising efforts. Regarding fundraising, we like to think of it as similar to a traditional sales and marketing funnel for a B2B enterprise business. In its simplest form, a traditional sales & marketing process can be broken into 3 steps: Attracting and adding qualified leads to your top of the funnel on a regular basis. Nurturing and moving the leads from through the funnel with the goal of closing them as a customer. (aka get them into a buying process) Serving customers and creating a great experience until they become evangelists or promoters. You can convert those same ideas into a “Fundraising Funnel” that looks something like this: Filling the top of your funnel with qualified potential investors. These investors generally come from cold outreach, warm introductions, or inbound interest. You want to make sure these fit your “ideal investor persona” — right sector, stage, geography, check size, etc. Nurturing and moving investors through your funnel. While you may not be actively trying to close new investors and add capital you should constantly be working the top of your funnel. Staying fresh on the mind of potential investors 365 days a year using traditional marketing tactics will pay dividends when it’s time to pull the string on a new round of capital. Pro tip: send them a lite version of your quarterly investor update. Building relationships and communicating with your current investors. Customer success is key to maintaining a strong relationship with customers once they reach the bottom of the funnel. The same can be said for your investor funnel. As a founder, one of the first places to look for capital is current investors. One of the first places a new investor will look to for guidance will also be your current investors. At the end of the day your current investors should be the ultimate evangelist for your business. Related Resource: Startup Mentoring: The Benefits of a Mentor and How to Find One Just like a standard B2B sales process, you need to have “leads” (read: investors) coming to the top of your funnel so you can move them through the funnel to ultimately close them (read: close your round). To get started, you need to understand who the right investor is for your business and how you fit into their greater vision and can be of benefit to them (more on this below). We sat down with Jonathan Gandolf, CEO of The Juice, to uncover his learnings and thoughts from his seed raise. Give episode 1 a listen below: How Much Seed Funding Should You Raise? The average round of seed funding has gradually grown since 2014. However, the last few years have been a turbulent time in the venture world, and have seen the average seed round size level out since 2021. Deciding how much seed funding you should raise is entirely up to you, the founder. As a general rule of thumb, you should raise enough to reach profitability or to the point where you can easily reach your next “funding milestone.” This can be a revenue number, user benchmark, etc. but generally speaking, should be within 12-18 months. To model this you need to have a thorough understanding of how your business functions and what it will take to get to the next milestone. Understand how much it cost to acquire a new customer, retain a customer, how much an engineer costs, salesperson, etc. To help, you can check out our popular financial modeling tools here. Related Reading: Building A Startup Financial Model That Works Types of Seed Funding for Startups There are a few types of seed funding. For the sake of this post we will mostly talk about raising venture capital but to cover off on a few other options: Friends & Family One of the most common sources of seed funding comes from friends and families. This often follows a similar approach to the funnel discussed above but likely less intensive as you, the founder, likely have an existing relationship with this group. Keep in mind that you are investing their capital in a highly risky asset class and they need to be made aware of this situation. Crowdfunding Another form of “seed funding” that is becoming more popular is crowd funding. Sites like Republic and StartEngine allow startups to raise equity rounds from individuals so check sizes can be as little as $100. Non-Traditional Firms More firms are coming out with new financial instruments to offer as an alternative to venture capital. Earnest Capital is one of our favorites. Earnest Capital provides early-stage funding, resources and a network of experienced advisors to founders building sustainable profitable businesses. Earnest Capital uses their own financing instrument called a Shared Earnings Agreement (SEAL). Check out other non-traditional investment funds here. Related Resource: Advisory Shares Explained: Empowering Entrepreneurs and Investors Incubators As put by the team at TopMBA, “A startup incubator is a collaborative program designed to help new startups succeed. Incubators help entrepreneurs solve some of the problems commonly associated with running a startup by providing workspace, seed funding, mentoring, and training. The sole purpose of a startup incubator is to help entrepreneurs grow their business.” Incubators are hit or miss if they come with capital. Some will include a small injection of capital while others are solely resources to help founders get their business off the ground. Check out our list of incubators and startup studios here. Related resource: 10 Top Incubators for Startups in 2024 Accelerators As put by the team at Silicon Valley Bank, “Private startup accelerators do provide funding and the money helps cover early-stage business expenses, as well as travel and living expenses for the three-month residency at the in-person startup accelerators. However, the funds and guidance come at a price. Just like any other equity funding, signing an accelerator agreement typically means giving up a slice of your company. Startup accelerators generally take between 5% and 10% of your equity in exchange for training and a relatively small amount of funding.” Check out our list of active accelerators here. Angel Investors Angel investors are a great starting point for any founder. Similar to friends and family investors, an angel investor is an individual that is looking to diversify their investment portfolio and back intriguing startups. However, angel investors tend to be more seasoned professionals and generally have an understanding of the risks of investing in a startup. Related Resource: How to Effectively Find + Secure Angel Investors for Your Startup Corporate Seed Funding A newer form of seed funding is corporate venture arms and funds. As large corporations continue to seek innovation and new revenue streams, the development of corporate venture funds have become popular. Corporations generally partner with a proven VC (or launch a fund internally) and deploy capital across seed-stage companies that fit into the company's thesis or growth plans. How Long Does it Take to Raise Seed Capital Raising seed capital for a startup can be a burdensome process for founders. Brett Brohl of Bread & Butter Ventures, suggests five months to raise capital. It can be broken down into the following rules (which Brett calls the 1-3-1): One Month — Building investor lists and getting documents ready Three Months — Actively pitching and taking meetings with potential investors One Month — Closing investors and going through due diligence Brett's 1-3-1 rule is a great starting point. Other peers and investors will suggest a similar timeline — we typically see founders raise seed capital anywhere between three and nine months. Financing Options for Seed Rounds The different finance instruments and options available to founders raising a seed round can feel intimidating. There are countless options and different legal meanings that make things complicated. Seed round financing options can be broken into two buckets — convertible debt or SAFEs and equity. Convertible Debt & SAFEs Convertible debt and SAFEs have become the norm in the venture world over the last decade. YC popularizes SAFEs and has made templates available for startups across the globe. You can learn more about SAFEs in our post, "The Startup's Handbook to SAFE: Simplifying Future Equity Agreements." Equity Pure equity financing has become less common in the venture world since the emergence of SAFEs. Equity financing means setting a valuation and stock prices and selling new shares to investors. As always, we recommend consulting with a lawyer when determining the financing options that are best for your business. Related resource: Navigating Pro Rata Rights: Essential Insights for Startup Entrepreneurs How to Build Your Seed Round Pitch Deck Fundraising is very much a process. Along the way, there are tools and resources that founders can leverage to better tell their story. One of those tools is the pitch deck. Pitch decks are a powerful tool that can help you tell that story. Different investors will have different opinions about pitch decks. Some investors might want to receive them before a meeting, some might only want them sent via PDF or link, and some investors might not care if you have a pitch deck at all. A pitch deck is about the content that you are sharing. However, there is a fine line between beauty and functionality when building your seed stage pitch deck. Investors will likely have feedback that will require changes but you do want to display it in a meaningful way. To learn more about crafting the perfect pitch deck for your seed round check out our post, Our Favorite Seed Round Pitch Deck Template (and Why It Works). The 5 Most Important Elements of a Successful Pitch Deck There is no prescriptive pitch deck template that will work for every startup, but there are a few things investors generally want to and expect to see in a pitch deck: Concise & Compelling — you want your pitch deck to give investors the information they need in a concise and straightforward way. This includes your problem and solution. Related: How to Write a Problem Statement [Startup Edition] The Market — investors want to understand the market you are operating in and why you have an opportunity to seize a large percentage of the market and become a large company. Related: How to Model Total Addressable Market (Template Included) Acquisition Model — going hand-in-hand with the market is your acquisition model. You want to demonstrate to investors that you have a clear and scalable way to attract new customers. Related: Pitch Deck 101: The Go-to-Market and Customer Acquisition Slide Financials — Some investors will want to see financial projections and others might not care at the seed stage because they are typically wrong. So why include them? Investors want to see how you think about your future and are thinking through metrics and models correctly. Related: Building A Startup Financial Model That Works Traction — While it might be limited at the seed stage, investors want to see what you’ve done to date. What product have you built, customers, attracted, and more. Use Visible to share your pitch deck. Once you’ve built out your target list of investors, you can start sharing your pitch deck with them directly from Visible. You can customize your sharing settings (like email-gated, password-gated, etc.) and even add your domain. Give it a try here. How to Choose Investors for Seed Funding Once you have defined what your ideal investor looks like it is time to start researching, finding, and contacting them. To find the right investors we suggest browsing different databases and networks to find your perfect fit. You may already have investors in mind or have networked with investors in the past — awesome start! If you want to continue to find investors, Visible Connect is our free database built by founders, for founders. Visible Connect allows founders to find active investors using the fields we have found most valuable (like check size, geography, traction metrics, etc.). As you begin to browse and find investors for your startup, we suggest keeping tabs on them. You most likely have an involved CRM or process to keep tabs on your current and potential customers. Should the same be true for your investors? This can be in the Visible Fundraising CRM (you can add investors directly from Connect into the CRM) or a simple Google Sheet. No matter what you decide, make sure you have a system in place to track and monitor conversations to make your life easier moving forward. Related Reading: How To Find Private Investors For Startups Building Your Investor List As you start to build your list of potential investors — we suggest breaking it down into 3 “tiers” — Tier 1, Tier 2, and Tier 3. Tier 1 are the firms you believe to be most qualified, followed by tier 2 and 3. We highly encourage taking on these investors in “sets.” This means grouping investors in sets of ~5 (suggest trying to keep sets to 5 investors or less) so you have the opportunity to better evaluate and tailor your pitch as you move through your sets. As a rule of thumb, you’ll want to make sure you mix in Tier 1, 2, and 3 investors in each “set.” For example, if you pitch all of the Tier 1 investors in the first set, you’ll potentially miss an opportunity to tailor your pitch and only be left with less qualified (Tier 2 and 3) investors. Related Reading: What is an Incubator? What is the Difference Between Seed vs. Series A Funding? Series A funding is the next jump in a company’s funding lifecycle. In a seed round is the first capital into a business, a “Series A” is generally the next round of capital. As we defined in our Startup Funding Stages post, Series A funding is: “When a company is first founded, stock options are generally sold to the company’s founders, those close to them, and angel investors. After this, a preferred stock can be sold to investors in the form of a Series A. Series A allows investors to get in early with a business that they truly believe in. It’s a mutually beneficial relationship for both the company and the future stock holders.” When a company reaches their “Series A” they likely have product-market fit and are ready to scale their business to a $1M or more in revenue. At Series A you likely have solid revenue in place and a scaleable plan to bring on more customer sand revenue whereas at the seed round you may have little to no revenue. A seed round is used to demonstrate your product, service, or team can seize a market. A series A round is used to scale the product, service, or team to attack and scale in your market (or a new market). Additional Seed Funding Resources There are hundreds of resources out there to help you raise your seed round. At the end of the day the more entrepreneurs that raise capital the better the startup ecosystem does as a whole. At Visible, we do our best to curate and write the best resources to improve a founders chances of success. Here are a few of our favorite resources to help founders improve their odds of raising venture capital: Everything a Startup Founder NEEDS to Know about Pro Rata Rights Check out our guide and tips for handling pro rata rights during an early stage fundraise and negotiation. Our Favorite Seed Round Pitch Deck Template (and Why It Works) In our guide, we share a step-by-step guide to help build your seed round pitch deck. Plus, we offer a direct download to the template so you can get started immediately. Our Startup Funding Stages Guide Our in-depth guide covering all things related to the startup funding lifecycle. Understand what it takes to go from seed stage funding to Series A and later. Building A Startup Financial Model That Works Templates and resources to help you build your first financial model for your startup. In order to improve your odds of raising capital you need to understand the ins and outs of your business. Our Guide to Sending Your First Investor Update Tips and best practices for using investor updates to leverage your current and potential investors to help with fundraising, hiring, and strategic decision-making. Visible Connect: Our Investor Database Browse our investor database that is hand curated by the team at Visible. We include the fields and filters we find most important when searching for new investors. Visible Lite: Pre-Traction Template This template is intended for companies that are pre-traction/revenue. Even if it is simple, sending Updates from day 1 is a great way to stay top of your investors mind’s moving forward. We hope this guide is helpful to you as you kick off your seed round. To get your fundraise started check out Visible Connect, our investor database. Automatically add your investors into a pipeline to manage conversation and engagements so you can focus on building your business. Related resource: Top Creator Economy Startups and the VCs That Fund Them Kick Off Your Seed Round With Visible We believe a VC fundraise mirrors a B2B sales motion. The fundraising process starts by finding qualified investors (top of the funnel) and building relationships (middle of the funnel) with the goal of them writing a check (bottom of the funnel). Just as a sales team has dedicated tools for their day-to-day, founders need dedicated tools for managing the most expensive asset they have, equity. Our community can now find investors, track a fundraise, and share a pitch deck, directly from Visible. Give Visible a free try for 14 days here.

As we advance into a technologically-driven future, gaming has evolved beyond mere entertainment. It converges art, technology, and commerce. For founders in the gaming industry, understanding the intricacies of current technological advancements, especially in AI, is not just beneficial—it’s crucial. AI’s transformative impact promises to shape the very fabric of gaming experiences, ensuring that they remain dynamic, engaging, and continuously evolving The investment landscape for gaming in 2023 is still very strong. Key trends spurring VC interest in gaming include: The rise of mobile gaming: Mobile gaming is the fastest-growing segment of the gaming market. In 2021, mobile gaming accounted for 52% of the global gaming market, and this number is expected to grow to 60% by 2026. This growth is being driven by the increasing popularity of smartphones and tablets, as well as the development of new mobile gaming platforms like Apple Arcade and Google Stadia. “Revenue in the Mobile Games market is projected to reach US$286bn in 2023. Revenue is expected to show an annual growth rate (CAGR 2023-2027) of 7.08%, resulting in a projected market volume of US$377bn by 2027. The average revenue per user (ARPU) in the Mobile Games market is projected to amount to US$148.80 in 2023.” Statista The increasing popularity of esports: Esports is a competitive video gaming industry that has seen significant growth in recent years, driven by the increasing popularity of live-streaming platforms like Twitch and YouTube, as well as the growing number of professional esports leagues and tournaments. Statista Report: Revenue in the Esports market is projected to reach US$3.75bn in 2023. Revenue is expected to show an annual growth rate (CAGR 2023-2027) of 9.54%, resulting in a projected market volume of US$5.40bn by 2027. The largest market is Esports Betting with a market volume of US$2.13bn in 2023. With a projected market volume of US$871.00m in 2023, most revenue is generated in the United States. In the Esports market, the number of users is expected to amount to 720.8m users by 2027. User penetration will be 7.5% in 2023 and is expected to hit 9.1% by 2027. The average revenue per user (ARPU) is expected to amount to US$6.47. The development of new technologies: New technologies like AI, virtual reality (VR), and augmented reality (AR) are also driving investment in the gaming industry. These technologies have the potential to create new and immersive gaming experiences that have never been possible before. Gaming Now and In The Future “Gaming is a massive market that will only continue growing. The growth is easy to see: In 2019, the global gaming market was $152 billion. By 2021, it reached $214 billion and is on track to generate over $300 billion in 2026. Bigger than all other forms of entertainment.” NFX The gaming industry is one of the fastest-growing industries in the world, with a market size of over $200 billion. The industry’s future will be heavily influenced by advancements in AI, Virtual Reality (VR) and Augmented Reality (AR). These technologies are shaping immersive gaming experiences and will continue to hold a significant role. However, the real game-changer will be the effective application of AI technologies. The five key areas where AI is having an impact on gaming: generative agents, personalization, AI storytelling, dynamic worlds, and AI copilots. By harnessing AI, games can become “neverending”, maintaining their appeal indefinitely through personalized experiences, AI storytelling, and dynamic, evolving worlds. The rise of social elements in games, powered by AI copilots and intelligent chat functions,.will drive engagement and longevity in the player base, heralding the future of social gaming Business Implications of AI in Gaming AI’s integration into the sector offers a transformative experience not just for players but also for gaming businesses. From enhancing player engagement to providing advanced monetization avenues, AI is in fact game-changing. Monetization Models Enhanced by AI Optimized In-Game Purchases: AI can monitor player behavior and preferences, offering real-time personalized suggestions for in-game purchases. For instance, if a player frequently struggles at a specific game level, AI might suggest a power-up or equipment purchase that can assist them. This not only increases potential sales but also enhances the gaming experience for the player. Dynamic Subscription Models: Instead of a one-size-fits-all subscription model, AI enables gaming platforms to offer tailored subscription packages. By analyzing a player’s gaming habits, frequency, and genre preferences, AI can suggest a subscription model that offers the best value, encouraging higher subscription rates. Smarter Advertisements: AI’s predictive analysis can forecast when a player is most likely to be receptive to advertisements, thereby reducing ad fatigue and increasing click-through rates. Furthermore, AI can customize ad content based on player preferences, ensuring higher engagement and conversion. Market Analysis and Forecasting Predicting Market Trends: AI can analyze vast amounts of data from forums, social media, and other platforms to spot emerging trends. By identifying what players are discussing or showing increased interest in, developers can prioritize certain game features, genres, or mechanics that are gaining traction. Player Retention Forecasting: AI can predict when players are likely to stop playing, allowing developers to introduce timely interventions, whether it’s through in-game events, updates, or other engagement tactics. This leads to increased player longevity and, consequently, higher lifetime value. Adjusting Game Development Strategies: By monitoring real-time feedback and player behavior within a game, AI can help developers understand which aspects of the game are most loved or which areas need improvement. This feedback loop can be invaluable, especially during beta testing, ensuring that the final product is better aligned with market demands. AI for Game Design & Player Experience The infusion of Artificial Intelligence (AI) into the gaming industry is not merely about adding smarter enemies or more realistic visuals. At its core, AI has the potential to revolutionize how games are designed and how players experience them. The intricate dance between game mechanics and player response is more sophisticated than ever, thanks to AI. Let’s dive deep into its multifaceted impact. AI Integration in Game Design AI in Procedural Content Generation: No longer are game worlds static or bounded by the limitations of manual design. With AI, games can generate levels, terrains, and even entire universes on-the-fly. This not only ensures each gameplay is fresh but also vastly enhances the replayability of games. Imagine embarking on a new adventure each time you play, with unpredictable terrains and challenges. AI in Game Testing: Quality assurance in gaming is paramount. However, with expansive game worlds and intricate mechanics, manual testing can be labor-intensive and might not cover all potential scenarios. Enter AI bots, which can simulate countless hours of gameplay, identifying glitches, and ensuring a seamless player experience. Dynamic Difficulty Adjustment (DDA): One-size-fits-all is a passé concept in modern gaming. AI can continuously monitor a player’s performance and adapt the game’s difficulty in real-time. This ensures that games remain engaging and challenging but stop short of being overly frustrating. It’s about striking the right balance to keep players invested. AI in Player Experience Player Behavior Analysis: Each player is unique, and AI recognizes that. By studying patterns, preferences, and behaviors, AI can modify game environments or suggest personalized paths, ensuring an immersive experience tailored for each gamer. Customized Game Narratives: Story-driven games have always been popular, but what if the narrative changed based on every choice you made? AI can weave intricate storylines that diverge and converge based on player decisions, ensuring that each gameplay tells a distinct tale. Your choices matter more than ever, and the narrative payoff is genuinely your own. AI in Multiplayer: The multiplayer realm benefits immensely from AI. Beyond crafting smarter Non-Player Characters (NPCs) that challenge even the most seasoned gamers, AI can step in when human players drop out, ensuring the game continues without a hitch. This seamless blend of AI and human intelligence creates dynamic multiplayer arenas that are unpredictable and exhilarating. Incorporating AI into game design and player experience has shown it’s not about replacing the human touch but enhancing it. It’s about crafting expansive, responsive, and deeply personal gaming worlds where every player feels seen, challenged, and, most importantly, immersed. Gaming Essentials to Include in Your Pitch Deck Overview of Your Game: Type/Category Supported Devices Revenue models, Key Performance Metrics (if known) Current progress stage Primary technology (like game engine) Consider incorporating a demo video, early versions, or visual snapshots. General Info: Brief game concept overview (1-2 sections) Titles that inspire you Fundamental gameplay elements Intended player demographic Game universe/background (Divide this into 2 or 3 slides for clarity) Distinguishing Features / Selling Points: What makes your game unique from competitors? Why players will be drawn to it Basic gameplay and overarching game narrative Primary game cycle Secondary game narratives Highlighted characteristics (Organize this info across 2-3 slides for visual appeal) Monetization Strategy: Free or Paid model? Plan for in-game purchases, advertisements, or both? Types of in-game offerings envisioned? If it’s a paid model, potential pricing? Artistic Direction: Showcase visual inspirations, preliminary designs, prototypes, animated sequences. (Recommendation: Integrate visuals from the actual game not just here, but throughout the presentation for consistency and immersion) Projected Development Journey and Funding Needs: Duration of current production time? Anticipated project milestones? Financial projections and needs? Beneficial to include: Visual representation of the development journey, manpower allocation, and post-release content strategy. Team: Your base location? Team size and roles? Competencies and strengths? Any previous successful launches? Your overarching mission and goals? Resources & Good Reads Gaming VC profiles in Visible’s Fundraising CRM YC Advice for Gaming Startups The NeverEnding Game: How AI Will Create a New Category of Games The Generative AI Revolution in Games Communities The International Game Developers Association (IGDA) is the world’s largest nonprofit membership organization serving all individuals who create games. The Game Developers Conference (GDC) is the world’s largest annual gathering of game developers. VC Firms Investing in Gaming Companies Konvoy Ventures About: Konvoy Ventures is a venture capital fund dedicated to esports & video gaming Thesis: We invest in the infrastructure technology, tools, and platforms of tomorrow’s video gaming industry. Wonder Ventures About: Wonder Ventures invests in entrepreneurs who build the world’s most innovative technology companies. Thesis: Our mission is to invest earlier than anyone in Southern California’s best founders. Lumikai About: We are India’s first gaming & interactive entertainment venture fund. We catalyse game-changing, early stage founders building the future of gaming and interactive media. Thesis: We are curating and supporting a select tribe of India’s most forward thinking, creative and talented founders. Our vision is to find and fund game-changing early stage founders with a bold vision for the future and to help them achieve outlier success. We bring decades of sector strategic experience and knowledge, while leveraging our all-star local and global networks to help propel our founders to success. Kakao Ventures About: Kakao Ventures (circa 2012 as K Cube Ventures, rebranded in 2017) is the most active seed stage VC in Korea, with over 190 portfolios and AUM of $300M (330B KRW) as of date. Kakao Ventures believes in harnessing the power of startups to change our world. Our mission statement is to be the backers of smart entrepreneurs who set their courses, in the form of startups armed with competitive edge, to solve real-world problems. Hence we hold entrepreneurs in the highest regard, and leads us to our raison d’être – making the world a better place for talented people to continuously make an impact to the world around theirs. Serena Capital About: Serena Capital caters to technology companies with seed, early, and later stage venture investments. Investment strategy: We handpick on average four to five teams per year and focus on helping them reach their maximum potential. We are not looking for early exits. We back Europe-based entrepreneurs willing to build continental or worldwide category leaders. We strongly prefer to lead or co-lead rounds. Thesis: Serena was founded by entrepreneurs on the belief that your VC should work for you and not the way around. We are not industry-specific as long as your business model is scalable and your product is digital. We have a special affection for DeepTech, enterprise software, marketplaces, and entertainment. BITKRAFT Ventures About: Built by founders for founders, BITKRAFT is a global early- and mid-stage investment platform for gaming, esports, and interactive media. We focus on Seed, Series A, and Series B investments in game studios, interactive platforms, and immersive technology. Sweetspot check size: $ 3M Traction metrics requirements: No hard requirements; preference for second-time or serial entrepreneurs Thesis: Vision of Synthetic Reality (https://www.bitkraft.vc/vision/)—the increasing convergence of the physical and digital worlds WndrCo About: WndrCo is a holding company that invests in, acquires, develops, and operates consumer technology businesses for the long term. Andover Ventures About: Andover is a venture fund investing in early stage software-enabled start-ups ranging from Pre-seed to Series A. We are sector agnostic; however, our team has a background in software development and financial technology. We make co-investments alongside larger funds, angel groups, and other family offices. Aura Ventures About: We are an early stage venture capital firm dedicated to investing in ambitious entrepreneurs to define and dominate a new generation of commerce. Velo Partners About: Velo Partners invests and manages a portfolio spanning the global gaming and gambling industry across mobile, online, land-based, real-money, social, B2B, and B2C assets. Thesis: Velo typically invests in Series A or early growth stage rounds. Our ideal investment candidates demonstrate strong early traction and a clear understanding of their unit economics and growth trajectory. We also work in association with a gaming accelerator called RNG FOUNDRY for earlier stage investment opportunities. Once invested, we typically follow our rights for later investment rounds and work with management to define good corporate governance and reporting. We will opportunistically evaluate later stage investments on an ad-hoc basis. Hiro Capital About: Hiro Capital invests in UK, European and North American innovators in Videogames, Esports, Streaming and Digital Sports. We invest in Metaverse technology founders and Game creators who are building the future. We believe that Games and Games technologies will be at the heart of next generation human societies. For us, play is deep. We are battle-scarred entrepreneurs who back next generation entrepreneurs. We have founded games and technology disruptors worth billions of dollars. We have led companies from startups to IPO in London and New York. We are gamers and sports nerds. We love games, stories, characters and deep tech. Thesis: We Invest in the innovators building the future of Games, Esports, Digital Sports Griffin Gaming Partners About: Griffin Gaming Partners is a leading venture capital firm singularly focused on investing in the global gaming market. We are founder-friendly, care deeply for our industry and bring decades of investment, advisory and operational experience. Andreessen Horowitz / a16z About: 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. Sweetspot check size: $ 25M Thesis: Historically, new models of computing have tended to emerge every 10–15 years: mainframes in the 60s, PCs in the late 70s, the internet in the early 90s, and smartphones in the late 2000s. Each computing model enabled new classes of applications that built on the unique strengths of the platform. For example, smartphones were the first truly personal computers with built-in sensors like GPS and high-resolution cameras. Applications like Instagram, Snapchat, and Uber/Lyft took advantage of these unique capabilities and are now used by billions of people. Makers Fund About: A venture capital fund created to support founders, combining deep industry experience with multi-stage investment across Seed to Series B. March Capital Partners About: March Capital Partners invest in breakthrough technology companies in Silicon Beach, Silicon Valley, and the world. Thesis: March Capital is a top-tier venture capital & growth equity firm headquartered in Santa Monica, California and investing globally since 2014. We identify entrepreneurs with a provocative vision to lead the future and later-stage companies poised for hyper-growth, then dare to go all in by leading rounds with deep conviction and concentration risk. Northzone About: We’re a multi-stage venture capital fund partnering with founders from Seed to Growth. Across Europe and the US. Bessemer Venture Partners About: 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. The firm has backed more than 120 IPOs, including Shopify, Yelp, LinkedIn, Skype, LifeLock, Twilio, SendGrid, DocuSign, Fiverr, Wix, and MindBody. Bessemer’s 16 investing partners operate from offices in Silicon Valley, San Francisco, New York City, Boston, Israel, and India. Follow @BessemerVP and learn more at bvp.com. Sweetspot check size: $ 15M Atomico About: Atomico is a risk capital group. They are entrepreneurs with global perspectives who invest their own capital in passionate entrepreneurs with powerful ideas. Through their experience building Skype, Joost and Kazaa, they understand the value of game-changing business models and have created a worldwide ecosystem to help accelerate the growth of the companies in which they invest. The Games Fund About: TGF is an early-stage VC fund founded by video game industry veterans. We invest in future leaders: game developers, gaming technologies, and services. We share best practices and offer our experience and personal touch. 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: Gaming VC profiles in our Fundraising CRM

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 as a sales and marketing funnel starts by finding the right leads, the same is true for a fundraise. Founders raising venture capital should start by identifying the right investors for their businesses. If you’re a founder located in France and are looking for venture capitalists in your area, check out our list below: 1. Alven Capital Partners As put by their team, “Alven is an independent venture investment firm with a successful track record of 5 successive funds backing more than 130 startups over 20 years. Our team consists in seasoned investors and functional experts with significant startup experience, to identify promising startups and accelerate their growth.” Learn more about Alven by checking out their Visible Connect profile → Location Alven has offices in Paris and London and invests in founders across Europe. Portfolio Highlights Some of Alven’s most popular investments include: Algolia ChartMogul Stripe Funding Stage Alven attempts to be the first check into a business after angel investors — typically seed or series A. Their typical investment is between €500K and €5M. 2. 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 across the globe and has multiple funds to invest in companies across the globe. Portfolio Highlights Some of Partech’s most popular investments include: Bolt The Bouqs Co. Zeel Funding Stage Partech has multiple funds that are geared towards different stages — from seed to growth stage. 3. Sofinnova Partners As put by their team, “At Sofinnova Partners, we focus on breakthrough innovations that have the potential to solve the world’s most pressing problems. Experience, agility, and diverse points of view push us forward, driving our ability to evolve in a complex environment. “Partners for Life” is a cornerstone of our identity: nurturing strong relationships through trust and transparency. We invest in people and science to create opportunity. We commit to long-term partnerships with entrepreneurs who are as passionate as we are about pushing the frontiers of innovation to contribute to a better future. Founded in 1972, Sofinnova Partners has backed more than 500 companies over 50 years, creating market leaders around the globe. Today, Sofinnova Partners has over €2.5 billion under management.” Learn more about Sofinnova Partners by checking out their Visible Connect profile → Location Sofinnova is located in Paris. Portfolio Highlights Some of Sofnnova’s most popular investments include: Avantium Kiro NuCana Funding Stage Sofinnova has 6 different fund strategies that are targeted on different stages and markets. They are: Sofinnova Capital Sofinnova MD Start Sofinnova Crossover Sofinnova Industrial Biotech Sofinnova Telethon Sofinnova Digital Medicine Related Resource: The Top VCs Investing in BioTech (plus the metrics they want to see) 4. Seventure Partners As put by their team, “Seventure Partners adopts an extremely rigorous but collegial process when selecting innovative companies for investment. Determining whether we can establish a relationship based on trust and work effectively with a company’s management team are key elements that we take into consideration. Investments are aimed at strengthening the equity capital of innovative companies at all stages: from seed to growth capital. As we are often the lead investor, we actively partner with entrepreneurs, encouraging and supporting them in reaching their full potential in order to achieve a leadership position within their fields. Our presence as directors on the company’s board or in a supervisory role creates a holistic approach that supports entrepreneurs in their development and companies throughout the key phases of their growth.” Learn more about Seventure Partners by checking out their Visible Connect profile → Location Seventure is located in Paris. Portfolio Highlights Some of Seventure Partner’s most popular investments include: Hivency Skinjay Sumup Funding Stage Seventure invests in companies across all stages — from seed to growth stage. Related Resource: A Quick Overview on VC Fund Structure 5. Eurazeo As put by the team at Eurazeo, “From fledgling startups to SMEs, mid-caps and multinationals, we detect, finance, accelerate and support companies that are inventing and reinventing themselves, innovative entrepreneurs, and emerging talent. We turn constraints into opportunities, challenges into ways to create value, and bold ideas into success stories. Every day, we work alongside management teams and investors at the grass-roots level. In the right place, at the right time, and over the long term, we help them reveal the best of themselves and, ultimately, contribute to creating meaningful growth.” Learn more about Eurazeo by checking out their Visible Connect profile → Location Eurazeo has offices across the globe. Portfolio Highlights Some of Eurazeo’s most popular investments include: Swile Grab Wefox Funding Stage Eurazeo funds companies across all stages. 6. Omnes Capital As put by their team, “Our Venture Capital activity, the historic heart of Omnes, with €700M under management, supports innovative European start-ups in the fields of deeptech. We back extraordinary founders executing on a clear vision and building worldwide leading businesses in the fields of techbio, cybersecurity, new space, quantum computing, new materials, carbone capture and novel food.” Learn more about Omnes Capital by checking out their Visible Connect profile here → Location Omnes Capital is headquartered in Paris. Portfolio Highlights Some of Omnes’ most popular investments include: Opensee Artifakt Gourmey Funding Stage As put by their team, “First investment from €2M to €7M with potential follow-on up to €20M.” 7. Vantech As put by their team, “Ventech is a global early-stage VC firm based out of Paris, Munich, Berlin, Helsinki, Shanghai and Hong Kong with over €900m raised to fuel globally ambitious entrepreneurs and their visions of the future positive digital economy. Since inception in 1998, Ventech has made 200+ investments such as Believe, Vestiaire Collective, Botify, Freespee, Ogury, Veo, Picanova and Speexx; and 90+ exits including Webedia, Meuilleurs Taux.com, Curse, StickyADS.tv and Withings).” Location Vantech has offices across Europe and Asia including Paris, Berlin, Munich, Helsinki, Hong-Kong, Shangai. Related Resource: 8 Most Active Venture Capital Firms in Europe Portfolio Highlights Some of Vantech’s most popular investments include: Adore Me Mobius Labs Picanova Funding Stage Vantech invests in companies across all stages. Related Resource: Private Equity vs Venture Capital: Critical Differences 8. Aster As put by their team, “Aster Capital arranges equity and debt-secured accounts for Proof of Funds uses on a fixed-return basis to facilitate various funding requirements, providing organizations and individuals the capability to meet on-going project needs. The investment process is simple and secure, and can be completed in as little as two banking days. Aster can arrange funding for various types of accounts and instruments for a broad range of requirements.” Location Aster has offices in Paris, London, and Nairobi. They make investments in companies located in Europe, US, and Israel. Portfolio Highlights Some of Vantech’s most popular investments include: Betterway Habiteo Candi Funding Stage Vantech funds companies that are raising anything from a seed round to series B. 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.

In the dynamic realm of venture capital, where innovation meets investment, the success of startups often hinges on the expertise, networks, and strategic insight provided by the key players within VC firms. Venture partners, uniquely positioned within the VC ecosystem, offer a blend of expertise, networks, and capital that can significantly influence the trajectory of startups. Their role extends beyond mere financial investment, encompassing a broad spectrum of activities designed to nurture and propel startups toward success. This article delves into the nuances of venture partners' responsibilities, their distinct positions within VC firms, and the invaluable assets they bring to the startup world. Who is a Venture Partner? Venture partners are seasoned professionals who collaborate with venture capital firms on a flexible basis. Unlike general partners, who are integral to the VC firm's day-to-day operations and investment decisions, venture partners typically engage in a more focused capacity. Their primary function is to identify promising investment opportunities, leverage their expertise and networks to guide startups and represent the VC firm within the broader entrepreneurial ecosystem​​. The distinction between venture partners, general partners, and limited partners lies in their involvement level, compensation structure, and role in investment decision-making and firm governance. Venture partners often work on a part-time or project basis, may receive carried interest but not necessarily a salary, and usually do not have full voting rights on investment decisions​​. Related resource: 25 Limited Partners Backing Venture Capital Funds + What They Look For The Unique Role of Venture Partners in Startups Venture partners occupy a distinctive and influential position within the startup ecosystem, bridging the gap between VC firms and the innovative companies they invest in. Their contribution extends far beyond mere financial backing; venture partners bring a wealth of expertise, strategic insight, and invaluable networks to the table. Sourcing Potential Investments Venture partners are essential in VC for scouting startups and fostering founder relationships. They combine market research, sector expertise, and tech trends to spot investment opportunities. Through networking and direct outreach, they build early trust with entrepreneurs, offering advice and connections. This role is pivotal for VC firms to gain a competitive edge, ensure portfolio diversity, and maintain a consistent investment pipeline. In essence, venture partners' insights and networks enable VC firms to capture high-potential investments and sustain their market leadership. Offering Expertise and Guidance Venture partners offer crucial expertise and guidance to startups, leveraging their extensive experience and industry knowledge to mentor and advise companies within a VC firm's portfolio. They typically have a deep understanding of specific sectors, market dynamics, and the challenges that emerging companies face. This enables them to provide strategic advice on a wide range of issues, including product development, market entry strategies, scaling operations, and navigating competitive landscapes. Their guidance often extends to helping startups refine their business models, improve operational efficiencies, and develop go-to-market strategies that enhance their chances of success. Moreover, venture partners can assist in preparing startups for future funding rounds, advising on the best approaches to attract further investment. By acting as mentors, venture partners not only contribute to the immediate growth and stability of startups but also help build the foundation for long-term success. Their involvement can significantly impact a startup's trajectory, accelerating growth and reducing the risk of failure. Representing VC Firms Venture partners play a key role in representing VC firms within the broader startup ecosystem. By actively participating in events, conferences, and panels, they not only enhance the visibility of their VC firm but also engage directly with emerging startups, investors, and industry thought leaders. This involvement allows them to stay abreast of the latest trends, technologies, and opportunities, fostering relationships that could lead to future investments. Their presence at these gatherings underscores the VC firm's commitment to the startup community, facilitates the exchange of ideas, and positions the firm as a key player in the entrepreneurial landscape. Through these engagements, venture partners effectively bridge the gap between VC firms and the dynamic world of startups, ensuring their firm remains at the forefront of innovation and investment opportunities. Provides Access to Networks Venture partners significantly enhance a startup's growth potential by providing access to their extensive networks, introducing startups to potential clients, strategic partners, and key hires. This access can accelerate a startup's market penetration, expand its customer base, and secure partnerships that offer competitive advantages. Additionally, leveraging a venture partner's network for talent acquisition can help startups attract experienced and skilled professionals crucial for scaling their operations. This network access is invaluable for startups looking to navigate market challenges and capitalize on opportunities more efficiently, underlining the venture partner's role in facilitating connections that drive success and growth. Related resource: A Quick Overview on VC Fund Structure The 5 Types of Venture Partners Venture partners can be categorized into five distinct types, each bringing unique skills and focus areas to the VC firm and its portfolio companies: 1. Operating Partners Operating partners represent a vital resource within the VC ecosystem, offering a unique blend of operational expertise and strategic guidance to help portfolio companies navigate growth challenges and scale successfully. Their hands-on approach and deep involvement in the operational aspects of a business differentiate them from other types of venture partners and make them invaluable allies for startups looking to maximize their potential and achieve sustainable growth. Role and Responsibilities Operational Support Operating partners provide hands-on support to portfolio companies, helping them scale operations, improve efficiency, and navigate complex business challenges. They often work closely with the company's management team to implement best practices, optimize processes, and drive growth. Expertise in Specific Areas They typically have a wealth of experience and expertise in specific functional areas such as sales, marketing, finance, human resources, or technology. This expertise allows them to offer tailored advice and strategies to address the unique needs of each portfolio company. Value Creation The primary goal of an operating partner is to create value for the portfolio company by leveraging their operational expertise. This could involve leading turnaround efforts, driving go-to-market strategies, optimizing supply chains, or implementing technological innovations. Strategic Initiatives Operating partners may lead or contribute to strategic initiatives within the portfolio company, such as entering new markets, launching new products, or pursuing mergers and acquisitions. Mentorship and Coaching They often serve as mentors and coaches to the CEOs and leadership teams of portfolio companies, sharing insights from their own experiences to guide leaders in making informed decisions. Duration of Engagement The involvement of an operating partner with a portfolio company can vary, ranging from a short-term project to a long-term engagement, depending on the specific needs and goals of the company. How They Differ from Other Venture Partners The key differentiator of operating partners is their hands-on, operational focus. While other venture partners might concentrate on broader strategic, advisory, or networking roles, operating partners are deeply involved in the trenches with portfolio companies, working to solve operational problems and drive tangible improvements. Benefits to Startups and VC Firms Accelerated Growth and Scale By implementing best practices and strategic initiatives, operating partners can significantly accelerate the growth and scaling efforts of portfolio companies. Risk Mitigation Their expertise and oversight can help identify and mitigate potential risks before they become significant issues. Increased Value Through operational improvements and strategic guidance, operating partners can increase the value of a portfolio company, leading to better outcomes for both the company and its investors. 2. Board Partners Board partners serve as a bridge between the strategic oversight required by a board of directors and the operational support provided by the broader VC firm and its network. By leveraging their experience, networks, and strategic insight, board partners contribute significantly to the growth and success of portfolio companies. Their role underscores the importance of governance and strategic planning in the fast-paced startup environment, ensuring that companies not only grow but also adhere to sound business principles and practices. Role and Responsibilities Strategic Guidance Board partners provide strategic direction and advice to portfolio companies, helping them navigate complex decisions and align their operations with long-term objectives. Governance They play a crucial role in governance, often serving on the boards of portfolio companies. Their presence ensures that there is an experienced voice to guide decision-making processes, oversee the management team, and ensure that the company adheres to its strategic goals. Network and Connections Board partners leverage their extensive networks to assist startups in finding potential clients, partners, and even future employees. Their connections can be invaluable in opening doors that might otherwise remain closed to early-stage companies. Fundraising and Financial Oversight They can also play a significant role in helping startups secure further funding, providing advice on financial structuring, and preparing for rounds of financing. Their experience can be critical in negotiating terms with new investors and in financial planning. Crisis Management In times of crisis, board partners can offer seasoned perspectives to help navigate through challenging periods, whether the issues are financial, operational, or market-related. How They Differ from Other Venture Partners The main differentiation of board partners from other types of venture partners lies in their primary focus on governance and strategic oversight rather than operational support or deal sourcing. Board partners are specifically brought into the VC ecosystem for their ability to contribute at the board level, offering insights and guidance that can steer a company towards success. Benefits to Startups and VC Firms Improved Decision-Making With their extensive experience and strategic vision, board partners can significantly improve the quality of decision-making within a startup, steering it clear of potential pitfalls. Enhanced Credibility Their involvement can enhance a startup's credibility in the eyes of investors, customers, and partners, given their reputation and track record. Strategic Networking Board partners open up their network of contacts, providing startups with access to a broader ecosystem that can support growth and expansion. Risk Mitigation Their governance role ensures that the company adheres to best practices and regulatory requirements, thereby mitigating risks associated with compliance and operational missteps. 3. Fundraising Partners Fundraising partners facilitate the flow of capital that fuels innovation and growth within the VC firm's portfolio. By leveraging their expertise, networks, and understanding of the financial landscape, they ensure that both VC firms and their portfolio companies have the resources they need to succeed. Their role underscores the importance of strategic fundraising in the competitive and fast-paced world of venture capital, making them indispensable allies in the quest for growth and success. Role and Responsibilities Capital Raising for VC Funds Fundraising partners are instrumental in raising new funds for the VC firm. They engage with potential investors, articulating the value proposition of the fund, its investment thesis, and the track record of the firm to secure commitments. Supporting Portfolio Companies Beyond raising capital for the VC firm itself, fundraising partners often assist portfolio companies in their fundraising efforts, helping them to prepare for rounds of funding, from seed stage to later-stage financing rounds. Strategic Networking They utilize their extensive networks of investors, including institutional investors, family offices, and high-net-worth individuals, to introduce potential funding sources to both the VC firm and its portfolio companies. Market Intelligence and Trends Fundraising partners keep a pulse on market trends, investor sentiments, and the regulatory landscape to advise on the most opportune times to raise funds, the best strategies to employ, and the types of investors to target. Investor Relations and Communication They play a key role in managing relationships with existing investors, ensuring transparent communication, and keeping LPs informed about the performance of their investments and the progress of portfolio companies. How They Differ from Other Venture Partners The distinguishing feature of fundraising partners compared to other types of venture partners is their focus on the financial ecosystem surrounding venture capital and startups. While operating partners may delve into the operational aspects and board partners may focus on governance and strategy, fundraising partners are deeply entrenched in the financial networks and activities that fund the venture ecosystem. Benefits to Startups and VC Firms Access to Capital Fundraising partners open doors to capital by connecting startups and the VC firm itself with potential investors, crucial for both launching and scaling ventures. Strategic Fundraising Guidance They provide strategic advice on the fundraising process, helping to structure deals in ways that are attractive to investors while safeguarding the interests of the startup and its founders. Enhanced Credibility The involvement of a seasoned fundraising partner can enhance the credibility of a fundraising round, attracting more and potentially better-suited investors. Efficient Fundraising Process Their expertise and network can streamline the fundraising process, reducing the time and resources that startups need to invest in securing funding. 4. Sourcing Partners Sourcing partners serve as the bridge between promising startups and the capital they need to grow. Their ability to identify and evaluate potential investments, coupled with their deep understanding of market trends and networks within the startup community, makes them invaluable to VC firms looking to invest in the next wave of innovative companies. Through their efforts, VC firms can maintain a robust pipeline of investment opportunities, ensuring sustained growth and success in the competitive venture capital landscape. Role and Responsibilities Deal Flow Generation: Sourcing partners are responsible for generating a steady flow of investment opportunities by identifying promising startups and entrepreneurs. This involves attending industry events, networking, and staying abreast of emerging trends and sectors. Initial Evaluation and Screening: They conduct initial evaluations of potential investments, screening opportunities based on the VC firm's criteria such as market potential, team quality, product innovation, and fit within the firm's portfolio strategy. Relationship Building: Sourcing partners build and maintain relationships with startups and entrepreneurs, even before these entities are ready for investment. This helps in creating a pipeline of potential future investments and ensures the VC firm has early access to high-potential deals. Market Research and Analysis: They conduct market research and analysis to identify emerging trends, sectors, and technologies that present new investment opportunities. This insight helps the VC firm to stay ahead of the curve and invest in future growth areas. Collaboration with Investment Team: Sourcing partners work closely with the broader investment team to share insights, evaluate deals, and contribute to the decision-making process. Their on-the-ground intelligence is crucial for informed investment decisions. How They Differ from Other Venture Partners Sourcing partners differ from other types of venture partners in their primary focus on the top of the investment funnel—identifying and securing new deals. Unlike operating or board partners, who might engage more deeply with portfolio companies post-investment, sourcing partners are pivotal in the pre-investment stage, dedicating their efforts to discovering and vetting potential investment opportunities. Benefits to Startups and VC Firms Access to Opportunities For VC firms, sourcing partners provide access to a broad and deep pool of potential investments, including early access to high-potential startups that might not yet be on the radar of the broader investment community. Strategic Alignment They ensure that the investment opportunities align with the VC firm's strategic goals and investment thesis, optimizing the firm's portfolio for success. Competitive Advantage By building strong relationships with entrepreneurs and startups early on, sourcing partners can give VC firms a competitive edge in securing investments in highly sought-after ventures. Efficient Investment Process Their expertise and initial screening efforts streamline the investment process, enabling the VC firm to focus its resources on the most promising opportunities. 5. Business Development Partners Business development partners focus on leveraging strategic partnerships and growth initiatives to drive value creation within the portfolio of a VC firm. Their role is instrumental in helping startups achieve scale, access new markets, and develop sustainable business models. Through their efforts, business development partners not only enhance the growth potential of individual companies but also contribute to the overall success and return on investment for the VC firm and its stakeholders. Role and Responsibilities Strategic Partnerships Business development partners identify and facilitate strategic partnerships for portfolio companies. These partnerships can range from alliances with other companies, channel partnerships, or joint ventures that can help startups scale quickly and efficiently. Market Expansion They play a crucial role in helping portfolio companies enter new markets, whether geographic or demographic, by providing insights into market dynamics, regulatory environments, and competitive landscapes. Customer Acquisition and Sales Strategies Business development partners assist in refining and implementing effective sales and customer acquisition strategies. Their goal is to accelerate revenue growth and market penetration for the portfolio companies. Networking and Introductions Leveraging their extensive networks, they introduce portfolio companies to potential customers, partners, and industry influencers, opening up new opportunities for business growth and collaboration. Operational Scaling They provide guidance on scaling operations, from optimizing sales processes to enhancing product delivery, ensuring the company's infrastructure can support growth. How They Differ from Other Venture Partners Business development partners distinguish themselves from other types of venture partners by their focus on operational growth and market expansion activities. While sourcing partners concentrate on finding new investment opportunities and fundraising partners on capital inflow, business development partners are deeply involved in the strategic and operational scaling of existing portfolio companies. Their work is hands-on, directly impacting the revenue and growth trajectory of the companies they support. Benefits to Startups and VC Firms Accelerated Growth Business development partners contribute directly to the accelerated growth of portfolio companies through strategic initiatives and partnerships, enhancing the value of the VC firm's investments. Market Access Their efforts help startups gain access to new markets and customer segments, crucial for companies looking to scale beyond their initial niche or geographic location. Strategic Alliances By fostering strategic alliances, they enable startups to leverage the strengths and capabilities of other companies, potentially bypassing years of solo development and scaling efforts. Enhanced Revenue Streams Their focus on optimizing sales strategies and customer acquisition can lead to enhanced revenue streams and improved market positioning for portfolio companies. Expert Guidance The operational and strategic guidance provided by business development partners can be invaluable for startups navigating the complexities of scaling a business, helping to avoid common pitfalls and accelerate success. Qualities of a Successful Venture Partner A successful venture partner embodies a set of key qualities that enable them to contribute effectively to the growth of startups and add value to VC firms. These qualities include: Industry Expertise: Deep understanding of specific sectors, enabling them to provide valuable insights and guidance. Strategic Thinking: Ability to develop and advise on strategies that drive startup growth and innovation. Networking Skills: Extensive connections across the startup ecosystem, facilitating introductions and partnerships. Communication Skills: Clear and persuasive communication, crucial for representing VC firms and advising startups. Analytical Skills: Strong ability to assess market trends, financial data, and startup potential, guiding investment decisions. Mentorship: Commitment to supporting and guiding entrepreneurs through the challenges of scaling their businesses. Adaptability: Flexibility to navigate the fast-paced and ever-changing startup landscape. Integrity and Trustworthiness: Building trust with entrepreneurs and within the VC firm by acting with honesty and integrity. Start Your Funding Journey With Visible Venture partners represent a critical nexus between venture capital firms and startups, offering a combination of capital, expertise, and networks that can significantly accelerate a startup's path to success. Their multifaceted role underscores the collaborative spirit of the venture capital ecosystem, where diverse talents and resources converge to nurture innovation and growth. Start your funding journey with Visible, where you can tap into a wealth of resources, expertise, and connections to propel your startup forward. Raise capital, update investors, and engage your team from a single platform. Try Visible free for 14 days. Related resource: Private Equity vs Venture Capital: Critical Differences

Building a startup is challenging. On top of building a product, hiring a team, and scaling revenue — founders are responsible for securing capital for their business. For many startups, this comes in the form of venture capital. Learn more about the different funding stages and venture capital rounds below. What Are Startup Funding Stages? There are multiple stages of startup funding: Seed, Series A, Series B, Series C, and so forth. Startups should be conscientious about the funding rounds that they will go through, which are generally based on the current maturity and development of the company. Here’s an overview of the major startup stages. As of 2023. Source Crunchbase Seed funding is a startup’s earliest funding stage. Often, seed funding comes from angel investors, friends and family members, and the original company founders. An early-stage startup may also look for funding through bank loans, but angel investments are usually preferred. Seed funding is used to start the company itself, and consequently, it’s a fairly high risk: the company has not yet proven itself within the market. There are many angel investors that specifically focus on seed funding opportunities because it allows them to purchase a part of the company’s equity when the company is at its lowest valuation. Related Reading: Valuing Startups: 10 Popular Methods The next stage of the startup funding process is Series A funding. This is when the company (usually still pre-revenue) opens itself up to further investments. Series A funding is generally much more significant than the funding procured through angel investors, with funds of more than $10 million usually being procured. Series A funding is often acquired to help a startup launch. The business will publicize itself as being open to Series A investors and will need to provide an appropriate valuation. Finally, there’s Series B, C, D, and beyond funding. Later stage funding is sought by companies that have already become successful and are trying to expand that success. Each stage of the startup funding process operates very similarly, despite the different stages the business might be in. During the startup funding process, the company has to be able to establish it’s valuation and will need to have clear plans for how it is planning to use the money it procures. Each round of funding will also, by necessity, dilute the company’s equity. Related resource: The Ultimate Guide to Startup Funding StagesPre-Seed Funding Over the last few years, a new funding stage has emerged, pre-seed funding. A pre-seed round is a round of venture capital that is generally the first round of institutional capital that a startup raises. A pre-seed round generally allows a founding team to find product-market fit, hire early employees, and test go-to-market models. As a general rule of thumb, funding should last somewhere between 12 and 18 months. It should be enough capital to allow you to comfortably hit your goals and the forecast you laid out during your pitching and fundraising process. Related Reading: What is Pre-Seed? Average Pre-Seed Funding Amount The size of pre-seed rounds varies quite a bit from company to company. There is no cut and dry amount. Research shows that round sizes can range anywhere from $100,000 to $5M at the pre-seed round. At the end of the day, you will want to weigh your business needs when setting valuations and determining how much to raise. How to Acquire Pre-Seed Funding? Raising a pre-seed round mirrors a traditional B2B sales process. You will be talking and adding investors to the top of your funnel, pitching and negotiating in the middle of the funnel, and hopefully closing them at the bottom of the funnel. Learn more about building a fundraising process in our guide, “All-Encompassing Startup Fundraising Guide.” We sat down with Jonathan Gandolf, CEO of The Juice, every week during his pre-seed raise to breakdown what he was learning along the way. We boiled down the conversations into 8 episodes. Give it a listen below: Who Invests in Pre-Seed Rounds? One of the plus side of a pre-seed round is that it opens up more types of investors as the check sizes are generally smaller: Angel Investors — A common place to start for a pre-seed round. Angel investors are individuals that can write checks that are anywhere from a few thousand dollars to $500,000+ Accelerators/Incubators — Many accelerator programs will take place in tandem with a pre-seed or will potentially write follow-on checks after completing their program to help fund your pre-seed round. Related resource: Accelerator vs. Incubator: Key Differences and Choosing the Best Fit for Your Startup Dedicated VC Funds — Over the last few years, many dedicated pre-seed funds have popped up and become a staple in the space. More traditional and larger firms are also making their way into pre-seed rounds. Related Resource: How Rolling Funds Will Impact Fundraising Active Pre-Seed Stage Investors As we mentioned, there are many dedicated pre-seed funds that are popping up in the space. Check out a few of our favorites below: Hustle Fund Forum Ventures Bessemer Venture Partners Boldstart Ventures Connetic Ventures Expa Kima Ventures LongJump M25 Mucker Capital Starting Line TheVentureCity Find more pre-seed investors in our investor database, Visible Connect, here. Related Resource: What is Pre-Revenue Funding? Related Resource: 12 Venture Capital Investors to Know Seed Funding As we mentioned earlier, “Seed funding is a startup’s earliest funding stage. Often, seed funding comes from angel investors, friends and family members, and the original company founders.” More investors have become keen on being early investor into a startup so they have access to invest again at later stages. Raising seed-stage funding is a major accomplishment for a startup. Seed stage funding is the initial surge of capital into the business. At this point, a startup is largely an idea and will have little to no revenue. This stage is generally when a product and go-to-market strategy are being built and developed. Over the past couple of years, seed-stage funding has exploded in round size. What used to be regarded as a few small checks from family and friends has turned into a multimillion-dollar round. Check it out: Source Crunchbase How to Acquire Seed Funding There are generally a few ways founders can approach a seed round. First things first, founders need to find a list of investors that are relevant for their business. Not every investor will say “yes” so it is important to have a list of 50+ investors to target. From here, founders will need to reach out to potential investors, sit meetings, and share their pitch deck and vision to garner interest. Next, founders will work through due diligence with the hopes of adding new investors to their cap table. Related Reading: Seed Funding for Startups: A 101 Guide Related Reading: A Quick Overview on VC Fund Structure Related Resource: An Essential Guide on Capital Raising Software Series A Funding After raising a Seed Round it’s time for a company to advance to a later round of venture capital financing, which means Series A funding. Series A is a significant stage in a company's lifecycle and is a monumental moment in a startup's funding journey. A Series A startup typically has found some success, has found product market fit, and is ready to scale. At the time of Series A funding, the company has to be valued and priced. Thought must go into previous investments, as prior investors will have also purchased the business at a specific valuation. If an angel investor purchased into the company at a valuation of $100,000 just months ago, then new investors may balk at purchasing at a $10,000,000 valuation today. Once the funding round has been completed, the company will usually have working capital for 6 to 18 months. From there, the company may either be able to move to market or may instead progress to another series of funding. Series A, B, and C funding rounds are all based on stages that the company goes through during its development. It is important to remember that when raising your Series A you are setting goals and objectives for what that capital will do to your business. You need to raise enough capital to help you achieve these goals so you can go on to raise a Series B or future round of capital. Average Series A Funding Amount Source Crunchbase As of 2024, the average Series A funding amount is $18.7 million. A Series A valuation calculator can be used to get close to the number that you should value your company at, though you will also need to thoroughly justify your valuation. How to Acquire Series A Funding? A company’s valuation will be impacted by a number of factors, including the company’s management, size, track record, risk, and potential for growth. Analysts can be called in for a professional valuation of the business. During a Series A funding round, a business usually will not yet have a proven track record, and may have a higher level of risk. During a Series A round, investors will usually be able to purchase from 10% to 30% of the business. Series A investments are generally used to grow the business, often in preparation for entering into the market. The company itself will be able to decide how much it wants to sell during its Series A round, and may want to retain as much of the company control as possible. Let’s start out with a hard truth: sometimes revenue doesn’t matter much in a successful Series A raise. If you’re a seasoned SaaS entrepreneur with a strong team, raising your next round will be much easier than for a first-time founder. Many VCs will place the greatest emphasis on past success for the best indicator of future results—whether or not a company’s unit economics are solid or if they’ve reached the proper revenue benchmarks. Jason Lemkin claims he’d comfortably invest in a pre-launch SaaS company with $0 in ARR if the team is strong and experienced and the market and opportunity are huge. “This makes sense as in many cases, SaaS is an execution play,” Lemkin wrote on Quora. “Put the best team into a strong, upcoming (or disruptable, large market), and that’s a good bet to make.” Related Resource: 23 Top VC Investors Actively Funding SaaS Startups Related Resource: Who Funds SaaS Startups? Related Resource: 20 Best SaaS Tools for Startups Related Resource: 13 Generative AI Startups to Look out for But if you haven’t birthed any unicorns or shepherded any startups to 10x exits already, your benchmarks may be a little more concrete. In the same response, Lemkin wrote that he looks for unproven, bootstrapped startups to hit about $2 million in ARR. In an interview with SaaStr, Tomasz Tunguz estimated a lower mark. Tunguz said most of the founders he speaks with are looking to hit somewhere between $75,000 to $125,000 (or $900,000 to $1.5 million in ARR) in MRR before making their Series A pitch. Despite the wide range, it seems pretty tough for any new founder to conduct a strong Series A round without revenue nearing $1 million ARR in today’s fundraising environment. Without that, you’re going to have to lean more heavily on pitching your market opportunity or product superiority. Related Resource: 7 Startup Growth Strategies Recommended Reading: How to Write the Perfect Investment Memo Recommended Reading: How to Pitch a Series A Round (With Template) Series B Funding Once a business has been launched and established, it may need to acquire Series B funding. A business will only acquire Series B funding after it has started its operations and proven its business model. Series B funding is generally less risky than Series A funding, and consequently, there are usually more interested investors. As with Series A funding, the company begins with a valuation. From there, it publicizes the fact that it’s looking for Series B funding. The company will be selling its equity at the valuation that is settled upon, and investors are free to make offers regarding this valuation. A startup that gets to Series B funding is already more successful than many startups, which will not go beyond their initial seed capital. Once Series B funding has been procured, the business will need to use this money to further stabilize, improve its operations, and grow. At this point, the startup should be in a good position. If the startup needs further money after it develops, to grow and expand, it may need to embark upon a Series C funding round. Average Series B Funding Amount Source Crunchbase On average, Series B startups will usually get $30M or more. The bulk of the heavy lifting will already have been done by seed capital and Series A funding. Series B funding will simply be used to grow the business further and improve upon it. How to Acquire Series B Funding? Sometimes Series B funding will come from the same investors who initially offered Series A funding. Other times, Series B funding may come from additional investors, or from firms that specialize in investing. Either way, investors are usually going to be paying more for less equity than investors did in prior funding rounds, because the company’s valuation will have scaled. A Series B funding valuation will need to consider the company’s current performance and its future potential for growth. Analysts can be used to price a company looking for Series B funding. However, it should also be noted that the company itself has more negotiating power as a Series B company, as it has proven itself to be successful. Related Reading: How to Pitch a Perfect Series B Round Series C Funding Series C funding is meant for companies that have already proven themselves as a business model but need more capital for expansion. Like Series B funding, Series C investors will often be entrepreneurs and individuals who have already invested in the company in the past. A startup may connect with their angel investors and Series A and Series B investors first when trying to procure Series C funding. If a business has made it to Series C funding they are already quite successful. Whereas earlier stage rounds are used to help a startup find traction and grow, by the time a startup raises their Series C they are already established and growing. By raising a Series C a business will be able to make strategic investments. This could mean investing in market expansion, new products, or even acquiring other companies. Average Series C Funding Amount Source Crunchbase A Series C funding amount is generally between $30 and $100M settling on an average round of $50M. At this point, a startup’s valuation is likely over $100M and they are on a national radar looking to expand internationally. How to Acquire Series C funding? When approaching a Series C, the strategy will likely change from earlier rounds. As we mentioned, the average is around $50M. This means that your investors cutting checks between $1 and $5M from earlier rounds are no longer likely to lead a round. Previous investors may be keen to invest in your Series C but startups will need to fill out the remainder of the round from other investors. When approaching a Series C valuation, your company likely speaks for itself and will have more inbound requests from investors. These investors will likely be later-stage VC funds, private equity firms, and banks. Later Startup Funding Stages Depending on the business strategy, a Series C round may be the end of the road in terms of venture capital financing. At this point, the company is likely headed in a strong direction and owns a large % of an addressable market. However, some companies go on to raise their Series D, Series E, Series F, and even Series G. Series D Funding A Series D funding round may occur if the company was not able to raise enough money through its Series C. This often has implications for the business. Series D funding occurs when the business was not able to meet its targets with its Series C, and consequently it can mean that the business is now at a lower valuation. Being priced at a lower valuation is usually very negative for a business. If Series D funding is necessary, due to challenges that the company is facing, then it may be the only way for the startup to survive. However, it generally devalues the company, and may shake future investor faith. Series E Funding Series E funding may be necessary if Series D funding isn’t able to meet the company’s needs for capital. This is, again, a very bad sign, and very few companies are going to survive to Series E funding. Series E funding will only occur if the business still hasn’t been able to make up its own capital but the business is still struggling to remain active and private. Series F Funding Beyond Series E funding comes Series F funding. Very few companies will make it to Series F funding. This is many years into a company's lifecycle. Series F funding is largely used for capital-intensive businesses that need to fuel their next stage of growth, an IPO, an acquisition, or expansion. Series G Funding Next comes Series G funding. Even fewer companies will make it to a Series G. Like Series E or F funding, a Series G round is typically used for companies that are on to their next stage of growth, gearing up for an IPO or acquisition, or expansion into a new market. Related resource: Emerging Giants: An Overview of 20 Promising AI Startups Initial Public Offering (IPO): Accessing Public Markets for Funding An IPO has traditionally been the pinnacle of a startup’s success story. As put by the team at Investopedia, “An initial public offering (IPO) refers to the process of offering shares of a private corporation to the public in a new stock issuance for the first time. An IPO allows a company to raise equity capital from public investors.” For startup founders and early employees, an IPO is an opportunity to cash out. Track Your Startup’s Fundraise With Visible No matter the series, size, or timing of your round, Visible is here to help. With Visible, you can manage every stage of your fundraising pipeline: 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 resources: Strategic Pivots in Startups: Deciding When, Understanding Why, and Executing How Multiple on Invested Capital (MOIC): What It Is and How to Calculate It Navigating the Valley of Death: Essential Survival Strategies for Startups Top 18 Revolutionary EdTech Startups Redefining Education Top Creator Economy Startups and the VCs That Fund Them Business Venture vs Startup: Key Similarities and Differences The Top 9 Social Media Startups

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: A Quick Overview on VC Fund Structure A strong sales and marketing funnel starts by identifying the right leads for your business. The same idea is true for founders looking to find investors for their business — find the right investors for your business. If you’re a founder located in Israel and would like to find the right investors for your business, check out our list of active investors in the area below: 1. Altair Capital https://connect.visible.vc/investors/altair-capitalAs put by their team, “We invest in the world’s most promising companies with disruptive ideas and great return potential. We invest in early and growth stage startups in sectors such as Productivity tools, Fintech, Insuretech, AI, Digital Health. Great and motivated teams, strong product vision, scalable business model and big potential market are a must!” Location Altair Capital invests in companies in Israel, the US, and Europe. Company Stage Altair looks for companies that have achieved initial traction. Preferred industries As put by their team, “We are interested in productivity tools/future of work, SaaS, Fintech, Insuretech, AI, Digital Health.” Portfolio Highlights Some of Altair’s most popular investments include: Miro Deel OpenWeb 2. Pitango Venture Capital As put by their team, “Pitango is home to visionary entrepreneurs and groundbreaking companies from stealth mode to growth. We partner with exceptional founding teams via three parallel funds Pitango First, Pitango Growth and Pitango HealthTech.” Location Pitango is located in Tel Aviv and invests in companies across the globe. Company Stage Pitango VC invests in companies from the earliest stages to growth stages. Preferred industries Pitango invests in multiple sectors and has funds dedicated to HealthTech and Growth stage companies. Related Resource: How Venture Capital is Funding the Future of Healthcare + 7 VC Firms Making Investments Portfolio Highlights Some of Pitango’s most popular investments include: Via Logz.io Tulip 3. Vertex Ventures As put by their team, “We’ve worked with some of the most iconic startups to come out of Israel. Our experience and diverse backgrounds support our founders in their journey to grow their companies and become industry leaders. Vertex Ventures Israel funds are consistently ranked as top performers. We invest cross-verticals, from Seed to B.” Location Vertex Ventures is located in Tel Aviv and invests in companies across Israel. Company Stage Vertex invests in companies from Seed to Series B and beyond. Related Resource: The Understandable Guide to Startup Funding Stages Preferred industries Vertex Ventures is industry agnostic. Portfolio Highlights Some of Vertex Ventures’ most popular investments include: Base Yotpo EasySend 4. Jerusalem Venture Partners As put by their team, “Founded in 1993 under the famed Yozma program by Dr. Erel Margalit, Jerusalem Venture Partners VP has created and invested in over 160 companies in Israel, the US and Europe. JVP’s investment strategy is spearheaded by a deep expertise in identifying opportunities from inception and growing them into global industry leaders. Through our theme-driven focus and strong network of strategic partners, we seek to stay ahead of the latest market trends and address the most relevant market needs.” Location Jerusalem Venture Partners has office locations across Israel. Company Stage JVP is stage agnostic and invests in companies from seed to growth stages. Preferred industries JVP invests across many industries and has a focus on Cyber Security, Big Data, Enterprise Software, and FoodTech. Related Resources: 10 Foodtech Venture Capital Firms Investing in Food Innovation and 15 Cybersecurity VCs You Should Know Portfolio Highlights Some of JVP’s most popular investments include: Dealhub Quali Nanit 5. Grove Ventures As put by their team, “Grove Ventures is a leading early-stage venture capital investment firm with over half-a-billion dollars under management. We partner early with exceptional Israeli entrepreneurs who believe that the Deep Future is now and are ready to build it.” Location Grove Ventures is located in Israel and invest in companies across the globe. Company Stage Grove Ventures is focused on early-stage companies. Preferred industries Grove Ventures is hyperfocused on Deep Future companies. Portfolio Highlights Some of Grove Ventures’ most popular investments include: Rapid Lamigo Navina 6. Viola Ventures As put by their team, “Viola is a multi-strategy investment house with focused, separate investment arms. We partner with companies from inception to growth. Each partnership operates independently with a dedicated investment team, investors, pool of funds, and portfolio companies, but shares access to added-value services, best practices and insights.” Location Viola is located in Tel Aviv and invests in companies across the globe. Company Stage Viola has 5 different funds that invest in companies across many stages. Preferred industries Viola uses their 5 funds to invest in companies across different industries and markets. Related Resource: FinTech Venture Capital Investors to Know Portfolio Highlights Some of Viola Ventures’ most popular investments include: Ridge Grove Addressable 7. Entrée Capital As put by their team, “Entrée Capital was founded in 2010 to provide multi-stage funding to innovative seed, early and growth-stage companies all over the world. Entrée Capital manages over $1.2 billion across nine funds and has invested in over 180 startups.” Location Entree has office locations in New York, London, and Tel Aviv. They invest in companies across the globe. Company Stage Entree invests in companies from Pre-seed to Series C. Preferred industries Entree focuses on a wide variety of different industries. Including everything from Crypto to SaaS to Games & Social. Related Resource: 14 Gaming and Esports Investors You Should Know Portfolio Highlights Some of Entree Capitals’ most popular investments include: Stripe Monday Deliveroo 8. Magma Venture Partners As put by their team, “Magma Venture Partners is a leading Israeli venture capital firm, dedicated to investing in Israel’s Information, Communications and Technology space (‘ICT’), including the software, semiconductor and new media spheres. We seek bright ideas at their earliest stages, and serve as a springboard for our entrepreneurs as they develop and evolve into industry leaders. Our goal is to enable a flow of innovation from the earliest stage all the way through until a company realizes its potential reach.” Location Magma Venture Partners is headquartered in Tel Aviv and focuses on companies across Israel. Company Stage Magma Venture Partners is focused on early-stage companies. Preferred industries As put by their team, “Information, Communications and Technology space (‘ICT’), including the software, semiconductor and new media spheres.” Portfolio Highlights Some of Magma Venture Partners’ most popular investments include: Guesty Waze Trink 9. Cardumen Capital As put by their team, “Our general partners are investors, founders and operators. We have over a decade of experience founding and operating companies and helping entrepreneurs build, scale, and sell tech companies in Israel, Europe and in the United States. Our team is a diverse group of people from different backgrounds and upbringings. We strongly believe that different perspectives lead to better decision-making.” Location Cardumen Capital is located in Israel and invests in companies across Israel, Europe, and the United States. Company Stage Cardumen Capital is focused on companies between Pre-seed and Series A. Preferred industries Cardumen Capital is industry agnostic. Related Resource: 17 Travel & Tourism VC Investors that can Fund Your Startup Portfolio Highlights Check out some of Cardumen Capital’s most popular investments below: Munch Peech Spotlight.ai Join Visible and connect with the right investors for your business 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.

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: A Quick Overview on VC Fund Structure A strong sales and marketing funnel starts by identifying the right leads for your business. The same idea is true for founders looking to find investors for their business — find the right investors for your business. If you’re a founder located in Latin America and would like to find the right investors for your business, check out our list of 7 active investors in the area below: 1. Bossanova Investimentos As put by their team, “Bossanova is the most active VC in Latin America; We invest in startups at the pre-seed stage; B2B or B2B2C companies with scalable and digital business models that are operating and making money.” Location Bossanova Investimentos is located in São Paulo and invests in companies that are headquartered in Brazil. Portfolio Highlights Some of Bossanova’s most popular investments include: FanBase Famefy Scooto Stage Focus Bossanova Investimentos is focused on pre-seed and seed stage companies. They typically invests between BRL 100k and BRL 500k. They also seek out companies that have at least BRL 20k in monthly income. Related Resource: The Understandable Guide to Startup Funding Stages 2. Canary As put by their team, “We believe that the first round is the best one to start a long-term relationship with a founder, especially in a young startup ecosystem like Latin America. We believe in the right money for the right stage of a company. And we are fully focused on being the best first investor. We believe our ecosystem is at a tipping point. The quality of founding teams is already world-class and improving at an accelerating pace, the entrepreneurial mindset is permeating universities and younger generations and our nation’s top talent is founding companies rather than looking for traditional jobs. All over the world technology is changing the way people do business and live their lives. LatAm is no different.” Learn more about Canary by checking out their Visible Connect profile → Location Canary is located in São Paulo and invests in companies across Latam. Portfolio Highlights Some of Canary’s most popular investments include: Alice Clara Trybe Stage Focus As put by their team, “We partner with founders at the first venture capital round, from pre-Power Point to Series A. We’ve invested in rounds as small as USD 250K and as large as USD 15M+. We prefer and typically lead the first round, investing the largest amount of capital and defining the legal terms.” Related Resource: 7 Prominent Venture Capital Firms in Brazil 3. Monashees As put by their team, “monashees is the pioneer venture capital firm in Latin America. It partners with outstanding founders who are revolutionizing large markets. The firm serves entrepreneurs starting with their very first movements, supporting their growth through its expansion funds. With a human-values-first approach, monashees helps founders challenge the status quo and improve people’s lives through technology.” Learn more about Monashees by checking out their Visible Connect profile → Location Monashees is located in São Paulo and invests in companies across Latin America and the globe. Portfolio Highlights Some of Monashee’s most popular investments include: Clara Loggi Nomad Stage Focus Monashees does not publicly state what stage and how much they invest in portfolio companies. 4. Redpoint Eventures As put by the team at Redpoint Eventures, “Our mission is to support Brazilian digital market entrepreneurs on their journey to create fast-growing companies. Together with its partners, prominent U.S.-based firms Redpoint Ventures and e.ventures, Redpoint eventures brings funding, Silicon Valley access and global best practices to promising startups. In addition to serving the companies in its portfolio, the fund’s team contributes to the development of the growing entrepreneurial ecosystem in Brazil.” Learn more about Redpoint Eventures by checking out their Visible Connect profile → Location Redpoint Eventures is located in São Paulo and invests in companies across Brazil. Portfolio Highlights Some of Redpoint Eventures most popular investments include: Pipefy Gympass Cortex Stage Focus Redpoint Eventures does not publicly state what stage companies they typically invest in and what check size they write. 5. Magma Partners As put by the team at Magma Partners, “We’ve backed 125+ startups with $80M+ to help founders solve Latin America’s biggest problems by building scalable, technology businesses in big markets. While we’re best known for fintech, insurtech and marketplaces, we are a generalist fund backing Latin America’s top entrepreneurs. We’d love to be your first investor, but if we missed you at pre-seed, we can invest all the way to Series A.” Learn more about Magma Partners by checking out their Visible Connect profile → Location As put by their team, “We invest most of our capital in Spanish-speaking Latin America and devote a smaller percentage of our capital to early stage Brazil-based companies. We invest in companies that are either based in Latin America, do business in Latin America, or will be expanding to Latin America imminently. We also invest in Latin American immigrants or US Latins who may do business in Latin America in the future, or would like to have some of their team in Latin America.” Portfolio Highlights Some of Magma Partner’s most popular investments include: HelloGuru Bexi Groupraise Stage Focus As put by their team, “We invest $50k to $5M to back founders raising venture capital at pre-seed, seed and series A in Latin America.” 6. Spectra Investments As put by the team at Spectra Investments, “We manage Latin American focused funds, offering sophisticated investors access to multiple strategies, through balanced funds, mitigating costs and risks. Our portfolios are hybrid, investing in theses such as Growth, Buyout, Venture Capital, Distress, Legal Claims, Mining, Search Funds and Special Situations, amongst others in the region.” Location Spectra Investments is headquartered in São Paulo and invests in companies across all of Latin America. Portfolio Highlights Some of Spectra Investment’s most popular investments include: Bratus Capital Oria Monashees Stage Focus Spectra Investments in focused on investing in growth stage companies and different venture capital funds. Related Resource: Private Equity vs Venture Capital: Critical Differences 7. DOMO Invest As put by their team, “DOMO Invest is a leading venture capital firm in Brazil that invests in best-in-class entrepreneurs. We back early-stage consumer-focused technology startups, helping them grow faster and establish themselves in competitive markets. We started from the collective desire of our founding partners to contribute to the success of the next generation of Brazilian entrepreneurs. DOMO’s multi-disciplinary team is supported by its Advisory Board whose members have solid and proven track records in creating, investing, advising, and financing tech startups of all sizes.” Learn more about DOMO Invest by checking out their Visible Connect profile → Location DOMO Invest is located in São Paulo and invetss in companies across Brazil. Portfolio Highlights Some of DOMO Invest’s most popular investments include: Loggi Gympass Hotmart Stage Focus As put by the team at DOMO, “​​We back early-stage consumer-focused technology startups, helping them grow faster and establish themselves in competitive markets.” 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.

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 as a sales and marketing funnel starts by finding the right leads, the same is true for a fundraise. Founders raising venture capital should start by identifying the right investors for their businesses. If you’re a founder located in Brazil and are looking for venture capitalists in your area, check out our list below: Related Resource: 7 Best Venture Capital Firms in Latin America 1. Bossanova Investimentos As put by their team, “Bossanova is the most active VC in Latin America ; We invest in startups at the pre-seed stage; B2B or B2B2C companies with scalable and digital business models that are operating and making money.” Location Bossanova is headquartered in São Paulo and invests in companies across Latin America. Company Stage Bossanova is focused on pre-seed and seed stage companies. They invest between R$100k and R$1.5M. They look for companies with at least monthly income of R$20k Preferred industries Bossanova is focused on B2B or B2B2C companies. Related Resource: 60+ Active Seed Stage SaaS Investors & Fundraising Tips Portfolio Highlights Some of Bossanova’s most popular investments include: FanBase GrowthHackers Nimbly 2. Redpoint Ventures As put by their team, “Redpoint eventures is a venture capital firm based in São Paulo. Our mission is to support Brazilian digital market entrepreneurs on their journey to create fast-growing companies. Together with its partners, prominent U.S.-based firms Redpoint Ventures and e.ventures, Redpoint eventures brings funding, Silicon Valley access and global best practices to promising startups. In addition to serving the companies in its portfolio, the fund’s team contributes to the development of the growing entrepreneurial ecosystem in Brazil.” Location Redpoint eventures is headquartered in São Paulo and invests in companies across Brazil. Company Stage Redpoint eventures does not publicly state what stage companies they invest in. Preferred industries Redpoint eventures does not publicly state what their focused industries are. Portfolio Highlights Some of Redpoint eventures most popular investments include: Gympass Pipefy Bossabox 3. Canary As put by the team at Canary, “We are an operator fund: our partners are technology and investment entrepreneurs that have first-hand experience – and battle scars – from building and scaling products, teams, and organizations. Our approach is simple and supportive of founders.” Location Canary has office locations across Latin America and invests in companies across Latin America. Related Resource: 7 Best Venture Capital Firms in Latin America Company Stage As put by their team, “We’ve invested in rounds as small as USD 250K and as large as USD 15M+. We prefer and typically lead the first round, investing the largest amount of capital and defining the legal terms.” Preferred industries Canary is industry and business model agnostic. Portfolio Highlights Some of Canary’s most popular investments include: Alice Buser Trybe 4. Monashees As put by their team, “monashees is the pioneer venture capital firm in Latin America. It partners with outstanding founders who are revolutionizing large markets. The firm serves entrepreneurs starting with their very first movements, supporting their growth through its expansion funds. With a human-values-first approach, monashees helps founders challenge the status quo and improve people’s lives through technology.” Location Monashees is headquartered in Brazil and invests in companies across Latin America. Company Stage Monashees does not publicly state what stage they focus on and what check size they write. Preferred industries Monashees is focused on investing in companies operating in large markets. Portfolio Highlights Some of Monashees most popular investments include: Clara Jokr Loggi 5. Quona Capital As put by their team, “Quona Capital is a global venture firm focused on inclusive fintech. We invest in startups expanding access to financial services for consumers and growing businesses across India and Southeast Asia, Latin America, Africa and the Middle East. We focus on markets that are massively underserved by the legacy finance infrastructure, where we see the biggest opportunity for transformation into more equitable financial systems.” Location Quona invests in companies across the globe and have offices across the globe. Company Stage Quona is stage agnostic. Preferred industries Quona is focused on fintech companies across the globe. Related Resource: FinTech Venture Capital Investors to Know Portfolio Highlights Some of Quona’s most popular investments include: Yoco Pillow Monkey 6. Valor Capital As put by their team, “Valor was founded in 2011 as the pioneer cross-border venture capital firm bridging the US, Brazilian and international tech communities. We invest in early stage tech companies in Brazil and international companies looking to expand into Brazil and the region. We are stage and sector agnostic. We are full lifecycle investors. We invest in business models that are only possible through the use of technology and, most importantly, we partner with companies that we believe are best positioned to leverage our relationship-capital and cross-border playbook.” Location Valor Capital has office locations in New York City and Brazil. Company Stage Valor Capital does not publicly share the stage of the companies they focus on. Preferred industries Valor Capital is industry agnostic but has a focus on crypto companies. Related Resource: 10 VC Firms Investing in Web3 Companies Portfolio Highlights Some of Valor Capital’s most popular investments include: Bitso BlockFi Coinbase 7. Astellas Venture Management As put by the team at Astella, “We support missionary founders building the future by leveraging the possibilities around consumer internet, software-as-a-service, and marketplaces We see ourselves as mentors. Our team brings a diverse, complementary and cohesive background around key growth disciplines We understand founders have two main paths to exponential growth: sheer brute force or intelligence. We believe that the right mix of knowledge and capital provides the best route for fast and efficient growth.” Location Astella Investimentos is headquartered in Brazil and invests in companies in Brazil. Company Stage Astella Investimentos is focused on early-stage companies. Preferred industries Astella Investimentos is focused on consumer internet, SaaS, and marketplace companies. Portfolio Highlights Some of Astella’s most popular investments include: Birdie BossaBox Zygo Elevate your investor outreach 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.

Impact investments can be made across many different sectors and asset classes but target startups whose mission is to produce environmental or social benefits. These industries can include electric cars, renewable energy, sustainable agriculture, or affordable and accessible housing, healthcare, and education. Impact investing aims to target areas that are often missed by sustainability-themed approaches in an effort to tackle global problems as well as go after the underserved in the global economy. For each investment target, an SDG might invest in a range of companies that support that. For example, if the target is climate change their investments might go after green buildings and renewable energy. There is a growing focus of funds understanding the importance of embedding ESG practices into their investment thesis. Robeco defines ESG funds as “portfolios of equities and/or bonds for which environmental, social and governance factors have been integrated into the investment process. This means the equities and bonds contained in the fund have passed stringent tests over how sustainable the company or government is regarding its ESG criteria.” Mercer breaks down the following when it comes to key elements in investing and implementation. “Key elements of impact investing: Intentionality: contributing to positive social or environmental outcomes Measurability: the intended social or environmental impact needs to be measured and reported on clearly and reliably Additionality: pursue social or environmental benefits that would not have otherwise occurred without the investment. How to implement impact investing Investors typically approach an impact investment allocation with three key issues in mind: 1) intention and themes to target; 2) portfolio allocation and implementation options; 3) how outcomes will be measured and reported to different stakeholders. There are many ways that themes or topics can be identified and prioritized by investors. We have identified those that we believe are key from an impact investment perspective, in both environmental and social categories.” Events SOCAP is the largest and most diverse impact investing community in the world The GIIN Investor Forum is designed to advance and scale the impact investing market by bringing all the crucial elements of the world’s impact ecosystem together in one place. Social enterprise and impact investing events in 202Social enterprise and impact investing events in 202 Investors and Accelerators in the Space Impact investments are made by both institutional and individual investors such as private foundations, NGOs, individual investors, fund managers, family offices, as well as religious and financial institutions/ banks. Here are our top pics from our Connect Investor Database. Buoyant Ventures Location: Chicago, Illinois, United States Thesis: Digital Solutions for Climate, we look to make investments that adapt to and mitigate from climate change at the speed and scale required. Investment Stages: Seed, Series A Recent Investments: Raptor Maps SupplyShift FloodFlash Better Ventures Location: Oakland, California, United States About: Better Ventures backs mission-driven founders leveraging breakthrough innovations in science and technology to build a more sustainable and equitable economy in which both people and planet thrive. Thesis: We back founders on a mission to build a better world. Investment Stages: Pre-Seed, Seed, Series A, Series B Recent Investments: SMBX 54gene agathos Obvious Ventures Location: San Francisco, California, United States About: Obvious Ventures brings experience, capital, and focus to startups combining profit and purpose for a better world. Thesis: Let’s reimagine trillion-dollar industries together. Investment Stages: Seed, Series A, Series B Recent Investments: Anagenex MycoMedica Life Sciences Tandym Bethnal Green Ventures Location: London, England, United Kingdom About: Europe’s leading early-stage tech for good VC. Thesis: We invest in ambitious and diverse founders using technology to create positive impact at scale. Investment Stages: Pre-Seed, Seed Recent Investments: aparito Chatterbox Commonplace Blackhorn Ventures Location: Denver, Colorado, United States About: Blackhorn Ventures is an early stage venture firm that invests in capital-efficient companies redefining resource use, enabling the decarbonization of the toughest to transition sectors in our economy (Transportation, the Built Environment, Supply Chain, and Energy). Thesis:Blackhorn Ventures invests in world-class founders building digital infrastructure to redefine industrial resource efficiency. Investment Stages: Seed, Series A Recent Investments: CoFi Ecoworks.tech Iso.io Blue Bear Capital Location: San Rafael, California, United States About: Blue Bear Capital is a VC investor supporting companies that apply data-driven technologies to the energy supply chain. Investment Stages: Seed, Series A, Series B Recent Investments: Raptor Maps Copper Labs First Resonance Braemar Energy Ventures Location: New York, New York, United States About: Braemar Energy Ventures was formed in 2002 to create a venture capital firm with that expertise. Focused exclusively on technology and communications opportunities in the energy sector, Braemar Energy Ventures has both the industry and operating knowledge to select promising young companies, bring them into the larger energy world and guide them to reach their full potential. Investment Stages: Pre-Seed, Seed, Series A, Series B, Growth Recent Investments: Utilidata LO3 Energy Aledia Cultivian Sandbox Location: Chicago, Illinois, United States About: Cultivian Sandbox is a venture capital firm focused on building next-generation disruptive agriculture and food technology companies Investment Stages: Pre-Seed, Seed, Series A, Series B, Series C, Growth Recent Investments: Full Harvest Leaf Cooks Venture Core Innovation Capital Location: San Francisco, California, United States About: Core Innovation Capital is a venture capital firm investing in companies committed to empowering small businesses and everyday Americans. Investment Stages: Seed, Series A, Series B, Growth Recent Investments: Arrived Column Tax Ness CRE Venture Capital Location: New York, United States About: CRE Venture Capital finances and partners with entrepreneurs in technology-enabled startups in Sub-Saharan Africa. Investment Stages: Seed, Pre-Seed, Series A Recent Investments: Stitch Sabi Carry1st Resources IRIS+ is a great resource for developing impact measurement frameworks The GIIN’s Investors’ Council is a leadership group for active large scale impact investors. 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. 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.

In the dynamic world of business partnerships, understanding the nuanced differences between general partners (GPs) and limited partners (LPs) is crucial for founders. This article will dive into the roles, liabilities, control, and profit-sharing mechanisms that distinguish GPs from LPs, offering a comprehensive guide for those navigating the complexities of business partnerships. What is a General Partnership? A general partnership is an unincorporated business entity formed by two or more owners sharing business responsibilities. This structure is marked by its simplicity in setup and tax filing, but it comes with the caveat of unlimited personal liability for each partner. This means that each partner's personal assets are at risk for the business's debts and obligations​​​​. The Role of a General Partner Shifting the focus to the crucial role of a general partner, we enter the realm of leadership and active engagement in the partnership. General partners are at the forefront, steering the business through decision-making, financial oversight, and risk management. Their responsibilities are central to the partnership's operation, balancing the drive for growth with the interests of all partners. Management and Decision Making GPs play a pivotal role in the management and success of partnerships or investment funds, with their involvement being integral to both day-to-day operations and long-term strategic direction. Here's how GPs are actively involved: Management and Operations: GPs are deeply involved in the daily management of the partnership. This includes overseeing operations, managing staff, and ensuring that the partnership's activities align with its goals and objectives. Their hands-on approach ensures that operations run smoothly and efficiently​​. Decision Making: GPs have the authority to make key decisions that affect the partnership. This encompasses a wide range of areas from financial management, investment choices, to strategic planning. They assess various opportunities and risks to make informed decisions that will benefit the partnership over the long term​​​​. Investments and Strategy: GPs are responsible for the partnership's investment strategy. This involves identifying, evaluating, and executing investment opportunities as well as managing and divesting assets when necessary. Their goal is to maximize returns for the partnership while managing risk. This requires a deep understanding of the market, the ability to forecast trends, and the insight to act on these predictions in a timely manner​​​​. Alignment of Interests: By investing their own capital and making significant management decisions, GPs align their interests with those of the LPs. This ensures that their strategies and decisions are made with the best interests of the partnership in mind, fostering trust and commitment among all parties involved​​. Risk Management: GPs are also tasked with managing the partnership's exposure to risk. This includes financial risk, operational risk, and investment risk. They implement strategies to mitigate these risks, ensuring the partnership's stability and sustainability. This involves regular assessment of internal and external factors that could impact the partnership and adjusting strategies accordingly​​​​. Capital Contribution GPs typically invest a smaller portion of the total capital in a partnership or fund compared to LPs, yet the value of their investment is profoundly significant. This financial commitment aligns the GPs' interests with those of the LPs, ensuring a mutual focus on the partnership's success. By having "skin in the game," GPs demonstrate confidence in the partnership's strategies and decisions, reinforcing trust among LPs. This alignment not only motivates prudent risk management but also bolsters the partnership's stability and potential for growth, underscoring the critical role of GP investment beyond its face value​​​​. Liability and Risk Management GPs face unlimited liability, directly linking their personal assets to the partnership's financial obligations. This significant responsibility demands vigilant risk management and strict adherence to legal and regulatory standards to safeguard both the partnership and their personal finances. GPs must proactively mitigate risks and ensure compliance across all aspects of the partnership, a task that often requires expert consultation due to the complex nature of legal requirements​​​​. Fundraising and Investor Relations GPs play a critical role in securing the financial foundation of a fund through capital raising activities. Their responsibilities extend beyond merely attracting investments; GPs are deeply involved in fostering and maintaining relationships with both current and potential investors. This includes regular communication to keep investors informed about the fund's performance and strategic direction. The process of raising capital involves presenting the fund's value proposition to prospective investors, outlining potential returns, and articulating the strategic advantages of investing in the fund. GPs leverage their networks and industry knowledge to identify and engage with potential investors, employing persuasive presentations and detailed financial models to showcase the fund's potential. Maintaining investor relations is another key aspect of a GP's role. This involves providing timely updates and comprehensive reports on the fund's performance, including achievements, challenges, and strategic adjustments. Regular communication, such as newsletters, investor meetings, and performance calls, ensures transparency and keeps investors aligned with the fund's progress and long-term goals. Portfolio Management In the context of investment funds, GPs are pivotal in steering the fund's investment strategy, involving a multi-stage process of identifying, vetting, and managing investment opportunities. Initially, GPs undertake thorough market research and analysis to identify promising investment prospects, evaluating each for alignment with the fund's investment criteria and potential for returns. The vetting process includes comprehensive due diligence, where GPs assess the financial health, business model, market position, and growth potential of potential investments. This meticulous examination is critical to minimizing risks and ensuring that only the most viable opportunities are pursued. Once an opportunity is deemed suitable, GPs lead the deal execution, negotiating terms and finalizing investments. This phase requires a blend of financial acumen, negotiation skills, and strategic foresight to secure favorable terms for the fund. After the investment is made, GPs take on the ongoing management of portfolio companies. This involves active engagement with the management teams of these companies, providing strategic guidance, operational support, and sometimes, direct involvement in governance through board representation. The goal is to enhance value and ensure the company's growth trajectory aligns with the fund's investment objectives, ultimately leading to successful exits that generate returns for the fund's investors. What is a Limited Partnership? A Limited Partnership (LP) is a specific type of partnership that is distinguished by having one or more GPs who manage the business and are personally liable for partnership debts, alongside one or more LPs who contribute capital and share in the profits but have limited liability and are not involved in day-to-day management. This structure allows LPs to invest in the partnership without the risk of being held personally liable for the partnership's debts beyond their investment in the partnership. The general partner's role involves managing the partnership's operations, making key business decisions, and assuming full personal liability for the partnership's obligations. In contrast, limited partners act as passive investors, contributing capital and receiving a share of the profits but typically not engaging in the management or operational decisions of the partnership. This arrangement offers the benefit of pass-through taxation, similar to a general partnership, where the partnership itself is not taxed, but profits and losses are passed through to the partners to be reported on their individual tax returns. Limited Partnerships are commonly used for businesses that require investment without wanting to involve investors in daily management or for family estate planning to protect assets and manage tax liabilities. The formation of an LP requires compliance with specific state laws, including filing the necessary documents with the relevant state authority, usually the Secretary of State. The details of the partnership, such as the division of profits, roles of the partners, and operational procedures, are typically outlined in a partnership agreement. Related resources: 25 Limited Partners Backing Venture Capital Funds + What They Look For What Is a Limited Partnership and How Does It Work? The Role of a Limited Partner Unlike their general counterparts, limited partners contribute financially without immersing themselves in the day-to-day operational decisions of the partnership. This unique position allows them to invest and share in the profits while their liability is capped at their investment amount. As we delve into the role of a limited partner, we uncover the nuances of their involvement, the passive yet crucial contribution to the partnership's capital, and the protective bounds of their liability, setting the stage for understanding the symbiotic relationship between general and limited partners within the framework of a Limited Partnership. Capital Provision LPs are often passive investors, meaning they invest their money but do not take part in the day-to-day management or decision-making processes of the business. This category of investors typically includes institutional entities like pension funds, endowments, and insurance companies, as well as high-net-worth individuals who seek investment opportunities that do not require their active involvement in operations. The capital provided by LPs is vital for the fund's ability to pursue its investment strategy, whether it involves acquiring assets, funding new ventures, or expanding business operations. By contributing financially, LPs enable the partnership to leverage additional resources while limiting their personal risk to the amount they have invested. This arrangement allows LPs to benefit from the potential upside of the partnership's success, such as receiving a proportionate share of the profits, without the burden of unlimited liability or the complexities of daily management responsibilities​​​​​​. Limited Involvement in Management LPs play a distinct role within a partnership, primarily serving as financial contributors rather than being involved in the daily management or operational decisions. Their involvement is strategically financial, allowing the partnership to leverage their investment to fund projects, acquisitions, or growth initiatives without requiring their input on operational matters. The structure of a Limited Partnership is designed to benefit from the capital that LPs inject, while the GPs retain full control over the business decisions and management. This setup provides a clear division of responsibilities: GPs handle the operational aspects and decision-making processes, ensuring the business's strategic direction aligns with its goals, while LPs contribute financially, relying on the GPs' expertise to maximize the return on their investment. Limited Liability LPs liability is restricted solely to the amount of capital they have invested in the fund or partnership. This means that LPs are not personally responsible for any debts or obligations that exceed their investment. In essence, should the partnership incur debts or face financial challenges, the personal assets of LPs are shielded from creditors, ensuring that their maximum potential loss does not surpass the capital they have contributed. This protective measure is a defining feature of the LP structure, making it an attractive investment vehicle for individuals and institutions seeking exposure to the potential rewards of partnership investments without the risk of unlimited personal liability. It enables investors to participate in potentially lucrative ventures with the assurance that their risk is capped, providing a clear boundary between their investment and personal financial health. This limited liability encourages investment by reducing the financial risk to LPs, thereby facilitating the pooling of capital for the partnership’s activities​​​​​​. Monitoring Investment Performance Limited Partners (LPs) maintain oversight of their investments in a partnership through a structured approach to information sharing, facilitated primarily by General Partners (GPs). GPs are responsible for providing regular reports and updates that detail the partnership's financial performance, operational progress, and strategic developments. These communications are critical for LPs, as they offer insights into how their investment is being managed and its corresponding performance. The reports and updates typically include financial statements, performance metrics, market analysis, and updates on significant events or decisions. This transparency allows LPs to assess the health and trajectory of their investment, ensuring that their financial contributions are yielding expected results or identifying areas of concern that may need addressing. Beyond passive monitoring, LPs often play a role in key decision-making processes within the partnership. While they do not involve themselves in daily operations, LPs may have the right to vote on or approve major decisions that could impact the partnership's direction or financial status. This could include changes to the partnership agreement, substantial financial transactions, or decisions about the sale or acquisition of assets. Their involvement in these critical decisions ensures that their interests are considered in the partnership's strategic choices, aligning the partnership's operations with the expectations and goals of its investors. Receiving Returns on Investment LPs in a fund or partnership receive returns on their investment primarily based on the entity's financial performance. These returns are typically proportional to the size of their capital contribution, reflecting the principle that the greater the investment, the larger the share of the profits should be. The mechanism for distributing returns is designed to align with the partnership's success—when the partnership prospers, LPs benefit from higher returns, and conversely, their returns may diminish if the partnership faces financial difficulties. The distribution of profits to LPs often occurs after the partnership has achieved certain financial thresholds, ensuring that the operational needs and any preferential returns agreed upon for the GPs are met first. This structure incentivizes LPs to invest substantial capital, as their potential for financial gain is directly tied to the partnership's success, while also aligning their interests with the GPs, who are tasked with managing the partnership towards profitability. Differences Between General Partners and Limited Partners Having delved into the distinct roles and responsibilities of GPs and LPs within partnerships, it becomes evident that their contributions, while both crucial, diverge significantly in nature and scope. GPs are deeply entrenched in the day-to-day operations and bear unlimited liability, aligning their actions closely with the partnership's success. In contrast, LPs contribute capital and share in the profits while enjoying the protection of limited liability, remaining largely removed from operational decisions. These differences affect their involvement, financial risks, and the rewards they reap from the partnership. Management and Control GPs are crucial to the daily management and decision-making in a partnership, directly handling operations and strategic planning due to their unlimited liability. In contrast, Limited Partners LPs primarily offer financial investment, staying out of management to limit their risk exposure to their capital contribution. Liability GPs face unlimited personal liability, meaning that if the partnership incurs debts or legal claims that exceed its assets, GPs' personal assets can be used to fulfill these obligations. This unlimited liability reflects the GPs' active involvement in the management and operations of the partnership, holding them directly accountable for its financial health​​​​. In contrast, LPs enjoy a layer of protection from personal liability beyond their investment in the partnership. Their liability is limited to the amount of capital they have contributed, shielding their personal assets from claims against the partnership. This limited liability is a result of their passive role; LPs do not participate in the day-to-day management or decision-making processes of the partnership. Consequently, they are not held personally responsible for its debts or liabilities beyond their initial investment. Profit Sharing The distribution of profits and losses in a partnership typically aligns with each partner's investment and their role, as detailed in the partnership agreement. GPs, due to their active management and unlimited liability, might receive a share for their operational role plus a portion based on their investment. LPs, with limited liability, earn returns proportional to their investment, reflecting their financial contribution without direct operational involvement. The agreement also outlines how losses are shared, often paralleling profit distribution. This ensures a fair allocation based on each partner's stake and contribution to the partnership's success​​​​​​. Information Rights General Partners, who are actively involved in the day-to-day management of the partnership, have unrestricted access to all financial and operational data. This comprehensive access is necessary for GPs to make informed decisions, manage the partnership effectively, and fulfill their management duties. Their role requires a deep understanding of the partnership's financial health, operational challenges, and strategic opportunities, necessitating real-time access to all pertinent information. In contrast, Limited Partners typically have more restricted access to information. Their role as passive investors means they are not involved in daily management decisions, which is mirrored in their rights to information. LPs usually receive periodic reports that summarize the partnership's financial performance, significant operational updates, and strategic decisions. These reports are designed to provide LPs with a clear overview of their investment's performance without overwhelming them with the day-to-day details necessary for operational management. However, the extent of information rights for LPs can vary based on the partnership agreement. Some agreements may grant LPs rights to request additional information or detailed reports under specific circumstances, offering a mechanism for LPs to obtain further insights if they have concerns about the partnership's management or performance. Exit Strategies For General Partners, leaving can be more complex due to their integral role in management and operations. Exiting typically requires finding a replacement who can take over their responsibilities, which may necessitate approval from other partners, depending on the partnership agreement. Financial implications for GPs can include settling accounts related to their management activities and any personal liabilities tied to the partnership's debts. Limited Partners, given their passive investment role, usually have a more straightforward exit process. Their departure primarily involves the sale or transfer of their partnership interest, which can be subject to terms outlined in the partnership agreement, such as right of first refusal for other partners. Financially, LPs need to consider the market value of their investment and any potential capital gains tax implications. Both GPs and LPs must consider the partnership agreement's terms, which may specify conditions for exit, including notice periods, valuation methods for the partnership interest, and any restrictions on transfer. Additionally, the timing of the exit can significantly impact the financial outcome, with market conditions and the partnership’s performance playing crucial roles. Other Types of Partnerships While we've explored the traditional roles of general and limited partners in business partnerships, the realm of collaborative business ventures extends beyond these conventional structures. Each partnership type offers unique benefits, catering to specific business needs, risk appetites, and strategic goals. Other prevalent forms of partnerships that exist are: Joint Venture Partnerships: These are formed between two or more parties for a specific project or a limited period. Joint ventures allow entities to pool resources for a common goal, sharing profits, losses, and control, while still maintaining their separate legal identities. This structure is ideal for projects that require diverse skills, resources, or market access that a single entity cannot provide on its own. Limited Liability Partnerships (LLPs): Merging the features of partnerships and corporations, LLPs offer partners the operational flexibility of a partnership while providing a shield against personal liability for the actions of other partners. This is particularly attractive for professionals, such as lawyers, accountants, and architects, allowing them to benefit from the partnership's profits without risking their personal assets for the liabilities or professional misconduct of their partners. Partner With Visible for Expert Guidance and Access to High-Growth Ventures In this article, we've navigated the complexities of business partnerships, highlighting the distinct roles, liabilities, and contributions of GPs and LPs. Understanding these differences is crucial to forge successful partnerships, whether through traditional setups or alternative structures like Joint Ventures and LLPs. Each partnership model offers unique benefits and challenges, tailored to various business needs and goals. As you embark on or continue your entrepreneurial journey, aligning with the right partners and structure is key to growth and success. If you’ve read this post and determined that venture capital is a good fit for your company, let us help. Raise capital, update investors and engage your team from a single platform. Try Visible free for 14 days. Related resource: A Quick Overview on VC Fund Structure

What is an Investor Update? An investor update is a document that includes recent wins and losses, financials, team updates, customer wins, and core metrics. They are typically shared via email but can also be shared via PDF, deck, or link. For many startup founders, investor updates are shared every month but can also be shared on a quarterly (or more frequent) basis. Learn more about why and how to create investor updates for your business below: Why Send Investor Updates? Step into the shoes of your investors and it will help understand the importance of investor updates. Put simply, an investor’s (venture capitalist) job is to deploy limited partners’ capital by investing in startups, generate excess returns, and pay back their limited partners with the hopes of doing it again. This means that an investor’s success hinges on the success of their portfolio company. Put simply, your investors need you to succeed. Your investors likely have other investments and can’t be expected to know exactly where to help each company. In a crowded space building, strong relationships centered on trust and transparency is an easy way to stand out amongst other startups. By sending regular investor updates you can stay top of mind for your investors and tap into their knowledge, resources, and capital to continue to grow your business. Below you will find our guide to help you write the perfect investor update by understanding what metrics and data to share, properly asking for help, sharing big wins and losses, and raising additional capital. We’ve also included 7 of our favorite investor update templates. Related resource: What is a Capital Call? Essential Communication We believe that regular communication with investors and important stakeholders is key to a startup’s success. If your investors don’t know what’s going on in your business, they don’t know how to help. Building a reporting cadence with your investors is a great way to promote transparency and build a relationship focused on trust. Related Reading: Should You Send Investor Updates? Follow-On Funding One of the biggest reasons to report to your investors is the increased likelihood of follow-on funding. In our own research, we have found that companies that regularly communicate with their investors are twice as likely to raise follow-up funding. Try Visible to find investors, track your raise, share your deck, and update investors. Give it a free try for 14 days here. Networking Opportunity Generally speaking, investors' networks often have had experience as an operator and investors. Tapping into their network can be an easy way to find introductions to investors, partners, potential hires, and mentors. Getting an investor to go to bat for you will likely carry a bit more weight. As Tomasz Tunguz, VC at Redpoint Ventures, states; “Investors network frequently, work together, and have long-term relationships with each other so a referral should go a long way.” Finding Talent In hand with tapping into their network, investors are a great resource when it comes to hiring top talent. Between their other portfolio companies and previous experience most investors likely know a number of solid candidates to fill a role. If they don’t have someone in mind for the job, they can at least help talk you through the different candidates you are weighing for an open position. Knowledge and Experience Between their own experience and other portfolio companies, investors have seen just about anything. If you have an operational or tactical question investors are a great resource and can lend experience and knowledge. Related Resources: Our 15 Favorite Newsletters for Startup Founders How to Write the Perfect Investment Memo 3 Tips for Cold Emailing Potential Investors + Outreach Email Template Accountability & Reflection One of the often overlooked benefits of sending monthly investor updates is the reflection and accountability it offers founders. Investor updates can be a great forcing function for founders to look back at the previous month or quarter and better understand what is and is not working for their business. Related Resource: Investor Relationship Management 101: How to Manage Your Startups Interactions with Investors Tips For Writing Investor Updates Investor updates can be a tricky balance between informing investors and keeping things succinct and digestible. Most things boil down to keeping your updates consistent and regular. Keep the Cadence Consistent If you commit to sending a monthly update, you'll want to make sure you stick to sending an investor update every month. Skipping an update when times are tough can be a negative signal to investors. Keep Metrics the Same Make sure to keep the metrics you are tracking stay the same from month to month. For example, if you are calculating net new MRR using a certain formula, keep that consistent from month to month. Stick to a Format When creating an update, sticking to a regular format or template is a great way to help get the ball rolling every month. If you're not sure where to get started, we studied our data to understand the most popular components included in Visible Updates, check it out below: 81% of Updates include “Highlights” 47% of Updates include a “Team” section 42% of Updates include “Product Launches” 42% of Updates include a “KPIs” section 39% of Updates include a “Fundraising” section Investor Update Templates: Examples For Your Next Update Sending your first investor update can be a daunting task. We believe that the best place to learn is from someone who has been there before. Luckily, countless founders and investors have shared their templates and best practices for sending investor updates. We suggest starting with a template you like and tweaking it to your needs (more on this later). Once you’ve found your format, it is all about making sure you keep tabs on the data and context so you are not scrambling when it is time to send. A couple of small steps when sending your first Update: Gather your data — As you should be sharing other a few metrics with investors, it is important to keep tabs here. These should be vital to your business and something that you have on hand at all times. Review the month — A perk of sending an investor update is the ability to look back at the previous month. Think about any major highlights, lowlights, areas you need help, so you can start to craft your Update. Add context — Sharing your data without context can be dangerous. Do your best to explain any metric movements. Send it — Getting your update sent out a consistent basis is a win. If you’re looking to get an idea of when founders using Visible send their Updates, check out our post, “Most Popular Times to Send Your Investor Update.” 1. Techstars Minimum Viable Update In the “Minimum Viable Investor Update”, Jens Lapinski, Former Managing Director of Techstars METRO, lays out 3 items that he finds most useful in his portfolio early-stage company monthly updates. 2. Founder Collective “Fill-in-the-Blank” Investor Update Email Template An investor Update template for busy founders put together by the team at Founder Collective. Simply fill out the bolded sections and have your investor Updates out the door in no time. 3. Kima Ventures Investor Update Template An Update template put together by Jean and the team at Kima. Quickly fill in the quantitative and qualitative data Kima finds most useful. 4. GitLab Investor Investor Update Email Template A 6 part template put together by the team at GitLab. Built for investors to quickly read and locate the information that is most relevant to them. 5. Y Combinator Investor Update Template An investor update template from Aaron Harris of Y Combinator. Aaron recommends highlighting repeatable key performance indicators (KPIs) and major asks for your investors. 6. Shoelace: Investor Update Email Template A template based off of Reza Khadjavi’s, Founder & CEO of Shoelace, investor update email used to wow investors. 7. The Visible “Standard” Investor Update Email Template Our Standard Monthly Investor Update template put together from best practices and tips from Visible users. For more ideas, check out our investor update template library here. Related Reading: 4 Items to Include in Your Next Investor Update (If You Want to Drive Engagement) 8. Bread & Butter Ventures Update Template Bread & Butter Ventures is an early-stage VC firm based in Minnesota investing globally while leveraging their state and region’s unparalleled access to strong corporate connections, commercial opportunities, and industry expertise for the benefit of our teams. Learn more about what Brett Brohl of Bread & Butter Ventures likes to see in an Update below: Sharing Metrics and Data Determining what metrics and key performance indicators (KPIs) to share with your investors can be tricky. There are a slew of different key metrics and different investors may have their eyes on different things. Changing metric names or what you are reporting can be an easy way to break trust with investors. At the end of the day, it is most important that you share the same metrics from month to month. And as we’ve discussed before, it is okay to share bad months! We suggest sharing a handful of key performance indicators (KPIs) with your investors. Depending on your relationship, some may only want to see 3 metrics while others may want to see 10. Talk with your investors and discuss what types of key metrics they’d like to see. A couple of examples are churn rate, number of active users, monthly recurring revenue (MRR), burn rate, and more. Related reading: Startup Metrics You Need to Monitor Every company has missed the mark and any investor is aware that this happens. Building a company is hard! With that being said, we do have a few areas where investors would expect some data: Revenue Being able to generate revenue is essential to a business. However, you determine to measure revenue should be kept consistent from month to month. For example, don’t share bookings one month and revenue the next. For SaaS companies, including your monthly recurring revenue (MRR) and the movements are always good to include as well. Cash Flow Cash is king. Cash is the lifeblood of your business and investors expect some insight into how their capital is being managed and used. This is also a great way for you as a founder to stay accountable and on top of your spending as you continue to grow your business. Burn Rate As we mentioned above, cash is king. By tracking and reporting your burn rate, you will be able to avoid surprises with investors. A common mistake we see founders make is surprising their investors when their cash balance is low and months to 0 is nearing. Sharing your burn rate is an easy way to build trust with your investors and give them a better idea of when you’ll need to raise a new round. Margins Generating solid margins is a must for any successful business. Except the “gig economy,” Frank Mastronuzzi of Greenough Consulting Group suggest that every business should have at least a 55% margin. While likely more important during a fundraise, sharing your margins will help investors evaluate your COGS and acquisition costs. Number of Active Users Depending on your company goals and KPIs, the number of active users could be valuable to understanding growth. Churn Rate Being able to keep your burn rate under control is an easy way to grow your business. In the early days, some investors may want to keep close tabs on burn rates to understand what part of your funnel may be lacking. Customer Acquisition Costs Being able to efficiently acquire and expand customers is a surefire way to grow. Without a sustainable way to acquire new customers, a business will struggle to grow or even exist. Related Reading: Customer Acquisition Cost (CAC): A Critical Metrics for Founders Sharing Wins and Losses One of the most exciting aspects of being a founder is sharing and celebrating your victories. As we all know, with every victory comes plenty of losses. Investors are keyed in on your success so it is important to stress both wins and losses equally. Sharing Wins/Highlights With Investors Sharing your company’s accomplishments is generally pretty straightforward. Share why and how you accomplished your goal and carry on. Investors generally won’t be able to move the needle for your wins but is best to keep them informed so they can signal to their network of your successes. Most important is to call out individual contributors when it comes to sharing major accomplishments. All employees like to be recognized for their contributions and there is no greater place to do so than in front of your outside stakeholders. Along the lines of sharing individual kudos, it is also a great time to highlight new hires. A shout-out to new hires will make offer them a warm welcome and the chance to open up to investors. Sharing Losses/Lowlights With Investors The most dreaded and arguably the most important aspect of an investor update; sharing losses. Startups are hard and everyone involved with the process knows this. It is vital that you key your investors into any troubles you are facing and why you are facing them. We find it best to layout the lowlight and offer a solution to improve this moving forward (If you do not have a solution read on to the “Asking for Help” section below). Generally speaking, nothing is ever as good or as bad as it seems. Sharing bad news is an easy way to strengthen your relationship with investors and they know you’ll be open and honest with them moving forward. Most importantly, this gives your investors an opportunity to step in and help to keep you moving in the right direction. Related Reading: How to Deliver Bad News to Investors Asking Investors for Help Last but certainly not least is asking your investors for help. While every section mentioned above lends itself to asking questions, it is most important to lay out actionable questions where you believe your investors can help. By laying out a pointed list of areas you could use help, you can easily tap into your investors’ network, resources, experiences, and capital. A couple of key areas we see founders have the most success: Related Resource: Navigating Investor Feedback: A Guide to Constructive Responses Closing Deals From our article, “You Should be Asking Your Investors for Help. Here’s How.” “At its core, building a VC-backed business is about generating revenue. The biggest value add for a business? Closing more deals. Your investors are in the “deal-making” business and likely have a knack for closing deals. Use your investor’s professional networks to make an intro, set a meeting, or bring in the necessary backup to close a large deal. If you see your investor has a specific connection you’re looking for, don’t beat around the bush. Ask the investor for the exact intro you’re looking for and tell them how they can be of most value.” Help With Hiring Talent is the resource every company is in competition for on a daily basis. Any tool or resource you can use to find top talent for your business is worth leveraging. Investors generally happen to help fill an open role and often have an extensive network to do so. Be specific as possible about the role, as well as items like the experience level required, and target compensation to make it low-maintenance for your investors. Pro tip: Include a direct link to a LinkedIn search that fits the criteria of the person you’d like to hire to make it easy as possible for investors. Fundraising One of the main reasons to send investors monthly updates is the increased likelihood of raising follow on funding. If you have properly communicated with investors, chances are they will be more enthusiastic to invest in your next round. We have found that companies that regularly send investor updates double their chances of raising follow on funding. When it comes down to it and an investor has to make a decision between 2 investments; 1 that has been communicating and 1 that has not been communicating. It is easy to go with the one that has been transparent and has made an effort to build a relationship. Even if your investors are not interested in committing follow-on capital, they may be able to introduce you to other investors they know. Investors know other investors. Venture capital is a tight-knit community and one positive recommendation can make waves. Related Resource: 9 Tips for Effective Investor Networking Pro tip: Include a light version of your pitch deck that investors can circulate with investors they can make an intro to. Recommended Reading: How to Write the Perfect Investment Memo Investor Update Template Real Life Example If you’ve browsed through our investor update template, you’ve probably noticed they share a lot of similarities. Most of the Updates include the sections listed above. Of course, every business is different. The size, stage, and relationship with your investors will impact your Update template. In order to help you best write an Update, let’s use a real-life example. Let’s say we are a seed stage SaaS company that has recently raised $1M and we are starting to scale revenue: The Intro First things first, we need to write an introduction. This can be as personalized or informal as you’d like. We suggest something like the following: “Hey Investor Name — Hope all is well! I can’t believe August is already in the books. We had a great month that we’ll dig into below. As always, feel free to reply back to this email with any questions or give me a call at 123.456.7890.” Highlights We suggest starting with highlights. This will set the tone for the Update and give investors a quick rundown of what is going well for your business. This should include things like new hires, product updates, and growth (always try to quantify if you can!). Here is an example of some company highlights: We just hired person X to head up our sales team. They bring 10+ years of experience in the space and are going to be a great fit. You can connect with them on LinkedIn here. We have finally gotten New Product Y out of beta and into the hands of our users. Early signs show a big opportunity. We’ve increased usage by 50% week over week and have already exceeded our quarterly goal of Y users. Our sales team is on fire! We’ve closed our largest 2 clients to date — Big Name A and Big Name B. Both are great logos and are our largest contracts to date. Lowlights Sharing lowlights is never. However, it is a crucial part of building trust with investors so they can help you overcome pain points. Including steps for how you plan to fix the problem is always appreciated. Check out an example below: We have been struggling to find a customer success leader. We’ve opened up our search to new job boards and are offering a bonus to anyone who refers a new hire. If you know anyone that fits these parameters, please send them our way. New trials have been lagging behind pace. In order to help get this back on track, we are bringing in an SEO specialist to help us increase website traffic and website-to-trial conversion. Asks Ask are potentially the most beneficial aspect on an investor update. As you are requesting help from your investors, be as pointed and direct as possible to make it easier on them. Here are some examples: Here is our target list of investors for our Series A round and our most up to date fundraising deck. We’re looking for introductions to any of the investors listed in the ‘Research’ stage. We’re looking for introductions to candidates for this [specific job title] in the [specific industry]. Ideally, this person would work at a company with at least X employees and control his own budget. Do you know someone I should meet in [specific city]? I’ll be traveling there next month and am trying to fill my calendar. Metrics As we mentioned above determining what metrics to share is up to you and your investors. For our example, we’ll focus on a couple of key metrics every company should be tracking. Here is an example of how you might present that data: KPI 1 As we mentioned earlier, revenue has been cruising this month. It is our best month to date and we’ve closed our largest customers. KPI 2 As you know, our team has been rallied around improving our True North KPI. Our recent product pushes and GTM campaigns have really paid off as shown above. KPI 3 I feel great about our cash position. We have 18+ months of runway so I can stay focused on building the business and don’t have any immediate need to raise capital. Try Ranking Your Investors Just as investors are comparing you to their other investments don’t be afraid to rank your investors relative to their peers. As Brock Benefiel, business author writes, “Ranking investors can be an intimidating idea, but when done right can provide a useful way for founders to spur increased engagement from their investors and better illustrate their additional needs from the board. To handle it in the most tactful manner, focus less on creating a zero-sum, Game of Thrones-style battle between investors for the top spot and instead provide up-to-date developments on how investors have made a specific impact on the business.“ Related Resource: Investor Relationship Management 101: How to Manage Your Startups Interactions with Investors Related Resource: How to Find Investors Related Resource: 6 Helpful Networking Tips for Connecting With Investors Get Started with a Visible Update Template Getting in the habit of sending monthly investor updates is a surefire way to help with fundraising, hiring, and growing. To get started, pick a template from our library and tailor it to your business. Just remember that at the end of the day, sending anything is better than sending nothing at all. Related Resource: Best Practices for Creating a Top-Notch Investment Presentation Visible allows founders to update investors, track key metrics, and raise capital all from one platform. Try Visible for free to send your next investor update. To learn more about sending your first update with Visible, check out our guide (with videos).