Visible Blog

Visualizing and analyzing portfolio data is an important part of taking portfolio monitoring seriously at any venture firm. Visible makes this easy with four different dashboard types: Flexible dashboards Portfolio metric dashboards Fund performance dashboards Tear sheets (which have the same functionality as flexible dashboards but are restricted to a one-page format) Related resource: Unlocking Venture Capital Portfolio Insights with Dashboards In these latest product updates, Visible makes it easier for VCs to maintain data visualization accuracy and ensure that the qualitative information about portfolio companies is as up-to-date as possible on flexible dashboards. The main reason VCs create flexible dashboards on Visible is to support their internal portfolio review meetings. These meetings help VC firms align on the progress updates across the portfolio and make strategic decisions related to portfolio support and follow-on investments. Keep reading to understand how recent product updates make it even easier to manage and update data visualizations on Visible's flexible dashboards. Recent Dashboard Management Product Updates Setting date ranges at the dashboard level With this product update, investors can filter entire dashboards by a custom date range in addition to setting specific date ranges at the widget level. This streamlines the dashboard creation and maintenance process. Automatically updated company highlights and lowlights Investors can now request properties in Visible Requests and when companies submit their responses to qualitative questions, the property widgets are automatically updated on dashboards. This saves investors several steps in the process of making qualitative updates from their companies accessible to their wider team. Editing properties inline on dashboards This update lets investors quickly edit the property values displayed on portfolio company dashboards. Examples of properties commonly updated include: "Recent updates" "Company description" "Notes" "Last discussed" Giving users the ability to edit properties directly on a dashboard means investors don't have to navigate back and forth between the dashboards and properties section to make changes to their dashboards.

The last few years have been interesting for Fintech as we've seen both startups and established companies start to rethink the financial industry in order to adapt to a world that was rapidly changing thanks to crypto, blockchain, and the pandemic. Related resource: 14 FinTech Startups Shaping the Future of Finance Relevant trends from the past few years include: A surge in investments and interest in crypto and blockchain Financial services and products broadened as more partnerships were created thanks to embedded banking A shift from legacy infrastructures to core banking systems Fintech’s reach expanded to regions of the world that needed it most due to broken financial systems such as Southeast Asia, Africa, and Latin America There was a focus on innovation and global opportunities from VC’s and companies who are looking to take advantage of the increasing need for change within the Fintech industry Recent Investment highlights: (source) “Record number of fintech deals drives total investment to $210 billion in 2021” “Blockbuster year for crypto and blockchain, with $30 billion in investment globally” “‘Buy now, pay later’ space seeing large deals across jurisdictions” “Increasing focus on core banking replacements” “PE investment in fintech space more than doubles previous high” What we can take away from this is that fintech is emerging to be the leading sector within investments and 2022 will be a year of increased optimism and interest not only within Fintech but subsectors (such as Defi), which are well positioned to keep evolving and make a huge impact on the world and the financial system as we know it. There is a huge need for modernizing core banking platforms and even replacing banking systems- making it the best time to launch a fintech startup as well as invest in one. TechCrunch conducted interviews with some of the top VCs within the fintech space and said the two biggest topics that are spiking the interest of investors are crypto and Latin America investments. Others have said that there is also an increasing interest in B2B payments, BNPL (buy now, pay later platforms), embedded services (embedded lending, embedded insurance and embedded capital markets businesses- source). KPMG’s top predictions for the fintech market globally in 2022: (Source) A growing number of banks will offer embedded solutions There will be increased regulatory scrutiny of embedded finance offerings Fintechs will focus on branding themselves as data organizations ESG-focused fintechs will have a big growth trajectory There will be a stronger focus on dealmaking in underdeveloped regions. Unicorn status will lose some of its luster in developed markets, but remain key in emerging ones Related Resource: 15 Cybersecurity VCs You Should Know Related Resource: 14 Gaming and Esports Investors You Should Know Visible looks to help connect founders with investors all over the world. Below, we highlight 10 of our favorite FinTech venture capitalists. Search through these investors and 13,000+ more on Visible’s Connect platform. FinTech Collective Location: New York, New York, United States About: The firm is currently investing out of its third fund, a $200m early-stage fund with a focus on capital markets, wealth and asset management, banking-lending-payments, and insurance. The firm actively invests in decentralized finance (“defi”) opportunities across these segments. Thesis: Our ambition is to create the future of financial services, bringing transparency and choice to developed markets and financial connectivity and socio-economic mobility to developing markets. Investment Stages: Seed, Series A, Series B Recent Investments: Qlub NYDIG Anyfin Accel Location: Palo Alto, California, United States About: Accel is a leading venture capital firm that invests in people and their companies from the earliest days through all phases of private company growth. Atlassian, Braintree, Cloudera, CrowdStrike, DJI, Dropbox, Dropcam, Etsy, Facebook, Flipkart, FreshWorks, Jet, Qualtrics, Slack, Spotify, Supercell, UiPath and Vox Media are among the companies the firm has backed over the past 35 years. Thesis: We partner with exceptional founders with unique insights, from inception through all phases of growth. Investment Stages: Pre-Seed, Seed, Series A, Series B, Series C, Growth Recent Investments: NiYO Solutions Coast Genesis Global Anthemis Group Location: New York and London About: Our deep understanding of markets and models, passion for emerging technology and values inspire everything we do. By creating fertile ground for a diverse group of startups, investors, entrepreneurs, institutions, academics, and visionaries to converge, we believe we can solve the financial services world’s most pressing challenges faster, better and for the benefit of all. Thesis: Invests in startups that leverage technology to significantly impact the financial system. Investment Stages: Pre-Seed, Seed, Series A, Series B, Series C, Growth, Early Stage, Startup Studio (Lab) Recent Investments: Atom Bank tide Flat.mx Related Resource: 15 Venture Capital Firms in London Fueling Startup Growth RRE Ventures Location: New York, New York, United States About: RRE Ventures is a New York-based venture capital firm that offers early-stage funding to software, internet, and communications companies. Investment Stages: Series A, Series B Recent Investments: Venmo Bol Capitalize Greycroft Location: New York, New York, United States About: Greycroft is a venture capital firm that focuses on technology start-ups and investments in the Internet and mobile markets. Investment Stages: Pre-Seed, Seed, Series A, Series B, Growth Recent Investments: Procurated CyberFortress Kandji Insight Partners Location: New York, New York, United States About: Insight Partners is the most trusted scale-up firm in the software industry. Thesis: We support companies in good times, as well as challenging ones. Investment Stages: Pre-Seed, Seed, Series A, Series B, Series C, Growth Recent Investments: ncino checkout.com coast QED Investors Location: Alexandria, Virginia, United States About: QED Investors actively supports high-growth businesses that use the information to compete — and win. Investment Stages: Seed, Series A, Series B Recent Investments: zibo bitso Index Ventures Location: San Francisco, California, United States About: They are an international venture capital firm based in London, San Francisco and Geneva Thesis: Other firms invest in deals, Index invests in people. A deal is transactional. Relationships endure, and ours are based on curiosity, thoughtfulness, and deep conviction. Investment Stages: Seed, Series A, Series B, Series C, Growth Recent Investments: CoverWallet Savvy Wealth Fireblocks Related Resource: The 11 Best Venture Capitals in San Francisco Better Tomorrow Ventures Location: San Francisco, CA About: BTV is an early stage fintech focused fund that leads rounds in pre-seed and seed-stage fintech companies globally. We take a pretty broad view on fintech, and many vertical SaaS and marketplace businesses fit in our purview too. Thesis: We invest for a better future (hence the name); financial technology is a great way to improve people’s lives. Investment Stages: Pre-seed, Seed Recent Investments: Brick CreditBook Clubbi Bain Capital Ventures Location: Boston, Massachusetts, United States About: Bain Capital Ventures is a global private equity firm with over $17 billion of assets under management. Since 1984, the firm has invested in over 200 companies, with such notable successes as Aspect Development, DoubleClick, Gartner Group, and Netfish Technologies. Bain Capital Ventures manages a $250 million fund. Bain Capital Ventures partners with exceptional management teams to help early stage companies become long-term leaders in their markets. Thesis: We partner with disruptive founders to accelerate their ideas to market. Investment Stages: Pre-Seed, Seed, Series A, Series B, Growth Recent Investments: Orum Material Bank Reonomy American Express Ventures Location: Palo Alto, California, United States About: Seeks to invest in innovative startups in order to enhance the company’s core capabilities and accelerate their efforts in consumer commerce and B2B services. Investment Stages: Seed, Series A, Series B, Series C, Growth Recent Investments: Finmark Pinwheel Statespace SignalFire Location: San Francisco, California, United States About: SignalFire is a venture capital firm that invests in seed-stage companies and breakout companies. Investment Stages: Seed, Series A Recent Investments: Tradeswell PlanetScale ​​Ro Torch Capital Location: New York, New York, United States About: Torch Capital is a brand-focused investment firm built to shepherd the next generation of industry changing mission driven consumer companies. We invest in consumer platforms, products and services from healthcare, fintech, and food & beverage, to digital media, e-commerce and marketplaces. Investment Stages: Pre-Seed, Seed, Series A Recent Investments: Embed Lili Little Otter Mouro Capital Location: London, England About: Mouro Capital is a venture capital firm that backs entrepreneurs and start-ups who are shaping the future of financial services. With $400m AuM and the support of Banco Santander, the fund targets early to growth stage investment opportunities across Europe, North America and Latin America. The fund brings fintech expertise, a global network and a track-record of successful investments and market recognition from our core investment team to scaling start-ups. Recent Investments: a55 Digital Asset Holdings Curve Canaan Partners Location: Westport, Connecticut, United States About: Canaan Partners invests more than money in a company—they invest their time, experience, knowledge, connections and team-oriented approach. They place tremendous value on creating working partnerships with entrepreneurs and management teams who have the character and the drive to succeed. Prominent among Canaan’s resources is the breadth of operating, managerial and financial experience. Investment Stages: Seed, Series A, Series B, Growth Recent Investments: Kickpay CircleUp Italic Related Resource: Atlanta’s Hottest Venture Capital Firms: Our Top 9 Picks Additional FinTech Resources Downloadable KPMG’s Pulse of Fintech H2’21 Download this edition for: Global and regional analysis with key investment data and insights Top fintech trends for 2022 and beyond Interviews with Quantexa and Thought MachineFintech segment insights for a deeper dive into payments, insurtech, regtech, Wealthtech, cybersecurity, blockchain and cryptocurrency Spotlight articles on Emerging Markets: LATAM and Africa. Other Investor Lists 15 Venture Capital Firms Investing in VR 10 Gaming and Esports Investors You Should Know 10 Venture Capitalists Investing in Cannabis 60+ Active Seed Stage SaaS Investors & Fundraising Tips 23 Top VC Investors Actively Funding SaaS Startups Exploring VCs by Check Size 10 VCs Investing In Food & Bev Startups 10 Blockchain Investors Founders Should Know 10 VC Firms Investing in Web3 Companies 15 Direct to Consumer (D2C) VC Investors You Need to Know Start Your Next Round with Visible We believe great outcomes happen when founders forge relationships with investors and potential investors. We created our Connect Investor Database to help you in the first step of this journey. Instead of wasting time trying to figure out investor fit and profile for their given stage and industry, we created filters allowing you to find VC’s and accelerators who are looking to invest in companies like you. Check out all our FinTech investors here. After learning more about them with the profile information and resources given you can reach out to them with a tailored email. To help craft that first email check out 5 Strategies for Cold Emailing Potential Investors. 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.

Over the last decade, Berlin has transformed into the Silicon Valley of Germany and become a hotspot for founders and venture capital, with over 500 startups and around 40,000 business registrations per year. The city is the perfect environment for entrepreneurs to start and scale their businesses. Favorable conditions include highly qualified international talent, lots of networking opportunities and a vibrant social scene, a high standard of living at a relatively low cost, and a very active VC scene. Some of the well-established startups that call Berlin home are Soundcloud, Zalando, GetYourGuide, Delivery Hero, HelloFresh, N26, Tier Mobility, and Grover- just to name a few. Alternate funding opportunities, accelerators, and startup communities that are specific to Berlin Berlin government grants IBB BSS Accelerators and Incubators entrepreneur first Antler SIB (Startup Incubator Berlin) Expedite Ventures: Expedite Ventures is a Business Angel group of CTOs and CPOs. “We support tech founders hands-on with our know-how and capital. We’re nerds at heart, all passionate founders ourselves – some of us are still running startups. We have decades of collective experience in building and scaling technology companies. We offer a true hands-on mentoring approach, which we think is at least as important as capital. That’s why we provide both – plus a perspective that typical business-oriented angels and most VCs simply can’t provide.” Startup Scholorships IHK Berlin: Set-up subsidy for those unemployed Bayer G4A– partners with healthcare startups and technology companies that are developing innovative solutions in healthcare. Encourage Ventures: The investor network for female founders Notable Angels include co-founders and former MDs from Blinkist, N26, and mysugr. Innovators Room– helps founders, investors, corporate innovators as well as rising talent to network and advance their career together, through our Slack community, TechJobs newsletter and various online and offline learning events. Factory Berlin– provides members a curated network of entrepreneurs, professionals and creators, exclusive networking and knowledge-sharing events and programs, and access to our two locations in Berlin. WLOUNGE– a connector, change-maker, door opener, inspiration, access, enabler, and empowerment, headquartered in Berlin. A key player in the German Tech ecosystem and globally. We are global, founded to support diversity and women in business and technology. Each year we provide innovative services, workshops, round tables, The Tech Awards Gala, delegations, conferences, investment scouting, female founders program, leadership and fundraising, Growth opportunities, matchmaking activities between startups and corporates. BerChain– A non-profit association based in Berlin, connecting and promoting the Berlin Blockchain community from throughout the Blockchain ecosystem and beyond, positioning Berlin as the global Blockchain Capital. Hubraum-hubraum is Deutsche Telekom’s tech incubator. By bringing early-stage startups and the leading European telco together, hubraum sparks innovation transfer and creates business opportunities for both sides. Since 2012, hubraum has been collaborating with the digital ecosystem out of its campuses in Berlin, Krakow and Tel Aviv. EXIST– EXIST aims at improving the entrepreneurial environment at universities and research institutes. FoodLabs– FoodLabs is a venture studio and investor for startups that shape the future of nutrition, sustainability and health. Berlin VC Investment Within the Last 10 Years: Events StartUpNight– This will be the 10th year of the event which includes stage programs, workshop sessions, and pitch opportunities, experts from venture capital firms, corporates, and funding institutions will give founders the opportunity to present themselves and their innovations and get answers to their questions on important topics such as funding. Hub.berlin– The business festival for digital movers and makers. TOA– Tech Open Air Resources Berlin Startup Report (only in German) Berlin Startup Resources Berlin Startup Map Top 10 Government Grants Guide to Berlin startup funding German Startup News EU Startups Business Insider: Grunderszene Startup-Insider VCs Investing in Berlin Startups Lakestar Location: Zürich, Zurich, Switzerland About: Lakestar invests with a long term view across all stages from Seed to Growth. We have been privileged to partner with some of the world’s best tech entrepreneurs. Their stories are inspirational and make us proud. Thesis: Our vision is of a world of technology-enabled, progressive societies, born of the very best ideas that founders can dream up and that we can help realise. Investment Stages: Seed, Early, Growth Recent Investments: 1047 Games AccuRx Aetion Related Resource: 8 Active Venture Capital Firms in Germany June Fund Location: Berlin, Germany About: June is a global technology investor, backed by leading industrial minds. June invests into new paradigms across all stages – from networks to infrastructures to open software platforms. We take a macro-thematic view on technological progress, new economic models and value creation. June’s breadth of experience, intellectual curiosity and long-term thinking have attracted exceptional teams and individuals. Investment Stages: Pre-Seed, Seed, Series A, Series B, Series C, Growth Recent Investments: Reebelo Statespace SimScale HV Capital Location: Berlin, Munich, Germany About: Founded in 2000, they are one of the leading independent European early stage funds. Investment Stages: Pre-Seed, Seed, Series A Recent Investments: Storyblok KoRo Flip Target Global Location: Berlin, Berlin, Germany About: We’re an international VC headquartered in Berlin with €800m+ AuM, focusing on fast-growing tech companies across their lifecycles. With offices in London, Tel Aviv, & Barcelona, we connect the key European startup ecosystems. We help exceptional entrepreneurs to build market leaders. Investment Stages: Pre-Seed, Seed, Series A Recent Investments: Masterschool Reverence Casava Acton Capital Location: Munich, Bayern, Germany About: Acton Capital Partners is a specialist investor in internet- and mobile-based, consumer-oriented businesses. Having managed more than 30 investments since 1999 as the corporate venture capital business of Hubert Burda Media, the German family-owned global media company, the Acton team brings a wealth of expertise to the companies in which it invests, delivering superior capital returns. Investment Stages: Series A, Series B Recent Investments: Convelio Zenjob Knix Wear IBB Location: Berlin, Germany About: Investing in Berlin-based start-ups with a focus on Tech (e.g. Software & IT, Industrial Tech, Health Care) and other business model innovations (e.g. Digital Consumer and Media Businesses). Thesis: IBB Ventures is for all those who make a difference and create a sustainable future. We invest public funds as venture capital and, together with Berlin startups, help to promote our capital as a business location. Our focus is on innovative ideas and ambitious founders. With our many years of experience we are at your side and help you to successfully implement your ideas. Investment Stages: Seed, Series A Recent Investments: Blinkist Babbel The Female Company Speedinvest Location: Berlin, London, Munich, Paris, and Vienna, Austria About: We have 40 investment pros in Berlin, London, Paris, Munich, Vienna, San Fran & an in-house team of 20 operational experts to support you from day one. We fund early-stage Fintech, Digital Health, Consumer Tech, Network Effects, Deep Tech & Industrial Tech. Send us your pitch! Thesis: Speedinvest is a leading early-stage venture capital firm with more than €600M AuM and 40 investors based in Berlin, London, Munich, Paris, and Vienna. Our dedicated sector-focused teams are the first to fund Europe’s most innovative technology startups and our in-house operational experts are on-hand to offer founders ongoing support with growth, HR, US market expansion, and more. Wefox, Bitpanda, TIER Mobility, GoStudent, Wayflyer, CoachHub, Schüttflix, TourRadar, Adverity, and Twaice are among our portfolio of 250+ companies. Learn more at www.speedinvest.com. Investment Stages: Pre-Seed, Seed, Series A Recent Investments: Bliq Byrd Kevin Verve Ventures Location: Zürich, Switzerland About: Verve Ventures provides its pan-European network of selected private and institutional investors access to those top-tier investment opportunities. The company invests from EUR 500k to several million from Seed to Series B and beyond across Europe. Verve Ventures’ dedicated team helps startups with their most pressing needs such as hiring, client introductions and access to an expert network of high-profile individuals. To become part of Verve Ventures’ growing network of entrepreneurs and investors, visit verve.vc. Thesis: Investing in technology and science-driven startups. Adding value through our exclusive network of investors. Investment Stages: Seed, Series A, Series B Recent Investments: Soter Analytics Byrd helios Cherry Ventures Location: Berlin, Germany About: Cherry Ventures is an early-stage venture capital firm led by a team of entrepreneurs with experience building fast-scaling companies such as Zalando and Spotify. The firm backs Europe’s boldest founders, usually as their first institutional investor, and supports them in everything from their go-to-market strategy and the scaling of their businesses. Cherry Ventures has previously invested in the seed stage of over 70 companies across Europe, including FlixBus, Auto1 Group, Flaschenpost, Infarm, Rows, Forto, SellerX, Juni, and Flink. Cherry Ventures is based in Berlin and invests across Europe with operations in London and Stockholm. Thesis: Founders first and investors second. Investment Stages: Pre-Seed, Seed Recent Investments: Klar Cosuno NUMA Group EQT Ventures Location: Stockholm, Stockholms Lan, Sweden About: EQT Ventures is a sector agnostic, multi-stage VC fund, with just over €1.2 billion total capital raised. The fund’s team of former founders and operators from the likes of Spotify, Booking.com, Hotels.com and King have experienced the entrepreneurial journey firsthand and know how challenging it can be. They’re ready to support the next generation of entrepreneurs in Europe and the US with the expertise and advice needed to build global success stories. Investment Stages: Seed, Series A, Series B, Series C Recent Investments: Moralis Instabox Nothing BlueYard Capital Location: Berlin, Germany About: BlueYard invests in founders with transforming ideas that decentralize markets and empower humanity. Typically $1-3m as an initial investment; active around the world. Most active in crypto/web 3 (e.g. Protocol Labs, Filecoin, Open Zeppelin, Radicle), technologies that help us overcome our largest planetary challenges (e.g. Marvel Fusion, Meatable, Dance), frontier biology to help us live long and prosper (e.g. BitBio, Biofidelity) and vertical software un-bundling monopolies (e.g. Pitch, Wonder). Thesis: BlueYard seeks to invest in founders with transforming ideas that decentralize markets. Investment Stages: Pre-seed, Seed, Series A Recent Investments: Privy Dance FreedomFi Expedite Ventures Location: Berlin, Germany About: Expedite Ventures is a Business Angel group of CTOs and CPOs. We support tech founders hands-on with our know-how and capital. We offer a true hands-on mentoring approach, which we think is at least as important as capital. That’s why we provide both – plus a perspective that typical business-oriented angels and most VCs simply can’t provide. Investment Stages: Pre-seed, Seed Recent Investments: Superlist widgetbok supernova 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 landscape of business finance, the contributed capital formula stands as a cornerstone for investors seeking to evaluate a company's financial health and growth potential. By quantifying the equity shareholders invest in exchange for stock, this formula offers a clear insight into the resources a company has at its disposal to fuel expansion, innovation, and stability. Defining Contributed Capital Contributed capital, also known as paid-in capital, refers to the cash and other assets that shareholders provide to a company in exchange for ownership or stock. This financial measure includes funds from initial public offerings (IPOs), direct listings, direct public offerings, and secondary offerings, as well as issues of preferred stock. Additionally, it encompasses the receipt of fixed assets or the reduction of liabilities in exchange for stock. Contributed capital is a key component of a company's equity structure, reflecting the total financial investment made by shareholders to acquire their stake in the company. It is reported on the company's balance sheet under the shareholders' equity section, typically split into two accounts: the common stock account, representing the par value of issued shares, and the additional paid-in capital account, reflecting the premium paid by investors over the par value of the shares​​​​​​. Building Blocks of the Contributed Capital Formula Understanding contributed capital and its significance is just the beginning. As we delve deeper into the financial anatomy of a company, it becomes clear that contributed capital's value is built upon two foundational elements: common stock and additional paid-in capital. These components contribute to the total financial investment made by shareholders and provide insights into a company’s equity structure and financial health. Common Stock Common stock represents the basic ownership shares in a company, providing shareholders with voting rights and a claim on a portion of the company's profits through dividends. It's a foundational component of contributed capital, symbolizing the equity investors contribute to a company in exchange for a stake in its ownership. When companies issue common stock, the par value (a nominal value assigned to the stock for legal purposes) and any amount received over this par value from shareholders constitute the company's contributed capital. This is because the total value of common stock issued (including its par value and the premium paid by investors over this par value) directly contributes to the equity section of a company's balance sheet. In essence, common stock acts as the initial building block of contributed capital, indicating both the legal capital that a company must maintain and the additional resources provided by shareholders to support the company's operations and growth. This aspect of contributed capital is crucial for investors as it reflects their basic ownership in the company and forms the basis for additional equity contributions, like additional paid-in capital, further enhancing the company's financial structure. Additional Paid-in Capital Additional paid-in capital (APIC) represents the amount of money shareholders have paid for shares that exceed the par value of those shares. It's a key component of the contributed capital formula, acting as a surplus that reflects the additional investment shareholders are willing to make over and above the basic value of the shares. This component is crucial because it shows investor confidence and support for the company, indicating that shareholders value the company more highly than its stated nominal value. In the contributed capital formula, APIC is combined with the value of common stock (which accounts for the par value of the shares) to give the total contributed capital. This total is a critical indicator of the financial resources provided by shareholders, used by the company for growth and operations. For instance, if a company issues shares with a par value of $1 but sells them for $10 each, the $9 surplus per share is recorded as additional paid-in capital. This extra contribution by shareholders over the par value is a testament to their belief in the company's potential for future growth and profitability. Understanding APIC is vital for investors as it provides insights into the company's funding structure and the value shareholders place on the company's stock beyond its face value. It factors into the contributed capital formula by highlighting the additional financial support the company has received from its investors, offering a more comprehensive view of a company's equity financing and the confidence investors have in its long-term success. Related resource: The Ultimate Guide to Startup Funding Stages The Contributed Capital Formula As we transition to a deeper understanding of the contributed capital formula, it's crucial to recognize its role in the financial landscape of a company. This formula (contributed capital = common stock + additional paid-in capital) encapsulates the essence of shareholder investment, merging the foundational elements of common stock and additional paid-in capital into a comprehensive measure of financial support investors provide. Here's a breakdown of its components: Common Stock: This component represents the initial equity stake shareholders have in a company, denoted by the par value of issued shares. It's the base level of investment that shareholders commit to, offering them ownership and often voting rights within the company. The par value is a nominal amount, typically set at a minimal level, which serves as the legal capital that a company must maintain. Additional Paid-in Capital (APIC): APIC goes beyond the basic investment denoted by common stock, representing the premium that investors are willing to pay above the par value of the shares. This premium reflects the investor's confidence in the company's future prospects and growth potential. It's a critical indicator of the value that shareholders place on the company, above and beyond its stated nominal value. Understanding both components within the contributed capital formula offers investors a clearer picture of a company's equity structure and the financial commitment of its shareholders. It showcases not just the basic valuation of the company through its common stock but also the additional value investors see in it, as reflected by the additional paid-in capital. This comprehensive view is vital for making informed investment decisions and assessing a company's financial health and growth potential. Example of the Contributed Capital Formula With a solid grasp of the foundational elements that constitute contributed capital—common stock and additional paid-in capital—it's time to see these components in action through a practical example. Consider a scenario where a company decides to issue 100,000 shares of common stock, each with a par value of $1. However, due to investor demand or the perceived value of the company, these shares are sold for $2 each. In this case, the company successfully raises $200,000 in contributed capital through this issuance. Here, the common stock account on the balance sheet would reflect $100,000, corresponding to the par value of the shares issued. Simultaneously, the additional paid-in capital account would also record $100,000, representing the excess amount over the par value investors paid for their shares. This example demonstrates the direct contribution of both components—common stock and additional paid-in capital—to the total contributed capital, offering a clear view of how shareholder investments are quantified and reported in financial statements. Significance in Financial Reporting and Decision-Making Contributed capital is not just a figure on the balance sheet but a critical metric that influences corporate strategies, investor perceptions, and the financial narrative of a company. Understanding the significance of contributed capital in these arenas empowers investors and decision-makers to evaluate a company's financial health and strategic positioning more effectively. As we delve into this discussion, we'll uncover how contributed capital impacts a company's balance sheet, its importance in financial reporting, and its influence on investor decisions, highlighting the interconnectedness of financial metrics and corporate success. Related resource: Venture Capital Metrics You Need to Know Balance Sheets and Contributed Capital Contributed capital is prominently displayed on the balance sheet under the shareholder's equity section, offering a snapshot of the financial stake that shareholders have in the company. This section of the balance sheet is crucial because it provides insight into the company's funding structure, showing the amount of capital directly contributed by shareholders through the purchase of stock. The presentation of contributed capital on the balance sheet has several key significances: Financial Health Indicator: The size of contributed capital can be a significant indicator of a company's financial health and its ability to raise funds from investors. A higher contributed capital suggests strong investor confidence and a solid foundation of financial support for the company's operations and growth initiatives. Equity Structure Insight: It offers investors and analysts insight into the company's equity structure. By analyzing the components of contributed capital, stakeholders can understand the mix of common stock and additional paid-in capital, providing clues about the company’s fundraising history and shareholder commitments. Regulatory and Legal Compliance: The balance sheet's presentation of contributed capital also ensures compliance with financial reporting standards and regulations. It provides transparency about the company's equity financing, which is crucial for legal purposes and for maintaining investor trust. Basis for Financial Ratios: Contributed capital is a key element in calculating financial ratios that assess a company's leverage and financial stability, such as the debt-to-equity ratio. These ratios are important for investors making decisions about buying or selling stock in the company. Comparison Across Industries: The amount of contributed capital can vary significantly across different industries, making it a valuable metric for comparing companies within the same sector. Investors can use this information to gauge a company's market position and its competitiveness within the industry. Influence on Investor Decisions Understanding the contributed capital formula is pivotal for investors as it offers a direct lens into a company's equity structure and the financial commitment of its shareholders. This knowledge can significantly influence investment decisions, and here's how: Valuation Insight: The contributed capital figure helps investors evaluate the market valuation of a company compared to the actual capital invested by shareholders. A higher contributed capital may indicate that investors are willing to pay more than the nominal value of shares, suggesting optimism about the company's future growth prospects. Financial Stability: A robust contributed capital amount signifies a strong equity base, implying greater financial stability. Companies with substantial contributed capital are often perceived as having a lower risk of default, making them more attractive to risk-averse investors. Investor Confidence: The amount of additional paid-in capital over the par value of common stock reflects investor confidence in the company's potential. Investors looking for companies with strong growth potential can use this as a gauge to make informed decisions. Shareholder Equity Structure: By dissecting the contributed capital into common stock and additional paid-in capital, investors can understand the shareholder equity structure. This understanding helps in assessing how a company finances its operations and growth—through debt or equity—and its implications for future returns. Benchmarking and Comparative Analysis: Investors can compare the contributed capital across companies within the same industry to gauge which companies are better capitalized and potentially more competitive. This comparison can be a deciding factor when choosing where to invest. Liquidity and Exit Potential: For investors interested in liquidity and exit strategies, understanding how contributed capital has been raised over time can provide insights into the company’s market liquidity and the potential ease of selling the investment in the future. Related resource: From IPOs to M&A: Navigating the Different Types of Liquidity Events Comparing Contributed Capital Across Industries By examining how contributed capital varies across different industries, we can uncover patterns and variances that inform strategic investment decisions. This comparative analysis not only highlights industry-specific financial health and investor confidence but also aids in identifying sectors with robust growth potential or those that are more equity-driven in their financing approach. Engaging in this cross-industry examination enriches our understanding of the financial landscape, guiding investors toward making informed choices in a diverse and complex market environment. Industry Standards and Variances Contributed capital can significantly vary across industries due to several factors that reflect the unique financial structures, capital requirements, and investor behaviors within each sector. Here’s an overview of why these variances occur and what they signify: Capital Intensity: Industries like manufacturing, utilities, and telecommunications require substantial initial capital investments to cover infrastructure, equipment, and technology. Consequently, companies in these sectors might have higher levels of contributed capital to meet these upfront costs. In contrast, service-oriented or software industries may require less physical capital, leading to lower contributed capital needs. Growth and Investment Opportunities: High-growth industries, such as technology and biotech, often attract more equity investment as investors seek to capitalize on potential high returns. This results in higher contributed capital as companies issue more stock to fund rapid expansion and development projects. Risk Profiles: Industries with higher volatility and risk may show different patterns of contributed capital. Investors in these industries might demand higher returns for their investment, reflected in the premium over par value paid, thus affecting the additional paid-in capital component. Regulatory Environment: Certain industries are subject to stringent regulatory requirements that necessitate significant compliance and operational investments. Industries like pharmaceuticals, banking, and energy might accumulate higher contributed capital as a buffer against regulatory risks and to finance compliance infrastructure. Market Maturity: Mature industries with stable cash flows and limited growth opportunities might rely less on equity financing (thus showing lower contributed capital), preferring debt financing or reinvestments from retained earnings. Conversely, emerging industries may heavily leverage equity financing to fuel growth, leading to higher contributed capital. Investor Expectations: The investor base of an industry can influence its contributed capital. Industries favored by venture capitalists and angel investors, such as technology and green energy startups, might exhibit higher contributed capital due to the nature of venture investments, which are equity-based and often at a premium to support innovation. These variances in contributed capital across industries highlight the importance of contextualizing financial metrics within specific sector dynamics. Investors leveraging this understanding can make more informed decisions by considering the absolute numbers and the industry context that shapes these figures. This nuanced approach allows for a better assessment of a company's financial health, growth prospects, and the inherent risks and opportunities within its industry landscape. Interpreting Deviations From Industry Norms When certain companies exhibit contributed capital figures that significantly deviate from their industry norms, it can signal various strategic, operational, and market positioning aspects. Here are several insights into what these deviations might indicate: Innovative Business Models: Companies that break away from traditional industry models often attract more investment due to their potential to disrupt markets. Higher contributed capital in such cases reflects investor enthusiasm for innovative approaches and the promise of future returns, distinguishing these companies from their more conventional counterparts. Exceptional Growth Prospects: Firms that demonstrate extraordinary growth potential, either through proprietary technology, market share expansion, or unique product offerings, might attract higher levels of contributed capital. This deviation can indicate investor confidence in the company's future profitability and market dominance. Strategic Financing Choices: A significant deviation might also reflect a company's strategic financing decisions. For example, a firm may prefer equity financing to preserve liquidity and avoid debt, leading to higher contributed capital. Alternatively, a lower contributed capital relative to industry norms could indicate a reliance on debt financing or internal funding mechanisms like retained earnings. Market Conditions at the Time of Funding: The economic and market conditions when capital was raised significantly impact contributed capital levels. Companies that issued equity during bullish market periods may have secured higher contributed capital due to more favorable investor sentiment and valuation expectations. Corporate Lifecycle Stage: Early-stage companies, especially in high-growth industries like tech startups, might show higher contributed capital as they issue stock to fund rapid expansion. In contrast, more mature companies might exhibit lower contributed capital if they've relied more on reinvesting earnings rather than issuing new equity. Regulatory and Tax Considerations: In some cases, deviations in contributed capital might arise from regulatory incentives or tax considerations unique to a company or sub-sector, encouraging different capital structuring approaches. Ownership and Control Strategies: Companies keen on avoiding dilution of ownership might limit equity issuance, resulting in contributed capital figures that deviate from industry norms. This approach might be indicative of founders or principal owners prioritizing control over external financing. Understanding these deviations requires investors to look beyond the numbers and consider broader strategic, market, and operational contexts. By doing so, investors can identify potential red flags and uncover opportunities where a company's unique approach to capital structure and financing strategies might offer competitive advantages or higher growth potentials. Track Your Fund Performance Data With Visible By leveraging Visible, investors can track critical portfolio company and investment data all from one place. Learn how to get started with Visible to track your crucial investment data here.

At Visible, we typically compare a venture fundraise to a traditional B2B sales and marketing funnel. At the top of the funnel, you are finding potential investors via cold outreach and warm introductions. In the middle of the funnel, you are nurturing potential investors with meetings, pitch decks, updates, and other communications. At the bottom of the funnel, you are working through due diligence and hopefully closing new investors. Related Resource: The 12 Best VC Funds You Should Know About Like sales, a healthy fundraising funnel starts by finding the right investors. This can be based on geography, check size, focus areas, etc. For founders looking for investors in the San Francisco area, check out our list below: 1. Accel As put by their team, “Accel is a leading venture capital firm that invests in people and their companies from the earliest days through all phases of private company growth.” Focus and industry: Accel is industry agnostic Funding stage: Accel invests across many stages — from pre-seed to series B and beyond Accel is synonymous with venture capital in San Francisco. Accel was founded in 1983 and has since funded 1,500+ companies. They have funds across the globe and invest in founders across many geographies, industries, and stages. Some of their most popular investments include: Facebook Slack Spotify Location: Palo Alto, CA 2. Greylock Partners As put by their team, “At Greylock, our mission is to help realize rare potential. To do this well, we believe it’s essential to be trusted partners to entrepreneurs at every stage — from idea to IPO. The entrepreneurs we back have the vision to build something huge that hasn’t existed before. They are paranoid about what could go wrong — but are obsessed with what can go right. They are mission-driven, intellectually honest and infinite learners. They have raw ambition, bravery, and grit. They don’t give up, ever. And they are unique in their ability to lead and inspire others to join their journey.” Focus and industry: Greylock is focused on enterprise, consumer, and crypto software Related Resource: FinTech Venture Capital Investors to Know Funding stage: Greylock invest from pre-seed to series B and beyond As put by their team, “We focus on enterprise, consumer, and crypto software at Seed and Series A, and also make new company investments in Series B and beyond. We support entrepreneurs throughout their journey from idea to IPO and onwards.” Some of their most popular investments include: Airbnb Facebook Figma Location: Menlo Park, CA 3. Menlo Ventures As put by their team, “Genuinely, actively invested. Invested in your success, but also your struggles. Your questions, your concerns, your highs, your lows. We don’t just invest our dollars, we invest our dedication, our drive. Our tested advice and trusted support. That’s because, when we find an idea we believe in, we’re all engaged. When we’re in, we’re ALL IN.” Focus and industry: Menlo Ventures focuses on the following industries: Consumer Cloud Infrastructure Cybersecurity Fintech Healthcare SaaS Supply Chain and Automation Related Resource: 15 Cybersecurity VCs You Should Know Funding stage: Menlo Ventures across stages from inception to series B and beyond As put by their team, “We are investors and company builders—we know what it takes to turn a budding idea into a scalable business. We work with early-stage founders to find product-market fit, develop go-to-market strategies, scale their organizations, and support them as they grow.” Some of their most popular investments include: Affinity Minted Roku Location: Menlo Park, CA 4. Spark Capital As put by their team, “We are Spark Capital, investors in products we love by creators we admire, including Affirm, Carta, Cruise, Discord, Oculus, Plaid, Postmates, Slack, Twitter, and Wayfair. We know there are no playbooks or formulas for success and are here to help founders win their own way. We invest across all sectors and stages, and work out of San Francisco, Boston, and New York City.” Focus and industry: Spark Capital invests across all industries Funding stage: Spark Capital invests across all stages Like many of the funds on this list, Spark Capital has been investing across all industries and all stages for decades. Some of their most popular investments include: Twitter Slack Affirm Location: San Francisco – Boston – New York 5. Bessemer Venture Partners As put by their team, “Bessemer Venture Partners is the world’s most experienced early-stage venture capital firm. With a portfolio of more than 200 companies, Bessemer helps visionary entrepreneurs lay strong foundations to create companies that matter, and supports them through every stage of their growth.” Focus and industry: BVP invests across many industries Funding stage: BVP invests in early-stage companies BVP has become a leader in early-stage investments. They focus on companies across the globe and have backed some of the most famous companies to date. Some of their most popular investments include: LinkedIn Shopify Yelp Location: San Francisco, CA 6. Altos Ventures As put by their team, “Altos Ventures was founded in 1996, to exclusively address the needs of promising, young technology companies and entrepreneurs. Because of their focus on entrepreneurs – along with their network of co-investors, partners, and industry experts—they know how to build viable business models so companies can move on to the next stage of growth.” Focus and industry: List the focus, industry, or types of companies this VC typically invests in. Funding stage: Altos Ventures is focused on early-stage companies Altos Ventures is a purpose-driven investment fund that is focused on the fundamentals. Some of their most popular investments include: Bench Outdoorsy Roblox Location: Menlo Park, CA 7. Andreessen Horowitz As put by their team, “Andreessen Horowitz was established in June 2009 by entrepreneurs and engineers Marc Andreessen and Ben Horowitz, based on their vision for a new, modern VC firm designed to support today’s entrepreneurs. Andreessen and Horowitz have a track record of investing in, building and scaling highly successful businesses.” Focus and industry: Andreessen Horowitz invests across many industries, including: Bio + Health Cultural Leadership Consumer Crypto Enterprise Fintech Games Related Resource: 15 Venture Capital Firms Investing in VR Funding stage: Andreessen Horowitz invests across all stages. As put by their team, “a16z is defined by respect for the entrepreneur and the company building process; we know what it’s like to be in the founder’s shoes. The firm is led by general partners, many of whom are former founders/operators, CEOs, or CTOs of successful technology companies, and who have domain expertise ranging from biology to crypto to distributed systems to security to marketplaces to financial services.” Some of their most popular investments include: Affirm Airbnb Coinbase Location: Menlo Park, CA 8. Expa As put by their team, “Expa is where the best startups find support and funding to scale. Collectively, we’ve launched dozens of companies, supported 50+ founders, and reached hundreds of millions of users. Our community of builders includes the founders and leaders of Uber, Virgin Galactic, Twitter, Current, and more.” Focus and industry: Expa invests across many industries Funding stage: Expa focuses on early-stage investments As put by their team, “Expa was created by Uber co-founder Garrett Camp to support the next generation of founders. The partners at Expa are builders and operators themselves, who can provide founders with practical advice in product design, branding, engineering, operations, and recruiting.” Some of their most popular investments include: Aero Drip Radar Location: San Francisco, CA 9. Benchmark Venture Capital As put on their Visible Connect profile, “Benchmark Capital is focused on one, and only one, mission: to help talented entrepreneurs build great technology companies. That’s what drives them and everything they do – from how they organize their firm to their investment strategy.” Focus and industry: Benchmark is focused on social, mobile, local, and cloud companies. Funding stage: According to their Visible Connect profile, “Their investments range in size from as little as $100,000 to as much as $10 or $15 million. Typically, they invest $3 to $5 million initially and expect to invest $5 to $15 million over the life of a company.” Benchmark has raised 6 funds that span 2 decades. Some of Benchmark’s most popular investments include: Asana Dropbox Zillow Location: San Francisco, CA 10. First Round Venture Capital As put by their team, “We’re focused on being the world’s best partner for founders at the very first stages of company creation — so we’ve designed the firm to do just that. When you work with First Round, you get super active partners (most of whom are former founders themselves) working side-by-side with you on your biggest and smallest challenges.” Focus and industry: First Round invests across all industries Funding stage: First Round likes to be the first check in a company, regardless of stage. As put by their team, “Typically, our initial investment in a startup ranges from $1 million to $5 million, but we’ve gone higher and lower in some cases. Currently, our average initial investment is right around $3 million.” Some of First Round’s most popular investments include: Notion The Black Tux Uber Location: San Francisco – New York – Philadelphia 11. Y Combinator Y Combinator is synonymous with accelerators. As put by their team, “Y Combinator (YC) is a startup fund and program. Since 2005, YC has invested in nearly 3,000 companies including Airbnb, DoorDash, Stripe, Instacart, Dropbox, and Coinbase. The combined valuation of YC companies is over $300B. YC has programs and resources that support founders throughout the life of their company.” Focus and industry: Y Combinator invests across all industries. Funding stage: Y Combinator helps companies launch with a $500k check. Since its inception in 2005, Y Combinator has been accredited for helping launch, fund, and grow some of the most prolific startups. Some of their most popular investments include: Airbnb DoorDash Stripe Location: San Francisco, CA Find top investors in the Bay Area with Visible As we mentioned at the beginning of this post, a venture fundraise often mirrors a traditional B2B sales and marketing funnel. Just as a sales and marketing team has dedicated tools, shouldn’t a founder that is managing their investors and fundraising efforts? Use Visible to manage every part of your fundraising funnel with investor updates, fundraising pipelines, pitch deck sharing, and data rooms. Raise capital, update investors, and engage your team from a single platform. Try Visible free for 14 days.

As an ambitious founder, joining an accelerator program can be a major stepping stone to startup success. By joining an accelerator, startups can fast-track their progress, accessing resources and networks that would otherwise take years to build. The impact of such programs is evident when we look at companies like Dropbox, Airbnb, and Reddit, each of which gained invaluable benefits from accelerator experiences with Y Combinator. By turbocharging their development, these companies leaped ahead, becoming industry leaders and household names. In this article, we’ll delve deeper into the world of accelerators, helping you understand why such a program could be a game-changer for your startup and some startup Accelerators to consider from our Connect investment database. Benefits of Joining an Accelerator One of the most significant advantages of accelerator programs lies in the mentorship they provide. Founders are often paired with experienced entrepreneurs, investors, or industry experts who guide them through their growth trajectory. These mentors provide a wealth of industry insights, and strategic guidance that can open doors to significant networking opportunities. Related resource: Should Your Startup Have Mentors? Key Benefits and Considerations Alongside this, accelerators usually offer a certain amount of funding in exchange for equity. This early-stage capital injection can be crucial for startups to build their prototype, hire talent, or scale their operations. It also opens up a vast network of fellow founders, investors, and industry professionals, creating an ecosystem of collaboration and learning. Additionally, founders gain access to resources and tools, such as workspaces, training sessions, and state-of-the-art technology. Accelerators ensure startups have what they need to succeed in today’s competitive market. These cumulative benefits can often be the catalyst that propels a young startup from stagnation to rapid growth. Related resource: The Top 16 Accelerators Powering Startup Growth “We surveyed 43 founders who attended these accelerators to better understand their biggest takeaways from each respective program. Founders highlighted many aspects of the accelerator programs, including access to quality advisers, mentors, and corporations, the strength of the program’s network, and the benefits of an environment that encourages deep thinking and iteration. They also appreciated education on fundraising and warm connections to investors and potential customers. On the other hand, founders expressed the need for more education on running a company.” – PitchBook Newsletter Related resource: 12 Online Startup Communities for Founders Selection Criteria and Application Process Accelerators receive a plethora of applications, but only a handful make the cut. Therefore, understanding the selection criteria is crucial. Generally, these programs look for startups with high business potential, meaning your idea should solve a significant problem and have a sizable market. Team composition also plays a vital role; accelerators prefer diverse, dedicated, and capable teams that can withstand the rigors of startup life. Scalability is another crucial factor; your business should have the potential to grow rapidly and provide a return on investment. As for the application process, it usually begins with an online application where you’ll provide information about your startup and why you believe it would benefit from the program. You’ll likely need to submit a pitch deck – a brief presentation outlining your business plan. If your application is shortlisted, the next stage is usually an interview with the accelerator’s selection committee. This is your opportunity to demonstrate your passion, knowledge, and commitment. Related resource: Our Teaser Pitch Deck Template Startup Growth Metrics and Benchmarks For startups looking to attract accelerator interest and subsequent investment, monitoring and presenting the right growth metrics is critical. Key metrics include Monthly Recurring Revenue (MRR) and Year-over-Year (YoY) growth to showcase revenue consistency and scalability. Customer Acquisition Cost (CAC) and Lifetime Value (LTV) ratio provide insights into the efficiency of marketing strategies and customer value. Engagement metrics, like Daily Active Users (DAU) or Monthly Active Users (MAU), highlight product stickiness and user adoption. Tracking these metrics allows startups to demonstrate growth potential and operational efficiency to potential accelerators and investors. Equity vs. Non-equity Programs For founders, choosing between equity-based and non-equity accelerators is a crucial decision that impacts the future of your startup. Equity-based programs typically require you to give up a portion of your company's equity in exchange for capital, mentorship, and resources. This can be a good option if you're looking for substantial funding and are willing to share your company's ownership. On the other hand, non-equity accelerators offer support without taking any stake in your company, ideal for those who wish to retain full ownership. However, they might offer less capital. Consider your startup's funding needs, how much control you're willing to share, and the specific benefits each program offers to make an informed decision. Related resource: Pros and Cons of Crowdfunding for Your Startup Legal and IP Considerations for Startups in Accelerators When joining an accelerator, it's crucial to carefully navigate legal and intellectual property (IP) considerations. Protecting your startup's IP is paramount, as it forms the core of your value proposition. Ensure you understand the terms of the accelerator agreement, especially concerning IP rights and confidentiality. Some accelerators may require disclosure of your IP, so it's essential to have clear agreements in place to protect your interests. Consulting with a legal expert specializing in startup and IP law can provide tailored advice, helping you safeguard your assets while benefiting from the accelerator's resources and network. Engaging in due diligence and obtaining professional legal guidance are key steps in this process. What to Expect from an Accelerator Most programs are highly structured and rigorous, designed to make the most of every minute. A typical day could include a blend of workshops, mentorship sessions, networking events, and ample amounts of time for product development. Accelerators push startups to evolve rapidly, so the schedule can be demanding. Expect long days and tight deadlines, but also a supportive, collaborative environment full of passionate people who share your entrepreneurial spirit. It’s a high-intensity period, but the pace is intentionally set to prepare you for the demanding nature of running a startup. Preparing the Team Preparing your team for an accelerator program is much like gearing up for a marathon. The program’s intensity means your team will need to be mentally prepared and resilient. Transparency is key – ensure your team understands the expectations and commitments of the program. Encourage open communication about concerns and questions. Prioritize team health and well-being to avoid burnout. Foster a culture of agility and quick decision-making, as accelerators move at a fast pace. Regular check-ins and debriefs can help the team navigate the experience collectively, learning and pivoting as needed. Setting realistic and achievable goals before entering an accelerator is crucial. Having clear objectives will help you stay focused amidst the whirlwind of activities and opportunities. Your goals could range from product development milestones, market validation, and customer acquisition targets, to preparing for fundraising. Be ambitious, but also practical – consider your team’s capacity and the program’s duration. Your goals should be specific, measurable, achievable, relevant, and time-bound (SMART). Remember, these goals are not set in stone; they should evolve as you receive new information and feedback during the program. Regularly revisit and revise your goals to ensure they align with your startup’s growth and the invaluable feedback you’ll receive within the accelerator environment. Related resource: Startup Metrics You Need to Monitor Navigating Post-Accelerator Challenges After completing an accelerator program, startups face the challenge of maintaining momentum. To sustain growth, focus on continuous learning and adaptability, leveraging the network and resources acquired during the program. Establish clear, achievable goals for short and long-term growth, and continuously measure performance against these objectives. Engage with the accelerator alumni community for support and potential collaboration opportunities. Prioritize building strong customer relationships and refining your value proposition based on feedback. Lastly, maintain fiscal discipline while seeking further investment opportunities to fuel growth. Resources The most active startup accelerators and where they’re investing Accelerator connect profiles in our Fundraising CRM Seed-DB maintains a global list of accelerators and data on their funded startups. Barclays Eagle Labs: Our passion is innovation and growth so much so, that in 2015 when underused Barclays spaces became available we created Eagle Labs, a network made up of member businesses, partners, investors, corporates, mentors, banking expertise and so much more. Startup Accelerators to Check Out Buildit Accelerator And Program Info Provided by Arta Beitāne, Associate and Accelerator Program Manager About: Buildit is an accelerator that supports hardware and IoT startups in turning an idea into a tangible, market-worthy product. Sweetspot check size: $ 300K Traction metrics requirements: Must have an MVP or working prototype Thesis: At Buildit you don’t just get a product accelerator. You get a partner in development that’s invested in seeing you succeed. Program Specifics: What does the curriculum include? What skills and knowledge areas does the program focus on? “​Curriculum topics: Smart prototyping, design for manufacturing, business modelling and pricing, efficient marketing with 0$ budget, pitch trainings, Fundraising & Legalese, IP protection, Sustainability and ESG reporting since Day 1…The program focuses on setting up the startup so that the team can raise their next investment rounds – clear plans and milestones, team competencies, IP rights, etc.” Mentorship and Network: Who are the mentors and what are their backgrounds? “​Mentors are of various profiles, and the group constantly changes as we are on a constant lookout for fresh perspectives. Mentors usually are or have been founders themselves, some are investors and some are specialists in their own areas (lawyers, engineers, consultants). What networking opportunities exist within the program? What kinds of professionals will they have access to? “​Mentors (a long list of 300 experts, compiled over years) and investors mainly.” Success Stories and Track Record: What notable companies have gone through the program?” “​We’re proud [amongst others] of STRIGA, Naco Technologies, Alternative Plants to name a few.” Post-Program Support: What kind of support (if any) is offered to startups after they complete the program? “​In most cases, we invest in our program graduates. Participants are pre-selected in a way where we see high potential of a Buildit investment case. The network is quite widespread geographically and industry-wise, nevertheless, relatively closely knit, therefore, we see high likelihood in portfolio company founders helping each other + we try to host annual in-person events to facilitate relationship building and rekindling.” Aviatra Accelerators About: Aviatra Accelerators empowers women entrepreneurs to start and grow their businesses faster and with more confidence. Thesis: We offer classes, coaching and community to women entrepreneurs. Our program “Capital-Ready Women” helps women get ready to successfully access capital from lenders and investors. "Our newest program for women entrepreneurs is Capital-Ready Women. It’s designed to help women get ready to successfully access capital from lenders and investors. It begins with our Free Fundability Assessment, available at FreeFundabilityAssessment.com." Union Kitchen About: Union Kitchen is a Food Business Accelerator. We build successful food businesses by bringing together our Accelerator with access to our Kitchen, Distribution, and Stores. Since starting in 2012, we’ve worked with over 650 food businesses, including DC favorites Compass Coffee, Snacklins, Mas Panadas, Caribe and many more! Union Kitchen also launched an investment fund in 2022. Are you ready to build your successful food business? Apply here: https://unionkitchen.com/apply Lair East Labs About: Lair East Labs is an early-stage venture firm based in New York City that empowers founders to expand internationally. At the heart of Lair East Labs comes our founder-centric accelerator program. Each cohort intakes 10 startups to receive curriculum content, mentorship network, office space, and investments of up to $150K. Our 4-month program combines the best of two worlds: learning from alum founders and gaining access to a diverse mentor and investor network with extensive experience navigating the Asian markets. Our portfolio companies have raised $65 million of funding after completing the accelerator. For more information, please visit https://laireastlabs.com Traction metrics requirements: Must have a MVP for software-centric startups or associated IP or research paper to validate the technology for DeepTech companies Arkley Brinc About: Arkley is an Accelerator VC that focuses on early-stage hardware startups to help them grow from prototype to IPO. Thesis: We are the most individual acceleration program on earth. Representing the bespoke model: We do what’s necessary to make you do what’s impossible. We are working with startups as a team member in order to achieve agreed operational and financial goals by using Arkley’s ecosystem. Accelerator Centre About: Accelerator Centre is a network of facilities dedicated to developing and commercializing technology startups. Thesis: The Accelerator Centre is an award-winning startup accelerator dedicated to building and scaling sustainable, globally competitive companies and giving startups the highest probability of long-term success. Dreamit Ventures About: Dreamit is a venture fund and growth-focused accelerator for Urbantech, Securetech, and Healthtech startups Sweetspot check size: $ 1M Traction metrics requirements: Seek healthtech and securetech companies with early commercial traction and proven product market fit that are focused on scaling. Thesis: Dreamit Ventures is a fund and growth program focused on startups with revenue or pilots that are ready to scale. Capital Innovators About: Capital Innovators provides top-ranked accelerator programs, venture fund management, and corporate innovation. It manages private and corporate venture funds focused on technology, consumer products, and energy innovations. Capital Innovators has helped scale 188 companies and assisted them in raising over $600 MM in follow-on investment and creating over 2,900 jobs. HARDS About: The First Brazilian Software/Hardware Accelerator Thesis: How do we acceerate your startup? It’s easy .. years of experience from our investors, partners, mentors, advisors and managers in hardware and software development, added to the experience of accelerating Darwin Startups! Village Capital About: Our mission is to reinvent the system to back the entrepreneurs of the future. Our vision is a future where business builds equity and long-term prosperity. gener8tor About: gener8tor is a nationally ranked, concierge accelerator that invests in high-growth startups. Sweetspot check size: $ 100K AngelPad About: AngelPad is a seed-stage accelerator program that finds product market fit, defining a target market to get first validation for a company. Sweetspot check size: $ 1M Thesis: Find awesome companies with founders we like to work with and spend three very intense months with them. The Alchemist Accelerator About: The Alchemist Accelerator is a venture-backed initiative focused on accelerating startups whose revenue comes from enterprises. Sweetspot check size: $ 75K Traction metrics requirements: Looking for companies from the idea stage to 15K+ in MRR FounderFuel About: FounderFuel is a mentor-driven venture accelerator that helps new startups make progress on the venture path. Sweetspot check size: $ 120K Thesis: We ignite the global success of companies by developing the leaders behind them. Amplify About: Amplify is a pre-seed fund in Venice, CA dedicated to backing strong teams at the earliest stages and supporting from first check to exit. Thesis: At Amplify, our vision is clear — help passionate technology entrepreneurs grow their startups into strong, scalable & successful companies. Flashpoint About: Flashpoint is an international tech investment manager with approx. $400 million AUM focused on international tech companies originating out of Europe and Israel. Flashpoint manages five venture funds: three VC funds, a Venture Debt Fund, and a Secondary Fund. The firm is headquartered in London and has offices in New York, Tel-Aviv, Budapest, Warsaw, Riga, and Nicosia. Global Insurance Accelerator About: The Global Insurance Accelerator is a mentor-driven business accelerator designed to foster innovation in the insurance industry through startups targeting the global insurance industry. We take in early-stage companies who are building solutions that support the insurance industry. We provide seed funding, networking with our mentors, a desk in our beautiful office in Des Moines, 100-days of on-site support and time on stage at the Global Insurance Symposium with hundreds industry executives in attendance. This is not your typical accelerator. Our investors are insurance carriers, our mentors are primarily insurance executives. Startups participating in our program find product-market fit and do customer discovery faster than they could ever do at any other accelerator. We are a strategic partner. The Deal: Investment with founder-friendly terms: $50k in the form of a post-money SAFE that converts to 5% of the company; no board seat Curated meetings with 75+ insurance-focused mentors in program; dozens more after Final presentations @ Global Insurance Symposium (~600 attendees in 2019) Additional exposure at industry conferences One-bedroom, residential-style suite at the Staybridge Suites, with amenities including daily breakfast, nightly dinner, gym, pool, and laundry (in-person nights / 2-minute walk from GIA) Office space for your entire team Typical accelerator perks (deals on hosting, marketing tools, etc) Stocked fridge at the GIA office Founders need to be in Des Moines during the program, business-related travel is supported Hardware.co About: HARDWARE.co is a global community and accelerator for entrepreneurs, industry professionals and makers dedicated to the creation of innovative hardware products and companies. HARDWARE.co is made out of several interconnected components to serve, maintain, and grow our community. The HARDWARE.co Accelerator, Lab, Meetups, and Online Platform form a multichannel resource to give community members the opportunity to create leading products and companies. We support every stage of hardware development – from ideas, to prototypes, to investments, and beyond. Looking for Investors? Try Visible Today! Use Visible to manage every part of your fundraising funnel with investor updates, fundraising pipelines, pitch deck sharing, and data rooms. Raise capital, update investors, and engage your team from a single platform. Try Visible free for 14 days. Related Resource: Accelerator connect profiles in our Fundraising CRM

Venture capital (VC) has become an instrumental force in driving innovation and growth across various industries, and healthcare is no exception. Within the article, we’ll cover venture capital within the healthcare sector, its significance, the healthcare investment landscape, the benefits it brings, and the types of healthcare companies that VCs actively invest in. The Role of Venture Capital in Healthcare Venture capital serves as a catalyst for progress in the healthcare industry. By providing funding and expertise to early-stage and high-potential companies, VCs help drive innovation, accelerate research and development, and bridge the gap between groundbreaking ideas and commercial success. With their financial resources and industry knowledge, venture capital firms empower healthcare entrepreneurs to transform their visions into tangible solutions that improve patient care, enhance medical outcomes, and reshape the healthcare landscape. The Healthcare Investment Landscape VC firms are actively seek opportunities in a wide range of healthcare sectors, including biotechnology, medical devices, healthcare IT, and healthcare services. Despite a slight slowdown, venture capital funds managed to raise an impressive amount of nearly $22 billion in 2022, making it the second-largest fundraising year on record. The positive momentum continued into Q1 2023, with the fundraising pace accelerating slightly to $6.8 billion. Notably, early-stage investors showed a preference for seed and Series A investments, indicating their confidence in backing promising startups at the initial stages of their growth journey. As venture capital funds still have a significant amount of capital yet to be deployed in the healthcare sector, it is expected that top companies will continue to attract investor interest. However, this interest is likely to come with investor-driven valuations, as investors seek to balance risk and returns in an increasingly competitive market. The abundance of available capital presents a unique opportunity for healthcare startups to secure the necessary funding to fuel their growth and innovation. Although the overall investment pace experienced a slowdown in Q1, with investors navigating macro uncertainty and market downturns, they remained focused on supporting their promising later-stage portfolio companies. This support was evident through insider extensions and bridge rounds, allowing companies to bridge the funding gap and continue their growth trajectory. Looking ahead to the second half of 2023, there is an expectation of an uptick in larger, outsider-led funding rounds. These rounds may see valuations being adjusted to better reflect market conditions, potentially resulting in down rounds or flat “engineered” rounds that include incentives for new investors. “CVS is betting big on primary care. Here’s a breakdown of its 5 biggest deals of 2023. CVS is aggressively investing in and acquiring digital health companies while competitors retrench. We dig into the pharmacy giant’s recent primary care moves.” Anand Sanwal, founder of CBInsights, Newsletter Benefits of Venture Capital in Healthcare Venture capital firms play a pivotal role in shaping the future of healthcare by providing critical funding, expertise, and strategic guidance. Access to Capital One of the primary advantages of venture capital in healthcare lies in its ability to bridge the funding gap for early-stage companies. Healthcare ventures often require substantial financial resources to advance research, conduct clinical trials, and navigate complex regulatory landscapes. Expertise and Guidance Beyond financial support, VC firms bring a wealth of industry knowledge and experience to the table. Seasoned investors offer strategic guidance, mentorship, and operational expertise to healthcare entrepreneurs. Their deep understanding of the sector helps startups refine their business models, overcome regulatory hurdles, and optimize their commercialization strategies. The invaluable insights and advice provided by venture capitalists significantly enhance the chances of success for healthcare ventures. Validation and Credibility Securing VC funding serves as a powerful validation for healthcare startups. The rigorous due diligence process conducted by venture capitalists not only validates the viability of the company’s products or services but also enhances its credibility in the eyes of other stakeholders. This validation opens doors to additional funding opportunities, attracts potential partners and customers, and positions the company as a trusted player in the industry. The stamp of approval from venture capitalists acts as a strong endorsement, driving confidence in the startup’s vision and mission. Network and Partnerships Venture capital firms possess extensive networks within the healthcare ecosystem, comprising key players such as healthcare providers, pharmaceutical companies, regulatory bodies, and industry experts. By partnering with venture capitalists, startups gain access to these invaluable networks, which can facilitate collaborations, strategic partnerships, and distribution channels. The connections offered by VCs are instrumental in accelerating market adoption, expanding reach, and tapping into new markets. The network effect of venture capital opens up a world of possibilities for healthcare startups to thrive and make a significant impact. Long-Term Support and Sustainability Unlike short-term investors or traditional lenders, venture capital firms typically take a long-term view when investing in healthcare companies. They are committed to supporting startups throughout their growth journey, providing follow-on funding rounds as needed. This long-term support ensures the sustainability and continuity of healthcare ventures, enabling them to focus on innovation, research, and achieving long-term objectives. The stability and backing of venture capitalists give healthcare startups the confidence and resources to navigate challenges and pursue ambitious goals. Types of Healthcare Companies VCs Invest In Venture capital firms invest in a wide array of healthcare companies, each with its unique value proposition and growth potential. These are some of the top healthcare industries that are attracting VC investment along with some other trending industries as well Biotech Companies Biotech companies leverage biological processes and living organisms to develop innovative therapies, diagnostic tools, and research solutions. VCs invest in biotech firms due to the tremendous potential for groundbreaking discoveries, the ability to address unmet medical needs, and the prospects of substantial returns on investment. Subindustries within Biotech include: Gene Editing: Companies developing innovative gene editing technologies like CRISPR-Cas9, enabling precise modification of genetic material for potential therapeutic applications. Immuno-oncology: Companies focusing on immunotherapies that enhance the body’s immune system to target and fight cancer cells, including cellular therapies and immune checkpoint inhibitors. Precision Medicine: Companies that leverage genomic data and advanced analytics to develop personalized medicine approaches, tailoring treatments to individual patients based on their genetic makeup, biomarkers, and other unique characteristics. Check out our investor list article, The Top VCs Investing in BioTech. Medical Device Companies Medical device companies focus on developing advanced medical technologies and devices that enhance patient care, improve treatment outcomes, and streamline healthcare delivery. These companies often require significant financial backing for research, development, clinical trials, and regulatory approvals. VCs invest in medical device companies to support their growth and innovation in this rapidly evolving sector. Subindustries within Medical devices include: Minimally Invasive Surgical Devices: Companies develop innovative medical devices and instruments for minimally invasive surgeries, offering improved patient outcomes, reduced recovery time, and enhanced surgical precision. Digital Health Monitoring Devices: Companies create wearable devices and remote monitoring technologies, enabling continuous tracking of vital signs, remote patient monitoring, and real-time health data analysis. Artificial Intelligence (AI) in Medical Imaging: Companies combining AI and medical imaging to improve diagnostic accuracy, automate image analysis, and assist radiologists in interpreting medical images such as X-rays, MRIs, and CT scans are attracting investment. Healthcare IT Companies Healthcare IT companies play a vital role in transforming the delivery of healthcare by leveraging technology to address industry challenges and improve overall outcomes. They develop innovative solutions that enhance clinical workflows, optimize administrative tasks, ensure data security and privacy, and facilitate seamless interoperability among various healthcare stakeholders. They do this through creating software, systems, and platforms that streamline processes, improve patient care, enhance data management, and enable efficient communication within the healthcare ecosystem. VCs are attracted to companies that bring innovative and disruptive solutions to the industry, leveraging technologies like AI, machine learning, and big data analytics. These solutions have the potential to transform healthcare practices and enhance patient care. Additionally, companies that focus on cost reduction and operational efficiency by automating tasks and streamlining workflows are interesting to VCs. These companies enable healthcare providers to optimize resources, minimize errors, and achieve cost savings. VCs also acknowledge the importance of regulatory compliance and data security in the healthcare sector. Companies specializing in robust cybersecurity measures and privacy protection tools are in high demand. Subindustries within Healthcare IT include: Telehealth Platforms: Companies developing telehealth platforms, telemedicine apps, and remote patient monitoring solutions to support virtual consultations, remote diagnostics, and remote care delivery. Health Data Analytics: Companies specializing in advanced data analytics and artificial intelligence to derive insights from healthcare data are receiving investments, supporting population health management, personalized medicine, and improved clinical decision-making. Cybersecurity and Privacy: Companies focusing on healthcare data security, patient privacy protection, and compliance with regulations such as HIPAA. These companies develop solutions to safeguard electronic health records, secure data sharing, and prevent data breaches. Healthcare Services Companies Healthcare services companies encompass a wide range of organizations dedicated to providing essential healthcare services to individuals and communities. These companies, can include hospitals, clinics, nursing homes, home healthcare providers, and diagnostic services. VCs recognize the increasing demand for healthcare services due to factors such as population aging and rising healthcare needs. Investing in healthcare services companies allows VCs to capitalize on this growing market and generate favorable financial returns. Moreover, VCs seek out healthcare services companies that bring innovation and differentiation to the industry. Companies that introduce novel care delivery models, leverage technology advancements and enhance patient experiences attract VC investments. By investing in such companies, VCs aim to support the transformation of healthcare services delivery and improve patient outcomes. Subindustries within Healthcare services companies include: Digital Health Platforms: Investment is flowing into companies offering comprehensive digital health platforms, integrating electronic health records (EHRs), patient engagement tools, telehealth capabilities, and data analytics to improve care coordination, patient outcomes, and operational efficiency. Home Healthcare Services: Companies providing innovative home healthcare services, including remote monitoring, virtual consultations, and personalized care delivered in the comfort of patients’ homes, are attracting investment. Mental Health Services: Investments are being made in companies focusing on digital mental health solutions, such as online therapy platforms, mental health apps, and virtual support networks, to address the increasing demand for accessible and convenient mental healthcare. 6 Venture Capital Firms Investing in Healthcare Numerous firms are actively investing in healthcare innovation and shaping the future of the industry. Below we’ll explore six notable venture capital firms that have made significant contributions to the healthcare sector. These VCs bring a wealth of experience, expertise, and financial resources to support the growth and success of healthcare startups and companies. Their strategic investments have helped drive advancements in biotechnology, medical devices, healthcare IT, and healthcare services, propelling the industry forward and improving patient care. 1. Felicis Ventures Felicis Ventures is a boutique VC firm that backs iconic companies reinventing existing markets and creating frontier technologies. At Felicis Ventures we back the world’s iconic companies of today and tomorrow. We have a passion for products and out-of-the-box thinking. Company Stage: Seed, Series A, Series B, Growth ​​Location: Menlo Park, California, United States Portfolio Highlights Guild Predibase Operant 2. New Enterprise Associates New Enterprise Associates is a global venture capital firm investing in technology and healthcare. NEA’s proven investment strategy spans all stages of a company’s growth, from seeding innovations in emerging markets to funding early-stage companies in high-growth markets to fueling the growth of market leaders. Any stage of growth is the right stage to partner with NEA. We can add value and offer expert guidance throughout your company’s lifecycle—whether your big idea is at its inception or has already progressed to be a viable reality. Company Stage: Pre-Seed, Seed, Series A, Series B, Series C, Growth Location: Menlo Park, California, United States Portfolio Highlights PixieBrix Regression Games Timescale 3. BoxGroup Investing in dreams at the earliest stage with companies like Plaid, Airtable, Ro, Ramp, and many more. We support companies based on conviction in the team. We believe in “founder market fit” – the concept that certain teams are able to unlock specific markets. This is the first step to get to “product market fit.” Ideas tend not to be equal opportunity which means that it requires the right team to bring a vision to life. Company Stage: Pre-Seed, Seed, Series A ​​Location: New York, United States Portfolio Highlights Plaid Airtable Ramp 4. SV Health Investors SV Health Investors, formerly SV Life Sciences, is a leading healthcare and life sciences venture capital and growth equity firm. Their goal is to transform healthcare – one investment at a time – by supporting the entrepreneurs who create and build breakthrough companies and treatments. In biotechnology, we are venture-focused. In healthcare services and digital health, we seek growth equity opportunities. In medical devices, we pursue a range of opportunities from early stage/venture-focused to early commercialization to growth equity. Company Stage: Pre-Seed, Seed, Series A, Series B, Growth ​​Location: Boston, Massachusetts, United States Portfolio Highlights Therini Bio Nimbus Therapeutics Quell Therapeutics 5. Elevate Capital For some populations, there is a noticeable gap in gaining access to investment capital. These aspiring entrepreneurs are both underserved and overlooked, yet they have the courage and vision it takes to start and scale a business. At Elevate Capital, we believe there is a tremendous opportunity to invest early and offer mentorship to these entrepreneurs. We provide the venture capital and guidance they need to turn their startups into great companies. Elevate Capital is the nation’s first institutional venture capital fund that specifically targets investments in underserved entrepreneurs—such as women and ethnic minorities, or those with limited access regionally to capital and opportunities. We support visionaries with disruptive ideas and products through two specialized investment vehicles. Company Stage: Pre-Seed, Seed, Series A Location: Portland, Oregon, United States Portfolio Highlights TrovaTrip The Bacon HacWare 6. StandUp Ventures StandUp Ventures is a Toronto-based, seed-stage venture capital fund focused on investing in high-growth ventures with at least one female founder in a key leadership role. We believe that women-led companies think outside the box, recruit great talent, and serve bigger markets. We invest in seed-stage, for-profit technology companies with at least one woman in a C-level leadership position within the company and an equitable amount of ownership. We’re dedicated to curious, confident, and fearless entrepreneurs building ground-breaking technology companies. We partner with ambitious founders across Canada to break through from Seed to Series A. Company Stage: Seed ​​Location: Toronto, Canada Portfolio Highlights ODAIA Acerta Analytics TealBook 7. Civilization Ventures Civilization Ventures is a venture capital firm focused on cutting edge innovations in exponential health tech and biology. Company Stage: Seed, Series A, Series B ​​Location: San Francisco, California, United States Portfolio Highlights Foresight Diagnostics Evonetix Infinimmune Partner With VCs Investing In The Future of Healthcare with Visible Venture capital has emerged as a powerful catalyst for progress in the healthcare industry. By bridging the funding gap, providing expertise, and fostering innovation, VCs enable healthcare startups to thrive and create transformative solutions. Funding not only drives financial success but also cultivates a future where patient care is enhanced, medical outcomes are improved, and the boundaries of what is possible in healthcare are continually pushed. Check out Visible’s investor database, Connect, to find VCs investing specifically within the healthcare space. Also here are two more of our list articles, 10+ Founder Friendly Venture Capital Firms Investing in Startups The 12 Best VC Funds You Should Know About Companies should leverage VCs expertise and resources to accelerate their growth, navigate regulatory challenges, and scale their impact. Also, get access to Visible for free for 14 days: https://app.visible.vc/create-account

Since launching Visible Data Rooms last month, thousands of founders have leveraged them to distribute fundraising assets and data to their current and potential investors. Most Popular Data Room Folders Using our own data, we were able to pull the most popular “folders” created so far. Check them out below: Legal and Corporate Docs – Confirms your business is a legitimate company (incorporation docs, formation docs, IP, etc.) Financials – In the early days, keep this section light – especially around projections. As you scale from pre-seed to series A, this section will become more important. Be sure the data here matches your pitch decks, other documents, etc. Team and Stakeholders – This generally goes hand-in-hand with “Legal and Corporate Docs.” This helps investors confirm you have employee structure, contracts, signed PIAAs, etc. Cap Table – Most, if not every investor, will ask for this. Investors want to understand if you have a “clean” cap table. Market Data – Considered a “nice to have” but can still be valuable. Later-stage investors will likely do their own analysis and research here. Every business and investor is different. Be sure to build and share the information that is right for your business. Build a Data Room with Visible Visible Data Rooms integrate directly with Visible Decks, Dashboards, and Updates. Manage every aspect of your fundraise with Visible and spend more time on what matters most — building your business. Give it a try here.

The Extended reality (XR) industry which includes Agumentented Reality (AR), Virtual reality (VR), and mixed reality (MR) is changing the way we experience the world by creating an immersive experience in a virtual world (VR) or merging the real and virtual worlds together (AR). Immersive technologies has become a focus for some of the largest tech companies and investors alike thanks to rapid advancements of AR and VR technology, increased popularity within gaming, and new innovations such as the introduction of the metaverse. These technologies are also now being developed for a wide range of uses, such as industrial, communication, training exercises, and gaming. Statista forcasted the global AR, VR, and mixed reality (MR) market to reach 30.7 billion U.S. dollars in 2021, rising to close to 300 billion U.S. dollars by 2024. There’s never been a better time for AR and VR, spiking the interest of startups as well as investors looking to take advantage of the market. Visible looks to help connect founders with investors all over the world. Below, we highlight 15 of our favorite AR/VR venture capitalists. Search through these investors and 13,000+ more on Visible’s Connect platform. Related Resource: 14 Gaming and Esports Investors You Should Know Bloomberg Beta Location: San Fransisco & New York City, California, United States About: Invests in powerful ideas that bring transparency to markets, achieve global scale, with strong, open cultures that embrace technology. Thesis: We believe work must be more productive, fulfilling, inclusive, and available to as many people as possible. Our waking hours must engage the best in us and provide for our needs and wants — and the world we live in too often fails to offer that. We believe technology startups play an essential role in delivering a better future. We can speed the arrival of that future by investing in the best startups that share these intentions. Investment Stages: Pre-Seed, Seed, Early Stage Recent Investments: Fiddler AI Chef Robotics Weights and Biases Tonic Ware Related Resource: The 11 Best Venture Capitals in San Francisco Dune Ventures Location: New York, New York, United States About: An early stage venture firm backing the founders shaping interactive content. Thesis: Dune Ventures: a new early stage venture firm investing in gaming, esports, and interactive technology. We invest globally and back founders building content studios, social platforms and infrastructure that will define the next generation of entertainment. Investment Stages: Pre-Seed, Seed, Series A, Series B Recent Investments: Starform Ramen VR Medal DreamCraft IndiGG HCVC Location: San Francisco, California, United States About: HCVC is the first global venture capital fund dedicated to full-stack and hardtech startups. Thesis: We are looking for outstanding founders, building game-changing products or technologies and targeting large potential markets Investment Stages: Pre-Seed, Seed, Series A Recent Investments: Anello Photonics Augmenta Giraffe360 Span Full Speed Automation Intel Capital Location: Santa Clara, California, United States About: Intel Capital is a force multiplier for early-stage startups – inspiring and investing in the future of compute via investments in Cloud, Silicon, Devices, and Frontier. Investment Stages: Pre-Seed, Seed, Series A, Series B, Growth Recent Investments: 3D Glass Solutions Grip Security Landing AI Astera Labs Untether AI 7 Percent Ventures Location: London, England, United Kingdom About: Early stage tech investing in UK, EU & US. Seeking the most ambitious founders with deeptech or transformative moonshot ideas to change the world for the better Thesis: We invest in early stage tech startups which represent billion dollar opportunities. Investment Stages: Pre-Seed, Seed, Series A Recent Investments: Vauban Dent Reality Breeze Humanity Safely You Related Resource: 15 Venture Capital Firms in London Fueling Startup Growth Type One Ventures Location: Los Angeles, California, United States About: We are a venture capital fund investing in Seed and Series A startups with operational expertise, capital, and industry resources. The startups we invest in have dynamic teams and are building technical products with the capability to progress humanity forward. At Type One, we help founders harness their superpowers so they can change the world. Thesis: Progressing humanity towards a type one civilization Investment Stages: Pre-Seed, Seed, Series A, Growth Recent Investments: Emerge RoboTire Emerge Gravitics Radian GFR Fund Location: San Francisco, California, United States About: GFR Fund is a venture capital fund that invests in early-stage startups that are disrupting the consumer entertainment industry Investment Stages: Pre-Seed, Seed, Series A Recent Investments: Phiar Technologies Omeda Studios ProGuides BoostVC Location: San Mateo, California, United States About: Boost VC is a family of founders making Sci-Fi a Reality. Twice a year Boost VC invests in 20+ startups. The three month accelerator program includes housing and office space in Silicon Valley. Portfolio consists of 150+ companies, who have raised over $200M after joining Boost VC. Investment Stages: Accelerator, Pre-Seed, Seed, Series A Recent Investments: FitXR Alta Sidequest JigSpace Giblib Tvori Tribe WXR Fund Location: Marina del Rey, California, United States About: The WXR Fund invests in gender diverse seed stage companies that are transforming business and human interaction with spatial computing (VR/AR) and artificial intelligence (AI). We are the only venture firm at the intersection of the next wave of computing and female founders. Thesis: The WXR Fund invests in two of the greatest opportunities of our time: the next wave of computing + female entrepreneurs. Investment Stages: Accelerator, Pre-Seed, Seed Recent Investments: Obsess mpathic.ai Scatter Prisms of Reality Embodied Labs The Venture Reality Fund Location: San Francisco, California, United States About: The Venture Reality Fund drives innovation and investment at the intersection of immersive, spatial, and intelligent computing for consumer and enterprise sectors Thesis: Investing in Early Stage VR and AR Startups Investment Stages: Series A, Series B Recent Investments: Phiar Technologies Obsess Doorstead Lux Capital Location: Silicon Valley, California, United States About: VC based in NYC and Menlo Park investing in counter-conventional, early-stage science and tech ventures, with $2.4B AUM across 8 funds. Thesis: Lux Capital invests in emerging science and technology ventures at the outermost edges of what is possible. Investment Stages: Seed, Series A, Series B Recent Investments: Runway Clarafi A-Alpha Bio Benchling Plexium OCA Ventures Location: Chicago, Illinois, United States About: OCA Ventures is a venture capital firm focused on equity investments in companies with dramatic growth potential, primarily in technology Investment Stages: Seed, Series A, Series B Recent Investments: GrayMatter Robotics Balto Osso VR Placer.ai VeriSIM Life Ludlow Ventures Location: text About: VC is a customer service business. Whether it’s testing product, pushing pixels, leveraging our network, or forcing people to download your app, we’re here to help. You make our dream jobs possible and we’re forever thankful for that. Thesis: We believe in VC without ego. We invest with insane conviction and love backing the right teams when others think it’s too early. Investment Stages: Seed, Series A Recent Investments: Point One Navigation Headout Notarize Lev Density Craft Ventures Location: San Francisco, California, United States About: Craft Ventures is an early-stage venture fund specializing in the craft of building great companies. Thesis: We invest in outstanding teams that are creating market-defining products. Investment Stages: Seed, Series A, Series B Recent Investments: Trusted AgentSync TryNow Voiceflow ClickUp Creandum Location: Stockholm, Stockholms Lan, United States About: Creandum is a leading European early-stage venture capital firm investing in innovative and fast-growing technology companies. Thesis: We are a venture capital advisory firm powering innovation from Stockholm, Berlin, and San Francisco. Investment Stages: Pre-Seed, Seed, Series A, Series B Recent Investments: Lokalise Pleo Meditopia Seon Craft Docs Related Resource: Atlanta’s Hottest Venture Capital Firms: Our Top 9 Picks 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 AR/ VR investors here. After learning more about them with the profile information and resources given you can reach out to them with a tailored email. To help craft that first email check out 5 Strategies for Cold Emailing Potential Investors. 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.

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: All Encompassing Startup Fundraising Guide 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 are a founder in Germany, check out our list of venture capital investors in your area below: 1. Global Founders Capital As put by their team, “Global Founders Capital is a globally oriented, stage agnostic venture capital firm that empowers gifted entrepreneurs worldwide. Global. We support founders in all geographies. Stage agnostic. We back companies across all stages and throughout the lifecycle. Operational. Our platform offers founders all the support they need to scale.” Learn more about Global Founders Capital by checking out their Visible Connect profile → Location Global Founders Capital is headquartered in Berlin but they invest in companies across the globe. Related Resource: 8 Most Active Venture Capital Firms in Europe Preferred industries GFC is agnostic in its investment approach and will back companies across many industries. Portfolio Highlights Some of Global Founders Capital’s most popular investments include: Canva Slack Delivery Hero Company Stage GFC is stage agnostic and will invest in companies across all stages. 2. HV Capital As put by the team at HV Capital, “Founded in 2000, HV Capital has a deep track record of spotting European winners at seed stage: HV Capital backed the first generation of German billion-dollar businesses. With over € 2.1bn under management, HV Capital has invested in about 225 disruptors from every industry, partnering with them for the long-term and sustained growth that has led to some of the most successful businesses in the German market. From early stage to growth, HV Capital has the experience to know what makes a leader – which is why HV Capital is the leading all-stage investor in the German market, and one of the leading investors in Europe.” Learn more about HV Capital by checking out their Visible Connect profile → Location HV Capital has offices in Berlin and Munich. HV Capital funds companies across Europe. Related Resource: Berlin Venture Capital Investors and Accelerators to Know Preferred industries HV Capital is agnostic in its investment approach and backs companies across many sectors. Portfolio Highlights Some of HV Capital’s most popular investments include: Delivery Hero HelloFresh Tourlane Company Stage As put by their team, “HV Capital leads seed rounds from €0.5-5m, growth stage investments of up to €20m, and follow-on investments with up to €100m per company. HV Capital supports companies for 10 years or longer and deploys capital at all growth stages.” 3. High-Tech Grunderfonds As put by their team, “HTGF is a venture capital investor for innovative technologies and business models. We successfully support the best founders whose ideas can revolutionise entire industries and improve people’s lives – from seed to exit. As a seed investor, we have financed 700 start-ups in the industrial tech, digital tech, life sciences and chemicals sectors. We have overseen more than 160 exits, including IPOs. When founding your company together with us, you benefit from an experienced partner at your side.” Learn more about High-Tech Grunderfonds by checking out their Visible Connect profile → Location HTGF has offices in Bonn and Berlin and invests in companies that are headquartered in Germany. Preferred industries HTGF traditionally invests in companies in the following industries: Digital tech Industrial tech Life sciences Chemicals Portfolio Highlights Some of High-Tech Grunderfonds’ most popular investments include: 4GENE Anybill Covalo Company Stage HTGF is focused on seed-stage investments Related Resource: Seed Funding for Startups 101: A Complete Guide 4. Earlybird Venture Capital As put by their team, “Founded in 1997, Earlybird invests in all development and growth phases of technology companies. Among the most experienced venture investors in Europe, Earlybird offers its portfolio companies not only financial resources but also strategic support plus access to an international network and capital markets. The Digital West Fund focuses primarily on early stage digital technology opportunities in GSA, Nordics, UK, Benelux, France and Southern Europe, while the Digital East Fund is focused on early stage ICT investment opportunities in Eastern Europe and Turkey, being the leading tech VC in this region. The Health Fund focuses on early and later stage opportunities in digital health, medical devices, diagnostics, enabling technologies and biopharma across Europe. Earlybird-X backs deep tech innovation, including robotics, AI, and mobility, at the earliest stages – tapping into a network of leading European universities.” Learn more about Earlybird by checking out their Visible Connect profile → Location Earlybird has offices in Berlin and Munich and invests in companies across all of Europe. Preferred industries Earlybird invests in companies across many sectors and industries depending on the fund. Related Resource: 10 VC Firms Investing in Web3 Companies Portfolio Highlights Some of Earlybird’s most popular investments include: Hive ShapeShift Aiven Company Stage Earlybird invests across many stages but is focused on early-stage companies. 5. Point Nine Capital As put by the team at Point Nine Capital, “What we do: We invest mostly at seed (AKA the v0.9 stage). Occasionally we make pre-seed, “Seed II”, or “early Series A” investments. Our initial ticket size is €0.5-5 million. If you raise a seed round from us, ‍we commit to participating in your Series A. We’re geo-agnostic. Europe is our home market, but 20-30% of our investments are in the US, Canada, and other countries.‍ We obsess about helping you win, and it shows in the numbers: More than 65% of the companies that we back at the seed stage raise a Series A, and more than ten are already at $100M+ ARR (and counting).” Learn more about Point Nine Capital by checking our their Visible Connect profile → Location As put by their team, “We’re geo-agnostic. Europe is our home market, but 20-30% of our investments are in the US, Canada, and other countries.” Preferred industries Point Nine Capital is focused on B2B SaaS and Marketplace companies. Portfolio Highlights Some of Point Nine Capital’s most popular investments include: Algolia Delivery Hero Loom Company Stage As put by their team, “We invest mostly at seed. Occasionally we make pre-seed, “Seed II”, or “early Series A” investments. Our initial ticket size is €0.5-5 million. If you raise a seed round from us, ‍we commit to participating in your Series A.” 6. Cherry Ventures As put by their team, “Cherry Ventures is an early-stage venture capital firm led by a team of entrepreneurs with experience building fast-scaling companies such as Zalando and Spotify. The firm backs Europe’s boldest founders, usually as their first institutional investor, and supports them in everything from their go-to-market strategy and the scaling of their businesses.” Learn more about Cherry Ventures by checking out their Visible Connect profile → Location Cherry Ventures has an office in Berlin and typically invests in companies across Europe. Preferred industries Cherry Ventures invests across all sectors and industries. Portfolio Highlights Some of Cherry Ventures’ most popular investments include: FlixBus Infarm Forto Company Stage As put by their team, “We invest throughout Europe and in pre-seed and seed-stage startups.” 7. b2venture As put by their team, “b2venture is an early-stage venture capital firm supported by an unparalleled community of angel investors, bringing unique expertise, entrepreneurial experience, and hands-on support to our portfolio companies. We draw on the collective power of our angel investor community to help us find and foster unique entrepreneurs, maverick ideas, and outlier companies from all over Europe. We invest in the pre-seed, seed and across later stages as well.” Location b2ventures has offices across Europe and invests in companies across Europe. Preferred industries b2ventures is industry agnostic and invests across many sectors and industries. Related Resource: 17 Travel & Tourism VC Investors that can Fund Your Startup Portfolio Highlights Some of b2ventures most popular investments include: Raisin Sumup Ledgy Company Stage As put by their team, “b2venture is an early-stage venture capital firm. We invest in companies in the Pre-Seed, Seed, and Series A financing rounds with tickets from EUR 250’000 to EUR 5’000’000. Our average ticket size amounts to EUR 1’000’000. We are prepared to invest significantly in follow-on financing rounds in later stages of your company.” 8. Project A Ventures As put by their team, “Project A invests in digital companies that challenge the status quo of their industries. With over $1 billion of assets under management, we start with investments of $1 million to $10 million and reserve up to $30 million for future rounds, from pre-seed to Series A and beyond. In addition to capital, we provide our portfolio companies with exclusive operational support by our team of 120 in-house experts including all areas across product, growth, data and people. Since 2012 Project A has invested in more than 100 companies.” Learn more about Project A Ventures by checking out their Visible Connect profile → Location Project A Ventures has offices in Berlin and London and invests in companies across Europe. Preferred industries Project A fund’s digital companies — these can span many industries and business models as shown below: Portfolio Highlights Some of Project A’s most popular investments include: Trade Republic Kry Sennder Company Stage As put by their team, “We start with investments of $1 million to $10 million and reserve up to $30 million for future rounds, from pre-seed to Series A and beyond.” Take your fundraising efforts to the next level 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.

Understanding the intricacies of Schedule K-1 is crucial for founders and business owners navigating the tax landscape. Schedule K-1, an IRS tax form, plays a pivotal role in the financial and tax reporting for entities such as partnerships, S corporations, and trusts. Its primary function is to report each partner's share of income, deductions, and credits, allowing these amounts to be taxed at the individual level rather than at the corporate rate. This mechanism is a cornerstone of the "pass-through" taxation model, which is fundamental to entities that distribute earnings directly to their members​​. Getting to Know Schedule K-1 The Schedule K-1 plays a crucial role in aligning the financial outcomes of entities like partnerships, S corporations, and trusts with the tax obligations of their individual members or beneficiaries. This alignment is pivotal, ensuring that income, deductions, and credits are reported transparently and accurately, directly impacting the tax filings of individuals involved in these business structures. What is a K-1 Form? The Schedule K-1 form is an essential tool used by the IRS to manage the complex "pass-through" taxation process, where the tax liability passes from the entity to the individual. This form reports the share of income, deductions, and credits from entities such as partnerships, S corporations, trusts, and estates to the IRS. Its primary purpose is to ensure that the income earned by these entities is taxed at the individual level, reflecting each member's or beneficiary's share of the entity's financial activities during the tax year. This approach avoids the double taxation typically associated with corporate earnings, ensuring a fair and equitable tax treatment for all parties involved. Who Needs to Fill It Out? The requirement to complete and file a Schedule K-1 extends to a diverse group of taxpayers. Partners in partnerships, shareholders in S corporations, and beneficiaries of trusts and estates must report their share of the entity's income, deductions, and credits through this form. This broad applicability underscores the form's importance in tax filing, ensuring that individuals accurately report their income from various sources and comply with federal tax laws. Related resource: A User-Friendly Guide to Startup Accounting Difference Between W-2s and K-1s Understanding the distinctions between Schedule K-1 and W-2 forms is crucial for accurately navigating tax responsibilities. While employers issue W-2 forms to report wages, salaries, and other compensation paid to employees, Schedule K-1s serve a different purpose. K-1 forms report the income, losses, and dividends distributed by partnerships, S corporations, and other entities to their partners or shareholders. This fundamental difference highlights the diverse nature of income sources and the importance of correctly reporting them to the IRS. The K-1 form ensures that income from pass-through entities is taxed appropriately at the individual level. At the same time, W-2s cater to direct employment income, each playing a unique role in the broader tax reporting ecosystem. Types of K-1 Forms by Business Structure Navigating the tax implications of business earnings requires understanding the different Schedule K-1 forms applicable to various entity structures. Each type of entity—partnerships, S corporations, trusts, estates, and foreign alliances—uses a specific version of Schedule K-1 to report the income, deductions, and credits attributable to its members, shareholders, or beneficiaries. This differentiation ensures that each entity complies with tax regulations while providing accurate information for individual tax filings. K-1 Forms for Partnerships The Schedule K-1 form (Form 1065) is vital for partnerships. It details each partner's share of the business's income, deductions, and credits, allowing this information to be reported on individual tax returns. Partnerships, including general partnerships (GP), limited partnerships (LP), and limited liability partnerships (LLP), utilize this form to distribute the financial outcomes of the business operations to the partners, reflecting their respective shares according to the partnership agreement or the proportion of their investment​​. K-1 Forms for S Corporations S corporations use Schedule K-1 (Form 1120-S) to report each shareholder's proportionate share of the corporation's income, deductions, and credits. This form facilitates the pass-through taxation feature of S corporations, where the income flows through to the shareholder's tax returns. It's essential for ensuring that shareholders accurately report their income from the corporation, maintaining compliance with tax laws while avoiding double taxation of corporate earnings​​. K-1 Forms for Trusts and Estates Trusts and estates report income, deductions, and credits to their beneficiaries using Schedule K-1 (Form 1041). This form is crucial for managing income distribution from these entities, allowing beneficiaries to include this information in their tax filings. Using Schedule K-1 by trusts and estates ensures that the income is taxed at the beneficiary level, providing a precise tax reporting and compliance​​mechanism. K-1 Forms for Foreign Partnerships The Schedule K-1 forms issued to U.S. partners regarding foreign partnerships include additional requirements and considerations. These K-1 forms must account for income earned in other countries, and U.S. partners must report this foreign income on their tax returns. The complexity of tax treaties and international tax laws necessitates careful attention to accurately report foreign income and claim applicable tax credits or deductions. This ensures U.S. partners comply with U.S. tax obligations and the tax regulations of the foreign country where the income was earned. Things to Consider While Filling Your K-1 Filling out your Schedule K-1 is more than transferring numbers from business documents to a tax form. This process involves nuanced considerations and complexities that can significantly affect your tax responsibilities and financial planning. It's crucial to approach this task thoroughly and understand the underlying principles and implications to ensure accuracy and compliance with tax laws. Partnership Agreements Partnership agreements are vital in reporting income, losses, and other items on Schedule K-1. These agreements outline the distribution of profits and losses among partners and can significantly impact the figures reported on each partner's K-1. Different contracts may allocate income and losses based on various factors, such as the percentage of ownership, invested capital, or other agreed-upon terms. This allocation directly influences each partner's tax obligations, highlighting the importance of accurately reflecting the partnership agreement terms on Schedule K-1. Basis Calculation The concept of basis calculation is central to understanding your financial stake in an entity and its implications on your taxes. Your basis in the partnership, S corporation, or trust represents your investment in the entity for tax purposes. It's crucial to determine the taxable portion of distributions you receive and calculate gain or loss on the sale of your interest in the entity. The basis starts with your initial investment and is adjusted annually by factors including your share of the entity's income, losses, and distributions. Understanding and accurately calculating your basis ensures you report the correct income or loss on your tax return, avoiding potential tax issues. Reporting Income Accurate income reporting on Schedule K-1 is essential for compliance with tax laws and minimizing your tax liability. Incorrect reporting can lead to audits, penalties, and interest on unpaid taxes. It's imperative to carefully review the K-1 form to ensure that income, deductions, and credits are correctly reported according to the entity's financial statements and tax returns. Any discrepancies should be resolved before filing to avoid potential issues with the IRS. Accurate reporting is crucial for preventing penalties and ensuring that you pay the correct amount of tax, neither overpaying nor underpaying. How to File Your Schedule K-1 Filing your Schedule K-1 is essential in complying with tax regulations for individuals involved in partnerships, S corporations, trusts, and estates. Understanding the process and ensuring the inclusion of all necessary information is critical to a smooth and accurate filing experience. What Information Should You Include? When completing your Schedule K-1, there are several critical pieces of information you need to ensure completeness and accuracy in your filing: Entity Information: This includes the name, address, and EIN (Employer Identification Number) of the partnership, S corporation, trust, or estate. This identifies the entity with the IRS and ties your tax situation to the correct business entity. Partner or Shareholder Information: Your name, address, SSN (Social Security Number), or ITIN (Individual Taxpayer Identification Number) must be accurately reported. This information links you to the entity and ensures that your share of income, deductions, and credits is correctly reported to the IRS. Tax Year: Indicate the tax year for which the Schedule K-1 is being filed. This specifies the period for which the reported figures apply. Share of Income, Deductions, and Credits: Detail your specific share of the entity's income, deductions, and credits. This section is the core of the Schedule K-1, outlining what needs to be reported on your tax return. It includes various types of income, such as rental income, interest, dividends, capital gains, and deductions and credits you're entitled to claim. Capital Account Analysis: If applicable, include changes in your capital account for the year. This involves reporting contributions, withdrawals, and any changes in the ownership percentage. Additional Information: Some K-1 forms may require further information, such as details on foreign transactions, alternative minimum tax items, or other specific adjustments. This is particularly relevant for entities involved in complex transactions or those with international aspects. Accuracy in reporting these details is paramount. The information provided on Schedule K-1 directly affects your individual income tax return and your overall tax liability. Errors or omissions can lead to audits or penalties from the IRS, making it crucial to double-check all entries and consult with a tax professional if you have any uncertainties. Schedule K-1 FAQs Navigating the complexities of Schedule K-1 can prompt many questions, primarily as taxpayers work to comply with IRS regulations and optimize their tax outcomes. Below, we address some of the most common queries related to Schedule K-1, aiming to shed light on its intricacies and help taxpayers understand their responsibilities. K-2 vs. K-3: What's the Difference? The distinction between Schedule K-2 and K-3 is primarily about the type of information they report, catering to the IRS's requirements for international tax dealings. Schedule K-2 is used by the entity (partnership, S corporation, trust, or estate) to report items of international tax relevance at the entity level. Meanwhile, Schedule K-3 is provided to the partners, shareholders, or beneficiaries, indicating their share of the global items reported on Schedule K-2. K-2 is for the entity's records, and K-3 is for the individual's tax return, ensuring compliance with international tax obligations. Related resource: What Is Form 3921, and How Does It Affect Your Employees? When Are K-1 Forms Due? The deadline for issuing Schedule K-1 forms varies depending on the entity type. For partnerships and S corporations, the K-1 forms should be issued by March 15th or the 15th day of the third month following the end of the fiscal year if the entity operates on a fiscal year basis. Trusts and estates have until April 15th, or the 15th day of the fourth month after the end of their fiscal year, to issue K-1 forms. These deadlines ensure recipients have sufficient time to include this information in their tax filings. Is K-1 Considered Income? Yes, the income reported on Schedule K-1 is considered taxable income for the recipient and must be included on their income tax return. This income can affect the taxpayer's overall tax liability, potentially altering their tax bracket and influencing the total taxes owed. It's essential to accurately report K-1 income to avoid underpayment penalties and calculate the correct tax liability. When Should I Get My K-1? Recipients should typically receive their Schedule K-1 by the abovementioned deadlines: March 15th for partnerships and S corporations and April 15th for trusts and estates. If you haven't received your K-1 by these dates, contacting the entity is advisable to inquire about the delay. Delays in receiving your K-1 can impact your ability to file your tax return on time, so proactive communication is key. If necessary, consider filing for an extension on your tax return to accommodate the late arrival of the K-1. Find the Right Investors for Your Startup Navigating the complexities of Schedule K-1 and understanding its implications is crucial for startup founders looking to maintain compliance and optimize their tax positions. Securing the right investors becomes equally important as you steer your startup towards growth. Leveraging platforms like Visible can streamline this journey, find investors, track a fundraiser, and share a pitch deck directly from Visible. Give Visible a free try for 14 days here. Related resource: EBITDA vs Revenue: Understanding the Difference

Latest Funding and Market Trends in EdTech (2023 and Beyond) The EdTech sector presents a landscape of both challenges and opportunities. Founders need to be agile and adaptable, with a focus on the key growth areas of AI, mobile learning, and data analytics. Despite the current downturn in venture capital funding, the sector's long-term growth prospects remain promising, driven by technological advancements and a global push towards accessible, quality education. Funding and Investment Trends In 2023, the EdTech sector is witnessing a notable decline in venture capital funding. Investments in the second quarter stood at $707 million, contributing to a total of about $1.8 billion in the first half of the year. This represents a significant 58% drop compared to the same period in the previous year. The forecast for total VC funding in 2023 is projected to be around $3.5 billion, a decrease from $10.6 billion in 2022 and far from the record $20.8 billion in 2021​​. The current investment climate has moved away from the "golden age of mega rounds." The recent period marked the second consecutive quarter without funding rounds exceeding $100 million, known as mega rounds. This cooling trend is attributed to a shift in market conditions, including a return to in-person learning and the expiration of federal aid that had previously boosted remote learning​​. Related resource: Top 18 Revolutionary EdTech Startups Redefining Education Opportunities and Growth Prospects Despite the current slowdown, the long-term outlook for EdTech remains robust. Most forecasters anticipate continued substantial growth in the sector throughout the rest of this decade. This optimism is rooted in the belief that technology will continue to be a significant driver of global growth in education by reducing costs and expanding access to learning​​. AI, mobile learning, tutoring, and data analytics are emerging as focal points in the EdTech sector. Innovations in these areas are expected to drive growth, with AI becoming a crucial component for startups. Mobile learning is also gaining prominence due to its widespread accessibility. Tutoring services are evolving, often combining AI, mobile technology, virtual/augmented reality, and gamification to offer more engaging and personalized learning experiences​​. Implications for EdTech Founders Navigating the Changing Landscape: EdTech founders must adapt to the evolving investment landscape, which may involve seeking smaller and more frequent rounds of funding. With the shift in investment focus, there is an increased emphasis on sectors outside of K-12, particularly in areas related to training and worker upskilling​​. Leveraging Emerging Technologies: Founders should focus on leveraging emerging technologies like AI and mobile learning to create innovative solutions. There is a growing market for platforms that use big data and analytics to personalize learning. Additionally, developing solutions in the tutoring space, particularly those that address gaps in K-12 education, can be a fruitful direction​​. Exploring Alternative Funding Sources: With the decline in traditional venture investments, it's crucial for startups to explore alternative forms of funding. This could include government funding, foundation-led philanthropic investments, and other non-traditional financing options. Diversifying funding sources can help sustain innovation and support the growth of new ideas​​. Emerging Technologies in EdTech For EdTech founders, emerging technologies offer a plethora of opportunities to innovate and create impactful educational solutions. As AI and IoT continue to evolve, they will undoubtedly unveil new possibilities for enhancing learning experiences and educational outcomes. Embracing these technologies and integrating them into EdTech solutions will be key to addressing the evolving needs of learners and educators alike. AI-Driven Innovations Personalized Learning Experiences: AI's ability to tailor educational content based on individual learning styles and needs is more advanced than ever. Using complex algorithms, AI can analyze student performance data to create a uniquely personalized learning journey. This not only enhances student engagement but also improves learning outcomes. Intelligent Assessment Tools: AI is revolutionizing the way assessments are conducted. With advancements in natural language processing and machine learning, AI systems can now grade open-ended responses, provide real-time feedback, and even identify areas where students might need additional support. Automated Content Generation: AI is being used to develop educational content, from generating practice questions to creating interactive learning modules. This technology allows for the rapid creation of high-quality, dynamic content that can adapt to curriculum changes and evolving educational standards. AI Tutors and Assistants: AI-powered tutoring systems are becoming more sophisticated, offering students personalized guidance and support. These virtual tutors can answer questions, assist with problem-solving, and provide explanations, much like a human tutor but with the added benefit of being available 24/7. IoT in Education Smart Classroom Technologies: IoT is transforming traditional classrooms into smart learning environments. This includes the use of smart boards, IoT-enabled lab equipment, and connected devices that enhance interactive learning and provide real-time data to both students and teachers. Enhanced Learning Analytics: now it’s possible to gather extensive data on student engagement and classroom dynamics. This information can be used to optimize teaching strategies, classroom layouts, and even individualize student learning plans based on engagement levels and performance. Improved Resource Management: In educational institutions, IoT can help manage resources more efficiently, from tracking equipment usage to monitoring energy consumption. This not only reduces operational costs but also contributes to creating a more sustainable learning environment. Future Outlook: Trends and Predictions in EdTech The future of EdTech is marked by a landscape of continuous innovation and adaptation. For EdTech founders, staying abreast of these trends and predictions is crucial to developing solutions that meet the evolving needs of learners and educators. By embracing these changes and anticipating future needs, EdTech companies can not only contribute to the advancement of education but also thrive in a dynamic and growing market. Key Trends Shaping the Future Increased Adoption of AI and Machine Learning: AI and ML will continue to be at the forefront of EdTech innovation. They are expected to drive further personalization in learning, provide more efficient assessment tools, and enable the creation of dynamic, responsive educational content. Growth in Virtual and Augmented Reality: VR and AR are anticipated to gain more traction in the educational sector. These technologies will provide immersive and interactive learning experiences, making complex concepts more accessible and engaging. Rise of Microlearning and Bite-Sized Content: The trend towards microlearning is expected to grow. Short, focused learning sessions that fit into busy schedules are increasingly appealing, especially for continuous adult education and corporate training. Focus on Lifelong Learning and Upskilling: As job roles evolve rapidly, there will be a heightened focus on lifelong learning and upskilling. EdTech platforms that cater to professional development and career transitions will likely see increased demand. Expansion of Gamification in Education: Gamification will continue to be a key element in engaging learners. By making learning more fun and interactive, EdTech solutions can improve retention and motivation across various age groups and educational contexts. Greater Emphasis on Inclusive and Accessible Education: There will be a growing focus on making education more inclusive and accessible. This includes developing solutions for learners with disabilities and those in underserved communities. Predictions for Growth and Evolution Market Expansion: The global EdTech market is projected to continue expanding, driven by technological advancements and the increasing acceptance of digital learning solutions. Diversification of EdTech Solutions: Expect to see a broader range of EdTech products catering to different educational needs, including early childhood education, K-12, higher education, and adult learning. Integration with Traditional Education Systems: EdTech will increasingly complement and integrate with traditional education systems, bridging gaps and enhancing the overall learning experience. Adoption in Emerging Markets: Emerging markets will likely see a surge in EdTech adoption as internet penetration increases and digital devices become more affordable. Investment Shifts: While venture capital funding may fluctuate, investment in EdTech is expected to remain strong, with a shift towards more strategic and impact-focused funding. Key Players “In the future, entrepreneurs will sell knowledge over products.”- Ankur Nagpal founder of Teachable Source: CB Insights Pre-K Education: Learn With Homer– Raised a total of $93M and was then acquired. K-12 Education: Platforms like Kahoot! and Quizlet have brought an element of gamification to K-12 classrooms, making learning interactive and enjoyable. Meanwhile, EdTech platforms like Google Classroom and Canvas help manage classroom tasks and streamline communication between teachers, students, and parents. Other big players include Khan Academy a free world-class education platform and GoStudent for 1 on 1 tutoring. Higher Education: Tools like Coursera, edX, and Udemy are revolutionizing higher education. These platforms provide a wide range of courses from universities around the world, giving students access to quality education regardless of location. They also offer micro-credentials, which are becoming increasingly recognized by employers. Continuing Education and Adult Upskilling: LinkedIn Learning, Coursera provide professionals the opportunity to learn new skills, stay current in their field, and even transition to new careers. They offer a myriad of courses in fields ranging from business and tech to creative arts. Specialized Learning: Companies like Rosetta Stone and Duolingo make language learning accessible to everyone, while platforms like MasterClass provide expert-led courses in various domains, such as writing, cooking, acting, and more. Cohort-based Learning companies: EducateMe, Maven and and various boot camps such as LeWagon and Iron Hack for tech upskilling. “Microlearning” or Bite-sized Learning involves absorbing knowledge in small, digestible segments, usually less than 10 minutes in duration. This method addresses time constraints, a common hurdle for employee participation in workplace learning. It not only condenses learning periods, thus increasing student engagement but also promotes information retention through repetition. Several innovative microlearning platforms have adopted this approach some examples include GoodCourse and 7Taps. Companies Own Offerings: Google Classroom, Microsoft Teams for Education, and Apple’s educational resources. In the era of lifelong learning, the market for educational technology has expanded dramatically. As technology continues to evolve and integrate into the education sector, we can expect to see even more niche EdTech platforms arise to meet the diverse needs of learners. Unique Challenges Technological infrastructure, including reliable internet access, is still a hurdle in many parts of the world. Concerns regarding data privacy and security. User engagement and retention, particularly in the K-12 segment, require a fine balance between education and engagement. Articulating Unique Value Proposition for EdTech Founders As the EdTech marketplace starts to rapidly grow and is swarming with innovation, it is crucial for founders to effectively articulate the unique value proposition (UVP) of their startups. Your UVP is essentially the backbone of your business. Understanding and expressing your UVP is vital, particularly in the EdTech sector. This is because educational institutions, teachers, students, and parents – the primary stakeholders in EdTech – are looking for targeted solutions to specific challenges they face in the educational landscape. Whether it’s improving learning outcomes, enhancing teacher productivity, or increasing education accessibility, the ability to distinctly show how your solution addresses these challenges can make or break your fundraising efforts. Improving Learning Outcomes If your EdTech solution can improve learning outcomes, demonstrate this with data from pilot studies or user testimonials, showing how your product increases knowledge retention, improves grades, or develops specific skills. Highlight unique features of your product that facilitate these improved outcomes, such as AI-powered adaptive learning paths or gamified learning experiences. Enhancing Teacher Productivity EdTech is not only about students but also about empowering teachers. If your product can enhance teacher productivity, illustrate how it reduces their administrative burden, automates repetitive tasks, or assists in more efficient classroom management. Show how your product can help teachers spend more time doing what they do best—teaching and mentoring students. Increasing Education Accessibility In a world increasingly focused on equality and inclusion, EdTech solutions that increase educational accessibility have a powerful appeal. If this is your company’s strength, show how your product helps reach underprivileged communities, accommodates students with special needs, or allows flexible learning for those who can’t attend traditional classes. Concrete examples and stories will help your audience understand the real-world impact of your solution. EdTech Shower Thoughts First, a little flashback to the end of 2022- the value of 30 EdTech unicorns approached $100 billion, comparable to Fortune 500 companies like General Electric and American Express (that’s pretty impressive). According to research, students following personalized learning approaches significantly outperform their peers. AI helps to address the challenge of high student-teacher ratios, providing customized learning experiences. EdTech’s reach extends beyond traditional education, with remote work enhancing its importance in professional development. Automated identification of skill gaps and intelligent resource recommendations are seen as valuable to businesses and their employees. The potential impact of government funding on EdTech’s growth- the trend towards technology use in education might lead to a significant portion of the available $30 billion US government funding being allocated to EdTech. Learning Management Systems (LMS) is incredibly important in achieving scalability in EdTech. LMS not only helps manage large classrooms but also crucially harnesses data from personalized learning platforms, enabling educators to improve content and technologists to better understand user behavior. Resources EdTech VC connect profiles in our Fundraising CRM From Exploding Topics: 56 Fast-Growing Edtech Companies & Startups (2023) 12 Emerging Education Trends (2023-2026) $30B in government funding available to educators in the US HolonIQ: 2022 closed with 30 EdTech Unicorns around the world, collectively valued at $89B Accelerator- Imagine K12 (which is specifically focused on EdTech) Events: SXSW EDU, and Bett Show attract educators, and GSV Ventures hosts their annual ASU + GSV summit VCs Investing in the EdTech Space 1. NewSchools Venture Fund About: “NewSchools Venture Fund is a is a national nonprofit venture philanthropy working to reimagine public education. Since our founding, in 1998, we have invested nearly $200 million in 200 education ventures. Our investments were instrumental in the creation of nearly 470 new schools with the potential to serve more than 200,000 students, and the development of ed tech products that serve more than 60 million students and their teachers.” Thesis: “We are the first venture philanthropy focused on K-12 education. As a nonprofit and intermediary funder, we raise charitable donations and then grant those funds to early-stage entrepreneurs who are reimagining public education. While we have a rigorous investment process, we seek educational and social returns, not financial ones.” Stage: Pre-Seed, Seed, Series A, Growth EdTech Notable Investments: ClassDojo, Handshake, and Uncommon Schools. 2. EduCapital About: The largest European Edtech & Future of Work VC. Educapital invest’s in innovative European companies with the highest potential to scale and become European and global leaders. Thesis: We invest in Entrepreneurs shaping the future of education & future of work. Stage: Seed, Series A, Series b, Growth EdTech Lastest Investments: Tomorrow University of Applied Sciences, Edflex, Lunii 3. Bonsal Capital About: We support tech-enabled, mission-driven startups and funds and leverage our experience as educators, venture capitalists, and ecosystem leaders to empower you to find the resources you need, so you can better serve your end user and customer. Thesis: Bonsal Capital is a mission-driven partnership, and supporting education has been a core driver since our founding in 1999. With decades of experience in education as investors, practitioners, and volunteers, our principals have authentically grown a partnership that seeks founders and leaders who want to make a positive impact with a product and/or service, and who keep prospective scale and sustainability at the forefront. We support the growth of companies focused on tech-enabled services in education, and we have invested in and partnered with more than 20 such companies over the past two decades, providing human and financial capital, as well as other resources, that have made a positive impact on tens of millions of end users. We believe that, by fostering education, we can make the world a better place and feel good about our place in it. Stage: Seed, Series A, Growth EdTech Notable Investments: Upswing, Nepris, and Everyday Labs 4. Learn Capital About: LearnCapital is a venture capital firm focused exclusively on funding entrepreneurs with a vision for better and smarter learning. Thesis: “We back and build rapidly scaling tech-enabled companies that tackle the world’s biggest human-centered problems and help us all reach our full potential.” Stage: Seed, Series A, Growth EdTech Notable Investments: Udemy, Coursera, and Chegg. 5. Emerge Education About: LearnCapital is a venture capital firm focused exclusively on funding entrepreneurs with a vision for better and smarter learning. Stage: Pre-Seed and Seed EdTech Notable Investments: Tomorrow University of Applied Sciences, Edurino, and Colossyan 6. Owl Ventures About: “Founded in 2014, Owl Ventures is the largest venture capital firm in the world focused on the education technology market with over $2 billion in assets under management. The Silicon Valley-based firm was purposely built to partner with and help scale the world’s leading education companies across the education spectrum encompassing PreK-12, higher education, future of work (career mobility/professional learning), and “EdTech+” (intersection of EdTech and other major industries such as FinTech and healthcare).” Thesis: “We believe there is a digital revolution rapidly unfolding in education and workforce development. This revolution is creating a historic opportunity to invest in companies that are disrupting and improving the over $6 trillion global education market. The entire education and training sector is shifting rapidly as access to the internet and connected devices has flourished. Hundreds of millions of students and teachers around the world can now leverage innovative learning platforms.” Stage: We invest in companies at all stages from seed, early, growth, and later stages, globally. EdTech Notable Investments: MasterClass, degreed, Khan Academy, Schoology, and Knewton. 7. Reach Capital About: Reach supports the most promising entrepreneurs developing technology solutions for challenges in early childhood, K-12, and higher education. Thesis: “Education is a critical engine for economic mobility. Alongside health, wellbeing, career development and healthy relationships, we are interested in all ideas that empower people to learn, grow and succeed — in school, at home, for work … wherever they go.” Stages: “early, and support you at every stage of your journey” EdTech Notable Investments: Guild Education, Classcraft, and Merit America. 8. General Catalyst About: General Catalyst backs exceptional entrepreneurs who are building innovative technology companies and market leading businesses, including Airbnb, BigCommerce, ClassPass, Datalogix, Datto, Demandware, Gusto (fka ZenPayroll), The Honest Company, HubSpot, KAYAK, Oscar, Snap, Stripe, and Warby Parker. The General Catalyst team leverages its broad experience to help founders build extraordinary companies. General Catalyst has offices in Cambridge, MA, Palo Alto, CA and New York City. Thesis: General Catalyst is a venture capital firm that makes early-stage and growth equity investments. Stages: Seed, Series A, Series B, Growth EdTech Notable Investments: Chegg, Coursera, and Udacity. 9. Kapor Capital About: Kapor Capital invests in early stage gap-closing tech enabled startups. Thesis: Kapor Capital invests in tech-driven early-stage companies committed to closing gaps of access, opportunity or outcome for low-income communities and/or communities of color in the United States. Stages: Pre- Seed, Seed, Series A, Series B 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: EdTech VC connect profiles in our Fundraising CRM

Venture capital firms need to have a system in place to track the performance of their different investments. Limited partners want to understand how a specific fund is performing — especially when a general partner is raising a new fund. Multiple on Invested Capital (MOIC) stands out as a critical measure for investors aiming to track their portfolio performance . This article delves into the essence of MOIC, offering a clear guide on how to calculate it and its significance in the venture capital ecosystem. Related resource: Venture Capital Metrics You Need to Know What is Multiple on Invested Capital (MOIC)? In venture capital, MOIC is a crucial metric that measures the return on investment by comparing the current or exit value of an investment to the initial capital invested. It offers a straightforward ratio indicating how many times the original investment has been returned, making it essential for evaluating the financial performance of an investment. MOIC's simplicity allows venture capitalists to assess value creation, compare performance across various investments, and make informed decisions on future investments or exits. As a universal metric, it facilitates direct comparison across diverse portfolios, highlighting the efficiency of startups in generating growth and guiding investors in maximizing their returns. MOIC Formula The formula for MOIC is: MOIC = Current Value of Investment / Total Invested Capital Each component plays a crucial role: Current Value of Investment: The present market value or exit value of the investment. Total Invested Capital: The initial amount invested. Unrealized vs. Realized MOIC Unrealized and realized MOIC are two states of the Multiple on Invested Capital that reflect different stages of an investment's lifecycle in venture capital: Unrealized MOIC refers to the calculation of the multiple based on the current market value of an investment that has not yet been liquidated or exited. It represents a paper value, indicating the potential return on investment if the investment were to be sold at its current valuation. Unrealized MOIC is a snapshot of the investment's performance at a given point in time, offering investors a glimpse into the possible outcome of their venture, assuming the market conditions remain favorable until the actual sale or exit. Realized MOIC, on the other hand, is determined when an investment is actually sold or exited. It calculates the multiple based on the final sale price or exit value, representing the actual return on investment received by the investor. Realized MOIC is concrete, reflecting the tangible outcome of an investment after it has been fully liquidated. The key difference between these two measures lies in their timing and certainty: unrealized MOIC is speculative, based on current valuations that can fluctuate, while realized MOIC is definitive, based on actual returns received from an investment. Both metrics are valuable for investors to assess and monitor the performance and potential of their investments over time. MOIC vs. IRR MOIC and IRR are both used to evaluate investment performance, but they do so in fundamentally different ways: MOIC measures the total return on an investment as a multiple of the original investment. It's calculated by dividing the current or exit value of an investment by the initial amount invested. MOIC provides a straightforward, time-independent snapshot of investment performance, showing how many times the invested capital has been returned. IRR, on the other hand, calculates the annualized effective compounded return rate of an investment, considering the time value of money. IRR is the rate at which the net present value of all the cash flows (both positive and negative) from a project or investment equals zero. It provides a time-weighted annual return, making it especially useful for comparing investments with different durations. The primary difference between MOIC and IRR is how they incorporate time: MOIC is a simple multiple, useful for quickly assessing the magnitude of return without considering the investment period. IRR provides a deeper analysis by considering the timing of cash flows, offering a rate of return that accounts for the duration of the investment, making it possible to compare investments on a more nuanced level. While MOIC offers a clear, immediate measure of how much value an investment has generated, IRR gives insight into the efficiency and timing of returns, accommodating more complex scenarios where the timing of cash inflows and outflows is a crucial factor. Why MOIC is Important in Venture Capital MOIC plays a crucial role in evaluating investment performance by providing a clear, direct measure of the financial returns relative to the initial capital invested. It does this by expressing the return as a multiple, showing investors how many times their original investment has been returned in value. This simplicity and directness make MOIC an invaluable tool for quickly assessing the effectiveness of investments in generating financial growth. MOIC helps investors understand the value generated from their investments by offering a straightforward metric that reflects the total increase in value of an investment, without the complexity of accounting for time or the pattern of cash flows. It enables investors to gauge the overall success and efficiency of their investments in turning the initial capital into a larger sum. By comparing the initial investment to the current or exit value, investors get a clear picture of the investment's performance and its contribution to their financial objectives. Related resource: VC Fund Performance Metrics 101 (and why they matter to LPs) Compares Returns Across Investments and Funds By expressing performance as a multiple, MOIC standardizes the evaluation of investment returns across different startups and VC funds, making comparisons straightforward despite variations in initial investment sizes. This standardization is possible because MOIC calculates returns relative to the invested capital, providing a ratio or multiple that directly reflects how many times the investment value has increased. For instance, an MOIC of 3x indicates that the investment value has tripled, regardless of whether the initial investment was $100,000 or $10 million. This approach abstracts away the absolute dollar amounts and focuses on the proportional return, enabling investors to compare the performance of various investments on an equal footing. MOIC thus serves as a universal metric that simplifies the assessment of financial efficiency and success across the diverse landscape of startup investments and VC fund portfolios, facilitating more informed decision-making processes for investors. Provides a Benchmark for Success MOIC serves as a robust benchmark for success by offering a uniform metric that quantifies investment performance as a multiple of the initial capital. This simplicity allows stakeholders to assess and compare the absolute return on investments across various ventures, irrespective of their scale or the amount of capital deployed. In the competitive landscape of venture capital, where the goal is to maximize returns on investment, MOIC distills the essence of financial success into a single, comprehensible figure. It enables investors to quickly identify high-performing investments and make informed decisions based on the capacity of startups to multiply the initial funds provided. By setting a clear, quantifiable standard, MOIC helps define what constitutes a successful venture within the industry, guiding both investors and entrepreneurs in their pursuit of exceptional growth and value creation. Tracks Progress Over Time MOIC can be calculated at various stages throughout the lifecycle of an investment, offering investors timely insights into its performance and future potential. By comparing the current or exit value of an investment to the original capital invested at different points, investors can track the progression of their investment's value over time. This dynamic application of MOIC allows stakeholders to monitor growth trends, evaluate the effectiveness of strategic decisions, and adjust their expectations for future returns based on real-time data. Such periodic assessments of MOIC provide a clear, ongoing picture of an investment's health and potential, empowering investors with the information needed to make informed decisions regarding additional investments, exits, or strategic shifts to maximize returns. How to Calculate MOIC Calculating MOIC involves a straightforward process, enabling investors to assess the performance of their investments at any point in time. Here’s a step-by-step guide to calculating MOIC, along with an example to clarify the process: Identify the Total Invested Capital: Determine the total amount of money invested in the venture. This includes all capital contributions made towards the investment. Determine the Current or Exit Value of the Investment: Assess the current market value of the investment if it has not been sold, or use the exit value if the investment has been liquidated. Calculate MOIC: Divide the current or exit value of the investment by the total invested capital. The formula is: MOIC = Current Value of Investment / Total Invested Capital​ Example: Let’s assume you invested $100,000 in a startup. After a few years, the current market value of your investment is $400,000. Total Invested Capital: $100,000 Current Value of Investment: $400,000 Using the MOIC formula: MOIC = $400,000 / $100,000 = 4 This means your investment has generated a return four times the original amount invested, indicating a significant increase in value and showcasing the investment's performance. By calculating MOIC at various points during the investment period, investors can monitor the progression and potential future returns of their investments. This continuous assessment helps in making informed decisions, whether it's about holding onto the investment, considering additional funding, or planning an exit strategy. What Is a Good MOIC? A good MOIC (Multiple on Invested Capital) typically indicates that an investment has generated a substantial return relative to the initial capital invested. In venture capital, a MOIC of 3x or higher is often considered good, as it demonstrates that the investment has tripled the original amount invested, reflecting strong value creation and investment performance. Example of a Good MOIC: If an investor puts $1 million into a startup and later exits the investment for $4 million, the MOIC would be 4x. This is considered a strong performance, as the investor has quadrupled their initial investment. Conversely, a bad MOIC falls below 1x, indicating that the investment has lost value and the investor receives back less capital than they originally invested. Example of a Bad MOIC: If an investor invests $1 million in a company, but the investment's value decreases, and they can only exit at $800,000, the MOIC would be 0.8x. This signifies a loss, as only 80% of the initial investment is recovered. Track Your Fund Performance Data With Visible By leveraging Visible, investors can track critical portfolio company and investment data all from one place. Learn how to get started with Visible to track your crucial investment data here. Related resource: The Ultimate Guide to Startup Funding Stages

In the dynamic world of startups and technological innovations, founders constantly seek strategies to ensure growth, competitive advantage, and talent acquisition. One such strategic approach that has gained prominence is acquihiring. In this guide we’ll demystify acquihiring, offering insights into its definition, differentiation from traditional hiring and acquisitions, operational mechanics, and its myriad benefits for both acquiring companies and founders considering this pathway. By exploring the nuances of acquihiring, founders can better navigate the complexities, ensuring informed decisions that propel their ventures toward sustained success. What is Acquihiring? Acquihiring, a blend of "acquisition" and "hiring," describes the process where a company is acquired primarily to onboard its employees, not necessarily for its products or services. This strategy often provides a graceful exit for startups facing financial hurdles, while also offering acquiring companies rapid access to a skilled workforce​​​​. Acquihiring vs. Traditional Hiring and Company Acquisitions Acquihiring, traditional hiring, and company acquisitions are distinct strategies used by companies to grow their teams, acquire talent, and expand their business operations. Each approach has unique characteristics and serves different purposes within the corporate strategy. Acquihiring vs. Traditional Hiring Acquihiring is a strategy where a company acquires another company primarily to hire its employees, rather than to gain control of its products or services. This approach is particularly appealing when a company wants to onboard a whole team that has already demonstrated the ability to work well together, thereby bypassing the lengthy and often uncertain process of assembling a new team through individual hires​​​​. Traditional Hiring involves the process of recruiting individuals to fill specific roles within a company. This method focuses on assessing individual candidates through interviews, skill tests, and other evaluation criteria to fill a vacancy. Traditional hiring can be time-consuming and requires resources for sourcing, interviewing, and onboarding each new employee individually. Acquihiring vs. Company Acquisitions Company Acquisitions typically involve one company taking over another to gain control of its assets, including products, services, technology, and sometimes the workforce. The primary goal of a company acquisition is often to expand the acquirer's product line, enter new markets, or eliminate competition, not specifically to hire the talent​​​​. Acquihiring, while technically a form of acquisition, has a different focus. The main goal is to integrate the talent from the acquired company into the acquiring company's workforce. In many cases, the products or services of the acquired company may be phased out or significantly altered as the team is redirected towards projects within the acquiring company. Acquihiring is less about the acquisition of business operations and more about the rapid assimilation of a skilled workforce​​​​​​. Acqui-hire Example A notable example of an acquihire is Yahoo's acquisition of Tumblr for $1.1 billion, mainly to recruit Tumblr's founder, David Karp. Although the venture didn't turn out as successful as hoped, it illustrates the potential scale and intent behind acquihiring strategies​​. How Does Acquihiring Work? Acquihiring stands out as a strategic approach, blending acquisition with talent recruitment to enhance a company's workforce through the integration of entire teams. This method focuses on harnessing collective talent, ensuring a swift and effective transition of skilled individuals who have proven their ability to work together. 1. Target Identification and Initial Contact This step in the acquihiring process is critical for laying the foundation for a successful acquisition. During this phase, a larger company proactively scouts for smaller companies or startups that have a team with the skills, expertise, and cultural fit it desires. This search is often driven by the larger company's strategic needs, such as filling specific talent gaps, entering new markets, or enhancing technological capabilities. Once a potential target is identified, the larger company initiates contact to gauge interest in an acquisition. This initial outreach is typically done discreetly to maintain confidentiality and to prevent any unnecessary disruption to the target company's operations. The aim here is to open a dialogue about the possibility of an acquihire, discussing preliminary terms and understanding the smaller company's openness to such a proposal. This step requires meticulous research and networking, often involving the use of intermediaries such as investment bankers, venture capitalists, or mutual contacts to make introductions. The larger company must carefully assess not just the technical capabilities of the potential target's team, but also their compatibility with the larger company's culture and the feasibility of integrating the team into its existing structures. 2. Due Diligence and Valuation This is a pivotal phase in the acquihiring process where the acquiring company undertakes an exhaustive assessment of the target company's overall health and worth. This comprehensive review encompasses an evaluation of the target's financials, assets, liabilities, legal standings, team capabilities, and any other pertinent factors that could affect the acquisition's value and viability. Financial Analysis: The acquiring company scrutinizes the target's financial statements, revenue models, cash flow, and future financial projections. This helps in understanding the financial health and sustainability of the target company. Asset Evaluation: Beyond financials, tangible and intangible assets including intellectual property, technology, customer databases, and brand value are assessed. This evaluation helps in understanding what the acquiring company is precisely gaining beyond the talent. Liability and Legal Review: Potential liabilities, including debts, legal disputes, and contractual obligations, are closely examined. The acquiring company also reviews compliance with laws and regulations to identify any potential legal risks. Team Assessment: A crucial part of due diligence in acquihiring, this involves evaluating the target company’s team's skills, experience, and cultural fit within the acquiring company. Understanding team dynamics and potential retention strategies is key. Valuation: Based on the comprehensive due diligence findings, the acquiring company develops a valuation of the target. This valuation reflects not just the tangible assets and financial health of the company but also intangible aspects like the team's potential contribution to the acquiring company’s future growth. Making an Offer: Armed with a valuation, the acquiring company formulates an offer to acquire the target company. This offer considers the due diligence findings and reflects a price that accounts for both the assets and liabilities uncovered during the evaluation. 3. Negotiation and Agreement In this step, both the acquiring and target companies engage in detailed discussions to finalize the terms of the acquisition. This stage involves a series of negotiations to align the interests and expectations of both parties regarding compensation, roles of key team members, and the plan for integrating the team into the acquiring company. The main components of this step include: Compensation Negotiation: One of the primary focus areas is the negotiation of compensation packages for the key team members of the target company. This includes not only salaries but also bonuses, stock options, and other benefits. The aim is to ensure that the offers are attractive enough to retain the top talent post-acquisition. Roles and Responsibilities: Discussions around the specific roles and responsibilities that the acquired team members will assume within the acquiring company are essential. It's important to clarify expectations and career paths to ensure a smooth transition and integration. Integration Plans: Both companies collaborate to develop a comprehensive plan for integrating the acquired team into the acquiring company. This includes detailing how and when the team will be integrated into existing projects, training programs to acquaint them with new processes and systems, and any cultural assimilation activities. Legal and Contractual Agreements: Once the terms are agreed upon, drafting a formal contract becomes imperative. This contract encompasses all the negotiated terms, including compensation, roles, integration plans, and any other agreements made during the negotiations. Legal teams from both sides review the contract to ensure it adheres to all regulatory and legal requirements. Signing the Contract: The final step of this phase is the signing of the contract by representatives from both companies, officially sealing the acquisition agreement. This formalizes the acquihire, allowing the process to move forward to the announcement and transition phase. 4. Announcement and Transition By meticulously planning and executing the announcement and transition phase, companies can minimize disruptions, maintain operational continuity, and harness the full potential of the acquired talent, setting the stage for successful collaboration and growth. Key aspects of this step include: Official Announcement: This involves crafting and distributing a well-thought-out announcement that highlights the benefits of the acquisition to all stakeholders. The message is usually optimistic, focusing on the synergies between the two companies, the value the acquired team brings, and how the acquisition will drive future growth and innovation. Communication Strategy: Effective communication is critical during this phase. The strategy often includes Q&A sessions, meetings, and press releases to address any concerns and provide clarity. Transparency and openness in communication help in mitigating uncertainties and fostering trust among the team members of both companies. Integration into Projects: Following the announcement, the acquired team is gradually introduced to their new roles within the acquiring company. This involves aligning them with projects that benefit from their expertise and where they can start contributing effectively. The goal is to ensure a seamless integration where the new team members feel valued and can immediately begin making an impact. Cultural Assimilation: Integrating the acquired team into the company culture is equally important. This can include orientation programs, team-building activities, and mentorship arrangements to help the new team members understand the company's values, working style, and expectations. It's crucial for the acquired team to feel welcomed and for the existing employees to be open to the new ideas and perspectives they bring. Monitoring and Feedback: Throughout the transition, it's vital to monitor progress and solicit feedback from both the acquired team and existing employees. This feedback loop can identify any integration issues early on and allow for adjustments to the transition plan, ensuring a smoother assimilation process. 5. Integration and Role Assignment By carefully managing the integration and role assignment process, the acquiring company can maximize the value of the acquihire, ensuring that the new team members are engaged, productive, and committed to their new roles, contributing to the overall success and growth of the company. This phase can be broken down into several key activities: Role Alignment: Assigning the right roles to the new team members is crucial. This involves understanding their strengths, experiences, and career aspirations and matching them with the needs and opportunities within the acquiring company. The objective is to place these individuals in positions where they can make the most impact and feel fulfilled in their work. Retention Strategies: To ensure the long-term success of the acquihire, the acquiring company must implement retention strategies that address the unique needs and expectations of the new team members. This could include competitive compensation packages, career development opportunities, incentives aligned with company goals, and creating an inclusive culture that values their contributions. Cultural Integration: Beyond just assigning roles, integrating the new team members into the company culture is essential. This might involve orientation sessions, cultural workshops, and team-building activities designed to foster connections between new and existing employees, helping them to understand and embrace the company's values, practices, and expectations. Training and Development: Providing training and development opportunities is key to ensuring that the new team members can effectively contribute to their new roles. This could include technical training, leadership development programs, or mentorship arrangements to help them adapt to their new environment and responsibilities. Feedback and Adjustment: Continuous feedback mechanisms should be established to monitor the integration process and address any challenges or concerns that arise. This could involve regular check-ins, surveys, and feedback sessions that allow new team members to express their experiences and for management to make necessary adjustments to the integration plan. Advantages of Acquihires for the Acquiring Company Acquihiring provides immediate access to a skilled workforce, enabling faster integration and promoting team cohesion. Moreover, it is cost-effective compared to traditional hiring processes​​​​. Rapid Access to Skilled Workforce Acquihires provide immediate access to a skilled and experienced workforce, streamlining the process that typically involves individual recruitment efforts. This strategy is especially beneficial in industries where talent is scarce and the recruitment process is lengthy and competitive. Here's how acquihires facilitate rapid access to a capable team: Seamless Team Integration: Acquihiring a team means bringing on board a group of professionals who have already proven their ability to work together effectively. This existing synergy among team members can significantly reduce the ramp-up time for projects, as the team is accustomed to collaboration and has established workflows. Industry Expertise: Teams acquired through acquihires often come with specialized knowledge and skills tailored to specific projects or technologies. This expertise can be immediately leveraged, allowing the acquiring company to accelerate development timelines and innovate more rapidly. Cultural Fit: The process of acquihiring includes evaluating the cultural fit of the team with the acquiring company. A good match ensures that the new team members can quickly adapt to and thrive in their new environment, contributing to their immediate effectiveness and long-term retention. Reduced Training Time: Since the team is already familiar with working together on similar projects or technologies, the time and resources required for training are significantly less compared to hiring individuals from different backgrounds. This allows for a quicker transition to productive work. Strategic Advantage: By acquiring a team with a track record of success, companies can immediately strengthen their position in competitive markets. This rapid infusion of talent can enhance innovation, product development, and market responsiveness. Faster Integration The advantage of faster and smoother integration of the acquired team into the acquiring company's culture and operations is a significant benefit of the acquihiring process. This accelerated integration is primarily due to the collective transition of a team that has pre-existing working relationships and dynamics. Here's how this benefit manifests: Pre-established Team Dynamics: Unlike individual hires who may take time to adjust to a new team environment, acquihired teams already have established working relationships. This familiarity can lead to quicker project kickoff times and more efficient collaboration, as the team members already understand each other's working styles and strengths​​​​. Alignment with Company Goals: Acquihired teams often undergo a vetting process to ensure their goals and values align with those of the acquiring company. This alignment helps in smoother cultural integration, as the team is likely to share similar motivations and work ethics, reducing friction and misunderstandings​​​​. Streamlined Onboarding Process: The collective onboarding of an acquihired team can be more efficient than individual onboarding processes. Tailored orientation sessions can address the specific needs and questions of the team as a whole, ensuring they understand the company's operations, expectations, and culture from the outset​​​​. Leadership Continuity: In many cases, the leadership structure within the acquihired team remains intact, providing a sense of continuity for the team members. This can help in maintaining morale and productivity as the team transitions into the new company, with familiar faces guiding them through the process​​. Retention Strategies: The acquihiring process often includes discussions and agreements on retention strategies that are specifically tailored to the needs and expectations of the acquired team. This proactive approach can address potential concerns early on, ensuring that the team members feel valued and see a clear path for growth within the new company, further smoothing the integration process​​​​. Team Cohesion The pre-existing cohesion and established dynamics of an acquired team significantly contribute to enhanced productivity and innovation within the acquiring company. This effect is rooted in several key factors that stem from the team's history of collaboration: Efficient Communication: Teams with a history of working together have developed effective communication channels and understandings. This efficiency reduces misunderstandings and accelerates decision-making processes, allowing for faster project development and problem-solving​​​​. Trust and Mutual Understanding: The trust built within a pre-existing team encourages open discussions and the sharing of ideas without fear of judgment. This environment fosters creativity and can lead to innovative solutions, as team members feel comfortable proposing and critiquing ideas​​​​. Aligned Work Ethic and Values: Teams that have developed a cohesive work culture have aligned values and work ethics, which can seamlessly integrate into projects at the new company. This alignment helps in maintaining a high level of motivation and dedication towards project goals, directly impacting productivity and the quality of work​​​​. Rapid Conflict Resolution: Familiarity among team members means conflicts are likely to be resolved more quickly due to an understanding of each other's personalities and work styles. Quick resolution of disputes keeps the focus on progress and innovation, rather than getting bogged down in interpersonal issues​​​​. Collective Creativity: A team that has worked together successfully in the past has likely developed a collective creativity, where the sum is greater than its parts. This dynamic can lead to the generation of unique ideas and creative approaches to challenges, driving innovation within the acquiring company​​​​. Cost-effectiveness The cost-effectiveness of acquihiring, when compared to traditional hiring processes, is rooted in several key areas where efficiency gains and cost savings are realized: Reduced Recruitment Costs: Traditional hiring involves costs associated with advertising positions, sourcing candidates, conducting interviews, and potentially hiring recruitment agencies. Acquihiring bypasses many of these steps by bringing in an entire team at once, significantly reducing the per-capita cost of recruitment​​​​. Lower Training and Onboarding Expenses: Acquihired teams require less time and resources for onboarding and training because they are accustomed to working together and can leverage their pre-existing knowledge and skills. This contrasts with individually hired employees who may need extensive training to reach full productivity​​​​. Minimized Turnover and Retention Costs: Acquihiring often includes negotiations of terms that are specifically designed to retain key employees, thus potentially reducing turnover costs. High turnover in traditional hiring can lead to repeated cycles of recruitment, training, and lost productivity, all of which have significant financial implications​​​​. Immediate Productivity Gains: Since acquihired teams can hit the ground running, they contribute to projects and objectives much sooner than individually hired employees who may take months to acclimate and become fully productive. This immediate contribution can accelerate time to market for products and services, providing a competitive advantage and potentially increasing revenue sooner​​​​. Avoidance of Competitive Salary Bidding: In the competitive market for top talent, companies often find themselves in costly bidding wars to attract individual candidates. Acquihiring can sidestep this process, as compensation packages are negotiated at the team level, potentially avoiding inflated salaries that can occur in competitive hiring scenarios​​​​. Related resources: Types of Venture Capital Funds: Understanding VC Stages, Financing Methods, Risks, and More A Quick Overview on VC Fund Structure Why Would a Founder Consider Being Acquihired? Exploring the concept of acquihiring reveals its attractiveness to founders seeking not just an exit but also growth opportunities within larger entities. This strategic choice blends financial benefits with the potential for continued innovation, presenting a path for both personal and project advancement. Next, we'll delve into the reasons driving founders towards acquihiring as a viable and beneficial option. Financial Incentives Acquihires offer financial rewards and security for founders, especially when traditional funding routes prove challenging. This acquisition strategy not only provides founders with immediate financial benefits, often in the form of upfront cash and stock options in the acquiring company but also ensures a safety net that is particularly valuable in uncertain economic climates or competitive industries. Founders facing difficulties in raising additional rounds of funding or looking to mitigate financial risks find acquihires an appealing option. The financial payout can significantly outweigh the potential returns from an uncertain future, providing both a secure exit and a rewarding transition into new roles with the stability of a larger organization behind them​​​​​​. Continued Legacy and Project Survival An acquihire offers founders a unique opportunity to ensure the continuity and further development of their projects within the stable and resource-rich environment of a larger, established company. This arrangement allows the founder's vision and project to survive and potentially thrive, even if the original startup faced hurdles in scaling or funding. By becoming part of a bigger entity, the project benefits from access to greater resources, including technology, expertise, and networks, which can accelerate development and expansion in ways that might not have been possible independently. Additionally, the alignment with a larger company's strategic goals can inject new life and direction into the project, ensuring its legacy continues while also contributing to the broader success of the acquiring company. This transition can be particularly gratifying for founders passionate about their work, as it allows their innovations to reach wider audiences and have a more significant impact, all while securing their financial future and professional growth​​​​​​. Access to Resources Becoming part of a larger organization through acquihiring opens doors for founders and their teams to a wealth of resources, advanced technology, and expansive networks that might have been inaccessible otherwise. This integration offers several key advantages: Enhanced Resources: Larger companies often have deeper pockets and more substantial budgets allocated for project development, marketing, and research. This influx of resources can provide the necessary fuel for accelerated growth and product enhancement, allowing founders to scale their projects more efficiently than on their own. Advanced Technology Access: Being under the umbrella of a well-established company means having access to cutting-edge technologies and tools. This access can significantly shorten development cycles, improve product offerings, and foster innovation, keeping the project at the forefront of technological advancements. Expansive Networks: Larger organizations usually have well-established networks, including industry contacts, potential customers, and partners. Being part of such an entity allows founders to tap into these networks for business development, strategic partnerships, and even mentorship opportunities, which can be invaluable for growth and expansion. Market Reach: The acquiring company's established brand and market presence can significantly boost the project's visibility and credibility. This enhanced market reach can open up new customer segments and territories, driving increased adoption and revenue streams. Connect with Your Next Business Partners with Visible Navigating through the complexities of startup evolution and expansion, this article has unveiled the strategic maneuver of acquihiring, showcasing its pivotal role in facilitating growth, competitive edge, and talent integration. Acquihiring stands distinguished, not only as a means to onboard a cohesive, skilled workforce swiftly but also as a conduit for ensuring the survival and prosperity of innovative projects under the aegis of larger, resource-abundant organizations. Stay up to date with our resources by subscribing to our weekly newsletter here. Raise capital, update investors, and engage your team from a single platform. Try Visible free for 14 days. Related resource: Portfolio Management: What it is and How to Scale it at Your VC Firm

CleanTech and Climate Tech sectors are more crucial than ever, driving innovation to address our planet's most pressing environmental challenges. As an entrepreneur in these fields, you are part of a transformative movement focused on sustainability and climate action. However, navigating this landscape requires a unique set of strategies and insights. This comprehensive guide will provide the tools to overcome common hurdles, connect with venture capital firms actively investing in CleanTech and Climate Tech, and leverage opportunities for growth and impact. Definition and Differentiation: CleanTech vs. Climate Tech CleanTech (Clean Technology): CleanTech focuses on reducing industries' environmental footprints by improving efficiency, reducing waste, and utilizing renewable resources. This includes innovations in energy efficiency, renewable energy (solar, wind, hydro), green transportation, water purification, and waste management. Climate Tech (Climate Technology): Climate Tech specifically targets mitigating climate change effects. This involves technologies that focus on carbon capture and storage, climate modeling and monitoring, and adaptation technologies to cope with the impacts of climate change. While both sectors aim to promote sustainability, CleanTech broadly addresses environmental impacts across various industries, whereas Climate Tech is directly aimed at combating and adapting to climate change. Current Trends and Market Analysis Growth and Investment The CleanTech and Climate Tech sectors are experiencing unprecedented growth, fueled by an escalating global emphasis on sustainability and stringent environmental regulations. This growth is a response to the urgent need to address climate change and a reflection of the sectors' potential for significant economic returns. CleanTech Growth: Global Focus: The international community's increasing commitment to sustainable practices drives growth. Countries are implementing aggressive policies to reduce carbon footprints, benefiting CleanTech innovations in renewable energy, energy efficiency, and waste management. Investment Surge: Investors are pouring capital into CleanTech, recognizing sustainable technologies' long-term value and necessity. In 2023, global CleanTech investments surpassed previous records, signaling strong confidence in the sector. Climate Tech Momentum: Net-Zero Commitments: Governments and corporations worldwide are setting ambitious net-zero carbon goals. This accelerates developing and deploying Climate Tech solutions such as carbon capture and storage, climate resilience infrastructure, and advanced climate modeling tools. Early-Stage Investments: Venture capital funding in Climate Tech has seen a notable increase, particularly in early-stage startups. This trend is driven by the recognition that early investments in disruptive technologies can yield substantial returns as these innovations mature and scale. Technological Innovations Rapid technological advancements are a cornerstone of growth in both CleanTech and Climate Tech. These innovations improve efficiency, reduce costs, and open new frontiers for sustainable practices. Renewable Energy: Solar and Wind Advances: Developing more efficient solar panels and wind turbines makes renewable energy more accessible and cost-effective. Innovations such as bifacial solar panels and floating wind farms are expanding the potential for clean energy production. Energy Storage: Breakthroughs in battery technology, including solid-state batteries and grid-scale energy storage solutions, address the intermittent nature of renewable energy sources, facilitating a more reliable and resilient energy grid. Electric Vehicles (EVs): Transformation in Transportation: The EV market is experiencing explosive growth, driven by technological advancements in battery life, charging speed, and vehicle range. Innovations in EV infrastructure, such as widespread charging networks and vehicle-to-grid technology, further support this transformation. Sustainability in Manufacturing: Companies are increasingly focusing on sustainable practices in EV manufacturing, including using recycled materials and reducing the carbon footprint of production processes. Climate Tech Breakthroughs: Carbon Capture and Sequestration: Significant progress in carbon capture technologies enables more efficient and cost-effective ways to remove CO2 from the atmosphere and store it securely underground. AI-Driven Climate Modeling: The integration of artificial intelligence in climate modeling is enhancing the accuracy of climate predictions and providing valuable insights for mitigation and adaptation strategies. Market Drivers: Regulatory Pressures and Incentives: Environmental Standards: Governments are implementing stricter ecological regulations, compelling industries to adopt CleanTech and Climate Tech solutions. These regulations are often accompanied by substantial financial incentives, such as tax credits, grants, and subsidies, to encourage compliance and innovation. Policy Support: Policy frameworks supporting green technologies, including renewable energy mandates and carbon pricing mechanisms, create a favorable environment for sector growth. Consumer Demand: Sustainable Products and Services: Increasing consumer awareness and demand for environmentally friendly products drive companies to incorporate sustainable practices into their operations. This shift is evident across various industries, from fashion and food to transportation and energy. Market Differentiation: Companies prioritizing sustainability are gaining a competitive edge, attracting a growing segment of eco-conscious consumers. Corporate Sustainability Commitments: Carbon Neutrality Pledges: Corporations commit to ambitious sustainability goals, including achieving carbon neutrality. These commitments enhance their brand reputation and drive investments in CleanTech and Climate Tech solutions. Strategic Partnerships: Businesses are forming partnerships with CleanTech and Climate Tech startups to integrate innovative solutions into their operations, further fueling sector growth. Key Challenges and Opportunities in Each Sector Challenges High Capital Requirements: Both CleanTech and Climate Tech startups often face significant upfront costs for research, development, and deployment of their technologies. Regulatory Hurdles: Navigating complex and varying regulations across different regions can be daunting and time-consuming. Market Adoption: Proving the viability and scalability of new technologies in real-world applications is critical and often challenging. Opportunities Government Support: There are numerous grants, subsidies, and incentive programs available to support CleanTech and Climate Tech initiatives. Investor Interest: Increasing awareness of climate change impacts attracts more investors to these sectors, creating a favorable funding environment. Technological Advancements: Ongoing innovations provide new avenues for startups to differentiate themselves and capture market share. Corporate Partnerships: Collaborating with established corporations can provide startups with essential resources, market access, and credibility. Related resource: The Future is Green: 15 Climate Tech Startups to Watch This Year Focus on Impact Metrics Highlighting the environmental impact and sustainability benefits of the CleanTech solution can attract socially conscious investors and customers. Patagonia Patagonia, an outdoor clothing and gear company, places a strong emphasis on impact metrics related to sustainability. The company tracks and publicizes its efforts to reduce carbon emissions, minimize water usage, and promote responsible sourcing of materials. By transparently communicating its environmental initiatives, Patagonia attracts loyal customers who align with their values, and the company’s commitment to sustainability becomes a significant driver of brand loyalty. Patagonia’s Page: Environmental & Social Footprint Ecolab Ecolab, a global provider of water, hygiene, and energy technologies and services, focuses on impact metrics related to water conservation and sustainable operations. The company measures and reports on water savings achieved through its solutions, helping businesses and industries reduce water consumption and environmental impact. By demonstrating the positive environmental outcomes of its services, Ecolab attracts clients who prioritize sustainability, leading to long-term partnerships and business growth. Ecolab’s 2030 Impact Goals Ecolab Releases 2022 Corporate Sustainability Report, Highlights Progress Toward 2030 Impact Goals Resources Impact Investors and Fund Managers to Know Climate Tech’s Evolution: The Maturation to a Competitive, Returns-Focused Thematic Investment Sector From Clean Tech 1.0 to Climate Tech 2.0: A New Era of Investment Opportunities The climate tech sector is booming—here are the applications VCs are most excited about The Database of State Incentives for Renewables & Efficiency (DSIRE) For impact investors, the Global Impact Investing Network (GIIN) offers a directory of its members, many of whom are impact investors interested in sustainable technologies. VCs Investing in Clean Tech and Climate Tech Startups Lowercarbon Capital About: Lowercarbon Capital invests in decarbonization technologies across various sectors, including energy, transportation, food, and manufacturing. They fund research and invest in technologies to reduce CO2 in the atmosphere. For too long, the world has ignored the scientists, inventors, and entrepreneurs who are pursuing solutions to lower emissions, remove carbon, actively cool the planet, and save human, animal, and plant life as we know it. We are working to fix that. Third Sphere About: Third Sphere works for founders transforming global systems. We’ve made over 100 investments in notable firms like Cove Tool, OneWheel and Bowery Farming. We’re usually a pre-customer investor and offer traditional venture as well as credit finance, along with coaching and connections to over 12,000 customers, investors focused on re-imagining our planet. Our team is ranked in the 99th percentile of climatetech investors on NFX Signal, and Techcrunch named us one of the top 10 VCs founders love the most. We know that climate is about more than carbon—it’s also about force multipliers like asset finance and distribution. We believe the best climate solutions don’t look like climate solutions at all, just better, faster, and cheaper products and services. We prefer rapid deployment that will get us close to 1.5C in warming while upgrading our systems to make them more resilient. But we’ll also look at moonshot opportunities because we know we need a plan B. Thesis: A real investment is about more than capital. We invest at the earliest stages, usually pre-customer, stay close to our founders, and work with them from the inception of our relationship so they can build relationships with other founders, investors, and customers. Breakthrough Energy Ventures About: Launched by Bill Gates, Breakthrough Energy Ventures invests in companies developing technologies to reduce greenhouse gas emissions. Breakthrough Energy is dedicated to helping humanity avoid a climate disaster. Through investment vehicles, philanthropic programs, policy advocacy, and other activities, we’re committed to scaling the technologies we need to reach net-zero emissions by 2050. Thesis: Breakthrough Energy Ventures provides reliable and affordable power without contributing to climate change. Energy Impact Partners About: Energy Impact Partners LP (EIP) is a global investment platform that invests in companies shaping the energy landscape of the future. EIP brings together entrepreneurs and the world’s most forward-looking energy and industrial companies to advance innovation. With over $2.5 billion in assets under management, EIP invests globally across venture, growth, credit, and infrastructure – and has a team of over 70 professionals based in its offices in New York, San Francisco, Palm Beach, London, Washington D.C., Cologne, and Oslo. Thesis: We bring together incumbents and innovators in a differentiated collaborative model to build and scale businesses for substantial impact. Generation Investment Management About: Co-founded by former US Vice President Al Gore, Generation Investment Management focuses on sustainable investments, including Climate Tech. Since its founding in 2004, Generation has played a pioneering role in the development of sustainable and environmental, social and governance (ESG) investing. Prelude Ventures About: Prelude Ventures is a venture capital firm partnering with entrepreneurs to address climate change. Since 2013, we have invested in over 40 companies across advanced energy, food and agriculture, transportation and logistics, advanced materials and manufacturing, and advanced computing. We have a long-term commitment to the sector, accept informed risks, and couple a fundamental emphasis on venture-level returns with an understanding of deep-tech and hardware development timelines. Prelude manages capital exclusively for Simons family philanthropic entities and is a founding member of the Breakthrough Energy Coalition. Thesis: We invest in the low-carbon economy. 3×5 Partners About: In everything we do, we allow our love for each other and for the planet to be our guide. We seek out companies that are delivering advancements in clean air, food, water, shelter, education, healthcare, sanitation, and climate and environmental sustainability. When we find companies that align with our mission, we go beyond due diligence and take the time needed to build relationships grounded in trust, shared vision, transparency, and mutual accountability. Third Derivative About: We are building an inclusive, global ecosystem that rapidly finds, funds, and scales climate tech innovation and transforms markets. Thesis: We are mission driven and market focused. Rising to the climate crisis challenge is a once-in-a-generation, trillion-dollar economic opportunity. That’s why we were founded with purpose: to find, fund, hone, and scale the most-promising technologies to achieve larger, faster reductions in global carbon emissions. Evergreen Climate Innovations About: Clean Energy Trust is a cleantech accelerator that fuels innovation to create a healthier environment and more prosperous future. Clean Energy Trust is a 501C3 public charity. Our unique funding model gives us the flexibility to invest early in promising technology and young companies. We invest across the spectrum of cleantech including energy efficiency, agriculture, energy generation, energy storage, and transportation technologies. Sweetspot check size: $ 100K Greentown Labs About: Greentown Labs is a community of climate action pioneers working to design a more sustainable world. As the largest climatetech startup incubator in North America, Greentown Labs brings together startups, corporates, investors, policymakers, and many others with a focus on scaling climate solutions. Driven by the mission of providing startups the resources, knowledge, connections, and equipment they need to thrive, Greentown Labs offers lab space, shared office space, a machine shop, an electronics lab, software and business resources, and a large network of corporate customers, investors, and more. With incubators in Somerville, Mass. and Houston, Texas, Greentown Labs is home to more than 200 startups and has supported more than 500 since the incubator’s founding in 2011. These startups have collectively created more than 24,000 jobs, raised more than $4 billion in funding, and generated more than $9.8 billion in regional economic impact. Future Energy Ventures About: Future Energy Ventures is a unique venture capital platform that brings together corporate partners and world-class start-ups to shape the future energy landscape. Future Energy Ventures is the venture capital investment and collaboration platform of E.ON, one of Europe’s largest operators of energy networks and energy-related infrastructure and a provider of innovative customer solutions for about 50 million customers. Thesis: Future Energy Ventures is born from the energy industry, but it understands energy must converge with other sectors to create a sustainable and prosperous future. This is why we go beyond energy to invest in companies solving problems in cities or building frontier technology. The realization of our ambition relies on collaboration and partnerships; between people and companies from many different industries. 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: Clean Tech and Climate Tech VC profiles in our Fundraising CRM