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Top 10 VCs Fueling Innovation in Transportation
In recent years, rapid technological advancements and shifting consumer demands have transformed the transportation sector. From electric and autonomous vehicles to last-mile delivery innovations, sustainable transport solutions, and AI-driven logistics, transportation startups are pushing boundaries and redefining how people and goods move across cities and countries. As these startups take on the challenges of this dynamic industry, they often face high capital requirements, regulatory hurdles, and the need to scale complex infrastructure.
Finding the right venture capital (VC) partners can make a significant difference for transportation founders. Specialized transportation investors can provide the necessary capital and bring invaluable industry expertise, regulatory insights, and networks within the transportation ecosystem. Working with the right investors can equip transportation startups with the tools to navigate industry-specific challenges and seize growth opportunities effectively.
This article will highlight the top 10 investors actively funding transportation startups, along with other helpful information to help founders be well-prepared for their transportation fundraising journey.
Why Specialized Transportation Investors Matter
When it comes to building a successful transportation startup, securing funding from generalist investors can be valuable- but partnering with venture capitalists specializing in transportation can make an even bigger impact. Transportation-focused VCs bring more than just capital to the table, they offer deep sector knowledge, established connections within the industry, and a deep understanding of the unique hurdles that transportation startups face. These advantages often translate into more strategic guidance, better industry insights, and enhanced growth opportunities.
Sector-Specific Expertise
Specialized transportation investors have an in-depth understanding of the complexities involved in this industry. They are well-versed in areas like supply chain logistics, vehicle technologies, fleet management, and sustainable transit solutions. This expertise is particularly useful in assessing and supporting new technologies, whether a startup is pioneering advances in electric vehicles or working on cutting-edge AI applications for traffic optimization. With a VC who knows the industry inside and out, founders can receive advice grounded in firsthand experience, accelerating their growth and increasing the likelihood of sustainable success.
Related resource: Top VCs Driving Transformation in Supply Chain and Logistics
Relevant Connections
Transportation-focused VCs typically have a broad network of connections with suppliers, industry leaders, regulatory bodies, and potential partners. These relationships can be instrumental for startups, helping them establish partnerships and scale faster in a sector where collaboration is often key. Whether it’s securing strategic partnerships with major automotive companies or finding dependable logistics providers, having a VC with established contacts can be a major advantage for startups working to break into the market.
Understanding of Regulatory and Operational Challenges
Navigating regulatory requirements can be one of the toughest parts of launching a transportation startup. Specialized investors understand the regulatory landscape- whether it's federal safety standards for autonomous vehicles, emissions regulations, or logistics compliance protocols. They are more likely to guide founders through the complexities of compliance and introduce them to industry consultants or advisors when needed. Additionally, these investors often anticipate operational challenges unique to transportation, such as high initial capital requirements and complex supply chains, and are equipped to help founders develop realistic, resilient business models.
Top 10 VC Investors in Transportation
AV8 Ventures
About: AV8 Ventures is an early-stage VC firm comprised of industry experts, scientists, operators, and investors that leverage.
Thesis: Investing in disruptive technologies in enterprise, healthcare and automation in various industries.
BMW i Ventures
We find and grow cutting-edge technology companies redefining the automotive industry.
Navigate Ventures
A venture capital firm that provides seed capital and regulatory support to entrepreneurs shaping the future of cities – helping them grow into tomorrow’s most valued companies.
Trucks Venture Capital
Trucks Venture Capital funds the entrepreneurs building the future of transportation.
Maniv Mobility
Maniv Mobility is a global early-stage venture fund based in Tel Aviv and New York. We partner with founders advancing the cleaner, safer, more efficient and more sustainable movement of people and goods. With decades of experience in the mobility, transportation, electrification and policy sectors, Maniv has built a deep global network of industry leaders and experts - allowing us to closely partner with startups and drive better outcomes. Maniv is backed by some of the world's leading automotive, transportation, infrastructure and energy companies.
Dynamo Ventures
Dynamo invests in extraordinary founders building technology businesses in supply chain and mobility.
Fontinalis Partners
About: Fontinalis Partners, with offices in Detroit and Boston, is a venture capital firm strategically focused on next-generation mobility.
Thesis: Macro trends are driving demand, Mobile & big data are catalyzing growth, Proven technology can be scaled globally, A strategic approach enhances value creation
Schematic Ventures
Schematic Ventures is an early-stage venture capital fund located in San Francisco. The fund is focused on investments in technology companies within supply chain, manufacturing, commerce infrastructure & digital industrial sectors.
AutoTech Ventures
About: Autotech Ventures is a venture capital firm focusing on the ground transportation sector.
Thesis: We invest globally in seed through series C startups solving ground transport challenges related to connectivity, autonomy, shared-use, electrification, and digitization of enterprise.
TA Ventures
1843 is a technology-focused venture capital firm supporting Series A startups with diverse founding teams. Our team brings 40+ years of combined experience in venture investing, hardware, software and operations. We have taken companies from start to exit and have the track record to prove it. We leverage our deep, personal networks as a unique competitive advantage for deal flow and portfolio support. We have an extensive network of committed global advisors including successful founders, leading operators, and co-investors dedicated to supporting the growth of our portfolio companies.
Key Investment Trends in Transportation
The transportation sector is undergoing significant transformation, driven by technological advancements and evolving consumer preferences. VCs are actively channeling funds into several key areas, reflecting current industry trends and future growth potential.
Sustainable Transportation
Investors are increasingly prioritizing startups that offer eco-friendly solutions, such as electric vehicles (EVs), hydrogen fuel cells, and alternative energy sources. The European Union, for instance, needs to invest €39 billion annually to meet its 2050 net-zero transport targets, underscoring the emphasis on sustainability.
Related resource: Guide to CleanTech and Climate Tech in 2024 + Top VCs Investing
AI in Logistics
AI is revolutionizing logistics by enhancing route optimization, demand forecasting, and supply chain efficiency. Startups leveraging AI to improve operational efficiency and reduce costs are attracting significant VC interest. For example, Volvo Group Venture Capital invested in aifleet, a U.S.-based company utilizing AI to reshape trucking operations.
Related resource: The Role of AI in Startups and Venture Capital + Top VCs Investing in AI
Shared Mobility Solutions
The rise of ride-sharing, car-sharing, and micro-mobility platforms is reshaping urban transportation. VCs are funding startups that offer innovative shared mobility services, catering to the growing demand for flexible and cost-effective transportation options. Examples are Lime, Miles, and Turo. InDrive, a transportation services startup, launched a venture arm to invest in startups aimed at geographical expansion.
Regulatory Technology (RegTech)
Navigating complex transportation regulations is a significant challenge. Startups developing RegTech solutions to streamline compliance processes are gaining attention from investors as they help companies adhere to evolving standards efficiently.
What Transportation Startups Should Prepare for Fundraising
In the transportation sector, attracting venture capital requires more than just a compelling idea. Investors expect startups to clearly understand the industry’s demands and challenges, backed by hard data and strategic planning. Here’s what transportation startups should prioritize to improve their chances of successful fundraising.
Data-Driven Impact
For transportation startups, showcasing traction and impact with data is essential. Investors want to see measurable progress, such as route efficiency improvements, emissions reductions, or cost savings that prove the startup’s value proposition. Metrics like miles saved per vehicle, percentage reduction in carbon emissions, and cost efficiency can demonstrate a startup’s tangible impact, differentiating it from competitors. Presenting data-driven results establishes credibility and shows that the startup has a scalable, replicable model that could yield a high return on investment.
Related resource: Our Favorite Posts for Sharing Documents, Decks, and Data While Fundraising
Regulatory Knowledge
Understanding and navigating transportation regulations is a significant hurdle that can make or break a startup’s success. Local, state, and international regulations vary widely, covering aspects like vehicle safety, emissions standards, and logistics protocols. Investors need to be confident that the startup is aware of these regulations and has strategies for compliance across different markets. This knowledge mitigates potential risks, ensuring smoother scalability and long-term viability. Demonstrating regulatory understanding shows VCs that the startup is well-prepared for expansion and can avoid costly regulatory setbacks.
Capital Requirements
Transportation is a capital-intensive sector, especially for startups dealing with hardware or infrastructure-heavy operations like autonomous vehicles or logistics networks. High R&D, manufacturing, and operational scaling costs require a solid financial plan. Founders should prepare detailed financial projections, including capital expenditure, cash flow, and expected funding stages. Investors appreciate founders with a realistic understanding of capital requirements and a roadmap for sustaining growth over time.
Secure Venture Capital for Your Transportation Startup with Visible
Raising capital for a transportation startup is about more than just innovation - it calls for careful planning, industry know-how, and a supportive network.
Visible offers tools to help transportation founders stay connected with investors, track performance, as well as present key metrics like route efficiency and cost savings.
Find investors at the top of your funnel with our free investor database, Visible Connect. Here's a prefiltered list of VCs active in the transportation sector.
Track your conversations and move them through your funnel with our Fundraising CRM
Share your pitch deck and monthly updates with potential investors
Organize and share your most vital fundraising documents with data rooms
Manage your fundraise from start to finish with Visible. Give it a free try for 14 days here.
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Miami’s Venture Capital Scene: The 10 Best Firms in 2024
In recent years, Miami has gained traction as a vibrant and dynamic hub for startups and venture capital investment. With a unique blend of cultural diversity, strategic access to international markets, and a pro-business environment, Miami is increasingly attracting founders and investors from across the globe. Known for its strengths in fintech, health tech, and the burgeoning blockchain sector, Miami offers startups access to an emerging ecosystem supported by local talent and a growing influx of seasoned investors relocating from traditional tech hubs. This article will explore the top 10 venture capital firms in Miami poised to fund and support high-potential startups in 2024, along with key insights for founders looking to raise capital in this flourishing city.
Why Miami is Ideal for Startup Fundraising
Miami has emerged as a prime destination for startup fundraising, offering several strategic advantages:
Access to International Markets
Miami's geographic location positions it as a gateway to Latin America and the Caribbean, providing startups with unique opportunities to tap into these emerging markets. The city's robust trade infrastructure and multicultural environment facilitate cross-border business operations, enabling startups to expand their reach and customer base effectively.
Favorable Business Climate
Florida's business-friendly environment enhances Miami's appeal for startups. The state boasts no personal income tax and a relatively low corporate tax rate, allowing entrepreneurs to reinvest more capital into their ventures. Additionally, pro-business regulations and government incentives, such as grants and tax credits, support business growth and innovation.
Growing Investor Community
In recent years, Miami has experienced a significant influx of investors and tech leaders relocating from traditional hubs like Silicon Valley and New York. This migration has increased the availability of capital and diversified the investment landscape, providing startups access to a broader network of potential investors and mentors. The city's evolving ecosystem fosters collaboration and innovation, making it an attractive destination for fundraising.
Challenges to Consider When Raising Venture Capital in Miami
While Miami offers numerous advantages for startups seeking funding, founders should be mindful of certain challenges:
Competitive Landscape
As Miami's reputation as a startup hub grows, the number of startups vying for venture capital has increased, intensifying competition for investment. Founders must differentiate their ventures by demonstrating unique value propositions, robust business models, and clear paths to scalability to attract investor interest.
Developing Ecosystem
Compared to established tech hubs like Silicon Valley, Miami's startup ecosystem is still maturing. This can result in limited access to experienced mentors, industry-specific resources, and a comprehensive support network. To navigate this, founders should actively engage with local accelerators, incubators, and networking events to build connections and leverage available resources.
Access to Local Talent
Sourcing specialized talent locally can be challenging due to a smaller pool of experienced professionals in specific tech sectors. To overcome this, startups can implement remote work arrangements to tap into global talent, partner with local universities to develop talent pipelines, and offer competitive compensation packages to attract skilled professionals from other regions.
1. Ocean Azul Partners
As the team at Ocean Azul Partners put on their website, “We are an early-stage venture capital firm passionate about helping entrepreneurs bring innovative technology solutions to market. We’re operators who are determined to use our successes and lessons learned to provide significant value to the teams with which we work. We are proud to support entrepreneurs building unique solutions that will shape the futures of their industries.”
Investment Range
As put on their website, “We write initial checks of size $200K-$2M, with a portion of our fund reserved for follow-on. We play an active role in all of our investments and have board seats on most of them.”
Industries
The team at Ocean Azul primarily focuses on B2B software.
Related Resources: The 12 Best VC Funds You Should Know About
2. Guild Capital
As the team put on their website, “Guild Capital is an early-stage venture capital firm. Founded in 2009, we have been dedicated to venture further than conventional Silicon Valley-based VC patterns to look for growth-stage teams who can evolve into great companies.”
Investment Range
The team at Guild does not publicly state their investment range but does look to companies that have “generated early revenue” or those that have not generated revenue that shows signs of momentum.
Industries
The team at Guild does not have a specific industry but shares their thesis for industries and markets by stating, “We believe in businesses bringing industry-contrarian solutions to large addressable markets. In general, we prefer markets that are not ‘winner-takes-all.”
3. Starlight Ventures
As put on their website, “We are an early stage venture firm designed to address humanity’s biggest challenges and opportunities through breakthrough technology. We aim to enable long-term human flourishing: a prosperous civilization that responds effectively to large-scale opportunities and existential threats alike.”
Investment Range
The team at Starlight does not publicly state their investment range.
Industries
The team at Starlight does not publicly state-specific industries but rather invest in companies that impact long-term human flourishing.
4. Fuel Venture Capital
As put by their team, “Fuel Venture Capital has brilliantly executed against this mission and has become known and trusted as leaders who are founder-focused and investor-driven. Our world-class venture executives have deployed over $400MM of capital from our global LP base following a disciplined “Phased Investment Thesis” managing risk while driving return on investment.”
Investment Range
The team at Fuel invests across multiple stages as put below:
Industries
The team at Fuel invests across many industries but ultimately look to, ‘disruptive global, tech-driven companies.”
5. LAB Miami Ventures
As put by their team, “LAB Ventures is a VC Fund and Startup Studio dedicated to accelerating early-stage real estate and construction technology companies… We invest in early-stage real estate and construction technology companies. We invite investors with an interest in these sectors to join our growing network and stay on the leading edge of tech trends.”
Investment Range
The team at LAB does not publicly state their investment range but typically invests in pre-seed, seed, and series A rounds.
Industries
As put by their team, “Our focus is on early-stage technology businesses that serve the Real Estate and Construction industries – Property Technology, or “PropTech” for short. We take a very broad view of what is included in PropTech, but have a preference for software over hardware, recurring revenue, and enterprise over the consumer.”
6. Krillion Ventures
As put by their team, “Krillion Ventures is a Miami-based venture capital fund that actively invests in early-stage technology companies solving problems in healthcare, financial services, and real estate.”
Investment Range
The team at Krillion Ventures does not publicly list their investment range but gives the following information, “We invest in companies that can demonstrate proof of concept and are seeking capital to accelerate their growth. We make follow-on investments in our portfolio companies on a deal-by-deal basis.”
Industries
The team at Krillion is focused on companies in the health tech space.
7. Miami Angels
As put by the team at Miami Angels, “We bring together exceptional entrepreneurs and accomplished accredited investors to fuel success.
Our group is comprised of over 150 angel investors, many of whom have been entrepreneurs themselves. Beyond providing capital, we collaborate with our founders to ensure they have access to talent and future funding.”
Investment Range
The team at Miami Angels does not publicly state what their investment range is. You can learn more about their investment criteria below:
Industries
As put on their website, “Because of our diverse investor base, we are able to leverage that expertise and invest in many industries.
However, we do NOT invest in hardware, lifestyle brands, consumer goods, biotech, development shops, or financial derivatives.”
8. Secocha Ventures
As put by their team, “Secocha Ventures is an Investment Firm focused on early stage Consumer Products & Services, Fintech & Healthcare Technology companies.”
Investment Range
The team at Secocha Ventures does not publicly disclose their investment range. They do mention, “We invest in startups raising their Pre-Seed, Seed, or Series-A rounds.”
Learn more about the Secocha Ventures investment criteria below:
Industries
As shown above, the team at Secocha Ventures states, “We invest in FinTech, HealthTech, and Consumer Products & Services.”
Related Resources: Private Equity vs Venture Capital: Critical Differences
9. SaaS VC
"Investing in visionary SaaS founders all across the country at the earliest stages"
Investment Range
"Many attractive companies are able to raise significant capital, but often struggle to efficiently fill an entire early-stage (Pre-seed, Seed, Post-Seed) round with value added investors. We like to invest in these rounds and assist in identifying other quality investors to complete the financing. We are honored to collaborate with the best and brightest to create successful enterprises."
Industries
Enterprise , SaaS, Supply Chain, Logistics, Fintech, Cybersecurity, Security, E-Commerce, ESG, Consumer Goods
10. TheVentureCity
As put by their team, “TheVentureCity is a global, early-stage venture fund that refuses to follow the conventional crowd. We offer promising founders investment with bespoke data insights and operating expertise – designed for product-led growth.”
Investment Range
According to their Visible Connect Profile, the team at TheVentureCity typically writes checks between $1M and $4M.
Industries
As put on their website, “We are generalists, but index high on Fintech, HealthTech, AI/ML/Data and B2B SaaS. We like businesses that are “needed” and are not just “nice to haves”.”
Key Sectors Attracting VC Investment in Miami
Miami’s thriving startup ecosystem has become a magnet for venture capital, with key sectors emerging as top choices for investors looking to back high-potential innovations:
Fintech and Financial Services
Leveraging its status as a major financial hub, Miami has become a fertile ground for fintech innovation. The city's robust financial industry presence provides startups with access to established financial institutions and a diverse customer base. Notably, companies like Pipe, a Miami-based fintech startup, have achieved remarkable success, raising $250 million in strategic equity funding and reaching a $2 billion valuation within just ten months of its public launch.
Healthcare and Biotech
Miami's proximity to leading medical institutions and research centers has spurred health tech and biotech startup growth. Innovative companies are developing telemedicine, medical devices, and biotechnology solutions, attracting venture capital interested in advancing healthcare technologies. The city's diverse population provides a unique environment for clinical trials and health tech innovation.
Blockchain and Crypto
With strong support from the local government, Miami is positioning itself as a crypto capital. The city has embraced blockchain technology and cryptocurrencies, hosting major conferences and attracting blockchain startups. Initiatives like MiamiCoin, a city-specific cryptocurrency, exemplify this commitment. In 2021, Miami saw a financing rush of venture capitalists piling into blockchain startups, with investments in the sector skyrocketing a whopping 2,061%.
E-commerce and Logistics
Miami's strategic location and world-class port and logistics infrastructure make it an ideal base for e-commerce and logistics startups. The city's status as a gateway to Latin America and the Caribbean enables efficient distribution channels, attracting venture capital investment in companies focused on supply chain optimization, last-mile delivery solutions, and cross-border e-commerce platforms.
Resources and Support Systems for Founders in Miami
Miami's burgeoning startup ecosystem offers a wealth of resources to support entrepreneurs at various stages of their journey.
Incubators and Accelerators
500 Startups Miami: A renowned global venture capital firm and startup accelerator, 500 Startups Miami provides early-stage companies with funding, mentorship, and access to a vast network of investors and industry experts.
Venture Hive: This accelerator offers a 12-week mini-MBA program focused on business development, providing weekly one-on-one mentoring sessions, consultations with specialists, and access to a growing network of entrepreneurs and investors.
The LAB Miami: A co-working space and accelerator that offers mentorship, workshops, and events for entrepreneurs in tech, design, and social entrepreneurship.
Co-working Spaces
The Hub @ Office Logic
Minds Cowork - Wynwood
Minspace Miami
WeWork Miami
Government and Non-profit Initiatives
Miami-Dade Innovation Authority: A nonprofit organization formed with seed funding from the John S. and James L. Knight Foundation, Citadel CEO Ken Griffin, and Miami-Dade County. It provides grants to startups addressing community challenges in climate, health, housing, transit, and more.
Miami Open for Business Program: Managed by The Miami Foundation, this program supports historically underserved small business owners in Miami-Dade County by providing grants and loans for the purchase and ownership of critical business assets, such as technology, equipment, machinery, inventory, and property.
Miami-Dade Economic Advocacy Trust (MDEAT) Business Resource and Education Grant Program: This program offers $2,500 grants to qualified start-up businesses to improve or stabilize neighborhood businesses throughout Miami-Dade County.
Find out How Visible Can Help Your Startup Today
At Visible, we oftentimes compare a fundraise to a B2B sales and marketing funnel. At the top of your funnel, you are finding new investors. In the middle, you are nurturing and pitching potential investors. At the bottom of the funnel, you are working through diligence and, ideally, closing new investors.
Related Resource: A Quick Overview on VC Fund Structure
With the introduction of data rooms, you can now manage every aspect of your fundraising funnel with Visible.
Find investors at the top of your funnel with our free investor database, Visible Connect
Track your conversations and move them through your funnel with our Fundraising CRM
Share your pitch deck and monthly updates with potential investors
Organize and share your most vital fundraising documents with data rooms
Manage your fundraise from start to finish with Visible. Give it a free try for 14 days here.
Related Resource: How to Find Venture Capital to Fund Your Startup: 5 Methods
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15+ VC Firms in London Investing in Startups in 2024
London’s venture capital scene has grown into a powerhouse of innovation and investment, making it an ideal city for founders seeking funding. With its thriving tech and finance sectors, as well as a rich network of experienced investors, London offers a compelling ecosystem for startups across industries. From fintech and artificial intelligence to clean energy and health tech, London-based VCs are actively funding ventures that push boundaries and shape the future. This guide will provide insight into London’s vibrant VC landscape, what investors look for, and how founders can maximize their chances of securing funding in one of the world’s leading financial hubs.
The London Venture Capital Landscape
London stands out as Europe’s financial powerhouse and a top destination for venture capital, attracting startups from around the globe. In 2023, the city’s startup ecosystem raised approximately $12.9 billion across various sectors, underscoring London’s ability to maintain investment appeal amidst challenging economic conditions. A strong focus on high-growth areas like climate tech, AI, life sciences, and fintech primarily drives this steady influx of capital. Climate tech alone saw record-breaking investment, accounting for 29% of all VC funds in the UK, as both local and international VCs recognize the demand for sustainable solutions in areas like electric mobility and green energy infrastructure.
London’s position as an international financial hub is crucial in its venture capital resilience. The city has become a magnet for global VC firms, with many, such as Andreessen Horowitz and Octopus Ventures, establishing a presence here. London’s regulatory environment, which often favors innovation and its rich talent pool, positions it as a fertile ground for startups aiming to expand their reach beyond the UK. The recent uptick in AI and green tech funding reflects the city’s commitment to supporting industries that address some of today’s most pressing challenges, from reducing emissions to developing cutting-edge machine learning technologies.
Why London is Ideal for Startup Fundraising
London has solidified its position as a premier destination for startups aiming to raise capital, due to its unique advantages, including unmatched access to international markets, a highly skilled talent pool, and an innovation-friendly regulatory environment. As a global financial hub, London offers startups a gateway to markets across Europe and beyond, with more than 2,000 fintech companies alone benefiting from this strategic access. Many of the world’s largest tech firms, like Google and Microsoft, have established their European headquarters in the city, further boosting networking opportunities and creating a vibrant business ecosystem that attracts top-tier investors and talent alike.
London also boasts a diverse talent pool, drawing professionals from around the globe due to its international appeal and cultural richness. The city is home to a high proportion of AI engineering talent, and it attracts a significant number of graduates from prestigious universities like Imperial College London, which contributes to its reputation as Europe’s tech capital. This continuous influx of talent provides startups with the skilled workforce necessary to scale effectively and to innovate across fields like fintech, climate tech, and AI.
Additionally, London’s supportive infrastructure for startups extends to government-backed initiatives such as the Seed Enterprise Investment Scheme (SEIS) and the Enterprise Investment Scheme (EIS). These incentives encourage investments by offering tax reliefs to investors, making it more appealing to fund UK-based startups. London also hosts numerous accelerators and incubators, such as Seraphim Space, and Seedcamp, which offer early-stage support, mentorship, and resources to help startups accelerate growth and access funding more effectively.
Challenges to Consider When Raising Venture Capital in London
While London offers significant opportunities for venture capital, founders face unique challenges, including high competition, high operating costs, and navigating post-Brexit regulations. Recognizing these hurdles and strategizing to address them can help founders enhance their appeal to investors and succeed.
1. High Competition for Investment
London’s reputation as a global tech and financial hub attracts a substantial volume of startups, increasing competition for funding. With thousands of tech firms and numerous high-growth startups, founders face stiff competition for limited VC attention. A practical approach to stand out includes emphasizing clear, scalable growth plans in popular sectors such as fintech, AI, and climate tech—fields that resonate strongly with London investors. Founders should also network effectively, leveraging London’s extensive startup events and co-working spaces to make connections with potential investors.
2. Rising Operational and Living Costs
London’s high cost of living and operating expenses pose a significant challenge for early-stage companies, especially as inflation and rising energy costs continue to impact business expenses. Startups can mitigate these financial pressures by seeking funding through schemes like the Seed Enterprise Investment Scheme (SEIS) or Enterprise Investment Scheme (EIS), which attract investors with tax incentives. Additionally, many London-based accelerators, like Techstars and Seedcamp, provide resources and support that can help offset early-stage costs while offering mentorship and investor access.
3. Navigating Post-Brexit Regulatory Changes
Brexit has introduced new complexities for UK startups, especially around regulatory compliance, data protection, and accessing EU markets. The loss of EU “passporting” rights, which previously allowed financial services firms to operate freely across the EU, means startups targeting European clients may need to establish a presence in the EU or adapt to different national regulations. Startups can overcome these barriers by diversifying their market strategy beyond Europe to regions like the Asia-Pacific and U.S. markets. Additionally, remaining agile and informed about UK-specific regulatory updates can aid in maintaining compliance and market competitiveness.
Related Resource: The 12 Best VC Funds You Should Know About
VC Firms in London Investing in Startups 2024
1. Seedcamp
Focus and industry: The team at Seedcamp focuses on Software, Fintech, SaaS companies.
Related Resource: FinTech Venture Capital Investors to Know
Funding stage: Seedcamp focuses on pre-seed, seed, and series A investments.
As put by the team at Seedcamp, “We invest early in world-class founders attacking large, global markets and solving real problems using technology. We are running our Investment Forum process entirely online and are proactively investing in European companies across pre-seed and seed who are building the breakout businesses of tomorrow.”
While Seedcamp is located in London, they will invest in companies across the globe.
2. Index Ventures
Focus and industry: The team at Index invests in companies across every sector.
Funding stage: Index Ventures invests in stages from seed through growth.
As put by the team at Index Ventures, “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.” The team at Index invests in companies across the globe, across every stage and sector.
3. Accel Partners
Focus and industry: The team at Accel invests is agnostic in their industry focus.
Funding stage: Accel invests in every stage from seed to growth stage.
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. 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.”
4. Balderton Capital
Focus and industry: Balderton Capital is agnostic in their industry focus.
Funding stage: The team at Balderton invests in companies from seed to growth stage.
As put by their team, “Balderton Capital is an early-stage venture firm that’s based on the principles of teamwork and an intense dedication to building companies of lasting value. They provide superior service to entrepreneurs through a unique, team-oriented partnership. This team approach not only makes it more fun for them to come to work everyday, but more importantly, it benefits their portfolio companies. Instead of competing for resources, they share ideas, contacts and resources.”
5. Ascension
Focus and industry: The team at Ascension looks for, “a compelling business model capable of rolling out globally.”
Funding stage: Ascension funds seed and series A companies.
As put by their team, “Ascension is an early-stage VC built by exited entrepreneurs to back the next generation of tech and impact founders.”
The team at Ascension primarily invests in companies that are building in the UK.
6. MMC Ventures
Focus and industry: Fintech, Data-driven Health/Digital Health, Deep Tech, AI, Software, SaaS, Data Infrastructure.
MMC Ventures is one of the most active early-stage tech investors in Europe. Focusing on enterprise AI, fintech, data-driven health, data infrastructure & cloud, we back founders from Series A and Seed stages. During the past two decades, we have formed a unique understanding of what it takes for a start-up to scale. We distinguish ourselves through our commitment of going deeper – on the technologies we invest in, and the partnerships we build with founders.
Related Resource: 15 Venture Capital Firms Investing in VR
Funding stage: The team at MCC primarily invests from Seed-stage through Series A
“We conduct in-house research, providing us with a differentiated understanding of emerging technologies and sector dynamics to identify the areas and themes that have the potential to create the next multi-billion European success stories. Our portfolio spans enterprise AI, fintech, data-driven health, cloud and data infrastructure, with notable investments such as Snowplow, Copper, YuLife, Peak AI, Synthesia, Recycleye, MindsDB, Ably and Signal AI.” –MCC Ventures
Learn more about MMC Ventures by checking out their Visible Connect Profile here →
<h2=”Octopus Ventures”>7) Octopus Ventures
Focus and industry: According to their website, “Our teams are sector experts focusing on six exciting and meaningful areas: B2B Software, Climate, Consumer, Deep Tech, Fintech and Health.”
Funding stage: The team at Octopus invests from seed to series B.
As put by their team, “We back founders who are changing the world for the better. We invest where we can make the greatest positive impact, getting behind businesses that put people, community and the environment first.”
7. LocalGlobe
Focus and industry: LocalGlobe is agnostic in their industry focus.
Funding stage: The team at LocalGlobe primarily focuses on seed stage investments.
LocalGlobe is a venture capital firm that focuses on seed and impact investments. The team at LocalGlobe primarily focuses on companies located in the UK and Europe.
8. Connect Ventures
Focus and industry: List the focus, industry, or types of companies this VC typically invests in.
Funding stage: Give the funding stages this VC typically invests in.
As put by their team, “We’ve been investing in pre-seed and seed stage product companies since 2012, from our home in London. We’re a partner-only, Europe-wide, low volume, high conviction investment team.” The team at Connect Ventures primarily focuses on companies located in the UK and Europe.
9. Downing Ventures
Focus and industry: Downing Ventures is focused on healthcare businesses.
Funding stage: Downing Ventures does not publicly state what stage companies they traditionally fund.
As put by their team, “We offer investors the opportunity to invest in leading UK early-stage healthtech businesses. Your investment will support companies that develop evidence-based, tech-enabled clinical solutions that significantly improve access to high-quality care, improve clinical outcomes for patients, but also reduce the cost of delivery.”
10. Passion Capital
Focus and industry: Passion Capital is focused on digital media/technology companies.
Funding stage: Passion Capital is focused on early stage companies.
As put by their team, “Passion Capital is a partnership of entrepreneurs and operators who are applying our experiences to helping founders and early-stage teams build great digital media/technology companies.
We are committed to fostering an ecosystem of technology, collaboration and executional excellence in Europe, and we believe that the critical differentiator and key asset of a successful business is the passion and ability of its founders. We take pride in the caliber and success of all of our founders and teams including but nowhere near limited to GoCardless, Tray.io, Mendeley, Digital Shadows, urban, Adzuna, Smarkets, Ravelin, Nested, Tide, Spill, Marshmallow, Butternut Box,, PolyAI, Lendable and Monzo Bank.”
11. Notion Capital
Focus and industry: As put by their team, “We focus on B2B SaaS, using data/ML and tech to disrupt an industry. Industry agnostic.”
Funding stage: Notion Capital is focused on companies from seed to series B.
As put by their team, “Notion Capital is a VC firm focused on European SaaS and Cloud.
We’re here to support exceptional founders on their extraordinary journeys.”
12. Playfair Capital
Focus and industry: Playfair Capital is sector agnostic.
Funding stage: Playfair Capital focuses on pre-seed and seed stage investments.
As put by the team at Playfair Capital, “We’ve been helping ambitious and exceptional entrepreneurs build brilliant technology businesses since 2013. We’ve backed the founders of more than 60 companies including Mapillary (acq. Facebook), CryptoFacilities (acq. Kraken), Omnipresent, Orca AI, Ravelin, sprout.ai, Thought Machine, Trouva and Vinehealth.”
13. Fuel Ventures
Focus and industry: Fuel primarily invests in SaaS and marketplace companies.
Funding stage: The team at Fuel is focused on early stage investments.
As put by their team, “Fuel Ventures was founded by a successful entrepreneur who built his own company and scaled it to a £55m exit. We know how hard building fast growth companies is and use all our operational expertise and experienced network to help companies grow. We enjoy rolling our sleeves up and building companies alongside the founders and their teams.”
14. Beringea
Focus and industry: The team at Beringea backs both B2B and B2C businesses.
Funding stage: Primarily focused on Series A and Series B companies
As put by the team at Beringea, “When looking at businesses, we primarily look for a good business with a good busienss model. We aren’t in the unicorn hunting business, but rather look for sound investments that will generate sound returns. We back both B2B and B2C businesses.” The team at Beringea invests in companies in both the US and UK, with slightly different offers for each location:
15. RTP Global
Focus and industry: The team at RTP focuses on B2B and B2C Technology. According to their website, this includes "AI, B2B SaaS, DevOps, fintech, e-commerce and retail, health, tech, climate, and transport."
Funding stage: RTP Global invests in companies ranging from seed to Series B.
Learn more about RTP Global and check out their Visible Connect Profile below:
16. Kinetic Investments
Focus and industry: The team at Kinetic Investments focuses on AI, Crypto, Ecommerce, Marketplace, Media, SaaS.
Funding stage: Pre-Seed, Seed.
"We predominantly invest in AI-driven B2C solutions for traditional business models within the digital landscape, i.e. SaaS, eCommerce, marketplaces, and AIaaS."
17. Concept Ventures
About: Concept is the UKs dedicated pre-seed fund with a deep focus on people and entrepreneurial founding triats. They lead rounds of up to $2.5m, and work closely with teams through the first 12-18 months of their journeys - helping to lay the best foundations for the scaling to come.
Focus and industry: Concept Ventures is a generalist, pre-seed fund in London dedicated to first-cheque investing in Europe.
Funding stage: Concept only does initial cheques, but reserves capital for follow-on.
Connect with Investors in London With Visible
At Visible, we oftentimes compare a fundraise to a B2B sales and marketing funnel. At the top of your funnel, you are finding new investors. In the middle, you are nurturing and pitching potential investors. At the bottom of the funnel, you are working through diligence and ideally closing new investors.
Related Resource: A Quick Overview on VC Fund Structure
With the introduction of data rooms, you can now manage every aspect of your fundraising funnel with Visible.
Find investors at the top of your funnel with our free investor database, Visible Connect
Track your conversations and move them through your funnel with our Fundraising CRM
Share your pitch deck and monthly updates with potential investors
Organize and share your most vital fundraising documents with data rooms
Manage your fundraise from start to finish with Visible. Give it a free try for 14 days here.
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Fundraising
Exploring the Top 10 Venture Capital Firms in New York City in 2024
New York City has firmly established itself as a premier destination for startups and venture capital, offering an unparalleled ecosystem of innovation and investment opportunities. The city's diverse and vibrant entrepreneurial landscape is bolstered by a wealth of resources, including a dense concentration of venture capital firms, accelerators, and incubators.
As a global financial hub, New York provides startups with access to significant funding, strategic partnerships, and a rich talent pool, making it an ideal location for founders looking to launch and scale their businesses. This dynamic environment fosters continuous growth and innovation, positioning New York as a startup and venture capital leader.
Why Raise Venture Capital in New York City?
For startup founders, raising venture capital in New York City brings unique advantages beyond funding. The city’s rich network of seasoned industry players, many of whom are leading experts across sectors like finance, media, health, and technology, creates an unparalleled environment for networking and mentorship. Founders who connect with New York investors can gain valuable insights, establish critical partnerships, and access a wealth of business connections that can accelerate their company’s growth.
New York City also offers a large and highly skilled talent pool, particularly in fields essential to scaling high-growth startups, such as software engineering, data science, and digital marketing. This concentration of expertise, alongside a multicultural and entrepreneurial workforce, enables founders to put together strong teams and leverage top-tier talent.
The city is also a global media hub, giving startups unique opportunities for exposure. A New York presence can help founders tap into PR channels, digital media, and industry events that draw attention to their company’s mission, products, and innovations. For startups aiming to build brand awareness, a NYC-based investor network can be a gateway to high-impact media opportunities that support long-term growth.
Related Resource: How to Find Venture Capital to Fund Your Startup: 5 Methods
The New York Venture Capital Landscape
New York City’s venture capital ecosystem is renowned for its fast-paced growth and sector diversity, making it one of the most attractive destinations for startup founders seeking investment. The city’s well-established financial roots have paved the way for a robust fintech scene, with startups focusing on digital payments, blockchain, and financial inclusivity solutions. Health tech is also flourishing, driven by New York’s world-class medical institutions and a push for innovation in areas like telemedicine, digital health records, and personalized medicine. Media and advertising technology also hold a significant share, leveraging the city’s longstanding position as a global media hub. With ample resources, industry expertise, and access to investors and early customers, New York’s vibrant VC scene offers unique advantages for startups across these and many other sectors.
VC Firms in New York Investing in Startups 2024
1. Union Square Ventures
According to their website, “Union Square Ventures is a venture capital firm focused on early-stage, growth-capital, late stage, and startup financing.”
Investment Range
Union Square Ventures invests in a large range of companies. Looking at their website and you’ll find that they invest in anywhere between Series A and Series D stages.
Industries
Union Square is self-described as a “thesis-driven” investor. They are currently investing off of their Thesis 3.0: “Enabling trusted brands that broaden access to knowledge, capital, and well-being by leveraging networks, platforms, and protocols.”
Check out more about their Thesis 3.0, recent investments, and key ideas below:
2. Insight Partners
According to the Insight Partners website, “Insight accelerates revenue and profit in software companies. Our obsession with software has produced a habit of success. We recognize industry patterns, emerging tech markets and software trends. We’ve accumulated the knowledge to understand the strategies needed to win.”
Investment Range
Insight Partners will invest across every stage but their bread and butter are “scale-up” companies. Insight will invest anywhere from pre-seed to series C and beyond stages — generally with a check size between $10M and $350M.
Industries
Insight is focused on software companies. However, they invest in a number of different sectors that you can find here (or below):
3. Scout Ventures
According to the Scout Ventures website, “Scout Ventures is an early-stage venture capital firm that invests in frontier and dual-use technologies built by veterans, intelligence leaders, and premier research labs. By leveraging our network of professional investors, operators, and experienced entrepreneurs, Scout can effectively execute every aspect of our investment thesis. We’re also paving the way for military veterans and intelligence professionals to access hundreds of millions in government grants and non-dilutive capital. The firm has three locations: Austin, New York City, Washington, DC.”
Investment Range
Scout Ventures writes checks anywhere between $100,000 and $3M. According to their website, “We lead Seed rounds with $1-2M initial checks and reserve capital for follow-on investments up to Series B.”
Industries
According to the Scout website, “We focus on sectors aligned to our experience serving in defense and building multi-billion dollar companies: AI/ML, quantum computing, robotics, advanced materials science, security, space & aerospace, and advanced energy.”
4. Greycroft
According to their website, “Greycroft is a venture capital firm that focuses on technology start-ups and investments in the Internet and mobile markets.”
According to the team at Greycroft, “Greycroft typically makes initial investments from $500,000 at the seed stage to up to $30 million from the growth stage. We are an active Series A investor and typically invest between $1 million and $10 million.
The growth fund targets investing $10 to $30 million on an initial basis and may reserve up to double that amount over time. The growth fund focuses on later-stage companies with proven unit economics, annual revenue growth in excess of 50%, and a management team that is prepared to scale.”
Industries
On the Greycroft website, you’ll find that they invest in a number of different industries — ”We invest across a broad range of Internet sectors. We currently group our portfolio into four verticals: Consumer Internet, Fintech, Healthcare, and Enterprise Software.”
5. RRE Ventures
RRE Ventures has been funding software startups since the 90s. According to their website, “RRE Ventures is a New York-based venture capital firm that offers early-stage funding to software, internet, and communications companies.”
Investment Range
The team at RRE invests in a variety of early-stage tech and software companies. According to their Visible Connect profile, they invest in Series A and B companies with an average check size between $4M and $15M.
Industries
According to their website, “RRE invests in early-stage, technology-enabled companies across all sectors and across the country. We back credible teams executing against incredible ideas to build category-defining businesses.” Check it out here or learn more below:
6. Lerer Hippeau
According to their website, “Lerer Hippeau is an early-stage venture capital fund founded and operated in New York City. We invest in good people with great ideas who redefine categories — and create new ones entirely.”
Investment Range
The team at Lerer Hippeau has 3 funds that invest in pre-seed to Series C and beyond companies.
Industries
The team at Lerer Hippeau is industry-agnostic and will invest in any company — including enterprise and consumer landscapes.
7. Starta
According to their website, “Starta is a venture ecosystem to find, foster, and fund early-stage talent in tech.
Our mission is to provide opportunities to:
International startups who want to scale globally and raise capital
Aspiring industry leaders, seeking professional training
Investors who believe in long-term growth potential and a strong connection with the community
Starta values inclusivity and diversity. Having worked with over 200 startups from all over the world, we intensively focus on bringing equal opportunities and support to the ecosystem.”
Investment Range
Like many of the other firms on this list, Starta has multiple funds that invest in many stages. Starta operates both an accelerator and early-stage fund intended for seed and series A companies.
Industries
The Starta team has a focus on international startups that are looking to expand and scale their US presence.
8. FirstMark
FirstMark is an early-stage venture capital firm headquartered in New York City. As put by their team, “We are proud to back the ambitious founders of the most iconic companies in the world.”
Investment Range
According to their Visible Connect profile, the team at FirstMark writes checks anywhere between $500k and $15M.
Industries
The team at FirstMark invests in companies of a variety of industries and sectors. They have major focus areas of Enterprise, Consumer, and Frontier companies.
9. Hypothesis
According to the Hypothesis website, “We build and fund companies. We’re a startup studio and seed fund that launches, funds, and scales exceptional companies.”
Investment Range
As a startup studio, Hypothesis focuses on finding successful founders and co-founders and helps them launch and scale businesses. In addition to capital, Hypothesis portfolio companies receive resources and help with sales and marketing, hiring, product development, follow-up funding, etc.
Industries
The team at Hypothesis will invest in companies across many industries and are focused on “mission-driven” companies and founders.
10. Interlace Ventures
According to the team at Interlace Ventures, “Investing in early-stage commerce- and retail-technology companies gives us unparalleled access to the latest technological innovations and trends across commerce and retail.
We leverage this access by partnering with global brands and retailers to support their innovation efforts.
We do this through a variety of methods, all of with are tailored after each partner’s individual needs and priorities.”
Investment Range
The team at Interlace invests in pre-seed to series A-stage companies. According to their Visible Connect Profile, they will write checks anywhere between $150k and $600k.
Industries
Interlace has a focus on commerce and retail companies.
11. FJ Labs
FJ Labs is a prominent venture capital firm based in New York City, renowned for its extensive network and hands-on approach to investing. Founded by experienced entrepreneurs Fabrice Grinda and Jose Marin, FJ Labs focuses on creating value for founders and investors. The firm leverages its deep industry expertise and global connections to support startups in achieving their growth potential. FJ Labs is particularly noted for its collaborative ethos, working closely with portfolio companies to navigate the complexities of scaling and market expansion.
Investment Range
FJ Labs typically invests in pre-seed to Series A rounds, with investment amounts ranging from $50,000 to $500,000. Focusing on early-stage investments, FJ Labs provides critical funding enabling startups to develop their products, gain market traction, and prepare for subsequent funding rounds. Their flexible investment strategy allows them to tailor their support to the unique needs of each startup, ensuring that founders receive the resources necessary to succeed.
Industries
FJ Labs has a diverse investment portfolio, strongly emphasizing marketplaces and network effects businesses. They are particularly interested in industries such as e-commerce, real estate tech, fintech, and mobility. FJ Labs seeks out startups that leverage technology to disrupt traditional markets and create new growth opportunities. Their broad industry focus enables them to identify innovative business models and support visionary entrepreneurs across various sectors.
12. VentureOut
VentureOut is a unique venture capital firm and accelerator based dedicated to bridging the gap between international startups and the US market. With a focus on helping startups expand globally, VentureOut offers a comprehensive suite of services designed to support international entrepreneurs in scaling their businesses in the US. The firm combines investment with an accelerator program that provides mentorship, networking opportunities, and strategic guidance, making it an ideal partner for startups looking to make a significant impact in the American market.
Investment Range
VentureOut typically invests in early-stage companies, with investment amounts ranging from $50,000 to $250,000. Their funding is often coupled with participation in their accelerator programs, which offer startups additional resources to refine their business models, develop go-to-market strategies, and establish a presence in the US. This dual approach of investment and acceleration helps startups gain the momentum they need to succeed in a competitive market.
Industries
VentureOut focuses on various industries, with a particular emphasis on technology-driven sectors. They are especially interested in software, fintech, health tech, and enterprise tech startups. By concentrating on these high-growth areas, VentureOut aims to support innovative companies that have the potential to transform industries and drive technological advancements. Their industry focus and international expertise position VentureOut as a valuable partner for startups seeking to expand their reach and impact in the US market.
13. FirstMark
FirstMark is a distinguished venture capital firm known for its commitment to backing visionary entrepreneurs. With a track record of successful investments, FirstMark partners with startups that have the potential to revolutionize their industries. The firm is dedicated to providing not only capital but also strategic support and access to an extensive network of industry leaders. By fostering close relationships with their portfolio companies, FirstMark helps founders navigate the challenges of scaling their businesses and achieving long-term success.
Investment Range
FirstMark typically invests in seed and early-stage companies, with investment amounts ranging from $500,000 to $10 million. This substantial range allows FirstMark to support startups at various stages of their development, from initial product launches to significant growth phases. Their flexible investment approach ensures that each startup receives the appropriate level of funding to meet its unique needs and objectives.
Industries
FirstMark has a broad investment focus with a strong emphasis on technology and innovation. They are particularly interested in sectors such as enterprise software, consumer technology, fintech, healthcare, and emerging technologies like AI and blockchain. FirstMark seeks out startups that are poised to disrupt traditional markets and create new growth opportunities. By investing in a diverse array of industries, FirstMark aims to support the next generation of transformative companies and help shape the future of technology and innovation.
14. New York Angels
New York Angels is a prominent angel investment group based in New York City, dedicated to providing early-stage funding and mentorship to innovative startups. Comprising a diverse network of seasoned entrepreneurs and business leaders, New York Angels offers a wealth of experience and strategic insight to help young companies grow and succeed. The organization is known for its collaborative approach, working closely with founders to refine their business models, develop market strategies, and connect with additional resources and expertise.
Investment Range
New York Angels typically invests in seed and early-stage companies, with investment amounts ranging from $250,000 to $1 million. By focusing on the crucial early stages of a startup's development, New York Angels provides the necessary capital to help companies validate their business ideas, build their initial products, and gain market traction. Their investment approach is designed to offer startups the financial support they need to reach critical milestones and prepare for subsequent funding rounds.
Industries
New York Angels has a broad investment focus, with a particular interest in technology-driven sectors. They frequently invest in industries such as software, fintech, health tech, consumer products, and media. This diverse industry focus allows New York Angels to support a wide array of innovative startups, fostering growth and innovation across multiple sectors. By backing companies that leverage technology to create new solutions and disrupt existing markets, New York Angels aims to contribute to the advancement of the entrepreneurial ecosystem in New York City and beyond.
15. New York Venture Partners
New York Venture Partners (NYVP) is a leading venture capital firm based in New York City, focused on supporting early-stage startups with a combination of capital, mentorship, and strategic resources. Known for its hands-on approach, NYVP aims to help founders build scalable businesses by providing more than just funding. The firm's extensive network and industry expertise enable it to offer valuable insights and connections, making NYVP a vital partner for startups looking to navigate the complexities of growth and market entry.
Investment Range
New York Venture Partners typically invests in seed and early-stage companies, with investment amounts ranging from $100,000 to $1 million. This investment range is designed to provide startups with the essential funding required to develop their products, refine their business models, and achieve early market traction. NYVP's focus on early-stage investments ensures that startups receive the support they need during the critical phases of their development.
Industries
NYVP has a diverse investment focus, particularly on technology and innovation-driven sectors. They are especially interested in industries such as artificial intelligence, machine learning, digital media, consumer internet, and enterprise software. By targeting these high-growth areas, New York Venture Partners aims to back startups that have the potential to disrupt traditional markets and introduce groundbreaking technologies. Their broad industry focus allows them to identify and support promising startups across a wide range of fields, fostering innovation and entrepreneurial success in the New York City area and beyond.
16. Primary
Primary is a prominent venture capital firm based in New York. It is dedicated to investing in early-stage startups and helping them grow into market leaders. Known for its data-driven approach and hands-on involvement, Primary provides comprehensive support to its portfolio companies. The firm leverages its deep industry knowledge and extensive network to offer strategic guidance, operational expertise, and valuable resources. Primary's commitment to building long-term partnerships with founders makes it a trusted ally for startups navigating the challenges of scaling and achieving sustainable growth.
Investment Range
Primary typically invests in seed and Series A rounds, with investment amounts ranging from $1 million to $5 million. This substantial investment range allows Primary to provide the necessary capital for startups to develop their products, expand their teams, and accelerate their go-to-market strategies. By focusing on early-stage investments, Primary ensures that founders receive the financial support they need during the critical phases of their company's development.
Industries
Primary has a strong focus on technology-driven sectors, particularly those with the potential for significant market disruption. They are especially interested in industries such as SaaS, e-commerce, fintech, health tech, and proptech. Primary seeks out startups that leverage innovative technologies to solve complex problems and create new market opportunities. Their industry focus allows them to identify and support high-potential startups across various fields, fostering innovation and driving growth in the New York City startup ecosystem.
Challenges to Consider When Raising Venture Capital in New York City
While New York City offers many advantages for founders, it’s also one of the most competitive VC landscapes in the world. First, the number of startups vying for investor attention can make it challenging to stand out. Founders should be prepared to present a compelling story and clear differentiation showcasing their startup's unique value to its sector.
Costs associated with raising in New York can also be higher, from operational expenses to talent acquisition. While access to skilled talent is beneficial, competing with larger, established companies for top hires may require higher budgets, especially in technical and executive roles.
Another consideration is the distinct approach some NYC VCs take compared to investors in other regions. New York investors may prioritize fast growth and revenue-generating potential, particularly in highly competitive sectors like fintech and media. Founders may need to show evidence of early traction and market fit to build credibility with these investors. Lastly, the pace of the city’s startup environment is brisk, often requiring founders to maintain a quick, adaptable approach to accommodate investor expectations and the ever-evolving market.
How to Approach New York City Venture Capital Firms
Founders can gain a competitive edge by demonstrating local traction or partnerships within the NYC ecosystem. Whether securing early customers in the area or collaborating with local industry leaders, evidence of a New York footprint can be highly appealing to investors. Founders should also remain persistent and adaptable, following up with VCs respectfully and iterating on their pitch based on feedback. With preparation, a solid network, and a clear presentation, founders can better capture the attention of New York City’s top venture capitalists.
Connect with Investors in New York With Visible
At Visible, we often times compare a fundraise to a B2B sales and marketing funnel. At the top of your funnel, you are finding new investors. In the middle, you are nurturing and pitching potential investors. At the bottom of the funnel, you are working through diligence and ideally closing new investors.
With the introduction of data rooms, you can now manage every aspect of your fundraising funnel with Visible.
Find investors at the top of your funnel with our free investor database, Visible Connect
Track your conversations and move them through your funnel with our Fundraising CRM
Share your pitch deck and monthly updates with potential investors
Organize and share your most vital fundraising documents with data rooms
Manage your fundraise from start to finish with Visible. Give it a free try for 14 days here.
Related Resource: Private Equity vs Venture Capital: Critical Differences
Related Resource: The 12 Best VC Funds You Should Know About
Related Resource: 11 Top Venture Capital Firms in Boston
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Accelerator vs. Incubator: Key Differences and Choosing the Best Fit for Your Startup
Choosing between an accelerator and an incubator can significantly impact your startup’s trajectory. While both programs provide crucial support to startups, they differ in structure, resources, and focus. Accelerators are known for their intensive, time-bound approach to rapid growth, whereas incubators offer extended, resource-rich environments ideal for early-stage companies still refining their ideas. In this article, we’ll explore the pros and cons of each option, as well as key differences in program structure, funding, and support, and guide you on choosing the best fit for your startup’s current stage and goals. By the end, you’ll clearly understand which path aligns best with your vision and growth objectives.
Related resource: The Ultimate Guide to Startup Funding Stages
What Is a Startup Accelerator?
A startup accelerator is a structured, time-limited program designed to help startups achieve rapid growth. Accelerators typically last between three to six months and are aimed at startups in their early growth phase, offering intensive mentorship, funding opportunities, and networking access. Participating startups receive hands-on support from seasoned entrepreneurs, investors, and industry experts, accelerating their business model validation, market-entry, and scaling. In exchange for these resources, most accelerators take an equity stake in the startups they support. Accelerators are particularly beneficial for founders looking to fast-track their business and make valuable industry connections that can lead to additional funding or strategic partnerships.
Pros of Participating in a Startup Accelerator
Fast Growth: Accelerators are tailored to speed up a startup’s progress, pushing founders to achieve growth milestones rapidly within a condensed timeframe.
Access to Capital: Many accelerators offer initial funding, often in exchange for equity, to help startups build momentum without delaying fundraising.
Mentorship: Startups gain access to experienced mentors, including successful entrepreneurs and industry experts, who help them refine their business strategies and navigate early challenges.
Networking Opportunities with Investors: Accelerators open doors to a network of investors, including venture capitalists and angel investors, creating valuable connections that can lead to further funding opportunities.
Resource Access: Many programs provide access to critical resources, such as office space, technical support, and specialized software, reducing overhead and allowing startups to focus on growth.
Increased Credibility: Participating in a reputable accelerator can boost a startup’s credibility, signaling quality and potential to investors and industry partners alike.
Cons of Participating in a Startup Accelerator
Equity Trade-Offs: Most accelerators require startups to give up a percentage of equity in exchange for mentorship and funding. For some founders, this equity stake may feel substantial, especially if they are in the early stages.
Intense Time Commitment: Accelerator programs demand a high level of engagement, often requiring founders to dedicate all their time and resources to meet program milestones. This can be challenging for teams with limited personnel or other existing commitments.
High-Pressure Environment: Accelerators' structured, fast-paced nature can create a high-pressure environment. While the goal is to achieve rapid growth, this intensity may lead to burnout or rushed decisions that could impact long-term sustainability.
Limited Flexibility: Accelerators typically follow a set curriculum and timeline, which may not be suitable for every startup’s unique needs or growth pace, potentially limiting their adaptability.
Short-Term Focus: While accelerators are designed to spur growth quickly, they often emphasize short-term metrics and milestones, which may sidetrack some startups from focusing on their long-term vision and product development.
What Is a Startup Incubator?
A startup incubator is a program designed to nurture early-stage startups by providing resources, mentorship, and workspace within a supportive, collaborative environment. Unlike accelerators, incubators typically offer more flexible, open-ended timelines, allowing startups to grow at their own pace. They cater to startups still in the idea or development phase, helping them refine their business models, develop prototypes, and validate their products. Through access to industry mentors, shared workspaces, and potential networking opportunities, incubators foster a low-pressure setting where startups can build a strong foundation before pursuing aggressive growth strategies.
Related resource: What is an Incubator?
Pros of Joining a Startup Incubator
Extended Support: Incubators provide long-term support without strict timelines, allowing startups to develop at a pace that aligns with their growth needs and market readiness.
Access to Resources: Many incubators offer access to essential resources, such as office space, business tools, and technical support, helping startups reduce operational costs and focus on development.
Low-Pressure Growth Environment: Incubators are less intense than accelerators, fostering a nurturing environment where startups can experiment, pivot, and refine their products without the pressure of immediate results.
Mentorship and Guidance: Founders benefit from consistent mentorship from experienced entrepreneurs and industry professionals who help with product development, market fit, and business strategy.
Collaborative Networking: Incubators often house multiple startups under one roof, encouraging collaboration, knowledge-sharing, and partnerships that can lead to valuable insights and synergies.
Potential for Seed Funding: Although funding isn’t always a primary focus, some incubators provide seed capital or connect startups with investors, offering support without the immediate equity trade-offs common in accelerators.
Related resource: 10 Top Incubators for Startups in 2024
Cons of Joining a Startup Incubator
Slower Growth Pace: Incubators are designed for gradual development, which may not suit startups eager for rapid growth or quick market entry. This slower pace can delay scaling efforts, especially for teams ready to accelerate.
Limited Access to Capital: Unlike accelerators, incubators often provide fewer direct funding opportunities. Startups may need to seek external funding to support growth once they outgrow the incubator’s resources.
Less Emphasis on Scaling Quickly: Incubators focus on nurturing ideas and building a strong foundation, often without immediate pressure to scale. While beneficial for early-stage startups, this may be a drawback for founders aiming to fast-track their company’s growth.
Potential for Equity or Fees: Some incubators still require equity or charge participation fees in exchange for resources and mentorship, which may feel limiting for startups without substantial initial funding.
Lack of Investor Exposure: While incubators offer valuable mentorship and networking within the community, they may lack the frequent investor interactions that accelerators provide, possibly extending the time needed to secure capital.
Key Differences Between Accelerators and Incubators
While both accelerators and incubators offer valuable support to startups, they serve distinct purposes and cater to different needs. Accelerators are typically short-term programs designed for startups ready to grow rapidly, providing intense mentorship, funding, and connections within a structured timeframe. On the other hand, incubators take a more gradual, long-term approach, focusing on nurturing early-stage startups as they develop foundational ideas and products. Choosing between these programs depends on factors like the stage of your startup, growth goals, and resource needs. Below, we’ll dive into the primary differences, from program duration and startup stages to funding and support structures.
Program Duration
Accelerator programs are typically short and intensive, lasting three to six months. This limited timeframe is designed to help startups achieve significant growth milestones quickly. The program often ends with a demo day, where founders present to potential investors. The pace is rapid, and a structured curriculum keeps participants focused on quick scaling and preparing for market entry or funding rounds.
On the other hand, incubators operate on a more flexible, extended timeframe that may last several months to even years. This allows early-stage startups to develop their ideas, validate products, and establish a solid foundation at a manageable pace. Unlike accelerators, incubators often don’t set strict deadlines, giving startups the freedom to progress based on their unique needs and market readiness.
Stage of Startups
Accelerators are best suited for startups in their growth phase—those with a developed product or service ready for rapid scaling. These programs focus on startups that have validated their market fit and want to increase traction, secure funding, or expand operations. Accelerators help these growth-phase startups overcome scaling challenges, gain market visibility, and connect with investors for further funding.
Incubators are designed for early-stage companies that may still be in the ideation or initial development stages. These startups often refine their business models, conduct product testing, or work toward market validation. Incubators provide a supportive environment for these early-stage startups, offering mentorship and resources to help them build a solid foundation before moving into aggressive growth.
Goal and Focus
Accelerators are fundamentally geared toward rapid growth and scaling. Their programs are structured to push startups toward tangible outcomes- whether securing investors, achieving significant market traction, or preparing for acquisition. The focus is on creating a high-growth trajectory within a short period, with intensive support to expedite business expansion, scaling strategies, and revenue generation.
In contrast, incubators focus more on nurturing early ideas and fostering long-term development. Their goal is to support startups as they refine their business models, develop products, and establish a strong foundation. Incubators provide a slower-paced, collaborative environment where startups can experiment and adapt without immediate pressure to scale, making it ideal for founders looking to solidify their ideas before moving into high-growth phases.
Funding
Accelerators often provide funding to participating startups, typically in exchange for a percentage of equity. This initial capital fuels rapid growth, allowing startups to build momentum and prepare for further funding rounds. In addition to direct funding, accelerators connect startups with investors, increasing their chances of securing additional capital upon program completion.
Incubators, on the other hand, may offer fewer direct funding opportunities. Instead, they focus on providing other valuable resources, such as workspace, business tools, mentorship, and industry connections. While incubators might not directly invest, they still offer support that can reduce operational costs and provide startups with the foundational tools they need to become investment-ready as they progress.
Support Structure
Accelerators offer intensive mentorship and networking opportunities within a compressed timeframe, typically providing startups with daily or weekly guidance from industry experts, seasoned entrepreneurs, and investors. This high-touch support is geared toward rapid skill-building and scaling, with structured workshops, coaching sessions, and introductions to valuable networks. The goal is to equip startups with the tools they need to make substantial progress quickly.
In contrast, incubators provide ongoing support and collaboration over a much longer period. Mentorship and networking are still central, but the approach is more gradual, allowing startups to explore and evolve without the pressure of strict timelines. Incubators often foster a collaborative environment where startups can regularly connect with mentors, other founders, and industry partners, enabling a steady progression suited to each startup’s unique pace and needs.
Which One Is Right for Your Startup?
Deciding between an accelerator and an incubator comes down to your startup’s current stage, goals, and specific resource needs. Each program offers distinct advantages and caters to different types of startups, so understanding your priorities is essential. The following sections will guide you through evaluating your startup’s stage, growth goals, resource requirements, and time commitment, helping you determine whether an accelerator’s fast-paced environment or an incubator’s nurturing approach is the best fit for your path forward.
Evaluate the Stage of Your Startup
Identifying your startup's stage is a crucial first step in deciding between an accelerator and an incubator. An incubator may be the ideal choice if your startup is in the early stages- still refining its business model, testing prototypes, or establishing market fit. Incubators provide the resources, mentorship, and time needed to develop a strong foundation, which can be invaluable for startups not yet ready to scale.
On the other hand, if your startup has a validated product or service and is prepared to grow, an accelerator could be the better fit. Accelerators specialize in fast-tracking growth for startups in the expansion phase, providing funding, connections, and mentorship to help you scale quickly. By aligning your choice with your startup’s stage, you’ll set yourself up to gain the maximum benefit from either program.
Consider Your Growth Goals
Your long-term vision and growth objectives are key in deciding whether an accelerator or incubator is the right choice. An accelerator's fast-paced environment may be a better fit if your primary goal is rapid growth, market entry, or scaling quickly. Accelerators are designed to drive immediate results, making them ideal for startups with ambitious, near-term goals like raising capital, increasing traction, or preparing for acquisition.
Alternatively, if your growth goals involve building a strong, sustainable foundation and refining your product over time, an incubator’s nurturing structure might better suit you. Incubators offer a low-pressure environment focused on long-term development, allowing you to refine your vision and explore different strategies without the rush to scale immediately. Choosing based on your growth goals will help ensure that the program you select supports your startup’s trajectory.
Assess Your Resource Needs
Evaluating your startup’s resource needs is essential when deciding between an accelerator and an incubator. An accelerator may be the ideal choice if your primary requirements include direct funding, mentorship from experienced entrepreneurs, and immediate access to investor networks. Accelerators typically provide initial funding in exchange for equity, along with robust mentorship and a built-in investor network designed to help startups achieve quick, resource-intensive growth.
However, an incubator may be a better fit if your startup’s needs are more foundational- such as mentorship to develop a business model, collaborative workspaces, and time to experiment. Incubators offer essential resources like workspace and expert guidance without the pressure to secure immediate funding or fast-track scaling, making them ideal for startups focused on product development and market testing.
Time Commitment
The time commitment required by an accelerator or incubator can significantly impact your startup’s progress, so choosing a program that aligns with your team’s availability and bandwidth is essential. Accelerators demand an intensive, full-time commitment over a few months, pushing teams to meet rigorous milestones quickly. This structure benefits startups ready to dedicate all their resources to growth but may be challenging for already stretched-thin teams.
In contrast, incubators offer a more flexible timeframe, allowing startups to grow gradually over several months or even years. This approach provides room to experiment, pivot, and build foundational elements without the intense time constraints of an accelerator. If your team requires a balanced schedule that accommodates other commitments or prefers a less-pressured pace, an incubator’s extended timeframe may be better.
Connect with the Right Investors with Visible
Choosing between an accelerator and an incubator depends on your startup’s stage, growth goals, resource needs, and available time commitment. Accelerators are ideal for startups ready for rapid growth, providing funding, mentorship, and networking in a fast-paced environment. Incubators, on the other hand, support early-stage startups with a gradual, nurturing approach, focusing on long-term development without the pressure to scale quickly. By aligning your choice with your startup’s needs, you’ll set yourself up for success in the right program.
Looking to connect with investors and manage your growth effectively? Visible can help simplify the process by providing data rooms, financial tracking, and investor relations management, ensuring you’re ready when due diligence begins. Give it a free try for 14 days here.
founders
Operations
Fundraising
How to Get Your Startup Ready for Investors’ Operational Due Diligence
When preparing to raise capital, it’s not just your product or market that investors will scrutinize- your internal operations will be in the spotlight too. Operational due diligence is critical in this process, helping investors evaluate your company’s ability to scale and sustain growth. This article will walk you through everything you need to know about operational due diligence and how to get your startup ready to impress investors, from financial management to optimizing internal processes and ensuring compliance.
What Is Operational Due Diligence?
Operational due diligence is the process investors use to evaluate a company’s internal operations, systems, and controls before making an investment. Unlike financial due diligence, which focuses on the numbers, operational due diligence takes a closer look at how a company runs on a day-to-day basis. It helps investors assess potential risks, operational efficiency, and the company’s capacity to scale. By examining everything from business processes to organizational structure, investors can better understand whether your startup is well-positioned to deliver sustained performance over time.
Investment Due Diligence vs. Operational Due Diligence
When preparing for investor evaluations, it's important to understand the distinct roles that investment due diligence and operational due diligence play in the decision-making process.
Related resource: Types of Venture Capital Funds: Understanding VC Stages, Financing Methods, Risks, and More
Investment Due Diligence primarily focuses on your startup's financial aspects. This includes analyzing financial statements, revenue models, profitability, market valuation, and potential return on investment. Investors use this information to assess your company's financial health and growth potential, ensuring that the numbers align with their investment criteria and risk tolerance.
Operational Due Diligence, on the other hand, delves into your business's internal workings. It examines your company's operations, systems, processes, and controls to evaluate efficiency, scalability, and risk management. This type of due diligence assesses how well your startup is managed daily, including areas like supply chain management, technology infrastructure, organizational structure, and compliance with legal and regulatory standards.
While investment due diligence answers the question, "Is this a financially sound investment?" operational due diligence addresses, "Can this company operate efficiently and sustain growth?" Both forms are crucial for investors to make informed decisions, ensuring that your startup is financially viable and well-equipped to handle future challenges and opportunities.
Related resource: Top VCs Driving Transformation in Supply Chain and Logistics
Why Investors Conduct Operational Due Diligence
Investors conduct operational due diligence to understand how a startup functions beyond its financial statements. This process is essential for identifying potential risks, ensuring operational efficiency, and verifying the company’s ability to sustain long-term performance.
By evaluating key areas such as internal processes, management practices, and organizational structure, investors can uncover weaknesses that could pose risks to future growth. Operational due diligence also helps investors confirm that your business is scalable, compliant with regulations, and well-equipped to navigate challenges. Ultimately, it ensures that the operational side of your startup aligns with its financial projections, reducing uncertainties and fostering confidence in your ability to deliver on promises and drive long-term success.
Related resource: What to Include in a Data Room for Investors: Essential Guide for Startups
Key Areas to Address in Operational Due Diligence
Investors will closely examine several critical areas to assess your startup's overall health and efficiency when preparing for operational due diligence. Ensuring that these areas are well-organized and optimized can significantly enhance investor confidence. Below are the key areas investors will focus on during the operational due diligence process:
Business operations and processes: Investors will evaluate your day-to-day business activities to ensure they are efficient, scalable, and capable of supporting growth.
Financial management and controls: A detailed review of your financial controls, reporting, and cash flow management helps investors determine the accuracy and reliability of your financial data.
Team and organizational structure: Investors want to see a well-defined organizational structure with a competent management team capable of executing the business plan and adapting to future challenges.
Legal and regulatory compliance: Your startup must adhere to industry regulations, data privacy laws, and legal obligations. Investors will check for any potential legal risks that could disrupt your operations.
Technology and systems: The technology and systems that power your startup must be scalable, secure, and efficient to meet future demands. Investors will assess the reliability and flexibility of your tech infrastructure.
Data and documentation: Well-organized documentation—such as operational workflows, financial reports, and contracts—demonstrates your company’s transparency and readiness for investor scrutiny.
Customer and client relationships: Investors will also examine the strength and sustainability of your customer relationships, looking for evidence of customer satisfaction, retention, and growth potential.
How to Be Prepared for Operational Due Diligence
Being well-prepared for operational due diligence can make a significant difference in securing investor confidence. It’s not just about having solid financials; investors want to see that your startup is organized, efficient, and ready for growth. By proactively addressing critical areas like documentation, processes, and compliance, you’ll be better positioned to showcase your startup’s potential. Below are several actionable steps to ensure your business is fully prepared when investors start digging into your operations.
1. Organize and Update Key Documentation
One of the most critical steps in preparing for operational due diligence is organizing and updating all key documentation. Investors will want to see clear, accurate records that reflect the inner workings of your business. Start by ensuring that your financial statements are up-to-date and thoroughly reviewed for accuracy. Additionally, prepare detailed operational workflows that outline how day-to-day tasks are handled and how different departments interact.
Make sure your organizational charts are current and show clear roles and responsibilities within the team. Key contracts, such as those with major clients or vendors, should be readily available and in good standing. Finally, gather all vendor agreements and any other crucial documents that reflect the company’s obligations and partnerships. By having this documentation well-organized in advance, you’ll save time and instill confidence in investors.
2. Evaluate and Optimize Internal Processes
Investors will examine your startup's operations closely, making it essential to review and optimize your internal processes before due diligence begins. Start by assessing areas like supply chain management, ensuring that workflows are efficient, cost-effective, and scalable. Look for bottlenecks or inefficiencies in sourcing, producing, and delivering your resources.
Next, evaluate your technology systems, ensuring that they are up-to-date, secure, and capable of supporting business growth. Whether it’s customer management software or product development tools, your technology should enhance rather than hinder operations.
Finally, review your HR processes, including recruitment, onboarding, and performance management, to ensure they are well-structured and support a healthy, productive work environment. By optimizing these key internal processes, you’ll demonstrate to investors that your startup is well-positioned for future success.
3. Demonstrate Strong Financial Controls
Your startup must demonstrate strong financial controls to instill confidence in investors. This begins with ensuring that your financial reporting is accurate and current. Investors will closely examine your cash flow statements, so it’s essential to provide clear documentation of how money is being managed within the company, from revenues to expenses.
Additionally, effective expense tracking is key. Make sure that all spending is documented, categorized, and aligned with your budget. Investors will want to see that your startup maintains discipline in how it allocates resources. Establish and follow a solid budgeting process that reflects realistic growth and operational costs. Having these financial controls in place not only demonstrates that your startup is well-managed but also assures investors that their capital will be responsibly handled.
4. Showcase Scalability Readiness
Investors want to know that your startup has the potential to grow without significant operational disruptions, making it crucial to demonstrate your scalability readiness. Highlight the systems, technology, and processes that are designed to expand alongside your business. This includes your tech infrastructure, which should be flexible enough to handle increased demand, whether it’s managing more users, higher transaction volumes, or expanding into new markets.
Additionally, emphasize your operational flexibility—whether your processes can easily adapt to growth, such as scaling up production, hiring more staff, or optimizing distribution channels. By showcasing your startup’s ability to scale efficiently, you can assure investors that your business is prepared to meet future challenges and opportunities without compromising performance.
5. Prepare Your Team for Involvement
During operational due diligence, investors will likely want to meet key team members to better understand their roles and how they contribute to the company’s success. It’s important to ensure that your team is prepared to confidently explain their responsibilities, key achievements, and how their work supports the startup’s overall growth and vision.
Each team member should be able to clearly articulate how their role fits into the broader strategy, whether they oversee product development, manage customer relationships, or handle financial operations. Encourage team members to familiarize themselves with recent successes and upcoming initiatives so they can speak knowledgeably about the company’s direction. By preparing your team for involvement in this process, you’ll demonstrate to investors that you have a capable and aligned workforce ready to execute the business plan.
6. Ensure Regulatory and Legal Compliance
Investors will want to confirm that your startup is fully compliant with relevant industry regulations, data privacy laws, and legal obligations. This includes adherence to frameworks like GDPR, HIPAA, or any other industry-specific regulations that may apply to your business. Ensuring compliance demonstrates that your startup can operate legally and ethically in its market, reducing the risk of future legal issues.
Prepare documentation that verifies compliance, such as regulatory certificates, privacy policies, and any legal agreements with customers, vendors, or partners. This readily available information will reassure investors that you’ve taken the necessary steps to mitigate legal risks and are committed to maintaining a strong ethical standing.
7. Utilize Technology for Data Management and Reporting
Leveraging the right technology is essential for effectively managing and presenting operational metrics to investors. Tools like Visible allow you to seamlessly track and report critical data in a clear, organized manner. These platforms make creating customized reports highlighting your startup’s performance easier across key operational areas, such as financials, customer growth, and operational efficiency.
By utilizing technology to streamline data management, you can ensure that your metrics are accurate, up-to-date, and accessible at all times. This not only helps in preparing for due diligence but also enhances transparency with investors, allowing them to assess your startup’s potential easily and track progress over time.
Manage Investor Relations Easily with Visible
Preparing your startup for operational due diligence requires careful attention to detail across several critical areas, from financial controls and compliance to scalability and team readiness. By proactively organizing your documentation, optimizing internal processes, and leveraging technology, you’ll be ready to present your business confidently to investors.
Visible can help simplify the process by providing data rooms, financial tracking, and investor relations management, ensuring you’re ready when due diligence begins. Give it a free try for 14 days here.
Related resource: Deal Flow: Understanding the Process in Venture Capital
founders
Product Updates
Shaping the Future: Unveiling Our Brand Refresh
Visible started as a way for founders to update their investors but has since transformed into a purpose-built platform for both founders and investors. Since 2014, we’ve powered over 3M interactions between founders and investors. Our brand refresh represents our commitment to equip founders and the investors who back them.
Founders can now manage their investor relationships and capital raises from start to finish. Investors can centralize data, uncover insights, and report to their LPs and stakeholders—all from one place. We are excited to unveil our refreshed brand, marking the beginning of the next decade in our dedication and commitment to founders and investors.
Equipping Founders and Investors for Growth
Raising capital is fundamentally about building relationships. Founders and investors spend months forging connections that, once solidified by a term sheet, can evolve into partnerships lasting 8 to 10 years and beyond.
We set out to highlight the people behind the investments, not just the companies or firms they represent. As we continue to grow, you'll notice more familiar faces from different startups and venture funds featured on our site (👋 Hi Lacey!).
Shaping Our Future
Across our website and marketing assets, you’ll see 3D shapes floating in the background. While they add aesthetic appeal, they also carry a deeper meaning. For example:
We believe raising capital from VCs or LPs closely resembles a fundraising funnel, a concept brought to life through the funnel shape that appears across various pages and assets.
Sphere, torus, and pill shapes symbolize the connections between VCs, founders, and stakeholders, reflecting the interwoven nature of these relationships. These forms also symbolize forward momentum and the continuous progression within the venture ecosystem.
As our product has evolved to offer greater flexibility in moving data into and out of Visible, you'll notice pipes integrated into the design, visually representing the seamless flow of data through our platform.
Logo and Wordmark
To maintain and perpetuate our brand equity, we opted to anchor our brand to our current logo and wordmark. The Visible logomark is made from three overlapping, equilateral triangles. Each triangle is slightly transparent, allowing the mark to interact with other design elements. These triangles represent human relationships and the connection between founders and investors, which is core to our mission and vision for our company.
Color Palette
Our signature black primary color remains, but we've refined our palette for a fresh look. We've transitioned from a complex, rich color scheme to a more cohesive and defined palette, creating a unified and bold approach to color across our brand. Introducing the new Visible color palette:
Product
Guided by our core values of trust and transparency, we designed our product to embody these principles. Our product visuals across the site are predominantly high-fidelity for the first time, highlighting its capabilities visually rather than relying solely on words. The updated typography and refined color palette are seamlessly integrated into our product screens, further enhancing the overall brand experience.
Voice & Tone
A brand is more than just its visual identity; it requires a voice and tone that harmonizes with its design. We aimed for our voice to be authentic, credible, and consistent, supporting both investors and founders alike. This commitment led us to define key principles for our voice and tone:
Be a guide
Less is more
Recognize that different users face different challenges
As you explore our marketing site, we hope Visible reflects these values and resonates with you.
Transparency = Trust
As we noted earlier, raising capital is fundamentally about relationships. Trust and transparency form the foundation of any strong connection. Throughout our website, you'll notice subtle transparency elements that embody this core principle.
This new iteration of our brand is built to scale, but that doesn’t mean we won’t continue to evolve and elevate the experience for the betterment of our prospects and customers. Here's to shaping the next 10 years!
Up and to the right,
The Visible Team
founders
Fundraising
11 Presentation Design Trends for Startup Pitch Decks in 2024
In 2024, standing out to investors requires more than just a strong business idea- it demands a visually captivating and engaging pitch deck. From bold typography to interactive elements, the latest presentation design trends are transforming how startup founders tell their stories. In this article, we’ll explore 11 key design trends that can help elevate your pitch deck, making it more dynamic, professional, and memorable. Stay ahead of the curve and learn how these trends can captivate investor attention and set your startup apart.
Related resource: Best Practices for Creating a Top-Notch Investment Presentation for Investors
1. Large and Bold Typography
Using large, bold typography in pitch decks has become a powerful tool for grabbing attention and enhancing readability. This trend helps convey key points clearly, ensuring that investors don’t miss important details. Larger fonts emphasize your most crucial messages, while bold lettering creates a visual hierarchy, guiding the audience's eyes to the most relevant content. This approach is especially effective for headlines, key statistics, and calls to action, creating a lasting impact with minimal effort. In an era where attention spans are shrinking, using bold, oversized typography ensures that your startup’s message stands out and resonates quickly.
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2. Dynamic Text Animations
Dynamic text animations are a powerful way to bring energy to your pitch deck, making it more engaging and keeping the audience's attention. When used strategically, animated text can highlight key points as they appear on the screen, creating a sense of flow and guiding the viewer through the narrative. These animations add a layer of professionalism and excitement to the presentation, helping your deck stand out from static, traditional formats. However, using animations sparingly is important- too much movement can distract from the message. By animating crucial data points or transitions, you can reinforce key information and keep investors focused on your story.
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3. Gradient Color Schemes
Gradient color schemes are making a strong comeback in pitch deck designs, offering a modern and visually striking aesthetic. By blending two or more colors, gradients add depth, dimension, and a sense of sophistication that flat colors can’t always achieve. This design trend allows for more dynamic visuals, making slides look polished and engaging. Gradients can be used subtly as backgrounds to set a tone or boldly to highlight key sections, guiding the audience’s focus. When paired with minimalistic content, these schemes give your presentation a sleek, futuristic feel while maintaining clarity and readability. The right gradient can evoke emotions, making your message not just seen but felt.
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4. Asymmetrical Layout
Asymmetrical layouts are becoming popular in pitch deck design, offering a break from traditional presentations' conventional, balanced structure. By deliberately placing elements off-center or in unconventional positions, asymmetry creates visual interest and communicates a sense of innovation. This design technique can reflect the disruptive nature of many startups, subtly reinforcing the idea that your business is pushing boundaries. An asymmetrical layout keeps the audience’s eyes moving, preventing slides from feeling static or predictable. The key is to maintain balance through visual weight- ensuring that the overall design still feels cohesive and not chaotic. When done right, this layout draws attention to key points while keeping the presentation dynamic.
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5. Overlapping Elements
The use of overlapping elements in pitch deck design adds layers of visual complexity, helping to create a dynamic flow between content and visuals. By stacking images, text, and shapes on top of one another, you can create a sense of depth and movement that draws the viewer’s attention and encourages them to engage with the slide. This design trend can break the monotony of strictly separated elements, making the presentation feel more modern and visually engaging. Overlapping elements also allow for creative use of space, enabling you to highlight important information while maintaining a clean and structured look. It’s a way to add subtle sophistication without overwhelming the slide.
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6. Retro Aesthetic
Retro aesthetics are experiencing a resurgence in pitch deck design, combining a sense of nostalgia with a fresh, contemporary twist. This trend taps into visual styles from past decades, such as the bold colors and geometric shapes of the 1980s, which can evoke familiarity and fun while still feeling innovative. Startups are leveraging retro design to stand out from traditional presentations' polished, corporate look, making their decks more memorable. This approach brings a lively, creative energy to slides, making them visually interesting and reflective of a forward-thinking, unconventional brand.
Image source
7. Redefining Data Visualization
In 2024, data visualization is being reimagined to make complex information more accessible and visually engaging for investors. Traditional charts and graphs are being replaced or enhanced with creative approaches that not only clarify data but also tell a compelling story. Modern pitch decks are moving beyond bar graphs and pie charts by using more dynamic visuals, such as infographics, heatmaps, and interactive dashboards. These methods can transform dry numbers into captivating narratives that resonate with investors on a deeper level. For instance, using icon-based visualizations to represent metrics or employing sleek timelines to showcase growth can add context and clarity. By turning data into a visual experience, founders can ensure that their key points are easily digestible while leaving a lasting impression.
Learn more about how Visible helps with visualizing your data
8. Motion Graphics
Motion graphics are transforming static pitch decks into dynamic storytelling tools by adding movement and life to presentations. These animations can range from subtle transitions between slides to more elaborate visual effects, helping to illustrate concepts and emphasize key points. Motion graphics can guide the viewer’s attention by animating the flow of information in a logical sequence, making it easier to follow along and grasp the narrative. By adding elements like moving charts, animated icons, or slide transitions that mirror your spoken pitch, motion graphics can make your presentation feel more polished and professional. When used thoughtfully, they enhance storytelling by creating a rhythm and flow that keeps the audience engaged from start to finish.
9. Minimalism
Minimalist design is a powerful trend in pitch decks, known for its ability to convey clarity and professionalism. By stripping away unnecessary details and focusing on the essentials, minimalism ensures that your core message shines through without distraction. This clean, uncluttered approach uses ample white space, simple color palettes, and concise text, making it easier for investors to absorb critical information quickly. With fewer visual elements competing for attention, minimalist slides feel organized and refined, projecting a sense of confidence and expertise. This design style also emphasizes the importance of precision, encouraging founders to present only the most relevant data and insights, keeping the audience laser-focused on the value of the business.
10. Interactive Elements
Incorporating interactive elements into your pitch deck can significantly boost engagement, offering a more dynamic and personalized presentation experience. Interactive features such as clickable charts, embedded polls, or live demos allow investors to explore key information at their own pace, making the presentation more participatory. By enabling viewers to interact with your deck, you create a sense of involvement and can cater to individual interests or questions in real time. For instance, a clickable product demo or an interactive financial model lets investors dive deeper into the aspects that matter most to them. This trend elevates the traditional, passive viewing experience and helps to create a more memorable and engaging interaction with your pitch.
11. Custom Fonts
Custom fonts are becoming a popular trend in pitch deck design because they offer startups a unique way to showcase their brand identity. A custom font can help set your presentation apart from the generic typefaces that investors see daily, giving your pitch a distinctive look and feel. By designing a font that aligns with your brand’s personality- whether it’s modern and sleek or bold and disruptive- you can communicate subtle messages about your business’s values and vision. Using a custom font throughout your pitch deck also ensures consistency across all your materials, reinforcing brand recognition. For founders looking to make a lasting impression, creating a custom font adds a layer of professionalism and originality that reflects well on your business.
Strengthen Your Investor Relationships with Visible
Incorporating these 11 design trends into your startup’s pitch deck can make a lasting impression on investors. They will help your presentation stand out and effectively communicate your vision. From bold typography and engaging animations to minimalist designs and interactive elements, these trends will elevate your pitch deck in 2024.
To strengthen your investor relationships further, consider using Visible to manage your investor updates, track performance, and share pitch decks effortlessly. Give it a free try for 14 days here.
Related resource: 23 Pitch Deck Examples
Related resource: Our Guide to Building a Seed Round Pitch Deck: Tips & Templates
founders
Fundraising
8 Startup Valuation Techniques and Factors to Consider
Understanding the value of your startup is critical, whether you're securing funding, forming partnerships, or planning an exit. Startup valuation is a complex process; getting it right can make all the difference in your journey. In this article, we’ll explore eight essential valuation techniques and the key factors influencing investors' assessment of your startup’s worth. By using the proper methods and focusing on the right metrics, you can maximize your chances of success. Let’s dive into what every founder needs to know about valuing their startup.
Related resource: 409a Valuation: Everything a Founder Needs to Know
What Is a Startup Valuation?
A startup valuation is the process of determining the monetary worth of a startup at a given point in time. It’s essential for startups at every stage of growth, especially when raising capital, attracting partners, or planning an exit. Valuation takes into account multiple factors, including the startup’s market potential, product development, team, revenue, and growth projections. For investors, the valuation reflects the perceived risk and potential return on investment. Ultimately, a well-calculated valuation can open doors to funding, partnerships, and strategic opportunities that help a startup thrive.
The Importance of Startup Valuation
A proper startup valuation is more than just a number- it’s a critical tool that impacts key decisions for both founders and investors. Accurately valuing your startup allows you to secure the right level of funding, ensuring you give up an appropriate amount of equity for the capital you receive. Investors rely on valuations to gauge the risk and potential reward of backing your business. Additionally, a well-supported valuation can help you attract strategic partners and set the stage for future exit opportunities, such as mergers, acquisitions, or IPOs. A precise valuation is essential for setting your startup on a course for long-term success.
Related resource: Discounted Cash Flow (DCF) Analysis: The Purpose, Formula, and How it Works
8 Valuation Techniques for Startups to Know
Valuing a startup isn’t a one-size-fits-all process. Different methods take into account various factors, such as the stage of the company, revenue, market conditions, and potential for growth. By understanding the key valuation techniques, founders can better navigate conversations with investors and ensure they are presenting their startup in the most favorable light. Below are eight essential valuation techniques every startup founder should know to determine the true value of their business.
1. Berkus Approach
The Berkus Approach is a simplified method that assigns value to a startup based on its progress in key areas like product development, market size, and management team. It’s particularly useful for early-stage startups without revenue, as it values the business based on qualitative factors rather than financial data.
2. Comparable Market Approach
The Comparable Market Approach evaluates a startup’s value by comparing it to similar companies that have been recently valued or sold. This method is effective when there are enough comparable businesses in the same industry or market, making it easier to estimate a reasonable valuation based on market trends.
3. Discounted Cash Flow (DCF) Method
The DCF method values a startup based on its projected future cash flows, adjusted for the time value of money. By forecasting future revenue and then discounting it back to its present value, investors can estimate the long-term financial potential of a startup, making this method ideal for businesses with predictable cash flow.
4. Cost-to-Duplicate Approach
This method calculates the startup’s value based on how much it would cost to replicate its assets from scratch, including intellectual property, infrastructure, and other resources. It’s commonly used for startups with valuable technology or physical assets, but it often overlooks the potential market or future growth.
5. Risk Factor Summation Method
The Risk Factor Summation method adjusts a base valuation by considering various risk factors, such as management risk, market competition, or political instability. The final valuation is adjusted up or down depending on the degree of risk involved, making this approach useful for investors assessing high-risk ventures.
6. First Chicago Method
This hybrid method combines both optimistic and pessimistic scenarios to provide a range of possible valuations for a startup. Investors use this technique to consider the best, worst, and most likely financial outcomes for a business, offering a more comprehensive picture of the startup’s potential.
7. Venture Capital Method
The Venture Capital Method is used by investors to calculate their potential return on investment (ROI). It focuses on estimating the future exit value of the company and working backward to determine how much equity the investor should demand based on the initial investment and desired ROI.
8. Book Value Method
The Book Value Method values a company based on the net asset value recorded on its balance sheet. It’s typically used for more mature businesses, but for startups, it can be useful in industries where assets like intellectual property or inventory hold significant value.
Key Factors That Impact a Startup Valuation
While valuation techniques provide a framework, there are several underlying factors that can significantly influence a startup’s value. Investors evaluate a wide range of elements, from market size and revenue projections to the strength of the founding team and the startup’s product. Understanding these key factors can help you present your business in the best possible light and justify your valuation to potential investors. Let’s take a closer look at the most critical factors that impact a startup’s valuation.
Related resource: What is Pre-Revenue Funding?
Market Size and Opportunity
The size of the target market and the growth potential it represents are crucial factors in a startup’s valuation. Investors want to know that your product or service has a large enough market to scale and generate significant returns. A larger addressable market suggests more room for growth, which can justify a higher valuation. Startups operating in industries with rapid growth, such as AI, climate tech, or fintech, often receive higher valuations due to the potential for market expansion. A compelling market opportunity shows investors that your startup has the potential to capture substantial market share and achieve long-term success.
Revenue and Growth Projections
A startup’s current revenue and its projected growth are critical in determining its valuation, especially for investors seeking a return on their investment. Consistent revenue growth demonstrates that there is demand for your product or service, which reduces perceived risk. Startups with solid revenue streams and clear growth projections are typically seen as safer investments, leading to higher valuations. Investors also consider the scalability of the business model—if a startup can rapidly increase revenue while managing costs, it becomes an attractive proposition. Revenue projections that show a clear path to profitability can further strengthen the startup’s valuation.
Funding Stage
The stage of funding a startup is in—whether seed, Series A, or beyond—has a direct impact on its valuation. Early-stage startups, such as those in the seed or pre-seed stages, typically have lower valuations because they are still proving their business model and may not yet have significant revenue or traction. As startups progress through Series A, B, and later rounds, they usually have more validated business models, larger customer bases, and stronger financials, leading to higher valuations. Investors at later stages have more concrete data to assess, which reduces risk and increases confidence in the startup’s potential, allowing for larger capital infusions and higher valuations.
Traction and Customer Base
Having strong traction or a growing customer base is a powerful indicator of market demand, and it plays a significant role in boosting a startup’s valuation. Investors view traction as proof that your product or service resonates with the market, reducing uncertainty about whether the business can succeed. Metrics such as customer acquisition rates, retention rates, and user engagement show that there is genuine interest in what you offer. A solid customer base signals that your startup has established market credibility, making it a safer bet for investors, and ultimately driving a higher valuation.
Founding Team and Management
A strong, experienced founding team is one of the most critical factors in a startup’s valuation. Investors place significant value on a team’s ability to execute its vision, pivot when necessary, and navigate challenges. A team with a proven track record, industry expertise, and complementary skills can inspire confidence in investors, as they are more likely to lead the startup to success. Moreover, a capable management team can attract top talent, secure partnerships, and foster strategic growth. Startups with experienced leadership often receive higher valuations because they reduce the perceived risk for investors and increase the likelihood of long-term profitability.
Product or Technology
A unique or innovative product, particularly one backed by proprietary technology, can serve as a strong competitive advantage, significantly increasing a startup’s valuation. Investors are keen on startups that offer something difficult for competitors to replicate, as this suggests a sustainable market position. Whether it’s a cutting-edge solution or a patented technology, these assets demonstrate a startup’s potential to disrupt the market and capture a large customer base. Additionally, proprietary technology can create barriers to entry for competitors, further securing the startup’s growth prospects. Startups with standout products or technologies often attract higher valuations because they offer long-term value and scalability.
Profitability and Cash Flow
A startup’s ability to generate profit or maintain healthy cash flow, even at an early stage, is a key factor in determining its valuation. Investors look for startups that demonstrate financial stability and the potential for long-term profitability. Consistent cash flow, even if minimal, signals that the business can sustain itself without relying solely on external funding. It also shows that the startup has an efficient cost structure and a viable path to profitability. Startups with solid cash flow management are viewed as lower-risk investments, which can drive up their valuation. Ultimately, demonstrating the ability to generate profit enhances investor confidence and positions the startup for future growth.
Best Practices to Get Your Startup Valuation Right
Achieving an accurate and compelling valuation requires more than just applying the right techniques. Founders must also take into account a set of best practices to present their startup in the best possible light to investors. From understanding your business model and market to demonstrating traction and using multiple valuation methods, these strategies will help you justify your valuation and secure investor confidence. Let’s explore the best practices every startup should follow when determining its valuation.
Understand Your Business Model and Market
Having a deep understanding of your business model and target market is essential for arriving at an accurate and realistic valuation. Investors want to see that you have a clear grasp of how your business generates revenue, scales, and fits within the broader market landscape. A well-defined business model shows that you can not only make money but also sustain and grow that revenue over time. Similarly, understanding your target market—its size, customer needs, and competitive dynamics—enables you to present a compelling case for how your startup can capture market share. Without a solid understanding of these factors, it becomes difficult to justify a valuation that aligns with your startup's true potential.
Use Multiple Valuation Methods
Relying on just one valuation method can result in a skewed or incomplete picture of your startup’s worth. Each valuation technique emphasizes different aspects of the business, whether it’s market potential, financial projections, or asset value. By using multiple methods, you gain a more comprehensive and balanced view of your startup’s true value. For instance, combining approaches like the Discounted Cash Flow (DCF) method and the Comparable Market Approach allows you to consider both future revenue potential and current market trends. This not only gives you a well-rounded perspective but also provides more credibility when discussing valuation with investors, helping you justify your numbers from multiple angles.
Focus on Traction
Demonstrating solid traction—whether through user growth, customer acquisition, or market demand—is one of the most effective ways to boost your startup’s valuation. Traction provides tangible proof that your product or service resonates with customers and has the potential to scale. Metrics such as increasing sales, growing user numbers, or high retention rates give investors confidence that your startup can succeed in the market. Strong traction not only validates your business model but also reduces perceived risk for investors, making them more likely to assign a higher valuation to your startup. The more evidence you can provide of real market demand, the stronger your position in valuation discussions.
Showcase Your Team
Highlighting the expertise and strength of your founding team is crucial to enhancing investor confidence and improving your startup’s valuation. Investors look for teams with the experience, skills, and vision necessary to lead the company through growth and challenges. A team that has a track record of success, deep industry knowledge, or complementary skills can significantly reduce the risk for investors. Showcasing key members of your team and their achievements can demonstrate that your startup has the leadership in place to execute its business strategy effectively. By emphasizing your team’s strengths, you can build trust with investors and position your startup for a higher valuation.
Forge Strong Investor Connections with Visible
Valuing your startup accurately is essential for attracting the right investors and securing the funding you need to grow. You can confidently navigate the fundraising process by understanding key valuation techniques and the factors that impact your business’s worth. Remember to focus on demonstrating traction, showcasing your team, and using multiple methods to ensure a well-rounded valuation.
To build stronger relationships with investors and streamline your fundraising efforts, Visible offers powerful tools for managing investor updates and tracking your progress. Give it a free try for 14 days here.
founders
Fundraising
Startup Due Diligence: What Every Founder Needs to Prepare For
Raising capital is an exciting milestone for any startup, but it comes with the critical process of due diligence. Investors need to thoroughly evaluate your business before committing to funding, and being well-prepared can make all the difference. In this article, we’ll explore the key areas of focus during startup due diligence, outline the role founders play in this process, and provide actionable steps to ensure you're fully prepared for investor scrutiny. By the end, you’ll know exactly what it takes to navigate due diligence smoothly.
What Is Startup Due Diligence?
Startup due diligence is the thorough investigation and evaluation process investors undertake to assess the viability of a business before committing to funding. This involves reviewing all aspects of the startup, including financial performance, legal standing, operations, and market position. Investors conduct due diligence to confirm that the company is as it appears and to identify any potential risks or liabilities. For founders, this process provides an opportunity to showcase the strength of their business and address any concerns investors may have. A successful due diligence process can lead to a smooth investment deal, while any red flags could delay or derail potential funding.
Related resource: The Investor Due Diligence Checklist: How to Treat New VCs Like Business Partners
What Is the Role of the Founders in the Due Diligence Process?
Founders play a central role in the startup due diligence process, as they are responsible for providing all the necessary information and documentation investors need to evaluate the business. This includes financial statements, legal contracts, intellectual property details, and any other materials that showcase the startup’s operations and future potential. Beyond organizing documents, founders must be prepared to answer investor questions and provide clarification on critical areas like market strategy, competition, and risk management. A founder’s ability to communicate clearly and transparently during due diligence can significantly influence the outcome of the process and establish trust with potential investors.
When Do Investors Carry Out Due Diligence?
Investors typically carry out due diligence after they have expressed serious interest in a startup but before finalizing the investment. This phase occurs once initial conversations, pitch meetings, and negotiations have taken place and both parties have reached a preliminary agreement on the terms of the deal. Due diligence is one of the last steps before a formal investment commitment, allowing investors to verify that the startup is financially sound, legally compliant, and capable of executing its business plan. The process ensures that there are no hidden issues or risks that could affect the investment's success.
Areas of Focus in Startup Due Diligence
Due diligence is a comprehensive process that covers several critical aspects of a startup’s business. Investors want to ensure that they are making a sound investment by analyzing key areas that reflect the company's overall health, sustainability, and potential for growth. Each area of focus, from financial performance to operational efficiency, provides valuable insight into the startup's strengths and weaknesses. By understanding these focal points, founders can better prepare for the scrutiny that comes with the due diligence process and present their business in the best possible light.
Financial Performance
One of the first areas investors focus on during due diligence is a startup’s financial performance. Reviewing financial health is crucial for determining the company’s long-term viability. Investors will carefully assess revenue growth, expenses, cash flow, and profitability to understand the startup’s financial stability and scalability. Key documents such as profit and loss statements, balance sheets, and cash flow statements provide a snapshot of the business’s current performance and its potential to generate sustainable returns. Founders must be prepared to explain any fluctuations or challenges in their financials and show how they plan to achieve profitability or maintain healthy financial growth.
Legal Structure and Compliance
Investors pay close attention to a startup’s legal structure and compliance during due diligence, as any legal issues could pose significant risks to the investment. This involves examining the company’s incorporation documents, contracts with employees, suppliers, and partners, and any intellectual property (IP) like patents, trademarks, or copyrights. Ensuring the startup’s regulatory compliance, including licenses and permits, is also crucial, especially in highly regulated industries. A clear and sound legal foundation gives investors confidence that the business can operate without facing legal disputes or disruptions and that its intellectual property is protected from competitors.
Market and Competition
Assessing the market size, competition, and industry trends is a key part of the due diligence process, as it helps investors gauge a startup’s growth potential and strategic positioning. Investors will look at the overall size of the target market to determine whether there is enough demand to support future expansion. They’ll also evaluate the competitive landscape, identifying direct and indirect competitors and how the startup differentiates itself. Additionally, industry trends and shifts provide insight into the startup’s ability to adapt and thrive in a changing market. A clear understanding of market dynamics enables investors to assess whether the startup is well-positioned for long-term success.
Operational Due Diligence
Operational due diligence is essential for evaluating the internal workings of a startup and ensuring that the business is set up for smooth and scalable growth. Investors will review the startup’s core processes, including day-to-day operations, supply chain management, and overall efficiency. The goal is to assess whether the startup has the necessary infrastructure in place to support growth without significant operational disruptions. A well-organized operation shows investors that the startup can scale effectively, handle increasing demand, and continue delivering on its promises without sacrificing quality or performance. Founders should be prepared to demonstrate the strength and adaptability of their operational systems during due diligence.
Technical Due Diligence
Technical due diligence is a critical part of the process for startups with a technology-driven product or service. Investors will closely examine the startup’s technology stack, including the software, hardware, and infrastructure that power the product. This review helps assess the viability and scalability of the technology. Investors also evaluate security measures to ensure that sensitive data is protected and the product is resilient to cyber threats. Additionally, future development plans are scrutinized to gauge how well the startup can innovate and stay competitive in its industry. Demonstrating a strong, secure, and scalable technical foundation gives investors confidence in the startup’s ability to deliver long-term value.
Steps for Preparing Your Startup for Due Diligence
Preparing for due diligence requires founders to be proactive and organized. Investors will request access to a wide range of documents and information to assess every aspect of the business. To ensure a smooth process, founders must compile all relevant materials, anticipate potential questions, and demonstrate their startup’s readiness for growth. The following steps outline how to efficiently prepare for due diligence, helping you present your business in the best possible light while minimizing delays or issues that could arise during the review.
1. Organize Your Documentation with a Data Room
A secure data room is essential for streamlining the due diligence process. A data room is a centralized, virtual space where you can store and organize all key documents needed for investor review, including financial statements, legal agreements, intellectual property records, and more. By having a well-structured data room, you can easily grant investors access to critical information without delays. It also ensures that sensitive data is protected and only shared with authorized parties. Visible offers data rooms tailored to founders, allowing you to securely manage and share key documents with investors. A clear and organized data room saves time and demonstrates professionalism and preparedness, giving investors confidence in your ability to manage the business.
Related resource: What to Include in a Data Room for Investors: Essential Guide for Startups
Related resource: Manage Every Part of Your Fundraising Funnel with Visible Data Rooms
2. Conduct a Legal Review
A thorough legal review is critical for ensuring that all contracts, agreements, and compliance documentation are in order before investors begin their due diligence. This includes reviewing employment contracts, supplier agreements, partnership deals, and intellectual property ownership documents. Any inconsistencies or legal issues could raise red flags for investors, delaying or even jeopardizing the deal. It's also essential to confirm that the startup is in compliance with relevant laws and regulations, especially in regulated industries. By addressing any legal gaps or discrepancies early on, founders can present a legally sound business that builds investor trust and avoids potential complications down the road.
3. Prepare Your Financial Projections
Providing clear and well-supported financial projections is crucial for demonstrating your startup’s growth potential and financial health during due diligence. Investors rely on these projections to understand how your business plans to scale and generate returns over time. Your financial forecasts should cover key areas such as projected revenue, expenses, profit margins, and cash flow for the next several years. Additionally, it’s important to base your projections on realistic assumptions, backed by market data and historical performance, to build investor confidence. Accurate and transparent financial projections show that you have a solid plan for achieving profitability and are prepared to manage the financial challenges of scaling a business.
4. Prepare Your Cap Table
Having an accurate and up-to-date cap table is essential for giving investors a clear understanding of your startup’s equity structure, ownership, and shares. The cap table outlines who owns what percentage of the company, detailing all founders, investors, and employees with equity stakes, as well as any convertible notes or options. A well-organized cap table helps investors assess their potential ownership stake and understand how future rounds of funding may impact dilution. Transparency in your cap table also demonstrates that you have a solid grasp of your company’s financial structure, which is critical for building investor trust and ensuring a smooth due diligence process.
Related resource: What is a Cap Table & Why is it Important for Your Startup
5. Secure Your Intellectual Property (IP)
Securing and verifying ownership of all intellectual property (IP) is crucial before entering due diligence. Investors will want to see that your startup has legally protected its valuable assets, including patents, trademarks, copyrights, and any proprietary technology or processes. This verification ensures that your business owns the rights to its innovations and is not at risk of legal disputes or infringement claims. If IP ownership is unclear or unprotected, it could significantly reduce the value of the business or deter investment altogether. By securing your IP early, you protect your competitive advantage and demonstrate to investors that your startup has safeguarded its core assets.
6. Document Your Business Processes
Providing clear documentation of your startup’s internal processes and workflows is essential for demonstrating operational efficiency and scalability during due diligence. Investors will want to see that your business has well-established systems in place to manage daily operations, production, customer service, and supply chain management. Documenting these processes shows that your startup can operate efficiently today and is ready to scale smoothly as demand grows. A well-organized business with clear workflows indicates that your startup is prepared to handle increased operations without disruptions, giving investors confidence in your ability to meet future growth targets.
7. Prepare Leadership and Team Information
Showcasing your leadership team's experience, qualifications, and roles is critical in building investor confidence during due diligence. Investors want to know that the team driving the startup has the expertise and capability to execute the business plan and navigate the challenges of scaling. Highlight the background of key team members, including their relevant industry experience, track record of success, and any unique skills that set them apart. Demonstrating that you have a strong, well-rounded leadership team reassures investors that your startup has the talent needed to grow and achieve long-term success.
8. Anticipate Investor Questions
Preparing for common investor questions is a key part of demonstrating transparency and readiness during due diligence. Investors will likely ask about your business strategy, growth projections, competitive landscape, and potential risks. Founders should be prepared to explain how they plan to achieve market penetration, handle competition, and manage challenges like regulatory hurdles or scaling operations. By anticipating these questions and providing thoughtful, data-backed responses, you show investors that you’ve thoroughly considered all aspects of the business and are ready to tackle future obstacles. This level of preparation can help foster trust and accelerate the due diligence process.
Related resource: Deal Flow: Understanding the Process in Venture Capital
Prepare for Startup Due Diligence Best with Visible
Preparing for due diligence can be a complex process, but by organizing your documentation, securing your legal and financial information, and anticipating investor questions, you can position your startup for success. Investors want to see a well-prepared, transparent business with a solid plan for growth and scalability.
Visible can help simplify the process by providing data rooms, financial tracking, and investor relations management, ensuring you’re ready when due diligence begins. Give it a free try for 14 days here.
founders
Metrics and data
Service Obtainable Market: What It Is and Why It Matters for Your Startup
Understanding your startup's potential for growth is crucial in determining how to allocate resources, set goals, and attract investors. One of the key metrics to evaluate is your Service Obtainable Market (SOM)—the portion of the market your company can realistically capture. In this article, we will break down what SOM is, how it differs from other market metrics like total addressable market (TAM) and Serviceable Available Market (SAM), and why it is essential for building a focused, sustainable strategy. You'll also learn how to calculate your SOM and how it helps refine your projections and increase investor confidence.
Related resource: How to Model Total Addressable Market (Template Included)
What is Service Obtainable Market (SOM)?
The Service Obtainable Market represents the portion of your total addressable market that your startup can realistically capture based on its current resources, capabilities, and competitive positioning. It is a refined market segment that takes into account the realities of your business—such as sales capacity, distribution channels, and brand recognition. While other metrics like TAM and SAM offer a broader view of market potential, SOM gives a grounded estimate of what’s achievable. For startups, this figure is crucial in shaping strategy, defining target customers, and setting realistic revenue expectations.
Factors of Service Obtainable Market
Several factors influence your Service Obtainable Market, helping you determine the most realistic portion of the market you can capture. These include:
Market Size and Reach
The size of the total addressable market (TAM) sets the foundation for calculating Service Obtainable Market. However, your actual reach depends on your geographic footprint, target demographics, and ability to effectively penetrate the market.
Related resource: Bottom-Up Market Sizing: What It Is and How to Do It
Product
The uniqueness and quality of your product will impact how much of the market you can capture. A product that meets specific needs or offers a strong value proposition can help you stand out and gain a larger share of the market.
Competition
The level of competition in your industry will directly affect your SOM. A highly competitive market may limit your share, while a niche market or one with fewer competitors can increase your potential capture.
Historical Performance and Research
Your past sales data and market research are valuable in estimating Service Obtainable Market. Trends in customer acquisition, product adoption, and overall performance provide a realistic basis for forecasting future growth within the obtainable market.
Understanding SOM, SAM, and TAM
To grasp the full scope of your startup’s market opportunity, it’s essential to understand three key metrics: TAM, SAM, and SOM. While TAM represents the total market demand for your product or service, SAM narrows it down to the portion you can serve based on your business model. SOM refines this even further, focusing on the market you can realistically capture given your resources and competitive positioning. Let’s explore these differences in more detail.
Related resource: Total Addressable Market: Lessons from Uber’s Initial Estimates
Service Available Market (SAM) vs. Service Obtainable Market (SOM)
Service Available Market (SAM) refers to the portion of the total market that your business can serve, based on factors such as your product offering, geographic reach, and target audience. It reflects the customers you could potentially access with your current business model.
On the other hand, Service Obtainable Market is a smaller, more realistic portion of SAM. It takes into account not only your ability to serve the market but also your competitive landscape, internal resources, and operational constraints. In essence, SOM is the market share you can realistically expect to capture in the short term.
Total Addressable Market (TAM)
Total Addressable Market (TAM) is the broadest metric of the three. It represents the total market demand for your product or service, assuming no competition or barriers to entry. TAM reflects the largest possible revenue opportunity available, but it often includes customers or segments beyond your reach or interest.
While TAM gives you a big-picture view of the entire market, SAM and SOM help you zoom in on the more actionable portions, with SOM being the most precise estimate of what your startup can capture in the near term.
Related resources:
Total Addressable Market vs Serviceable Addressable Market
What Is TAM and How Can You Expand It To Grow Your Business?
How to Calculate Your Service Obtainable Market
Calculating your Service Obtainable Market (SOM) is essential for setting realistic business goals and crafting an effective market strategy. While TAM and SAM provide a broader view of potential opportunities, SOM focuses on what your startup can actually capture in the market based on your resources and competitive strengths. To calculate Service Obtainable Market, you'll need to break down your market step by step, narrowing from the largest possible market to the portion you can truly serve. Let’s walk through the process of calculating SOM and how each step contributes to a precise understanding of your market opportunity.
Step 1: Define Your Total Addressable Market (TAM)
The first step in calculating your Service Obtainable Market is to define your Total Addressable Market the largest possible market for your product or service. To identify your TAM, you’ll need to evaluate the full demand for your offering across all potential customer segments, without considering competition or operational limitations.
Start by answering these key questions:
Who are your potential customers? Identify all possible user groups or industries that would benefit from your product.
What is the overall market size? Research the total number of customers or the revenue potential in your market globally or within your target regions.
How big is the need or demand for your product? Assess the pain points your product addresses and the number of customers affected by these challenges.
By combining industry data, market reports, and demographic insights, you can estimate the maximum revenue potential of your product or service in its ideal conditions—this is your TAM.
Step 2: Narrow to Your Serviceable Available Market (SAM)
Once you’ve defined your Total Addressable Market (TAM), the next step is to narrow it down to your Serviceable Available Market (SAM)—the portion of the market that you can realistically serve, based on your business model, product offering, and geographic reach.
To assess your SAM, consider the following:
Business Model: Which customers can you effectively serve with your current sales, distribution, and operational models? Some markets might be out of reach due to logistical or operational constraints.
Product Fit: Focus on the customer segments where your product or service directly addresses specific needs or problems. Not every customer in the TAM will find your solution relevant.
Geographic Limitations: Evaluate the regions where your business operates or where you plan to expand. Factors like local demand, regulations, and shipping constraints can limit which parts of the TAM are accessible to you.
By refining your TAM with these considerations, your SAM represents the subset of customers that you have the capability and infrastructure to reach and serve.
Step 3: Identify Your Competitive Edge
To determine your Service Obtainable Market (SOM), you need to identify your competitive edge—the unique advantages that set your startup apart from others in the market. This step involves analyzing your differentiators, understanding market barriers, and assessing your competition to pinpoint your realistic market share.
Consider the following:
Differentiators: What makes your product or service stand out? This could be superior technology, pricing, customer experience, or unique features that competitors lack. Your ability to leverage these differentiators will help capture a larger portion of the market.
Market Barriers: Identify any barriers to entry, such as high development costs, regulatory requirements, or brand loyalty to existing competitors. These barriers can limit your market access and must be factored into your SOM calculation.
Competitors: Analyze your competitors' market share, customer loyalty, and positioning. Understanding their strengths and weaknesses will help you identify untapped opportunities where your startup can outperform or gain a foothold.
By combining these insights, you’ll be able to estimate the portion of the SAM that you can realistically capture, giving you a clear picture of your Service Obtainable Market.
Step 4: Calculate SOM
Now that you’ve identified your competitive edge and assessed the market, it’s time to calculate your Service Obtainable Market. To do this, you'll need to apply real-world factors such as sales capacity, market penetration, and your ability to reach customers within your Serviceable Available Market.
A simple formula to calculate Service Obtainable Market is:
SOM = SAM × Market Penetration Rate
For example, if your SAM is valued at $10 million and your startup's estimated market penetration rate is 10%, your SOM would be:
SOM = $10,000,000 × 0.10 = $1,000,000
This means that, based on your current resources and competitive position, you can realistically expect to capture $1 million of the $10 million available market. The market penetration rate can be influenced by factors like your sales team’s capacity, marketing effectiveness, and brand awareness.
By using this formula, you can calculate a more grounded estimate of your startup’s revenue potential within the Serviceable Available Market (SAM).
Why Service Obtainable Market Matters for Startups
Understanding your Service Obtainable Market is more than just a calculation—it’s a key element in shaping your startup’s strategy and ensuring sustainable growth. For startups, having a clear view of SOM allows for smarter decision-making, from resource allocation to revenue forecasting. By focusing on a realistic portion of the market, founders can set achievable goals, secure investor confidence, and avoid overextending their business too early. In the following sections, we’ll explore the specific ways SOM impacts your startup’s strategy, projections, and long-term success.
Focused Strategy
Knowing your Service Obtainable Market helps your startup stay focused by clearly defining the portion of the market you can realistically target. Instead of spreading your resources too thin trying to capture an overly broad audience, Service Obtainable Market allows you to concentrate on the most relevant customer segments. This focus ensures that your marketing, sales, and operational efforts are directed toward the right customer base—those who are most likely to convert. By avoiding the trap of overextending into markets where your resources, product fit, or brand presence are lacking, you can optimize your efforts and build sustainable growth more effectively.
Realistic Revenue Projections
Your Service Obtainable Market provides a solid foundation for creating accurate sales forecasts and revenue models. By focusing on the market you can realistically capture, SOM allows you to project revenues based on achievable goals rather than overly optimistic estimates. This level of precision is critical when presenting your business to potential investors, as they expect realistic financial models backed by data. Accurate revenue projections help ensure that your growth planning is sustainable and aligned with your current resources, making it easier to set clear milestones and secure the funding you need to scale.
Resource Allocation
Identifying your Service Obtainable Market enables your startup to allocate resources more efficiently across marketing, sales, and operations. By understanding exactly which portion of the market you can realistically capture, you can focus your efforts on the most promising opportunities. This targeted approach ensures that marketing budgets are spent on channels with the highest conversion potential, sales teams can prioritize leads most likely to close, and operational resources are scaled according to actual demand. Instead of spreading your team and resources too thin, SOM helps you streamline efforts to maximize impact and achieve better results with fewer resources.
Investor Confidence
Having a clear Service Obtainable Market (SOM) is a strong signal to investors that your startup has a realistic and achievable market strategy. Investors are looking for startups that understand their market deeply and have a plan that balances ambition with practicality. By demonstrating that you’ve calculated your SOM based on data-driven insights and realistic assumptions, you show investors that your growth projections are grounded in reality. This boosts their confidence in your ability to execute your business plan, allocate resources wisely, and achieve sustainable growth, making it easier to secure the funding needed to scale your operations.
Connect with Investors with Visible
Understanding your Service Obtainable Market is essential for shaping your startup’s strategy, creating realistic revenue projections, and efficiently allocating resources. By focusing on the market you can realistically capture, you position your business for sustainable growth and build investor confidence.
As you refine your market approach and seek funding, having the right tools to engage with investors is critical. Visible can help you manage your investor relationships and provide the insights you need to stay on top of your fundraising efforts.
Track key metrics, send investor Updates, and track the status of your next fundraise with Visible. Give it a free try for 14 days here.
founders
Fundraising
10+ Foodtech Venture Capital Firms Investing in 2024
When starting a venture capital for a fundraise, it is important to stay focused on the right investors for your business. This means sticking to investors that fund companies in your industry, stage, geography, etc.
In order to best help founders find the right investors for their business, we’ve laid out 10 investors that are funding FoodTech startups below:
Quick Overview of the Food Tech Industry
As written by the team at Bread and Butter Ventures, “Food technology includes tech-enabled companies operating anywhere in the food value chain. From on farm to supply chain and manufacturing to restaurants and grocery. “Tech” can be software, hardware, bio sciences, or any combination of the three.”
Food and agriculture is a major aspects of the economy. Many venture capitalists and entrepreneurs find that there are inefficiencies in the food and agriculture sector and can be improved by funding innovative companies.
Related resource: Top 12 Industry Events and Trade Shows for Food and Beverage Startups (2024 - 2025)
Challenges in Foodtech
As put by the team at Blue Horizon in their post, The US food industry is facing a labor crisis and needs technology solutions to help solve it, “The food industry is strained from multiple forces, including heightened expectations from both customers and employees (e.g., wage increases, gig economy) as well as macro-economic pressures (e.g., inflation, supply chain constraints).”
Related Resource: The 16 Best Startup Newsletters
Related Resource: VCs Investing In Food & Bev Startups
1) Better Food Ventures
Location: Menlo Park, CA
Funding stage: Early-stage, seed stage
According to the team at Better Food Ventures, “Our investments in food and agriculture technologies span the value chain — from seed, soil, supply chain, store, supper to stomach— to support the digitization of today’s food system, and form the building blocks necessary to meet our food supply needs in 2050.”
According to their Visible Connect Profile, the team at Better Food Ventures typically writes checks anywhere between $250k and $10M. Some of Better Food Ventures most popular investments include:
Milk Moovement
Love with Food
Byte
2) 1st Course Capital
Location: Redwood City, CA
Funding stage: Early-stage, pre-seed, seed
As the team at 1st Course Capital puts it, “1st Course Capital is an early stage venture capital firm investing in innovative business models and technologies changing how we grow, produce, and distribute food.”
Some of 1st Course Capital’s most popular investments include:
BlueCart
Farmshelf
Gooder Foods
3) Nucleus Capital
Location: Berlin
Funding stage: Pre-seed and seed stage
As put on their website, “Nucleus Capital is a new venture capital firm supporting purpose-driven founders.
We believe that entrepreneurial innovation is necessary to tackle global threats to planetary health.
We deeply respect the entrepreneurial process and partner with founders at the nucleus of their journey, investing at the Pre-Seed & Seed stage.
We are most excited by mission-driven teams with relentless ambition, deep domain expertise and creative ideas.”
Nucleus is focused on pre-seed and seed stage investments. Some of Nucleus Capital’s most popular investments include:
Planet A Foods
Juicy Marbles
Yuri
4) Tet Ventures
Location: Berlin, Germany
Funding stage: Early-stage
As put on their Visible Connect Profile, “We are one of the most active global foodtech VCs, investing in teams and technology building a better food system.”
Tet Ventures typically writes check anywhere between $50k and $250k. They look to fund companies anywhere in the world at the earliest stages.
Some of Tet Ventures most popular investments include:
Farmstead
Maven
Gather Made
5) Bread and Butter Ventures
Location: Minneapolis, MN
Funding stage: Seed stage
As put by the team at Bread and Butter Venturese, “Bread and Butter Ventures is an early stage venture capital firm based in Minnesota, the Bread and Butter State, investing globally while leveraging our state and region’s unparalleled access to strong corporate connections, commercial opportunities, and industry expertise for the benefit of our founders.”
You can learn more about Bread and Butter in our podcast with Brett Brohl below:
The team at Bread and Butter typically writes checks anywhere between $100k and $400k. They traditionally focus on Food Tech, Health Tech, and Enterprise SaaS companies.
Some of Bread and Butter Venture’s most popular investments include:
Alchemy
Dispatch Goods
Omnia Fishing
6) FoodHack
Location: Lausanne, Switzerland
Funding stage: Pre-seed to Series A
As written by the team at FoodHack, “Where Food & FoodTech professionals come to get the inside scoop on industry news and meet partners, friends, mentors, investors – and everything in between.
From our weekly newsletter, to our ambassador run Meetups and our annual FoodHack Summit – our goal at FoodHack is to make it easier for purpose driven food founders to access the funding, network and knowledge they need to successfully launch and scale their business.”
7) Bluestein Ventures
Location: Chicago, IL
Related Resource: Chicago’s Best Venture Capital Firms: A List of the Top 10 Firm
Funding stage: Early-stage — typically between seed and series A
As put by the team at Bluestein Ventures, “We look for that magic combination of strategic vision + flawless execution. We’re inspired by visionary entrepreneurs that challenge the status quo – purpose-driven teams that are hungry to change the paradigm – and translate that into action. Entrepreneurs are our focus. As experienced investors, we know the journey isn’t easy. That’s why we’re here to partner with you to help you succeed.”
Check out some of Bluestein’s most popular investments below:
Cultured Decadence
Meati
New Culture
8) AgFunder
Location: San Francisco, CA
Funding stage: Seed to Series B
As put by their team, “AgFunder is an online Venture Capital Platform based in Silicon Valley. AgFunder invests in exceptional and bold entrepreneurs who are aiming to build the next generation of great agriculture and food technology companies.”
The team at AgFunder has written checks anywhere between $50k and $900k in a round. They invest in companies across the globe. Some of AgFunder’s most popular investments include:
Atomo Coffee
Alpha Foods
FieldIn
9) S2G Ventures
Location: Chicago, Boston, and San Francisco
Funding stage: Anywhere from seed to growth stage
As written by the team at S2G, “Our strategy reflects a growing appetite for investment that combines financial returns with positive long-term social and environmental effects. S2G has identified tough tech sectors that are ripe for change and is building a multi-stage portfolio of seed, venture, and growth stage investments and flexible solutions including debt and infrastructure capital.”
The team at S2G will invest across many stages and are focused on companies that benefit the environment and society. Check out a few of S2G Venture’s most popular investments below:
AppHarvest
Ripple
Beyond Meat
10) Blue Horizon
Location: Zurich, Switzerland
Funding stage: Seed to Series B
As written by the team at Blue Horizon, “Blue Horizon is accelerating the transition to a Sustainable Food System that delivers outstanding returns for investors and the planet. The company is a global pioneer of the Future of Food. As a pure play impact investor, Blue Horizon has shaped the growth of the alternative protein and food tech market. The company invests at the intersection of biology, agriculture and technology with the aim to transform the global food industry.”
Check out some of the most popular Blue Horizon investments below:
Eat Just
Impossible Foods
Planted
11) Synthesis Capital
Location: London, England
Funding Stage: Series A, Series B, Series C
Synthesis Capital invests in game-changing founders, whose companies are transforming the food system through the synthesis of food technology and modern biotechnology.
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Related Resource: A Quick Overview on VC Fund Structure
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Top 15 Climate Tech Startups Revolutionizing Sustainability in 2024
In an era where the effects of climate change are being felt more acutely every day, the need for bold, innovative solutions has never been greater. Climate tech startups are at the forefront of this revolution, creating technologies that address some of the world’s most pressing environmental challenges. These leading climate startups are not only pushing the boundaries of sustainable innovation but also reshaping industries by offering practical, scalable solutions to reduce carbon footprints and foster environmental resilience.
From carbon capture technology to renewable energy storage and sustainable agriculture, these companies are addressing critical issues head-on. This article highlights 15 innovative climate tech companies that are making significant strides in combating climate change. Whether they are developing groundbreaking technologies for cleaner energy or devising new ways to sequester carbon, these startups represent the future of green innovation.
Related Resource: Leveraging Innovation and Sustainability: A Guide for Clean Tech and Climate Tech Founders
Emerging Climate Tech Trends Impacting Startups in 2024
As climate tech evolves, several trends are directly shaping the trajectory of climate tech companies and their ability to address environmental challenges. These trends reflect not just advancements in technology but also the shifting demands within the industry, influencing how startups scale, secure funding, and innovate. Below are the key trends influencing climate tech companies in 2024.
Carbon Capture and Sequestration Technologies
Carbon capture and sequestration (CCS) is rapidly becoming a core focus for many climate tech startups, particularly those aiming to reduce industrial carbon footprints. Startups working on direct air capture (DAC) technologies are gaining significant traction as industries and governments seek scalable solutions to meet global emissions reduction goals. As funding for CCS increases, companies within this space are seeing more opportunities for partnerships with heavy industries like oil and gas, cement, and steel. However, the cost of these technologies remains a challenge, pushing climate tech companies to innovate in ways that make CCS more affordable and efficient for widespread adoption.
Long-Duration Energy Storage
The transition to renewable energy is pushing climate tech companies to develop long-duration energy storage solutions that go beyond traditional battery technology. Energy storage startups are now at the forefront of enabling a renewable energy grid that can handle fluctuations in solar and wind energy. This trend is driving significant investment into companies creating vanadium redox flow batteries, iron-air batteries, and other next-gen storage solutions. For these startups, the ability to secure contracts with energy utilities and prove the scalability of their technology will be key to future success. The demand for reliable energy storage is expected to grow exponentially as more countries mandate higher percentages of renewable energy in their grids.
Sustainable Agriculture and Food Tech
Climate tech companies focused on sustainable agriculture are seeing rising interest from both investors and governments as the agriculture sector faces mounting pressure to reduce emissions. Startups developing technologies like vertical farming, precision agriculture, and agroforestry are helping traditional farms and food producers become more resilient to climate risks. For example, companies offering precision agriculture solutions can optimize water usage and reduce chemical inputs, making farming more sustainable. This trend is particularly relevant for climate tech startups targeting regions prone to droughts and extreme weather, as their solutions offer tangible ways to mitigate the effects of climate change on food production.
AI-Driven Environmental Insights
The integration of AI into climate tech is transforming how companies gather and leverage environmental data, offering them a competitive edge in developing smarter, more targeted solutions. Startups providing AI-driven platforms that analyze climate risks, predict environmental shifts, and optimize resource use are seeing increased demand from sectors like renewable energy, real estate, and agriculture. For climate tech companies, this trend offers a unique opportunity to position themselves as data-driven innovators, capable of helping businesses and governments adapt to changing environmental conditions. Companies specializing in geospatial AI are especially well-positioned to attract funding as they provide essential insights for industries looking to mitigate environmental risks.
Key Challenges Facing Climate Tech Startups
While the climate tech sector is thriving, climate tech startups face several significant challenges that can hinder growth and scalability. From securing adequate funding to navigating complex regulatory landscapes, these barriers are unique to companies striving to create sustainable solutions. Below are some of the climate startup challenges that founders need to consider as they work toward building impactful, scalable businesses.
High Research and Development (R&D) Costs
One of the primary barriers for climate tech companies is the high cost of research and development. Unlike many software startups that can iterate quickly and cost-effectively, climate tech solutions often require significant investment in hardware, materials, and testing facilities. Whether developing new carbon capture technologies or refining energy storage systems, climate startups need extensive capital to move from concept to commercialization. This financial hurdle can slow down progress, particularly for startups without access to substantial early-stage funding or grant support.
Navigating Regulatory Challenges
Regulatory hurdles are another critical challenge for climate tech startups. Governments and regulatory bodies are increasingly enacting policies aimed at reducing carbon emissions, but the path to compliance can be complex. Startups must navigate a patchwork of regulations, often varying by region and industry. For example, renewable energy companies may face permitting delays, while those in carbon capture or waste management might contend with strict environmental standards. This regulatory uncertainty can deter investors and slow down the deployment of new technologies, making it a significant barrier to success.
Scaling Across Sectors
Climate tech solutions often require cross-sector partnerships to scale effectively. A company developing energy storage technology, for example, may need to partner with both energy utilities and hardware manufacturers to bring its product to market. Likewise, startups focusing on sustainable agriculture might need collaborations with large-scale farming operations or governments to deploy their technologies at scale. Establishing these partnerships can be difficult for early-stage startups, especially those without a proven track record or established industry relationships. The need for coordination across sectors and industries is a major challenge that climate startups must overcome to ensure long-term success.
Related resource: Top 10 VCs Fueling Innovation in Transportation
Securing Sufficient Funding
While investor interest in climate tech is growing, many climate startups still struggle to secure sufficient funding, particularly during the early stages. Venture capital firms often look for quick returns, but many climate tech solutions require long timelines before reaching commercialization. Startups in this space may also face competition from other sectors for investor attention. The need to demonstrate both environmental and financial impact adds another layer of complexity when raising capital. As a result, climate tech startups often need to explore alternative funding sources such as government grants, impact investors, and green bonds to bridge the gap.
15 Climate Tech Startups to Watch in 2024
1. CarbonCapture
CarbonCapture stands out in the climate tech sector with its innovative approach to direct air capture (DAC) technology. The company's systems, which use molecular sieves and renewable energy sources, are designed for adaptability. These machines not only remove CO2 from the atmosphere but also capture clean water distilled from the air, a dual functionality that enhances both environmental and practical value. The potential impact of this technology is substantial, offering a scalable and efficient solution to reduce atmospheric CO2 levels. This approach is particularly promising in the fight against global warming and climate change.
Year founded: 2019
Location: Pasadena, California
Funding amount/type: The company has raised a total of $35 million over three funding rounds.
Funding series: The most recent, a Series A round completed in September 2023.
Major investors: Climate Pledge Fund, Ethos Family Office, Rio Tinto, Idealab Studio, Idealab X, and Marc Benioff’s TIME Ventures.
2. Astraea
Astraea is a significant player in the climate tech sector, particularly with its innovative use of data analytics for environmental insights. The company has developed an AI platform for geospatial data, which includes products like EarthAI Site and EarthAI Enterprise. These tools offer vital insights using imagery, analytics, and dashboards, catering to a variety of industries such as real estate, renewable energy, conservation finance, and agriculture. Astraea's EarthAI platform is particularly notable for its ability to aid in understanding climate patterns and their impacts, leveraging AI and geospatial data to provide actionable insights.
Year Founded: 2016
Location: Charlottesville, Virginia, USA
Funding Amount/Type: Astraea has raised a total of $16.5 million over four funding rounds. In a recent development, the company raised $6.5 million in Series A funding.
Funding Series: The latest funding, completed on July 21, 2022, was a Series A round.
Major Investors: The Series A funding was co-led by Aligned Climate Capital and Carbon Drawdown Collective, with other participants including CAV Angels, Tydall Investment Partners, and the University of Virginia Seed Fund.
Astraea's role in climate tech is particularly exciting due to its innovative use of AI and satellite data to provide critical environmental insights. This approach is essential for addressing complex climate challenges, enabling better decision-making and strategy formulation in various sectors. The support and funding received from notable investors reflect confidence in Astraea's potential to make a meaningful impact in the field of climate technology.
3. CellCube
CellCube, known for its innovative energy storage solutions, is making significant strides in the field of climate tech with its focus on vanadium redox flow batteries (VRFBs). As a leader in sustainable, future-proof, and durable energy storage infrastructure, CellCube has emerged as one of the first and largest developers, manufacturers, and sellers of VRFBs globally. Their modular CellCube batteries are designed to store large electricity capacities efficiently for 4 to 24 hours, meeting the highest safety standards and boasting a lifecycle of 20 to 30 years. This technology is crucial for enabling the storage of energy from intermittent renewable sources like solar and wind, thus facilitating their integration into the energy grid and enhancing the sustainability of energy systems.
CellCube, initially known as Enerox, has evolved over the last ten years from a specialized product developer to a leading provider of comprehensive energy storage solutions. With more than 140 systems installed worldwide, they have established themselves as a key player in the industry.
Year Founded: Not explicitly stated, but with 20 years of research and development, it suggests a founding date around 2002-2003.
Location: Denver, Colorado, USA.
Funding Amount/Type: The company arranged a non-brokered private placement financing for gross proceeds of CDN $10 million.
Major Investors: Bushveld Minerals increased its investment in CellCube to 27.6%, as part of its energy storage business strategy.
CellCube's significance in the climate tech field is highlighted by its role in enhancing renewable energy integration. Their VRFBs provide a reliable and scalable solution for energy storage, addressing one of the most significant challenges in the shift towards renewable energy sources. By enabling more efficient storage and use of renewable energy, CellCube contributes significantly to reducing reliance on fossil fuels and combating climate change. Their progress and the growing investor interest underscore the critical role of energy storage technologies in achieving a sustainable future.
4. Jackery
Jackery, a leader in the field of portable solar power solutions, was founded in 2012 in California, USA, by a former Apple battery engineer. The company is recognized for its innovative approach in developing portable solar power generators, solar panels, and other related products. Jackery's mission is to provide green energy solutions that are accessible to everyone, everywhere, particularly focusing on outdoor and emergency use scenarios. Their products, known for their efficiency and accessibility, cater to the needs of those requiring mobile power sources, whether off-grid or during power outages.
Year Founded: 2012
Location: Fremont, California, USA
Funding information isn’t given for Jackery
Jackery's innovation in portable solar power solutions is particularly exciting for the field of climate tech due to its contribution to sustainable energy accessibility. By providing efficient, portable solar generators and panels, Jackery plays a crucial role in enhancing the adoption of renewable energy sources. This is especially important in remote or disaster-prone areas where traditional power sources are unavailable or unreliable. Jackery's commitment to developing green energy solutions aligns with global efforts to reduce carbon emissions and mitigate the impacts of climate change. Their growth and the success of their products in the market underscore the increasing demand for portable and sustainable energy solutions.
5. CarbonCure
CarbonCure, a pioneer in carbon sequestration within the concrete industry, has garnered significant attention for its innovative approach to reducing carbon footprints. Founded in 2011 by Robert Niven and headquartered in Halifax, Nova Scotia, CarbonCure's technology revolves around the injection of captured carbon dioxide into concrete, where it is permanently stored. This process not only utilizes CO2 but also enhances the strength of the concrete, presenting a dual benefit.
The implications of CarbonCure's technology for the construction industry are profound. As concrete is one of the most widely used materials in construction, its production is also one of the largest sources of CO2 emissions globally. By integrating CarbonCure's technology, the construction industry can significantly reduce its carbon footprint, contributing to the global efforts against climate change. This technology offers a practical and scalable solution for carbon sequestration, aligning with the industry's growing focus on sustainability.
Year Founded: 2011
Location: Halifax, Nova Scotia, Canada
Funding Amount/Type: CarbonCure Technologies has raised a total of $97.36 million over 12 funding rounds, with the latest being a Series F round for $80 million on July 11, 2023.
Major Investors: The company's investors include Sustainable Development Technology Canada, Innovacorp, GreenSoil Investments, Pangaea Ventures, Breakthrough Energy Ventures, Microsoft Climate Innovation Fund, BDC Capital, 2150, Mitsubishi Corporation, Carbon Direct, Taronga Ventures, and Amazon's Climate Pledge Fund.
CarbonCure's technology is particularly exciting in the climate tech field due to its practical application in a widespread and traditionally high-emission industry. The ability to reduce the carbon footprint of concrete production and use while improving the material's quality represents a significant advancement in green construction practices. The company's successful funding rounds and the backing of major investors underscore the industry's recognition of the importance of sustainable solutions like CarbonCure's, indicating a promising future for this technology in global efforts to combat climate change.
6. Form Energy
Form Energy, a Massachusetts-based technology company founded in 2017, is revolutionizing the field of climate tech with its advancements in long-duration energy storage systems. These systems are designed to enable a reliable and fully renewable electric grid year-round, addressing one of the major challenges in the transition to renewable energy. Form Energy's technology is crucial for maintaining grid stability and integrating renewable energy sources, as it allows for the storage and release of energy over extended periods, thus balancing supply and demand even when renewable sources are intermittent.
Year Founded: 2017
Location: Boston, Massachusetts, US
Funding Amount/Type: Form Energy has raised a significant amount of funding, with a $450 million Series E financing round announced in October 2022. This adds to their total funding, which had previously exceeded $350 million, reaching a valuation of $1.2 billion in mid-2021.
Funding Series: The latest funding round was a Series E round.
Major Investors: The Series E round was led by TPG’s global impact investing platform, TPG Rise, and included major investors such as GIC, Canada Pension Plan Investment Board (CPP Investments), ArcelorMittal, Bill Gates’ Breakthrough Energy Ventures, and others.
Form Energy's long-duration energy storage technology is particularly exciting in the climate tech sector for its potential to transform how energy grids operate. By allowing for the storage of energy for days, rather than hours, this technology enables a more seamless integration of renewable energy sources like solar and wind, which are often variable in nature. This capability is crucial for reducing reliance on fossil fuels and achieving a more sustainable and resilient energy infrastructure.
The company's focus on developing cost-effective and scalable energy storage solutions aligns with the growing global need for innovations that can support a fully renewable energy grid. The significant investment and support from major investors underscore the industry's recognition of the importance of long-duration energy storage and Form Energy's role in driving forward the transition to a cleaner, more sustainable energy future.
7. Klima
Klima, a mobile application developed by Climate Labs GmbH, is revolutionizing the field of climate tech with its unique approach to personal carbon offsetting. Founded in 2019 by serial entrepreneurs Markus Gilles, Andreas Pursian-Ehrlich, and Jonas Brandau, Klima is headquartered in Berlin, Germany. The app's mission is to turn carbon neutrality into a mass movement, unleashing the power of individual action at scale. Klima allows users to measure, reduce, and offset their carbon footprint directly through the app, empowering individuals to contribute actively to climate change mitigation efforts.
Year Founded: 2019
Location: Berlin, Germany
Funding Amount/Type: Klima has raised a total of €15.8 million over three funding rounds, with the latest funding being raised on April 21, 2022, from a Series A round. The total funding amount is also reported as $18 million in another source, with a Series A round of $11 million raised on April 1, 2022.
Funding Series: The latest funding round was a Series A round.
Major Investors: Klima's investors include Christian Reber (co-founder and CEO of Pitch), Jens Begemann, Niklas Jansen (co-founder and managing director of Blinkist), e.ventures, HV Holtzbrinck Ventures, 468 Capital, HV Capital, Keen Venture Partners, Headline, and Blue Impact Ventures.
Klima’s approach to climate change mitigation is particularly exciting in the field of climate tech because it emphasizes the impact of individual actions. By enabling users to track and offset their carbon footprint through everyday activities, Klima is making climate action accessible and actionable for the broader public. This approach not only raises awareness about personal environmental impacts but also provides a tangible way for individuals to contribute to global carbon reduction efforts.
The startup's success in raising significant funding and attracting major investors reflects the growing interest in solutions that empower individuals to participate in climate action. Klima's innovative use of technology to facilitate personal carbon offsetting marks a significant step forward in engaging the public in climate change mitigation and underscores the potential for technology to play a transformative role in addressing environmental challenges.
8. Polarium
Polarium, founded in 2014, is a Swedish company that has established itself as a key player in the lithium battery technology sector. The company focuses on providing smart lithium batteries designed to address power backup challenges in various sectors, including telecom, commercial, and industrial. Polarium's mission is to empower a sustainable world with innovative solutions for energy storage and energy optimization built on lithium-ion technology.
Year Founded: 2014
Location: Sweden
Funding Amount/Type: Polarium has raised a total of $273.9 million over 7 funding rounds. Another source reports the total funding as $250.19 million over 8 rounds.
Funding Series: The latest funding was a Venture - Series Unknown round raised on September 4, 2023.
Major Investors: The Swedish pension company Alecta, Formica Capital, Absolute Unlisted (part of the investment manager Coeli), AMF, Vargas, Roosgruppen, and Beijer Invest are among the key investors in Polarium.
Polarium's innovations in lithium battery technology are significant for various reasons. First, these batteries offer a sustainable and efficient solution for energy storage and management, vital in sectors ranging from telecommunications to industrial applications. Second, Polarium's technology plays a critical role in the integration and optimization of renewable energy sources, contributing to the transition towards more sustainable energy systems.
The startup is particularly exciting in the field of climate tech due to its focus on lithium-ion technology, which is crucial for the development of more efficient and sustainable energy storage solutions. This technology is essential for the scalability and effectiveness of renewable energy systems, as it allows for more efficient storage and distribution of energy generated from renewable sources.
Polarium's success in raising significant funding and attracting major investors highlights the growing interest and demand for advanced energy storage solutions. Their contribution to the development of smart lithium battery technology positions them as a key innovator in the climate tech sector, driving forward the transition to a more sustainable and renewable energy future.
9. Infarm
Infarm, a Berlin-based startup founded in 2013, is at the forefront of urban and vertical farming technologies. Their approach focuses on distributing "modular farms" to urban locations, promoting sustainable and local food production. Infarm's technology enables the growth of crops in a controlled, indoor environment, utilizing less space and resources compared to traditional farming methods. This innovative approach contributes to reducing the carbon footprint of food production and transportation by enabling local cultivation in urban settings.
Year Founded: 2013
Location: Berlin, Germany
Funding Amount/Type: Infarm has raised over $600 million in total funding. A significant part of this, $200 million, was raised in a Series D round led by the Qatar Investment Authority (QIA).
Funding Series: The latest funding round was a Series D round.
Major Investors: The Qatar Investment Authority (QIA) is a notable investor, among others.
Infarm’s urban farming and vertical farming technologies are particularly exciting in the climate tech field for several reasons. Firstly, their systems require significantly less water and land than conventional agriculture, making them a sustainable alternative for food production. Secondly, by localizing food production, they reduce the need for long-distance transportation, further decreasing the environmental impact. Lastly, the ability to control growing conditions leads to less waste and higher quality produce.
The startup's innovative approach to farming addresses crucial environmental challenges, such as land use, water scarcity, and the carbon footprint of the agricultural sector. Infarm's success in attracting significant funding and major investors underscores the growing importance of sustainable food production solutions in the fight against climate change. Their technology represents a significant step forward in creating more sustainable, efficient, and localized food systems, making them a key player in the climate tech sector.
10. Northvolt
Northvolt, a startup based in Stockholm, Sweden, was founded in 2015 and is spearheading innovations in sustainable battery production for electric vehicles. Their focus is on creating batteries with low-carbon manufacturing processes, contributing significantly to the field of climate tech.
Year Founded: 2015
Location: Stockholm, Sweden
Funding Amount/Type: Northvolt has secured investments totaling over $1 billion, including significant contributions from BMW Group, Volkswagen Group, Goldman Sachs, and Folksam.
Funding Series: Major funding rounds include a $1.6 billion loan from a consortium and a $1.2 billion fundraising effort in 2023.
Major Investors: Investors include BMW Group, Volkswagen Group, Goldman Sachs, and Folksam.
Northvolt's role in sustainable battery production and commitment to low-carbon processes make it an exciting startup in the climate tech sector. Their innovative approach addresses critical challenges in the automotive industry, reducing the environmental impact of electric vehicle batteries. The significant funding and support from major investors underline the importance of Northvolt's mission in the global transition towards sustainable energy solutions. Their expansion into North America with a new battery plant in Canada further solidifies their position as a leader in the field.
11. Propagate
Propagate, established in 2017, is revolutionizing the agricultural sector with its unique ecosystem that blends software, development, and financing. This innovative platform simplifies the process for farms to shift to agroforestry. By offering a comprehensive suite of services including agronomic insights, technical assistance, and financing options, Propagate ensures that farms can seamlessly integrate fruit, nut, and timber trees into their existing animal or crop farming systems. This approach effectively minimizes risks and supports a smoother transition.
Year Founded: 2017
Location: Denver, CO
Funding Amount/Type: Funding Series: Series A with a total of $11.5 million raised.
Major Investors: The Nest, Agfunder, TELUS Pollinator Fund for Good, The Grantham Foundation, Techstars and Elemental
Propagate's role in the climate tech field is significant, considering the growing need for sustainable agricultural practices. By focusing on agroforestry, they provide a viable solution to the challenges of food security, land degradation, and climate change, positioning themselves as a key player in the industry.
The core of Propagate's mission is to facilitate the adoption of regenerative agriculture practices, particularly agroforestry. This method involves incorporating permanent crops into farming, leading to enhanced profitability for farms. More importantly, it plays a crucial role in climate stewardship. By adopting these practices, farms not only boost their economic viability but also contribute significantly to climate solutions, showcasing Propagate's pivotal role in promoting sustainable and environmentally friendly farming methods.
12. BeZero
BeZero, founded in 2020 by Matthias Herbert and Tobias Frech in London, UK, is revolutionizing the carbon market with its carbon credit rating system. They've raised over $70 million, with a notable $50 million in a Series B round led by Quantum Energy Partners, and have attracted investments from EDF Group, Hitachi Ventures, and Intercontinental Exchange, among others
Year Founded: 2020
Location: London, England, United Kingdom
Funding Amount/Type: BeZero Carbon has raised more than $70 million to date. In a significant funding round, the company secured $50 million in a Series B round, marking it as one of the biggest raises in the UK climate tech sector for the year.
Funding Series: The latest funding was a Series B round.
Major Investors: The Series B funding round was led by US-based Quantum Energy Partners, with strategic investments from EDF Group through EDF Pulse Ventures, Hitachi Ventures, and Intercontinental Exchange (ICE). Other investors include Molten Ventures, Norrsken VC, Illuminate Financial, Qima, and Contrarian Ventures.
BeZero aims to enhance transparency and efficiency in the Voluntary Carbon Market, crucial for achieving Net Zero targets. Their approach, supported by a team of experts, is significant in the climate tech sector, addressing the need for reliable information in the growing market, valued at approximately €50 billion by 2030.
13. ChargerHelp!
ChargerHelp!, founded in January 2020 by Kameale C. Terry and Evette Ellis in Los Angeles, California, is a dynamic startup in the electric vehicle (EV) industry. The company specializes in operations, maintenance, and workforce development for EV charging infrastructure.
Year Founded: January 2020
Location: Los Angeles, California, United States
Funding Amount/Type: ChargerHelp! has raised $17.5 million in Series A financing. This funding round was led by Blue Bear Capital, with significant investments from Aligned Climate Capital, Exelon Corporation, and other investors like Energy Impact Partners and non sibi ventures.
Funding Series: The most recent funding was a Series A round.
Major Investors: Major investors include Blue Bear Capital, Aligned Climate Capital, Exelon Corporation, Energy Impact Partners, and non sibi ventures.
ChargerHelp! is not directly related to BeZero’s carbon credit rating system. However, in the broader context of climate tech, ChargerHelp! is contributing significantly by ensuring the reliability and efficiency of EV charging stations. Their focus is on improving the operational functionality of these stations, which is essential for the growing number of EV users and is pivotal in the transition to sustainable transportation. By addressing the technical and operational challenges of EV infrastructure, ChargerHelp! is helping to accelerate the adoption of electric vehicles, thereby reducing carbon emissions and advancing climate goals.
14. Sylvera
Sylvera, established in 2020 by Samuel Gill and Dr. Allister Furey in London, UK, is a trailblazer in the climate tech industry. It specializes in providing a carbon offset intelligence platform, enhancing transparency and insights in the carbon market.
Year Founded: 2020
Location: London, UK
Funding Amount/Type: Sylvera has raised a total of $39.5 million. This includes a $32 million Series A round, led by Index Ventures and Insight Partners, with participation from Salesforce Ventures, LocalGlobe, and other angel investors.
Funding Series: The latest funding was a Series A round.
Major Investors: Key investors include Index Ventures, Insight Partners, Salesforce Ventures, LocalGlobe, and several angel investors.
Sylvera's platform stands out in the climate tech field for its robust approach to analyzing carbon offset projects using machine learning and diverse data sources like satellite imagery. This enhances accountability and credibility in carbon offsetting, addressing the challenges of asymmetric information and transparency. Their contribution is vital in a market projected to be worth $100 billion by 2030, making Sylvera an essential player in achieving net-zero targets through improved carbon market practices.
15. ZeroAvia
ZeroAvia, founded in 2017 by Valery Miftakhov, is a U.S.-based company focused on developing hydrogen-fueled aviation technology. They are at the forefront of reducing aviation's carbon footprint, which is pivotal for the climate tech field.
Year Founded: 2017
Location: United States
Funding Amount/Type: ZeroAvia has raised significant funding over the years, including $21.4 million in Series A financing in 2020, $24.3 million in a second round of Series A in 2021, $35 million in Series B financing also in 2021, and a substantial round in 2023 with Airbus as a lead investor.
Funding Series: The company has completed Series A and B funding rounds.
Major Investors: Notable investors include Breakthrough Energy Ventures, Ecosystem Integrity Fund, Horizons Ventures, Royal Dutch Shell, Amazon's Climate Pledge Fund, British Airways, United Airlines Ventures, Alaska Air Group, Airbus, and Neom Investment Fund.
ZeroAvia's work in hydrogen-fueled aviation technology is transforming the industry. By developing powertrains for aircrafts that are zero-emission, they address a significant source of global carbon emissions. This breakthrough technology is not only crucial for the aviation industry's transition to sustainable practices but also represents a major advancement in the broader effort to combat climate change. The potential impact of ZeroAvia's technology in reducing aviation's carbon footprint makes them a particularly exciting and important player in the climate tech field.
10 Venture Capital Firms Investing in Climate Tech Startups
Securing funding is a crucial step for any climate tech startup aiming to scale its operations and bring innovative solutions to market. With growing investor interest in sustainable technologies, more venture capital firms are focusing on climate tech companies that address critical environmental challenges. For startups, finding the right investors can make all the difference in gaining not just financial support but also strategic guidance and industry connections.
Below is a list of 10 of the most active venture capital firms currently investing in climate tech, helping startups secure the resources they need to accelerate growth.
Related resource: Guide to CleanTech and Climate Tech in 2024 + Top VCs Investing
1. Breakthrough Energy Ventures
Backed by Bill Gates, Breakthrough Energy Ventures is one of the most influential players in climate tech, investing in early-stage companies focused on decarbonization. Their focus areas include energy storage, food and agriculture, and transportation.
Location: Kirkland, Washington
Investment Range: Seed to Series B
2. Lowercarbon Capital
Lowercarbon Capital is a venture capital firm focused exclusively on startups that are reducing carbon emissions. They invest in a wide range of sectors including carbon capture, energy storage, and clean energy technologies.
Location: San Francisco, California
Investment Range: Seed to Growth
3. Energy Impact Partners (EIP)
EIP partners with utilities and large energy consumers to invest in companies leading the transition to a clean energy future. Their portfolio includes startups working on grid modernization, electrification, and energy efficiency.
Location: New York, New York
Investment Range: Series A and beyond
4. Congruent Ventures
Congruent Ventures is a leading VC firm supporting early-stage companies at the intersection of sustainability and technology. They focus on areas like clean energy, transportation, and resource efficiency.
Location: San Francisco, California
Investment Range: Seed to Series B
5. Fifth Wall
Fifth Wall is a prominent investor in climate tech startups focused on sustainable real estate and infrastructure. They invest in companies addressing the decarbonization of the built environment, including energy efficiency, electrification, and carbon sequestration.
Location: Los Angeles, California
Investment Range: Seed to Series C
6. Prelude Ventures
Prelude Ventures invests in early-stage climate tech startups working across various sectors, including energy, agriculture, and transportation. They have a long-term investment horizon and prioritize companies with breakthrough technologies.
Location: San Francisco, California
Investment Range: Seed to Series B
7. Chrysalix Venture Capital
Chrysalix focuses on climate tech startups developing technologies for resource efficiency and industrial innovation. They work with companies that are bringing advanced materials, clean energy, and digitalization technologies to market.
Location: Vancouver, Canada
Investment Range: Series A to Growth
8. Obvious Ventures
Obvious Ventures invests in startups that are building solutions for a healthier planet. They focus on climate tech sectors like clean energy, circular economy, and sustainable food systems.Location: San Francisco, CaliforniaInvestment Range: Seed to Series C, and Growth
9. Elemental Excelerator
Elemental Excelerator is a global climate tech accelerator that invests in startups addressing energy, water, agriculture, and circular economy challenges. Their unique model combines investment with hands-on support to help companies scale.
Location: Honolulu, Hawaii
Investment Range: Seed to Series A
10. Schematic Ventures
Schematic Ventures is a seed-stage venture capital firm investing in supply chain, logistics, and sustainability. Their climate tech investments focus on decarbonizing industrial processes and logistics through technology innovation.
Location: San Francisco, California
Investment Range: Seed Stage
Find an Investor for Climate Tech with Visible
Visible helps founders connect with investors using our connect investor database, find VCs specifically investing in Climate Tech here.
Related resource: 10+ Founder Friendly Venture Capital Firms Investing in Startups
Related resource: 11 Venture Capital Podcasts You Need to Check Out
For Climate Tech startups, securing the right investors is critical as it goes beyond mere funding. These investors bring specialized expertise and strategic insights specific to the Climate sector and their guidance is invaluable in navigating the unique challenges and opportunities within the space.
Use Visible to manage every part of your fundraising funnel with investor updates, fundraising pipelines, pitch deck sharing, and data rooms.
Raise capital, update investors, and engage your team from a single platform. Try Visible free for 14 days.
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Fundraising
How to Find Venture Capital to Fund Your Startup: 5 Methods
Securing funding is one of the biggest challenges for any startup. Beyond building your product, hiring a team, and bringing your business to market, finding the right venture capital (VC) to fuel your growth is essential. For many startups, VC is a popular funding option, but the process of securing it can be complex and overwhelming.
If you're trying to figure out how to find venture capital or how to approach VC investors, you're not alone. Many founders struggle with finding the right investors, but with the right strategy, the process becomes much more manageable. In this guide, we’ll explore five proven methods that show you how to find the right VC investors and secure the funding your startup needs.
Whether you're just starting or actively seeking investment, this article will provide actionable tips to help you improve your chances of success.
Related Resource: How to Find Investors
What Kinds of Companies Are Venture Capital For?
Not every business is a perfect match for venture capital. VC investors typically look for startups that can grow rapidly in large markets and have the potential to generate significant returns. This is because venture capitalists are responsible for delivering strong financial results to their limited partners (LPs) by making high-risk, high-reward investments.
If your company operates in a niche or smaller market, or if your growth trajectory isn’t geared toward a potential massive exit, venture capital may not be the right path for you. VCs tend to favor startups in industries like technology, healthcare, and fintech—areas where scalability is built into the business model and the potential for a large exit is clear.
It's essential to understand this fit before investing time and energy into pursuing VC funding. Make sure your startup's goals and growth potential align with the expectations of venture capital investors before approaching them.
Related Resources: Understanding Power Law Curves to Better Your Chances of Raising Venture Capital
What is the Difference Between Venture Capital and Angel Investment?
Another option similar to venture capital is angel investors. Both generally operate as equity investors, but angel investors do not have the pressure to generate huge returns that a venture capital fund might feel.
As put by the team at Investopedia, “An angel investor is a high-net-worth individual who provides financial backing for small startups or entrepreneurs, typically in exchange for ownership equity in the company. Often, angel investors are found among an entrepreneur’s family and friends. The funds that angel investors provide may be a one-time investment to help the business get off the ground or an ongoing injection to support and carry the company through its difficult early stages.”
Related Resource: How To Find Private Investors For Startups
Methods for Finding Venture Capital
When it comes to securing venture capital funding, having a well-rounded approach is essential. There are multiple ways to connect with potential investors, and each method has its own advantages. Below, we explore five proven strategies to help you find the right venture capitalists for your startup, from online platforms to in-person networking.
1) Online platforms and investor databases like Visible Connect
If you determine that venture capital is right for your business, you’ll need a strategy to find and pitch the right investors for your business. We have found that the average founder speaks with 50-100 investors over the course of a fundraise.
In order to make sure you are spending time on the right investors, you need to have a clear understanding of the type of investor you are looking for. From here, you can build out a list and start reaching out and finding warm introductions. To find investors your for your startup, check out our free investor database, Visible Connect.
Related Resource: Building Your Ideal Investor Persona
Related Resource: Miami’s Venture Capital Scene: The 10 Best Firms
Related Resource: The Rise of Venture Capital in Utah: A Look at Utah’s Top 10 VC Firms
2) Venture Capital Associations
Different venture capital associations and firms can be a great way to get familiar with the eco-system and finding connections to potential investors. Check out a few popular VC associations below:
National Venture Capital Association (NVCA)
As written by the team at National Venture Capital Association, “NVCA unites the U.S. venture ecosystem to support the formation of high-growth companies and ensure the U.S. remains the most competitive environment in the world for entrepreneurs.” Learn more about NVCA here.
The Small Business Administration’s (SBA) Small Business Investment Company (SBIC) Program
As put by the team at The Small Business Administration, “Created in 1953, the U.S. Small Business Administration (SBA) continues to help small business owners and entrepreneurs pursue the American dream. SBA is the only cabinet-level federal agency fully dedicated to small business and provides counseling, capital, and contracting expertise as the nation’s only go-to resource and voice for small businesses.” Learn more about the SBA here.
Related resource: Business Venture vs Startup: Key Similarities and Differences
3) Online VC databases and lists
There are countless online VC databases and lists intended to help founders filter and find the right investors for their business. Over the course of a fundraise, it is crucial that you are spending time on the right investors for your business. With Visible Connect, our free investor database, you’ll be able to filter and find investors based on the properties that matter most to your business.
Related Resource: Exploring VCs by Check Size
Related Resource: Exploring the Top 10 Venture Capital Firms in New York City
Related Resource: Chicago’s Best Venture Capital Firms: A List of the Top 10 Firm
4) Social media platforms
Venture capitalists tend to be active on social media — like Twitter and LinkedIn. If you are unable to find a warm introduction to specific investors, social media can be a great place. By engaging with potential investors and introducing your business to them, you’ll be able to better your odds of finding an introduction or booking a meeting.
5) Networking – online and in-person
Investors are making a large bet when investing in a business. In order to build trust and move your fundraising along, you need to be constantly building and maintaining relationships. One of the best ways to do this is by leveraging online resource and in-person events to network. We find that sending a simple monthly update is a great way to help investors build conviction and trust in your business. Check out an example below:
Related Resource: Potential Investor Nurture Update Template
Building Relationships with Investors Before You Need Them
When it comes to securing venture capital, many founders focus solely on the fundraising process- finding the right VCs, pitching their business, and negotiating terms. However, one of the most powerful strategies is to start building relationships with potential investors well before you actually need to raise capital. Establishing rapport early on can significantly increase your chances of securing funding when the time comes.
Stay on Investors' Radar with Regular Updates
One of the best ways to nurture relationships with investors is by sending them regular updates about your company’s progress. Even if you’re not actively fundraising, keeping potential investors informed shows them that you’re executing on your business plan and making strides in your market. Monthly or quarterly updates can cover key milestones, growth metrics, new hires, or product developments.
Using a tool like Visible makes this process easier and more effective. With Visible, you can send beautiful, data-driven updates that provide investors with the insights they need to stay engaged. Visible also allows you to track who’s engaging with your updates, giving you valuable information about which investors are paying attention. This can be a game-changer when you’re ready to raise capital, as you’ll know which investors are most interested in your company.
Providing consistent, value-driven updates helps you stand out and build credibility among investors over time.
Seek Informal Advice
Another effective relationship-building strategy is to seek informal advice from investors. Investors appreciate founders who take the initiative to learn from their experience and expertise. By asking for input on specific aspects of your business- whether it’s product development, market expansion, or customer acquisition- you can create meaningful connections without the pressure of asking for capital.
Over time, these informal conversations can evolve into deeper relationships, and when you're ready to raise funds, investors who have been following your journey may be more inclined to participate. For example, with Visible, you can track these interactions and stay organized, allowing you to maintain personal touchpoints with investors who have provided feedback or advice. This positions you as a thoughtful and proactive founder- exactly the type of entrepreneur VCs want to back.
Invite Investors to Demo Days or Events
Inviting investors to key events such as demo days, product launches, or industry conferences is another way to build long-term relationships. These events give investors a chance to see your progress firsthand and get excited about your vision.
You can also set reminders to follow up with attendees after an event, ensuring that you maintain momentum and stay top-of-mind with investors. Keeping this line of communication open increases the likelihood that they’ll participate when you formally start raising capital.
Early Relationship-Building as a Key Strategy
By establishing relationships with investors early on, founders gain a significant head start when it comes time to raise capital. Not only do these relationships help build trust, but they also give you insight into what investors are looking for, which can shape how you run and grow your business.
Many successful founders credit early relationship-building as one of the reasons they were able to raise capital more efficiently. It’s easier to ask for an investment from someone who has already been following your company’s journey, rather than from a cold introduction.
Tips for Securing Venture Capital
As we mentioned above, making sure you are spending your time on the right investors is crucial to a successful fundraise. Check out a few tips for securing and finding the right investors below:
Find venture capital firms that invest in similar companies
First things first, you want to make sure you are pitching investors that invest in similar companies to yours. This means similar market, check size, and stage. You can filter by all of these fields in Visible Connect.
Know your business valuation
VCs are equity investors. Because of this, it is important that you have an understanding of your valuation and will be able to speak to it during your fundraise.
Related Resource: Valuing Startups: 10 Popular Methods
Ensure the VC firm matches the necessary funding stage
Venture capital spans many stages. Some investors will primarily invest in pre-seed or seed stages. On the flip side, some investors might solely focus on later stage investments. In order to make sure you are the making the most of your time, be sure that the investors you are targeting invest in your stage.
For example, if you are looking to raise a $1M seed round, you should not be pitching investors that write $20M+ checks.
Related Resource: The Understandable Guide to Startup Funding Stages
Examine the firm’s funding history
Another area to consider is a firm’s funding history. Venture capitalists typically raise 1 fund at a time. Generally, they will distribute this fund over 8-12 years. If you notice that a VC fund was last raised 8 years ago, it might be time to look for a fresher fund. This is because they might be more stringent with their investment criteria as they are reaching the last of their funds — the last capital could be reserved for current investments.
Related resource: Carried Interest in Venture Capital: What It Is and How It Works
Understand considerations for location
Some investors will only invest in specific locations and geographies. Most investors are very clear about this on their marketing site. Make sure you are paying attention to their investment criteria and fit the geographies they are investing in.
Common Fundraising Mistakes to Avoid
1. Over-Valuing Your Company
One of the most frequent mistakes founders make is over-valuing their company. While aiming for the highest valuation possible is tempting, doing so without strong justification can backfire. Investors are savvy and will closely evaluate your financials, market opportunity, and growth potential to determine whether your valuation aligns with reality. An inflated valuation can make it harder to attract investors and may cause you to face greater pressure during future funding rounds.
Instead, focus on a realistic and data-backed valuation that reflects your current traction, market conditions, and growth potential. Tools like Visible can help you track and share your financial metrics with investors, giving you a better understanding of your company’s true value and helping you avoid this common trap.
2. Approaching the Wrong Investors
Not all venture capital firms are the same, and one of the biggest fundraising mistakes is targeting the wrong investors. Every VC has different preferences when it comes to industries, stages of investment, and check sizes. Approaching investors who don’t align with your company’s sector, size, or growth stage can result in wasted time and missed opportunities.
Before reaching out, do your research. Use investor databases like Visible Connect to filter and find VCs that match your industry, geography, and funding stage. Focusing on investors who are more likely to be interested in your startup will improve your chances of making a meaningful connection.
3. Failing to Have a Clear Exit Strategy
Investors are ultimately looking for a return on their investment, and they want to understand how and when they’ll be able to realize that return. Failing to present a clear exit strategy- whether through acquisition, IPO, or another liquidity event- can make investors hesitant to commit to your company.
When pitching VCs, discuss potential exit scenarios and the timeline you foresee. This doesn’t mean you need to have every detail finalized, but demonstrating that you’ve thought through how investors will eventually see a return on their capital will give them confidence in your business plan.
4. Raising Capital Without a Strong Story
Venture capitalists are inundated with pitches, so having a compelling narrative around your business is crucial. Founders who focus only on the numbers and product without weaving those into a bigger story about the company’s vision, impact, and long-term growth potential can struggle to engage investors.
When crafting your pitch, make sure you’re telling a story that resonates with investors emotionally as well as financially. Highlight not just what your company does, but why it matters and how it’s going to change the market. Keep track of the milestones that make up this story, and ensure your updates to investors consistently reflect the progress toward achieving your vision.
5. Not Building Relationships Before Fundraising
Many founders make the mistake of only reaching out to investors when they’re actively fundraising. As mentioned in the previous section, building relationships with VCs before you need their money can make the formal fundraising process much smoother. Cold introductions during a fundraise are much less effective than pitching to investors already familiar with your business.
6. Lack of Preparedness for Due Diligence
Finally, another common mistake is not being fully prepared for the due diligence process once a VC shows interest. Investors will want to dive deep into your financials, customer data, legal structure, and more before committing. It can raise red flags and slow down or even end negotiations if you’re not organized or can’t quickly provide the necessary information.
The Role of Lead Investors in a VC Round
Securing a lead investor can be one of the most critical steps toward closing the deal in a venture capital round. A lead investor is typically the first and largest investor in the round and often plays a central role in negotiating the terms of the investment. Their involvement can influence other investors to join the round, making it essential to understand their importance and how they impact your fundraising efforts.
What Does a Lead Investor Do?
The lead investor not only commits a significant portion of the total funding in a round but also sets the terms for the deal, such as the company’s valuation, the amount of equity being offered, and the rights associated with the investment. These terms are then presented to other investors, who often follow the lead investor’s guidance when deciding whether to participate.
This is why securing a lead investor early in the fundraising process is so valuable. Having a reputable, experienced lead investor on board can validate your startup’s potential, making it easier to attract additional capital from other venture capitalists and angel investors.
The Importance of Identifying a Strong Lead Investor
A lead investor brings more than just capital- they often bring expertise, networks, and credibility to your startup. A strong lead investor can help shape your company’s growth strategy, provide mentorship, and open doors to new business opportunities. Additionally, their backing can instill confidence in other investors, who may feel more comfortable participating in the round once they see a well-respected investor leading the charge.
When seeking a lead investor, look for someone who understands your market and believes in your vision for the company. Their alignment with your mission will influence their level of involvement and support. Ideally, they should be someone who can offer strategic value beyond just financial backing, acting as a trusted advisor and champion for your startup.
How to Secure a Lead Investor
Securing a lead investor typically requires building a solid relationship early on. Lead investors must feel confident in your team, product, and market potential. They’ll want to see clear signs of traction and growth before they commit to leading your round. As discussed in previous sections, building these relationships over time- through regular updates and informal interactions- can make it easier to secure a lead investor when you're ready to raise funds.
The Ripple Effect of a Strong Lead Investor
Once a lead investor is on board, the likelihood of closing the round increases dramatically. Other investors follow the lead investor’s terms, and their participation signals that your company is a solid investment opportunity. This ripple effect can make filling out the round much quicker and smoother.
Lead investors often take an active role in the company’s development post-investment, helping shape major business decisions and providing guidance on future fundraising rounds. Their involvement is not just a short-term win for your startup but a long-term partnership that can help drive the company's success.
Secure Venture Capital Funding With Visible
At Visible, we like to compare a venture fundraise to a traditional B2B sales process. At the top of your funnel you are adding qualified investors. Moving them through your funnel with meetings, email updates, pitches, and other communications. And ideally, closing them at the bottom of your funnel as a new investor.
See how Visible can help you along every step of your fundraising funnel. Give VIsible a free try for 14 days here.
Related resources:
Understanding the Advantages and Disadvantages of Venture Capital for Startups
12 Online Startup Communities for Founders
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Fundraising
10+ Venture Capital Firms in Canada Funding Startups in 2024
The Canadian venture capital scene continues to thrive, with numerous venture capital firms in Canada actively funding startups across a wide range of industries in 2024. From early-stage investments to growth-stage funding, these Canadian VC firms are crucial partners for founders seeking to scale their businesses. Whether you're a startup founder searching for the right VC in Canada or an investor looking to understand the country's dynamic funding landscape, this list of top venture capital firms in Canada offers a comprehensive overview of the leading players driving innovation and entrepreneurship nationwide.
Related resource: Exploring Canada’s Emerging Tech Hubs: Where Innovation is Thriving
Overview of the Canadian VC Landscape in 2024
The venture capital landscape in Canada continues to evolve, with 2024 shaping up to be another pivotal year for startups and investors alike. Canadian venture capital firms are increasingly focusing on emerging technologies and industries, helping to fuel the growth of the country's vibrant startup ecosystem. Key regions such as Toronto, Vancouver, and Montreal remain the primary hubs for venture capital in Canada, each with unique industry strengths and active investor communities.
In Toronto, Canada's largest city, sectors like fintech, AI, and SaaS lead the charge, attracting significant investment from local and global VCs. Toronto’s robust tech ecosystem has solidified its position as a key player in North America's venture capital landscape.
Meanwhile, Vancouver is gaining recognition for contributing to industries like biotechnology, gaming, and clean technology. With a strong foundation of academic research institutions and a growing pool of tech talent, Vancouver-based startups are securing larger rounds of VC funding, particularly in clean energy and environmental innovation.
Montreal stands out as a leader in AI and deep tech, driven by strong government support and initiatives that foster innovation. Montreal’s thriving AI scene, supported by institutions like Mila (the Quebec Artificial Intelligence Institute), attracts venture capital and top talent from around the world.
Across Canada, biotech, sustainability, and fintech are seeing heightened interest from Canadian VC firms. These sectors align with global trends in healthcare innovation, climate technology, and financial disruption, all of which are receiving significant investment attention.
Government Support and Initiatives
Canada's government has played a crucial role in the growth of its venture capital ecosystem. Initiatives like the Venture Capital Action Plan (VCAP) and the Strategic Innovation Fund have helped unlock billions in VC funding for startups across the country. Programs such as SR&ED (Scientific Research and Experimental Development) tax incentives and Innovative Solutions Canada continue to support research-intensive startups, making Canada an attractive destination for founders and investors.
Due to these factors, the Canadian venture capital ecosystem has seen steady growth in deal volume and funding amounts over the past few years. In 2024, this trend is expected to continue, with Canadian VC firms increasingly participating in larger, later-stage funding rounds, reflecting the maturity of the startup ecosystem in Canada.
Top Venture Capital Firms in Canada
As the Canadian startup ecosystem continues to grow, having access to the right venture capital firms is crucial for founders looking to scale their businesses. Below is a curated list of top Canadian venture capital firms that are actively funding startups in 2024, providing not only capital but also strategic guidance, mentorship, and access to a vast network of industry leaders.
1. BDC Ventures
As put by the team at BDC Ventures, “Our venture capital funds present diverse opportunities for entrepreneurs to innovate in new and existing markets. The breadth of our funds across industries, technologies and company stage is unique in Canada’s venture capital space. Each fund is managed by a dedicated team with decades of experience bringing groundbreaking Canadian companies to the world stage.”
Location
BDC Ventures is focused on growing the venture capital ecosystem in Canada.
Company Stage
BDC Ventures invests in companies from early to late stages.
Preferred industries
The team at BDC Ventures is currently operating 6 funds that invest across multiple industries including:
Sustainability Venture Fund
Climate Tech Fund II
Thrive Venture Fund and Lab for Women
Deep Tech Venture Fund
Industrial Innovation Venture Fund
Growth Venture Co-Investment Fund
Related Resource: 10+ VCs & Accelerators Investing in Underrepresented Founders
Portfolio Highlights
Some of BDC Ventures’ most popular investments include:
Hopper
Unsplash
Shoelace
2. Golden Ventures
As put by the team at Golden Ventures, “We have a deep sense of empathy to founders and their craft. We challenge our portfolio and team to build remarkable companies. We are authentic and rational in our decision-making and apply the same honesty to our relationships.”
Location
Golden Ventures is headquartered in Toronto and invest in companies throughout North America.
Company Stage
Golden Ventures is focused on seed-stage companies. As put by their team, “We target initial commitments of $500K – $2M for between 7-15% of a company, and we reserve capital to follow on into companies based on progress.”
Related Resource: Seed Funding for Startups 101: A Complete Guide
Preferred industries
Golden Ventures is industry agnostic in its investment approach.
Portfolio Highlights
Some of Golden Ventures’ most popular investments include:
ApplyBoard
Yesware
Stacked
3. Inovia Capital
As put by their team, “Inovia Capital is a venture capital firm partnering with founders to build impactful and enduring global companies.
With four active venture funds, two growth funds, a continuation fund and an expanding team of investors, operators and advisors, we are fully equipped to support founders with capital, insights and mentorship throughout their journey.”
Location
Inovia Capital is headquartered in Canada and invests in companies across the globe.
Company Stage
Inovia Capital invests in companies across all stages.
Preferred industries
As put by their team, “We focus on B2B and B2C SaaS companies and marketplaces.”
Related Resource: 32 Top VC Investors Actively Funding SaaS Startups
Portfolio Highlights
Some of Inovia’s most popular investments include:
Bench
Hopper
Darwin AI
4. BlueSky Equities
As put by their team, “Bluesky Equities is a privately-owned, absolute-return focused, investment management company.
We are unconstrained in our approach, investing in public and private markets with a focus on alternative assets including venture capital, private equity, hedge funds, and real estate.”
Location
Bluesky Equities is headquartered in Calgary and invest in companies across Canada.
Company Stage
Bluesky Equities is focused on early-stage investments.
Preferred industries
Bluesky Equities is focused on B2B SaaS companies.
Related Resource: 15+ VCs Investing in the Future of Work
Portfolio Highlights
Some of Bluesky Equities’ most popular investments include:
Ownly
Active Door
Spocket
5. ArcTern Ventures
As put by the team at ArcTern Ventures, “Since 2012, we’ve been investing in entrepreneurs obsessed with solving humanity’s greatest challenges—climate change and sustainability. We’re former startup founders ourselves, we get it, and like you, we believe technology can save our planet.”
Location
ArcTern has office locations in Toronto, San Francisco, and Oslo and invests in companies across the globe.
Related Resource: The 11 Best Venture Capitals in San Francisco
Company Stage
Explain the company stage this firm invests in.
Preferred industries
As put by their team, “We invest broadly in technology companies that have a positive impact on climate change and sustainability.” Some specific sectors include:
Clean Energy
Energy Efficieny and Storage
Circular Economy
Advanced Manufacturing and Materials
Mobility
Food Systems
Related Resource: VCs Investing In Food & Bev Startups
Portfolio Highlights
Some of ArcTern’s most popular investments include:
Palmetto
Span
Flashfood
6. Relay Ventures
As put by the team at Relay Ventures, “We don’t fund companies. We fund founders. From the beginning, we have had a simple philosophy. We view founders as partners. We bring capital, networks, and experience, and our founders bring expertise, teams, and dreams. Together we build transformational businesses based on teamwork, trust, and aspiration. Because being a founder depends on it. Our track record speaks for itself.”
Location
Relay Ventures is headquartered in Toronto and invests in companies across North America.
Company Stage
Relay Ventures is focused on seed and pre-seed stage companies.
Preferred industries
Relay Ventures is industry agnostic and focuses on companies operating in large markets.
Portfolio Highlights
Some of Relay Ventures’ most popular investments include:
Ecobee
Bird
Swift
7. Alate Partners
As put by the team at Alate Partners, “We invest in courageous founders and transformational technology that will change the built world for the better. Founded as a partnership between Relay Ventures and Dream, our team has decades of experience in venture capital, operations, and real estate. In addition to providing capital, Alate has unique access to expertise and customers through our network of influential real estate partners, investors, and founders.”
Location
Alate Partners is headquartered in Toronto.
Company Stage
Alate Partners invest in companies around the Seed and Series A stages.
Preferred industries
As put by their team, “We exclusively invest in real estate and construction technology, so you can skip explaining the basics and focus on what matters most. Our knowledge and network are here to accelerate your growth.”
Portfolio Highlights
Some of Alate’s most popular investments include:
Bird
Altrio
PadSplit
8. Real Ventures
As put by their team, “Real Ventures is an early-stage venture firm focused on serving daring entrepreneurs with the ambition to create successful, global companies. Since 2007, Real Ventures has dedicated itself to building the Canadian startup ecosystem on the belief that people, not money, build game-changing companies.
Real Ventures provides stage-specific guidance, mentorship, and access to networks and resources to fast-track founders’ personal and company growth. Real Ventures manages $325 million across five funds and its active portfolio of 100+ companies is currently valued at $10 billion.”
Location
Real Ventures is headquartered in Toronto and has an office in Montreal. They primarily invest in companies in Canada.
Company Stage
Real Ventures is focused on early-stage investments.
Preferred industries
As put by their team, “There is no standard answer, but there are three main things that we look for: a great team with unique insight on a market opening that has massive scaling potential. We like to hear bold ideas that have the potential to disrupt unconventional industries.”
Portfolio Highlights
Some of Real Ventures most popular investments include:
Mejuri
Integrate AI
Unbounce
9. Georgian
As put by the team at Georgian, “We believe that entrepreneurs deserve an experience of growth capital that matches any other best-in-class technology partner. We’re focused on your experience as a growth-stage CEO, using data-driven insights to improve how our team supports you and your team.”
Location
Georgian is headquartered in Toronto and invests in companies across the globe.
Company Stage
Georgian is focused on companies that are generating $500k+ in MRR and are raising between $25M and $75M.
Preferred industries
Georgian is focused on B2B SaaS companies.
Related Resource: FinTech Venture Capital Investors to Know
Portfolio Highlights
Some of Georgian’s most popular investments include:
Beam
Shopify
Ritual
10. Panache Ventures
As put by the team at Panache Ventures, “We invest in the most promising founders — those who are automating, decentralizing, democratizing, and expanding human capabilities.
We want to be the first to invest in your potential, and to support your leadership.”
Location
Panache is headquartered in Montreal and invests in primarily invests in companies in Montreal.
Company Stage
Panache invests in early-stage companies and tries to write the first check into their companies.
Preferred industries
Panache is industry agnostic in their approach.
Related Resource: 10 VC Firms Investing in Web3 Companies
Portfolio Highlights
Some of Panache Ventures most popular investments include:
Altrio
Dwelling
Relay
VC Resources for Canadian Founders
For Canadian startup founders looking to secure venture capital funding, having access to the right resources can significantly improve your chances of success. Beyond venture capital firms, Canada offers a variety of support programs, incubators, and accelerators that provide additional funding, mentorship, and network opportunities. Below is a list of valuable VC resources for Canadian founders that can help guide you through your fundraising journey.
Government Funding Programs
Canada has a range of government-backed funding programs that offer support to startups at various stages. These programs can often serve as a stepping stone to securing venture capital investment.
Scientific Research and Experimental Development (SR&ED): The SR&ED program offers tax credits and incentives for companies conducting research and development in Canada. This program can be particularly beneficial for tech startups or companies innovating in industries like biotech and AI.
Venture Capital Action Plan (VCAP): VCAP is a federal government initiative designed to help increase the availability of venture capital for startups in Canada. Through this program, the government co-invests with private-sector VC firms, providing additional capital to Canadian startups.
Innovative Solutions Canada (ISC): ISC offers funding and contracts to Canadian startups with innovative solutions. This program is focused on helping startups bring their technology to market by partnering with government departments.
These government programs can not only provide direct funding but also serve as validation when approaching Canadian venture capital firms for additional investment.
Startup Incubators in Canada
Startup incubators provide early-stage companies with resources like office space, mentorship, and access to investors. Many successful Canadian startups began their journeys in incubators that helped them refine their products and business models before seeking venture capital.
MaRS Discovery District (Toronto): MaRS is one of the world’s largest urban innovation hubs, supporting startups in industries such as health, cleantech, fintech, and enterprise software. They offer mentorship, access to capital, and partnership opportunities.
The DMZ (Toronto): Based out of Ryerson University, The DMZ is one of Canada’s top startup incubators, with a focus on scaling high-potential technology startups. The DMZ provides entrepreneurs with access to a network of investors, mentors, and industry leaders.
District 3 (Montreal): District 3 is an incubator based in Montreal that helps founders grow their startups from early-stage to venture-backed companies. With a focus on technology and innovation, District 3 provides a combination of mentorship, workshops, and access to capital.
Joining an incubator can give founders a head start by connecting them with VC firms in Canada and offering the support needed to scale their startups.
Accelerator Programs
Accelerators are a great way for Canadian startups to fast-track their growth by receiving funding, mentorship, and resources in a short amount of time. Many Canadian venture capital firms closely follow the startups that come out of these programs, making them an excellent resource for founders seeking investment.
Creative Destruction Lab (Multiple Locations): CDL is a globally renowned accelerator with locations across Canada, including Toronto, Vancouver, and Montreal. Focused on scalable, science-based startups, CDL provides founders with access to investors, business experts, and academic researchers.
FounderFuel (Montreal): FounderFuel is a Montreal-based accelerator that offers startups mentorship, networking opportunities, and access to investors. The program culminates in a Demo Day, where founders present to top Canadian VC firms and angel investors.
Techstars Canada (Toronto and Vancouver): Techstars runs accelerator programs in both Toronto and Vancouver, focusing on high-growth startups. The program provides mentorship, seed funding, and access to a global network of investors and industry experts.
Participating in these accelerator programs can dramatically improve your visibility with Canadian venture capital firms and help you prepare for your next fundraising round.
Top Canadian Venture Capital Trends in 2024
As the startup ecosystem in Canada matures, Canadian venture capital firms are increasingly aligning their investments with global trends and focusing on areas of innovation that promise long-term growth. In 2024, several key trends are emerging as focal points for venture capital in Canada, shaping the future of investment and startup success across the country.
1. Sustainability and Climate Tech
One of the biggest trends in 2024 is the heightened focus on sustainability and climate technology. Canadian venture capital firms are prioritizing investments in startups that address pressing environmental challenges, from clean energy solutions to waste reduction and carbon capture innovations. Firms like ArcTern Ventures and BDC Capital have established funds specifically targeting sustainable startups. This focus aligns with Canada’s broader commitment to reducing greenhouse gas emissions and transitioning to a greener economy.
2. Tech Innovation in AI and Fintech
Canada has emerged as a global hub for AI research and development, with venture capital firms in Canada heavily backing AI-driven startups. Montreal, in particular, has become a center for AI innovation, with firms like Inovia Capital and Real Ventures investing in AI startups that are revolutionizing industries such as healthcare, fintech, and autonomous vehicles.
Similarly, the fintech sector continues to grow, with Toronto leading the charge as one of the top fintech ecosystems in North America. Canadian VCs are actively funding startups that are disrupting traditional financial services, from blockchain and cryptocurrencies to AI-powered financial platforms. Georgian is one of the key players in this space, focusing heavily on fintech innovation and data-driven business models.
3. Female Founders and Diversity-Focused Investments
In recent years, the importance of diversity in the venture capital ecosystem has gained attention, and 2024 is no exception. Canadian venture capital firms increasingly recognize the value of diverse teams and are stepping up efforts to back female founders and underrepresented groups. Funds like BDC’s Thrive Venture Fund and Lab for Women are specifically focused on empowering women-led startups, providing capital, mentorship, and resources to help women founders scale their businesses.
4. Health and Biotech Innovation
The biotech and health tech sectors are seeing sustained interest from Canadian venture capital firms in 2024. With advancements in digital health, medical devices, and biotech research, Canada is positioned as a leader in health innovation. Venture firms like Lumira Ventures are at the forefront of backing companies pioneering new treatments, improving healthcare delivery, and utilizing AI for diagnostics and patient care.
5. Web3 and Blockchain Technologies
Another emerging trend is the rise of Web3 technologies and blockchain startups in Canada. Panache Ventures is one of the leading Canadian venture capital firms investing in this space, funding startups working on decentralized finance (DeFi), digital identity, and new blockchain-based business models. As blockchain technology continues to evolve, Canadian VCs are positioning themselves at the forefront of this global shift.
6. Government Support and Strategic Partnerships
Government initiatives, such as the Venture Capital Action Plan and other funding programs, continue to boost venture capital investment in Canada significantly. Canadian VCs leverage these programs to enhance funds and form strategic partnerships with government-backed initiatives. This collaborative effort has further strengthened the Canadian venture capital ecosystem, allowing firms to offer more capital and resources to startups nationwide.
Maximize Your Fundraising Impact With Visible
At Visible, we typically compare a venture fundraise to a traditional B2B sales and marketing funnel.
At the top of the funnel, you find potential investors via cold outreach and warm introductions.
In the middle of the funnel, you nurture potential investors with meetings, pitch decks, updates, and other communications.
At the bottom of the funnel, you are working through due diligence and hopefully closing new investors.
Like sales, a healthy fundraising funnel starts by finding the right investors. This can be based on geography, check size, focus areas, etc.
Use Visible to manage every part of your fundraising funnel with investor updates, fundraising pipelines, pitch deck sharing, and data rooms.
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