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The Femtech Frontier: Opportunities in Women's Health Technology + the VCs Investing
As a femtech founder navigating the ever-evolving landscape of women-specific health solutions, I find it crucial to understand the industry's breadth and the opportunities it presents. As the market continues to expand, driven by innovation and a more profound societal recognition of these needs, understanding the current trends, market size, and potential gaps is essential for anyone looking to make a significant impact in this space.
Understanding the Femtech Landscape
Femtech encompasses a broad spectrum of software, diagnostics, products, and services designed specifically to address women’s health issues. This sector includes solutions for female-specific health concerns such as fertility, birth control, menstruation and period care, menopause, chronic conditions and hormonal disorders, pelvic health, pregnancy and post-pregnancy care, breastfeeding, and sexual wellness. Moreover, femtech also extends into emerging health spaces that recognize gender-specific healthcare needs, encompassing wellness and mental health areas such as osteoporosis, breast cancer, autoimmune conditions, stroke, thyroid issues, chronic fatigue, anxiety, and depression. Beyond physical and mental health, femtech products increasingly empower women in areas traditionally underserved by technology, including personal finance and education.
Evolution of the Industry
The femtech industry began to gain prominence in the early 2010s as entrepreneurs and investors realized the significant underserved market in women's health technology. Initially focusing on reproductive health and period-tracking apps, the sector has since expanded into a wide range of health categories and now includes sophisticated diagnostic tools, telehealth services, and personalized wellness products. This evolution reflects a broader societal shift towards more open conversations about women's health issues and a growing recognition of the economic potential of addressing these needs.
Current Market Size and Projected Growth
The femtech industry has seen explosive growth over the past decade. As of recent estimates, the global femtech market is valued at several billion dollars and is projected to grow substantially as the demand for women-specific health solutions continues to increase. This growth is driven by technological advancements, increasing female healthcare consumerism, and a rising number of women in STEM fields who are poised to innovate and lead in this space.
Key Areas of Innovation
Reproductive Health and Fertility: Innovations include apps and devices that improve fertility tracking, in vitro fertilization (IVF) technologies, and non-invasive pregnancy monitoring tools.
Menstrual Health: Advanced menstrual products that go beyond traditional offerings, smart menstrual cups, and wearable technologies are transforming menstrual health management.
Menopause Solutions: With an aging population, digital therapeutics, hormone replacement therapies, and lifestyle management apps specifically for menopause are increasing.
Chronic Conditions and Hormonal Disorders: Technologies aimed at managing conditions like polycystic ovary syndrome (PCOS) and endometriosis through better diagnostics and personalized treatments.
Mental Health: Platforms focusing on mental health issues prevalent in women, such as postpartum depression, anxiety, and the psychological aspects of chronic health issues.
Femtech Industry Trends and Opportunities
The femtech sector has been characterized by several prominent trends highlighting the current momentum and the industry's future potential. A growing focus on personalized healthcare has propelled the development of bespoke femtech solutions that cater to individual health needs. There is also an increasing crossover between wellness and healthcare, where apps and devices integrate preventive care with daily wellness routines, reflecting a holistic approach to women's health. Expanding community-based platforms has also fostered a supportive network where users share experiences and advice, enhancing user engagement and retention.
Emerging Technologies and Their Potential Impact
Artificial Intelligence (AI): AI is revolutionizing femtech by enabling more accurate diagnostics and predictive analytics. AI-driven platforms can analyze vast amounts of data to predict health trends, personalize healthcare recommendations, and optimize treatment plans.
Telehealth: The pandemic accelerated the adoption of telehealth in femtech. This technology provides women with remote access to healthcare professionals for a variety of issues, from fertility consultations to mental health support. It is crucial to make healthcare more accessible, especially in underserved areas.
Wearable Devices: Wearables have evolved from fitness tracking to sophisticated health monitoring tools. In femtech, wearable devices now track menstrual cycles, monitor pregnancy, and even detect early signs of breast cancer, offering continuous, real-time health monitoring.
Examples of Successful Femtech Companies
Clue: A leading menstrual health app that uses data to predict menstrual cycles and offer insights into reproductive health. Clue has set a high standard for privacy and scientific accuracy, making it a trusted tool for millions of women globally.
Elvie: Known for its innovative breast pumps and pelvic floor trainers, Elvie combines sleek, discreet designs with powerful, smart technology, significantly improving women's lives post-pregnancy and beyond.
Tia: This company offers a holistic healthcare approach for women by integrating virtual and in-person care, focusing on everything from gynecology to mental health, embodying the integrated care model that is becoming a trend in femtech.
Potential Gaps in the Market and Opportunities for Innovation
Despite the advancements, several areas within femtech still lack adequate solutions, presenting opportunities for innovation:
Menopause Management: There is a noticeable gap in products addressing the full spectrum of menopause symptoms. Innovations in hormone replacement therapy delivery or non-hormonal symptom management can meet significant demand.
Health Issues in Aging Women: Conditions like osteoporosis and cardiovascular health in post-menopausal women are underrepresented in current femtech products.
Mental Health: While some platforms address postpartum depression, broader mental health issues linked to hormonal changes throughout a woman's life cycle are still underserved.
Global Accessibility: Many femtech products are not readily available or affordable globally, especially in developing countries. Creating scalable solutions that are both accessible and culturally sensitive could expand the reach of femtech significantly.
Fundraising Strategies for Femtech Startups
Fundraising in the femtech sector has evolved significantly over the past decade, with more investors recognizing the potential of women-centric health solutions. Increasing awareness and successful exits are driving more interest from venture capitalists, angel investors, and strategic partners. Notably, the unique nature of femtech, which combines technology, healthcare, and direct-to-consumer elements, appeals to a diverse group of investors looking to impact women's health globally.
What Investors are Looking for in Femtech Startups
Investors interested in femtech are particularly keen on startups that:
Address a Clear Unmet Need: Products that solve a real and significant problem in women’s health are more likely to attract attention.
Have a Scalable Business Model: Investors look for companies with the potential to grow quickly and sustainably.
Show Strong Founder Expertise: Teams with backgrounds in healthcare, technology, and business, or with personal experiences that motivate their vision, are often more compelling.
Demonstrate Technological Innovation: Startups that leverage new technologies to improve outcomes, efficiency, or user experiences stand out in the fundraising process.
Provide Evidence-Based Solutions: Given the health-focused nature of femtech, products backed by scientific research and data are more likely to gain investor confidence.
Related resource: The Rise of Women-Led VC Firms (+ a List to Keep an Eye on)
Crafting a Compelling Pitch
Articulate the Problem and Your Unique Solution: Clearly define the specific women's health issue your product addresses and how your solution is different from or better than existing offerings.
Highlight the Market Potential: Use data to demonstrate the size of the market and your target demographic. Show how your product fits into the broader health and wellness industry trends.
Showcase Your Team’s Expertise: Emphasize the qualifications and experiences of your team that make you the right people to execute this vision.
Provide Proof of Concept: Whether through initial sales data, user testimonials, or clinical trials, show that there is a demand for your product and that it works.
Discuss Your Business Model: Explain how you will generate revenue, your pricing strategy, and your marketing approach. Be clear about how you intend to scale.
Outline the Use of Funds: Be specific about how much money you need and how you plan to use it to grow your business.
Related resource: 10+ VCs & Accelerators Investing in Underrepresented Founders
VCs and Accelerators Investing in Femtech Startups 2024
FemTech Lab
Location: London, England
About: Unlocking Women's health and wellness for a fairer, better World. Join the movement! FemTech Lab is a global ecosystem of 20,000+ founders, investors, corporate partners, biotech and research, hospitals, pharmaceuticals, government, and retail leaders innovating across all women's health and wellness subsectors. The FemTech Lab Accelerator program has supported 70+ inspiring startups in women's health. If you are interested in applying, check out the timing of the next cohort on our website and sign up for the next open webinar.
Goddess Gaia Ventures
Location: London, GB
About: A female founded pre series A fund (in building mode) investing in 360 solutions in female health, wellness and Femtech in a + $1 Trillion TAM which has to date been under-served, under-researched and under-funded . Mission Statement: To grow the next generation of Women’s healthcare unicorns We invest in: UK, Europe, Greater Europe and Israel and scaling these companies into the US We partner with: Founders (male and female) seeking to invent new market categories or who are seeking to disrupt incumbent healthcare markets Exponential Sector Growth: Increase of women in STEM and Finance; innovating for themselves Special Interest: Solutions that cater to the health of women of colour and that create healthcare parity
Thesis: Goddess Gaia Ventures (GGV) is capitalising on the $1.1 trillion women’s healthcare market by investing in five core pillars - women's fertility; women's cancer; women's wellness; women's lifestyle diseases and Femtech products and services.
Amboy Street Ventures
Location: Los Angeles, California, United States
About: The world’s first venture capital fund focused on Sexual Health & Women’s Health Technology startups. Amboy Street Ventures is an active investor and adds value above and beyond capital. Its dedicated Value Enhancement Team supports portfolio companies with marketing & branding, sales & distribution, product development & scientific innovation and public education resources through its position within the Healthy Pleasure Group, an ecosystem dedicated to solving the problems that startups face in the Sexual Health and Women’s Health Tech market.
Thesis: Amboy Street Ventures invests in the Seed and Series A rounds of Sexual Health & Women’s Health Technology startups that are progressing the industry in America and Europe.
Astarte Ventures
Location: New Jersey, United States
About: Astarte Ventures is an innovation and investment consulting firm, with expertise in women's health, pediatrics, health equity, AI, and gut health.
Thesis: Investing to improve the health and wellbeing of women and children.
Avestria Ventures
Location: San Francisco, California
About: Avestria Ventures is an investment firm that focuses on women's health and female-led life science and healthcare companies.
Thesis: We invest in women’s health and life science; it’s what we know best.
Everywhere Ventures
Location: New York, United States
About: Global pre-seed fund backed by 500 founders and operators.
Thesis: We invest $50-250k into pre-seed companies looking to raise between $500-$2M. We are happy to lead or partner with other investors. We are generalists at heart, but lean into three core areas: money, health, and work. We embrace first-time founders, and founders who may lack traction but have a distinct vision for a world that may not exist…yet.
Emmeline Ventures
Location: Los Angeles, CA
About: Emmeline Ventures is a female-founded early-stage fund investing in ambitious female founders building businesses that are helping women, in particular, manage their health, build their wealth, and live in a cleaner, safer world.
Thesis: We invest across women's health, financial services, and sustainability specifically where breakout technology and innovaton is helping women live & thrive.
Resources for Femtech Founders
Deloitte’s Femtech: Poised for growth
List of 150+ VC Funds Investing in Women's Health and Femtech
Crunchbase’s The femtech market map
Crunchbase’s The Next Frontier Of Femtech
Connect Investor Database list of VCs investing in Femtech
Start Your Next Round with Visible
We believe great outcomes happen when founders forge relationships with investors and potential investors. We created our Connect Investor Database to help you in the first step of this journey.
Instead of wasting time trying to figure out investor fit and profile for their given stage and industry, we created filters allowing you to find VC’s and accelerators who are looking to invest in companies like you. Check out all our investors here and filter as needed.
After learning more about them with the profile information and resources given you can reach out to them with a tailored email. To help craft that first email check out 5 Strategies for Cold Emailing Potential Investors.
After finding the right Investor you can create a personalized investor database with Visible. Combine qualified investors from Visible Connect with your own investor lists to share targeted Updates, decks, and dashboards. Start your free trial here.
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Fundraising
Investor Agreement Template for Startup Founders
Navigating the complexities of investor agreements is crucial for startup founders aiming to secure crucial funding while protecting their interests. This article will guide you through the essentials of crafting a solid investor agreement, highlighting key components like investment terms, company valuation, and exit strategies. You'll learn not only what makes up an investor agreement but also how to tailor one to fit your startup's unique needs, ensuring a clear path to successful investor relationships.
What Is an Investor Agreement?
An investor agreement is a legal contract between an investor and a company that outlines the terms of the investment. It specifies the roles, expectations, and obligations of both parties, ensuring that the investor's financial contributions are protected and that the company uses the funds as agreed upon. There are several types of investor agreements commonly used in business, each tailored to different investment scenarios:
Stock Purchase Agreement: This type of agreement is used when investors purchase shares directly from the company, giving them ownership according to the percentage of stock acquired.
Convertible Note Agreement: Often used in early-stage startups, this agreement allows the investment to initially be a loan that converts into equity, usually after a subsequent financing round or under certain conditions outlined in the agreement.
Simple Agreement for Future Equity (SAFE): Popular among startups for its simplicity and flexibility, a SAFE grants investors the right to convert their investment into equity at a later date, typically during a future funding round.
Restricted Stock Agreement: This agreement governs the issuance of shares that are subject to certain restrictions, typically vesting over time and providing that shares must be sold back to the company under certain conditions.
Debt Agreement: When startups prefer not to give up equity, they might opt for debt agreements where the investor lends money to the business, to be repaid with interest by a specified date.
Each type of agreement has its nuances and must be chosen carefully based on the company’s specific needs and the investor's expectations. It’s crucial for founders to understand these distinctions to choose the most appropriate form of agreement for their circumstances.
Key Components of an Investor Agreement Template
When structuring an investor agreement, it's essential to include comprehensive and detailed sections that address every aspect of the investment relationship. This clarity not only safeguards both parties' interests but also ensures smooth cooperation throughout the duration of the agreement. Below, we delve into the key components that should be part of any investor agreement template, each playing a crucial role in fostering a transparent and effective partnership.
Related resource: A Complete Guide on Founders Agreements
1. Preliminary Information
The foundation of any investor agreement begins with the preliminary information, which includes all the basic and identifying details such as the names, addresses, and legal statuses of the parties involved, as well as the date of the agreement. This section sets the legal context for the agreement and acts as a reference point for all parties involved, ensuring there is no ambiguity about who is bound by the terms of the document.
2. Investment Details
Specifying the investment details is critical. This includes the amount of investment, the form it will take (whether cash, assets, or services), and any conditions or milestones that must be met before the investment is realized. Clear articulation of these details prevents misunderstandings and sets clear expectations for the deployment of the investment, which is vital for both parties’ financial planning and accountability.
3. Company Valuation and Capital Structure
It's important to clearly outline how the company is valued and how its capital structure will be affected post-investment. This information sets the stage for determining ownership percentages and the distribution of equity. Transparency in this area reassures investors about the basis of their investment valuation and aligns all parties’ expectations regarding their stakes.
4. Roles and Responsibilities
Defining the specific roles and responsibilities of both the investor and the startup is crucial for maintaining clear expectations and accountability. This section should detail the commitments of each party, including any operational roles the investor might assume, and their involvement in decision-making processes. Clarity here ensures smooth day-to-day operations and helps prevent conflicts.
5. Terms of Investment
The terms of investment outline the specifics of the financial relationship, such as the rights to dividends, conversion rights, and voting rights. This section is fundamental as it delineates how profits and losses are distributed, how and when investments might be converted into equity, and how investors can influence company decisions through their votes.
6. Governance and Voting Rights
Governance structures and voting rights are essential for outlining how decisions are made within the company, who gets to vote, and what issues require a vote. This framework is key to maintaining order and clarity in the company's decision-making processes, particularly in scenarios involving multiple investors with varying stakes.
7. Exit Strategies
Planning for future changes in ownership or the potential exit from the company is crucial. This part of the agreement might include buyback rights, rights of first refusal in case of sale, and other mechanisms that allow for a smooth transition or exit. Having these strategies predefined helps manage expectations and reduces potential conflicts during critical transitions.
8. Confidentiality and Non-Disclosure
To protect the sensitive information of both the startup and the investor, confidentiality and non-disclosure clauses are critical. These provisions help build trust, protect trade secrets, and ensure that strategic information does not fall into competitors' hands.
9. Dispute Resolution
Finally, having a predetermined method for resolving disputes is crucial for handling disagreements efficiently and fairly. This section should specify whether disputes will be handled through mediation, arbitration, or court proceedings, and outline the steps each party should follow in the event of a disagreement.
Related resource: What Should be in a Startup’s Data Room?
How Do You Write an Investor Agreement?
Drafting an investor agreement is a critical step for any startup engaging with investors. This document not only formalizes the relationship between a company and its investors but also ensures that both parties are clear on the terms of the investment. Below, we detail the essential steps involved in creating a robust investor agreement that secures interests and fosters a positive business relationship.
Gathering Information and Structuring the Agreement
The first step in drafting an investor agreement is to collect all necessary information about the investment and the parties involved. This includes details about the investment amount, the structure of the investment (e.g., equity, debt), and the specific roles and obligations of each party. Accurate and comprehensive information is crucial as it forms the basis of the agreement, ensuring that all terms are based on a clear understanding of the investment and the expectations of both parties. This foundational step prevents future misunderstandings and lays the groundwork for a solid legal agreement.
Involving the Right Parties
It is essential to identify and involve all relevant parties in the agreement process. This includes not only the investors and company founders but also may include lawyers, accountants, and other stakeholders who have a vested interest in the transaction. Ensuring that all parties are appropriately represented and that their roles and expectations are clearly defined from the outset is crucial. This clarity helps in avoiding conflicts later and ensures that the agreement reflects the interests and responsibilities of everyone involved.
Drafting Key Clauses
The heart of the investor agreement lies in its clauses, which detail the terms of the investment, rights, and obligations of the involved parties. Key clauses include those related to the amount and structure of the investment, conditions for funding, management and use of the investment, investor rights, and any specific covenants related to company governance. Each clause must be drafted with clarity and precision to avoid ambiguity and ensure that the terms are enforceable. Legal expertise is often required in this phase to ensure that the clauses are legally sound and adequately reflect the agreed-upon terms.
Negotiation and Finalization
Once a draft of the investor agreement is prepared, the negotiation phase begins. During this stage, both parties review the draft, suggest modifications, and discuss any concerns they might have with the proposed terms. This phase is crucial as it allows both sides to refine the agreement to better meet their needs and to ensure mutual understanding and satisfaction with the terms. After negotiations are completed, the final agreement is prepared for signing. It is advisable for both parties to have legal counsel review the final document to ensure that it is comprehensive and legally binding.
Related resource: The Startup's Handbook to SAFE: Simplifying Future Equity Agreements
Build Strong Investor Connections with Visible
Crafting a solid investor agreement is key to protecting the interests of both the startup and its investors. Establishing clear terms and open lines of communication from the outset can significantly enhance these critical business relationships.
To manage and enhance investor relations with ease and efficiency, try Visible. By using Visible, you can streamline investor communications, track important metrics, and report progress efficiently, keeping your investors engaged and informed. Ready to take your investor relations to the next level?
Try Visible free for 14 days and start strengthening your investor connections.
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Fundraising
Understanding The 4 Types of Crowdfunding
Crowdfunding has revolutionized the way startups and social initiatives gather the necessary funds to bring their ideas to life. This article will explore the intricacies of crowdfunding, delving into its various types and the unique benefits and challenges they present. Whether you're a founder looking to kickstart your project or simply curious about how crowdfunding could play a role in your financial strategy, read on to discover the ins and outs of this dynamic funding mechanism.
What Is Crowdfunding, and Why Is It Important?
Crowdfunding is a method of raising capital through the collective effort of friends, family, customers, and individual investors. This approach taps into the collective efforts of a large pool of individuals—primarily online via social media and crowdfunding platforms—and leverages their networks for greater reach and exposure. Crowdfunding is vital not only as a tool for gathering financial resources but also for validating a product or service in the market, engaging with customers, and building community support.
Three of the most popular crowdfunding platforms include:
Kickstarter- The platform operates on an all-or-nothing funding model, which means that project creators only receive funds if their campaign reaches its predetermined funding goal. This model encourages creators and founders to set realistic goals and actively promote their projects to ensure success.
Indiegogo- Known for its flexibility, it supports a wide range of campaigns from tech innovations to artistic endeavors. The platform is distinct for allowing both fixed and flexible funding goals, making it a versatile choice for project creators who may still benefit from partial funding if they do not meet their full target.
Patreon- Patreon stands out among crowdfunding platforms because it caters to creators seeking continuous funding rather than one-time project support. This makes it particularly popular with individuals involved in ongoing creative endeavors such as musicians, YouTubers, podcasters, and filmmakers.
Related resource: How to Raise Crowdfunding with Cheryl Campos of Republic
The Pros and Cons of Crowdfunding
Crowdfunding offers unique opportunities and benefits for startups and projects, but it also comes with its set of challenges. In the next section, we will delve into the pros and cons of crowdfunding, providing a balanced perspective that will help founders understand what to expect and how to prepare for a successful campaign.
Pros of Crowdfunding
Pre-Launch Interest and Momentum: Crowdfunding allows founders to generate buzz and interest in a product or service before it officially launches. This pre-launch momentum can be crucial in establishing a brand and ensuring a successful market entry.
Market Validation: Crowdfunding campaigns allow investors to gauge customer interest and validate the market demand for a product or service before it fully hits the market. This can reduce the financial risks associated with launching new and untested products.
Risk Reduction through Pre-Sales: By using crowdfunding platforms to pre-sell products, founders can reduce financial risks associated with production and inventory. This approach ensures that there is a market demand before significant investments are made.
Marketing and Publicity: Crowdfunding campaigns can serve as powerful marketing tools, providing significant media exposure and public attention that can continue to benefit the project long after the campaign has ended.
Direct Customer Feedback: Crowdfunding offers a unique opportunity for founders to receive direct feedback from early adopters. This feedback can be invaluable for making adjustments to the product or service before it hits the broader market.
Building a Loyal Community: Crowdfunding not only raises funds but also helps in building a community of supporters who are emotionally and financially invested in the success of the project. This community can become a vital asset for future promotions and continued business growth.
Access to Capital: Crowdfunding provides a platform to raise significant amounts of money without the need for traditional financial intermediaries such as banks or venture capital firms. This can be especially useful for startups and small businesses that may not have access to traditional funding sources.
Cons of Crowdfunding
High Competition: The popularity of crowdfunding platforms means that numerous projects are vying for the same pool of potential backers. Standing out among the crowd requires a compelling story and effective marketing strategies, which can be challenging and resource-intensive.
Fulfillment Pressures: Successfully funded projects face the pressure of fulfilling backers' rewards and expectations. This can be particularly challenging if the campaign goes viral and the number of backers exceeds initial forecasts, complicating logistics and potentially increasing costs.
All-or-nothing Funding Models: Many crowdfunding platforms operate on an all-or-nothing funding model, where you must reach your funding goal to receive any money. Falling short means no funding at all, which can be a significant risk if you've already invested in campaign marketing and product development.
Public Exposure of Ideas: When you pitch a project on a crowdfunding platform, you expose your business idea or concept to the public, which includes potential competitors. This can lead to issues if the intellectual property is not fully protected or if the concept is easily replicable.
Related resource: Pros and Cons of Crowdfunding for Your Startup
The 4 Different Types of Crowdfunding
As you explore the world of crowdfunding, it's essential to understand the different types that are available. Each type offers unique advantages and fits different kinds of projects and goals. Below, we delve into the four primary types of crowdfunding: donation-based, equity-based, rewards-based, and debt-based. Choosing the right one can be critical to your campaign’s success.
Related resource: 6 Types of Investors Startup Founders Need to Know About
1) Donation-Based Crowdfunding
Donation-based crowdfunding is exactly what it sounds like – backers donate money without expecting anything in return. This model is primarily used for charitable causes or community projects where the reward is the satisfaction of contributing to a good cause.
When to Use This Method of Crowdfunding
This method is ideal for non-profit organizations, social causes, or community projects where monetary return isn't an expectation. It's particularly effective when the audience is motivated by philanthropy rather than a tangible return.
2) Equity-Based Crowdfunding
Equity-based crowdfunding involves offering a stake in your company in exchange for capital. This means investors receive shares of your business and become partial owners. It’s a way to raise significant funds while distributing the financial risk among a group of investors.
When to Use This Method of Crowdfunding
Use equity-based crowdfunding when you need substantial capital and are comfortable sharing ownership of your company with investors. It is suitable for startups that expect to grow and generate significant revenue, making the equity stake potentially valuable.
3) Rewards-Based Crowdfunding
Rewards-based crowdfunding allows backers to contribute in exchange for tangible rewards, which can vary from the product itself to other unique perks. This type is popular among creative projects and startups that wish to offer their product as a pre-sale.
When to Use This Method of Crowdfunding
This method works best for consumer-focused projects where you can offer your product as a reward to backers. It's suitable for validating product demand before mass production and engaging with your customers directly.
4) Debt-Based Crowdfunding
Also known as peer-to-peer (P2P) lending, debt-based crowdfunding allows individuals to lend money to a project or business with the expectation of getting their money back with interest. It mirrors traditional loans but from multiple lenders at potentially more favorable terms.
When to Use This Method of Crowdfunding
Debt-based crowdfunding is appropriate for founders who need traditional loan conditions but prefer a broader base of lenders to minimize risk. It is also beneficial when founders can ensure a steady revenue stream to manage repayments.
Crowdfunding vs Traditional Fundraising: What are the Differences?
Crowdfunding and traditional fundraising serve the same primary purpose—raising money—but differ significantly in their approach and execution. Traditional fundraising typically involves seeking substantial sums from a few donors, such as angel investors, venture capitalists, or banks, and often requires a detailed business plan, credit checks, or proven business history. It can be a lengthy process with a lot of personal interaction and persuasion.
In contrast, crowdfunding is usually conducted online and aims to gather smaller amounts of money from a large number of people. This method leverages the power of social networks and is accessible to anyone with an internet connection. Crowdfunding campaigns provide immediate feedback and market validation, as they allow the entrepreneur to gauge interest in a product or concept before fully committing to production or scaling. Moreover, crowdfunding can offer more than just financial benefits; it can also provide publicity, community engagement, and customer feedback.
These fundamental differences make each method suitable for different types of projects and funding needs, with crowdfunding often being more accessible and engaging, while traditional fundraising can offer more significant amounts of capital and potentially fewer stakeholders to manage.
Related resource: How to Secure Financing With a Bulletproof Startup Fundraising Strategy
Fundraise the Right Way With the Help of Visible
Crowdfunding not only helps raise the necessary funds for your venture but also connects you with a community that can offer support and feedback.
If you are also interested in finding traditional investors and accelerators check out our Connect Investor Database. Instead of wasting time trying to figure out investor fit and profile for their given stage and industry, we created filters allowing you to find VCs and accelerators who are looking to invest in companies like you. Check out all our investors here and filter as needed.
As you embark on your fundraising journey, consider leveraging platforms like Visible to streamline your efforts.
After finding the right Investor you can create a personalized investor database with Visible. Combine qualified investors from Visible Connect with your own investor lists to share targeted Updates, decks, and dashboards. Start your free trial here.
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Fundraising
FinTech Venture Capital Investors to Know in 2024
The last few years have been interesting for Fintech as we've seen both startups and established companies start to rethink the financial industry in order to adapt to a world that was rapidly changing thanks to crypto, blockchain, and the pandemic.
Related resource: 14 FinTech Startups Shaping the Future of Finance
Relevant trends from the past few years include:
A surge in investments and interest in crypto and blockchain
Financial services and products broadened as more partnerships were created thanks to embedded banking
A shift from legacy infrastructures to core banking systems
Fintech’s reach expanded to regions of the world that needed it most due to broken financial systems such as Southeast Asia, Africa, and Latin America
There was a focus on innovation and global opportunities from VC’s and companies who are looking to take advantage of the increasing need for change within the Fintech industry
Recent Investment highlights: (source)
“Record number of fintech deals drives total investment to $210 billion in 2021”
“Blockbuster year for crypto and blockchain, with $30 billion in investment globally”
“‘Buy now, pay later’ space seeing large deals across jurisdictions”
“Increasing focus on core banking replacements”
“PE investment in fintech space more than doubles previous high”
What we can take away from this is that fintech is emerging to be the leading sector within investments and 2022 will be a year of increased optimism and interest not only within Fintech but subsectors (such as Defi), which are well positioned to keep evolving and make a huge impact on the world and the financial system as we know it. There is a huge need for modernizing core banking platforms and even replacing banking systems- making it the best time to launch a fintech startup as well as invest in one.
TechCrunch conducted interviews with some of the top VCs within the fintech space and said the two biggest topics that are spiking the interest of investors are crypto and Latin America investments. Others have said that there is also an increasing interest in B2B payments, BNPL (buy now, pay later platforms), embedded services (embedded lending, embedded insurance and embedded capital markets businesses- source).
KPMG’s top predictions for the fintech market globally in 2022: (Source)
A growing number of banks will offer embedded solutions
There will be increased regulatory scrutiny of embedded finance offerings
Fintechs will focus on branding themselves as data organizations
ESG-focused fintechs will have a big growth trajectory
There will be a stronger focus on dealmaking in underdeveloped regions.
Unicorn status will lose some of its luster in developed markets, but remain key in emerging ones
Related Resource: 15 Cybersecurity VCs You Should Know
Related Resource: 14 Gaming and Esports Investors You Should Know
Visible looks to help connect founders with investors all over the world. Below, we highlight 10 of our favorite FinTech venture capitalists. Search through these investors and 13,000+ more on Visible’s Connect platform.
FinTech Collective
Location: New York, New York, United States
About: The firm is currently investing out of its third fund, a $200m early-stage fund with a focus on capital markets, wealth and asset management, banking-lending-payments, and insurance. The firm actively invests in decentralized finance (“defi”) opportunities across these segments.
Thesis: Our ambition is to create the future of financial services, bringing transparency and choice to developed markets and financial connectivity and socio-economic mobility to developing markets.
Investment Stages: Seed, Series A, Series B
Recent Investments:
Qlub
NYDIG
Anyfin
Accel
Location: Palo Alto, California, United States
About: Accel is a leading venture capital firm that invests in people and their companies from the earliest days through all phases of private company growth. Atlassian, Braintree, Cloudera, CrowdStrike, DJI, Dropbox, Dropcam, Etsy, Facebook, Flipkart, FreshWorks, Jet, Qualtrics, Slack, Spotify, Supercell, UiPath and Vox Media are among the companies the firm has backed over the past 35 years.
Thesis: We partner with exceptional founders with unique insights, from inception through all phases of growth.
Investment Stages: Pre-Seed, Seed, Series A, Series B, Series C, Growth
Recent Investments:
NiYO Solutions
Coast
Genesis Global
Anthemis Group
Location: New York and London
About: Our deep understanding of markets and models, passion for emerging technology and values inspire everything we do. By creating fertile ground for a diverse group of startups, investors, entrepreneurs, institutions, academics, and visionaries to converge, we believe we can solve the financial services world’s most pressing challenges faster, better and for the benefit of all.
Thesis: Invests in startups that leverage technology to significantly impact the financial system.
Investment Stages: Pre-Seed, Seed, Series A, Series B, Series C, Growth, Early Stage, Startup Studio (Lab)
Recent Investments:
Atom Bank
tide
Flat.mx
Related Resource: 15 Venture Capital Firms in London Fueling Startup Growth
RRE Ventures
Location: New York, New York, United States
About: RRE Ventures is a New York-based venture capital firm that offers early-stage funding to software, internet, and communications companies.
Investment Stages: Series A, Series B
Recent Investments:
Venmo
Bol
Capitalize
Greycroft
Location: New York, New York, United States
About: Greycroft is a venture capital firm that focuses on technology start-ups and investments in the Internet and mobile markets.
Investment Stages: Pre-Seed, Seed, Series A, Series B, Growth
Recent Investments:
Procurated
CyberFortress
Kandji
Insight Partners
Location: New York, New York, United States
About: Insight Partners is the most trusted scale-up firm in the software industry.
Thesis: We support companies in good times, as well as challenging ones.
Investment Stages: Pre-Seed, Seed, Series A, Series B, Series C, Growth
Recent Investments:
ncino
checkout.com
coast
QED Investors
Location: Alexandria, Virginia, United States
About: QED Investors actively supports high-growth businesses that use the information to compete — and win.
Investment Stages: Seed, Series A, Series B
Recent Investments:
zibo
bitso
Index Ventures
Location: San Francisco, California, United States
About: They are an international venture capital firm based in London, San Francisco and Geneva
Thesis: Other firms invest in deals, Index invests in people. A deal is transactional. Relationships endure, and ours are based on curiosity, thoughtfulness, and deep conviction.
Investment Stages: Seed, Series A, Series B, Series C, Growth
Recent Investments:
CoverWallet
Savvy Wealth
Fireblocks
Related Resource: The 11 Best Venture Capitals in San Francisco
Better Tomorrow Ventures
Location: San Francisco, CA
About: BTV is an early stage fintech focused fund that leads rounds in pre-seed and seed-stage fintech companies globally. We take a pretty broad view on fintech, and many vertical SaaS and marketplace businesses fit in our purview too.
Thesis: We invest for a better future (hence the name); financial technology is a great way to improve people’s lives.
Investment Stages: Pre-seed, Seed
Recent Investments:
Brick
CreditBook
Clubbi
Bain Capital Ventures
Location: Boston, Massachusetts, United States
About: Bain Capital Ventures is a global private equity firm with over $17 billion of assets under management. Since 1984, the firm has invested in over 200 companies, with such notable successes as Aspect Development, DoubleClick, Gartner Group, and Netfish Technologies. Bain Capital Ventures manages a $250 million fund. Bain Capital Ventures partners with exceptional management teams to help early stage companies become long-term leaders in their markets.
Thesis: We partner with disruptive founders to accelerate their ideas to market.
Investment Stages: Pre-Seed, Seed, Series A, Series B, Growth
Recent Investments:
Orum
Material Bank
Reonomy
American Express Ventures
Location: Palo Alto, California, United States
About: Seeks to invest in innovative startups in order to enhance the company’s core capabilities and accelerate their efforts in consumer commerce and B2B services.
Investment Stages: Seed, Series A, Series B, Series C, Growth
Recent Investments:
Finmark
Pinwheel
Statespace
SignalFire
Location: San Francisco, California, United States
About: SignalFire is a venture capital firm that invests in seed-stage companies and breakout companies.
Investment Stages: Seed, Series A
Recent Investments:
Tradeswell
PlanetScale
Ro
Torch Capital
Location: New York, New York, United States
About: Torch Capital is a brand-focused investment firm built to shepherd the next generation of industry changing mission driven consumer companies. We invest in consumer platforms, products and services from healthcare, fintech, and food & beverage, to digital media, e-commerce and marketplaces.
Investment Stages: Pre-Seed, Seed, Series A
Recent Investments:
Embed
Lili
Little Otter
Mouro Capital
Location: London, England
About: Mouro Capital is a venture capital firm that backs entrepreneurs and start-ups who are shaping the future of financial services. With $400m AuM and the support of Banco Santander, the fund targets early to growth stage investment opportunities across Europe, North America and Latin America. The fund brings fintech expertise, a global network and a track-record of successful investments and market recognition from our core investment team to scaling start-ups.
Recent Investments:
a55
Digital Asset Holdings
Curve
Canaan Partners
Location: Westport, Connecticut, United States
About: Canaan Partners invests more than money in a company—they invest their time, experience, knowledge, connections and team-oriented approach. They place tremendous value on creating working partnerships with entrepreneurs and management teams who have the character and the drive to succeed. Prominent among Canaan’s resources is the breadth of operating, managerial and financial experience.
Investment Stages: Seed, Series A, Series B, Growth
Recent Investments:
Kickpay
CircleUp
Italic
Related Resource: Atlanta’s Hottest Venture Capital Firms: Our Top 9 Picks
Additional FinTech Resources
Downloadable KPMG’s Pulse of Fintech H2’21
Download this edition for:
Global and regional analysis with key investment data and insights
Top fintech trends for 2022 and beyond
Interviews with Quantexa and Thought MachineFintech segment insights for a deeper dive into payments, insurtech, regtech, Wealthtech, cybersecurity, blockchain and cryptocurrency
Spotlight articles on Emerging Markets: LATAM and Africa.
Other Investor Lists
15 Venture Capital Firms Investing in VR
10 Gaming and Esports Investors You Should Know
10 Venture Capitalists Investing in Cannabis
60+ Active Seed Stage SaaS Investors & Fundraising Tips
23 Top VC Investors Actively Funding SaaS Startups
Exploring VCs by Check Size
10 VCs Investing In Food & Bev Startups
10 Blockchain Investors Founders Should Know
10 VC Firms Investing in Web3 Companies
15 Direct to Consumer (D2C) VC Investors You Need to Know
Start Your Next Round with Visible
We believe great outcomes happen when founders forge relationships with investors and potential investors. We created our Connect Investor Database to help you in the first step of this journey.
Instead of wasting time trying to figure out investor fit and profile for their given stage and industry, we created filters allowing you to find VC’s and accelerators who are looking to invest in companies like you. Check out all our FinTech investors here.
After learning more about them with the profile information and resources given you can reach out to them with a tailored email. To help craft that first email check out 5 Strategies for Cold Emailing Potential Investors.
After finding the right Investor you can create a personalized investor database with Visible. Combine qualified investors from Visible Connect with your own investor lists to share targeted Updates, decks, and dashboards. Start your free trial here.
founders
Fundraising
Berlin Venture Capital Investors to Know in 2024
Over the last decade, Berlin has transformed into the Silicon Valley of Germany and become a hotspot for founders and venture capital, with over 500 startups and around 40,000 business registrations per year. The city is the perfect environment for entrepreneurs to start and scale their businesses. Favorable conditions include highly qualified international talent, lots of networking opportunities and a vibrant social scene, a high standard of living at a relatively low cost, and a very active VC scene. Some of the well-established startups that call Berlin home are Soundcloud, Zalando, GetYourGuide, Delivery Hero, HelloFresh, N26, Tier Mobility, and Grover- just to name a few.
Alternate funding opportunities, accelerators, and startup communities that are specific to Berlin
Berlin government grants
IBB
BSS
Accelerators and Incubators
entrepreneur first
Antler
SIB (Startup Incubator Berlin)
Expedite Ventures: Expedite Ventures is a Business Angel group of CTOs and CPOs. “We support tech founders hands-on with our know-how and capital. We’re nerds at heart, all passionate founders ourselves – some of us are still running startups. We have decades of collective experience in building and scaling technology companies. We offer a true hands-on mentoring approach, which we think is at least as important as capital. That’s why we provide both – plus a perspective that typical business-oriented angels and most VCs simply can’t provide.”
Startup Scholorships
IHK Berlin: Set-up subsidy for those unemployed
Bayer G4A– partners with healthcare startups and technology companies that are developing innovative solutions in healthcare.
Encourage Ventures: The investor network for female founders
Notable Angels include co-founders and former MDs from Blinkist, N26, and mysugr.
Innovators Room– helps founders, investors, corporate innovators as well as rising talent to network and advance their career together, through our Slack community, TechJobs newsletter and various online and offline learning events.
Factory Berlin– provides members a curated network of entrepreneurs, professionals and creators, exclusive networking and knowledge-sharing events and programs, and access to our two locations in Berlin.
WLOUNGE– a connector, change-maker, door opener, inspiration, access, enabler, and empowerment, headquartered in Berlin. A key player in the German Tech ecosystem and globally. We are global, founded to support diversity and women in business and technology. Each year we provide innovative services, workshops, round tables, The Tech Awards Gala, delegations, conferences, investment scouting, female founders program, leadership and fundraising, Growth opportunities, matchmaking activities between startups and corporates.
BerChain– A non-profit association based in Berlin, connecting and promoting the Berlin Blockchain community from throughout the Blockchain ecosystem and beyond, positioning Berlin as the global Blockchain Capital.
Hubraum-hubraum is Deutsche Telekom’s tech incubator. By bringing early-stage startups and the leading European telco together, hubraum sparks innovation transfer and creates business opportunities for both sides. Since 2012, hubraum has been collaborating with the digital ecosystem out of its campuses in Berlin, Krakow and Tel Aviv.
EXIST– EXIST aims at improving the entrepreneurial environment at universities and research institutes.
FoodLabs– FoodLabs is a venture studio and investor for startups that shape the future of nutrition, sustainability and health.
Berlin VC Investment Within the Last 10 Years:
Events
StartUpNight– This will be the 10th year of the event which includes stage programs, workshop sessions, and pitch opportunities, experts from venture capital firms, corporates, and funding institutions will give founders the opportunity to present themselves and their innovations and get answers to their questions on important topics such as funding.
Hub.berlin– The business festival for digital movers and makers.
TOA– Tech Open Air
Resources
Berlin Startup Report (only in German)
Berlin Startup Resources
Berlin Startup Map
Top 10 Government Grants
Guide to Berlin startup funding
German Startup News
EU Startups
Business Insider: Grunderszene
Startup-Insider
VCs Investing in Berlin Startups
Lakestar
Location: Zürich, Zurich, Switzerland
About: Lakestar invests with a long term view across all stages from Seed to Growth. We have been privileged to partner with some of the world’s best tech entrepreneurs. Their stories are inspirational and make us proud.
Thesis: Our vision is of a world of technology-enabled, progressive societies, born of the very best ideas that founders can dream up and that we can help realise.
Investment Stages: Seed, Early, Growth
Recent Investments:
1047 Games
AccuRx
Aetion
Related Resource: 8 Active Venture Capital Firms in Germany
June Fund
Location: Berlin, Germany
About: June is a global technology investor, backed by leading industrial minds. June invests into new paradigms across all stages – from networks to infrastructures to open software platforms. We take a macro-thematic view on technological progress, new economic models and value creation. June’s breadth of experience, intellectual curiosity and long-term thinking have attracted exceptional teams and individuals.
Investment Stages: Pre-Seed, Seed, Series A, Series B, Series C, Growth
Recent Investments:
Reebelo
Statespace
SimScale
HV Capital
Location: Berlin, Munich, Germany
About: Founded in 2000, they are one of the leading independent European early stage funds.
Investment Stages: Pre-Seed, Seed, Series A
Recent Investments:
Storyblok
KoRo
Flip
Target Global
Location: Berlin, Berlin, Germany
About: We’re an international VC headquartered in Berlin with €800m+ AuM, focusing on fast-growing tech companies across their lifecycles. With offices in London, Tel Aviv, & Barcelona, we connect the key European startup ecosystems. We help exceptional entrepreneurs to build market leaders.
Investment Stages: Pre-Seed, Seed, Series A
Recent Investments:
Masterschool
Reverence
Casava
Acton Capital
Location: Munich, Bayern, Germany
About: Acton Capital Partners is a specialist investor in internet- and mobile-based, consumer-oriented businesses. Having managed more than 30 investments since 1999 as the corporate venture capital business of Hubert Burda Media, the German family-owned global media company, the Acton team brings a wealth of expertise to the companies in which it invests, delivering superior capital returns.
Investment Stages: Series A, Series B
Recent Investments:
Convelio
Zenjob
Knix Wear
IBB
Location: Berlin, Germany
About: Investing in Berlin-based start-ups with a focus on Tech (e.g. Software & IT, Industrial Tech, Health Care) and other business model innovations (e.g. Digital Consumer and Media Businesses).
Thesis: IBB Ventures is for all those who make a difference and create a sustainable future. We invest public funds as venture capital and, together with Berlin startups, help to promote our capital as a business location. Our focus is on innovative ideas and ambitious founders. With our many years of experience we are at your side and help you to successfully implement your ideas.
Investment Stages: Seed, Series A
Recent Investments:
Blinkist
Babbel
The Female Company
Speedinvest
Location: Berlin, London, Munich, Paris, and Vienna, Austria
About: We have 40 investment pros in Berlin, London, Paris, Munich, Vienna, San Fran & an in-house team of 20 operational experts to support you from day one. We fund early-stage Fintech, Digital Health, Consumer Tech, Network Effects, Deep Tech & Industrial Tech. Send us your pitch!
Thesis: Speedinvest is a leading early-stage venture capital firm with more than €600M AuM and 40 investors based in Berlin, London, Munich, Paris, and Vienna. Our dedicated sector-focused teams are the first to fund Europe’s most innovative technology startups and our in-house operational experts are on-hand to offer founders ongoing support with growth, HR, US market expansion, and more. Wefox, Bitpanda, TIER Mobility, GoStudent, Wayflyer, CoachHub, Schüttflix, TourRadar, Adverity, and Twaice are among our portfolio of 250+ companies. Learn more at www.speedinvest.com.
Investment Stages: Pre-Seed, Seed, Series A
Recent Investments:
Bliq
Byrd
Kevin
Verve Ventures
Location: Zürich, Switzerland
About: Verve Ventures provides its pan-European network of selected private and institutional investors access to those top-tier investment opportunities. The company invests from EUR 500k to several million from Seed to Series B and beyond across Europe. Verve Ventures’ dedicated team helps startups with their most pressing needs such as hiring, client introductions and access to an expert network of high-profile individuals. To become part of Verve Ventures’ growing network of entrepreneurs and investors, visit verve.vc.
Thesis: Investing in technology and science-driven startups. Adding value through our exclusive network of investors.
Investment Stages: Seed, Series A, Series B
Recent Investments:
Soter Analytics
Byrd
helios
Cherry Ventures
Location: Berlin, Germany
About: Cherry Ventures is an early-stage venture capital firm led by a team of entrepreneurs with experience building fast-scaling companies such as Zalando and Spotify. The firm backs Europe’s boldest founders, usually as their first institutional investor, and supports them in everything from their go-to-market strategy and the scaling of their businesses. Cherry Ventures has previously invested in the seed stage of over 70 companies across Europe, including FlixBus, Auto1 Group, Flaschenpost, Infarm, Rows, Forto, SellerX, Juni, and Flink. Cherry Ventures is based in Berlin and invests across Europe with operations in London and Stockholm.
Thesis: Founders first and investors second.
Investment Stages: Pre-Seed, Seed
Recent Investments:
Klar
Cosuno
NUMA Group
EQT Ventures
Location: Stockholm, Stockholms Lan, Sweden
About: EQT Ventures is a sector agnostic, multi-stage VC fund, with just over €1.2 billion total capital raised. The fund’s team of former founders and operators from the likes of Spotify, Booking.com, Hotels.com and King have experienced the entrepreneurial journey firsthand and know how challenging it can be. They’re ready to support the next generation of entrepreneurs in Europe and the US with the expertise and advice needed to build global success stories.
Investment Stages: Seed, Series A, Series B, Series C
Recent Investments:
Moralis
Instabox
Nothing
BlueYard Capital
Location: Berlin, Germany
About: BlueYard invests in founders with transforming ideas that decentralize markets and empower humanity. Typically $1-3m as an initial investment; active around the world. Most active in crypto/web 3 (e.g. Protocol Labs, Filecoin, Open Zeppelin, Radicle), technologies that help us overcome our largest planetary challenges (e.g. Marvel Fusion, Meatable, Dance), frontier biology to help us live long and prosper (e.g. BitBio, Biofidelity) and vertical software un-bundling monopolies (e.g. Pitch, Wonder).
Thesis: BlueYard seeks to invest in founders with transforming ideas that decentralize markets.
Investment Stages: Pre-seed, Seed, Series A
Recent Investments:
Privy
Dance
FreedomFi
Expedite Ventures
Location: Berlin, Germany
About: Expedite Ventures is a Business Angel group of CTOs and CPOs. We support tech founders hands-on with our know-how and capital. We offer a true hands-on mentoring approach, which we think is at least as important as capital. That’s why we provide both – plus a perspective that typical business-oriented angels and most VCs simply can’t provide.
Investment Stages: Pre-seed, Seed
Recent Investments:
Superlist
widgetbok
supernova
Start Your Next Round with Visible
We believe great outcomes happen when founders forge relationships with investors and potential investors. We created our Connect Investor Database to help you in the first step of this journey.
Instead of wasting time trying to figure out investor fit and profile for their given stage and industry, we created filters allowing you to find VC’s and accelerators who are looking to invest in companies like you. Check out all our investors here and filter as needed.
After learning more about them with the profile information and resources given you can reach out to them with a tailored email. To help craft that first email check out 5 Strategies for Cold Emailing Potential Investors.
After finding the right Investor you can create a personalized investor database with Visible. Combine qualified investors from Visible Connect with your own investor lists to share targeted Updates, decks, and dashboards. Start your free trial here.
founders
Fundraising
The 11 Best Venture Capitals in San Francisco in 2024
At Visible, we typically compare a venture fundraise to a traditional B2B sales and marketing funnel.
At the top of the funnel, you are finding potential investors via cold outreach and warm introductions.
In the middle of the funnel, you are nurturing potential investors with meetings, pitch decks, updates, and other communications.
At the bottom of the funnel, you are working through due diligence and hopefully closing new investors.
Related Resource: The 12 Best VC Funds You Should Know About
Like sales, a healthy fundraising funnel starts by finding the right investors. This can be based on geography, check size, focus areas, etc. For founders looking for investors in the San Francisco area, check out our list below:
1. Accel
As put by their team, “Accel is a leading venture capital firm that invests in people and their companies from the earliest days through all phases of private company growth.”
Focus and industry: Accel is industry agnostic
Funding stage: Accel invests across many stages — from pre-seed to series B and beyond
Accel is synonymous with venture capital in San Francisco. Accel was founded in 1983 and has since funded 1,500+ companies. They have funds across the globe and invest in founders across many geographies, industries, and stages. Some of their most popular investments include:
Facebook
Slack
Spotify
Location: Palo Alto, CA
2. Greylock Partners
As put by their team, “At Greylock, our mission is to help realize rare potential. To do this well, we believe it’s essential to be trusted partners to entrepreneurs at every stage — from idea to IPO.
The entrepreneurs we back have the vision to build something huge that hasn’t existed before. They are paranoid about what could go wrong — but are obsessed with what can go right. They are mission-driven, intellectually honest and infinite learners. They have raw ambition, bravery, and grit. They don’t give up, ever. And they are unique in their ability to lead and inspire others to join their journey.”
Focus and industry: Greylock is focused on enterprise, consumer, and crypto software
Related Resource: FinTech Venture Capital Investors to Know
Funding stage: Greylock invest from pre-seed to series B and beyond
As put by their team, “We focus on enterprise, consumer, and crypto software at Seed and Series A, and also make new company investments in Series B and beyond. We support entrepreneurs throughout their journey from idea to IPO and onwards.” Some of their most popular investments include:
Airbnb
Facebook
Figma
Location: Menlo Park, CA
3. Menlo Ventures
As put by their team, “Genuinely, actively invested. Invested in your success, but also your struggles. Your questions, your concerns, your highs, your lows. We don’t just invest our dollars, we invest our dedication, our drive. Our tested advice and trusted support. That’s because, when we find an idea we believe in, we’re all engaged. When we’re in, we’re ALL IN.”
Focus and industry: Menlo Ventures focuses on the following industries:
Consumer
Cloud Infrastructure
Cybersecurity
Fintech
Healthcare
SaaS
Supply Chain and Automation
Related Resource: 15 Cybersecurity VCs You Should Know
Funding stage: Menlo Ventures across stages from inception to series B and beyond
As put by their team, “We are investors and company builders—we know what it takes to turn a budding idea into a scalable business. We work with early-stage founders to find product-market fit, develop go-to-market strategies, scale their organizations, and support them as they grow.” Some of their most popular investments include:
Affinity
Minted
Roku
Location: Menlo Park, CA
4. Spark Capital
As put by their team, “We are Spark Capital, investors in products we love by creators we admire, including Affirm, Carta, Cruise, Discord, Oculus, Plaid, Postmates, Slack, Twitter, and Wayfair. We know there are no playbooks or formulas for success and are here to help founders win their own way. We invest across all sectors and stages, and work out of San Francisco, Boston, and New York City.”
Focus and industry: Spark Capital invests across all industries
Funding stage: Spark Capital invests across all stages
Like many of the funds on this list, Spark Capital has been investing across all industries and all stages for decades. Some of their most popular investments include:
Twitter
Slack
Affirm
Location: San Francisco – Boston – New York
5. Bessemer Venture Partners
As put by their team, “Bessemer Venture Partners is the world’s most experienced early-stage venture capital firm. With a portfolio of more than 200 companies, Bessemer helps visionary entrepreneurs lay strong foundations to create companies that matter, and supports them through every stage of their growth.”
Focus and industry: BVP invests across many industries
Funding stage: BVP invests in early-stage companies
BVP has become a leader in early-stage investments. They focus on companies across the globe and have backed some of the most famous companies to date. Some of their most popular investments include:
LinkedIn
Shopify
Yelp
Location: San Francisco, CA
6. Altos Ventures
As put by their team, “Altos Ventures was founded in 1996, to exclusively address the needs of promising, young technology companies and entrepreneurs. Because of their focus on entrepreneurs – along with their network of co-investors, partners, and industry experts—they know how to build viable business models so companies can move on to the next stage of growth.”
Focus and industry: List the focus, industry, or types of companies this VC typically invests in.
Funding stage: Altos Ventures is focused on early-stage companies
Altos Ventures is a purpose-driven investment fund that is focused on the fundamentals. Some of their most popular investments include:
Bench
Outdoorsy
Roblox
Location: Menlo Park, CA
7. Andreessen Horowitz
As put by their team, “Andreessen Horowitz was established in June 2009 by entrepreneurs and engineers Marc Andreessen and Ben Horowitz, based on their vision for a new, modern VC firm designed to support today’s entrepreneurs. Andreessen and Horowitz have a track record of investing in, building and scaling highly successful businesses.”
Focus and industry: Andreessen Horowitz invests across many industries, including:
Bio + Health
Cultural Leadership
Consumer
Crypto
Enterprise
Fintech
Games
Related Resource: 15 Venture Capital Firms Investing in VR
Funding stage: Andreessen Horowitz invests across all stages.
As put by their team, “a16z is defined by respect for the entrepreneur and the company building process; we know what it’s like to be in the founder’s shoes. The firm is led by general partners, many of whom are former founders/operators, CEOs, or CTOs of successful technology companies, and who have domain expertise ranging from biology to crypto to distributed systems to security to marketplaces to financial services.” Some of their most popular investments include:
Affirm
Airbnb
Coinbase
Location: Menlo Park, CA
8. Expa
As put by their team, “Expa is where the best startups find support and funding to scale. Collectively, we’ve launched dozens of companies, supported 50+ founders, and reached hundreds of millions of users. Our community of builders includes the founders and leaders of Uber, Virgin Galactic, Twitter, Current, and more.”
Focus and industry: Expa invests across many industries
Funding stage: Expa focuses on early-stage investments
As put by their team, “Expa was created by Uber co-founder Garrett Camp to support the next generation of founders. The partners at Expa are builders and operators themselves, who can provide founders with practical advice in product design, branding, engineering, operations, and recruiting.” Some of their most popular investments include:
Aero
Drip
Radar
Location: San Francisco, CA
9. Benchmark Venture Capital
As put on their Visible Connect profile, “Benchmark Capital is focused on one, and only one, mission: to help talented entrepreneurs build great technology companies. That’s what drives them and everything they do – from how they organize their firm to their investment strategy.”
Focus and industry: Benchmark is focused on social, mobile, local, and cloud companies.
Funding stage: According to their Visible Connect profile, “Their investments range in size from as little as $100,000 to as much as $10 or $15 million. Typically, they invest $3 to $5 million initially and expect to invest $5 to $15 million over the life of a company.”
Benchmark has raised 6 funds that span 2 decades. Some of Benchmark’s most popular investments include:
Asana
Dropbox
Zillow
Location: San Francisco, CA
10. First Round Venture Capital
As put by their team, “We’re focused on being the world’s best partner for founders at the very first stages of company creation — so we’ve designed the firm to do just that. When you work with First Round, you get super active partners (most of whom are former founders themselves) working side-by-side with you on your biggest and smallest challenges.”
Focus and industry: First Round invests across all industries
Funding stage: First Round likes to be the first check in a company, regardless of stage. As put by their team, “Typically, our initial investment in a startup ranges from $1 million to $5 million, but we’ve gone higher and lower in some cases. Currently, our average initial investment is right around $3 million.”
Some of First Round’s most popular investments include:
Notion
The Black Tux
Uber
Location: San Francisco – New York – Philadelphia
11. Y Combinator
Y Combinator is synonymous with accelerators. As put by their team, “Y Combinator (YC) is a startup fund and program. Since 2005, YC has invested in nearly 3,000 companies including Airbnb, DoorDash, Stripe, Instacart, Dropbox, and Coinbase. The combined valuation of YC companies is over $300B. YC has programs and resources that support founders throughout the life of their company.”
Focus and industry: Y Combinator invests across all industries.
Funding stage: Y Combinator helps companies launch with a $500k check.
Since its inception in 2005, Y Combinator has been accredited for helping launch, fund, and grow some of the most prolific startups. Some of their most popular investments include:
Airbnb
DoorDash
Stripe
Location: San Francisco, CA
Find top investors in the Bay Area with Visible
As we mentioned at the beginning of this post, a venture fundraise often mirrors a traditional B2B sales and marketing funnel.
Just as a sales and marketing team has dedicated tools, shouldn’t a founder that is managing their investors and fundraising efforts? Use Visible to manage every part of your fundraising funnel with investor updates, fundraising pipelines, pitch deck sharing, and data rooms.
Raise capital, update investors, and engage your team from a single platform. Try Visible free for 14 days.
founders
Fundraising
A Founder’s Guide to Accelerators Funding Startups in 2024
As an ambitious founder, joining an accelerator program can be a major stepping stone to startup success. By joining an accelerator, startups can fast-track their progress, accessing resources and networks that would otherwise take years to build.
The impact of such programs is evident when we look at companies like Dropbox, Airbnb, and Reddit, each of which gained invaluable benefits from accelerator experiences with Y Combinator. By turbocharging their development, these companies leaped ahead, becoming industry leaders and household names.
In this article, we’ll delve deeper into the world of accelerators, helping you understand why such a program could be a game-changer for your startup and some startup Accelerators to consider from our Connect investment database.
Benefits of Joining an Accelerator
One of the most significant advantages of accelerator programs lies in the mentorship they provide. Founders are often paired with experienced entrepreneurs, investors, or industry experts who guide them through their growth trajectory. These mentors provide a wealth of industry insights, and strategic guidance that can open doors to significant networking opportunities.
Related resource: Should Your Startup Have Mentors? Key Benefits and Considerations
Alongside this, accelerators usually offer a certain amount of funding in exchange for equity. This early-stage capital injection can be crucial for startups to build their prototype, hire talent, or scale their operations. It also opens up a vast network of fellow founders, investors, and industry professionals, creating an ecosystem of collaboration and learning.
Additionally, founders gain access to resources and tools, such as workspaces, training sessions, and state-of-the-art technology. Accelerators ensure startups have what they need to succeed in today’s competitive market. These cumulative benefits can often be the catalyst that propels a young startup from stagnation to rapid growth.
Related resource: The Top 16 Accelerators Powering Startup Growth
“We surveyed 43 founders who attended these accelerators to better understand their biggest takeaways from each respective program. Founders highlighted many aspects of the accelerator programs, including access to quality advisers, mentors, and corporations, the strength of the program’s network, and the benefits of an environment that encourages deep thinking and iteration. They also appreciated education on fundraising and warm connections to investors and potential customers. On the other hand, founders expressed the need for more education on running a company.” – PitchBook Newsletter
Related resource: 12 Online Startup Communities for Founders
Selection Criteria and Application Process
Accelerators receive a plethora of applications, but only a handful make the cut. Therefore, understanding the selection criteria is crucial. Generally, these programs look for startups with high business potential, meaning your idea should solve a significant problem and have a sizable market. Team composition also plays a vital role; accelerators prefer diverse, dedicated, and capable teams that can withstand the rigors of startup life. Scalability is another crucial factor; your business should have the potential to grow rapidly and provide a return on investment.
As for the application process, it usually begins with an online application where you’ll provide information about your startup and why you believe it would benefit from the program. You’ll likely need to submit a pitch deck – a brief presentation outlining your business plan. If your application is shortlisted, the next stage is usually an interview with the accelerator’s selection committee. This is your opportunity to demonstrate your passion, knowledge, and commitment.
Related resource: Our Teaser Pitch Deck Template
Startup Growth Metrics and Benchmarks
For startups looking to attract accelerator interest and subsequent investment, monitoring and presenting the right growth metrics is critical. Key metrics include Monthly Recurring Revenue (MRR) and Year-over-Year (YoY) growth to showcase revenue consistency and scalability. Customer Acquisition Cost (CAC) and Lifetime Value (LTV) ratio provide insights into the efficiency of marketing strategies and customer value. Engagement metrics, like Daily Active Users (DAU) or Monthly Active Users (MAU), highlight product stickiness and user adoption. Tracking these metrics allows startups to demonstrate growth potential and operational efficiency to potential accelerators and investors.
Equity vs. Non-equity Programs
For founders, choosing between equity-based and non-equity accelerators is a crucial decision that impacts the future of your startup. Equity-based programs typically require you to give up a portion of your company's equity in exchange for capital, mentorship, and resources. This can be a good option if you're looking for substantial funding and are willing to share your company's ownership. On the other hand, non-equity accelerators offer support without taking any stake in your company, ideal for those who wish to retain full ownership. However, they might offer less capital. Consider your startup's funding needs, how much control you're willing to share, and the specific benefits each program offers to make an informed decision.
Related resource: Pros and Cons of Crowdfunding for Your Startup
Legal and IP Considerations for Startups in Accelerators
When joining an accelerator, it's crucial to carefully navigate legal and intellectual property (IP) considerations. Protecting your startup's IP is paramount, as it forms the core of your value proposition. Ensure you understand the terms of the accelerator agreement, especially concerning IP rights and confidentiality. Some accelerators may require disclosure of your IP, so it's essential to have clear agreements in place to protect your interests. Consulting with a legal expert specializing in startup and IP law can provide tailored advice, helping you safeguard your assets while benefiting from the accelerator's resources and network. Engaging in due diligence and obtaining professional legal guidance are key steps in this process.
What to Expect from an Accelerator
Most programs are highly structured and rigorous, designed to make the most of every minute. A typical day could include a blend of workshops, mentorship sessions, networking events, and ample amounts of time for product development. Accelerators push startups to evolve rapidly, so the schedule can be demanding. Expect long days and tight deadlines, but also a supportive, collaborative environment full of passionate people who share your entrepreneurial spirit. It’s a high-intensity period, but the pace is intentionally set to prepare you for the demanding nature of running a startup.
Preparing the Team
Preparing your team for an accelerator program is much like gearing up for a marathon. The program’s intensity means your team will need to be mentally prepared and resilient. Transparency is key – ensure your team understands the expectations and commitments of the program. Encourage open communication about concerns and questions. Prioritize team health and well-being to avoid burnout. Foster a culture of agility and quick decision-making, as accelerators move at a fast pace. Regular check-ins and debriefs can help the team navigate the experience collectively, learning and pivoting as needed.
Setting realistic and achievable goals before entering an accelerator is crucial. Having clear objectives will help you stay focused amidst the whirlwind of activities and opportunities. Your goals could range from product development milestones, market validation, and customer acquisition targets, to preparing for fundraising. Be ambitious, but also practical – consider your team’s capacity and the program’s duration. Your goals should be specific, measurable, achievable, relevant, and time-bound (SMART). Remember, these goals are not set in stone; they should evolve as you receive new information and feedback during the program. Regularly revisit and revise your goals to ensure they align with your startup’s growth and the invaluable feedback you’ll receive within the accelerator environment.
Related resource: Startup Metrics You Need to Monitor
Navigating Post-Accelerator Challenges
After completing an accelerator program, startups face the challenge of maintaining momentum. To sustain growth, focus on continuous learning and adaptability, leveraging the network and resources acquired during the program. Establish clear, achievable goals for short and long-term growth, and continuously measure performance against these objectives. Engage with the accelerator alumni community for support and potential collaboration opportunities. Prioritize building strong customer relationships and refining your value proposition based on feedback. Lastly, maintain fiscal discipline while seeking further investment opportunities to fuel growth.
Resources
The most active startup accelerators and where they’re investing
Accelerator connect profiles in our Fundraising CRM
Seed-DB maintains a global list of accelerators and data on their funded startups.
Barclays Eagle Labs: Our passion is innovation and growth so much so, that in 2015 when underused Barclays spaces became available we created Eagle Labs, a network made up of member businesses, partners, investors, corporates, mentors, banking expertise and so much more.
Startup Accelerators to Check Out
Buildit Accelerator
And Program Info Provided by Arta Beitāne, Associate and Accelerator Program Manager
About: Buildit is an accelerator that supports hardware and IoT startups in turning an idea into a tangible, market-worthy product.
Sweetspot check size: $ 300K
Traction metrics requirements: Must have an MVP or working prototype
Thesis: At Buildit you don’t just get a product accelerator. You get a partner in development that’s invested in seeing you succeed. Program Specifics: What does the curriculum include? What skills and knowledge areas does the program focus on?
“Curriculum topics: Smart prototyping, design for manufacturing, business modelling and pricing, efficient marketing with 0$ budget, pitch trainings, Fundraising & Legalese, IP protection, Sustainability and ESG reporting since Day 1…The program focuses on setting up the startup so that the team can raise their next investment rounds – clear plans and milestones, team competencies, IP rights, etc.”
Mentorship and Network: Who are the mentors and what are their backgrounds?
“Mentors are of various profiles, and the group constantly changes as we are on a constant lookout for fresh perspectives. Mentors usually are or have been founders themselves, some are investors and some are specialists in their own areas (lawyers, engineers, consultants). What networking opportunities exist within the program? What kinds of professionals will they have access to?
“Mentors (a long list of 300 experts, compiled over years) and investors mainly.”
Success Stories and Track Record: What notable companies have gone through the program?”
“We’re proud [amongst others] of STRIGA, Naco Technologies, Alternative Plants to name a few.”
Post-Program Support: What kind of support (if any) is offered to startups after they complete the program?
“In most cases, we invest in our program graduates. Participants are pre-selected in a way where we see high potential of a Buildit investment case. The network is quite widespread geographically and industry-wise, nevertheless, relatively closely knit, therefore, we see high likelihood in portfolio company founders helping each other + we try to host annual in-person events to facilitate relationship building and rekindling.”
Aviatra Accelerators
About: Aviatra Accelerators empowers women entrepreneurs to start and grow their businesses faster and with more confidence.
Thesis: We offer classes, coaching and community to women entrepreneurs. Our program “Capital-Ready Women” helps women get ready to successfully access capital from lenders and investors.
"Our newest program for women entrepreneurs is Capital-Ready Women. It’s designed to help women get ready to successfully access capital from lenders and investors. It begins with our Free Fundability Assessment, available at FreeFundabilityAssessment.com."
Union Kitchen
About: Union Kitchen is a Food Business Accelerator. We build successful food businesses by bringing together our Accelerator with access to our Kitchen, Distribution, and Stores. Since starting in 2012, we’ve worked with over 650 food businesses, including DC favorites Compass Coffee, Snacklins, Mas Panadas, Caribe and many more! Union Kitchen also launched an investment fund in 2022. Are you ready to build your successful food business? Apply here: https://unionkitchen.com/apply
Lair East Labs
About: Lair East Labs is an early-stage venture firm based in New York City that empowers founders to expand internationally. At the heart of Lair East Labs comes our founder-centric accelerator program. Each cohort intakes 10 startups to receive curriculum content, mentorship network, office space, and investments of up to $150K. Our 4-month program combines the best of two worlds: learning from alum founders and gaining access to a diverse mentor and investor network with extensive experience navigating the Asian markets. Our portfolio companies have raised $65 million of funding after completing the accelerator. For more information, please visit https://laireastlabs.com
Traction metrics requirements: Must have a MVP for software-centric startups or associated IP or research paper to validate the technology for DeepTech companies
Arkley Brinc
About: Arkley is an Accelerator VC that focuses on early-stage hardware startups to help them grow from prototype to IPO.
Thesis: We are the most individual acceleration program on earth. Representing the bespoke model: We do what’s necessary to make you do what’s impossible. We are working with startups as a team member in order to achieve agreed operational and financial goals by using Arkley’s ecosystem.
Accelerator Centre
About: Accelerator Centre is a network of facilities dedicated to developing and commercializing technology startups.
Thesis: The Accelerator Centre is an award-winning startup accelerator dedicated to building and scaling sustainable, globally competitive companies and giving startups the highest probability of long-term success.
Dreamit Ventures
About: Dreamit is a venture fund and growth-focused accelerator for Urbantech, Securetech, and Healthtech startups
Sweetspot check size: $ 1M Traction metrics requirements: Seek healthtech and securetech companies with early commercial traction and proven product market fit that are focused on scaling. Thesis: Dreamit Ventures is a fund and growth program focused on startups with revenue or pilots that are ready to scale.
Capital Innovators
About: Capital Innovators provides top-ranked accelerator programs, venture fund management, and corporate innovation. It manages private and corporate venture funds focused on technology, consumer products, and energy innovations. Capital Innovators has helped scale 188 companies and assisted them in raising over $600 MM in follow-on investment and creating over 2,900 jobs.
HARDS
About: The First Brazilian Software/Hardware Accelerator
Thesis: How do we acceerate your startup? It’s easy .. years of experience from our investors, partners, mentors, advisors and managers in hardware and software development, added to the experience of accelerating Darwin Startups!
Village Capital
About: Our mission is to reinvent the system to back the entrepreneurs of the future. Our vision is a future where business builds equity and long-term prosperity.
gener8tor
About: gener8tor is a nationally ranked, concierge accelerator that invests in high-growth startups.
Sweetspot check size: $ 100K
AngelPad
About: AngelPad is a seed-stage accelerator program that finds product market fit, defining a target market to get first validation for a company.
Sweetspot check size: $ 1M Thesis: Find awesome companies with founders we like to work with and spend three very intense months with them.
The Alchemist Accelerator
About: The Alchemist Accelerator is a venture-backed initiative focused on accelerating startups whose revenue comes from enterprises.
Sweetspot check size: $ 75K
Traction metrics requirements: Looking for companies from the idea stage to 15K+ in MRR
FounderFuel
About: FounderFuel is a mentor-driven venture accelerator that helps new startups make progress on the venture path.
Sweetspot check size: $ 120K Thesis: We ignite the global success of companies by developing the leaders behind them.
Amplify
About: Amplify is a pre-seed fund in Venice, CA dedicated to backing strong teams at the earliest stages and supporting from first check to exit.
Thesis: At Amplify, our vision is clear — help passionate technology entrepreneurs grow their startups into strong, scalable & successful companies.
Flashpoint
About: Flashpoint is an international tech investment manager with approx. $400 million AUM focused on international tech companies originating out of Europe and Israel. Flashpoint manages five venture funds: three VC funds, a Venture Debt Fund, and a Secondary Fund. The firm is headquartered in London and has offices in New York, Tel-Aviv, Budapest, Warsaw, Riga, and Nicosia.
Global Insurance Accelerator
About: The Global Insurance Accelerator is a mentor-driven business accelerator designed to foster innovation in the insurance industry through startups targeting the global insurance industry. We take in early-stage companies who are building solutions that support the insurance industry. We provide seed funding, networking with our mentors, a desk in our beautiful office in Des Moines, 100-days of on-site support and time on stage at the Global Insurance Symposium with hundreds industry executives in attendance. This is not your typical accelerator. Our investors are insurance carriers, our mentors are primarily insurance executives. Startups participating in our program find product-market fit and do customer discovery faster than they could ever do at any other accelerator. We are a strategic partner.
The Deal: Investment with founder-friendly terms: $50k in the form of a post-money SAFE that converts to 5% of the company; no board seat Curated meetings with 75+ insurance-focused mentors in program; dozens more after Final presentations @ Global Insurance Symposium (~600 attendees in 2019) Additional exposure at industry conferences One-bedroom, residential-style suite at the Staybridge Suites, with amenities including daily breakfast, nightly dinner, gym, pool, and laundry (in-person nights / 2-minute walk from GIA) Office space for your entire team Typical accelerator perks (deals on hosting, marketing tools, etc) Stocked fridge at the GIA office Founders need to be in Des Moines during the program, business-related travel is supported
Hardware.co
About: HARDWARE.co is a global community and accelerator for entrepreneurs, industry professionals and makers dedicated to the creation of innovative hardware products and companies. HARDWARE.co is made out of several interconnected components to serve, maintain, and grow our community. The HARDWARE.co Accelerator, Lab, Meetups, and Online Platform form a multichannel resource to give community members the opportunity to create leading products and companies. We support every stage of hardware development – from ideas, to prototypes, to investments, and beyond.
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Related Resource: Accelerator connect profiles in our Fundraising CRM
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Fundraising
7+ VC Firms Funding the Future of Healthcare in 2024
Venture capital (VC) has become an instrumental force in driving innovation and growth across various industries, and healthcare is no exception. Within the article, we’ll cover venture capital within the healthcare sector, its significance, the healthcare investment landscape, the benefits it brings, and the types of healthcare companies that VCs actively invest in.
The Role of Venture Capital in Healthcare
Venture capital serves as a catalyst for progress in the healthcare industry. By providing funding and expertise to early-stage and high-potential companies, VCs help drive innovation, accelerate research and development, and bridge the gap between groundbreaking ideas and commercial success. With their financial resources and industry knowledge, venture capital firms empower healthcare entrepreneurs to transform their visions into tangible solutions that improve patient care, enhance medical outcomes, and reshape the healthcare landscape.
The Healthcare Investment Landscape
VC firms are actively seek opportunities in a wide range of healthcare sectors, including biotechnology, medical devices, healthcare IT, and healthcare services.
Despite a slight slowdown, venture capital funds managed to raise an impressive amount of nearly $22 billion in 2022, making it the second-largest fundraising year on record. The positive momentum continued into Q1 2023, with the fundraising pace accelerating slightly to $6.8 billion. Notably, early-stage investors showed a preference for seed and Series A investments, indicating their confidence in backing promising startups at the initial stages of their growth journey.
As venture capital funds still have a significant amount of capital yet to be deployed in the healthcare sector, it is expected that top companies will continue to attract investor interest. However, this interest is likely to come with investor-driven valuations, as investors seek to balance risk and returns in an increasingly competitive market. The abundance of available capital presents a unique opportunity for healthcare startups to secure the necessary funding to fuel their growth and innovation.
Although the overall investment pace experienced a slowdown in Q1, with investors navigating macro uncertainty and market downturns, they remained focused on supporting their promising later-stage portfolio companies. This support was evident through insider extensions and bridge rounds, allowing companies to bridge the funding gap and continue their growth trajectory.
Looking ahead to the second half of 2023, there is an expectation of an uptick in larger, outsider-led funding rounds. These rounds may see valuations being adjusted to better reflect market conditions, potentially resulting in down rounds or flat “engineered” rounds that include incentives for new investors.
“CVS is betting big on primary care. Here’s a breakdown of its 5 biggest deals of 2023.
CVS is aggressively investing in and acquiring digital health companies while competitors retrench. We dig into the pharmacy giant’s recent primary care moves.” Anand Sanwal, founder of CBInsights, Newsletter
Benefits of Venture Capital in Healthcare
Venture capital firms play a pivotal role in shaping the future of healthcare by providing critical funding, expertise, and strategic guidance.
Access to Capital
One of the primary advantages of venture capital in healthcare lies in its ability to bridge the funding gap for early-stage companies. Healthcare ventures often require substantial financial resources to advance research, conduct clinical trials, and navigate complex regulatory landscapes.
Expertise and Guidance
Beyond financial support, VC firms bring a wealth of industry knowledge and experience to the table. Seasoned investors offer strategic guidance, mentorship, and operational expertise to healthcare entrepreneurs. Their deep understanding of the sector helps startups refine their business models, overcome regulatory hurdles, and optimize their commercialization strategies. The invaluable insights and advice provided by venture capitalists significantly enhance the chances of success for healthcare ventures.
Validation and Credibility
Securing VC funding serves as a powerful validation for healthcare startups. The rigorous due diligence process conducted by venture capitalists not only validates the viability of the company’s products or services but also enhances its credibility in the eyes of other stakeholders. This validation opens doors to additional funding opportunities, attracts potential partners and customers, and positions the company as a trusted player in the industry. The stamp of approval from venture capitalists acts as a strong endorsement, driving confidence in the startup’s vision and mission.
Network and Partnerships
Venture capital firms possess extensive networks within the healthcare ecosystem, comprising key players such as healthcare providers, pharmaceutical companies, regulatory bodies, and industry experts. By partnering with venture capitalists, startups gain access to these invaluable networks, which can facilitate collaborations, strategic partnerships, and distribution channels. The connections offered by VCs are instrumental in accelerating market adoption, expanding reach, and tapping into new markets. The network effect of venture capital opens up a world of possibilities for healthcare startups to thrive and make a significant impact.
Long-Term Support and Sustainability
Unlike short-term investors or traditional lenders, venture capital firms typically take a long-term view when investing in healthcare companies. They are committed to supporting startups throughout their growth journey, providing follow-on funding rounds as needed. This long-term support ensures the sustainability and continuity of healthcare ventures, enabling them to focus on innovation, research, and achieving long-term objectives. The stability and backing of venture capitalists give healthcare startups the confidence and resources to navigate challenges and pursue ambitious goals.
Types of Healthcare Companies VCs Invest In
Venture capital firms invest in a wide array of healthcare companies, each with its unique value proposition and growth potential. These are some of the top healthcare industries that are attracting VC investment along with some other trending industries as well
Biotech Companies
Biotech companies leverage biological processes and living organisms to develop innovative therapies, diagnostic tools, and research solutions. VCs invest in biotech firms due to the tremendous potential for groundbreaking discoveries, the ability to address unmet medical needs, and the prospects of substantial returns on investment.
Subindustries within Biotech include:
Gene Editing: Companies developing innovative gene editing technologies like CRISPR-Cas9, enabling precise modification of genetic material for potential therapeutic applications.
Immuno-oncology: Companies focusing on immunotherapies that enhance the body’s immune system to target and fight cancer cells, including cellular therapies and immune checkpoint inhibitors.
Precision Medicine: Companies that leverage genomic data and advanced analytics to develop personalized medicine approaches, tailoring treatments to individual patients based on their genetic makeup, biomarkers, and other unique characteristics.
Check out our investor list article, The Top VCs Investing in BioTech.
Medical Device Companies
Medical device companies focus on developing advanced medical technologies and devices that enhance patient care, improve treatment outcomes, and streamline healthcare delivery. These companies often require significant financial backing for research, development, clinical trials, and regulatory approvals. VCs invest in medical device companies to support their growth and innovation in this rapidly evolving sector.
Subindustries within Medical devices include:
Minimally Invasive Surgical Devices: Companies develop innovative medical devices and instruments for minimally invasive surgeries, offering improved patient outcomes, reduced recovery time, and enhanced surgical precision.
Digital Health Monitoring Devices: Companies create wearable devices and remote monitoring technologies, enabling continuous tracking of vital signs, remote patient monitoring, and real-time health data analysis.
Artificial Intelligence (AI) in Medical Imaging: Companies combining AI and medical imaging to improve diagnostic accuracy, automate image analysis, and assist radiologists in interpreting medical images such as X-rays, MRIs, and CT scans are attracting investment.
Healthcare IT Companies
Healthcare IT companies play a vital role in transforming the delivery of healthcare by leveraging technology to address industry challenges and improve overall outcomes. They develop innovative solutions that enhance clinical workflows, optimize administrative tasks, ensure data security and privacy, and facilitate seamless interoperability among various healthcare stakeholders.
They do this through creating software, systems, and platforms that streamline processes, improve patient care, enhance data management, and enable efficient communication within the healthcare ecosystem.
VCs are attracted to companies that bring innovative and disruptive solutions to the industry, leveraging technologies like AI, machine learning, and big data analytics. These solutions have the potential to transform healthcare practices and enhance patient care.
Additionally, companies that focus on cost reduction and operational efficiency by automating tasks and streamlining workflows are interesting to VCs. These companies enable healthcare providers to optimize resources, minimize errors, and achieve cost savings.
VCs also acknowledge the importance of regulatory compliance and data security in the healthcare sector. Companies specializing in robust cybersecurity measures and privacy protection tools are in high demand.
Subindustries within Healthcare IT include:
Telehealth Platforms: Companies developing telehealth platforms, telemedicine apps, and remote patient monitoring solutions to support virtual consultations, remote diagnostics, and remote care delivery.
Health Data Analytics: Companies specializing in advanced data analytics and artificial intelligence to derive insights from healthcare data are receiving investments, supporting population health management, personalized medicine, and improved clinical decision-making.
Cybersecurity and Privacy: Companies focusing on healthcare data security, patient privacy protection, and compliance with regulations such as HIPAA. These companies develop solutions to safeguard electronic health records, secure data sharing, and prevent data breaches.
Healthcare Services Companies
Healthcare services companies encompass a wide range of organizations dedicated to providing essential healthcare services to individuals and communities. These companies, can include hospitals, clinics, nursing homes, home healthcare providers, and diagnostic services.
VCs recognize the increasing demand for healthcare services due to factors such as population aging and rising healthcare needs. Investing in healthcare services companies allows VCs to capitalize on this growing market and generate favorable financial returns.
Moreover, VCs seek out healthcare services companies that bring innovation and differentiation to the industry. Companies that introduce novel care delivery models, leverage technology advancements and enhance patient experiences attract VC investments. By investing in such companies, VCs aim to support the transformation of healthcare services delivery and improve patient outcomes.
Subindustries within Healthcare services companies include:
Digital Health Platforms: Investment is flowing into companies offering comprehensive digital health platforms, integrating electronic health records (EHRs), patient engagement tools, telehealth capabilities, and data analytics to improve care coordination, patient outcomes, and operational efficiency.
Home Healthcare Services: Companies providing innovative home healthcare services, including remote monitoring, virtual consultations, and personalized care delivered in the comfort of patients’ homes, are attracting investment.
Mental Health Services: Investments are being made in companies focusing on digital mental health solutions, such as online therapy platforms, mental health apps, and virtual support networks, to address the increasing demand for accessible and convenient mental healthcare.
6 Venture Capital Firms Investing in Healthcare
Numerous firms are actively investing in healthcare innovation and shaping the future of the industry. Below we’ll explore six notable venture capital firms that have made significant contributions to the healthcare sector. These VCs bring a wealth of experience, expertise, and financial resources to support the growth and success of healthcare startups and companies. Their strategic investments have helped drive advancements in biotechnology, medical devices, healthcare IT, and healthcare services, propelling the industry forward and improving patient care.
1. Felicis Ventures
Felicis Ventures is a boutique VC firm that backs iconic companies reinventing existing markets and creating frontier technologies. At Felicis Ventures we back the world’s iconic companies of today and tomorrow. We have a passion for products and out-of-the-box thinking.
Company Stage: Seed, Series A, Series B, Growth
Location: Menlo Park, California, United States
Portfolio Highlights
Guild
Predibase
Operant
2. New Enterprise Associates
New Enterprise Associates is a global venture capital firm investing in technology and healthcare. NEA’s proven investment strategy spans all stages of a company’s growth, from seeding innovations in emerging markets to funding early-stage companies in high-growth markets to fueling the growth of market leaders. Any stage of growth is the right stage to partner with NEA. We can add value and offer expert guidance throughout your company’s lifecycle—whether your big idea is at its inception or has already progressed to be a viable reality.
Company Stage: Pre-Seed, Seed, Series A, Series B, Series C, Growth
Location: Menlo Park, California, United States
Portfolio Highlights
PixieBrix
Regression Games
Timescale
3. BoxGroup
Investing in dreams at the earliest stage with companies like Plaid, Airtable, Ro, Ramp, and many more.
We support companies based on conviction in the team. We believe in “founder market fit” – the concept that certain teams are able to unlock specific markets. This is the first step to get to “product market fit.” Ideas tend not to be equal opportunity which means that it requires the right team to bring a vision to life.
Company Stage: Pre-Seed, Seed, Series A
Location: New York, United States
Portfolio Highlights
Plaid
Airtable
Ramp
4. SV Health Investors
SV Health Investors, formerly SV Life Sciences, is a leading healthcare and life sciences venture capital and growth equity firm. Their goal is to transform healthcare – one investment at a time – by supporting the entrepreneurs who create and build breakthrough companies and treatments. In biotechnology, we are venture-focused. In healthcare services and digital health, we seek growth equity opportunities. In medical devices, we pursue a range of opportunities from early stage/venture-focused to early commercialization to growth equity.
Company Stage: Pre-Seed, Seed, Series A, Series B, Growth
Location: Boston, Massachusetts, United States
Portfolio Highlights
Therini Bio
Nimbus Therapeutics
Quell Therapeutics
5. Elevate Capital
For some populations, there is a noticeable gap in gaining access to investment capital. These aspiring entrepreneurs are both underserved and overlooked, yet they have the courage and vision it takes to start and scale a business. At Elevate Capital, we believe there is a tremendous opportunity to invest early and offer mentorship to these entrepreneurs. We provide the venture capital and guidance they need to turn their startups into great companies.
Elevate Capital is the nation’s first institutional venture capital fund that specifically targets investments in underserved entrepreneurs—such as women and ethnic minorities, or those with limited access regionally to capital and opportunities. We support visionaries with disruptive ideas and products through two specialized investment vehicles.
Company Stage: Pre-Seed, Seed, Series A
Location: Portland, Oregon, United States
Portfolio Highlights
TrovaTrip
The Bacon
HacWare
6. StandUp Ventures
StandUp Ventures is a Toronto-based, seed-stage venture capital fund focused on investing in high-growth ventures with at least one female founder in a key leadership role. We believe that women-led companies think outside the box, recruit great talent, and serve bigger markets. We invest in seed-stage, for-profit technology companies with at least one woman in a C-level leadership position within the company and an equitable amount of ownership.
We’re dedicated to curious, confident, and fearless entrepreneurs building ground-breaking technology companies. We partner with ambitious founders across Canada to break through from Seed to Series A.
Company Stage: Seed
Location: Toronto, Canada
Portfolio Highlights
ODAIA
Acerta Analytics
TealBook
7. Civilization Ventures
Civilization Ventures is a venture capital firm focused on cutting edge innovations in exponential health tech and biology.
Company Stage: Seed, Series A, Series B
Location: San Francisco, California, United States
Portfolio Highlights
Foresight Diagnostics
Evonetix
Infinimmune
Partner With VCs Investing In The Future of Healthcare with Visible
Venture capital has emerged as a powerful catalyst for progress in the healthcare industry. By bridging the funding gap, providing expertise, and fostering innovation, VCs enable healthcare startups to thrive and create transformative solutions.
Funding not only drives financial success but also cultivates a future where patient care is enhanced, medical outcomes are improved, and the boundaries of what is possible in healthcare are continually pushed.
Check out Visible’s investor database, Connect, to find VCs investing specifically within the healthcare space.
Also here are two more of our list articles,
10+ Founder Friendly Venture Capital Firms Investing in Startups
The 12 Best VC Funds You Should Know About
Companies should leverage VCs expertise and resources to accelerate their growth, navigate regulatory challenges, and scale their impact.
Also, get access to Visible for free for 14 days: https://app.visible.vc/create-account
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Fundraising
The Most Popular Data Room Folders
Since launching Visible Data Rooms last month, thousands of founders have leveraged them to distribute fundraising assets and data to their current and potential investors.
Most Popular Data Room Folders
Using our own data, we were able to pull the most popular “folders” created so far. Check them out below:
Legal and Corporate Docs – Confirms your business is a legitimate company (incorporation docs, formation docs, IP, etc.)
Financials – In the early days, keep this section light – especially around projections. As you scale from pre-seed to series A, this section will become more important. Be sure the data here matches your pitch decks, other documents, etc.
Team and Stakeholders – This generally goes hand-in-hand with “Legal and Corporate Docs.” This helps investors confirm you have employee structure, contracts, signed PIAAs, etc.
Cap Table – Most, if not every investor, will ask for this. Investors want to understand if you have a “clean” cap table.
Market Data – Considered a “nice to have” but can still be valuable. Later-stage investors will likely do their own analysis and research here.
Every business and investor is different. Be sure to build and share the information that is right for your business.
Build a Data Room with Visible
Visible Data Rooms integrate directly with Visible Decks, Dashboards, and Updates. Manage every aspect of your fundraise with Visible and spend more time on what matters most — building your business. Give it a try here.
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Fundraising
15 Venture Capital Firms Investing in VR in 2024
The Extended reality (XR) industry which includes Agumentented Reality (AR), Virtual reality (VR), and mixed reality (MR) is changing the way we experience the world by creating an immersive experience in a virtual world (VR) or merging the real and virtual worlds together (AR).
Immersive technologies has become a focus for some of the largest tech companies and investors alike thanks to rapid advancements of AR and VR technology, increased popularity within gaming, and new innovations such as the introduction of the metaverse. These technologies are also now being developed for a wide range of uses, such as industrial, communication, training exercises, and gaming.
Statista forcasted the global AR, VR, and mixed reality (MR) market to reach 30.7 billion U.S. dollars in 2021, rising to close to 300 billion U.S. dollars by 2024.
There’s never been a better time for AR and VR, spiking the interest of startups as well as investors looking to take advantage of the market.
Visible looks to help connect founders with investors all over the world. Below, we highlight 15 of our favorite AR/VR venture capitalists. Search through these investors and 13,000+ more on Visible’s Connect platform.
Related Resource: 14 Gaming and Esports Investors You Should Know
Bloomberg Beta
Location: San Fransisco & New York City, California, United States
About: Invests in powerful ideas that bring transparency to markets, achieve global scale, with strong, open cultures that embrace technology.
Thesis: We believe work must be more productive, fulfilling, inclusive, and available to as many people as possible. Our waking hours must engage the best in us and provide for our needs and wants — and the world we live in too often fails to offer that. We believe technology startups play an essential role in delivering a better future. We can speed the arrival of that future by investing in the best startups that share these intentions.
Investment Stages: Pre-Seed, Seed, Early Stage
Recent Investments:
Fiddler AI
Chef Robotics
Weights and Biases
Tonic
Ware
Related Resource: The 11 Best Venture Capitals in San Francisco
Dune Ventures
Location: New York, New York, United States
About: An early stage venture firm backing the founders shaping interactive content.
Thesis: Dune Ventures: a new early stage venture firm investing in gaming, esports, and interactive technology. We invest globally and back founders building content studios, social platforms and infrastructure that will define the next generation of entertainment.
Investment Stages: Pre-Seed, Seed, Series A, Series B
Recent Investments:
Starform
Ramen VR
Medal
DreamCraft
IndiGG
HCVC
Location: San Francisco, California, United States
About: HCVC is the first global venture capital fund dedicated to full-stack and hardtech startups.
Thesis: We are looking for outstanding founders, building game-changing products or technologies and targeting large potential markets
Investment Stages: Pre-Seed, Seed, Series A
Recent Investments:
Anello Photonics
Augmenta
Giraffe360
Span
Full Speed Automation
Intel Capital
Location: Santa Clara, California, United States
About: Intel Capital is a force multiplier for early-stage startups – inspiring and investing in the future of compute via investments in Cloud, Silicon, Devices, and Frontier.
Investment Stages: Pre-Seed, Seed, Series A, Series B, Growth
Recent Investments:
3D Glass Solutions
Grip Security
Landing AI
Astera Labs
Untether AI
7 Percent Ventures
Location: London, England, United Kingdom
About: Early stage tech investing in UK, EU & US. Seeking the most ambitious founders with deeptech or transformative moonshot ideas to change the world for the better
Thesis: We invest in early stage tech startups which represent billion dollar opportunities.
Investment Stages: Pre-Seed, Seed, Series A
Recent Investments:
Vauban
Dent Reality
Breeze
Humanity
Safely You
Related Resource: 15 Venture Capital Firms in London Fueling Startup Growth
Type One Ventures
Location: Los Angeles, California, United States
About: We are a venture capital fund investing in Seed and Series A startups with operational expertise, capital, and industry resources. The startups we invest in have dynamic teams and are building technical products with the capability to progress humanity forward. At Type One, we help founders harness their superpowers so they can change the world.
Thesis: Progressing humanity towards a type one civilization
Investment Stages: Pre-Seed, Seed, Series A, Growth
Recent Investments:
Emerge
RoboTire
Emerge
Gravitics
Radian
GFR Fund
Location: San Francisco, California, United States
About: GFR Fund is a venture capital fund that invests in early-stage startups that are disrupting the consumer entertainment industry
Investment Stages: Pre-Seed, Seed, Series A
Recent Investments:
Phiar Technologies
Omeda Studios
ProGuides
BoostVC
Location: San Mateo, California, United States
About: Boost VC is a family of founders making Sci-Fi a Reality. Twice a year Boost VC invests in 20+ startups. The three month accelerator program includes housing and office space in Silicon Valley. Portfolio consists of 150+ companies, who have raised over $200M after joining Boost VC.
Investment Stages: Accelerator, Pre-Seed, Seed, Series A
Recent Investments:
FitXR
Alta
Sidequest
JigSpace
Giblib
Tvori
Tribe
WXR Fund
Location: Marina del Rey, California, United States
About: The WXR Fund invests in gender diverse seed stage companies that are transforming business and human interaction with spatial computing (VR/AR) and artificial intelligence (AI). We are the only venture firm at the intersection of the next wave of computing and female founders.
Thesis: The WXR Fund invests in two of the greatest opportunities of our time: the next wave of computing + female entrepreneurs.
Investment Stages: Accelerator, Pre-Seed, Seed
Recent Investments:
Obsess
mpathic.ai
Scatter
Prisms of Reality
Embodied Labs
The Venture Reality Fund
Location: San Francisco, California, United States
About: The Venture Reality Fund drives innovation and investment at the intersection of immersive, spatial, and intelligent computing for consumer and enterprise sectors
Thesis: Investing in Early Stage VR and AR Startups
Investment Stages: Series A, Series B
Recent Investments:
Phiar Technologies
Obsess
Doorstead
Lux Capital
Location: Silicon Valley, California, United States
About: VC based in NYC and Menlo Park investing in counter-conventional, early-stage science and tech ventures, with $2.4B AUM across 8 funds.
Thesis: Lux Capital invests in emerging science and technology ventures at the outermost edges of what is possible.
Investment Stages: Seed, Series A, Series B
Recent Investments:
Runway
Clarafi
A-Alpha Bio
Benchling
Plexium
OCA Ventures
Location: Chicago, Illinois, United States
About: OCA Ventures is a venture capital firm focused on equity investments in companies with dramatic growth potential, primarily in technology
Investment Stages: Seed, Series A, Series B
Recent Investments:
GrayMatter Robotics
Balto
Osso VR
Placer.ai
VeriSIM Life
Ludlow Ventures
Location: text
About: VC is a customer service business. Whether it’s testing product, pushing pixels, leveraging our network, or forcing people to download your app, we’re here to help. You make our dream jobs possible and we’re forever thankful for that.
Thesis: We believe in VC without ego. We invest with insane conviction and love backing the right teams when others think it’s too early.
Investment Stages: Seed, Series A
Recent Investments:
Point One Navigation
Headout
Notarize
Lev
Density
Craft Ventures
Location: San Francisco, California, United States
About: Craft Ventures is an early-stage venture fund specializing in the craft of building great companies.
Thesis: We invest in outstanding teams that are creating market-defining products.
Investment Stages: Seed, Series A, Series B
Recent Investments:
Trusted
AgentSync
TryNow
Voiceflow
ClickUp
Creandum
Location: Stockholm, Stockholms Lan, United States
About: Creandum is a leading European early-stage venture capital firm investing in innovative and fast-growing technology companies.
Thesis: We are a venture capital advisory firm powering innovation from Stockholm, Berlin, and San Francisco.
Investment Stages: Pre-Seed, Seed, Series A, Series B
Recent Investments:
Lokalise
Pleo
Meditopia
Seon
Craft Docs
Related Resource: Atlanta’s Hottest Venture Capital Firms: Our Top 9 Picks
Start Your Next Round with Visible
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After learning more about them with the profile information and resources given you can reach out to them with a tailored email. To help craft that first email check out 5 Strategies for Cold Emailing Potential Investors.
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founders
Fundraising
8 Active Venture Capital Firms in Germany in 2024
At Visible, we oftentimes compare a venture fundraise to a traditional B2B sales and marketing funnel.
At the top of the funnel, you are finding potential investors via cold outreach and warm introductions.
In the middle of the funnel, you are nurturing potential investors with meetings, pitch decks, updates, and other communications.
At the bottom of the funnel, you are working through due diligence and hopefully closing new investors.
Related Resource: All Encompassing Startup Fundraising Guide
A strong sales and marketing funnel starts by identifying the right leads for your business. The same idea is true for founders looking to find investors for their business — find the right investors for your business.
If you are a founder in Germany, check out our list of venture capital investors in your area below:
1. Global Founders Capital
As put by their team, “Global Founders Capital is a globally oriented, stage agnostic venture capital firm that empowers gifted entrepreneurs worldwide.
Global. We support founders in all geographies.
Stage agnostic. We back companies across all stages and throughout the lifecycle.
Operational. Our platform offers founders all the support they need to scale.”
Learn more about Global Founders Capital by checking out their Visible Connect profile →
Location
Global Founders Capital is headquartered in Berlin but they invest in companies across the globe.
Related Resource: 8 Most Active Venture Capital Firms in Europe
Preferred industries
GFC is agnostic in its investment approach and will back companies across many industries.
Portfolio Highlights
Some of Global Founders Capital’s most popular investments include:
Canva
Slack
Delivery Hero
Company Stage
GFC is stage agnostic and will invest in companies across all stages.
2. HV Capital
As put by the team at HV Capital, “Founded in 2000, HV Capital has a deep track record of spotting European winners at seed stage: HV Capital backed the first generation of German billion-dollar businesses. With over € 2.1bn under management, HV Capital has invested in about 225 disruptors from every industry, partnering with them for the long-term and sustained growth that has led to some of the most successful businesses in the German market.
From early stage to growth, HV Capital has the experience to know what makes a leader – which is why HV Capital is the leading all-stage investor in the German market, and one of the leading investors in Europe.”
Learn more about HV Capital by checking out their Visible Connect profile →
Location
HV Capital has offices in Berlin and Munich. HV Capital funds companies across Europe.
Related Resource: Berlin Venture Capital Investors and Accelerators to Know
Preferred industries
HV Capital is agnostic in its investment approach and backs companies across many sectors.
Portfolio Highlights
Some of HV Capital’s most popular investments include:
Delivery Hero
HelloFresh
Tourlane
Company Stage
As put by their team, “HV Capital leads seed rounds from €0.5-5m, growth stage investments of up to €20m, and follow-on investments with up to €100m per company. HV Capital supports companies for 10 years or longer and deploys capital at all growth stages.”
3. High-Tech Grunderfonds
As put by their team, “HTGF is a venture capital investor for innovative technologies and business models. We successfully support the best founders whose ideas can revolutionise entire industries and improve people’s lives – from seed to exit.
As a seed investor, we have financed 700 start-ups in the industrial tech, digital tech, life sciences and chemicals sectors. We have overseen more than 160 exits, including IPOs. When founding your company together with us, you benefit from an experienced partner at your side.”
Learn more about High-Tech Grunderfonds by checking out their Visible Connect profile →
Location
HTGF has offices in Bonn and Berlin and invests in companies that are headquartered in Germany.
Preferred industries
HTGF traditionally invests in companies in the following industries:
Digital tech
Industrial tech
Life sciences
Chemicals
Portfolio Highlights
Some of High-Tech Grunderfonds’ most popular investments include:
4GENE
Anybill
Covalo
Company Stage
HTGF is focused on seed-stage investments
Related Resource: Seed Funding for Startups 101: A Complete Guide
4. Earlybird Venture Capital
As put by their team, “Founded in 1997, Earlybird invests in all development and growth phases of technology companies. Among the most experienced venture investors in Europe, Earlybird offers its portfolio companies not only financial resources but also strategic support plus access to an international network and capital markets.
The Digital West Fund focuses primarily on early stage digital technology opportunities in GSA, Nordics, UK, Benelux, France and Southern Europe, while the Digital East Fund is focused on early stage ICT investment opportunities in Eastern Europe and Turkey, being the leading tech VC in this region. The Health Fund focuses on early and later stage opportunities in digital health, medical devices, diagnostics, enabling technologies and biopharma across Europe. Earlybird-X backs deep tech innovation, including robotics, AI, and mobility, at the earliest stages – tapping into a network of leading European universities.”
Learn more about Earlybird by checking out their Visible Connect profile →
Location
Earlybird has offices in Berlin and Munich and invests in companies across all of Europe.
Preferred industries
Earlybird invests in companies across many sectors and industries depending on the fund.
Related Resource: 10 VC Firms Investing in Web3 Companies
Portfolio Highlights
Some of Earlybird’s most popular investments include:
Hive
ShapeShift
Aiven
Company Stage
Earlybird invests across many stages but is focused on early-stage companies.
5. Point Nine Capital
As put by the team at Point Nine Capital,
“What we do:
We invest mostly at seed (AKA the v0.9 stage). Occasionally we make pre-seed, “Seed II”, or “early Series A” investments.
Our initial ticket size is €0.5-5 million. If you raise a seed round from us,
we commit to participating in your Series A.
We’re geo-agnostic. Europe is our home market, but 20-30% of our investments are in the US, Canada, and other countries.
We obsess about helping you win, and it shows in the numbers: More than 65% of the companies that we back at the seed stage raise a Series A, and more than ten are already at $100M+ ARR (and counting).”
Learn more about Point Nine Capital by checking our their Visible Connect profile →
Location
As put by their team, “We’re geo-agnostic. Europe is our home market, but 20-30% of our investments are in the US, Canada, and other countries.”
Preferred industries
Point Nine Capital is focused on B2B SaaS and Marketplace companies.
Portfolio Highlights
Some of Point Nine Capital’s most popular investments include:
Algolia
Delivery Hero
Loom
Company Stage
As put by their team, “We invest mostly at seed. Occasionally we make pre-seed, “Seed II”, or “early Series A” investments. Our initial ticket size is €0.5-5 million. If you raise a seed round from us, we commit to participating in your Series A.”
6. Cherry Ventures
As put by their team, “Cherry Ventures is an early-stage venture capital firm led by a team of entrepreneurs with experience building fast-scaling companies such as Zalando and Spotify. The firm backs Europe’s boldest founders, usually as their first institutional investor, and supports them in everything from their go-to-market strategy and the scaling of their businesses.”
Learn more about Cherry Ventures by checking out their Visible Connect profile →
Location
Cherry Ventures has an office in Berlin and typically invests in companies across Europe.
Preferred industries
Cherry Ventures invests across all sectors and industries.
Portfolio Highlights
Some of Cherry Ventures’ most popular investments include:
FlixBus
Infarm
Forto
Company Stage
As put by their team, “We invest throughout Europe and in pre-seed and seed-stage startups.”
7. b2venture
As put by their team, “b2venture is an early-stage venture capital firm supported by an unparalleled community of angel investors, bringing unique expertise, entrepreneurial experience, and hands-on support to our portfolio companies.
We draw on the collective power of our angel investor community to help us find and foster unique entrepreneurs, maverick ideas, and outlier companies from all over Europe.
We invest in the pre-seed, seed and across later stages as well.”
Location
b2ventures has offices across Europe and invests in companies across Europe.
Preferred industries
b2ventures is industry agnostic and invests across many sectors and industries.
Related Resource: 17 Travel & Tourism VC Investors that can Fund Your Startup
Portfolio Highlights
Some of b2ventures most popular investments include:
Raisin
Sumup
Ledgy
Company Stage
As put by their team, “b2venture is an early-stage venture capital firm. We invest in companies in the Pre-Seed, Seed, and Series A financing rounds with tickets from EUR 250’000 to EUR 5’000’000. Our average ticket size amounts to EUR 1’000’000. We are prepared to invest significantly in follow-on financing rounds in later stages of your company.”
8. Project A Ventures
As put by their team, “Project A invests in digital companies that challenge the status quo of their industries. With over $1 billion of assets under management, we start with investments of $1 million to $10 million and reserve up to $30 million for future rounds, from pre-seed to Series A and beyond.
In addition to capital, we provide our portfolio companies with exclusive operational support by our team of 120 in-house experts including all areas across product, growth, data and people. Since 2012 Project A has invested in more than 100 companies.”
Learn more about Project A Ventures by checking out their Visible Connect profile →
Location
Project A Ventures has offices in Berlin and London and invests in companies across Europe.
Preferred industries
Project A fund’s digital companies — these can span many industries and business models as shown below:
Portfolio Highlights
Some of Project A’s most popular investments include:
Trade Republic
Kry
Sennder
Company Stage
As put by their team, “We start with investments of $1 million to $10 million and reserve up to $30 million for future rounds, from pre-seed to Series A and beyond.”
Take your fundraising efforts to the next level with Visible
As we mentioned at the beginning of this post, a venture fundraise often mirrors a traditional B2B sales and marketing funnel.
Just as a sales and marketing team has dedicated tools, shouldn’t a founder that is managing their investors and fundraising efforts? Use Visible to manage every part of your fundraising funnel with investor updates, fundraising pipelines, pitch deck sharing, and data rooms.
Raise capital, update investors, and engage your team from a single platform. Try Visible free for 14 days.
founders
Fundraising
The VCs Fueling the Future of Education in 2024
Latest Funding and Market Trends in EdTech (2023 and Beyond)
The EdTech sector presents a landscape of both challenges and opportunities. Founders need to be agile and adaptable, with a focus on the key growth areas of AI, mobile learning, and data analytics. Despite the current downturn in venture capital funding, the sector's long-term growth prospects remain promising, driven by technological advancements and a global push towards accessible, quality education.
Funding and Investment Trends
In 2023, the EdTech sector is witnessing a notable decline in venture capital funding. Investments in the second quarter stood at $707 million, contributing to a total of about $1.8 billion in the first half of the year. This represents a significant 58% drop compared to the same period in the previous year. The forecast for total VC funding in 2023 is projected to be around $3.5 billion, a decrease from $10.6 billion in 2022 and far from the record $20.8 billion in 2021.
The current investment climate has moved away from the "golden age of mega rounds." The recent period marked the second consecutive quarter without funding rounds exceeding $100 million, known as mega rounds. This cooling trend is attributed to a shift in market conditions, including a return to in-person learning and the expiration of federal aid that had previously boosted remote learning.
Related resource: Top 18 Revolutionary EdTech Startups Redefining Education
Opportunities and Growth Prospects
Despite the current slowdown, the long-term outlook for EdTech remains robust. Most forecasters anticipate continued substantial growth in the sector throughout the rest of this decade. This optimism is rooted in the belief that technology will continue to be a significant driver of global growth in education by reducing costs and expanding access to learning.
AI, mobile learning, tutoring, and data analytics are emerging as focal points in the EdTech sector. Innovations in these areas are expected to drive growth, with AI becoming a crucial component for startups. Mobile learning is also gaining prominence due to its widespread accessibility. Tutoring services are evolving, often combining AI, mobile technology, virtual/augmented reality, and gamification to offer more engaging and personalized learning experiences.
Implications for EdTech Founders
Navigating the Changing Landscape: EdTech founders must adapt to the evolving investment landscape, which may involve seeking smaller and more frequent rounds of funding. With the shift in investment focus, there is an increased emphasis on sectors outside of K-12, particularly in areas related to training and worker upskilling.
Leveraging Emerging Technologies: Founders should focus on leveraging emerging technologies like AI and mobile learning to create innovative solutions. There is a growing market for platforms that use big data and analytics to personalize learning. Additionally, developing solutions in the tutoring space, particularly those that address gaps in K-12 education, can be a fruitful direction.
Exploring Alternative Funding Sources: With the decline in traditional venture investments, it's crucial for startups to explore alternative forms of funding. This could include government funding, foundation-led philanthropic investments, and other non-traditional financing options. Diversifying funding sources can help sustain innovation and support the growth of new ideas.
Emerging Technologies in EdTech
For EdTech founders, emerging technologies offer a plethora of opportunities to innovate and create impactful educational solutions. As AI and IoT continue to evolve, they will undoubtedly unveil new possibilities for enhancing learning experiences and educational outcomes. Embracing these technologies and integrating them into EdTech solutions will be key to addressing the evolving needs of learners and educators alike.
AI-Driven Innovations
Personalized Learning Experiences: AI's ability to tailor educational content based on individual learning styles and needs is more advanced than ever. Using complex algorithms, AI can analyze student performance data to create a uniquely personalized learning journey. This not only enhances student engagement but also improves learning outcomes.
Intelligent Assessment Tools: AI is revolutionizing the way assessments are conducted. With advancements in natural language processing and machine learning, AI systems can now grade open-ended responses, provide real-time feedback, and even identify areas where students might need additional support.
Automated Content Generation: AI is being used to develop educational content, from generating practice questions to creating interactive learning modules. This technology allows for the rapid creation of high-quality, dynamic content that can adapt to curriculum changes and evolving educational standards.
AI Tutors and Assistants: AI-powered tutoring systems are becoming more sophisticated, offering students personalized guidance and support. These virtual tutors can answer questions, assist with problem-solving, and provide explanations, much like a human tutor but with the added benefit of being available 24/7.
IoT in Education
Smart Classroom Technologies: IoT is transforming traditional classrooms into smart learning environments. This includes the use of smart boards, IoT-enabled lab equipment, and connected devices that enhance interactive learning and provide real-time data to both students and teachers.
Enhanced Learning Analytics: now it’s possible to gather extensive data on student engagement and classroom dynamics. This information can be used to optimize teaching strategies, classroom layouts, and even individualize student learning plans based on engagement levels and performance.
Improved Resource Management: In educational institutions, IoT can help manage resources more efficiently, from tracking equipment usage to monitoring energy consumption. This not only reduces operational costs but also contributes to creating a more sustainable learning environment.
Future Outlook: Trends and Predictions in EdTech
The future of EdTech is marked by a landscape of continuous innovation and adaptation. For EdTech founders, staying abreast of these trends and predictions is crucial to developing solutions that meet the evolving needs of learners and educators. By embracing these changes and anticipating future needs, EdTech companies can not only contribute to the advancement of education but also thrive in a dynamic and growing market.
Key Trends Shaping the Future
Increased Adoption of AI and Machine Learning: AI and ML will continue to be at the forefront of EdTech innovation. They are expected to drive further personalization in learning, provide more efficient assessment tools, and enable the creation of dynamic, responsive educational content.
Growth in Virtual and Augmented Reality: VR and AR are anticipated to gain more traction in the educational sector. These technologies will provide immersive and interactive learning experiences, making complex concepts more accessible and engaging.
Rise of Microlearning and Bite-Sized Content: The trend towards microlearning is expected to grow. Short, focused learning sessions that fit into busy schedules are increasingly appealing, especially for continuous adult education and corporate training.
Focus on Lifelong Learning and Upskilling: As job roles evolve rapidly, there will be a heightened focus on lifelong learning and upskilling. EdTech platforms that cater to professional development and career transitions will likely see increased demand.
Expansion of Gamification in Education: Gamification will continue to be a key element in engaging learners. By making learning more fun and interactive, EdTech solutions can improve retention and motivation across various age groups and educational contexts.
Greater Emphasis on Inclusive and Accessible Education: There will be a growing focus on making education more inclusive and accessible. This includes developing solutions for learners with disabilities and those in underserved communities.
Predictions for Growth and Evolution
Market Expansion: The global EdTech market is projected to continue expanding, driven by technological advancements and the increasing acceptance of digital learning solutions.
Diversification of EdTech Solutions: Expect to see a broader range of EdTech products catering to different educational needs, including early childhood education, K-12, higher education, and adult learning.
Integration with Traditional Education Systems: EdTech will increasingly complement and integrate with traditional education systems, bridging gaps and enhancing the overall learning experience.
Adoption in Emerging Markets: Emerging markets will likely see a surge in EdTech adoption as internet penetration increases and digital devices become more affordable.
Investment Shifts: While venture capital funding may fluctuate, investment in EdTech is expected to remain strong, with a shift towards more strategic and impact-focused funding.
Key Players
“In the future, entrepreneurs will sell knowledge over products.”- Ankur Nagpal founder of Teachable
Source: CB Insights
Pre-K Education: Learn With Homer– Raised a total of $93M and was then acquired.
K-12 Education: Platforms like Kahoot! and Quizlet have brought an element of gamification to K-12 classrooms, making learning interactive and enjoyable. Meanwhile, EdTech platforms like Google Classroom and Canvas help manage classroom tasks and streamline communication between teachers, students, and parents. Other big players include Khan Academy a free world-class education platform and GoStudent for 1 on 1 tutoring.
Higher Education: Tools like Coursera, edX, and Udemy are revolutionizing higher education. These platforms provide a wide range of courses from universities around the world, giving students access to quality education regardless of location. They also offer micro-credentials, which are becoming increasingly recognized by employers.
Continuing Education and Adult Upskilling: LinkedIn Learning, Coursera provide professionals the opportunity to learn new skills, stay current in their field, and even transition to new careers. They offer a myriad of courses in fields ranging from business and tech to creative arts.
Specialized Learning: Companies like Rosetta Stone and Duolingo make language learning accessible to everyone, while platforms like MasterClass provide expert-led courses in various domains, such as writing, cooking, acting, and more.
Cohort-based Learning companies: EducateMe, Maven and and various boot camps such as LeWagon and Iron Hack for tech upskilling.
“Microlearning” or Bite-sized Learning involves absorbing knowledge in small, digestible segments, usually less than 10 minutes in duration. This method addresses time constraints, a common hurdle for employee participation in workplace learning. It not only condenses learning periods, thus increasing student engagement but also promotes information retention through repetition. Several innovative microlearning platforms have adopted this approach some examples include GoodCourse and 7Taps.
Companies Own Offerings: Google Classroom, Microsoft Teams for Education, and Apple’s educational resources.
In the era of lifelong learning, the market for educational technology has expanded dramatically. As technology continues to evolve and integrate into the education sector, we can expect to see even more niche EdTech platforms arise to meet the diverse needs of learners.
Unique Challenges
Technological infrastructure, including reliable internet access, is still a hurdle in many parts of the world.
Concerns regarding data privacy and security.
User engagement and retention, particularly in the K-12 segment, require a fine balance between education and engagement.
Articulating Unique Value Proposition for EdTech Founders
As the EdTech marketplace starts to rapidly grow and is swarming with innovation, it is crucial for founders to effectively articulate the unique value proposition (UVP) of their startups. Your UVP is essentially the backbone of your business.
Understanding and expressing your UVP is vital, particularly in the EdTech sector. This is because educational institutions, teachers, students, and parents – the primary stakeholders in EdTech – are looking for targeted solutions to specific challenges they face in the educational landscape. Whether it’s improving learning outcomes, enhancing teacher productivity, or increasing education accessibility, the ability to distinctly show how your solution addresses these challenges can make or break your fundraising efforts.
Improving Learning Outcomes
If your EdTech solution can improve learning outcomes, demonstrate this with data from pilot studies or user testimonials, showing how your product increases knowledge retention, improves grades, or develops specific skills. Highlight unique features of your product that facilitate these improved outcomes, such as AI-powered adaptive learning paths or gamified learning experiences.
Enhancing Teacher Productivity
EdTech is not only about students but also about empowering teachers. If your product can enhance teacher productivity, illustrate how it reduces their administrative burden, automates repetitive tasks, or assists in more efficient classroom management. Show how your product can help teachers spend more time doing what they do best—teaching and mentoring students.
Increasing Education Accessibility
In a world increasingly focused on equality and inclusion, EdTech solutions that increase educational accessibility have a powerful appeal. If this is your company’s strength, show how your product helps reach underprivileged communities, accommodates students with special needs, or allows flexible learning for those who can’t attend traditional classes. Concrete examples and stories will help your audience understand the real-world impact of your solution.
EdTech Shower Thoughts
First, a little flashback to the end of 2022- the value of 30 EdTech unicorns approached $100 billion, comparable to Fortune 500 companies like General Electric and American Express (that’s pretty impressive).
According to research, students following personalized learning approaches significantly outperform their peers. AI helps to address the challenge of high student-teacher ratios, providing customized learning experiences.
EdTech’s reach extends beyond traditional education, with remote work enhancing its importance in professional development. Automated identification of skill gaps and intelligent resource recommendations are seen as valuable to businesses and their employees.
The potential impact of government funding on EdTech’s growth- the trend towards technology use in education might lead to a significant portion of the available $30 billion US government funding being allocated to EdTech.
Learning Management Systems (LMS) is incredibly important in achieving scalability in EdTech. LMS not only helps manage large classrooms but also crucially harnesses data from personalized learning platforms, enabling educators to improve content and technologists to better understand user behavior.
Resources
EdTech VC connect profiles in our Fundraising CRM
From Exploding Topics:
56 Fast-Growing Edtech Companies & Startups (2023)
12 Emerging Education Trends (2023-2026)
$30B in government funding available to educators in the US
HolonIQ: 2022 closed with 30 EdTech Unicorns around the world, collectively valued at $89B
Accelerator- Imagine K12 (which is specifically focused on EdTech)
Events: SXSW EDU, and Bett Show attract educators, and GSV Ventures hosts their annual ASU + GSV summit
VCs Investing in the EdTech Space
1. NewSchools Venture Fund
About: “NewSchools Venture Fund is a is a national nonprofit venture philanthropy working to reimagine public education. Since our founding, in 1998, we have invested nearly $200 million in 200 education ventures. Our investments were instrumental in the creation of nearly 470 new schools with the potential to serve more than 200,000 students, and the development of ed tech products that serve more than 60 million students and their teachers.”
Thesis: “We are the first venture philanthropy focused on K-12 education. As a nonprofit and intermediary funder, we raise charitable donations and then grant those funds to early-stage entrepreneurs who are reimagining public education. While we have a rigorous investment process, we seek educational and social returns, not financial ones.”
Stage: Pre-Seed, Seed, Series A, Growth
EdTech Notable Investments: ClassDojo, Handshake, and Uncommon Schools.
2. EduCapital
About: The largest European Edtech & Future of Work VC. Educapital invest’s in innovative European companies with the highest potential to scale and become European and global leaders.
Thesis: We invest in Entrepreneurs shaping the future of education & future of work.
Stage: Seed, Series A, Series b, Growth
EdTech Lastest Investments: Tomorrow University of Applied Sciences, Edflex, Lunii
3. Bonsal Capital
About: We support tech-enabled, mission-driven startups and funds and leverage our experience as educators, venture capitalists, and ecosystem leaders to empower you to find the resources you need, so you can better serve your end user and customer.
Thesis: Bonsal Capital is a mission-driven partnership, and supporting education has been a core driver since our founding in 1999. With decades of experience in education as investors, practitioners, and volunteers, our principals have authentically grown a partnership that seeks founders and leaders who want to make a positive impact with a product and/or service, and who keep prospective scale and sustainability at the forefront. We support the growth of companies focused on tech-enabled services in education, and we have invested in and partnered with more than 20 such companies over the past two decades, providing human and financial capital, as well as other resources, that have made a positive impact on tens of millions of end users. We believe that, by fostering education, we can make the world a better place and feel good about our place in it.
Stage: Seed, Series A, Growth
EdTech Notable Investments: Upswing, Nepris, and Everyday Labs
4. Learn Capital
About: LearnCapital is a venture capital firm focused exclusively on funding entrepreneurs with a vision for better and smarter learning.
Thesis: “We back and build rapidly scaling tech-enabled companies that tackle the world’s biggest human-centered problems and help us all reach our full potential.”
Stage: Seed, Series A, Growth
EdTech Notable Investments: Udemy, Coursera, and Chegg.
5. Emerge Education
About: LearnCapital is a venture capital firm focused exclusively on funding entrepreneurs with a vision for better and smarter learning.
Stage: Pre-Seed and Seed
EdTech Notable Investments: Tomorrow University of Applied Sciences, Edurino, and Colossyan
6. Owl Ventures
About: “Founded in 2014, Owl Ventures is the largest venture capital firm in the world focused on the education technology market with over $2 billion in assets under management. The Silicon Valley-based firm was purposely built to partner with and help scale the world’s leading education companies across the education spectrum encompassing PreK-12, higher education, future of work (career mobility/professional learning), and “EdTech+” (intersection of EdTech and other major industries such as FinTech and healthcare).”
Thesis: “We believe there is a digital revolution rapidly unfolding in education and workforce development. This revolution is creating a historic opportunity to invest in companies that are disrupting and improving the over $6 trillion global education market. The entire education and training sector is shifting rapidly as access to the internet and connected devices has flourished. Hundreds of millions of students and teachers around the world can now leverage innovative learning platforms.”
Stage: We invest in companies at all stages from seed, early, growth, and later stages, globally.
EdTech Notable Investments: MasterClass, degreed, Khan Academy, Schoology, and Knewton.
7. Reach Capital
About: Reach supports the most promising entrepreneurs developing technology solutions for challenges in early childhood, K-12, and higher education.
Thesis: “Education is a critical engine for economic mobility. Alongside health, wellbeing, career development and healthy relationships, we are interested in all ideas that empower people to learn, grow and succeed — in school, at home, for work … wherever they go.”
Stages: “early, and support you at every stage of your journey”
EdTech Notable Investments: Guild Education, Classcraft, and Merit America.
8. General Catalyst
About: General Catalyst backs exceptional entrepreneurs who are building innovative technology companies and market leading businesses, including Airbnb, BigCommerce, ClassPass, Datalogix, Datto, Demandware, Gusto (fka ZenPayroll), The Honest Company, HubSpot, KAYAK, Oscar, Snap, Stripe, and Warby Parker. The General Catalyst team leverages its broad experience to help founders build extraordinary companies. General Catalyst has offices in Cambridge, MA, Palo Alto, CA and New York City.
Thesis: General Catalyst is a venture capital firm that makes early-stage and growth equity investments.
Stages: Seed, Series A, Series B, Growth
EdTech Notable Investments: Chegg, Coursera, and Udacity.
9. Kapor Capital
About: Kapor Capital invests in early stage gap-closing tech enabled startups.
Thesis: Kapor Capital invests in tech-driven early-stage companies committed to closing gaps of access, opportunity or outcome for low-income communities and/or communities of color in the United States. Stages: Pre- Seed, Seed, Series A, Series B
Looking for Investors? Try Visible Today!
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Related Resource: EdTech VC connect profiles in our Fundraising CRM
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Guide to CleanTech and Climate Tech in 2024 + Top VCs Investing
CleanTech and Climate Tech sectors are more crucial than ever, driving innovation to address our planet's most pressing environmental challenges. As an entrepreneur in these fields, you are part of a transformative movement focused on sustainability and climate action. However, navigating this landscape requires a unique set of strategies and insights. This comprehensive guide will provide the tools to overcome common hurdles, connect with venture capital firms actively investing in CleanTech and Climate Tech, and leverage opportunities for growth and impact.
Definition and Differentiation: CleanTech vs. Climate Tech
CleanTech (Clean Technology): CleanTech focuses on reducing industries' environmental footprints by improving efficiency, reducing waste, and utilizing renewable resources. This includes innovations in energy efficiency, renewable energy (solar, wind, hydro), green transportation, water purification, and waste management.
Climate Tech (Climate Technology): Climate Tech specifically targets mitigating climate change effects. This involves technologies that focus on carbon capture and storage, climate modeling and monitoring, and adaptation technologies to cope with the impacts of climate change.
While both sectors aim to promote sustainability, CleanTech broadly addresses environmental impacts across various industries, whereas Climate Tech is directly aimed at combating and adapting to climate change.
Current Trends and Market Analysis
Growth and Investment
The CleanTech and Climate Tech sectors are experiencing unprecedented growth, fueled by an escalating global emphasis on sustainability and stringent environmental regulations. This growth is a response to the urgent need to address climate change and a reflection of the sectors' potential for significant economic returns.
CleanTech Growth:
Global Focus: The international community's increasing commitment to sustainable practices drives growth. Countries are implementing aggressive policies to reduce carbon footprints, benefiting CleanTech innovations in renewable energy, energy efficiency, and waste management.
Investment Surge: Investors are pouring capital into CleanTech, recognizing sustainable technologies' long-term value and necessity. In 2023, global CleanTech investments surpassed previous records, signaling strong confidence in the sector.
Climate Tech Momentum:
Net-Zero Commitments: Governments and corporations worldwide are setting ambitious net-zero carbon goals. This accelerates developing and deploying Climate Tech solutions such as carbon capture and storage, climate resilience infrastructure, and advanced climate modeling tools.
Early-Stage Investments: Venture capital funding in Climate Tech has seen a notable increase, particularly in early-stage startups. This trend is driven by the recognition that early investments in disruptive technologies can yield substantial returns as these innovations mature and scale.
Technological Innovations
Rapid technological advancements are a cornerstone of growth in both CleanTech and Climate Tech. These innovations improve efficiency, reduce costs, and open new frontiers for sustainable practices.
Renewable Energy:
Solar and Wind Advances: Developing more efficient solar panels and wind turbines makes renewable energy more accessible and cost-effective. Innovations such as bifacial solar panels and floating wind farms are expanding the potential for clean energy production.
Energy Storage: Breakthroughs in battery technology, including solid-state batteries and grid-scale energy storage solutions, address the intermittent nature of renewable energy sources, facilitating a more reliable and resilient energy grid.
Electric Vehicles (EVs):
Transformation in Transportation: The EV market is experiencing explosive growth, driven by technological advancements in battery life, charging speed, and vehicle range. Innovations in EV infrastructure, such as widespread charging networks and vehicle-to-grid technology, further support this transformation.
Sustainability in Manufacturing: Companies are increasingly focusing on sustainable practices in EV manufacturing, including using recycled materials and reducing the carbon footprint of production processes.
Climate Tech Breakthroughs:
Carbon Capture and Sequestration: Significant progress in carbon capture technologies enables more efficient and cost-effective ways to remove CO2 from the atmosphere and store it securely underground.
AI-Driven Climate Modeling: The integration of artificial intelligence in climate modeling is enhancing the accuracy of climate predictions and providing valuable insights for mitigation and adaptation strategies.
Market Drivers:
Regulatory Pressures and Incentives:
Environmental Standards: Governments are implementing stricter ecological regulations, compelling industries to adopt CleanTech and Climate Tech solutions. These regulations are often accompanied by substantial financial incentives, such as tax credits, grants, and subsidies, to encourage compliance and innovation.
Policy Support: Policy frameworks supporting green technologies, including renewable energy mandates and carbon pricing mechanisms, create a favorable environment for sector growth.
Consumer Demand:
Sustainable Products and Services: Increasing consumer awareness and demand for environmentally friendly products drive companies to incorporate sustainable practices into their operations. This shift is evident across various industries, from fashion and food to transportation and energy.
Market Differentiation: Companies prioritizing sustainability are gaining a competitive edge, attracting a growing segment of eco-conscious consumers.
Corporate Sustainability Commitments:
Carbon Neutrality Pledges: Corporations commit to ambitious sustainability goals, including achieving carbon neutrality. These commitments enhance their brand reputation and drive investments in CleanTech and Climate Tech solutions.
Strategic Partnerships: Businesses are forming partnerships with CleanTech and Climate Tech startups to integrate innovative solutions into their operations, further fueling sector growth.
Key Challenges and Opportunities in Each Sector
Challenges
High Capital Requirements: Both CleanTech and Climate Tech startups often face significant upfront costs for research, development, and deployment of their technologies.
Regulatory Hurdles: Navigating complex and varying regulations across different regions can be daunting and time-consuming.
Market Adoption: Proving the viability and scalability of new technologies in real-world applications is critical and often challenging.
Opportunities
Government Support: There are numerous grants, subsidies, and incentive programs available to support CleanTech and Climate Tech initiatives.
Investor Interest: Increasing awareness of climate change impacts attracts more investors to these sectors, creating a favorable funding environment.
Technological Advancements: Ongoing innovations provide new avenues for startups to differentiate themselves and capture market share.
Corporate Partnerships: Collaborating with established corporations can provide startups with essential resources, market access, and credibility.
Related resource: The Future is Green: 15 Climate Tech Startups to Watch This Year
Focus on Impact Metrics
Highlighting the environmental impact and sustainability benefits of the CleanTech solution can attract socially conscious investors and customers.
Patagonia
Patagonia, an outdoor clothing and gear company, places a strong emphasis on impact metrics related to sustainability. The company tracks and publicizes its efforts to reduce carbon emissions, minimize water usage, and promote responsible sourcing of materials. By transparently communicating its environmental initiatives, Patagonia attracts loyal customers who align with their values, and the company’s commitment to sustainability becomes a significant driver of brand loyalty.
Patagonia’s Page: Environmental & Social Footprint
Ecolab
Ecolab, a global provider of water, hygiene, and energy technologies and services, focuses on impact metrics related to water conservation and sustainable operations. The company measures and reports on water savings achieved through its solutions, helping businesses and industries reduce water consumption and environmental impact. By demonstrating the positive environmental outcomes of its services, Ecolab attracts clients who prioritize sustainability, leading to long-term partnerships and business growth.
Ecolab’s 2030 Impact Goals
Ecolab Releases 2022 Corporate Sustainability Report, Highlights Progress Toward 2030 Impact Goals
Resources
Impact Investors and Fund Managers to Know
Climate Tech’s Evolution: The Maturation to a Competitive, Returns-Focused Thematic Investment Sector
From Clean Tech 1.0 to Climate Tech 2.0: A New Era of Investment Opportunities
The climate tech sector is booming—here are the applications VCs are most excited about
The Database of State Incentives for Renewables & Efficiency (DSIRE)
For impact investors, the Global Impact Investing Network (GIIN) offers a directory of its members, many of whom are impact investors interested in sustainable technologies.
VCs Investing in Clean Tech and Climate Tech Startups
Lowercarbon Capital
About: Lowercarbon Capital invests in decarbonization technologies across various sectors, including energy, transportation, food, and manufacturing. They fund research and invest in technologies to reduce CO2 in the atmosphere. For too long, the world has ignored the scientists, inventors, and entrepreneurs who are pursuing solutions to lower emissions, remove carbon, actively cool the planet, and save human, animal, and plant life as we know it. We are working to fix that.
Third Sphere
About: Third Sphere works for founders transforming global systems. We’ve made over 100 investments in notable firms like Cove Tool, OneWheel and Bowery Farming. We’re usually a pre-customer investor and offer traditional venture as well as credit finance, along with coaching and connections to over 12,000 customers, investors focused on re-imagining our planet. Our team is ranked in the 99th percentile of climatetech investors on NFX Signal, and Techcrunch named us one of the top 10 VCs founders love the most.
We know that climate is about more than carbon—it’s also about force multipliers like asset finance and distribution. We believe the best climate solutions don’t look like climate solutions at all, just better, faster, and cheaper products and services. We prefer rapid deployment that will get us close to 1.5C in warming while upgrading our systems to make them more resilient. But we’ll also look at moonshot opportunities because we know we need a plan B.
Thesis: A real investment is about more than capital. We invest at the earliest stages, usually pre-customer, stay close to our founders, and work with them from the inception of our relationship so they can build relationships with other founders, investors, and customers.
Breakthrough Energy Ventures
About: Launched by Bill Gates, Breakthrough Energy Ventures invests in companies developing technologies to reduce greenhouse gas emissions. Breakthrough Energy is dedicated to helping humanity avoid a climate disaster. Through investment vehicles, philanthropic programs, policy advocacy, and other activities, we’re committed to scaling the technologies we need to reach net-zero emissions by 2050.
Thesis: Breakthrough Energy Ventures provides reliable and affordable power without contributing to climate change.
Energy Impact Partners
About: Energy Impact Partners LP (EIP) is a global investment platform that invests in companies shaping the energy landscape of the future. EIP brings together entrepreneurs and the world’s most forward-looking energy and industrial companies to advance innovation. With over $2.5 billion in assets under management, EIP invests globally across venture, growth, credit, and infrastructure – and has a team of over 70 professionals based in its offices in New York, San Francisco, Palm Beach, London, Washington D.C., Cologne, and Oslo.
Thesis: We bring together incumbents and innovators in a differentiated collaborative model to build and scale businesses for substantial impact.
Generation Investment Management
About: Co-founded by former US Vice President Al Gore, Generation Investment Management focuses on sustainable investments, including Climate Tech. Since its founding in 2004, Generation has played a pioneering role in the development of sustainable and environmental, social and governance (ESG) investing.
Prelude Ventures
About: Prelude Ventures is a venture capital firm partnering with entrepreneurs to address climate change. Since 2013, we have invested in over 40 companies across advanced energy, food and agriculture, transportation and logistics, advanced materials and manufacturing, and advanced computing. We have a long-term commitment to the sector, accept informed risks, and couple a fundamental emphasis on venture-level returns with an understanding of deep-tech and hardware development timelines. Prelude manages capital exclusively for Simons family philanthropic entities and is a founding member of the Breakthrough Energy Coalition.
Thesis: We invest in the low-carbon economy.
3×5 Partners
About: In everything we do, we allow our love for each other and for the planet to be our guide. We seek out companies that are delivering advancements in clean air, food, water, shelter, education, healthcare, sanitation, and climate and environmental sustainability. When we find companies that align with our mission, we go beyond due diligence and take the time needed to build relationships grounded in trust, shared vision, transparency, and mutual accountability.
Third Derivative
About: We are building an inclusive, global ecosystem that rapidly finds, funds, and scales climate tech innovation and transforms markets.
Thesis: We are mission driven and market focused. Rising to the climate crisis challenge is a once-in-a-generation, trillion-dollar economic opportunity. That’s why we were founded with purpose: to find, fund, hone, and scale the most-promising technologies to achieve larger, faster reductions in global carbon emissions.
Evergreen Climate Innovations
About: Clean Energy Trust is a cleantech accelerator that fuels innovation to create a healthier environment and more prosperous future. Clean Energy Trust is a 501C3 public charity. Our unique funding model gives us the flexibility to invest early in promising technology and young companies. We invest across the spectrum of cleantech including energy efficiency, agriculture, energy generation, energy storage, and transportation technologies.
Sweetspot check size: $ 100K
Greentown Labs
About: Greentown Labs is a community of climate action pioneers working to design a more sustainable world. As the largest climatetech startup incubator in North America, Greentown Labs brings together startups, corporates, investors, policymakers, and many others with a focus on scaling climate solutions. Driven by the mission of providing startups the resources, knowledge, connections, and equipment they need to thrive, Greentown Labs offers lab space, shared office space, a machine shop, an electronics lab, software and business resources, and a large network of corporate customers, investors, and more. With incubators in Somerville, Mass. and Houston, Texas, Greentown Labs is home to more than 200 startups and has supported more than 500 since the incubator’s founding in 2011. These startups have collectively created more than 24,000 jobs, raised more than $4 billion in funding, and generated more than $9.8 billion in regional economic impact.
Future Energy Ventures
About: Future Energy Ventures is a unique venture capital platform that brings together corporate partners and world-class start-ups to shape the future energy landscape. Future Energy Ventures is the venture capital investment and collaboration platform of E.ON, one of Europe’s largest operators of energy networks and energy-related infrastructure and a provider of innovative customer solutions for about 50 million customers.
Thesis: Future Energy Ventures is born from the energy industry, but it understands energy must converge with other sectors to create a sustainable and prosperous future. This is why we go beyond energy to invest in companies solving problems in cities or building frontier technology. The realization of our ambition relies on collaboration and partnerships; between people and companies from many different industries.
Looking for Investors? Try Visible Today!
Use Visible to manage every part of your fundraising funnel with investor updates, fundraising pipelines, pitch deck sharing, and data rooms.
Raise capital, update investors, and engage your team from a single platform. Try Visible free for 14 days.
Related Resource: Clean Tech and Climate Tech VC profiles in our Fundraising CRM
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Understanding the Advantages and Disadvantages of Venture Capital for Startups
Venture capital can be a game-changer for startups, offering not just financial backing but a whole ecosystem of support. However, it's not without its trade-offs. This article delves into the multifaceted world of venture capital, from the substantial resources and invaluable networks it brings to the potential for diluted ownership and pressure for rapid growth. Whether you're considering venture capital for your startup or simply curious about its implications, this guide will provide you with a balanced perspective.
Advantages of Venture Capital for Startups
Venture capital offers a plethora of advantages to startups that go beyond mere financial investment. It's about injecting your business with the resources, knowledge, and networks needed to thrive in competitive markets. Let's explore how venture capital can catalyze your startup's growth and success.
Related resource: How to Find Venture Capital to Fund Your Startup: 5 Methods
Access to Significant Capital
Venture capital provides startups with significant capital that can be pivotal for scaling operations, research and development, and entering new markets. Unlike traditional financing, which may be limited or come with stringent repayment terms, venture capital offers a substantial financial runway, allowing startups to focus on growth without the immediate worry of financial constraints.
Expertise and Mentorship
Beyond capital, venture capitalists often bring a wealth of expertise and mentorship to the table. They offer strategic guidance, industry insights, and operational advice that can help navigate the complexities of scaling a startup. This mentorship can be invaluable in avoiding common pitfalls and accelerating growth.
Networking Opportunities
Securing venture capital also opens the door to a vast network of industry contacts, potential partners, and clients. These connections can be instrumental in business development, partnerships, and even future fundraising efforts. The right introductions can significantly accelerate a startup's trajectory.
Credibility and Prestige
When a VC firm decides to invest, it does so after thorough due diligence, assessing the startup's potential for growth, market opportunity, and the strength of its team. This rigorous evaluation process means that once a startup secures venture capital, it's seen as having passed a critical test of viability and potential. This perception can be incredibly beneficial in several ways:
Attracting Further Investment: With the initial VC backing, other investors are more likely to take an interest in the startup. VC funding can serve as a validation of the startup's potential, making it easier to raise additional rounds of funding. The initial VC investment often acts as a catalyst for attracting more capital, as it reduces the perceived risk for subsequent investors.
Talent Acquisition: Top-tier talent looks for opportunities that offer both growth potential and stability. VC funding enhances a startup's appeal to such individuals by providing evidence of both. The funding signifies that the startup has enough resources to scale and supports its long-term vision, making it a more attractive place for ambitious professionals looking to make their mark.
Market Positioning: A startup with venture capital backing can also command more attention in its market. Customers, suppliers, and partners often view VC-funded startups as more credible and stable, making them more likely to do business with them. This enhanced credibility can be crucial for startups looking to establish themselves in competitive markets.
Brand Visibility: VC firms often have extensive networks and platforms for promoting their investments. When a startup secures VC funding, it can benefit from this exposure, increasing its visibility in the industry and among potential customers.
No Repayment Requirement
One of the most significant advantages of VC funding over traditional loans is the absence of a repayment obligation if the startup fails. The advantage of not having to repay the investment if the startup fails frees entrepreneurs from the weight of debt, allowing them to focus fully on their vision and growth. This model not only facilitates innovation and risk-taking but also builds a partnership framework between investors and founders, where both parties are equally invested in the success of the venture.
This risk-sharing model has several advantages for startups:
Encourages Risk-taking: Knowing that failure will not result in crippling debt allows entrepreneurs to pursue innovative, high-risk ideas that could lead to significant market disruptions.
Focus on Growth: Without the burden of debt repayment, startups can channel their resources into growth and development rather than diverting funds to service debt.
Attracts Talent: The potential for significant returns without the personal financial risk associated with debt can make startups more attractive to top talent.
Investor Support: Since VCs have a vested interest in the startup's success, they are more likely to provide support, advice, and connections to help the business grow.
No Debt or Interest
In traditional financing models, such as bank loans or debt financing, the borrower is required to repay the principal amount along with interest, regardless of the business's success. This obligation can place a considerable strain on a startup's cash flow, especially in its early stages when revenues may be unpredictable or non-existent. Moreover, in the event of business failure, entrepreneurs may still be liable for the outstanding debt, which can lead to personal financial ruin in the case of personally guaranteed loans.
Venture capital, on the other hand, is invested in exchange for equity in the startup. VCs are well aware of the high risk associated with these investments, including the possibility that the startup may fail. Their return is contingent upon the success of the business, typically realized through an exit event such as an initial public offering (IPO) or acquisition. If the startup fails, the venture capital invested does not need to be repaid. This setup aligns the interests of the investors with those of the founders, as both parties succeed or fail together.
Related resource: Pros and Cons of Crowdfunding for Your Startup
Scalability
Venture capital is a critical accelerator for startups aiming to make a market impact, providing not just funds but a springboard for rapid growth and scalability. This financial backing enables startups to swiftly penetrate and expand in markets, pushing innovation and product development at an accelerated pace. It facilitates the hiring of top talent essential for scaling operations and executing ambitious growth strategies.
Furthermore, venture capital empowers startups to engage in strategic partnerships and acquisitions, enhancing their market reach and product offerings. It supports substantial investments in marketing and brand building, crucial for establishing market presence and driving customer acquisition. Additionally, venture capital aids in geographic expansion, opening doors to new markets and global opportunities.
Disadvantages of Venture Capital
While venture capital can be a powerful tool for startups, it's not without its disadvantages. The pursuit of venture funding comes with considerations that can affect your startup's trajectory and founding principles. Let's examine the potential downsides to be mindful of.
Dilution of Ownership
Accepting venture capital typically involves exchanging equity in the startup for financial investment, leading to a dilution of the founders' ownership stake. This means that founders own a smaller percentage of their company after the investment than they did before. While this influx of capital is crucial for growth, it also results in founders sharing control and potential future profits with the venture capitalists. This trade-off is an essential consideration for startups, as it impacts the founders' influence over company decisions and their share of the financial rewards in the event of the company's success.
Less Control
Venture capital investors frequently seek a say in business decisions as a condition of their investment, potentially leading to diminished control for the original owners. This involvement can range from strategic direction to operational changes, reflecting the investors' stake in the startup's success. While their expertise can be beneficial, it may also result in founders having to compromise on their vision or make decisions aligned with the investors' goals, rather than their own. This dynamic underscores a critical trade-off in venture funding: accessing significant capital and expertise at the cost of sharing decision-making power.
Pressure for High Growth
VC funding often comes with the expectation of rapid, substantial returns, placing intense pressure on startups to grow quickly. This urgency for growth can sometimes push startups towards aggressive expansion strategies that may not align with sustainable or prudent business practices. The drive for quick scalability and market dominance can lead to short-term decisions that prioritize speed over stability, such as overextending financial resources, neglecting quality control, or unsustainable customer acquisition practices. While rapid growth can propel a startup to success, this pressure can also risk its long-term viability and ethical standing, challenging founders to balance investor expectations with sustainable development.
Length and Complex Process
Securing venture capital is a time-consuming and complex process, marked by an extensive due diligence phase that demands significant attention and resources from startup founders. The journey to obtain venture funding involves multiple steps, including preparing detailed business plans, financial projections, and engaging in negotiations with potential investors.
Venture capitalists conduct thorough due diligence to assess the viability, market potential, and team capability of the startup. This scrutiny can include deep dives into the startup's financials, business model, competitive landscape, legal compliance, and more. The process ensures that investors are making informed decisions but also requires startups to be transparent and well-prepared.
This exhaustive vetting process, while necessary for securing investment, can divert founders' focus from day-to-day operations and delay immediate business development efforts. The complexity and length of securing venture capital not only test a startup's readiness and resilience but also its capacity to balance long-term fundraising goals with short-term business needs.
Focus on Exit Strategy
Venture capitalists typically enter investments with a clear exit strategy in mind, aiming for a significant return on their investment through a sale, merger, or public offering of the startup. This focus on exit events is fundamental to the venture capital model, as it dictates the timeline and manner in which investors expect to realize their profits. However, these exit strategies may not always align with the long-term vision of the startup founders.
Founders often embark on their entrepreneurial journey with a passion for their product or service and a vision for long-term growth and industry impact. In contrast, venture capitalists' emphasis on an exit within a certain timeframe can pressure startups towards rapid scaling and market positioning that prioritizes short-term valuation increases over sustainable growth and development.
This misalignment can lead to strategic conflicts, where founders are pushed to make decisions that optimize for an exit event rather than the long-term health and vision of the company. Navigating these differing objectives requires careful negotiation and alignment of interests between founders and their venture capital partners to ensure that the company can achieve both its immediate goals and long-term ambitions.
Alternatives to VC Funding
For startups wary of the potential downsides of venture capital, there are several alternative funding options available. These alternatives can offer different advantages, from less dilution of ownership to more aligned growth strategies. Let's explore a few of these options.
Related resource: Types of Venture Capital Funds: Understanding VC Stages, Financing Methods, Risks, and More
Angel Investments
Angel investments represent a vital source of capital for startups, typically coming from affluent individuals who provide funding in the early stages of a company's growth. Unlike venture capitalists, who usually invest through funds with money pooled from various sources, angel investors use their own wealth to support startups they believe in. These investors often offer capital in exchange for equity in the company, acquiring a stake in the startup's future success, or sometimes through convertible debt, which can later be converted into equity.
Angel investors not only provide financial backing but can also bring valuable expertise, industry connections, and mentorship to the startup. Their investment can be crucial during the initial phases when the startup may not yet qualify for venture capital or bank loans due to the high risk associated with early-stage ventures. By opting for angel investment, founders can secure the necessary funds to kickstart their operations, refine their product, or expand their market reach, all while potentially gaining a supportive advisor in their angel investor. This form of investment offers a blend of financial support and personal engagement, making it an attractive option for startups seeking both capital and guidance.
Revenue-based Financing
Revenue-based financing is a funding model where investors provide capital to startups in exchange for a percentage of the company's future revenues until a predetermined amount is repaid. This form of financing offers a flexible repayment schedule that directly correlates with the business's performance, making it distinct from traditional equity or debt financing.
In this model, repayments increase when revenue is high and decrease during slower business periods. This flexibility is particularly advantageous for startups with fluctuating revenue patterns, as it aligns repayment obligations with their financial capacity. Unlike equity financing, revenue-based financing does not require founders to give up ownership stakes, nor does it impose fixed repayment terms like traditional loans. Instead, the total repayment amount is usually a multiple of the invested capital, agreed upon at the outset.
Revenue-based financing is attractive for businesses that generate consistent revenues but may not yet be profitable or for those looking to avoid dilution of ownership. It allows startups to access the capital they need for growth, such as expanding operations, entering new markets, or increasing marketing efforts, without the pressures of equity dilution or rigid debt schedules. This model promotes a partnership approach, with investors directly vested in the company's revenue growth and success.
SBA Loans
Small Business Administration (SBA) loans are a government-backed financing option designed to support the growth and sustainability of small businesses. These loans are facilitated by the SBA, a U.S. government agency, in partnership with banks and lending institutions. The SBA guarantees a portion of the loan, significantly reducing the risk to lenders and enabling more favorable terms and lower interest rates for borrowers compared to traditional bank loans.
SBA loans are known for their relatively lower interest rates and longer repayment terms, making them an attractive option for startups and small businesses seeking funding without the burdensome costs associated with conventional loans. The variety of SBA loan programs caters to different business needs, from purchasing equipment and real estate to providing working capital and funding for expansion projects.
One of the key benefits of SBA loans is their accessibility to businesses that might not qualify for standard bank loans due to requirements for higher credit scores or collateral. The SBA's backing means that businesses with solid plans and potential for success have a greater chance of obtaining the financing they need, even if they're in the early stages of growth or lack extensive credit history.
However, the process of applying for an SBA loan can be more complex and time-consuming than other financing options, requiring detailed business plans, financial statements, and projections. Despite these challenges, the favorable terms, lower interest rates, and government support make SBA loans a compelling choice for small businesses and startups looking for a stable and affordable source of funding.
Connect With the Right Investors for Your Startup With Visible
Venture capital offers startups a blend of significant capital, expertise, and networking opportunities, propelling rapid growth and market impact. However, it also brings challenges such as diluted ownership and intense pressure for quick returns. Alternatives like angel investments, revenue-based financing, and SBA loans present different benefits and trade-offs, catering to various startup needs.
For founders navigating these options, Visible provides a comprehensive platform to find and connect with the right investors, track a fundraise, share a pitch deck, and manage stakeholder communications effectively. Give Visible a free try for 14 days here.
Related resource: A Guide to How Venture Capital Works for Startups and New Investors
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Fundraising
Exploring the Growing Venture Capital Scene in Japan (in 2024)
Fundraising is difficult. Building a process and system to attract and close investors can help move a fundraise along. At Visible, we often compare a venture fundraise process to a traditional B2B sales and marketing funnel.
At the top of a fundraising funnel, you need to find the right investors for your business. Like identifying a qualified lead for sales and marketing, you need to define the investor that is a fit for your business.
In the middle of the fundraising funnel, you need to nurture potential investors with meetings, emails, pitch decks, and more.
At the bottom of the fundraising funnel, you are ideally closing new investors and delighting them with regular communication.
Related Resource: A Quick Overview on VC Fund Structure
In order to help you find the best investors for the top of your fundraising funnel, we created an investor database, Visible Connect. If you’re a founder located in Japan, check out our list of investors using Connect below:
1. Genesia Ventures
As put by the team at Genesia Ventures, “It would be no exaggeration to say that the world has entered a new era through digital technologies, and startups have played and are still playing pivotal roles in this game-changing transformation. The large industries and social infrastructure that have thus far led the world are on the brink of new development through the disruptive potential of the digital sphere. Simultaneously, developed regions are establishing new industries through a digital infrastructure that is not dependent on traditional modalities or assets.
Through seed and early-stage investment in startups, we believe we can help achieve a thriving society heralded by digital technology, and we are committed to supporting these startups and accelerating their growth, ushering in a world in which everyone can create wealth and has equal opportunities.”
Learn more about Genesia Ventures by checking out their Visible Connect profile →
Location
Genesia Ventures has offices in Japan, Indonesia, and Vietnam. They invest in companies across Southeast Asia and Japan.
Portfolio Highlights
Some of Genesia Ventures’ most popular investments include:
Nudge
Activaid
Airboxr
Investment Focus
Genesia is focused on seed-stage and early-stage investments.
Related Resource: The Understandable Guide to Startup Funding Stages
2. Global Brain
As put by their team, “Global Brain’s mission is to “bring unimaginable innovation into society through business creation.” Our surrounding environment is significantly changing due to global risks including extremely intense global competition, pandemics, and global warming. We believe that in such a time of uncertainty lies the greatest opportunity.
The power of startups is vital to overcome unprecedented situations. The global economy is now largely led by many companies created right after the financial crisis.”
Learn more about Global Brain by checking out their Visible Connect profile →
Location
Global Brain has an office in Tokyo and 9 other office locations across the globe.
Portfolio Highlights
Some of Global Brain’s most popular investments include:
Base Food
August
Fluently
Investment Focus
Global Brain invests in companies across all stages and all industries.
3. Monozukuri Ventures
As put by their team, “Monozukuri Ventures is a venture capital firm based in Japan and North America specializing in hard tech. In addition to the investment, we have a dedicated team to support hardware prototyping, mass production, and business development. We aim to create a world where entrepreneurs and startups can quickly produce and sell high-quality products, even in small quantities.
Our mission is to help the world’s entrepreneurs rapidly deliver high-quality products to the market, regardless of production volume. As a global ecosystem contributor, we provide founders with essential resources such as investment, mentorship, prototyping know-how, manufacturing expertise and community support.”
Learn more about Monozukuri Ventures by checking out their Visible Connect profile →
Location
Monozukuri Ventures has offices in Japan and North America and invests in companies in Japan and the US.
Portfolio Highlights
Some of Monozukuri Ventures’ most popular investments include:
Mira
Sembient
HiberSense
Investment Focus
Monozukuri Ventures invests across all stages and primarily funds companies building hard tech.
4. D4V (Design for Ventures)
As put by the team at D4V, “We help startups deliver not only financial returns but also positive impact on the world. Our work aims to support and strengthen the culture of entrepreneurship in Japan and beyond, accelerating the growth of a more entrepreneurial economy.”
Learn more about Design For Ventures by checking out their Visible Connect profile →
Location
D4V is located in Tokyo and primarily invests in entrepreneurs and companies located in Japan.
Portfolio Highlights
Some of D4Vs most popular investments include:
Cinnamon AI
HOMMA
Nudge
Investment Focus
D4V is focused on early-stage investments. Some of the markets and verticals that they are focused on include:
Digital Disruption and Industry Transformation
New Lifestyles and Cultures
Financial Tools and Wellbeing
Lifelong Learning and Empowerment
Personal and Public Health
5. Benhamou Global Ventures
As put by their team, “BGV is an early-stage venture capital firm focused on global Enterprise 4.0 technology innovation. The partners at BGV drove successive waves of enterprise technology disruption in Silicon Valley and have years of company-building experience.
Founded by Eric Benhamou, former chairman and CEO of 3Com, Palm and co-founder of Bridge Communications, BGV is comprised of global operating executives and investors, and is often the first and most active institutional investor in its portfolio companies.”
Learn more about BGV by checking out their Visible Connect profile →
Location
BGV has offices across the globe and invests in companies across the globe. BGV has an office in Kyoto.
Portfolio Highlights
Some of BGV’s most popular investments include:
Kardinal
Everest Labs
Anch.ai
Investment Focus
BGV is focused on early-stage investments and specializes in “Enterprise 4.0 companies.”
As put by their team, “Enterprise 4.0 refers to a new wave of B2B startups that combine artificial intelligence, intelligent automation and proprietary access to data to deliver actionable insights for enterprise businesses. These disruptive startups provide full stack solutions in the form of hyper-niche vertical solutions, programmable cloud infrastructure or cloud-native security innovations to generate immediate business value and significant ROI improvements for their customers.”
Related Resource: How AI Can Support Startups & Investors + VCs Investing in AI
6. Sozo Ventures
As put by their team, “Sozo Ventures was formed in 2012 to invest in and support technology-enabled ventures with their global expansion. We invest in category leaders transforming global industries with advanced data technologies, ecommerce, enterprise cloud, fintech, IoT and healthcare IT, and other advanced solutions.
We are structured to connect the most ambitious entrepreneurial teams with the world’s most advanced and respected customers and distributors. We are at our best when we can share our expertise well before expansion strategies are set.”
Learn more about Sozo Ventures by checking out their Visible Connect profile →
Location
Sozo Ventures has office locations in Tokyo and Redwood City, CA. Sozo invests in companies across the globe.
Portfolio Highlights
Some of Sozo’s most popular investments include:
Zoom
Twitter
Coinbase
Investment Focus
As put by the team at Sozo, “We look for companies that are at the ‘Readiness’ Stage – a term coined internally that details companies that have a strong management team and culture, stable long-term investors, credible and recognizable customers and traction, and appropriate organizational structures for target international customers. Readiness is achieved by different businesses at different stages – and Sozo is set up to be a long-term flexible supporter of companies that we partner.”
7. Beenext
As put by the team at Beenext, “We don’t just invest in startups, we get ‘invested in them. BEENEXT is a partnership of the founders, by the founders, and for the founders. When a founder partners with us, it partners with the entire BEENEXT community. We provide an opportunity for co-creation, inclusive growth, knowledge-exchange, mentorship and capital support.”
Learn more about Beenext by checking out their Visible Connect profile →
Location
Beenext has an office in Singapore but invests in companies in Japan, Southeast Asia, India, and the US.
Portfolio Highlights
Some of Beenext’s most popular investments include:
AngelList
SixSense
Wellthy
Investment Focus
Beenext invests in companies across the globe and across many sectors and industries.
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Related Resource: Private Equity vs Venture Capital: Critical Differences
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