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- VC Math, a Prediction for the Next 18 Months, and What Pre-Seed Investors Look For
VC Math, a Prediction for the Next 18 Months, and What Pre-Seed Investors Look For
A newsletter for founders & friends (14th edition)
Hey š
Welcome to the 14th edition of Re:Vitalize, a newsletter with tactics, strategies, and stories on building companies plus cool things weāre seeing in the future of work.
Did you missĀ last weekās newsletter about top startup accelerators, sharpening your analytical thinking, and managing burn rate? Subscribe below so you never miss anotherš
Top 3 Tweets
š„ A Prediction for the Next 18 Months
Over the next 18 months, we will see an unprecedented number of startups that will shutdown, conduct layoffs, and close down rounds.
Here is an overly simplified deep dive:
— Michael Karnjanaprakorn (@mikekarnj)
Apr 19, 2022
š„ VC Math
did the math today for an LP -
we get 550 deals / month at top of funnel
we meet with 160
we conduct dd on 5-6
we invest in 1-2< .5% investment rate
narrowing the field based on strike zone focus is where the magic happens
— Gale Wilkinson @VITALIZE (@galeforceVC)
Apr 18, 2022
š„ What Pre-Seed Investors Look For
Some of the responses to this tweet by yours truly
1) founderās ability to execute 2) addressing a true white space and not ānext best widgetā 3) ok to be pre-revenue but not pre-traction < more than just an idea and validated thru a pilot, customer surveys, etc
— Diana Melencio šŗšøšµš (@DianaMelencio)
Apr 22, 2022
@galeforceVC@carolinecasson_@MacConwell@dunkhippo33@irrvrntVC@startupstella@ArlanWasHere The holy trio of
š„ Compelling team: serial entrepreneurs or promising 1st-time founders, focus, grit, founder/oppty fit
š Big market oppty: clear pain point, large TAM, tailwinds
šŖ Differentiated solution: unique angle on competition & wedge to claim a stake in the long-term— David Chang (@changds)
Apr 21, 2022
@justingordon212@galeforceVC@MacConwell@dunkhippo33@irrvrntVC@startupstella@ArlanWasHere Agree with + massive disruptive idea š” + strategic data science strategy as part of differentiator š
— Caroline Casson (@carolinecasson_)
Apr 21, 2022
90% founding team. Need someone who is committed, persistent, and market-relevant.
I take the specific idea with a grain of salt, because I actually expect them to have to pivot (maybe multiple times).
Question then becomes: Can this team pivot and find their market?
— Paul Johnson (@PaulJohnsonMN)
Apr 21, 2022
@galeforceVC@carolinecasson_@MacConwell@dunkhippo33@changds@startupstella@ArlanWasHere Differentiated approach to a large problem where they have unique insights. Real thought / work > customer interviews, time spent coding, etc.
— Andrew Gluck | Early-Stage VC ā”ļø (@irrvrntVC)
Apr 21, 2022
Understanding of prototype/market fit (customer feedback) and some leading indication of traction (customer waitlist, email sign-ups, etc.)
Team should have domain expertise and willingness to share lessons
...and some indication of cash flow potential / slower burn rate.
— Alex š° (@ARski34)
Apr 21, 2022
Resources
The new START program from a16z
Alternative funding options for founders
A platform for finding angel investors
THE list of VC lists
A tool for B2B prospecting
7 different growth loops to implement
The complete guide to content optimization
Future of Work Reads
The Amazonification of the American workforce (Vox)
Five Surprising Ways The Metaverse Meets The Future Of Work (Forbes)
What It Looks Like When Architects Build a Future of Work Space for Themselves (TIME)
Hybrid work: Making it fit with your diversity, equity, and inclusion strategy (McKinsey)
How Shifts in Remote Behavior Affect Employee Well-Being (MIT Sloan Management Review)
The World of VITALIZE
Claire Schmidt, Founder & CEO of All Voices (VITALIZE Portfolio Company), was on the FemTech Focus podcast
VITALIZE Angels currently has 3 live deals
This week,Ā The VITALIZE PodcastĀ featured Deena Shakir, Partner at Lux Capital, a venture firm with $4B of AUM that invests in emerging science and technology ventures atĀ the outermost edges of what is possible
Open jobs at Vitalize portfolio companies
Future of Work Funding Rounds
Checkr raised a $120M Series E
Checkr automates and speeds up the process of professional background checks.
Top Investors: GV, Y Combinator, Accel, Fidelity Management and Research Company, T. Rowe Price
Mutiny raised a $50M Series B
Mutiny offers AI technology to optimize ads and landing pages based on customer behavior.
Top Investors: Sequoia Capital, Insight Partners, Y Combinator, Tiger Global Management, Liquid 2 Ventures
Shipium raised a $27.5M Series A
Shipium operates as an e-commerce logistics company that helps companies provide a faster shopping experience for customers.
Top Investors: Insight Partners, Good Friends, PSL Ventures, Trilogy Equity Partners, Christopher North
Slope raised a $24M Series A
Buy Now, Pay Later solution for B2B purchases
Top Investors: Union Square Ventures, Global Founders Capital, Monashees, William Hockey, Arash Ferdowsi
Playbook raised an $18M Series A
Playbook is an āeasy-to-useā cloud storage and sharing tool for freelancers and designers and applies tech such as image tagging to photos and videos, āturning a usually dry view of files into an expressive Pinterest-like gallery.
Top Investors: Founders Fund, Elad Gil, Bain Capital Ventures, Backend Capital, Inovia Capital
Compt raised a $13M Series A
Compt is a perk management software that helps companies create, manage, and streamline perk stipends that delight employees.
Top Investors: Battery Ventures, Slack Fund, Harlem Capital Partners, Impellent Ventures
Written byĀ Justin Gordon, Director of Marketing atĀ VITALIZE, a venture capital firm and 300+ memberĀ angel investing community for everyoneĀ investing in U.S.-based B2B software founders in the work revolution.Ā Find us onĀ Twitter,Ā LinkedIn, andĀ YouTube.