Norwest Venture Partners’ Post

During a session on funding methods at Creative Destruction Lab Super Session today, the presenter asked what the audience believed is the chief motivation for VCs. One founder quipped that it's raising their next fund. I actually think this is a brilliant observation. Here's an example: a founder raises a good series A and sees a path to profitability without raising again. It'll be a little slower but ultimately more sustainable and a better exit for early investors. But... The series A lead is raising their second fund and needs to show a positive track record. With no exits yet, that track record will be built on the back of portfolio company markups, which can't happen without new, higher valuations from subsequent rounds. So we have a conflict of interest that can lead to substantial friction, and possibly serious problems for the founder if they don't still have a majority stake. Food for thought for founders.

Is there light at the end of the funding tunnel? *Next week* Sifted's Eleanor Warnock will be chatting to Dan Chaplin (Dawn Capital), Gloria Baeuerlein (Puzzle Ventures) and Ertan Can (Multiple Capital) about what's in store for VC in 2024 🔮 Reserve your seat (link in comments) 👇 #venturecapital #vcfunding #startuplife

Did you know that women represent just 17% of management company owners in venture capital? Thanks to VentureForward for shining a light on the topic and for the shout out alongside this amazing group of women investors 👊. To Chris Thomas, Felix Scheuffelen, and the team at Assembly Ventures, here's to building great things together. (Psst... emerging managers hustle harder and diverse teams outperform.) #womenshistorymonth #womeninvestors

🚨Josh Felser, Raj Kapoor and Peter Sun closed their Climactic I fund of $65 million 🚨 The fund already invested in 13 portfolio companies and will focus on the intersection of software, AI and climate. The most important part is that the team include founder with real entrepreneurial experience to help founder build software for our planet earth 🌍. climactic also has two advisors who are helping navigating science and environment by Paul Hawkins🚀 and policy by Van Jones. Some of their LPs include Reid Hoffman from Greylock Chris Sacca from Lowercarbon Capital and. Ev Williams from Obvious Ventures and funds like Mayfield Fund and NFX (Gigi Levy-Weiss ). I believ that we must use the experience we have in building software to accelerate the energy transition and fight on climate. Hardware alone will not solve it and definitely not in the right pace. https://lnkd.in/e-VH-edN #venturecapital #newfund #software #funding #startupfunding #impactinvesting #climatetech

Have you registered for ACA Angel University at the Big Launch Challenge next week? Today we’re highlighting Exit Strategies, co-taught by two seasoned experts, Parker MacDonell from Rev1 Ventures and Rick Timmins from Central Texas Angel Network. This course covers the various kinds of exits that might occur as a result of investing in a start-up company and how to prepare for each.  Additional course topics include gaining a greater understanding of what the drivers are for high exit multiples and how companies can build in value from the very early stage. The course also presents details of the “Exit Strategy Canvas” that walks participants through the six key elements of exit strategy.  The exit strategy canvas is designed to clarify the variety of exit scenarios and how angels and founders can work towards mutual optimal outcomes. Register now—space is limited! https://lnkd.in/dTh-rNjM #thelaunchplace #thebiglaunchchallenge #pitchcompetition

When I raised my first round v/s now, I have had moments when I questioned whether to share certain things with investors or not. Also somewhere not sharing felt like hiding and I had the fear what if our perspectives differed and this could make decision-making a bit challenging. However over time I realized transparency is very important. Ultimately, founders and investors are passengers of the same bus which leads to the success of brand. In this video, I have tried to cover my opinions around this. Would love to hear your thoughts!!! Clensta #startupjourney #transparencymatters #foundersandinvestors https://lnkd.in/g-H8BBfj

Welcome to our new quickfire Q&A series, Meet the Managers. Our first interview is with Reece Chowdhry of Concept Ventures. Concept Ventures is a dedicated pre-seed VC fund that invests in software companies with a people-centric approach. The first question we asked Reece was which individuals helped him the most in his journey, and he answered: Sam Ettelaie (we promise we did not influence his choice!), Matt Penneycard and Dr Arjun Patel. Find out more about Reece's journey below 👇

"In this episode, The New Majority founder, Mackenzie Loy, catches up with Garry Johnson III, co-founder and CEO of Bison Venture Partners, working to create a more equitable economy for multicultural entrepreneurs. The Bison Venture Partners framework consists of 1) creating new businesses, high quality jobs, and ownership opportunities, 2) scaling access to capital, technology adoption and strategic partnerships, and 3) investing in community rounds, angel syndicates, and venture capital."