Teddy Solomon

𝐍𝐨𝐭 𝐚𝐥𝐥 𝐕𝐂 𝐟𝐢𝐫𝐦𝐬 𝐚𝐫𝐞 𝐜𝐫𝐞𝐚𝐭𝐞𝐝 𝐞𝐪𝐮𝐚𝐥... 𝐓𝐡𝐞𝐫𝐞 𝐚𝐫𝐞 𝟔 𝐝𝐢𝐟𝐟𝐞𝐫𝐞𝐧𝐭 𝐭𝐲𝐩𝐞𝐬 𝐨𝐟 𝐟𝐢𝐫𝐦𝐬 𝐲𝐨𝐮 𝐬𝐡𝐨𝐮𝐥𝐝 𝐤𝐧𝐨𝐰. When looking to break into VC or move to a new role within VC, it’s incredibly important to understand the nuances of different types of VC firms. The type of firm dictates your role and affects what your day-to-day looks like. It’s also incredibly important for founders to understand the different types of firms as it will affect how, when and why they support you. 𝐓𝐡𝐞𝐫𝐞 𝐚𝐫𝐞 𝟔 𝐦𝐚𝐢𝐧 𝐭𝐲𝐩𝐞𝐬 𝐨𝐟 𝐕𝐂 𝐟𝐢𝐫𝐦𝐬: 1️⃣ Micro VC 2️⃣ Institutional VC 3️⃣ Corporate VC 4️⃣ Government VC 5️⃣ Family Office 6️⃣ Angel Syndicate The quick TLDR is that all these VC firms are very different. 𝐓𝐡𝐞 𝐕𝐂 𝐟𝐢𝐫𝐦𝐬 𝐯𝐚𝐫𝐲 𝐛𝐲 𝐋𝐢𝐦𝐢𝐭𝐞𝐝 𝐏𝐚𝐫𝐭𝐧𝐞𝐫 𝐛𝐚𝐬𝐞, 𝐢𝐧𝐯𝐞𝐬𝐭𝐦𝐞𝐧𝐭 𝐬𝐭𝐚𝐠𝐞, 𝐜𝐡𝐞𝐜𝐤 𝐬𝐢𝐳𝐞𝐬, 𝐨𝐰𝐧𝐞𝐫𝐬𝐡𝐢𝐩 𝐭𝐚𝐫𝐠𝐞𝐭𝐬, 𝐝𝐢𝐥𝐢𝐠𝐞𝐧𝐜𝐞 𝐭𝐢𝐦𝐞𝐥𝐢𝐧𝐞, 𝐢𝐧𝐯𝐞𝐬𝐭𝐦𝐞𝐧𝐭 𝐨𝐛𝐣𝐞𝐜𝐭𝐢𝐯𝐞𝐬, 𝐜𝐨𝐧𝐭𝐫𝐨𝐥 𝐥𝐞𝐯𝐞𝐥𝐬, 𝐫𝐢𝐬𝐤 𝐚𝐩𝐩𝐞𝐭𝐢𝐭𝐞 + 𝐦𝐨𝐫𝐞. For VCs, this is helpful for many reasons. It can help you choose the right role for you. It can help you build out syndicates for your portfolio companies. It can help you with intentional networking. Overall, it will make you a more strategic investor. For founders, this is critical information to know as you think about who will sit on your cap table. Choosing the right partners that fit your business goals and values will be a key part of your success. #venturecapital #startup #founder #recruiting #fundraising

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Super helpful article and accompanying doc with a #Startup #Equity Calculator to determine the equity for early hires, thanks to Pear VC head of talent Matt Birnbaum! Thanks for sharing Pejman Nozad! 🙏🏼 You can read more here How to structure startup equity for early hires: https://lnkd.in/ggmpT5-Y Google Doc: https://lnkd.in/gjsvths6

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Summary: Harlem Capital, a venture capital firm focused on backing diverse founders, is raising its largest fund to date of $150 million. This would be its third fund and is a testament to the industry's continued support for diverse communities. Key takeaways: Harlem Capital was founded in 2015 with the goal of supporting diverse founders. The firm has $174 million in assets under management and has made investments in over 80 companies. The successful raising of the $150 million fund would be a show of success for both Harlem Capital and the industry's continued focus on diversity and inclusion. #venturecapital #vc #venture #diversity #dei

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Breaking into VC is hard. Here's what you need to know. Learning how to navigate recruiting & stand out is a MUST. I've done a number of panels to help demystify this topic for aspiring VCs and I want to share them here too. This is key information all aspiring VCs should know👇 Q: What’s one thing you MUST know in all VC interviews? ▶https://t.co/OrdQUMAj8V Q: What would I have done differently while going through VC recruiting? ▶https://t.co/mvwZ8oPTsK Q: Do you need investment banking experience for VC? And what do you do if don’t have it? ▶https://t.co/xyV0lrCXD3 Q: How can you participate in VC while not being full-time? ▶https://t.co/CGTRIg2zer Q: How can you get started building your network in VC when you don’t know many people in the industry? ▶https://t.co/p5lnF5rXyg Q: How do you make yourself known in the VC ecosystem, especially as a newcomer? ▶https://t.co/jvYECU4GUn Q: How should a junior VC approach building their thesis & choosing their focus areas? ▶https://t.co/XiQLqNrRFV #venturecapital #vc #recruiting 

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Super helpful #Startup #Equity Calculator to determine the equity for early hires, thanks to Pear VC head of talent Matt Birnbaum! Thanks for sharing Pejman! 🙏🏼 You can read more here How to structure startup equity for early hires: https://lnkd.in/ggmpT5-Y Google Doc: https://lnkd.in/gjsvths6

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I figured out how to break into VC 🔓 I don’t have a traditional story when it comes to breaking into VC, and you don’t have to either. For those looking to get into VC and unsure how, myself and Kenneth Kashif Thomas share our experiences on the CF_Div_Sweeps podcast hosted by Rory Mason Spotify - Audio: https://shorturl.at/swFS0. Youtube - Video: https://lnkd.in/dCTx3R8W Anyone looking for advice, Dm me and I’ll be happy to give you some tips! #podcast #venturecapital #startups #business

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The state of venture capital is wild right now. We are witnessing a surge of innovation across the spectrum: - Funds merging - VC doing PE - PE doing VC - Secondary funds - Buyout funds - Spin-out funds - Debt funds - Continuation funds - Infrastructure funds - GP turnover - Hard Tech surging - Family Office uptick

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Should you ask a VC to sign your NDA before sharing information about your startup? Check out my latest Youtube video to hear my perspective on this divisive topic. I cover: - the reasons a VC will not sign your NDA - why its a bad tactic to ask - when its appropriate to ask Many startups thrive on outcompeting their peers through innovation. Its understandable that many startup founders will want to jealously guard information about their innovation, product, and business. But its not a good strategy to ask for an NDA because it creates unnecessary barriers and has very little utility in the early stage of the fundraising process and very hard to enforce. Also, there are ways to mitigate the risks of sharing sensitive info. I am not a lawyer, and nothing I say in this video should be construed as legal advice. This is my personal opinion from ~10 years of experience as a VC investor. #venturecapital #startups #investing #NDAs https://lnkd.in/dxyRyrbG

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Allocate just released an analysis on a dataset of 253 venture funds, with only pre-2019 vintage years being included. The analysis shows a clear negative correlation between high risk / high reward investment profiles and size of venture fund, i.e. the smaller the funds, the higher the performance, but also the higher the risk. Two ways that LPs can mitigate the higher risk of smaller funds: 1. Diversify across more emerging managers, and 2. Invest across vintages with said managers. Here are the details: Small Funds (0-100MM): Mean TVPI: 4.3 Standard Deviation: 2.4 Median Portfolio Companies: 26 Mid-Sized Funds (100-250MM): Mean TVPI: 3.6 Standard Deviation: 2.0 Median Portfolio Companies: 24 Mid-Large (250-500MM): MeanTVPI: 3.0 Standard Deviation: 1.2 Median Portfolio Companies: 35 Large (500MM+): Mean TVPI: 2.7 Standard Deviation: 0.9 Median Portfolio Companies: 43

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Calling all #Founders: Venture Capital Association of Alberta (VCAA)’s Deal Flow Calls represent a great opportunity for #PreSeed to #SeriesA companies to gain exposure to some of the countries most active Venture Capital #investors. If your company is raising equity capital, I strongly encourage you to check out the link below!

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About to go live... Startup Studio portfolio VC fund. $8.5 mil. with room to oversubscribe. All deals warehoused and ready to allocate. Built in equity on day 1. Low 1 time management fee. $35k minimum investment. 506c so accredited investors only. GP's are personally invested. Multi tiered exit strategy in place. Liquidity options available at year 2. *** This presentation of Sidecar Portfolio Fund (the “Company”) is for information only and shall not constitute an offer to buy, sell, issue or subscribe for, or the solicitation of an offer to buy, sell or issue, or subscribe for any securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.***

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If I was to do a monthly podcast epiosde segment called This Month in VC 1) Who should I invite as a guest for this segment? 2) Any VC's who would be down to come on and share their stories + insights on this? Basically recapping what happened in that month in VC - It would be an under 30 minute discussion - Recorded remotely using Zoom, Riverside DM me or reply to this if interested Inspired by Harry Stebbings This Week in SaaS to try out a different format

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So much of VC recruiting is just about being seen. Let’s get aspiring VCs noticed 🌟 Along with posting open VC roles every Wednesday, I like to have posts where aspiring VCs make themselves known to VCs looking to hire. I’ve done this a handful of times and IT WORKS! Many aspiring VCs have been contacted by firms just from commenting their info. Lets do it again! Leave a comment: 👤 Name 📍 Location 💼 Desired role 📊 Stage focus 🔍 Industry focus #venturecapital #startup #recruiting #hiring

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We applied to Y Combinator and were rejected twice before being accepted for the Summer 2015 batch. It was trajectory altering for our startup Scentbird and informs so much of how I think about founders and business models that will build the next generation of breakout companies. The deadline to apply is April 22. Feel free to ask me any questions in the comments. Best of luck! Red Bike Capital #failure #venturecapital #startups

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2,725 venture firms disappeared over the last two years. To be better than average, you need to be different than average. To make money, you need be right when others are wrong. The same applies to choosing fund managers, and understanding the fund models you’re investing in. Inception funds and pre-seed institutions are a different product for allocators than early stage VC funds. Different underlying math. Different nuances to understand. https://lnkd.in/eu5j4Dr4 #venturecapital #vc #familyofffice #fundoffunds Antler

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What would you do if a prominent VC told you, "You shouldn't do this, this is a horrible idea?" Find out how Eric S. Yuan tackled this challenge in part two of my Startup Success Story on Zoom. ‼️ In case you missed it, watch Part 1 and don't miss Part 3—follow me and stay tuned for the rest of the story! Special mention of: Walt Mossberg #StartupSuccess #Zoom #EricYuan #TechHistory #Perseverance #StartupJourney #Inspiration #TechSuccess #NeverGiveUp #TechInnovation #Entrepreneurship #Startup #Founder

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Newcomer's VC Directory is updated with several new heavyweights! There’s a lot of marketing and spin when it comes to venture capital. VC firms’ websites and thought pieces often leave core questions unanswered: Who is in charge? How much money does that firm really have to invest? With our VC Directory series, we give you an easy-to-digest guide to some of the most important firms in the Valley. For this latest installment, we’re adding must-know details on six Silicon Valley heavyweights: Andreessen Horowitz, Sequoia Capital, Y Combinator, Bain Capital Ventures, IVP, and Spark Capital. They’re joining eleven firms that we’d already entered into the directory: Benchmark, Index Ventures, Lightspeed, General Catalyst, Khosla Ventures, Founders Fund, Kleiner Perkins, Greylock, Bessemer Venture Partners, Accel, and New Enterprise Associates (NEA). Their entries have all been updated as partners have joined and left, deals have been made, and funds have been raised. Check it out: https://lnkd.in/eQizqA8b

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🌟Innovative VC Firm Overcomes Exits Drought with Secondary Sales🌟 ⛵Navigating a challenging landscape where exits are scarce, Santa Barbara Venture Partners (SBVP) has pioneered a novel approach to sustain its growth and attract investors for its second fund: secondary sales. Instead of waiting for traditional exits like IPOs or acquisitions, SBVP opted to sell shares of its portfolio companies, demonstrating its ability to generate returns for investors and stand out in a competitive market. 🎤According to Dan Engel, founder and managing partner of SBVP, these secondary transactions have been a game-changer, sparking investor interest and bolstering the firm's credibility. By leveraging its recent successes, including a lucrative stake in sports-betting company DraftKings Inc.' acquisition of digital lottery app Jackpocket, SBVP seized the opportunity to return profits to its limited partners (LPs) and pave the way for its second fund. 💡Engel highlighted the challenges faced by young VC firms in raising subsequent funds, particularly amid a downturn in exit activity and heightened investor scrutiny. With traditional exit routes becoming increasingly elusive, the pressure is on for firms to demonstrate tangible returns and establish a track record of success. ✨"For us, secondary sales have been a game-changer. They've helped us return profits to our LPs and attract investors for our second fund," said Dan Engel. 💰For SBVP, the decision to pursue secondary sales was driven by the need to provide liquidity to LPs and validate its investment thesis in the eyes of prospective investors. By strategically offloading portions of its holdings in high-performing portfolio companies like Bark Technologies and Rad AI, SBVP not only generated substantial returns but also bolstered investor confidence in its ability to deliver results. ⚠Despite the complexities and potential stigma associated with early share sales, Engel emphasized the importance of prioritizing investor returns and seizing opportunities to unlock value for stakeholders. With a focus on profitability and transparency, SBVP remains committed to its mission of delivering sustainable growth and maximizing returns for its LPs. 🔍 "Returning profits to our investors is our top priority. By strategically selling shares, we're proving our commitment to delivering results and driving value for our stakeholders," added Engel. As SBVP continues to explore secondary transactions and expand its investor base, the firm stands as a testament to innovation and resilience in the face of market challenges. 🚀 ✅ Looking to raise capital for your #fund and increase the international pool of your LP #investors?   🤝 Need warm #LP introductions?   📝 Selling #secondaries to increase liquidity?   🧐 Looking for co-investments?   ▶ G+QUANT's link for inquiries and fund decks: https://lnkd.in/gjC_EuTE #VCInnovation #SecondarySalesSuccess #InvestorReturns #ValueCreation 

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Ever heard of the Mendoza Line for SaaS? The Mendoza Line is baseball jargon for a .200 batting average, the supposed threshold for offensive futility at the Major League level. It refers to Mario Mendoza - the charismatic guy in the picture. While demonstrating decent skills on the field, he struggled as a batter. His fellow teammates teased him for his poor hitting ability and coined the term Mendoza Line. When a player's batting average is below the line, it means their hit rate is not good enough for Major League Baseball. In 2018, Scale Ventures Partners introduced the "Mendoza Line for SaaS". The line shows revenue growth thresholds for each stage below which a SaaS startup is not on a clear VC-backable trajectory. It's based on two main assumptions: 1. Investors prefer to invest in companies that have the potential to get to IPO (= making it to $100M+ ARR). 2. Growth rates decline over time - which is somewhat predictable. Depending on which source you use, the growth rate for a given year should be between 70% and 85% of the growth rate in the previous year. If you want to read more about it, you can check out the corresponding saas.wtf article. Do you think it's a helpful guide or useless bs? Does it hold true in the current market environment? #saas #startups #vc #venturecapital #funding #growth

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