Jukka Alanen’s Post

Excited to publicly announce today that Rebellion Ventures emerges to build the future of AI super capability, generating 10-100x productivity gains. We've been partnering with entrepreneurs for some time and oversubscribed and closed our debut fund but haven't publicly disclosed it until now. We announced today our inaugural fund, which is dedicated to partnering with entrepreneurs to build what we coined the era of artificial super capability (ASC) through autonomous operations and AI agents that have the power to revolutionize business models and unleash the greatest productivity boost in human history. We foresee the shift from passive, intelligence-focused AI to action-oriented artificial super capability that drives business outcomes autonomously. In the real world, it is the context-specific ability to act that delivers results, rather than general intelligence. AI capabilities will evolve to be superior to humans in areas such as speed, cost, and accuracy. This shift will create an era of artificial super capability (ASC), with the potential to increase productivity by 10-100x. We see the emergence of a diverse AI workforce across industries, including AI workers, digital humans, autopilots, and autonomous agents. These will continuously learn, observe, think, and act 24/7 to proactively achieve business goals and elevate human work. Through the fund's companies, we target to collectively create at least $100 billion in annual productivity value for customers by 2030 based on initial ROI metrics. Our fund brings an operating track record of building companies to multi-billion dollar IPO and M&A exits and an advisor network of over 70 unicorn founders, operating executives, and industry experts in AI and automation who are LPs in the fund. We'll provide access to industry relationships, operating playbooks, and critical expertise that entrepreneurs need to build and scale disruptive startups. Our fund has thus far partnered with 12 pre-seed/seed startups creating or enabling autonomous operations and AI agents in areas such as engineering, sales, financial services, insurance, and healthcare (over half of these have already raised more capital at higher valuations). We'll partner with 25+ additional startups over the next 18 months. Recognizing our responsibility in this new era, we seek to be a force for good by elevating human work, committing to ethical practices in AI and automation, and contributing positively to societal and economic development (including pledging 1% of our profits to give back to the community). More details are in the announcement below. https://lnkd.in/gBbnAr3p

Entrepreneurs (especially first-time) may be surprised by how much investor/VC pipeline is needed to close a Seed round. Often, entrepreneurs need more “top of the funnel” than they’d think. A successful Seed raise may require targeting 100 VCs or more due to conversion rates at each stage of the process. An illustrative, simplified example of potential conversion rates at each stage: • 100 “qualified” VC prospects whose thesis/sector, stage, and geo fit your startup, and your pitch gets introduced to them by connectors (existing investors, friends, etc.), and/or you directly connect with them (note: indiscriminately spamming investors that aren't a fit doesn't help). • 40 of them take the 1st meeting. • 20 of them proceed to the 2nd meeting. • 10 engage in due diligence. • 5 invest (e.g., a larger lead and a few others). Individual mileage varies a lot based on the entrepreneur, the strength of the network/relationships, and the nature of the opportunity and startup. Some entrepreneurs may need outreach to much more than 100 prospective investors, whereas, more rarely, just a handful of conversations is enough (perhaps a successful repeat entrepreneur coming from a big exit with strong existing VC relationships). Conversion requires not just a strong pitch, a great entrepreneur, and a fit with the VC’s thesis but also factors largely outside the entrepreneur’s control. These outside factors can include, e.g., alignment with the VC’s near-term focus, how the VC prioritizes his/her pipeline of potential deals, bandwidth, timing, capital availability, etc. 𝗕𝗼𝘁𝘁𝗼𝗺 𝗹𝗶𝗻𝗲: Build a big enough qualified top of the funnel when raising a Seed round. Even if you don’t need all of it to raise the round, it’ll help you find, prioritize, and select the right investors you want to partner with. #entrepreneurs #startups #seed #fundraising #VC

What do successful Seed round pitch decks convey to investors? 🚀 While each story is unique, see below the archetypal contents and messages of successful Seed decks. ℹ️ Note: Crafting a compelling, insightful, and unique story isn't a template-filling exercise. The order and flow of these contents vary, and each topic may be covered over one or more slides, depending on how to tell the story. These archetypal contents can serve as a directional guide and a checklist of topics for a Seed deck. 💡 𝗔𝗿𝗰𝗵𝗲𝘁𝘆𝗽𝗮𝗹 𝗰𝗼𝗻𝘁𝗲𝗻𝘁𝘀 𝗼𝗳 𝘀𝘂𝗰𝗰𝗲𝘀𝘀𝗳𝘂𝗹 𝗦𝗲𝗲𝗱 𝗽𝗶𝘁𝗰𝗵 𝗱𝗲𝗰𝗸𝘀: • Powerful, inspiring 𝘃𝗶𝘀𝗶𝗼𝗻 • Significant, pressing 𝗰𝘂𝘀𝘁𝗼𝗺𝗲𝗿 𝗽𝗿𝗼𝗯𝗹𝗲𝗺 • Compelling 𝘀𝗼𝗹𝘂𝘁𝗶𝗼𝗻 to the customer problem, creating significant 𝘃𝗮𝗹𝘂𝗲 𝗳𝗼𝗿 𝗰𝘂𝘀𝘁𝗼𝗺𝗲𝗿𝘀 • Possibly an 𝗶𝗹𝗹𝘂𝘀𝘁𝗿𝗮𝘁𝗶𝗼𝗻 𝗼𝗳 𝘁𝗵𝗲 𝘀𝗼𝗹𝘂𝘁𝗶𝗼𝗻 𝗮𝗻𝗱/𝗼𝗿 𝗮 𝗱𝗲𝗺𝗼 to make it easy for investors to understand • 𝗖𝘂𝘀𝘁𝗼𝗺𝗲𝗿 𝗽𝗿𝗼𝗼𝗳 𝗽𝗼𝗶𝗻𝘁𝘀 𝗮𝗻𝗱 𝗲𝘃𝗶𝗱𝗲𝗻𝗰𝗲 𝗼𝗳 𝘁𝗿𝗮𝗰𝘁𝗶𝗼𝗻 𝘁𝗼𝘄𝗮𝗿𝗱 𝗽𝗿𝗼𝗱𝘂𝗰𝘁-𝗺𝗮𝗿𝗸𝗲𝘁 𝗳𝗶𝘁 (customer validation is highly valuable, although the level of adoption and revenue vary greatly at Seed) • Clarity on the 𝗶𝗱𝗲𝗮𝗹 𝗰𝘂𝘀𝘁𝗼𝗺𝗲𝗿 𝗽𝗿𝗼𝗳𝗶𝗹𝗲 𝗮𝗻𝗱 𝗵𝗼𝘄 𝘁𝗼 𝗺𝗮𝗿𝗸𝗲𝘁 𝗮𝗻𝗱 𝘀𝗲𝗹𝗹 𝘁𝗼 𝘁𝗵𝗲𝗺 (a thoughtful initial customer focus and GTM approach) • Large 𝗺𝗮𝗿𝗸𝗲𝘁 𝗼𝗽𝗽𝗼𝗿𝘁𝘂𝗻𝗶𝘁𝘆 (implies potential to build a large business) • Possibly clarity on '𝘄𝗵𝘆 𝗻𝗼𝘄' if not already evident from the problem, solution, and market opportunity • 𝗔𝗯𝗶𝗹𝗶𝘁𝘆 𝘁𝗼 𝘄𝗶𝗻 𝗶𝗻 𝘁𝗵𝗲 𝗺𝗮𝗿𝗸𝗲𝘁 𝘃𝘀. 𝘁𝗵𝗲 𝗰𝗼𝗺𝗽𝗲𝘁𝗶𝘁𝗶𝗼𝗻: a clear understanding of the landscape and well-justified advantages or reasons to succeed • Sound 𝗯𝘂𝘀𝗶𝗻𝗲𝘀𝘀/𝗿𝗲𝘃𝗲𝗻𝘂𝗲 𝗺𝗼𝗱𝗲𝗹 describing how the company will make money • 𝗧𝗲𝗮𝗺 that's positioned to succeed; brings valuable insights, talent, and expertise to solve the problem and build a business • Promising 𝗽𝗿𝗼𝗴𝗿𝗲𝘀𝘀 𝗮𝗻𝗱 𝗼𝘂𝘁𝗹𝗼𝗼𝗸 with projections, metrics, and/or milestones for growth • 𝗙𝘂𝗻𝗱𝗿𝗮𝗶𝘀𝗶𝗻𝗴 that makes sense for the opportunity and stage with clarity on where this round will take you (including Series A) 🧑🤝🧑 While 𝘁𝗵𝗲 𝘁𝗲𝗮𝗺 looks like just one topic in the pitch deck, it’s disproportionately important. Further, the team's capabilities are reflected across the story, showing special insights into the customer problem, deep understanding of the market, creation of a novel solution, clarity of the story, progress made thus far, etc. Decks for later rounds share many of these same contents but with a progressively greater focus on growth, scaling, metrics, and financials and a higher bar for evidence, especially for product-market fit, demand, customer acquisition, and unit economics. #startups #entrepreneurs #seed #fundraising #VC

Sharing takeaways from attending Nvidia CEO Jensen Huang’s keynote yesterday at Nvidia GTC: 1. Generative AI continues to drive the need for ever bigger computing scale and acceleration. In turn, those new computing advancements enable significant improvements in Generative AI, i.e., it’s a symbiotic loop.   2. Nvidia’s new Blackwell architecture enables bigger AI models (up to 10 trillion parameters) with much faster throughput (claimed “up to a 30x” performance, e.g., tokens per second) and “up to 25x” reduction in energy consumption. This can support more capable models (e.g., multimodal) with a faster user experience.   3. While many still think of Nvidia as a semiconductor company, it continues to expand as a broader platform and infrastructure systems vendor. The size and complexity of those systems has increased significantly. The latest system weighs 3,000 lbs.   4. The innovations in these systems, particularly in the new Blackwell platform, go well beyond the traditional semiconductor innovations. For instance, Nvidia has made major strides in networking with their NVLink Switch (1.8TB/s), which is important for overall AI infrastructure performance.   5. Jensen repeatedly said that Nvidia is working on “the full stack.” Software investments are a big part. Besides embedding software in its systems, Nvidia is broadening its software platform. For instance, Nvidia launched NIM - Nvidia inference microservices built on its CUDA platform - to make deploying pre-trained, packaged generative AI models in applications and co-pilots easier and faster.   BTW - Nvidia’s software/services revenue crossed the $1B annualized run rate last year (though still a small % of the total). Today, Nvidia mostly monetizes S/W indirectly through differentiation, ecosystem building, demand for its systems, and customer/developer retention for the platform.     6. These new computing advancements, system-wide innovations, and platform & ecosystem developments are a key part of Nvidia’s strategy to defend its moat vs. competitors and new entrants, protect its lucrative share of the industry profit pool, and position the company at the core of GenAI.   7. Jensen also highlighted opportunities in robotics (announced Project GR00T, a foundation model for humanoid robots), digital twins, and “omniverse” (announced Omniverse Cloud APIs for industrial digital twin software tools), particularly for industrial, manufacturing, and logistics. AI is a key enabler for these, too.   8. While the keynote covered a lot of ground, one notable topic it didn’t discuss was responsible & ethical AI and AI security & governance, beyond Jensen briefly mentioning that the Blackwell platform has improved encryption to protect AI models and user data.   Overall, as “a developer conference,” Nvidia GTC has significantly broadened its audience, and the keynote at the SAP Center was packed. Some people compared it to a rock concert (and Jensen wore a new leather jacket).

What is the future of AI business assistants, and how can they help business users gain insights from data, automate work, and revolutionize productivity? Rotem Alaluf, CEO & Co-Founder of Wand, and I discussed AI business assistants during our fireside chat hosted by Rebellion Ventures. Below is a link to the video. 💡 We discussed the future of AI business assistants and generative AI for enterprises, opportunities and challenges, and Rotem's insights from the frontlines of this market. ℹ️ For background, Wand is an industry pioneer with an AI business assistant (Wandy) and enterprise AI platform that gives business users access to data, insights, and automation to make their work better, simpler, and faster. Wand's natural language AI business assistant combines the power of generative AI, predictive AI, analytics, and automation, designed with enterprise needs in mind. #AI #Automation #AIBusinessAssistants #GenerativeAI #AIforBusiness https://lnkd.in/gCafZm4X

Congratulations to Todd P. Michaud and the team at HuLoop Automation for announcing your oversubscribed $5M Seed round. We at Rebellion Ventures are excited to partner with you to drive radically simple, fast, and affordable AI-powered automation. HuLoop's platform enables financial services and retail/CPG companies to automate key business processes, transforming productivity and efficiency and elevating human work. Traditional RPA and BPM solutions have been complex, time-consuming, and expensive. HuLoop democratizes automation, making it accessible to non-technical professionals and companies of all sizes. Automation has been re-imagined with AI built-in, using no-code automation and an intelligent natural language assistant to help users create and deploy intelligent agents - with human-in-the-loop management. The result for customers is a radically simple, fast, and affordable way to automate and improve their business. Many financial services and retail/CPG companies have already experienced the difference in their business.

How can software AI robots be leveraged as digital workers to revolutionize productivity and elevate human work? Jackson Fregeau, CEO & Co-Founder of Quandri, and I discussed this topic during our fireside chat hosted by Rebellion Ventures. This fireside chat was originally with a private audience, but afterward, we figured people more broadly would find this interesting so we made it open. Below is a link to the video. For background, Quandri is a fast-growing pioneer in enabling software AI robots to transform work, currently focused on insurance brokerages and agents. Quandri's customers can gain 80% cost savings, 10x faster processes, and shift humans to higher value-add work. We discussed the future of software AI robots, opportunities and challenges, and Jackson's learnings from building a pioneering startup in this market and successfully raising Series A. https://lnkd.in/gfXA6dxC

How does the performance of new and emerging boutique VC funds compare to large established VC funds? What factors explain these performance differences? We just released a new white paper that answers these questions with hard industry data: "𝐒𝐮𝐩𝐞𝐫𝐢𝐨𝐫 𝐑𝐞𝐭𝐮𝐫𝐧/𝐑𝐢𝐬𝐤 𝐎𝐩𝐩𝐨𝐫𝐭𝐮𝐧𝐢𝐭𝐢𝐞𝐬 𝐢𝐧 𝐍𝐞𝐰 𝐚𝐧𝐝 𝐄𝐦𝐞𝐫𝐠𝐢𝐧𝐠 𝐁𝐨𝐮𝐭𝐢𝐪𝐮𝐞 𝐕𝐂 𝐅𝐮𝐧𝐝𝐬." ℹ️ This paper aggregates and summarizes performance data, findings, and perspectives from VC industry data providers and analysts (e.g., Pitchbook, Cambridge Associates, Preqin) and LPs. ❌ Historically, many LPs viewed large established VC funds as the premier targets for investment due to their long history and known brands. 💡 However, 𝐢𝐧𝐝𝐮𝐬𝐭𝐫𝐲 𝐝𝐚𝐭𝐚 𝐫𝐞𝐯𝐞𝐚𝐥𝐬 𝐭𝐡𝐚𝐭 𝐧𝐞𝐰 𝐚𝐧𝐝 𝐞𝐦𝐞𝐫𝐠𝐢𝐧𝐠 𝐛𝐨𝐮𝐭𝐢𝐪𝐮𝐞 𝐕𝐂 𝐟𝐮𝐧𝐝𝐬 𝐭𝐲𝐩𝐢𝐜𝐚𝐥𝐥𝐲 𝐨𝐮𝐭𝐩𝐞𝐫𝐟𝐨𝐫𝐦 𝐥𝐚𝐫𝐠𝐞 𝐞𝐬𝐭𝐚𝐛𝐥𝐢𝐬𝐡𝐞𝐝 𝐕𝐂 𝐟𝐮𝐧𝐝𝐬. New and emerging boutique VC funds typically deliver higher IRRs and return multiples than large established VC funds. Most of the top-performing VC funds in the industry are small, new and emerging boutiques. 📈 Interestingly, 𝐭𝐡𝐞 𝐬𝐮𝐩𝐞𝐫𝐢𝐨𝐫 𝐫𝐞𝐭𝐮𝐫𝐧 𝐩𝐫𝐨𝐟𝐢𝐥𝐞 𝐨𝐟 𝐧𝐞𝐰 𝐚𝐧𝐝 𝐞𝐦𝐞𝐫𝐠𝐢𝐧𝐠 𝐛𝐨𝐮𝐭𝐢𝐪𝐮𝐞 𝐕𝐂 𝐟𝐮𝐧𝐝𝐬 𝐢𝐬 𝐧𝐨𝐭 𝐚𝐬𝐬𝐨𝐜𝐢𝐚𝐭𝐞𝐝 𝐰𝐢𝐭𝐡 𝐚 𝐡𝐢𝐠𝐡𝐞𝐫 𝐫𝐢𝐬𝐤 𝐢𝐧 𝐭𝐞𝐫𝐦𝐬 𝐨𝐟 𝐝𝐨𝐰𝐧𝐬𝐢𝐝𝐞 𝐩𝐞𝐫𝐟𝐨𝐫𝐦𝐚𝐧𝐜𝐞. In fact, data shows that the bottom quartile of large established funds has worse returns than the bottom quartile of new and emerging boutique VC funds, meaning that the downside risk can be worse in a large established fund. 💪 𝐓𝐡𝐞 𝐬𝐮𝐩𝐞𝐫𝐢𝐨𝐫 𝐫𝐞𝐭𝐮𝐫𝐧/𝐫𝐢𝐬𝐤 𝐩𝐞𝐫𝐟𝐨𝐫𝐦𝐚𝐧𝐜𝐞 𝐨𝐟 𝐧𝐞𝐰 𝐚𝐧𝐝 𝐞𝐦𝐞𝐫𝐠𝐢𝐧𝐠 𝐛𝐨𝐮𝐭𝐢𝐪𝐮𝐞 𝐕𝐂 𝐟𝐮𝐧𝐝𝐬 𝐜𝐚𝐧 𝐛𝐞 𝐞𝐱𝐩𝐥𝐚𝐢𝐧𝐞𝐝 𝐛𝐲 𝐟𝐢𝐯𝐞 𝐤𝐞𝐲 𝐟𝐚𝐜𝐭𝐨𝐫𝐬:  1. New and emerging boutique VCs have smaller funds which are easier to earn high returns with.  2. They are more specialized, providing advantages in sourcing, selection, and value-add.  3. They allocate all or most of their capital to seed/pre-seed, which can enable higher multiples than multi-stage investing.  4. Their economic incentives are more dependent on maximizing investment returns (rather than on management fees).  5. They are extra-motivated as newcomers to prove themselves. See the white paper for more data and insights. https://lnkd.in/dnkmibs3

I’ll discuss the #ai investment landscape and the current climate in AI from a Seed VC perspective at an AI VC event hosted by VC Lab. You can join this panel discussion on Nov 8th at 8 am PT(on Zoom) - register here: https://fi.co/e/330253. Thanks VC Lab for inviting me - should be a fun conversation.