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Launching is easy; fundraising is harder.
I’ve been fortunate to be a partner at two different VC firms over the past nine years, and we’ve grown AUM 10x both times.
Based on my experience, taking the 15 steps below will help build the core of a high-performing fundraising and investor relations function.
1. Build the firm as much as possible before soliciting LPs
The more baked you are, the more investable you are. The best possible move is to invest in and warehouse some special purpose vehicles that fit your strategy. However, that may distract you from the larger goal of raising a fund, not just a special purpose vehicle.
The next best move is to build your core team, e.g., recruit an advisory board, venture partners and EIRs. Lastly, gather feedback. Yohei Nakajima, founder of Untapped.vc, said, “Before pitching LPs and building my firm, I talked with over 50 people I knew to get feedback.”
2. Set up a basic marketing toolkit: Deck, website and social media
It’s virtually mandatory to develop a detailed, data-backed deck and ideally a video pitch. Your materials should ideally meet the expectations of the Institutional Limited Partners Association, even if you’re not targeting institutions. Keep these documents constantly up to date, so all team members are aligned on key numbers, e.g., total dollars raised so far. You’ll look unprofessional if you’re not coordinated.
Fundamentally, almost no one invests based on a deck; they want to talk with the people. However, a high-credibility deck opens the door to a meeting where you then have the chance to sell yourself.
Note that limited partners view formatting as a proxy for professionalism. It’s worth investing a little money in a graphic designer who can design a consistent website, business card, logo and presentation templates.
Richard Dukas, CEO, Dukas Linden Public Relations, said, “If you don’t have a website and have no material online presence, you likely won’t get past the first hurdle with potential investors.”
When you’re fundraising, you’re selling a luxury good. The less widely marketed your fund, the more valuable it is perceived to be. For example, one LP told me she prefers to receive customized emails from fund principals, as opposed to a bulk-mailed quarterly update. An extreme example of this are venture capitalists who don’t even bother with a website, e.g., Benchmark and Thrive Capital. They are the equivalent of a nightclub with an unmarked door, but other investors will need to shape up their social media tech stack.
3. Make your online profile data-driven and internally consistent
All team members should have internally consistent and professional profiles on Linkedin at a minimum and typically also on Twitter, Facebook and/or other platforms you use. In particular, highlight the metrics by which you measured your past activities: size of exit, number of people you managed, budget you were responsible for, etc.
4. Set up a data room with a completed due diligence questionnaire
Among the most important information to include: details on return history, legal documents, fund organization chart, portfolio construction model, portfolio company one-pagers, key personnel resumes and case studies of past investments. We are using Digify to manage this.
5. Prepare FAQs for prospective LPs
You will inevitably receive a wide range of one-off questions from potential LPs. Make sure to compile all your answers in a single document so that you can recycle and refine these answers.
Source: https://techcrunch.com/2021/01/15/15-steps-to-fundraising-a-new-vc-or-private-equity-fund/
Top Hat, a startup that digitizes textbooks and turns them into an interactive experience for college students, announced on Wednesday that it has acquired yet another business: Fountainhead Press. The acquisition marks Top Hat’s third scoop of a publishing company in the past 12 months.
Consolidation is going to be huge in the next few years for edtech, as bigger players raise enough financing (and gain profits) to be able to afford other businesses.
Top Hat’s whole business proposition is a subtweet to Zoom University: It wants to make learning an active, online experience and completely digital. That focus has let them reach 3.5 million students and thousands of universities. With a new acquisition, Top Hat is bringing more content into its fold, and with it, more customers who need a better solution to a dusty textbook.
I caught up with Top Hat CEO and founder Mike Silagadze to understand what has triggered this string of content acquisitions. While the M&A isn’t tech-focused, we can learn about how a well-funded edtech startup is navigating the early innings of 2021.
We’ll talk about the shift from offline to online, edtech’s consolidation environment and why the “sell to Pearson or bust” mindset might officially be out the door for the sector.
Offline to online
Source: https://techcrunch.com/2021/01/15/learnings-from-top-hats-acquisition-spree/
Desktop Metal this morning announced its intention to purchase fellow 3D printing company EnvisionTEC. Founded in Germany in 2002, EnvisionTEC specializes in photopolymer additive manufacturing, putting its technology in more direct competition with the likes of 3D printing darling Carbon than Desktop Metal’s own existing portfolio.
The deal follows Desktop Metal’s push to go public last August as part of a growing trend of SPAC mergers. Prior to this, the company had raised no shortage of its own funds, with a rapid ascent into unicorn status on the wake of $430 million in investments. It’s spending $300 million to acquire EnvisionTEC through a combination of cash and stock.
There’s a lot of potential for Desktop Metal to grow here. EnvisionTEC has the underlying technology with the ability to print in more than 190 materials, and Desktop Metal has the resources to help scale that tech beyond what the German company has been able to build thus far.
It’s clear that dental is a pretty huge piece of this puzzle. It’s among the clearest and most immediate use cases for this sort of mass volume 3D printing — and, indeed, the company already sports around 1,000 customers in dental, including companies like Smile Direct Club. Amid the COVID-19 pandemic, the company effectively tripled its Envision One dental shipments over the previous year.
“It’s used for everything from restorations to same-day, full arch implants,” Desktop Metal CEO Ric Fulop tells TechCrunch. “Usually when you get a denture, you’ve got to wait three weeks for denture implants. This is the first time you’ve got a solution that can do it in the same day. And it’s affordable.”
Per a press release issued in the wake of the news, other existing customers include Ford and Hasbro. Fulop says the company will continue to operate as its own division after the acquisition, which is expected to close this quarter.
“We’ll be able to leverage their channel,” the executive says. “We look forward to expanding on that capability and using our channel to give them more tools to have a full solution that spans from metal to composites to biomaterials and now photopolymer printing.”
Group Nine Media revealed last month that it was forming a SPAC (short for special purpose acquisition corporation) in order to raise money for acquisitions.
The company has now moved forward with those plans, announcing last night that it had priced the SPAC’s IPO $10 at per unit, to raise a total of $200 million. It’s now trading on NASDAQ under the ticker symbol GNACU; as of 2:53pm Eastern shares were up 6.55%. (Eventually, the Class A common stock will be listed as GNAC and warrants will be listed separately as GNACW.) The offering is expected to close on January 20.
The acquisition corporation, like Group Nine itself, is led by CEO Ben Lerer (pictured above). Imagination Capital Partner Richard D. Parsons and Reddit Chief Operating Officer Jen Wong are also on the board of directors.
Group Nine was formed in 2016 with backing from Discovery, merging Thrillist, NowThis, The Dodo and Seeker. It subsequently acquired PopSugar, with co-founder Brian Sugar becoming president of both Group Nine and now Group Nine Acquisition Corp.
SPACs, also known as blank check corporations, have become an increasingly popular way for companies to raise money from the public markets. In its initial filing, Group Nine said it would use the funding “for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination.”
Source: https://techcrunch.com/2021/01/15/group-nines-spac-goes-public/
If you’ve got an Apple TV+ trial that’s set to expire sometime between now and June, good news: you’re getting some free bonus time.
Apple TV+ first launched in November of 2019, alongside a one-year free trial for anyone buying a new iPhone, iPad, iPod touch, Apple TV or Mac. As those initial trials approached their end, Apple voluntarily extended them out to February of 2021. Now they’re extending them once again.
As first reported by 9to5Mac, any trial that previously would’ve expired from February to June of 2021 will now expire in July instead. We have confirmed these plans with Apple.
Users should expect to get an email about the extension in the coming weeks. If you’re already paying for AppleTV+ or have it as part of an Apple One bundle, meanwhile, you’ll be getting a $4.99 per month credit until the end of June.
If you haven’t already, take this as an opportunity to blast through Ted Lasso, which is probably the most charming thing anyone has made for TV in a decade. Central Park is also great, though it has yet to hook me in quite the same way as Loren Bouchard’s other series (Bob’s Burgers, Home Movies).
Source: https://techcrunch.com/2021/01/15/apple-is-extending-apple-tv-trials-again/
