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Vancouver has emerged as a thriving hub for startups, offering a vibrant ecosystem fueled by innovation, talent, and a supportive community. Whether you're an entrepreneur seeking funding or simply curious about the city's dynamic investment landscape, understanding the key players in Vancouver’s venture capital scene is essential. From cleantech to SaaS, Vancouver’s investors are backing groundbreaking ideas and mission-driven founders who are shaping the future. In this article, we’ll introduce you to some of Vancouver's top venture capital firms and investors, highlighting their investment theses, sweet spot check sizes, and the types of companies they’re looking to support. Whether you’re a founder ready to scale or an investor seeking inspiration, this guide will provide valuable insights into the opportunities available in one of Canada’s most exciting startup ecosystems. Top Vancouver VCs Investing TIMIA Capital About: TIMIA Capital is focused on providing growth capital to B2B SaaS companies. Its revenue financing option complements both debt and equity financing while allowing entrepreneurs and existing stakeholders to retain ownership and control of their business. Sweetspot check size: $ 2.50M Traction metrics requirements: Growing around 20% or more, not burning more than 50% MRR, gross margins of 50% or more, $2-20m in annual revenues. For SaaS companies, we'd expect gm% >70% but for non-saas around 50%. Sweet spot check: $500k - $3m Thesis: Non-dilutive growth capital GetFresh Venture Growth Advisory Sweetspot check size: $ 50K Traction metrics requirements: Looking for signals of captivated demand and a business model that is profitable and scalable. - Growth of inbound demand and signal to high lifetime value customers, even if CAC is high. - Gross Margin should be at least 60% - At least 15% are high LTV customers Thesis: Companies with proof of early market traction and captivated audiences Vanedge Capital About: Vanedge Capital is a Vancouver-based early-stage venture capital fund investing in technology inflection points in Analytics, Hard Tech, and Computational Biology. Chrysalix Venture Capital About: Chrysalix Energy invests in and supports game changing clean technology companies that are helping to build the new energy economy. They invest in early to mid-stage companies with exceptional teams developing products and business models that change how they use natural resources to support sustainable economic activity, while minimizing environmental impacts. Version One Ventures About: Version One Ventures is an early-stage fund investing in outstanding consumer internet, SaaS, and mobile entrepreneurs. Thesis: Backing the next generation of mission-driven technology founders. Renewal Funds About: Renewal Funds is a sustainability focused impact venture capital fund. We support exceptional founders building technology and platform businesses driving meaningful climate and ecosystem impacts at scale. Thesis: Renewal Funds invests across five primary sustainability themes, focusing on the opportunities where our expertise, network and deal flow best position us to support mission-aligned founders building high impact companies: Energy transition – Platform and product companies helping utilities, businesses and consumers transition to clean energy Mobility – Connected infrastructure and mobility services to optimize and decarbonize transportation Food Systems – Products, platforms and technologies that support a sustainable food and agricultural system Zero Waste – Innovative platforms, materials and technologies that support the pillars of a circular economy including waste reduction, reuse and recycling Natural Resources – Technology and business model innovation to conserve natural resources and biodiversity Active Impact Investments About: Founded in 2018, Active Impact Investments is a Certified BCorp based in Vancouver, BC, whose mission is to support environmental sustainability through profitable investment. With three limited partnership funds with over $145M in assets under management, we provide funds and talent to accelerate the growth of early-stage climate tech companies with $200K to $3M in revenue and significant growth potential. Active Impact’s portfolio includes and is seeking some of the most successful startups in North America that are capable of achieving venture scale and becoming extremely profitable while solving the most urgent environmental issues. Pangaea Ventures About: Pangaea Ventures has been at the forefront of hard tech innovation. We leverage our expertise to support groundbreaking companies that have the potential to reshape industries and solve for some of the planet's biggest problems. We seek to generate meaningful returns for our investors by backing breakthrough innovations that deliver transformative solutions for planetary health. Launch Academy Launch Academy is a tech accelerator that provides the mentorship, resources, network and environment entrepreneurs need to launch, fund and grow their startups. Since 2012, Launch About: Academy has worked with more than 6000 entrepreneurs of which 300 have grown their startups to Seed and Series A stage and raised over $2.5 Billion in funding. Launch Academy is a designated provider for the Canadian Startup Visa Program and has worked with over 100 companies from over 35 different countries and has helped them expand and grow their businesses into North America while simultaneously helping their founders build new roots for their families in Canada. Why Vancouver is a Thriving Hub for Startups Vancouver continues to solidify its position as one of Canada’s most dynamic startup ecosystems, offering a fertile environment for innovation and entrepreneurship. The city’s strategic location, diverse talent pool, and strong government support have been instrumental in its growth, making it a global contender in the startup space. Overview of Vancouver's Startup Ecosystem As of 2025, Vancouver boasts a tech workforce of nearly 150,000, making it Canada’s third-largest metropolitan area for tech employment, following Toronto and Montreal. The city’s proximity to Silicon Valley and other U.S. markets provides startups with unparalleled access to international investors and customers. Vancouver’s multicultural population and high quality of life make it an attractive destination for global talent. The city has also been recognized globally for its startup ecosystem. According to the 2024 Global Startup Ecosystem Report by Startup Genome, Vancouver ranks among the top technology ecosystems worldwide, highlighting its strengths in cleantech, AI, and life sciences. Key Industries Driving Innovation in Vancouver Technology: Vancouver is a hub for software development, artificial intelligence, and gaming. Companies like Slack and Hootsuite, which originated in Vancouver, have set a precedent for global success. Cleantech: The city is a leader in clean technology, with startups focusing on renewable energy, sustainable agriculture, and environmental solutions. Organizations like Foresight Canada and Innovate BC actively support cleantech innovation. Biotech and Healthtech: Vancouver’s biotech sector is thriving, with companies developing groundbreaking solutions in healthcare and life sciences. The city’s research institutions and access to funding have made it a hotspot for biotech innovation. Recent Growth in Venture Capital Funding Vancouver’s startup ecosystem has seen significant growth in venture capital funding. In 2024, the city attracted record-breaking investments, with several startups securing multi-million-dollar funding rounds. For instance, cleantech startup Veritree was recognized as one of Canada’s most investable ventures, while other companies like SkyAcres and TIMEZYX gained attention for their innovative solutions (Techcouver). Government and Community Support Vancouver’s startup ecosystem benefits from robust government initiatives, such as the Industrial Research Assistance Program (IRAP) and the Scientific Research and Experimental Development (SR&ED) tax credits. These programs provide financial support and incentives for innovation. Community-driven events like Vancouver Startup Week also foster collaboration and networking among entrepreneurs, investors, and industry leaders). Key Networking Events and Opportunities in Vancouver Vancouver’s vibrant startup ecosystem is supported by a variety of networking events, coworking spaces, and accelerators that foster collaboration and innovation. These opportunities are essential for founders looking to connect with investors, mentors, and peers. Major Startup and Tech Events in Vancouver Vancouver Startup Week (VSW) VSW is a week-long celebration of entrepreneurship, featuring workshops, investor panels, pitch competitions, and networking events. It connects founders, investors, and industry leaders to foster collaboration and innovation. Gain insights, refine your pitch, and build lasting relationships within the startup community. May 20-23, 2025 Web Summit Vancouver One of the world’s largest tech conferences, Web Summit Vancouver brings together over 15,000 attendees, including entrepreneurs, investors, and global tech leaders. Access keynote speeches, startup showcases, and networking opportunities with international participants. May 27-30, 2025 TechVancouver Meetups Regular meetups featuring talks by successful entrepreneurs and industry experts. These events are designed to inspire and connect the local tech community. Learn from experienced founders and network with like-minded individuals. BC Tech ScaleUp Academy Webinars A series of online events focused on topics like hiring, raising capital, and managing exits. Gain practical advice from experts to scale your startup. Coworking Spaces and Accelerators Hosting Networking Events Vancouver’s startup ecosystem thrives on collaboration, and coworking spaces and accelerators play a pivotal role in fostering connections among entrepreneurs, investors, and industry leaders. These spaces not only provide physical infrastructure but also host events that help founders build relationships, gain insights, and grow their businesses. Below are some of the most prominent coworking spaces and accelerators in Vancouver that regularly host networking events. Launch Academy Launch Academy is one of Vancouver’s most prominent startup hubs, offering a comprehensive range of resources for early-stage entrepreneurs. Known as a launchpad for startups, it has supported over 6,000 entrepreneurs since its inception. What They Offer: Launch Academy provides mentorship, access to investors, and a structured program to help startups refine their business models and scale. Networking Events: Demo Days: Founders pitch their startups to investors and industry leaders. Workshops: Topics include fundraising, product development, and scaling strategies. Community Mixers: Informal networking events to connect with other entrepreneurs and mentors. Why It’s Valuable: Launch Academy’s events are designed to help founders build meaningful connections and gain actionable advice from experienced professionals. The Cube The Cube is a coworking space dedicated to startups in the virtual reality (VR) and augmented reality (AR) industries. It is a hub for innovation in immersive technologies and provides a collaborative environment for entrepreneurs in this niche. What They Offer: The Cube provides access to specialized equipment, mentorship, and a community of like-minded innovators in the VR/AR space. Networking Events: Industry Panels: Discussions with leaders in VR/AR technology. Networking Mixers: Opportunities to connect with investors, developers, and other startups in the immersive tech space. Workshops: Focused on technical skills, product development, and market trends in VR/AR. Why It’s Valuable: The Cube’s events are tailored to the unique needs of VR/AR startups, making it an essential resource for entrepreneurs in this field. Innovate BC Innovate BC is a government-supported organization that plays a key role in fostering innovation and entrepreneurship across British Columbia. It provides funding, mentorship, and connections to help startups succeed. What They Offer: Innovate BC supports startups through grants, competitions, and access to a network of industry experts. Networking Events: Funding Workshops: Learn how to secure grants and venture capital. Pitch Competitions: Opportunities to showcase your startup to investors and win funding. Innovation Forums: Events that bring together entrepreneurs, researchers, and industry leaders to discuss emerging trends. Why It’s Valuable: Innovate BC’s events are ideal for startups looking to secure funding and gain exposure to a broader network of stakeholders. Spring Activator Spring Activator is a global startup school and accelerator with a focus on impact-driven businesses. It helps entrepreneurs build sustainable and socially responsible companies. What They Offer: Spring Activator provides training programs, mentorship, and access to a global network of impact investors. Networking Events: Funding Roundtables: Intimate sessions where founders can connect with impact investors. Pitch Nights: Opportunities to present your business to a panel of investors and receive feedback. Impact-Focused Networking Events: Events designed to connect socially conscious entrepreneurs with like-minded individuals and organizations. Why It’s Valuable: Spring Activator’s focus on impact-driven businesses makes it a unique resource for entrepreneurs looking to create meaningful change through their ventures. And-Co And-Co is a premium coworking space in Vancouver that caters to entrepreneurs, freelancers, and small businesses. It combines a professional workspace with a vibrant community. What They Offer: And-Co provides state-of-the-art facilities, private offices, and shared workspaces, along with a calendar of events to foster collaboration. Networking Events: Community Mixers: Regular events to connect members and foster collaboration. Workshops and Panels: Covering topics like leadership, marketing, and scaling a business. Special Events: Partnered events with local organizations to bring in guest speakers and industry experts. Why It’s Valuable: And-Co’s events are designed to help members expand their networks and gain insights from industry leaders. Connect With Investors in Vancouver Using Visible At Visible, we often times compare a fundraise to a B2B sales and marketing funnel. At the top of your funnel, you are finding new investors. In the middle, you are nurturing and pitching potential investors. At the bottom of the funnel, you are working through diligence and ideally closing new investors. With the introduction of data rooms, you can now manage every aspect of your fundraising funnel with Visible. Find investors at the top of your funnel with our free investor database, Visible Connect and find a filtered list of Vancouver's investors here. Track your conversations and move them through your funnel with our Fundraising CRM Share your pitch deck and monthly updates with potential investors Organize and share your most vital fundraising documents with data rooms Manage your fundraise from start to finish with Visible. Give it a free try for 14 days here.

Sydney has emerged as one of the most dynamic startup ecosystems in the Southern Hemisphere, attracting founders and investors alike. With a thriving tech scene, supportive government initiatives, and a strong talent pool, the city offers fertile ground for startups looking to scale. For founders seeking venture capital to fuel their growth, Sydney is home to numerous investors with diverse expertise and check sizes. From early-stage funding to Series A and beyond, these venture capital firms provide not only capital but also valuable mentorship, strategic advice, and networking opportunities. In this article, we’ve curated a list of the top VCs in Sydney that are actively supporting startups across various industries, including fintech, health tech, climate tech, and more. Whether you’re a first-time founder or a seasoned entrepreneur, this guide will help you navigate Sydney’s investor landscape and connect with the right partners for your fundraising journey. Top VCs in Sydney Macdoch Ventures About: Macdoch Ventures is a private Sydney-based venture firm helping startups with financing, business development and other strategic advice. Sweetspot check size: $ 500K Thesis: Supporting Australian and New Zealand companies to launch globally, right at the beginning. AirTree Ventures About: AirTree Ventures is a group of experienced investors and entrepreneurs based in Sydney. Main Sequence Ventures About: Backing the world's most ambitious founders who leverage public research to build the next set of global industries. No Brand About: No Brand is a private investment company focussed on opportunities empowered by technology. Our focus is on backing mission driven leaders, who are building for a long term horizon and benefit from online platforms, community or network effects. Sweetspot check size: $ 500K Reinventure About: Reinventure makes investments from seed through to Series A, alongside Westpac Banking Corporation as a primary LP. Sweetspot check size: $3M Telstra Ventures About: Telstra Ventures invests in market leading companies, mobile cloud media, and other industries. Grok Ventures About: Grok Ventures is a private investment company. They back world-class teams solving big problems to shape a better future. They invest in fast growing technology-enabled businesses. Tidal Ventures About: We are insatiably curious technologists who partner with disruptive companies to revolutionise industries. Armed with an unmatched understanding of how technology catalyses transformation within our targeted verticals, we leverage our extensive hands-on experience to build and scale technology companies. We engage closely with founders, acting as strategic partners to see around corners and unlock their full potential. We don’t just invest capital; we invest the necessary time and expertise at every stage of a company’s journey to realise the upside potential while mitigating against downside risk. Tenacious Ventures About: Tenacious Ventures is a venture capital firm that supports early-stage agri-food innovators. Sweetspot check size: $ 750K Thesis: We are a high conviction, low-volume, high-support early stage investor in agri-food innovation. Ellerston Capital About: Ellerston Capital (Ellerston), is a specialist fund manager offering investors a range of managed investment fund Sweetspot check size: $ 20M Key Trends Shaping Sydney’s Startup Ecosystem in 2025 Sydney’s startup ecosystem continues to thrive as one of the most dynamic and innovative hubs in the Southern Hemisphere. In 2025, several key trends are shaping the landscape, driven by advancements in technology, sustainability, and investment strategies. Below are the most significant trends influencing Sydney’s startup ecosystem. Growth in Specific Sectors: Fintech, Health Tech, and Climate Tech Fintech: Sydney remains a hotspot for fintech innovation, with startups leveraging blockchain, AI, and digital payment systems to revolutionize financial services. The city’s fintech ecosystem benefits from strong government support and a growing pool of tech-savvy talent. Notable fintech startups in Sydney include Afterpay and Airwallex, which have gained global recognition. Health Tech: The health tech sector is undergoing a transformation, shifting from reactive care to proactive, personalized solutions. Startups are using AI and data analytics to improve patient outcomes and accessibility. For example, Sydney’s Westmead Health and Innovation District has become a hub for health tech innovation, supported by government grants and partnerships with research institutions. Climate Tech: As Australia transitions to a net-zero economy, Sydney is leading the charge in climate tech innovation. Startups in this sector are developing solutions for renewable energy, carbon capture, and sustainable agriculture. Companies like Viridios AI, which raised $35 million in Series B funding, exemplify the city’s commitment to sustainability. Increasing Focus on Sustainability and Impact Investing Sustainability has evolved from a compliance requirement to a strategic advantage for startups. Investors are increasingly prioritizing companies that align with environmental, social, and governance (ESG) principles. This trend is driven by growing consumer demand for sustainable products and services, as well as government incentives for green innovation. Sydney’s startups are at the forefront of developing technologies that address climate resilience and sustainability challenges. For instance, the city is home to 32% of Australia’s climate tech companies, making it a key player in the global push for green innovation. Impact investing is also gaining traction, with venture capitalists seeking opportunities that deliver both financial returns and positive social or environmental outcomes. This shift reflects a broader global trend toward responsible investing. Rise of Corporate Venture Capital in Sydney Corporate venture capital (CVC) is increasingly important in Sydney’s startup ecosystem. Large corporations are establishing dedicated investment arms to support early-stage startups, particularly in sectors that align with their strategic goals. Companies like Telstra Ventures and Reinventure Group (backed by Westpac) are leading the way in CVC, providing funding and access to industry expertise, networks, and resources. These partnerships are helping startups scale more effectively and enter new markets. The rise of CVC reflects a shift in the investment landscape, where corporations recognize the value of collaborating with startups to drive innovation and stay competitive. This trend is expected to grow as more companies seek to integrate startup-driven solutions into their operations. Top Networking Events and Communities for Sydney Founders Networking is a cornerstone of success for startup founders, and Sydney offers a vibrant ecosystem of events, communities, and platforms to help entrepreneurs connect, collaborate, and grow. Below is a curated list of key networking opportunities for founders in Sydney, including events, online communities, and the role of accelerators and incubators. Events, Meetups, and Conferences Techstars Startup Weekend Sydney A 54-hour immersive event where founders, mentors, and investors collaborate to brainstorm, develop, and pitch startup ideas. This event is ideal for early-stage entrepreneurs looking to build their network and gain hands-on experience in launching a business. Spark Festival Australia’s largest event for startups, innovators, and entrepreneurs. Spark Festival features workshops, panel discussions, and networking sessions, making it a must-attend for founders seeking inspiration and connections. Global Startups Club Networking Events Regular breakfast meetups and networking sessions hosted in Sydney’s CBD. These events provide opportunities for founders to pitch their ideas, engage in expert discussions, and connect with investors and industry leaders. Startup&Angels Sydney A networking event series connecting entrepreneurs, investors, and industry leaders. These events feature panel discussions, startup pitches, and opportunities to explore the latest trends in the startup ecosystem. Online Communities and Platforms TechSydney A community-driven platform that connects Sydney’s tech ecosystem. TechSydney offers resources, events, and forums for founders to collaborate and share insights. Startup Genome A global platform that provides insights into Sydney’s startup ecosystem, including funding opportunities, industry trends, and networking events. LinkedIn Groups Groups like "Sydney Startups" and "Australian Entrepreneurs" on LinkedIn are excellent for connecting with local founders, sharing resources, and staying updated on upcoming events. Accelerators and Incubators Accelerators and incubators play a crucial role in fostering connections and providing resources for startups. In Sydney, these programs not only offer mentorship and funding but also create opportunities for founders to network with peers, investors, and industry experts. Startmate One of Australia’s leading accelerators, Startmate provides a 12-week program that connects founders with mentors, investors, and a supportive community. Cicada Innovations A deep-tech incubator based in Sydney, Cicada Innovations supports startups in health tech, climate tech, and advanced manufacturing. Their programs include networking events and access to industry experts. Fishburners A co-working space and incubator that hosts regular networking events, workshops, and pitch nights. Fishburners is a hub for early-stage startups looking to grow their network. Connect With Investors in Sydney Using Visible At Visible, we often times compare a fundraise to a B2B sales and marketing funnel. At the top of your funnel, you are finding new investors. In the middle, you are nurturing and pitching potential investors. At the bottom of the funnel, you are working through diligence and ideally closing new investors. With the introduction of data rooms, you can now manage every aspect of your fundraising funnel with Visible. Find investors at the top of your funnel with our free investor database, Visible Connect and find a filtered list of Sydney's investors here. Track your conversations and move them through your funnel with our Fundraising CRM Share your pitch deck and monthly updates with potential investors Organize and share your most vital fundraising documents with data rooms Manage your fundraise from start to finish with Visible. Give it a free try for 14 days here.

Montreal has emerged as one of Canada’s most dynamic startup ecosystems, offering a unique blend of innovation, talent, and opportunity. For founders actively fundraising, the city is home to a diverse range of venture capital firms that specialize in everything from early-stage investments to scaling global businesses. Whether you’re building the next AI breakthrough, a fintech disruptor, or a life sciences innovation, Montreal’s VCs are ready to support your journey. In this article, we’ll explore the top venture capital firms in Montreal, including their investment focus, sweet spot check sizes, and notable portfolios. Plus, we’ll provide actionable insights on successfully fundraising in Montreal and leveraging the city’s rich resources to grow your startup. Top VCs in Montreal Real Ventures About: Real is an early-stage venture capital firm that backs entrepreneurs and builds the ecosystems in which they thrive. Sweetspot check size: $ 1M Panache Ventures About: Panache Ventures is a venture capital firm specializing in seed stage startup investments. Sweetspot check size: $ 300K These: AI or blockchain-enabled businesses BDC Capital About: BDC Venture Capital is a major venture capital investor in Canada, active at every stage of a company's development cycle, from start-up through expansion. Its focus is on technology-based businesses with high growth potential that are positioned to become dominant players in their markets. BDC Venture Capital has been involved in venture capital since 1975 and has invested in more than 400 different companies. It currently manages over $430 million in venture capital assets. White Star Capital About: White Star Capital is a global multi-stage investment platform built by a team of founders, investors and operators with a track record of entering new markets, expanding teams and exiting companies. Our approach to venture is characterized by a unique combination of international presence, perspective and people. With feet on the ground in New York, London, Montreal, Paris, Tokyo, Hong Kong, and Singapore, we partner closely with our portfolio to help them scale internationally from Series A onwards. iNovia Capital About: Inovia Capital is a full-stack venture firm that invests in tech founders. Thesis: With investments spanning from pre-seed to pre-IPO, and a team of seasoned investors, operators, and advisors, we are fully equipped to support founders with capital, insights, and mentorship throughout their journey. Our team has been at the forefront of technology shifts since the dawn of the internet and mobile era in the ’90s, and today we continue that legacy by backing innovators in emerging technologies, including Generative AI. Ferst Capital Partners About: FCP is a private investment firm which invests in venture capital, private equity, public markets, sector-focused funds and crypto assets. Thesis: We have an interest and expertise in consumer fintech, digital assets and search funds. TVM Capital Life Science About: TVM is a leading international venture capital firm focused on investing in life science innovations. The company has a highly experienced transatlantic investment team and approximately $900 million under management. TVM’s portfolio focuses on therapeutics and medical technologies from North America and the EU that represent differentiated first-in-class or best-in-class assets with the potential to transform standard of care. Thesis: TVM pursues a unique two-pronged strategy, financing innovative early-stage therapeutics through a single asset company approach (Project-Focused Company, PFC) that leverages the firm’s strategic relationship with global pharmaceutical firm, Eli Lilly and Company. TVM also invests in differentiated commercial-stage medical technologies and late clinical-stage therapeutics. TandemLaunch About: TandemLaunch is a venture capital fund and startup foundry that partners with driven entrepreneurs to create successful and disruptive deep tech companies. By collaborating with researchers and inventors from the world’s best universities, we create exceptional technology companies. Founded in 2010, we have built an extensive network of inventors, industry experts and investors that we leverage to accelerate academic innovations and solve real world problems. Our portfolio includes over 25 hardware and software companies with high value offerings in the fields of artificial intelligence, human-computer interaction, video processing, advanced sensors, computer vision, and audio technology. FounderFuel About: FounderFuel is a mentor-driven venture accelerator that helps new startups make progress on the venture path. Sweetspot check size: $ 120K Thesis: We ignite the global success of companies by developing the leaders behind them. F.I.T. Ventures About: F.I.T. Ventures is a family office investment firm located in Montreal, Quebec. The firm oversees and manages a variety of investments focusing on private equity, real estate and public equities. The management team of the fund is comprised of professionals with extensive experience in supporting all aspects of M&A and corporate finance activities. How to Successfully Fundraise in Montreal Montreal’s vibrant startup ecosystem offers unique opportunities for founders seeking funding, but it also comes with its own set of challenges and nuances. Here are actionable tips to help founders navigate the fundraising landscape in Montreal effectively. Building Relationships with Local Investors Establishing strong relationships with local investors is crucial for successful fundraising in Montreal. Networking is a key component of the city’s startup culture, and founders should actively participate in events and communities to connect with investors. Some strategies include: Attend Local Events and Meetups: Events like Startupfest and C2 Montreal are excellent opportunities to meet investors and showcase your startup. These gatherings often attract top VCs and angel investors from Montreal and beyond. Leverage Co-Working Spaces and Incubators: Spaces like Notman House and District 3 are hubs for startup activity and provide access to investors, mentors, and other entrepreneurs. Use Warm Introductions: Montreal’s investment community is relatively tight-knit, so leveraging mutual connections for introductions can significantly improve your chances of securing meetings with VCs. Understanding the Preferences of Montreal-Based VCs Montreal-based venture capitalists often have specific preferences and investment focuses. Understanding these can help you tailor your pitch and approach: Industry Focus: Many Montreal VCs prioritize sectors like AI, deep tech, life sciences, and clean technology. For example, firms like Real Ventures and Inovia Capital are known for their focus on tech startups. Stage of Investment: Some VCs in Montreal specialize in early-stage funding, while others focus on growth-stage companies. Researching a firm’s portfolio and investment history is essential to ensure alignment with your startup’s stage. Bilingual Communication: While English is widely used, being able to communicate in French can be an advantage when dealing with local investors, as it demonstrates cultural alignment and commitment to the region. Unique Aspects of Fundraising in Montreal Montreal’s fundraising landscape has distinct characteristics that set it apart from other cities: Government Support: The city offers robust government funding programs, such as Investissement Québec and the SR&ED tax credit program, which can complement VC funding. These programs reduce financial risk for investors and make Montreal startups more attractive. Collaborative Ecosystem: Montreal’s startup community is highly collaborative, with a strong emphasis on mentorship and knowledge sharing. This culture can help founders access valuable advice and connections. Cost Advantage: Compared to cities like Toronto or Vancouver, Montreal has a lower cost of living and operating expenses, which can make your funding requirements more appealing to investors. Resources for Startups in Montreal Montreal is a vibrant hub for startups, from incubators and accelerators to government funding programs and specialized services, here are some of the most valuable resources available to entrepreneurs in Montreal. Incubators and Accelerators FounderFuel: A mentor-driven accelerator program that supports early-stage startups with a four-month intensive program. It offers access to a vast network of experienced entrepreneurs and investors. Centech: A leading incubator focused on deep tech and hardware startups. Centech provides non-equity assistance, grant funding, and access to a collaborative community. District 3 Innovation: Based at Concordia University, this hub supports multidisciplinary teams and scientific entrepreneurs with resources, mentorship, and a collaborative environment. TandemLaunch: Specializes in commercializing early-stage technologies from universities. It partners with entrepreneurs to create high-impact startups. The Holt Xchange: A fintech-focused accelerator that connects startups with corporate clients and investors, offering tailored mentorship and funding opportunities. Government Grants and Funding Programs Canada’s SR&ED Program: The Scientific Research and Experimental Development (SR&ED) program offers tax credits to businesses conducting R&D in Canada. This is a significant resource for tech and innovation-driven startups. Investissement Québec: Provides loans, equity investments, and tax credits to support business growth and innovation in Quebec. Their programs are tailored to startups and SMEs. Montreal’s Call for Projects: A municipal program offering financial assistance to non-profits supporting startups in key sectors like AI, life sciences, and clean tech. Legal and Financial Services Tailored to Startups Fasken: A leading law firm with expertise in startup law, offering services in intellectual property, corporate structuring, and financing. BDC (Business Development Bank of Canada): Provides financial solutions, including loans and advisory services, specifically designed for startups and small businesses. Connect With Investors in Montreal Using Visible At Visible, we often times compare a fundraise to a B2B sales and marketing funnel. At the top of your funnel, you are finding new investors. In the middle, you are nurturing and pitching potential investors. At the bottom of the funnel, you are working through diligence and ideally closing new investors. With the introduction of data rooms, you can now manage every aspect of your fundraising funnel with Visible. Find investors at the top of your funnel with our free investor database, Visible Connect and find a filtered list of Montreal's investors here. Track your conversations and move them through your funnel with our Fundraising CRM Share your pitch deck and monthly updates with potential investors Organize and share your most vital fundraising documents with data rooms Manage your fundraise from start to finish with Visible. Give it a free try for 14 days here.

Managing a high burn rate can be a make-or-break factor for startups. Without effective cost control, even promising ventures can quickly deplete their cash reserves, jeopardizing their long-term sustainability. Understanding what constitutes a healthy burn rate and how it affects your company’s financial runway is critical. In this article, we’ll explore eight actionable strategies for reducing burn rate, from cutting non-essential expenses to optimizing marketing efforts and leveraging automation. By implementing these techniques, you can extend your financial runway and ensure your startup maintains momentum on the path to growth. Related resouce: Burn Rate: What It Is and How to Calculate It What Is a Healthy Burn Rate? A healthy burn rate for a startup is the rate at which it spends its cash reserves before generating positive cash flow, tailored to its specific stage, industry, and growth objectives. Early-stage startups often experience higher burn rates due to investments in product development and market penetration, while later-stage companies typically aim for more controlled spending as they approach profitability. Industry norms also play a significant role. For instance, technology startups may have higher burn rates compared to service-based businesses, reflecting the capital-intensive nature of tech ventures. Market conditions further influence what constitutes a healthy burn rate. Investors might tolerate higher burn rates in bullish markets with abundant funding to accelerate growth. In contrast, during tighter financial climates, a lower burn rate becomes crucial for sustainability. Ultimately, a healthy burn rate aligns with the startup's strategic goals, ensuring sufficient runway to achieve key milestones without compromising financial stability. Regular financial assessments are essential to maintaining this balance, allowing startups to adapt their spending in response to evolving internal and external factors. How Does Burn Rate Impact a Company's Runway and Sustainability? A company’s burn rate determines its financial runway- the time it can continue operating before exhausting its cash reserves. The higher the burn rate, the shorter the runway, which puts pressure on the company to either increase revenue, secure additional funding, or cut costs to avoid running out of cash. Managing burn rate is crucial for long-term sustainability. A balanced burn rate allows startups to achieve key milestones, such as product development or market fit, without facing financial distress. Conversely, an unchecked burn rate can force premature fundraising or lead to insolvency. By aligning spending with strategic goals and maintaining adequate cash reserves, startups can extend their runway, weather market fluctuations, and position themselves for sustainable growth. Related resource: How to Calculate Runway & Burn Rate 8 Strategies for Managing and Reducing Burn Rate Controlling your burn rate is essential to ensure your startup's financial health and longevity. By implementing effective cost-saving measures, you can extend your runway, reduce financial stress, and create a more sustainable path to growth. The following eight strategies offer practical ways to manage spending, improve efficiency, and optimize your operations without compromising your momentum or key objectives. Related resource: The Standard Metrics to Collect for VC Portfolio Monitoring 1. Assess and Cut Non-Essential Expenses Through Regular Financial Audits Conducting regular financial audits helps startups identify non-essential expenses and eliminate wasteful spending. By systematically reviewing all outgoing costs, you can spot inefficiencies, redundant services, and underutilized resources that drain your cash reserves. For example, subscriptions to no longer-used software tools, unnecessary office perks, or overlapping vendor services can add up over time. Financial audits clarify where your money is going and help you make data-driven decisions to cut or reallocate funds. Implementing these audits quarterly or bi-annually ensures that spending aligns with business priorities, keeping your burn rate in check while maintaining operational efficiency. 2. Optimize Marketing Efforts by Focusing on Lower-Cost Channels With Long-Term Benefits Startups can reduce burn rate by prioritizing cost-effective marketing channels that provide sustained returns. Instead of investing heavily in paid ads, consider channels like content marketing, SEO, and email marketing, which offer long-term visibility without continuous spending. High-quality blog posts, guides, listicles, and case studies can drive organic traffic over time, building brand authority and attracting leads. Leverage social media marketing to engage with your audience directly. Platforms like LinkedIn, Twitter, Instagram, Quora, and Reddit allow you to share valuable content and connect with potential customers without significant ad spend. Additionally, referral programs and word-of-mouth marketing can generate new business through existing customers. By focusing on these lower-cost, high-ROI strategies, you create sustainable growth and reduce dependency on expensive, short-term campaigns, helping maintain a healthy burn rate. 3. Outsource Non-Essential Tasks Outsourcing non-essential tasks can significantly reduce overhead and operational costs for startups. Functions such as administrative work, customer support, bookkeeping, and IT maintenance can often be delegated to external agencies or freelancers. This approach allows you to avoid the expenses associated with full-time hires, such as salaries, benefits, and office space. By outsourcing, startups can also gain access to specialized skills and expertise without investing in extensive training or long-term commitments. This flexibility helps you scale operations up or down based on demand. Additionally, outsourcing enables your core team to focus on strategic priorities, like product development and customer acquisition, driving growth while keeping your burn rate manageable. 4. Delay Non-Essential Investments Prioritizing critical expenditures and delaying non-essential investments is a key strategy for managing your startup's burn rate. Focus on spending that directly supports product development, customer acquisition, and achieving key milestones. Investments in office upgrades, non-essential software, or secondary product features can often be postponed until your financial position is more secure. This approach helps preserve cash reserves and extends your runway, giving you more time to reach profitability or secure additional funding. Regularly assess potential investments through the lens of immediate impact and long-term value. By distinguishing between “must-have” and “nice-to-have” expenditures, you ensure that every dollar spent contributes to your startup’s core objectives. 5. Leverage Technology for Automation Leveraging automation and AI technology helps streamline operations, reduce labor-intensive tasks, and lower your startup's burn rate. Automation tools can handle repetitive processes like data entry, invoicing, customer onboarding, and email follow-ups. AI-powered solutions take this a step further by optimizing tasks such as customer support, marketing, and analytics through intelligent decision-making and data processing. For example, CRM platforms can personalize customer interactions and automate follow-ups, while AI writing tools can generate blog posts, social media content, and email campaigns quickly and efficiently. Chatbots powered by AI can handle complex customer inquiries, providing immediate responses and reducing the need for additional support staff. Additionally, Analytics platforms can offer actionable insights to enhance business strategies and improve operational efficiency. By integrating automation and AI, startups can increase efficiency, minimize human error, and free up team members to focus on strategic tasks. This not only reduces operational costs but also enhances productivity and competitiveness, helping maintain a lean and sustainable burn rate. 6. Establish Approval Policies for Purchases to Prevent Unnecessary Spending Implementing strict purchase approval policies helps maintain financial discipline by ensuring every expenditure is justified and aligned with your startup’s goals. Without a clear process, impulse spending or redundant purchases can quickly inflate your burn rate. Approval workflows require team members to submit purchase requests for review, giving managers or finance leads the opportunity to evaluate the necessity and impact of each expense. These policies can be tailored to your startup’s needs- for example, setting thresholds where low-cost items need minimal approval while larger purchases require multiple sign-offs. Using expense management software can streamline this process by providing transparency and real-time tracking of purchases. 7. Increase Your Cash Reserves Building and maintaining healthy cash reserves is essential for safeguarding your startup against cash flow challenges. A solid financial buffer provides flexibility during market downturns, unexpected expenses, or periods of slow revenue growth. Here are a few strategies to help increase your cash reserves: Monitor and Cut Unnecessary Expenses: Conduct regular financial audits to identify and reduce non-essential spending. Redirect those savings directly into your cash reserves. Negotiate Payment Terms: Work with suppliers and vendors to extend payment terms, allowing you to hold onto cash longer. Also, encourage clients to pay promptly or offer discounts for early payments to improve cash flow. Secure Recurring Revenue: Focus on building subscription-based or retainer models to ensure a steady income stream, reducing the risk of cash flow disruptions. Allocate a Portion of Profits: When your business is generating a profit, allocate a percentage directly to your reserves to steadily build a financial cushion. Consider Bridge Financing: Short-term financing options like lines of credit can serve as a backup to protect against cash shortages, though they should be used cautiously. 8. Consider External Funding Options Carefully When exploring external funding, it's crucial to evaluate options that align with your startup’s long-term objectives and financial stability. While venture capital, angel investments, loans, and grants can provide the necessary capital to extend your runway, each option comes with its own implications. Equity financing, such as venture capital or angel investment, dilutes ownership but can provide significant capital and strategic support. Ensure potential investors share your vision and growth goals to avoid conflicts down the road. In contrast, debt financing (like loans or lines of credit) allows you to retain ownership but requires regular repayments, which can strain cash flow if not managed carefully. Evaluate funding sources based on their impact on your burn rate, control, and repayment terms. Consider alternative options like revenue-based financing, where repayments scale with your income, or government grants, which don’t require repayment but may have specific conditions. Support Your Funding Efforts With Visible Reducing your burn rate is crucial for extending your financial runway and ensuring long-term sustainability. By cutting non-essential expenses, optimizing marketing, leveraging automation, and carefully managing investments and funding, your startup can operate efficiently and stay resilient in challenging markets. Visible can help you navigate your funding journey with ease. From managing investor updates to tracking your financial performance, Visible's platform streamlines the process and keeps your investors informed. Give it a free try for 14 days here. Related resource: Portfolio Data Collection Tips for VCs

Managing your startup's finances effectively can be the difference between thriving and running out of cash. One critical metric every founder should know is burn rate- the rate at which your company spends capital to stay operational. Calculating and controlling burn rate helps you forecast your financial runway, optimize spending, and avoid unexpected cash crunches. This guide will break down burn rate, how to calculate it, what a good burn rate looks like, and best practices for keeping it under control. Related resource: How to Reduce Burn Rate: 8 Cost-Saving Strategies for Startups What is Burn Rate? Understanding your startup's burn rate is crucial for effective financial management and long-term success. Burn rate refers to the pace at which a company consumes its cash reserves to cover operating expenses before generating positive cash flow. Monitoring this metric helps founders assess their financial runway- the time a company can operate before needing additional funding or achieving profitability. By keeping a close eye on burn rate, startups can make informed decisions about budgeting, scaling operations, and fundraising strategies. Gross Burn Rate Gross burn rate represents the total cash outflow a company incurs monthly to fund its operations, excluding any revenue generated. This includes all operating expenses such as salaries, rent, utilities, and other overhead costs. Calculating the gross burn rate provides insight into the company's spending habits and cost structure, serving as a baseline for evaluating financial health. Net Burn Rate Net burn rate accounts for the company's revenue, reflecting the actual monthly cash loss after subtracting total revenue from total expenses. This metric offers a clearer picture of how quickly a company is depleting its cash reserves, considering both income and expenditures. Monitoring the net burn rate is essential for understanding the sustainability of current operations and planning for future financial needs. By differentiating between gross and net burn rates, startup founders can gain a comprehensive understanding of their financial standing, enabling them to make strategic decisions to extend their runway and achieve long-term success. How to Calculate Burn Rate Now that you understand what burn rate is and why it’s crucial, let’s explore how to calculate it. There are two main types of burn rates to consider: gross burn rate and net burn rate. Both metrics help provide a snapshot of your startup’s financial health, but they serve different purposes. Gross burn rate focuses purely on expenses, while net burn rate factors in revenue. Here's how to calculate each type. Related resource: How to Calculate Runway & Burn Rate Calculating Gross Burn Rate Gross burn rate refers to a startup's total operating expenses within a specific period, usually calculated monthly. It includes costs such as salaries, rent, utilities, and other overhead expenses. This metric highlights how much cash the company spends to keep operations running, independent of any revenue. Understanding gross burn rate helps identify key cost drivers and assess operational efficiency. Source Calculating Net Burn Rate Net burn rate measures how quickly a company is depleting its cash reserves after accounting for revenue. It’s calculated by subtracting monthly revenue from monthly operating expenses. This metric reveals how much cash a startup needs to sustain operations each month. However, since revenue can fluctuate, it’s essential to monitor this variability. If revenue drops while expenses remain constant, the net burn rate will increase, potentially shortening the company's financial runway. Source What Is a Good Burn Rate for a Startup? Determining a "good" burn rate for a startup depends on several factors, including the company’s stage, industry, available funding, and growth objectives. Early-stage startups typically have higher burn rates as they invest in product development, marketing, and team expansion. Whereas, more mature startups might aim to control burn rates while focusing on achieving profitability. Key factors to consider: Startup Stage: Pre-seed and Seed Stage: Burn rates are often higher due to heavy investment in building and launching the product. Series A and Beyond: Companies might balance growth spending with a path toward profitability, making cash efficiency more critical. Industry Norms: Industries with longer development cycles, like biotech or hardware, may experience higher burn rates compared to SaaS or e-commerce startups. Funding Availability: Startups with recent funding rounds may sustain higher burn rates to accelerate growth. A common guideline is to ensure your burn rate allows for at least 12-18 months of runway between funding rounds. Growth Goals: High-growth startups might intentionally maintain a higher burn rate to capture market share quickly, while those focusing on sustainability may aim to keep burn rate low to extend their runway. Ultimately, a good burn rate balances growth ambitions with financial sustainability, ensuring your startup doesn’t run out of cash before achieving critical milestones. Related resource: Startup Metrics You Need to Monitor Best Practices for Managing Burn Rate Effectively managing your burn rate is essential to ensure your startup's financial health and longevity. By keeping your burn rate under control, you can extend your runway, make the most of your funding, and improve your chances of reaching key milestones. The following best practices will help you optimize spending, increase operational efficiency, and reduce the risk of running out of cash. Regularly Review and Adjust Budgets Frequent budget reviews are essential for keeping your startup's finances aligned with your current goals and market conditions. By revisiting your budget regularly- ideally monthly or quarterly- you can identify overspending, adjust for unexpected expenses, and reallocate resources to areas that drive growth. This practice helps you stay agile and responsive, ensuring your spending reflects your startup's strategic priorities. Consistent budget assessments also make it easier to anticipate financial challenges and adapt quickly, reducing the risk of depleting cash reserves unexpectedly. Optimize Operational Expenses and Identify Unnecessary Costs Streamlining your operational expenses is a key strategy for managing burn rate effectively. Start by analyzing all business expenses to identify non-essential costs that can be reduced or eliminated. Consider the following strategies: Negotiate Contracts: Review contracts with vendors, landlords, and service providers to secure better rates or more favorable terms. Embrace Automation: Implement tools and software that automate repetitive tasks, saving time and reducing labor costs. Remote Work Flexibility: If possible, reduce office space or shift to a remote-first model to cut rent and utility expenses. Monitor Subscriptions and Tools: Eliminate unused or redundant software subscriptions and services that drain resources without adding value. Diversify Revenue Streams to Reduce Reliance on External Funding Relying solely on external funding can leave your startup vulnerable to market fluctuations and investor sentiment. By developing multiple revenue streams, you create a more stable financial foundation and reduce the risk of cash flow gaps. Consider these strategies for diversification: Explore New Customer Segments: Identify additional markets or demographics that could benefit from your product or service. Offer Complementary Products or Services: Introduce new offerings that align with your core business to increase revenue potential. Adopt a Subscription or Recurring Revenue Model: If applicable, recurring models can provide predictable and steady cash flow. Create Strategic Partnerships: Partner with other businesses to cross-promote services, expand distribution channels, or bundle offerings. Monetize Existing Assets: Leverage data, content, or intellectual property to create new revenue opportunities, such as licensing or premium features. Monitor Cash Flow Projections Alongside Burn Rate Combining cash flow projections with burn rate analysis is essential for maintaining financial control and making informed decisions. While burn rate shows how quickly your startup is depleting its cash reserves, cash flow projections estimate future inflows and outflows based on current trends and planned activities. Together, these metrics provide a comprehensive picture of your financial health. Why it matters: Identify Potential Shortfalls: Projections help you foresee periods when expenses might outpace income, allowing you to take corrective action early. Plan for Fundraising: Knowing your projected runway helps you time fundraising efforts to avoid running out of cash. Adjust Strategies in Real-Time: By tracking both metrics, you can quickly adapt spending plans, delay non-essential expenses, or accelerate revenue-generating activities. Improve Decision-Making: Informed by data, you can confidently decide when to invest in growth initiatives and when to tighten spending. Track Your Key Startup Metrics with Visible Understanding and managing your burn rate is essential for keeping your startup financially healthy. Calculating gross and net burn rates, reviewing budgets, optimizing expenses, diversifying revenue streams, and monitoring cash flow projections can help you make informed decisions and extend your financial runway. Staying on top of these metrics also helps you avoid unexpected cash crunches and ensures you're prepared for growth. Tools and software are a great way to keep tabs on your finances. Track key metrics, send investor Updates, and track the status of your next fundraise with Visible. Give it a free try for 14 days here. Related resource: The Standard Metrics to Collect for VC Portfolio Monitoring

High Alpha, in partnership with OpenView, teamed up to explore pricing models, churn, AI adoption, financial performance, and more in the 2024 SaaS Benchmarks Report. Mike Fitzgerald and Blake Koriath of High Alpha joined us to dive into the report, highlighting key trends, data points, and themes. A couple of key areas we hit on: The makeup of the report Market stabilization and expectations in today's market vs. previous years Vertical vs. Horizontal SaaS performance Why GTM execution is keeping founders up at night How companies are balancing burn and growth And much more Download the full report to uncover other trends and benchmarks below:

Attracting top talent is a critical challenge for startup founders. Unlike large corporations, startups need creative ways to offer competitive compensation. One of the most effective incentives is offering employee stock options, which align employees' interests with the company's growth and success. There are two primary types of stock options: Qualified Incentive Stock Options (ISOs) and Non-Qualified Stock Options (NSOs). Each type offers benefits and tax implications that can impact employers and employees. Understanding these differences is crucial to selecting the right option strategy for your team. In this article, we’ll break down the key distinctions, tax considerations, and pros and cons of ISOs and NSOs to help you make informed decisions about equity compensation. What Are Qualified Incentive Stock Options (ISOs)? ISOs are employee stock options that allow employees to purchase company shares at a predetermined price, often called the strike price or exercise price. ISOs are designed to reward and retain key employees by offering favorable tax treatment, provided specific conditions are met. Unlike other forms of equity compensation, ISOs are restricted to employees only and must adhere to strict IRS guidelines. When employees exercise ISOs and hold the shares for a certain period, the resulting gains may be taxed at the more favorable long-term capital gains rate instead of ordinary income rates. This potential for tax savings makes ISOs valuable for incentivizing employees, which is critical to the company's success. However, ISOs come with eligibility requirements and time constraints that must be met to maintain their tax-advantaged status. If these conditions are not met, ISOs may be treated as NSOs for tax purposes. How Are ISOs Taxed? As mentioned above, ISOs are taxed at the capital gains rate. This means that ISO holders are subject to tax benefits as the capital gains rate is generally lower than the ordinary income rate. It is worth noting that ISOs are taxed at the time of selling the stock (not when vesting or exercising). When an employee (or person) is granted sock options there is a strike price (which is the value at the time of granting). Once an employee decides to exercise their options, they have the ability to sell their stock or hold on to the stock. If the same person sells their stock at (the fair market value) at a later date the difference between the strike price and fair market value is the profit — or what the employee is taxed on.Check out the long-term capital gains tax rates in 2024 (for the US) below: Forbes The Impact AMT Has on ISOs The Alternative Minimum Tax (AMT) is a parallel tax system designed to ensure that taxpayers, especially those with higher incomes, pay at least a minimum amount of tax regardless of deductions or credits. When it comes to ISOs, AMT can be triggered during the year you exercise your options, even if you don't sell the shares immediately. Here’s how it works: When you exercise ISOs, the difference between the fair market value of the stock at the time of exercise and the exercise price (also known as the strike price) is called the bargain element. While this bargain element isn't taxed under the regular tax system until you sell the shares, it is considered taxable income under the AMT system. This can lead to an unexpected AMT liability, particularly if the spread between the exercise price and the FMV is significant. For example, if your strike price is $10 per share, and the FMV when you exercise is $50 per share, the $40 difference per share could be subject to AMT. The AMT calculation ensures you pay the higher amount between your regular tax liability and your AMT liability. If AMT applies, you’ll need to pay it in the year of exercise, even if you haven't sold the shares and realized the cash. However, when you eventually sell the shares, you may be eligible for an AMT credit, which can help offset future regular tax liabilities. Because of the potential AMT impact, it’s essential to plan the timing of your ISO exercises carefully. Consider consulting a tax professional to assess the potential AMT exposure and how it might affect your overall tax strategy. What Are Non-Qualified Stock Options (NSOs)? NSOs are a type of equity compensation that gives recipients the right to purchase company shares at a predetermined exercise price or strike price. Unlike ISOs, NSOs can be granted to a broader group, including employees, contractors, board members, and advisors. NSOs are more flexible than ISOs because they are not subject to the same IRS restrictions. However, this flexibility comes with different tax treatment. When NSOs are exercised, the difference between the fair market value (FMV) of the stock at exercise and the exercise price is treated as ordinary income. Later, if the shares are sold, any additional profit is subject to capital gains tax (short-term or long-term, depending on how long the shares are held after exercise). NSOs are popular among startups because they are straightforward to administer, offer flexibility in who can receive them, and provide potential tax deductions for the company when exercised. How Are NSOs Taxed? NSOs are taxed immediately upon exercise. The difference between the exercise price and the fair market value (FMV) at exercise is treated as ordinary income and subject to withholding taxes. When the shares are eventually sold, any further gains are taxed as capital gains (short-term or long-term, depending on how long the shares are held after exercise). The Impact AMT Has on NSOs As we mentioned earlier, an alternative tax minimum (AMT) is a potential downside of ISOs. Unlike their counterpart, NSOs are not subject to AMT. Key Differences Between ISOs and NSOs While both ISOs and NSOs allow recipients to purchase company stock at a predetermined price, they differ significantly in terms of eligibility, tax treatment, regulatory requirements, and reporting obligations. These differences can impact your company's approach to rewarding employees, advisors, and other contributors and the potential financial outcomes for recipients. Let’s break down the key differences to help you decide which option best aligns with your company's goals and your team's needs. Eligibility ISOs are reserved exclusively for company employees. They cannot be granted to independent contractors, board members, or advisors. This restriction makes ISOs a targeted tool for retaining key employees. NSOs are more flexible and can be issued to employees, contractors, board members, and advisors. This broader eligibility allows startups to reward internal team members and external contributors. Tax Treatment ISOs offer favorable tax treatment if specific holding periods are met. When you exercise ISOs, there is no immediate tax liability unless the alternative minimum tax applies. If you hold the shares for at least 1 year after exercise and 2 years after the grant date, gains are taxed as long-term capital gains, which typically have lower rates than ordinary income. NSOs, on the other hand, are taxed immediately upon exercise. The difference between the exercise price and the fair market value at exercise is treated as ordinary income. When you sell the shares, any further gains are taxed as capital gains (short-term or long-term, depending on the holding period). Regulatory Requirements ISOs are subject to stricter regulatory guidelines under the Internal Revenue Code. To qualify for favorable tax treatment, ISOs must meet the following requirements: Eligibility: Only employees can receive ISOs. Holding Period: Shares must be held for at least 1 year after exercise and 2 years after the grant date to benefit from long-term capital gains tax rates. Exercise Limits: The total value of ISOs exercisable in a calendar year cannot exceed $100,000 based on the grant date FMV. Plan Approval: The stock option plan must be approved by the company’s shareholders within 12 months before or after the plan is adopted. Expiration: ISOs must be exercised within 10 years of the grant date (or 5 years if granted to a 10%+ shareholder). In contrast, NSOs are subject to fewer regulatory requirements. They can be granted to employees, contractors, and board members without restrictions on exercise limits or holding periods. NSOs also don’t require shareholder approval and offer more flexibility in structuring the terms of the option grant. The stricter regulations for ISOs reflect their preferential tax treatment, while the flexibility of NSOs makes them easier for startups to implement broadly. Reporting and Withholding ISOs have simpler reporting and withholding requirements compared to NSOs. When an employee exercises ISOs, there is no immediate tax withholding because the exercise itself doesn’t trigger regular income tax. However, if the employee sells the shares in a disqualifying disposition (before meeting the holding periods), the employer must report the bargain element as ordinary income on the employee’s W-2 form. The company is not required to withhold taxes on ISO exercises, though it must track and report the income if the shares are sold early. NSOs, on the other hand, trigger immediate tax withholding at the time of exercise. The bargain element (the difference between the exercise price and the fair market value at exercise) is treated as ordinary income. Employers are required to: Withhold federal and state income taxes (if applicable). Deduct Social Security and Medicare taxes (FICA). Report the income on the employee’s W-2 form (for employees) or a 1099-NEC (for non-employees). Failing to account for withholding on NSO exercises can result in underpayment penalties for the recipient. Accurate reporting and timely withholding are essential for the issuer to avoid compliance issues. Pros and Cons of ISOs ISOs offer valuable tax advantages and can help retain key employees, but they come with strict rules and potential tax complexities. Here are the key benefits and drawbacks of ISOs: Pros Favorable Tax Treatment: Gains are taxed as long-term capital gains if holding period requirements are met (1 year after exercise and 2 years after the grant date). No Immediate Tax at Exercise: Exercising ISOs doesn’t trigger regular income tax, allowing employees to defer taxes until the shares are sold. Employee Retention: ISOs can help retain top talent, as employees must stay with the company to benefit fully. No Payroll Taxes: ISOs are not subject to Social Security and Medicare taxes (FICA) at exercise. Cons Complex Tax Rules: Strict IRS requirements and holding periods must be met to maintain tax benefits. Alternative Minimum Tax (AMT): The bargain element can trigger AMT liability in the year of exercise. Limited Eligibility: ISOs can only be granted to employees, excluding contractors and advisors. Exercise Limits: Only $100,000 worth of ISOs can be exercised per year based on the grant date value. Market Risk: Employees risk holding shares that may decrease in value before they sell. Pros and Cons of NSOs NSOs offer flexibility in who can receive them and simpler regulatory requirements, but they come with immediate tax obligations. Here are the primary advantages and disadvantages of NSOs: Pros Broad Eligibility: NSOs can be issued to employees, contractors, board members, and advisors. Simpler Administration: Fewer IRS regulations compared to ISOs. No Exercise Limits: No annual limit on the value of NSOs that can be exercised. Company Tax Deductions: Companies can deduct the bargain element as ordinary income when NSOs are exercised. Immediate Liquidity: Recipients can exercise and sell shares immediately for cash. Cons Immediate Tax Liability: The bargain element is taxed as ordinary income at exercise. Withholding Requirements: Employers must withhold federal, state, Social Security, and Medicare taxes. No Tax Deferral: Taxes are due upon exercise, regardless of when the shares are sold. Market Risk: If the stock price drops after exercise, recipients may owe taxes on a higher value than the shares are worth. Potential Financial Strain: Recipients need cash to cover taxes at the time of exercise. ISO vs NSO Which One is Right For You? Now that we understand the difference between qualified incentive stock options (ISOs) and non-qualified incentive stock options (NSOs) it’s time to understand how and when you should be using both. Both have expected use cases and their own set of pros and cons depending on the use. Related Reading: How to Fairly Split Startup Equity with Founders When to Choose an ISO Of course, most employees will likely want an ISO plan as it offers tax benefits. However, it is lesser used and should be reserved for high-value employees. As the team at Investopedia writes, “This type of employee stock purchase plan is intended to retain key employees or managers.” A few times for when you should choose a qualified incentive stock option for your employees: When offering stock options for an employee (ISOs are not eligible with individuals who are not employees) When trying to incentivize and retain a high-value employee — this might be a manager or executive that is closely aligned with your companies success. When your company is in a financial position to offer ISOs instead of NSOs When to Choose an NSO While they do not necessarily have the tax benefits of ISOs, NSOs are widely used and are more common than ISOs. Below are a few examples and pros of choosing an NSO instead of an ISO: When issuing stock options to non-employees. This could be consultants, board members, mentors, and more. From the team at Pasquesi Partners, “With NSO, companies are able to take tax deductions when the employee chooses to exercise their option in the stock. Because of the way they are structured, NSO earnings are viewed as income for the employee, hence the tax deductions.” When looking for a more simple option and straightforward stock option to offer employees Share Stock Option Information With Your Investors with Visible Equity compensation, whether through ISOs or NSOs, is a powerful tool for aligning your team’s interests with your company’s success. To build trust and maintain transparency with investors, employees, and other stakeholders, clear communication about your cap table and stock options is essential. Simplify your investor reporting and engagement with Visible. From raising capital to keeping investors informed, manage everything seamlessly in one platform. Try Visible free for 14 days.

Managing equity is one of startup founders' most strategic and challenging responsibilities. Many advisors, investors, and peers contribute valuable insights to a business in the early stages, often without direct financial compensation. For startups with limited cash flow, offering advisory shares becomes a creative and practical way to engage experts while preserving resources for growth. Advisory shares allow founders to attract and retain top-tier talent by providing equity in exchange for critical guidance. This article explores what advisory shares are, how they work, their benefits and drawbacks, and key considerations for offering them in your startup. What Are Advisory Shares? Advisory shares are a form of equity compensation provided to individuals who offer strategic guidance and expertise to a startup. Unlike traditional employee equity, advisory shares are typically granted to external advisors, such as industry experts, seasoned entrepreneurs, or key network connectors, who help the business grow and succeed. These shares often follow a shorter vesting schedule, reflecting the limited but impactful nature of the advisor's contributions. By offering advisory shares, startups can incentivize advisors to commit their time and knowledge, aligning their success with the company’s growth. Advisor Shares vs. Regular Shares (or Equity) Advisory shares and regular shares both represent equity in a company, but their purposes, recipients, and structures are distinct. Regular shares are issued to founders, employees, and investors to reflect direct contributions, whether through work or funding. Advisory shares, however, are explicitly granted to external advisors as compensation for their expertise and guidance, aligning their interests with the company's success without requiring financial or operational involvement. Related resource: CEO vs. Advisory Board: Key Differences in Leadership and Guidance How Are Advisory Shares and Regular Shares Similar? Despite their differences, advisory shares and regular shares share common traits. Both represent ownership in the company, incentivize recipients by tying their potential financial gains to its growth, and typically involve vesting schedules to ensure commitment. Issuing either type of share also contributes to equity dilution, affecting all existing stakeholders. Related Read: The Main Difference Between ISOs and NSOs How Do Advisory Shares Work? While advisory shares can take on different forms, they typically can be boiled down to a few similarities. Of course, these can change depending on your business. Exchanged for advice or expertise Typically offered as NSO stock options Follow a shorter vesting schedule Related resource: Everything You Should Know About Diluting Shares Learn more about how advisory shares typically work below: 1. Advisor Agreement Before granting advisory shares, the startup and advisor enter into a formal agreement that outlines the terms of their relationship. This agreement specifies the advisor’s role, including the scope of their contributions, such as strategic guidance, mentorship, or leveraging their network. It also details the advisor's responsibilities, expected time commitment, and deliverables. Importantly, the agreement defines the number of advisory shares the advisor will receive and the terms under which they are granted, such as the vesting schedule and any conditions tied to performance. By setting clear expectations, this agreement protects both parties and ensures alignment in achieving the company’s goals. 2. Grant of Shares After finalizing the advisor agreement, the startup grants the advisor the right to purchase a specified number of shares at a predetermined exercise price. This exercise price is typically set at the fair market value of the company’s stock at the time of the grant. This approach ensures compliance with tax regulations while offering the advisor an opportunity to benefit from the company’s growth. The grant also outlines the conditions under which the advisor can exercise these options, such as meeting vesting milestones or fulfilling specific responsibilities. By linking the grant to the advisor’s contributions, startups create a mutually beneficial arrangement that aligns incentives with the company’s success. 3. Vesting Period The advisor’s right to exercise their options is generally tied to a vesting period, which ensures their continued commitment to the startup over time. Vesting periods for advisory shares often span shorter durations than employee stock options but typically last one to four years. A common structure includes a one-year cliff, where no options are vested during the first year, followed by monthly vesting thereafter. This means the advisor gains the ability to exercise a portion of their options incrementally, as they fulfill their responsibilities and contribute to the company’s growth. Vesting schedules protect the startup by ensuring advisors earn their shares through sustained involvement and expertise. 4. Exercise of Options Once the vesting period is complete, the advisor gains the right to exercise their options. This involves paying the predetermined exercise price to purchase the shares granted under the advisory agreement. The exercise process typically requires the advisor to notify the company of their intent and complete the necessary paperwork. After the payment is made, the advisor becomes a shareholder in the company and holds equity outright. This step allows the advisor to benefit from any future increase in the company’s valuation, aligning their financial incentives with the startup’s long-term success. 5. Potential Profit If the company’s stock price appreciates over time, the advisor can sell their shares for a profit. Since advisory shares are typically granted at the fair market value at the time of issuance, any subsequent increase in the stock price represents a gain for the advisor. For example, if the exercise price was set at $1 per share and the stock price rises to $10 per share, the advisor can sell the shares at the higher market price, realizing a profit of $9 per share. This potential for financial gain serves as a strong incentive for advisors to contribute meaningfully to the company’s success and growth. Benefits of Advisory Shares Advisory shares come with their own set of pros and cons. Properly maintaining and distributing equity is a critical role of a startup founder so understand the benefits, and drawbacks, of offering advisory shares is a must. Related Resource: 7 Essential Business Startup Resources Learn more about the benefits of offering startup advisory shares below: Access to Expertise and Guidance Advisory shares are a powerful tool for attracting experienced professionals with specialized knowledge that can drive a startup’s growth. These individuals bring valuable insights in areas such as strategy, product development, marketing, or fundraising—critical components for scaling a business. By offering equity in lieu of cash compensation, startups can engage top-tier experts who might otherwise be out of reach financially. These advisors act as strategic partners, helping founders navigate challenges, seize opportunities, and build a strong foundation for long-term success. Related Resource: Seed Funding for Startups 101: A Complete Guide Strengthen Credibility and Network Associating with credible advisors can significantly enhance a startup’s reputation, signaling expertise and trustworthiness to the broader market. Advisors with established industry recognition lend their credibility to the company, boosting its appeal to potential investors, partners, and customers. Beyond reputation, advisors often bring extensive networks of valuable connections, opening doors to strategic partnerships, funding opportunities, and key client relationships. By aligning with respected professionals, startups can accelerate their growth while building trust within their industry. Cost-Effective Compensation As we previously mentioned, most businesses that benefit most from advisors are unable to offer them a salary or cash compensation. With advisor shares, startup founders are able to offer shares as compensation and conserve thei cash to help with scaling their business and headcount. Attract Long-Term Commitment Vesting schedules play a crucial role in fostering long-term commitment from advisors. By distributing equity over a set period, such as one to four years, advisors are incentivized to remain actively engaged with the startup for the duration of the vesting timeline. This structure ensures that advisors continue to contribute their expertise and resources while aligning their success with the company's growth. The gradual allocation of shares motivates advisors to stay invested in the startup’s achievements, creating a mutually beneficial relationship that drives sustained collaboration and progress. Drawbacks of Advisory Shares Of course, offering advisor shares is not for everyone. While there are benefits to offering advisor shares, there are certainly drawbacks as well. Weighing the pros and cons and determining what is right for your business is ultimately up to you. We always recommend consulting with a lawyer or counsel when determining how to compensate advisors. Diluted Ownership The biggest drawback for most founders will be the diluted ownership. By offering shares to advisors, you will be diluting the ownership of yourself and existing shareholders. As advisors are fully vested in 1-2 years, they will potentially not be invested in future success as other stakeholders and could be costly when taking into account the diluted ownership. Potential Conflicts of Interest Advisors might not have the same motivators and incentives as your employees and other shareholders. As their ownership is generally a smaller % and their shares vest early, they are potentially not as incentivized for the growth of your company as employees and larger % owners will be. Getting in front of these conversations and making sure you have a good read on any potential advisors before bringing them onboard is a good first step to mitigate potential conflicts. Extra Stakeholder to Manage Chances are most advisors are helping other companies as well. This means that their attention is divided and you will need to ensure you are getting enough value to warrant dilution. This also means that you are responsible for managing a relationship and communication with another stakeholder in your business — what can be burdensome on some founders. The 2 Variations of Advisory Shares Advisory shares are generally offered in 2 variations — restricted stock awards and stock options. Learn more about each option and what they mean below: Restricted Stock Awards Restricted stock awards (RSAs) are a form of equity compensation where shares are granted to an individual with certain restrictions, typically tied to a vesting schedule or performance milestones. Unlike stock options, RSAs represent ownership of the shares from the moment they are granted, though the recipient may not fully control or sell them until the restrictions are lifted. These shares often include voting rights and entitle the recipient to dividends, aligning their interests with the company’s long-term success. Restricted stock awards are commonly used to reward early contributors or advisors, ensuring their commitment while providing immediate equity ownership subject to conditions. Stock Options Stock options are a type of equity compensation that grants the recipient the right to purchase company shares at a fixed price, known as the exercise price, within a specified timeframe. Unlike restricted stock awards, stock options do not represent immediate ownership but provide the potential to acquire shares if certain conditions, such as vesting schedules or performance milestones, are met. The exercise price is typically set at the fair market value of the shares at the time of the grant. If the company’s valuation increases, the recipient can profit by purchasing the shares at the lower exercise price and selling them at the higher market value. Stock options are often used to align the recipient’s incentives with the company’s growth, encouraging active involvement and long-term commitment. Who Gets to Issue Advisory Shares? Issuing advisory shares is typically reserved for the founder or CEO of a company. Having a decision-making process and gameplan when issuing advisory shares is important. This might mean offering no shares at all, having an allocated amount of advisor shares from the get go, or something inbetween. Making sure your board of directors and other key stakeholders are on board is crucial to make sure that interest and strategy stays aligned for all stakeholders. Related resource: Is An Advisory Board Paid? What Startups Should Know How Many Shares Should You Give a Startup Advisor? Determining the number of shares to offer a startup advisor requires balancing sufficient incentives with managing equity dilution. The exact amount will vary based on factors such as the advisor’s experience, expected contribution, and time commitment. Advisors who bring extensive industry expertise or access to valuable networks may justify a higher equity allocation than those with a more limited role. According to guidelines referenced by Silicon Valley Bank, advisors are often granted between 0.25% and 1% of the company's equity, depending on the startup's stage and the nature of the advisory role. Structuring this compensation strategically- including a vesting schedule or performance milestones- helps ensure that the advisor’s contributions provide meaningful value while maintaining flexibility for the company. Let Visible Help You Streamline the Investment Management Process Managing equity and fostering investor relationships are critical for your startup’s success. Visible simplifies this process with tools for tracking advisory shares, managing fundraising pipelines, and keeping stakeholders informed through data rooms and investor updates. Raise capital, update investors, and engage your team from a single platform. Try Visible free for 14 days.

Canada is home to a diverse and rapidly expanding tech ecosystem, with innovation hubs emerging from coast to coast. Toronto is leading the charge with its dynamic mix of talent and financial infrastructure, while Vancouver blends creativity and sustainability in its thriving tech scene. Smaller cities like London and Winnipeg are proving that innovation isn't limited to metropolitan centers, driving advancements in fields like digital health and agritech. Meanwhile, Calgary is redefining its identity through clean energy innovation, and Edmonton is cementing its status as an AI powerhouse. Halifax offers a unique blend of academic excellence and government support, and Montreal and Ottawa shine as global leaders in AI, gaming, and cybersecurity. From east to west, these tech hubs are shaping the future of Canada’s startup landscape. Related resource: 10+ Venture Capital Firms in Canada Funding Startups in 2024 Toronto Toronto is more than just Canada’s largest city- it’s a powerhouse driving the country’s tech revolution. With a deep pool of skilled talent, a robust financial backbone, and a startup ecosystem bursting with energy, Toronto has carved out its place on the global stage as a top destination for innovation. The city’s dynamic mix of cultural diversity and cutting-edge technology makes it a magnet for startups and investors, setting the pace for Canada’s tech boom. Talent Pool The city's diverse and highly educated workforce forms the backbone of its tech industry. Institutions such as the University of Toronto, Toronto Metropolitan University, and York University produce a steady stream of graduates in science, technology, engineering, and mathematics (STEM) fields. Between 2018 and 2023, Toronto added 95,900 tech jobs, representing a 44% growth- the most significant job gain among North American markets during that period. Financial Infrastructure As Canada's financial capital, Toronto is home to major banks and the Toronto Stock Exchange, providing tech startups with essential access to venture capital and investment opportunities. In the first half of 2023, Toronto-based startups raised approximately $1.3 billion, marking a 120% increase compared to the same period in 2019 and 2020. Startup Ecosystem Toronto's vibrant startup scene is characterized by a collaborative culture and extensive support networks. Initiatives like the DMZ at Toronto Metropolitan University offer mentorship, resources, and incubation services to emerging tech companies. The city's multicultural environment fosters innovation by bringing together diverse perspectives, enhancing creativity, and driving technological advancements. Toronto's commitment to sectors like artificial intelligence is evident through institutions such as the Vector Institute for Artificial Intelligence, further solidifying its position as a global tech hub. Vancouver Vancouver isn’t just a stunning city with mountain views and a coastal charm- it’s a tech hub brimming with innovation and opportunity. Known for its vibrant culture, world-class digital entertainment industry, and trailblazing green technology sector, Vancouver has firmly established itself as a major player on the global tech stage. With its strategic location and a thriving ecosystem that blends creativity with sustainability, this West Coast city offers a unique environment for startups and investors looking to make their mark. Strategic Pacific Rim Location Vancouver's position on the Pacific Rim makes it a vital gateway for trade, enhancing its appeal to tech companies aiming for global outreach. The city's proximity to major Asian and U.S. markets facilitates international collaborations and market expansion. Vancouver's commitment to a vibrant lifestyle and health culture has also fostered the growth of numerous lifestyle brands, adding to its dynamic community. Thriving Digital Entertainment Industry Vancouver's digital entertainment sector is pivotal in strengthening its tech ecosystem. The city is North America's third-largest film and television production center, supporting approximately 20,000 jobs. It also hosts one of the world's leading video game clusters, with major publishers such as Electronic Arts (EA), Microsoft, and Nintendo establishing a presence. The digital entertainment and interactive industry generates over 40,000 jobs in Vancouver, contributing billions in direct GDP to the city's economy. Leadership in Green Technology Vancouver is at the forefront of green technology innovation, with a strong emphasis on sustainable practices and environmental responsibility. The city is home to numerous cleantech companies specializing in areas such as fuel cell solutions, power electronics, and waste treatment technologies. Supportive government policies and programs further promote innovation, making clean technology a major pillar of Vancouver’s green economy. Dynamic Startup Ecosystem Vancouver's startup ecosystem is vibrant and growing, ranking 30th globally in the 2023 Global Startup Ecosystem Report by Startup Genome. The city has over 1,000 tech startups and multiple unicorn companies, including Visier, AbCellera, and Trulioo. Vancouver's tech sector has experienced the fastest growth rate in North America, with a 69% increase in tech occupations over five years, totaling 111,000 tech jobs as of 2023. Supportive Infrastructure and Community Vancouver offers a supportive infrastructure for tech startups, including incubators and accelerators such as SFU Venture Labs, Innovate BC, and Entrepreneurship@UBC. The city also hosts events like Vancouver Startup Week, which foster collaboration and showcase groundbreaking ideas within the tech community. London, Ontario London may not yet have the global reputation as some of the other cities, but it’s quickly making waves as a rising star in Canada’s tech landscape. With booming industries in software development, cybersecurity, and digital health, this city is proving that innovation doesn’t just belong to major metropolitan centers. Software Development The city has experienced remarkable growth in its tech talent pool, with an 88.5% increase in tech employment between 2018 and 2023, reaching 16,400 tech jobs in 2023. This surge is complemented by a 26.7% rise in tech wages, reflecting the robust expansion of the software development industry. Cybersecurity London's tech ecosystem places a strong emphasis on cybersecurity, with organizations like the Ontario Health Cybersecurity Centre providing leadership and governance in this critical area. The city's focus on cybersecurity is further supported by educational institutions offering specialized programs, ensuring a steady pipeline of skilled professionals. Digital Health The digital health sector in London is thriving and strengthened by initiatives such as the London Innovation Challenge, which supports the development of sustainable technology solutions that address community challenges. Fostering Innovation London fosters innovation through collaborative spaces like Innovation Works, designed to encourage collaboration among entrepreneurs. The city's supportive infrastructure includes incubators and accelerators such as: TechAlliance Western Accelerator Leap Junction Calgary Calgary is shedding its reputation as solely an oil and gas powerhouse to become a beacon of innovation in clean energy and technology. With its unique blend of industry expertise, cutting-edge research, and a drive toward sustainability, Calgary is transforming into a vibrant tech hub. From pioneering clean energy initiatives to advancing digital solutions, the city is attracting entrepreneurs and investors eager to be part of this dynamic shift toward a more sustainable and tech-forward future. Transition to Clean Energy Innovation Building on its rich energy heritage, Calgary is at the forefront of clean technology advancements. The Energy Transition Centre, located in downtown Calgary, serves as a collaborative hub where industry leaders and academic institutions converge to develop sustainable energy solutions. This initiative exemplifies the city's commitment to leading the energy transition. Complementing this effort, the Digital Innovation in Clean Energy (DICE) program supports the creation of digital technologies aimed at reducing emissions within the energy sector. By fostering advancements in artificial intelligence, machine learning, and the industrial Internet of Things, DICE plays a pivotal role in modernizing energy practices. Advancements in Digital Technology Calgary's tech ecosystem is experiencing significant growth, extending beyond traditional energy sectors. The city is recognized as a top tech talent market in North America, offering a favorable environment for tech startups and established companies. Innovative firms like SensorUp exemplify this progress. They received $12 million in funding for their methane emissions management software, which integrates diverse data sources to optimize reduction strategies, highlighting Calgary's dedication to digital innovation in environmental management. Fostering Innovation Calgary actively cultivates innovation through initiatives that promote collaboration and commercialization. The Energy Transition Centre transforms downtown office space into an innovation hub, supporting the development of clean technologies and contributing to the city's economic diversification. Halifax Nestled on the picturesque East Coast, Halifax is leveraging its academic excellence, government backing, and thriving startup culture to carve out a unique space in the tech world. Academic Influence Home to esteemed institutions such as Dalhousie University, Saint Mary's University, and the Nova Scotia Community College, Halifax boasts a vibrant academic community. These institutions collectively enroll over 35,000 students, with a notable 25% increase in STEM program enrollment over the past decade. This surge has cultivated a steady pipeline of skilled graduates, strengthening the local tech industry. Government Support The Canadian government actively nurtures Halifax's tech startups through significant financial investments and infrastructure development. In October 2024, the Atlantic Canada Opportunities Agency (ACOA) announced over $4 million in funding to assist ten Halifax-based startups in scaling operations and accessing new markets. Additionally, innovation hubs like Volta have received substantial government backing, including a $3 million non-repayable investment from ACOA and $3.8 million from the Nova Scotia government, to enhance support for entrepreneurs. Startup Ecosystem Halifax's startup ecosystem is enriched by numerous incubators and accelerators, such as Volta and the Centre for Ocean Ventures & Entrepreneurship (COVE). These organizations provide mentorship, networking opportunities, and essential resources for startup growth. The Halifax Innovation District, located in the city's core, hosts over 2,100 companies across sectors like IT, life sciences, and cleantech, fostering a collaborative environment that drives innovation. Economic Impact The expansion of the tech sector has significantly impacted Halifax's economy. The city has experienced a 64.2% growth in tech employment over the past five years, with the sector contributing approximately $2.5 billion and employing over 26,000 individuals across Nova Scotia. This growth has attracted companies like Wattpad, which established a second headquarters in Halifax, citing the city's deep talent pool. Winnipeg Known for its deep agricultural roots and cutting-edge research, the city now thrives in agritech and biotechnology. With a collaborative ecosystem and a strong focus on sustainable growth, Winnipeg offers startups and investors a unique opportunity to lead advancements in industries critical to global health and food security. Agritech Innovation As Manitoba's agricultural epicenter, Winnipeg hosts numerous leading agribusiness companies and industry associations. The city boasts a mature agri-food research and development ecosystem, with booming sub-sectors such as ag-tech and plant protein, making it an ideal environment for agribusiness growth. Notable companies like Farmers Edge and JCA Technologies have thrived in Winnipeg's innovative tech landscape, while enterprises such as Manitoba Harvest Hemp Foods and Roquette are leading the way in plant protein development. The Enterprise Machine Intelligence & Learning Initiative (EMILI) plays a pivotal role in accelerating digital agriculture innovation. As an industry-led non-profit, EMILI collaborates with producers, industry, and academia to foster a sustainable and economically resilient digital agriculture sector. Their Innovation Farms, located on a 5,500+ acre seed farm near Winnipeg, provide a real-world setting for testing and validating agricultural technologies, thereby facilitating the adoption of intelligent technologies in agriculture. Biotech Advancements Winnipeg's biotechnology and health research sector employs approximately 4,200 individuals, accounting for 8% of Canada's biotech activity despite representing only 4% of the national population. The sector focuses on pharmaceutical and biopharmaceutical research and development, including specialty hyper-immune plasma and recombinant therapeutic products. Agricultural biotechnology is also prominent, with efforts to develop crop varieties with improved pest resistance and enhanced qualities. The city is home to significant research institutions, such as the National Research Council's Institute for Biodiagnostics, which specializes in developing noninvasive medical diagnostic technologies. The University of Manitoba also contributes to biotech research through its Faculty of Agriculture and Food Sciences and the Smartpark Research and Technology Park, which fosters university-industry partnerships in health and biotechnology. Supportive Community Initiatives Winnipeg fosters a supportive environment for startups through various community initiatives. Organizations like North Forge Technology Exchange offer incubation and acceleration programs, providing entrepreneurs with mentorship, resources, and collaborative spaces to develop their ventures. North Forge has helped over 60 companies access more than $180 million in financing, underscoring its impact on the local startup ecosystem. Edmonton Edmonton is fast becoming a powerhouse in the world of AI. Known for its groundbreaking innovations and strong collaborative network, the city has cultivated a unique ecosystem where academia, industry, and government converge. The Backbone of AI Success in Edmonton At the heart of Edmonton’s AI scene is the University of Alberta, a globally recognized leader in artificial intelligence research. Known for its breakthroughs in machine learning, deep learning, and reinforcement learning, the university has set the stage for Edmonton’s reputation as an AI powerhouse. Adding to this is the Alberta Machine Intelligence Institute (Amii), a driving force for turning cutting-edge research into real-world applications. Founded in 2002, Amii has worked with more than 300 companies, helping them integrate AI solutions into their operations. It’s also part of the Pan-Canadian AI Strategy, alongside Mila in Montreal and the Vector Institute in Toronto, which supports world-leading research and innovation. A Community Built for Collaboration What makes Edmonton unique is its collaborative spirit. The city is home to over 1,700 tech companies and eight post-secondary institutions, creating a perfect environment for startups to grow and thrive. Through partnerships between academia, industry, and government, Edmonton’s tech ecosystem fosters innovation at every level. Programs like the Pan-Canadian AI Strategy bring top talent to the city, ensuring a steady stream of experts to drive growth and breakthroughs. Accelerating Economic Growth Edmonton’s tech sector is growing at an incredible pace. Between 2021 and 2023, the ecosystem generated $1.5 billion in value- a 51% compound annual growth rate. In 2023 alone, venture capital investments reached $136.8 million, a staggering 324% increase from previous years. These numbers reflect the city’s rising status as a key player in Canada’s tech landscape. Montreal Montreal has firmly established itself as a vibrant tech hub renowned for its leadership in AI, thriving gaming industry, and supportive bilingual environment that fosters innovation and attracts tech startups. Artificial Intelligence Leadership Montreal is recognized as a global leader in AI research and development. The city is home to Mila, the Quebec Artificial Intelligence Institute, the world's largest academic deep-learning research institute. Mila collaborates with industry leaders to advance AI applications across various sectors. For instance, in September 2023, Ubisoft partnered with Mila and McGill University to create a research chair focused on responsible AI in video games, highlighting the city's commitment to ethical AI development. Thriving Gaming Industry Montreal boasts a robust gaming sector, hosting numerous innovative companies. Notable examples include: Double Stallion Games: An independent studio known for developing action-packed arcade games. Meta4.Games: An award-winning studio specializing in virtual reality experiences. Alice & Smith: Specializing in alternate reality games. Supportive Bilingual Environment Montreal's bilingual (French and English) environment enhances its appeal to a diverse talent pool and facilitates international collaborations. This linguistic duality enables startups to operate seamlessly in global markets and attract investments worldwide. The city's multicultural atmosphere fosters creativity and inclusivity, essential elements for innovation in the tech industry. Collaborative Ecosystem The city's tech ecosystem is characterized by collaboration between academia, industry, and government. Initiatives like the International Centre of Expertise in Montreal for the Advancement of AI (ICEMAI) exemplify this synergy, promoting responsible AI development and positioning Montreal as a leader in ethical AI practices. Ottawa Ottawa has solidified its status as a prominent technology hub, leveraging strategic government partnerships, exceptional cybersecurity expertise, and a rich pool of skilled talent. Government Partnerships As Canada's capital, Ottawa benefits from strong government and tech industry collaborations. A notable example is Nokia Canada's initiative to transform its Ottawa facility into a leading sustainable research and development hub for information and communications technology (ICT) and cybersecurity. This project, supported by federal, provincial, and municipal governments, is expected to create over 340 high-value jobs and enhance Canada's tech ecosystem. Cybersecurity Expertise Ottawa is internationally recognized for its cybersecurity capabilities, housing more than 100 companies specializing in areas such as encryption, identity and access management, and vulnerability defense. The city's cybersecurity landscape is further strengthened by the presence of the Communications Security Establishment (CSE), Canada's national cryptologic agency responsible for foreign signals intelligence and protecting government electronic information. Access to Skilled Talent Ottawa's concentration of tech talent is among the highest in North America, supported by institutions like the University of Ottawa. Collaborations such as the uOttawa-IBM Cyber Range provide immersive cybersecurity training, enhancing the skills of both students and professionals. Additionally, partnerships with organizations like the Ontario Centre of Innovation (OCI) and IBM Canada support small and medium-sized enterprises in adopting and integrating cybersecurity technologies. Fuel Your Startup’s Growth with Visible Canada’s thriving tech hubs demonstrate the incredible potential for innovation and growth when startups are supported by vibrant ecosystems. To maximize your startup's potential, you need tools that keep you organized and help you build meaningful relationships with investors. That’s where Visible comes in. With Visible, you can streamline your investor updates, manage fundraising, and maintain clear communication with your stakeholders—all in one place. Give it a free try for 14 days here. Related resource: The Ultimate Guide to Startup Funding Stages Related resource: 11 Steps for Building a Successful Tech Company

Managing equity is one of startup founders' most strategic and challenging responsibilities. Many advisors, investors, and peers contribute valuable insights to a business in the early stages, often without direct financial compensation. For startups with limited cash flow, offering advisory shares becomes a creative and practical way to engage experts while preserving resources for growth. Advisory shares allow founders to attract and retain top-tier talent by providing equity in exchange for critical guidance. This article explores what advisory shares are, how they work, their benefits and drawbacks, and key considerations for offering them in your startup. What Are Advisory Shares? Advisory shares are a form of equity compensation provided to individuals who offer strategic guidance and expertise to a startup. Unlike traditional employee equity, advisory shares are typically granted to external advisors, such as industry experts, seasoned entrepreneurs, or key network connectors, who help the business grow and succeed. These shares often follow a shorter vesting schedule, reflecting the limited but impactful nature of the advisor's contributions. By offering advisory shares, startups can incentivize advisors to commit their time and knowledge, aligning their success with the company’s growth. Advisor Shares vs. Regular Shares (or Equity) Advisory shares and regular shares both represent equity in a company, but their purposes, recipients, and structures are distinct. Regular shares are issued to founders, employees, and investors to reflect direct contributions, whether through work or funding. Advisory shares, however, are explicitly granted to external advisors as compensation for their expertise and guidance, aligning their interests with the company's success without requiring financial or operational involvement. Related resource: CEO vs. Advisory Board: Key Differences in Leadership and Guidance How Are Advisory Shares and Regular Shares Similar? Despite their differences, advisory shares and regular shares share common traits. Both represent ownership in the company, incentivize recipients by tying their potential financial gains to its growth, and typically involve vesting schedules to ensure commitment. Issuing either type of share also contributes to equity dilution, affecting all existing stakeholders. Related Read: The Main Difference Between ISOs and NSOs How Do Advisory Shares Work? While advisory shares can take on different forms, they typically can be boiled down to a few similarities. Of course, these can change depending on your business. Exchanged for advice or expertise Typically offered as NSO stock options Follow a shorter vesting schedule Related resource: Everything You Should Know About Diluting Shares Learn more about how advisory shares typically work below: 1. Advisor Agreement Before granting advisory shares, the startup and advisor enter into a formal agreement that outlines the terms of their relationship. This agreement specifies the advisor’s role, including the scope of their contributions, such as strategic guidance, mentorship, or leveraging their network. It also details the advisor's responsibilities, expected time commitment, and deliverables. Importantly, the agreement defines the number of advisory shares the advisor will receive and the terms under which they are granted, such as the vesting schedule and any conditions tied to performance. By setting clear expectations, this agreement protects both parties and ensures alignment in achieving the company’s goals. 2. Grant of Shares After finalizing the advisor agreement, the startup grants the advisor the right to purchase a specified number of shares at a predetermined exercise price. This exercise price is typically set at the fair market value of the company’s stock at the time of the grant. This approach ensures compliance with tax regulations while offering the advisor an opportunity to benefit from the company’s growth. The grant also outlines the conditions under which the advisor can exercise these options, such as meeting vesting milestones or fulfilling specific responsibilities. By linking the grant to the advisor’s contributions, startups create a mutually beneficial arrangement that aligns incentives with the company’s success. 3. Vesting Period The advisor’s right to exercise their options is generally tied to a vesting period, which ensures their continued commitment to the startup over time. Vesting periods for advisory shares often span shorter durations than employee stock options but typically last one to four years. A common structure includes a one-year cliff, where no options are vested during the first year, followed by monthly vesting thereafter. This means the advisor gains the ability to exercise a portion of their options incrementally, as they fulfill their responsibilities and contribute to the company’s growth. Vesting schedules protect the startup by ensuring advisors earn their shares through sustained involvement and expertise. 4. Exercise of Options Once the vesting period is complete, the advisor gains the right to exercise their options. This involves paying the predetermined exercise price to purchase the shares granted under the advisory agreement. The exercise process typically requires the advisor to notify the company of their intent and complete the necessary paperwork. After the payment is made, the advisor becomes a shareholder in the company and holds equity outright. This step allows the advisor to benefit from any future increase in the company’s valuation, aligning their financial incentives with the startup’s long-term success. 5. Potential Profit If the company’s stock price appreciates over time, the advisor can sell their shares for a profit. Since advisory shares are typically granted at the fair market value at the time of issuance, any subsequent increase in the stock price represents a gain for the advisor. For example, if the exercise price was set at $1 per share and the stock price rises to $10 per share, the advisor can sell the shares at the higher market price, realizing a profit of $9 per share. This potential for financial gain serves as a strong incentive for advisors to contribute meaningfully to the company’s success and growth. Benefits of Advisory Shares Advisory shares come with their own set of pros and cons. Properly maintaining and distributing equity is a critical role of a startup founder so understand the benefits, and drawbacks, of offering advisory shares is a must. Related Resource: 7 Essential Business Startup Resources Learn more about the benefits of offering startup advisory shares below: Access to Expertise and Guidance Advisory shares are a powerful tool for attracting experienced professionals with specialized knowledge that can drive a startup’s growth. These individuals bring valuable insights in areas such as strategy, product development, marketing, or fundraising—critical components for scaling a business. By offering equity in lieu of cash compensation, startups can engage top-tier experts who might otherwise be out of reach financially. These advisors act as strategic partners, helping founders navigate challenges, seize opportunities, and build a strong foundation for long-term success. Related Resource: Seed Funding for Startups 101: A Complete Guide Strengthen Credibility and Network Associating with credible advisors can significantly enhance a startup’s reputation, signaling expertise and trustworthiness to the broader market. Advisors with established industry recognition lend their credibility to the company, boosting its appeal to potential investors, partners, and customers. Beyond reputation, advisors often bring extensive networks of valuable connections, opening doors to strategic partnerships, funding opportunities, and key client relationships. By aligning with respected professionals, startups can accelerate their growth while building trust within their industry. Cost-Effective Compensation As we previously mentioned, most businesses that benefit most from advisors are unable to offer them a salary or cash compensation. With advisor shares, startup founders are able to offer shares as compensation and conserve thei cash to help with scaling their business and headcount. Attract Long-Term Commitment Vesting schedules play a crucial role in fostering long-term commitment from advisors. By distributing equity over a set period, such as one to four years, advisors are incentivized to remain actively engaged with the startup for the duration of the vesting timeline. This structure ensures that advisors continue to contribute their expertise and resources while aligning their success with the company's growth. The gradual allocation of shares motivates advisors to stay invested in the startup’s achievements, creating a mutually beneficial relationship that drives sustained collaboration and progress. Drawbacks of Advisory Shares Of course, offering advisor shares is not for everyone. While there are benefits to offering advisor shares, there are certainly drawbacks as well. Weighing the pros and cons and determining what is right for your business is ultimately up to you. We always recommend consulting with a lawyer or counsel when determining how to compensate advisors. Diluted Ownership The biggest drawback for most founders will be the diluted ownership. By offering shares to advisors, you will be diluting the ownership of yourself and existing shareholders. As advisors are fully vested in 1-2 years, they will potentially not be invested in future success as other stakeholders and could be costly when taking into account the diluted ownership. Potential Conflicts of Interest Advisors might not have the same motivators and incentives as your employees and other shareholders. As their ownership is generally a smaller % and their shares vest early, they are potentially not as incentivized for the growth of your company as employees and larger % owners will be. Getting in front of these conversations and making sure you have a good read on any potential advisors before bringing them onboard is a good first step to mitigate potential conflicts. Extra Stakeholder to Manage Chances are most advisors are helping other companies as well. This means that their attention is divided and you will need to ensure you are getting enough value to warrant dilution. This also means that you are responsible for managing a relationship and communication with another stakeholder in your business — what can be burdensome on some founders. The 2 Variations of Advisory Shares Advisory shares are generally offered in 2 variations — restricted stock awards and stock options. Learn more about each option and what they mean below: Restricted Stock Awards Restricted stock awards (RSAs) are a form of equity compensation where shares are granted to an individual with certain restrictions, typically tied to a vesting schedule or performance milestones. Unlike stock options, RSAs represent ownership of the shares from the moment they are granted, though the recipient may not fully control or sell them until the restrictions are lifted. These shares often include voting rights and entitle the recipient to dividends, aligning their interests with the company’s long-term success. Restricted stock awards are commonly used to reward early contributors or advisors, ensuring their commitment while providing immediate equity ownership subject to conditions. Stock Options Stock options are a type of equity compensation that grants the recipient the right to purchase company shares at a fixed price, known as the exercise price, within a specified timeframe. Unlike restricted stock awards, stock options do not represent immediate ownership but provide the potential to acquire shares if certain conditions, such as vesting schedules or performance milestones, are met. The exercise price is typically set at the fair market value of the shares at the time of the grant. If the company’s valuation increases, the recipient can profit by purchasing the shares at the lower exercise price and selling them at the higher market value. Stock options are often used to align the recipient’s incentives with the company’s growth, encouraging active involvement and long-term commitment. Who Gets to Issue Advisory Shares? Issuing advisory shares is typically reserved for the founder or CEO of a company. Having a decision-making process and gameplan when issuing advisory shares is important. This might mean offering no shares at all, having an allocated amount of advisor shares from the get go, or something inbetween. Making sure your board of directors and other key stakeholders are on board is crucial to make sure that interest and strategy stays aligned for all stakeholders. Related resource: Is An Advisory Board Paid? What Startups Should Know How Many Shares Should You Give a Startup Advisor? Determining the number of shares to offer a startup advisor requires balancing sufficient incentives with managing equity dilution. The exact amount will vary based on factors such as the advisor’s experience, expected contribution, and time commitment. Advisors who bring extensive industry expertise or access to valuable networks may justify a higher equity allocation than those with a more limited role. According to guidelines referenced by Silicon Valley Bank, advisors are often granted between 0.25% and 1% of the company's equity, depending on the startup's stage and the nature of the advisory role. Structuring this compensation strategically- including a vesting schedule or performance milestones- helps ensure that the advisor’s contributions provide meaningful value while maintaining flexibility for the company. Let Visible Help You Streamline the Investment Management Process Managing equity and fostering investor relationships are critical for your startup’s success. Visible simplifies this process with tools for tracking advisory shares, managing fundraising pipelines, and keeping stakeholders informed through data rooms and investor updates. Raise capital, update investors, and engage your team from a single platform. Try Visible free for 14 days.

Why the Chief of Staff is Important for a Startup Startup founders and practitioners are often debating the best actions to take and decisions to make in their early-stage companies. Determining the right hires has been a major part of this conversation. The hot topic on the table lately has been around hiring the role of Chief of Staff. There is a growing conversation about whether startup leaders and founders should hire a Chief of Staff (COS), and here at Visible, we believe it is one of the most important hires you can make. A Chief of Staff is essential for your startup because their role is designed to be an extension of the c-suite’s leadership and strategy. Their role allows companies to scale faster and more strategically. Between the Board of Directors, Executive Board, stakeholders, and employees, startups have a lot of moving parts, and a Chief of Staff can be the cog in the machine that makes all those pieces work smoothly together. A Chief of Staff is the right-hand person to an executive team member, typically the CEO or COO. The COS is tasked with managing the executive’s goals, priorities, internal and external operational tasks, and special strategic projects as needed. The typical responsibilities included in a Chief of Staff role may include: Managing Executive Goals and Priorities A Chief of Staff helps determine what optimized time really looks like. For CEOs and COOs, there is plenty of work that could easily fill the day. But what work is most important for business development and moving the business forward? A Chief of Staff helps direct the decision-making and serves as a sounding board for the CEO, owning the task of keeping the executive aligned to the goals he or she set forth to push the business forward. A COS considers these executive goals and even formalizes them in a framework such as the OKR (Objective Key Results) framework. With these executive OKRs formalized, a COS helps guide the CEO/COO’s priorities day over day. Related resource: Should I Consider a Part-time Executive for My Startup? Operational Tasks With specific areas of work, including board meetings and other critical decision-making sessions or meetings on the agenda, the Chief of Staff helps manage these priorities by handling operations tasks like agenda setting and distribution, communications with teams across the startup to gather insight and updates on various company-wide priorities and progression. Not only will a Chief of Staff work on internal operational tasks like meeting prep, gathering updates, and tracking company progress towards goals, but they also tend to handle external operational tasks as well. These external operational tasks might include sending investor updates to stakeholders, serving as the point of contact to the Board of Directors representing the CEO’s office, or even working on communications and PR. Special Strategic Projects Startups move fast, and different priorities and special obligations come up for leadership out of the blue. Additionally, as your startup goes through strategic growth periods like fundraising or even acquiring smaller startups down the line, the priorities of a CEO’s time will greatly change. These strategic times are the perfect way to utilize a COS. If fundraising is going to take up a significant chunk of a CEO’s time, a Chief of Staff can step in and manage aspects of that strategic task such as deck assembly, overview materials for the potential investors, and communication with parts of the business that need to deliver information for said fundraising presentation. Chief of Staffs are typically very versatile in their skill set, with communication, strategic thinking, and analytical skill sets. This background makes them the perfect person to take on roles that require strategic thought and concise summaries but are potentially too time-constraining for a CEO to dedicate all of their energy to. With their unique mix of hard and soft skills, executive insight, and strategic position in the company, a COS is a major value-add to any startup. Our team at Visible has identified seven primary ways that a Chief of Staff can strengthen your startup. When is it Time to Hire a Chief of Staff? Determining the right moment to bring a COS into your startup is crucial for maximizing their impact. By recognizing the following indicators and acting promptly, startups can leverage the unique skills and perspectives that a Chief of Staff brings to the table, ensuring sustained growth and success. Related resource: How to Hire Your First 10 Startup Employees Here are some key indicators that it might be the right time to hire a COS: Leadership Bandwidth is Strained As your startup grows, the demands on the leadership team increase exponentially. This strain manifests as longer work hours, difficulty in prioritizing tasks, and a constant feeling of being overwhelmed. Executives may find themselves bogged down with operational details rather than focusing on strategic initiatives. A Chief of Staff can help alleviate this burden by managing critical tasks, streamlining decision-making processes, and allowing leaders to focus on high-level strategic goals. They act as a force multiplier, extending the reach and effectiveness of the leadership team. A Need for Cross-Departmental Collaboration Effective cross-departmental collaboration is essential for startups to innovate and scale. However, as the organization grows, silos can form, and communication breakdowns can occur. This can lead to inefficiencies, duplicated efforts, and missed opportunities. A Chief of Staff ensures seamless collaboration by facilitating communication between departments, aligning goals, and overseeing cross-functional projects. They help to break down silos and ensure that all parts of the organization are working towards the same objectives. Related resource: How to Build Organizational Alignment Easily Mergers, Acquisitions, or Product Launches Significant events like mergers, acquisitions, or major product launches require focused attention and meticulous coordination. These initiatives bring unique challenges such as integrating new teams, managing extensive paperwork, and aligning strategies. A Chief of Staff can manage these complex processes, ensuring that all aspects are covered and that the executive team can concentrate on high-level strategic decisions. They provide the necessary oversight and coordination to make these critical events successful. Leadership Succession Planning Succession planning is vital for maintaining continuity and stability within the leadership team. It involves identifying and developing future leaders within the organization. However, amidst the daily hustle of running a startup, this can often be neglected. A Chief of Staff plays a crucial role in leadership succession planning by mentoring potential leaders, overseeing development programs, and ensuring there is a clear plan for leadership transitions. This not only secures the future of the company but also helps in retaining top talent by providing clear career progression paths. Typical Responsibilities for a Chief of Staff A Chief of Staff in a startup wears many hats, acting as a strategic partner to the CEO or COO. Their role involves a wide range of responsibilities that help streamline operations, drive strategic initiatives, and ensure that the leadership team can focus on high-priority tasks. Below are some of the key responsibilities that a Chief of Staff typically handles, each of which will be covered in more detail in their respective sections. Managing Executive Goals and Priorities A Chief of Staff helps determine what optimized time looks like for the executive team. For CEOs and COOs, there is plenty of work that could easily fill the day. But what work is most important for business development and moving the business forward? A Chief of Staff directs the decision-making process, ensuring that the executive's time is spent on tasks that are crucial for growth. They serve as a sounding board for the CEO, aligning the executive with the company’s strategic goals and formalizing them using frameworks such as OKRs (Objectives and Key Results). This helps guide the CEO/COO’s priorities day by day. Operational Leadership The Chief of Staff manages both internal and external operational tasks, ensuring smooth day-to-day operations. This includes setting agendas for board meetings, gathering updates from various teams, and tracking progress towards company goals. They handle communications across the startup to ensure everyone is aligned with the company’s priorities. Externally, they might send investor updates, serve as a point of contact for the Board of Directors, and manage public relations tasks. By overseeing these operational details, the Chief of Staff allows the executive team to focus on more strategic issues. Strategic Projects Startups often encounter special strategic projects that require focused attention. Whether it’s fundraising, a product launch, or an acquisition, a Chief of Staff manages these projects, ensuring they align with the company’s strategic goals. They take on roles that require strategic thinking and concise summaries, handling aspects such as preparing decks for investors, assembling materials for presentations, and coordinating communication across the company. This enables the CEO to concentrate on core business functions without getting bogged down by the intricacies of these special projects. Important Skills for a Chief of Staff to Have When making the strategic hire of a Chief of Staff, startup founders need to look for specific skills that will ensure the candidate can effectively support the leadership team and drive the company forward. These skills serve as crucial filters and green flags in the interview process, guiding founders on how to frame their questions and identify the best candidate for their organization. Strategic Thinking Strategic thinking is vital for navigating the complexities of a growing startup. A Chief of Staff must be able to anticipate future challenges, identify opportunities, and develop long-term plans that align with the company's vision. By outsourcing strategic thinking to a Chief of Staff, the executive team can ensure that someone is always focused on the bigger picture, allowing them to concentrate on immediate operational needs. This skill is essential for maintaining a clear direction and ensuring the startup's long-term success. Project Management Effective project management is crucial for keeping various initiatives on track and within budget. A Chief of Staff must be adept at coordinating multiple projects, setting deadlines, and ensuring that resources are allocated efficiently. In a growing startup, where rapid execution is key, outsourcing project management to a Chief of Staff ensures that projects are completed on time and meet the company's strategic objectives. This allows the executive team to focus on higher-level strategic decisions without getting bogged down in the details of project execution. Analytical Skills Analytical skills enable a Chief of Staff to interpret data, identify trends, and make informed decisions. In a data-driven startup environment, these skills are critical for providing valuable insights that inform strategic direction and operational improvements. By outsourcing analytical tasks to a Chief of Staff, the executive team can ensure that decisions are based on solid data and analysis, reducing the risk of errors and improving overall efficiency. Communication Skills Strong communication skills are necessary for a Chief of Staff to act as a liaison between the executive team and other departments. They must be able to convey complex ideas clearly, facilitate effective meetings, and ensure that all stakeholders are on the same page. Good communication helps maintain transparency, fosters a collaborative work environment, and ensures that everyone in the organization is aligned with the company's goals. By outsourcing communication management to a Chief of Staff, the executive team can ensure that information flows smoothly and efficiently throughout the organization. Ways a Chief of Staff Can Strengthen Your Startup A Chief of Staff can significantly enhance the effectiveness and efficiency of a startup. By taking on critical tasks and responsibilities, they enable the executive team to focus on strategic goals and high-priority items. Here are some of the ways a Chief of Staff can strengthen your startup: Focus on Priority Items The day-to-day life of a CEO or COO can be extremely hectic, with numerous decisions and tasks competing for their attention. A Chief of Staff helps manage these priorities by filtering out less critical tasks and directing the executive’s time towards the most strategic decisions that align with the company's OKRs (Objectives and Key Results). This ensures that the leadership focuses on what truly drives the business forward while the Chief of Staff handles smaller issues and routine decision-making. Facilitate Smooth Information Sharing Effective communication is crucial for the smooth operation of a startup. A Chief of Staff acts as a central point for gathering and disseminating information across the organization. They collect updates from various departments, distill the most important points, and present a contextualized executive summary to the CEO. This process ensures that the CEO receives all the necessary information without being overwhelmed by details, and that communication flows smoothly from the CEO to the rest of the company. Inform Strategy and Decision-Making A Chief of Staff serves as a valuable resource for keeping the executive team connected to the various happenings across departments. By providing an executive summary of company-wide updates, a Chief of Staff helps the leadership team make informed strategic decisions more quickly. They ensure that all relevant information is considered, facilitating better and faster decision-making processes. Maximize Time While You Scale As a startup scales, the demands on the executive team’s time increase. A Chief of Staff helps maximize this time by prioritizing tasks and focusing on critical projects. They handle routine and operational tasks, allowing the CEO to dedicate more time to deep-think projects and strategic initiatives. This ensures that the leadership’s time is used efficiently, even as the company grows and evolves. Tackle Special Projects Special projects, such as fundraising rounds, product launches, or industry presentations, require focused attention and dedicated resources. A Chief of Staff is perfectly positioned to spearhead these projects, managing aspects such as preparing investor decks, assembling materials for presentations, and coordinating communication across the company. This allows the CEO to stay focused on daily priorities while still ensuring that special projects are executed effectively. Provide Oversight and Perspective Startups can often become echo chambers where new perspectives are hard to come by. A Chief of Staff, especially one with experience from other startups, brings a fresh viewpoint to the c-suite. They provide oversight and serve as a sounding board for new ideas and strategies, helping to ensure that the company stays innovative and adaptable. Push the Business Forward Ultimately, a Chief of Staff is a strategic player in moving the business forward. They streamline operations, manage strategic projects, and ensure effective communication, all of which contribute to the company’s growth. By freeing up the executive team to focus on high-level strategic goals, a Chief of Staff helps take a startup from good to great and potentially to unicorn status. Chief of Staff vs Executive Assistant Understanding the difference between a COS and an Executive Assistant (EA) is crucial for startup founders to ensure they make the right hire at the right time. While both roles support the executive team, they do so in different ways and with distinct focuses. Chief of Staff A Chief of Staff is a strategic partner to the executive team, particularly the CEO or COO. Their responsibilities are broad and focus on aligning the company’s strategic goals with daily operations. Here are some key aspects of the COS role: Strategic Focus: The COS works on high-level strategic initiatives, ensuring that the executive team’s vision and goals are implemented across the organization. Project Management: They handle complex projects that span multiple departments, such as mergers, acquisitions, product launches, and fundraising efforts. Decision-Making Support: The COS provides critical insights and data analysis to support executive decision-making, helping to inform strategy and operational improvements. Cross-Departmental Collaboration: They facilitate communication and collaboration between different departments to ensure everyone is aligned and working towards common goals. Leadership Development: The COS often plays a role in leadership succession planning and mentoring potential future leaders within the organization. Executive Assistant An Executive Assistant, on the other hand, focuses on optimizing the executive’s daily schedule and administrative tasks. Here are some key aspects of the EA role: Administrative Focus: The EA manages the executive’s calendar, schedules meetings, handles correspondence, and organizes travel arrangements. Time Management: They ensure that the executive’s time is used efficiently by prioritizing meetings and tasks, allowing the executive to focus on their most important responsibilities. Task Coordination: The EA handles a variety of administrative tasks that help keep the executive’s day running smoothly, from booking appointments to preparing documents. Support Role: They provide general support to the executive, ensuring that they have everything they need to perform their duties effectively. Routine Operations: The EA is instrumental in managing routine operational tasks, allowing the executive to concentrate on more strategic issues. Key Differences Scope of Responsibilities: The COS has a broader, more strategic scope, focusing on aligning and implementing the company’s long-term goals. The EA’s scope is narrower, concentrating on the day-to-day administrative support of the executive. Strategic vs. Administrative: The COS is involved in strategic decision-making and high-level project management, while the EA handles administrative and logistical tasks. Cross-Departmental Impact: The COS often works across departments to facilitate collaboration and ensure alignment with company goals. The EA typically works closely with the executive and less so with other departments. Long-Term vs. Short-Term Focus: The COS is focused on long-term strategic initiatives and projects that drive the company forward. The EA is focused on the immediate, short-term needs of the executive. Making the Right Choice For startup founders, deciding between hiring a Chief of Staff and an Executive Assistant depends on the company’s current needs and stage of growth: If the company needs high-level strategic support, project management for complex initiatives, and cross-departmental coordination, hiring a Chief of Staff is the right choice. If the primary need is managing the executive’s schedule, handling administrative tasks, and ensuring day-to-day operations run smoothly, then an Executive Assistant is the appropriate hire. Equipping a Chief of Staff for Success at a Startup To ensure a COS is successful at your startup, it's crucial to clearly define their role and responsibilities from the outset. This includes creating a detailed job description that outlines specific tasks and expectations. Additionally, providing a comprehensive onboarding process with clear goals and KPIs will help the COS integrate smoothly and start contributing effectively. Regular check-ins and feedback sessions will also ensure they are aligned with the company’s strategic goals and can adjust to any evolving needs. Equipping your COS with the right tools and resources, fostering open communication, and maintaining a supportive environment will enable them to execute their duties effectively. This preparation ensures that the COS can focus on driving strategic initiatives and managing critical projects, ultimately contributing to the startup’s growth and success. How Visible Can Help Visible offers a range of tools and resources designed to support Chief of Staffs in their roles, making it easier to streamline executive and investor communications. With features that facilitate data tracking, reporting, and stakeholder updates, Visible ensures that your Chief of Staff can efficiently manage information flow and keep everyone aligned with the company’s strategic objectives. By leveraging Visible's platform, startups can enhance their operational efficiency, improve decision-making processes, and ultimately drive growth. For more information about how Visible helps Chiefs of Staff streamline their executive and investor communications, learn more here.

Founders are tasked with hundreds of responsibilities when starting a business. On top of hiring, financing, and building their product, early-stage founders are generally responsible for developing initial strategies — this includes the earliest sales and market strategies. In this article, we will look to help you craft a successful SaaS sales strategy. We’ll highlight the elements you will want to think of when you start to build your sales motion. This will help your team to understand how to measure the number of potential customers in your pipeline and the growth potential you might see in your revenue numbers. How are SaaS sales different from other types of sales? Like any sales strategy, it is important to start with the basics when looking at a SaaS sales strategy. At the top of your funnel, you have marketing leads that likely find your brand via content, word of mouth, paid ads, your own product, etc. From here, leads are moved through the funnel. In the middle, SaaS companies can leverage email campaigns, events, product demos, etc. to move leads to the bottom of their funnel. However, as the SaaS buying experience takes place fully online — sales and marketing organizations can be creative with their approach. The online experience allows companies to track more robust data than ever before. Additionally, SaaS products have turned into their own growth levers as well — the ability to manipulate pricing and plans has led to the ability for companies to leverage their own product for growth. Related Resource: How SaaS Companies Can Best Leverage a Product-led Growth Strategy The online presence and emergence of product-led growth have led to new sales strategies unique to SaaS companies. Learn more below: 3 Popular SaaS sales models There are countless ways to structure your Saas sales strategy. For the sake of this post, we’ll focus on 3 of the most popular strategies. Learn more about the self-service model, transactional model, and enterprise sales model below: Related Resource: The SaaS Business Model: How and Why it Works Self-service model The self-service model allows prospects to become customers without communicating with your team. As put by the team at ProductLed, “A SaaS self-serve model is exactly what it sounds like. Rather than rely on a dedicated Sales team to prospect, educate, and close sales, you design a system that allows customers to serve themselves. The quality of the product itself does all the selling.” This strategy is typically best for a strong and simple product that typically has a lower contract size. Transactional sales model The transactional model allows you to create income-generating actions where prospects have to become a customer at that point in time. This requires transactional sales models to have high-volume sales that can be supported by a strong sales and customer support team. Enterprise sales model The enterprise model is a strategy to sell more robust software packages to corporations – you will need baked-in features in a prepackaged manner to sell to a fellow business. Enterprise sales is the model that shares the most similarities with a traditional B2B sales funnel. Inbound vs outbound sales In a Saas sales funnel, you are constantly looking to consistently fill your sales funnel with fresh prospects. Once you have prospects you will look to find which prospects are worthy of being qualified and have a high likelihood of converting so you can spend your time communicating with those high-quality prospects. There are two popular strategies for creating fresh prospects that would be defined as inbound and outbound sales strategies. Inbound sales is when you invest in marketing to create prospects reaching out to you – fresh prospects reaching out to your business to ask about your software product. As put by the team at HubSpot: “Inbound sales organizations use a sales process that is personalized, helpful, and directly focused on prospects’ pain points throughout their buyer’s journey. During inbound sales, buyers move through three key phases: awareness, consideration, and decision (which we’ll discuss further below). While buyers go through these three phases, sales teams go through four different actions that will help them support qualified leads into becoming opportunities and eventually customers: identify, connect, explore, and advise.” An inbound strategy typically works best for SaaS companies that need a greater volume of customers and can nurture them and move them through their funnel at scale (e.g. self-service model) Outbound sales on the other hand are having members of your organization reach out to potential prospects to see if they would be interested in using your service. Outbound sales require highly targeted and proactive pushing of your messaging to customers. Generally, outbound sales require dedicated team members to manually prospect and reach out to potential customers. This means that outbound sales organizations do not naturally scale as well as an inbound sales organizations and will likely require a higher contract value. An enterprise model would rely heavily on Outbound sales, while a self-service business model will rely heavily on Inbound sales. The SaaS Sales Process The best Saas sales strategy will be a hybrid of inbound and outbound sales, but all of them should include a sales funnel. This funnel should have stages that help to qualify your prospects. These stages should be: Step 1: Lead generation This activity is often times a marketing activity that gives you contact or business information to explore the fit further Step 2: Prospecting This is where you develop the bio of who is the contact you are reaching out to within the organization. It is always helpful to prospect for someone who can make a buying decision Step 3: Qualifying In this step, you need to understand whether the prospect has the resources to pay for your product and the problem that your product can solve. This step is often the time for you to ask questions of your prospects Step 4: Demos and presenting This is when you will share the features and capabilities of your product with the qualified prospect. You want to show them the different features and where they can get the most value. Step 5: Closing the deal After your demo or a presenting call, the prospect should be pushed to a point where they need to make a decision on whether to buy your product. Step 6: Nurturing Once someone becomes a customer, you need to make sure to nurture them and grow your product offering with their business. This is the most difficult stage. Make sure to share your new product releases, stay in tune with how they are using your product, and build relationships with your customers. Cultivating a robust sales team To create a sustaining sales team, it is important to hire talented and tenacious people to own your sales funnel. They will need to track conversion numbers, stay organized with their outreach to prospects, and grow your funnel over time. There are three key roles within a Saas sales funnel. Those positions within your organization are: Sales development representatives (also known as business development representatives) These members of your team own lead generation, prospecting, and qualifying potential customers on your sales team. They get paid 40-60k/year depending on geographical location and experience. They should be tasked with outreach and drumming up new business. Account executives Account executives should focus on giving product demos, closing deals, and nurturing existing customers. They should be a bit more buttoned up in their approach and have a commission incentive associated with the # of accounts they manage. Sales managers/VPs Sales managers and Vice presidents of sales should take ownership of the data within your sales pipelines. Numbers like # of new leads, # of new qualified leads, # of new customers, # of churned customers, amount of new revenue, and lead to customer conversion %. Growing these sales numbers each quarter. Measuring these numbers weekly, monthly, and quarterly. Making them visible to the rest of the company regularly. 8 Key Elements of a successful SaaS sales strategy One of the most important elements of building a successful business is having a like-minded team around you to support and work with you. Make sure to align with all your team members and hire people with good work ethics and similar values of your company. A good sales team should be competitive, goal-oriented, and metric-driven. The sales managers and VPs will be really crucial in shaping the team dynamics and culture of your business. Hire great people and the numbers will take care of themselves! We’ve identified 8 elements of a successful sales strategy that every Saas sales strategy should include 1. Solidify your value proposition It is so important to understand thoroughly and communicate your product’s core value proposition. If someone decides to buy your product, they should know how to use the product and how to get the most out of it. 2. Superb communication with prospects Communication is of the utmost importance. Make sure your prospects understand your product and how it will help their business. Inform them of new product updates 3. Strategic trial periods An effective strategy is to give potential customers a free trial of your product to understand your value proposition. You want to make sure not to make this trial period too short or too long. Make it strategic so the prospect will understand the value prop but also be encouraged to make a buying decision. 4. Track the right SaaS metrics Tracking your core metrics is vital to success. See a few of those below: Customer Acquisition Cost – the amount of money it takes to acquire a new customer Customer Lifetime Value – the amount of value a customer provides your company over the course of their relationship with you as a customer. Lead velocity rate – the growth percentage of qualified leads month over month. This will help you understand how quickly you are qualifying your leads Related Resources: Our Ultimate Guide to SaaS Metrics & How To Calculate and Interpret Your SaaS Magic Number 5. Develop a sales playbook Every successful sales management team should develop a playbook on how to deploy their resources and where each team member should spend their time. Playbooks are often thought of in sports terms, but they also work wonders in the business world. They will help you do things efficiently and effectively. 6. Set effective sales goals How many new customers does your business hope to bring in next month? This is an important question and one your whole sales team should understand and work towards! 7. Utilize the right tools to enhance the process Your team should have all the resources at their disposal to communicate effectively and track their metrics. As you build out your strategy and team, be sure to give them all possible resources at their disposal. There are tons of great tools out there for teams to make the most out of their time and have direct methods of communication with customers and one another. 8. Establish an effective customer support program A huge part of an effective sales strategy is welcoming potential customers and making sure your existing customers are not forgotten about. When customers reach out, it is important to talk and listen to their issues. Understand what they are needing so your product can continue to evolve. Make sure anyone getting introduced to your product will also have the information they need to use your product successfully. It might be helpful to include this member of your team in your sales meetings and keep them informed as to messaging and efforts for growth! Generate support for your startup with Visible Developing a successful SaaS sales strategy is not an easy task. It will take a hybrid approach of many of the elements listed in this article and will need attentive members of your team to nurture it and test new things. We created Visible to help founders have a better chance for success. Stay in the loop with the best resources to build and scale your startup with our newsletter, the Visible Weekly — subscribe here. Related resource: Lead Velocity Rate: A Key Metric in the Startup Landscape

Jessica is the co-founder and president of Maad, francophone Africa’s fastest-growing B2B e-commerce player. Jessica and her team adopted Visible in December 2021 to start sending out investor updates for the first time after closing a pre-seed round. Since then the team at Maad has continued to leverage Visible’s suite of fundraising tools such as data rooms and pitch decks. Maad successfully closed its seed round led by Ventures Platform in late 2023. Read more about their recent coverage in TechCrunch here. This case study details why Maad chose Visible and the specific solutions they leveraged to support the successful raise of their seed round. Jessica's Founder Journey—From Airbnb to Empowering Retail Owners in Africa Maad was co-founded by Jessica Long in 2021. Jessica has a demonstrated passion for creating software that adds value operationally. She fostered this passion in her previous work as a software engineer at Airbnb, building systems to support novel machine learning and crowdsourcing technology at Idibon in San Francisco, and leading the development of national digital health platforms in West Africa as the Director of Global Services at Dimagi. Jessica started Maad because she believed that better data tools could transform the business landscape of Senegal and other developing West African countries. After spending two years building out a generalizable tech platform to track field operations of all kinds, she and her cofounders zeroed in on the informal retail market. With 100,000s of small shops sourcing the same products from a patchwork supply network, Jessica saw a big opportunity to connect small shops directly to the agribusinesses supplying them. Maad is now Francophone Africa's fastest-growing B2B e-commerce player. Maad supplies food, beverages, and everyday household products to thousands of small shops. The company is dedicated to empowering traditional retailers in Francophone West Africa. Their product offerings provide traditional retailers with a mobile app that’s a one-stop shop for all their supply needs and Fast-Moving Consumer Goods (FMCG) brands with a complete picture of the fragmented consumer market. The Need to Professionalize Investor Communications After Raising a Pre-seed Round Maad closed a pre-seed round in 2021 led by Launch Africa, Oui Capital, and Alumni Ventures. This was the first time Jessica and her cofounders had ever sent out monthly investor updates. Their first attempt included a few bullet points in an email to which her investors gave her feedback: “You could be doing this more professionally.” Jessica’s early investors explained that monthly updates are often the first thing that new investors will look at to understand the trajectory of a company. “Writing crisp, effective updates was one of the best ways to showcase our company’s growth and development,” - Jessica Long, Co-Founder and President of Maad The team at Maad took this feedback to heart and evaluated several tools for the job. In response to why Jessica chose Visible she shared, “Visible struck us as the best choice, with its emphasis on high-quality email reports.” Jessica highlighted specific features that made Visible stand out: Filterable contact lists that make it easy to manage the email’s audience The ability to add charts and graphs inline The optional live data integration The ability to add photos and GIFs Recipient engagement tracking Maad’s Growing Need for Visible’s Fundraising Solutions Originally Maad’s primary use case for Visible was sending out monthly updates to investors. When Maad started its second fundraise, Visible became its centralized fundraising solution where they also hosted their pitch decks and data rooms as well. “It truly became a home for sharing information with investors about our company.” - Jessica Long, Co-Founder and President of Maad Since first leveraging Visible in December 2021 to update current investors, Maad utilized Visible’s more advanced fundraising solutions and successfully closed their Seed round of $2.3M (in equity) in late 2023. The round was led by Ventures Platform. Read more about the announcement of Maad’s recent financing in TechCrunch here. Visible Impact on Maad’s Investor Engagements Visible has equipped Maad to send high-quality investor updates every month since December 2021. Visible's update engagement tracking allowed Jessica to see how closely prospective investors were following her company, which helped their team prioritize their timespend during the seed stage fundraise. Increasingly, the team at Maad kept all investor-related information assets on the Visible platform including monthly investor updates, pitch decks, and data rooms. This created a clean and consistent place for sharing information and tracking engagement. “Every month we get compliments on the quality of the investor updates we are able to generate with Visible’s platform.” Maad’s Top Four Visible Solutions Jessica shared the key advantages of using the Visible platform are: The beautiful and polished investor updates Thoughtful collaboration and versioning features Engagement tracking Consolidation of all major sources of investor information onto a single platform Below are some examples of some of Maad’s favorite solutions in Visible. 1) The ability to store investor updates all in one place. This makes it easy to review previous updates, track engagement rates, and resend the updates if needed. 2) Fun features like directly embedded GIFs in newsletters allow us to connect with Maad’s supporters with more immediacy. 3) Uploading different pitch decks to the same link is an incredible feature for us. We love the versioning and collaboration this allows us internally, while presenting a unified experience to external collaborators 4) Beautiful graphs, directly configurable on the platform, are one of the most popular features of our monthly updates:

About Airtree Ventures Airtree is a Sydney-based venture capital firm backing founders based in Australia and New Zealand building the iconic companies of tomorrow. The firm was founded in 2014 and is now deploying out of its 4th fund with $1.3 billion in assets under management. Their portfolio includes over 105+ portfolio companies and 250+ founders who have helped create over 17,000 jobs. Airtree’s portfolio includes the region’s breakout technology companies, such as Canva, Go1, Employment Hero, Pet Circle, Immutable, and Linktree. For this case study, we spoke to Dan Lombard who is the Data Lead at Airtree Ventures. Related article: Airtree Ventures already returned its first fund thanks to Canva while maintaining the majority of its stake Fragmented Systems and Processes Prior to Visible Prior to the integration of Visible, Airtree relied heavily on a fragmented system of spreadsheets to manage their portfolio of 105+ companies. Each quarter, four employees were tasked with managing the relationships with the points of contact at 15 to 20 portfolio companies through manual outreach and communications. This reliance on spreadsheets resulted in inefficiencies and potential data loss, as spreadsheets are prone to break when modified. Challenges With Data Accuracy and Scaling Manual Outreach to a Growing Portfolio Before Visible, 80% of Airtree’s portfolio monitoring problem was having clean data and scaling outreach to their portfolio companies. They faced two primary challenges with their former system: Operational Efficiency: Four team members spent significant time manually collecting data from over 100 companies every quarter. The Airtree team members were sending one-off email communications to each company and manually keeping track of who needed to be followed up with at each company which diverted resources from other critical projects they could be working on. Data Integrity and Scalability: Frequent changes to the data in spreadsheets resulted in errors in the sheets and data loss, which caused frustration as there was no way of understanding which changes were made to the sheet and when. This process made it difficult to scale portfolio monitoring operations as Airtree grew. Why Airtree Chose Visible as their Portfolio Monitoring Platform Airtree chose Visible for its robust, scalable, and user-friendly platform. Key factors influencing their choice included: Ease of Use and Customization: Visible's platform offered unparalleled customization and ease of use. Support and Development: Visible’s team actively listened to feedback, offered best practices, and continuously invested in their product, ensuring a partnership that catered to Airtree’s evolving needs. Automation and Integration: Visible excelled in automating portfolio monitoring and offered a frictionless experience for founders. Airtree leveraged the Visible API to seamlessly integrate data into their existing data warehouse system. Airtree’s historical data collection process, previously led by four Airtree team members, is now a streamlined process led only by Dan, who leverages Visible Requests to collect data from their portfolio of 105+ companies. Visible Requests empowers Dan to send customized link-based data requests to each company, automate the email reminder process, and easily keep track of where companies are in the reporting process. View an example Visible Request below. Onboarded to Visible within 24 Hours Visible provided Airtree with an efficient and supported onboarding. When asked about Airtree's onboarding with Visible Dan Lombard shared the following: Visible stood out by enabling a swift and seamless transition that was operational in less than 24 hours, a stark contrast to other providers who estimated a quarter for full implementation. This rapid integration was facilitated by a comprehensive onboarding template provided by Visible. Visible API & Airtree’s Data Infrastructure With the implementation of Visible, Airtree wanted to take a more sophisticated approach to the way they handle their portfolio data with the goal of driving more valuable insights for their team. The approach needed to be automated, integrate with other data sources, and have a singular view accessible for the whole team. This was not possible when their data lived in disparate systems, files, and spreadsheets. Dan Lombard has led the improvement of Airtree's data infrastructure. Now, data sources like Visible and Affinity are piped into Snowflake via recurring AWS Lambda jobs. Airtree leverages the Visible API daily. Dan mentioned that while Airtree collects data quarterly, a daily sync of the data is crucial because Airtree is always onboarding new companies, communicating with their founders, and uploading historical data. “The Visible API gives us this level of daily fidelity and only takes the AWS Lambda job 5 minutes to populate an entire data architecture.” - Dan Lombard, Data Lead at Airtree Ventures Once the data is in their database, Snowflake handles the ETL and entity matching. Airtree then has Streamlit sit on top of Snowflake to query data, provision access, and build out new insights. Advice for Other VC Firms Building Out Their Data Infrastructure Don’t overcomplicate things to start. It is easy to get caught up in the bells and whistles. Dan recommends a bias towards simplicity. Start small and use it as a stepping stone as you build things out. Conclusion Airtree’s adoption of Visible transformed their portfolio management by automating key processes and centralizing data, thus enabling more strategic decision-making and efficient operations. The case of Airtree is a testament to how the right technological partnerships can profoundly impact business efficiency and data management.

It’s common for venture firms to start raising their next fund in the last year of capital deployment, typically years 3-4 of a fund’s life. This poses a sort of chicken-and-egg problem because many of the common fund performance metrics that Limited Partners use to drive allocation decisions only become reliable, and therefore more meaningful, around year six (Source: Cambridge Associates). Farooq Abbasi, founder and General Partner of Preface Ventures, created a Seed Stage Enterprise VC Funding Napkin to help GPS think through alternative fund metrics that help communicate performance outside the traditional indicators that LPs use to measure success for more mature funds. The Seed Stage Enterprise VC Funding Napkin helps answer the question "What is good enough to raise a subsequent fund in the current market conditions". Farooq from Preface Ventures joined us on Tuesday, February 27th for a discussion about the fund performance metrics GPs can use to benchmark and communicate fund performance when it's still 'early'. View the recording below. Webinar Topics The issue with ‘typical’ fund performance metrics for ‘early’ funds Overview of Preface Venture’s Seed Stage Enterprise VC Funding Napkin Deep dive into alternative early performance benchmarks How to keep track of alternative fund performance metrics How to leverage alternative fund performance indicators into your fundraising narrative Inside look into how Preface Ventures keeps LPs up to date Q&A Resources From the Webinar Christoph Janz's What does it take to raise capital, in SaaS, in 2023? Preface Ventures' A GP's View on VC Fund Performance When It's Early Diversity VC About Preface Ventures Preface Ventures is a New York City-based firm started in 2020 led by Farooq Abbasi. Preface invests $500-$2M at the pre-seed and seed stage into startups who are building the Frontier Enterprise structure. Preface has 20 active positions in Fund II and 7 active positions in Fund III. (Learn more)