Fundraising

Seattle has become a vibrant hub for startups, driven by a combination of technological innovation, top-tier talent, and a supportive investment landscape. The city is home to global tech giants such as Amazon and Microsoft, which have helped establish a strong foundation for technology-driven entrepreneurship. Beyond the major corporations, Seattle boasts a highly educated workforce, with talent frequently emerging from the University of Washington and other prestigious institutions. The city also benefits from a supportive infrastructure that includes startup accelerators like Techstars Seattle and coworking spaces such as The Cloud Room and The Pioneer Collective. Emerging innovation hubs in neighborhoods like South Lake Union and Pioneer Square have become focal points for the startup community, hosting a diverse mix of startups, venture capital firms, and creative workspaces. With these combined elements, Seattle continues to solidify its reputation as an ideal location for founders seeking to raise capital and build transformative companies. This guide will explore the key elements of Seattle's startup landscape, from active VCs and strategic fundraising insights to overcoming challenges and leveraging regional advantages for success. Top 10 Active VCs in Seattle Madrona Venture Group About: Madrona Venture Group has been investing in early-stage technology companies in the Pacific Northwest since 1995. Thesis: Early Stage through the long run Pioneer Square Labs About: A seed and pre-seed venture capital fund based in Seattle, Washington. Thesis: Investing in market-defining companies at Pre-Seed, Seed, and Series A Flying Fish Partners About: We are an early-stage venture firm based in Seattle investing in high-potential AI and ML technology companies across the U.S. and Canada. We believe artificial intelligence and machine learning will disrupt every industry and are looking for the next generation of leaders in every field who are building companies with machine learning at the heart of their strategy. Frazier Healthcare Partners About: Since 1991, Frazier Healthcare Partners leverages the experience of its team of investment professionals, Center of Excellence, Senior Advisors and Executives in Residence to identify broader industry trends, develop specific investment theses, and then partner with accomplished industry executives to identify, acquire, and optimize businesses across healthcare. Within its Growth Buyout strategy, Frazier has invested over $2.7 billion in 44 portfolio companies across 10 investment vehicles. Frazier’s core values are based in integrity, performance, perseverance, transparency, empowerment, and social impact, and all six values drive how Frazier operates as a firm. Keeler Investments About: We invest between $100,000 -250,000 into Founder, Pre-Seed and Seed rounds, with substantial reserve for follow on. We like to play a supportive and engaged role to help a company early in its life, with a particular focus on connecting our portfolio company's to leading later stage investors up and down the West Coast. Our primary focus is on software and services, both Enterprise and Consumer. That said, we have invested in non-software opportunities when the team and market present a compelling opportunity. We have recently begun investing in companies at the forefront of the "Environmental Economy" who are bringing new, sustainable and compelling solutions to the table. Voyager Capital About: Voyager Capital is a leading Pacific Northwest venture firm providing entrepreneurs with the resources, experience and connections to build successful technology companies. Voyager leads first venture round investments in software, analytics and cloud infrastructure startups, deploying the firm's domain expertise, go-to-market and team building resources help build market leaders. The firm has offices in Seattle, Washington and Portland, Oregon."​ Thesis: With a focus on investing in the modern economy through AI-driven business solutions, software-driven hardware, sustainable agriculture, and supply chain in the Pacific Northwest and Western Canada, we create a relationship with you early in your company’s lifecycle. We’re entrepreneur centric — so when we invest in your business, we invest in you. Our team is available, responsive and committed to you when and where you need it — from your very first venture round. The result is fast-tracked time to revenue with less capital. Tola Capital About: Tola Capital is a venture capital firm that invests globally in enterprise software companies across multiple stages. Thesis: We look for software companies with essential products for enterprise customers, a solid existing customer base, a strong competitive position, and great talent and culture. Tola Capital invests predominantly in early stage enterprise software companies. Ignition Partners About: Ignition Partners, a dedicated early-stage enterprise software venture capital firm, invests based on decades of operating experience and enterprise relationships. We have lived through the transitions from mainframe to mini to PC to cloud. We are the only firm operating with significant footprints in both Seattle and Silicon Valley, and our network has a global reach. Maveron About: Maveron funds seed and Series A companies that empower consumers to live on their terms. Based in SF and Seattle and invest coast-to-coast. Thesis: Maveron funds seed and Series A companies that empower consumers to live on their terms. Based in SF and Seattle and invest coast-to-coast. Founders’ Co-op About: Founders' Co-op is a seed-stage investment fund based in the Pacific Northwest. Thesis: We are proud supporters of the unique innovation ecosystem that thrives across the entire region and are on a mission to power and enable founders with that pioneer mentality. Seattle’s Fundraising Landscape Seattle’s fundraising landscape is dynamic and rich with opportunities, making it an attractive destination for early-stage startups seeking capital. The city's blend of established tech giants, a growing network of venture capital firms, and a culture of innovation create a supportive environment for entrepreneurs. Building Local Relationships Networking is a cornerstone of Seattle’s startup community. Founders can benefit from engaging in local events such as New Tech Seattle, TechCon 365, and more, which can be found on GeekWire. Accelerators like Techstars Seattle and the WTIA Founder Cohort Fund also provide structured opportunities to build relationships and gain valuable insights. Leverage Regional Expertise Many investors in Seattle focus on industries where the region excels, such as enterprise SaaS, e-commerce, AI, and clean energy. Startups aligning their pitches with these sectors can increase their chances of securing investment. Leveraging Seattle’s tech-driven identity can be a key differentiator for founders seeking funding. Understand Seattle's VC Landscape Seattle's VC ecosystem is heavily oriented towards early-stage investments, with firms like Madrona and Flying Fish Partners frequently backing local startups. However, many Seattle-based VCs also have strong connections to larger Silicon Valley firms, allowing startups to tap into broader networks for later-stage funding when scaling. Advantages for Fundraising and Running a Successful Startup in Seattle Talent Availability for Fundraising and Execution Seattle benefits from a deep pool of experienced founders and advisors, many of whom hail from leading companies like Amazon, Microsoft, and Zillow. These seasoned professionals often mentor and invest in local startups, offering valuable guidance and connections. The University of Washington also contributes significantly, providing a steady stream of tech-savvy talent and access to cutting-edge research, which is a key selling point for VCs. Strategic Focus Areas for Investors Seattle VCs often specialize in tech-heavy sectors such as SaaS, cloud computing, and machine learning, creating targeted funding opportunities for startups in these areas. Investors are also increasingly interested in sustainability, clean energy, and biotech, aligning with global market trends. Many funds emphasize mission-driven and socially responsible investments, reflecting the city’s progressive ethos. Cost-Effective Compared to Other Major Hubs While Seattle isn’t the cheapest city for startups, it remains more cost-effective than hubs like Silicon Valley. Lower operational costs allow founders to stretch funding further while maintaining high-quality operations. Seattle investors also tend to favor capital-efficient businesses with lean operations, aligning with the city’s pragmatic approach to entrepreneurship. Challenges Seattle Startups Might Face and How to Overcome Them Competition for Talent Seattle’s booming tech sector, anchored by giants like Amazon and Microsoft, creates intense competition for top talent. Startups can address this challenge by offering unique perks such as flexible work environments, equity opportunities, and a focus on mission-driven work that appeals to younger professionals. Engaging with university programs and internship pipelines, especially from the University of Washington, can also help startups attract emerging talent. Limited Late-Stage Funding While Seattle is strong in early-stage funding, later-stage capital can be harder to secure locally. Founders seeking growth-stage funding may need to build connections with Silicon Valley or East Coast investors. Attending national investor conferences, participating in cross-regional pitch events, and leveraging introductions from local early-stage investors can help bridge this gap. Navigating a Smaller Investment Pool While Seattle offers high-quality investors, the overall investment pool is smaller than larger hubs like New York or the Bay Area. To mitigate this, founders should focus on developing strong relationships with local investors and actively seek co-investment opportunities with out-of-state firms to diversify their funding sources. Connect With Investors in Seattle 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 Seattle 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.

California is home to one of the most dynamic startup ecosystems in the world, attracting a diverse range of venture capital firms that support innovation across industries such as technology, healthcare, climate tech, and entertainment. From the global tech hub of Silicon Valley to the creative energy of Los Angeles and the biotech strength of San Diego, the state's VC landscape offers founders unparalleled access to capital, mentorship, and resources. In this article, we’ll highlight some of California's top venture capital firms. Top Venture Capitalists in California Silicon Valley 1. Khosla Ventures About: At KV, we fundamentally like large problems that are amenable to technology solutions. We seek out unfair advantages: proprietary and protected technological advances, business model innovations, unique approaches to markets, different partnerships, and teams who are passionate about a vision. Notable Investments: Square, DoorDash, Impossible Foods. 2. Redpoint Ventures About: Redpoint Ventures partners with visionary founders to create new markets or redefine existing ones at the seed, early and growth stages. Notable Investments: Netflix, Stripe, Snowflake. 3. Sapphire Ventures About: Sapphire Ventures is a venture capital firm that focuses on helping technology companies. Entrepreneurs build successful and lasting internet companies. We invest in all stages, all sectors in Asia, US and Israel. Notable Investments: LinkedIn, Box, Square. 4. Social Capital About: Social Capital’s mission is to build the future. We do this by identifying emerging technology trends, partnering with entrepreneurs that are trying to solve some of the world's hardest problems and help them build substantial commercial and economic outcomes. Our returns have placed us among the top technology investors in the world and act as a signal that we have generally been on the right track. Notable Investments: Slack, Box, Yammer. 5. Lightspeed Venture Partners About: Lightspeed Venture Partners is a multi-stage venture capital firm focused on accelerating disruptive innovations and trends in the Enterprise, Consumer, Health, and Fintech sectors. Notable Investments: Snapchat, Nest, Grubhub. 6. Benchmark Capital About: Benchmark Capital is focused on one, and only one, mission: to help talented entrepreneurs build great technology companies. That's what drives them and everything they do - from how they organize their firm to their investment strategy. Their investments range in size from as little as $100,000 to as much as $10 or $15 million. Typically, they invest $3 to $5 million initially and expect to invest $5 to $15 million over the life of a company. Notable Investments: eBay, Twitter, Uber, Instagram. 7. Greylock Partners About: This venture capital firm invests in all stages, exclusively in consumer and enterprise software companies. It led the Series B round for both Facebook and Linkedin. Notable Investments: LinkedIn, Airbnb, Dropbox. 8. Accel About: Accel is a leading venture capital firm that invests in people and their companies from the earliest days through all phases of private company growth. Atlassian, Braintree, Cloudera, CrowdStrike, DJI, Dropbox, Dropcam, Etsy, Facebook, Flipkart, FreshWorks, Jet, Qualtrics, Slack, Spotify, Supercell, UiPath and Vox Media are among the companies the firm has backed over the past 35 years. Notable Investments: Facebook, Slack, Spotify. 9. GV (formerly Google Ventures) About: The VC arm of Alphabet (Google’s parent) investing in the fields of life science, healthcare, artificial intelligence, robotics, transportation, cyber security, and agriculture. It was the most active CVC in 2017. Notable Investments: Uber, Nest, Medium. 10. Menlo Ventures About: We are investors and company builders—we know what it takes to turn a budding idea into a scalable business. We work with early-stage founders to find product-market fit, develop go-to-market strategies, scale their organizations, and support them as they grow. Notable Investments: Uber, Roku, Siri. 11. Bessemer Venture Partners About: Bessemer Venture Partners is the world's most experienced early-stage venture capital firm. With a portfolio of more than 200 companies, Bessemer helps visionary entrepreneurs lay strong foundations to create companies that matter, and supports them through every stage of their growth. Notable Investments: LinkedIn, Shopify, Yelp. Los Angeles 12. Upfront Ventures About: We invest primary in the US but have a 20-year history of funding companies in Europe. Our managing partners (Yves Sisteron & Mark Suster) are both dual citizens of France & UK respectively. Kevin Zhang funds games companies and looks in Sweden, Finland, UK and beyond. And locally Julien Etaix is based in Paris and open to talking with anybody on the continent. Notable Investments: Ring, TrueCar, Maker Studios. 13. Act One Ventures About: Seed stage fund focused on enterprise software and research from LA Universities. We believe in community, diversity, and Los Angeles. Notable Investments: AuditBoard, Finix, Tapcart, Ordermark, Repeat. 14. LDR Ventures About: LDR is a VC firm based in Los Angeles investing In Female & Minority Founders, Consumer Product, Food, E-Comm, Marketplaces & Legal Tech Thesis: Female led and Los Angeles based, we consult to and invest primarily in female entrepreneurs at the Seed & Series A Stages. Notable Investments: Sweetgreen, Thrive Market, Court Buddy, junzi, LawChamps. 15. TenOneTen Ventures About: TenOneTen Ventures, a Los Angeles-based venture firm, invests in start-ups that apply data and technology to disrupt existing industries. Thesis: TenOneTen Ventures is a Los Angeles-based venture firm that invests in underlying technologies that transform major industries. Notable Investments: Mashgin, Tailscale, Alation, Procore, Scopely 16. Mucker Capital About: MuckerLab is a venture capital firm specializing in incubation, pre-seed, seed, start up, early stage and Series A investments. Thesis: We partner with exceptional entrepreneurs to provide their earliest institutional funding and work with them side-by-side to help launch and scale their new ventures. Notable Investments: Honey, ServiceTitan, Surf Air. San Diego 17. Tech Coast Angels About: Tech Coast Angels is the largest angel investor group in the United States, possessing more than 300 members in five networks in Los Angeles, Orange County, San Diego, Central Coast, and the Inland Empire. Its members provide funding and guidance to more early-stage, high-growth companies in Southern California than any other investment group. Notable Investments: Procore Technologies, Mindbody, Green Dot Corporation, Sandpiper Networks, TrueCar 18. Spark Growth Ventures About: Spark Growth Ventures is a community driven, early & mid stage, vertical-agnostic, technology venture capital firm. Our mission is to support gritty and exceptional founders in their missions by bringing forth the combined value of our strong community. We are fortunate to have a global network of entrepreneurs, C-level relationships, subject matter experts, world-class talent, institutional investors, high net worth individuals and family offices, many of who are investors in our platform. Our team has several decades of global experience in venture capital, entrepreneurship, innovation, executive & board management, functional leadership and advisory work. 19. Ganas Ventures About: Ganas Ventures invests in pre-seed and seed Web 2 and Web 3 community-driven startups in the US and Latin America. Thesis: Ganas Ventures invests in pre-seed and seed Web 2 and Web 3 community-driven startups in the US and Latin America. It's run by solo-GP Lolita Taub. ​​ 20. Lolita Taub About: Lolita Taub is the Chief of Staff and interim Head of Sales at Catalyte, and a 2x TEDx speaker, with a venture capital and enterprise tech background. She is also Scout at Indie.VC, an investor at NextGen Venture Partners, an LP at Operator Collective and Portfolia’s Enterprise Fund; and a former VC at Backstage Capital and K Fund. Lolita holds over a decade of enterprise B2B software, hardware, and services sales experience at IBM, Cisco Systems and in Silicon Valley. 21. Qualcomm Ventures About: Interested in anything wireless, but especially virtual reality, the internet of things, robotics, cloud, and wireless health. Sacramento 22. Impact Venture Capital About: Impact Venture Capital invests in early stage IT startups, with a focus on TMT, Civic Tech, Cyber Security, FinTech, and Data Analytics. Thesis: Early Stage with a focus on AI & AI applied 23. Black Angel Tech Fund About: Black Angel Tech Fund provides startup and early stage capital to companies. Thesis: Investing in next generation innovators. The Current Fundraising Climate in California California remains dominant in the startup ecosystem, attracting substantial venture capital (VC) investments across various sectors. The state's dynamic economy and culture of innovation continue to make it a prime destination for entrepreneurs seeking funding. Fundraising Trends in California In the second quarter of 2024, deal count and total capital raised increased significantly compared to the first quarter. 1,287 funding rounds culminated in $20.9 billion in investments, marking the highest amount of VC cash invested in any quarter over the past year. This uptick suggests a rebound in market activity, indicating that the first quarter may have represented the low point, with expectations for stabilization or further growth in subsequent quarters. Sectors Attracting the Most Investment Several industries in California are currently experiencing significant investor interest: Artificial Intelligence (AI): AI stands at the forefront, with startups in this sector receiving over $24 billion in funding to date. Advancements in generative AI, natural language processing, and machine learning applications are primary drivers of this investment surge. Healthcare and Health Tech: Startups in healthcare secured over $11 billion in the first quarter of 2024, focusing on telemedicine, digital health, and biotechnology. This sector's growth reflects a broader trend towards integrating technology with healthcare services. Biotechnology: Biotech companies continue to attract substantial investments, particularly those involved in research and development of innovative medical treatments and technologies. For instance, Arsenal Bio, a biotech firm, was among the top-funded startups in the third quarter of 2024. Climate Tech: Despite facing fundraising challenges due to high interest rates and delays in federal support, certain climate tech companies have managed to secure funding. However, the sector has seen some companies, like Moxion Power and SunPower, file for bankruptcy, highlighting the volatility and risks associated with this industry. Key Challenges and Opportunities in California's Fundraising Landscape Navigating the fundraising terrain in California presents a unique set of challenges and opportunities for startup founders. Understanding these dynamics is crucial for effectively securing capital and positioning your venture for success. Challenges Cost of Doing Business Expensive Ecosystem: Operating in California entails higher costs, including elevated expenses for rent, salaries, and general overhead. These financial demands can pressure startups to seek larger funding rounds to sustain operations. Intense Competition Among Startups High Volume of Startups: California's vibrant startup scene, particularly in hubs like Silicon Valley and Los Angeles, means founders must differentiate their ventures amidst a crowded and innovative market. High Bar for Entry: Venture capitalists in the state often have access to numerous promising startups, leading to stringent expectations regarding traction, team credentials, and product uniqueness. Focus on Metrics and Proof Points Data-Driven Decisions: Investors prioritize clear evidence of market traction, robust unit economics, and significant growth potential before committing funds. Expectations: Some investors may anticipate rapid growth trajectories or expansive market sizes, posing challenges for early-stage startups still refining their business models. Opportunities Access to World-Class Talent Diverse Workforce: California's status as a global tech hub attracts top-tier talent across various disciplines, including engineering, marketing, and design, providing startups with a rich pool of skilled professionals. Network Effects: The state's dense ecosystem of advisors, mentors, and specialized professionals fosters collaboration and accelerates growth for emerging companies. Proximity to Leading Tech Hubs Silicon Valley: As a global epicenter for innovation, Silicon Valley houses some of the world's most influential venture capitalists and tech companies, offering unparalleled access to resources and funding opportunities. Los Angeles: With a rapidly expanding startup ecosystem, Los Angeles excels in media, entertainment, and consumer technology sectors, providing niche opportunities for startups in these industries. San Diego: Renowned for its biotech and health tech innovations, San Diego offers specialized opportunities for startups in these sectors, supported by a strong network of research institutions and industry experts. Vibrant Startup Ecosystem Innovation Clusters: California boasts numerous accelerators, incubators, and co-working spaces that encourage collaboration and the exchange of ideas, fostering a supportive environment for startups. Networking Opportunities: Regular events such as pitch competitions, conferences, and meetups provide founders with direct access to investors and industry leaders, facilitating valuable connections. Diverse Investor Landscape Broad Spectrum of Investors: The state hosts a wide range of investors, from angel investors to large venture capital firms, enabling startups to find suitable funding partners at various growth stages. Focus on Disruption: California investors often seek bold, transformative ideas, making the region an ideal environment for startups with visionary goals aiming to challenge the status quo. Major Venture Capital Hubs in California California's expansive landscape hosts several prominent venture capital (VC) hubs with distinct characteristics and investment focuses. Understanding these regional nuances can help founders tailor their fundraising strategies effectively. Silicon Valley About: Silicon Valley is synonymous with technological innovation and entrepreneurship. It remains the epicenter of venture capital activity in the US, attracting significant VC investments. Investor Focus: Silicon Valley investors predominantly target technology-driven sectors, including software, hardware, artificial intelligence, and biotechnology. Firms such as Sequoia Capital and Andreessen Horowitz/ a16 are notable players in this region. Los Angeles About: Los Angeles has emerged as a thriving startup ecosystem, excelling in media, entertainment, and consumer technology. The city's diverse cultural landscape and proximity to the entertainment industry provide unique opportunities for startups in these sectors. Investor Focus: VCs in Los Angeles often concentrate on startups at the intersection of technology and entertainment, including digital media, gaming, and content creation platforms. The region also sees investments in e-commerce and health tech. San Diego About: San Diego is renowned for its strong biotechnology and life sciences sectors, supported by a robust network of research institutions and universities. This foundation has cultivated a specialized startup ecosystem focused on health tech and biotech innovations. Investor Focus: Investors in San Diego primarily seek opportunities in biotechnology, pharmaceuticals, and medical devices, leveraging the region's research capabilities and talent pool. Recent investments have been directed towards companies developing novel therapeutics and healthcare solutions. Sacramento About: As the state capital, Sacramento's startup scene is growing, focusing on sustainability, agriculture technology (AgTech), and government technology (GovTech). The city's proximity to state government agencies offers unique opportunities for startups in regulatory tech and public sector solutions. Investor Focus: VCs in Sacramento often focus on AgTech, clean energy, and GovTech startups, aligning with the region's economic strengths and policy landscape. Investments are geared towards companies addressing environmental challenges and enhancing governmental operations. Regional Differences in Investor Approach Deal Size and Stage: Silicon Valley typically sees larger deal sizes and a higher concentration of late-stage investments, reflecting the maturity of its startup ecosystem. In contrast, regions like Sacramento may have more early-stage funding opportunities, catering to nascent startups. Sector Specialization: While Silicon Valley maintains a broad tech focus, regions like San Diego exhibit deep specialization in biotech and Los Angeles in media and entertainment tech. Founders should align their sector focus with each region's strengths to attract suitable investors. Investment Philosophy: Investor expectations can vary by region. Silicon Valley investors may prioritize rapid scalability and disruptive potential, whereas investors in other regions might focus on sustainable growth and sector-specific innovations. Connect With Investors in California 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 California 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.

The United States has long been a global hub for innovation, driven by a thriving ecosystem of venture capital (VC) firms that empower startups to scale and succeed. From Silicon Valley to New York City, the nation's VCs provide more than just capital- they offer mentorship, strategic support, and vast networks that help founders navigate the complex journey of building world-class companies. This article spotlights some of the most active and influential venture capital firms in the US, each bringing unique philosophies and investment approaches to the table. Whether you're a founder seeking early-stage backing or a growth-stage startup looking for significant capital, understanding the strengths and focus areas of these firms can help you identify the right partners to fuel your entrepreneurial ambitions. Top Active VCs in the United States General Catalyst About: General Catalyst backs exceptional entrepreneurs who are building innovative technology companies and market leading businesses, including Airbnb, BigCommerce, ClassPass, Datalogix, Datto, Demandware, Gusto (fka ZenPayroll), The Honest Company, HubSpot, KAYAK, Oscar, Snap, Stripe, and Warby Parker. The General Catalyst team leverages its broad experience to help founders build extraordinary companies. General Catalyst has offices in Cambridge, MA, Palo Alto, CA and New York City. Sweetspot check size: $ 30M Thesis: General Catalyst is a venture capital firm that makes early-stage and growth equity investments. Andreessen Horowitz/ a16z About: Andreessen Horowitz was established in June 2009 by entrepreneurs and engineers Marc Andreessen and Ben Horowitz, based on their vision for a new, modern VC firm designed to support today's entrepreneurs. Andreessen and Horowitz have a track record of investing in, building and scaling highly successful businesses. Sweetspot check size: $ 25M Thesis: Historically, new models of computing have tended to emerge every 10–15 years: mainframes in the 60s, PCs in the late 70s, the internet in the early 90s, and smartphones in the late 2000s. Each computing model enabled new classes of applications that built on the unique strengths of the platform. For example, smartphones were the first truly personal computers with built-in sensors like GPS and high-resolution cameras. Applications like Instagram, Snapchat, and Uber/Lyft took advantage of these unique capabilities and are now used by billions of people. Tiger Global Management About: Tiger Global is an investment firm focused on public and private companies in the global Internet, software, consumer, and financial technology industries. Sweetspot check size: $ 50M Thesis: Our mission is to generate world-class investment returns over the long term. We aspire to do so in a way that makes our partners and portfolio companies proud, as we build a unique, global investment platform. SOSV About: SOSV is a venture capital firm providing multi-stage investment to develop and scale their founders' big ideas for positive change. Sequoia Capital About: Sequoia is a VC firm focused on energy, financial, enterprise, healthcare, internet, and mobile startups. Sweetspot check size: $ 15M Thesis: We partner early. We’re comfortable with the rough imperfection of a new venture. We help founders from day zero, when the DNA of their businesses first takes shape. Lightspeed Venture Partners About: Lightspeed Venture Partners is a multi-stage venture capital firm focused on accelerating disruptive innovations and trends in the Enterprise, Consumer, Health, and Fintech sectors. Sweetspot check size: $ 30M Thesis: The future isn’t built by dreamers. It’s built today, by doers. Index Ventures About: They are an international venture capital firm based in London, San Francisco and Geneva Sweetspot check size: $ 30M Thesis: Other firms invest in deals, Index invests in people. A deal is transactional. Relationships endure, and ours are based on curiosity, thoughtfulness, and deep conviction. Greylock Partners About: This venture capital firm invests in all stages, exclusively in consumer and enterprise software companies. It led the Series B round for both Facebook and Linkedin Sweetspot check size: $ 30M Bessemer Venture Partners About: Bessemer Venture Partners is the world's most experienced early-stage venture capital firm. With a portfolio of more than 200 companies, Bessemer helps visionary entrepreneurs lay strong foundations to create companies that matter, and supports them through every stage of their growth. The firm has backed more than 120 IPOs, including Shopify, Yelp, LinkedIn, Skype, LifeLock, Twilio, SendGrid, DocuSign, Fiverr, Wix, and MindBody. Bessemer's 16 investing partners operate from offices in Silicon Valley, San Francisco, New York City, Boston, Israel, and India. Follow @BessemerVP and learn more at bvp.com. Sweetspot check size: $ 15M Kleiner Perkins About: Kleiner Perkins is a venture capital firm specializing in investing in early-stage, incubation, and growth companies. Sweetspot check size: $ 10M Thesis: To be the first call for founders who want to make history and to partner with them as company builders in pursuit of that goal. Accel About: Accel is a leading venture capital firm that invests in people and their companies from the earliest days through all phases of private company growth. Atlassian, Braintree, Cloudera, CrowdStrike, DJI, Dropbox, Dropcam, Etsy, Facebook, Flipkart, FreshWorks, Jet, Qualtrics, Slack, Spotify, Supercell, UiPath and Vox Media are among the companies the firm has backed over the past 35 years. Sweetspot check size: $ 10M Thesis: We partner with exceptional founders with unique insights, from inception through all phases of growth. Union Square Ventures About: Union Square Ventures is a venture capital firm focused on early-stage, growth-capital, late stage, and startup financing. Thesis: USV backs trusted brands that broaden access to knowledge, capital, and well-being by leveraging networks, platforms, and protocols. Insight Partners About: Insight Partners is a global software investor partnering with high-growth technology, software, and Internet startup and ScaleUp companies that are driving transformative change in their industries. As of June 30, 2023, the firm has over $80B in regulatory assets under management. Insight Partners has invested in more than 800 companies worldwide and has seen over 55 portfolio companies achieve an IPO. Sweetspot check size: $ 50M Thesis: We support companies in good times, as well as challenging ones. Benchmark About: Benchmark Capital is focused on one, and only one, mission: to help talented entrepreneurs build great technology companies. That's what drives them and everything they do - from how they organize their firm to their investment strategy. Their investments range in size from as little as $100,000 to as much as $10 or $15 million. Typically, they invest $3 to $5 million initially and expect to invest $5 to $15 million over the life of a company. Sweetspot check size: $ 10M New Enterprise Associates About: New Enterprise Associates is a global venture capital firm investing in technology and healthcare. Sweetspot check size: $ 25M Options and Considerations for Founders Fundraising in the US The United States offers a diverse range of fundraising options for startups, each suited to different stages of growth, industries, and founder objectives. Understanding these options and the unique aspects of the US fundraising ecosystem can empower founders to make informed decisions and maximize their chances of success. Fundraising Options Venture Capital (VC) Overview: VC firms provide capital in exchange for equity, typically focusing on high-growth startups with the potential for significant returns. When to Consider: Ideal for startups with scalable business models and a proven product-market fit. Key Differences in the US: US VCs are known for their willingness to take risks on early-stage companies compared to many international investors. They also offer extensive support networks, including mentorship and resources. Related resource: Deal Flow: Understanding the Process in Venture Capital Angel Investors Overview: Individual investors who provide early-stage funding, often in exchange for convertible debt or equity. When to Consider: Best for startups in the pre-seed or seed stage looking for smaller funding rounds and strategic guidance. Key Differences in the US: US angel networks are highly organized, offering founders access to syndicates and platforms like AngelList, which streamline fundraising. Related resource: How to Effectively Find + Secure Angel Investors for Your Startup Crowdfunding Overview: Platforms like Kickstarter, Indiegogo, and Wefunder allow startups to raise funds from a broad audience. When to Consider: Suitable for consumer-facing products or startups seeking to validate demand while raising capital. Key Differences in the US: The US has a mature crowdfunding ecosystem, supported by regulations like the JOBS Act, which allows equity crowdfunding. Related resource: Understanding The 4 Types of Crowdfunding Grants and Government Funding Overview: Non-dilutive funding options provided by federal, state, or local governments for specific industries or initiatives. When to Consider: A great choice for startups in sectors like clean energy, healthcare, or technology innovation. Key Differences in the US: Programs like SBIR (Small Business Innovation Research) and STTR (Small Business Technology Transfer) are unique to the US, offering significant financial support without equity dilution. Revenue-Based Financing Overview: Startups receive capital in exchange for a percentage of future revenue until the investment is repaid. When to Consider: Ideal for startups with predictable revenue streams that want to avoid equity dilution. Key Differences in the US: Revenue-based financing is growing in popularity, with firms like Clearco and Pipe leading the way. Family Offices Overview: High-net-worth individuals or families investing directly in startups, often with flexible terms. When to Consider: Best for startups seeking large checks with fewer constraints than traditional VC funding. Key Differences in the US: Family offices in the US are highly active and often open to exploring niche industries or unconventional deals. Corporate Venture Capital (CVC) Overview: Investments from large corporations aiming to gain strategic benefits or insights into emerging markets. When to Consider: Suitable for startups aligned with the strategic interests of the investing corporation. Key Differences in the US: US CVCs, such as Pruven or JLL Spark, are some of the most active globally, often offering deep industry expertise and market access. Related resource: Corporate Venture Capital vs Traditional VCs: Key Differences and Benefits Key Considerations for US Fundraising Market Focus US investors tend to favor startups addressing large domestic or global markets. Founders should be prepared to demonstrate how their solution scales across diverse customer segments. Due Diligence Standards US fundraising often involves rigorous due diligence. Founders should ensure their financials, legal structures, and growth metrics are well-documented and readily available. Networking and Warm Introductions Personal connections carry significant weight in the US fundraising ecosystem. Leveraging networks, attending industry events, and securing warm introductions can substantially increase success rates. Cultural Fit US investors often prioritize founder-investor alignment on vision, values, and long-term goals. Open communication and transparency are crucial for building trust. Connect with Investors in the US With 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 US 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.

New York has cemented its position as one of the world's leading hubs for venture capital (VC). While Silicon Valley and Boston are often top-of-mind for startups, New York offers a distinct and thriving ecosystem for founders seeking investment. Its diversity, both in terms of industries and the range of available investors, makes it an ideal place for startups at any stage- whether you're pre-seed or scaling to Series D. Key Sectors for VC Investment in New York Investors in New York typically focus on industries that leverage the city's global influence, deep talent pools, and unique market dynamics. Prominent sectors include: FinTech: As the financial capital of the world, New York is home to numerous FinTech startups and investors looking to disrupt traditional banking, payments, and insurance systems. HealthTech: The region's robust healthcare networks and top-tier research institutions foster innovations in digital health, biotechnology, and patient management. Media and Entertainment: With a strong presence of media conglomerates, New York attracts startups in content creation, streaming platforms, and ad tech. Enterprise SaaS: Serving businesses worldwide, many VC-backed startups in New York develop software solutions for workflow optimization, data analytics, and cybersecurity. E-Commerce and Consumer Tech: With a consumer-driven market, startups in fashion, lifestyle, and food tech find fertile ground here. Advantages of Fundraising in New York Fundraising in New York offers several advantages: Proximity to Corporations and Markets: With Fortune 500 companies, major financial institutions, and a high concentration of global headquarters, startups can easily find strategic partnerships and early customers. Diverse Investment Landscape: New York's VC ecosystem includes a mix of generalist and specialist firms, angel investors, family offices, and accelerators. Founders can find support regardless of their industry or growth stage. Access to Talent: The city's reputation as a melting pot ensures access to a skilled workforce spanning technical, creative, and operational disciplines. A Dynamic Ecosystem: Events, pitch competitions, and startup accelerators provide platforms for networking, mentorship, and exposure to investors. Startup Landscape in the Greater New York Area While New York City often takes center stage in conversations about startups and venture capital, the greater New York area is seeing a surge in activity as emerging tech hubs make their mark. Areas like Long Island, Westchester County, the Hudson Valley, and even parts of New Jersey and Connecticut are becoming increasingly attractive for startups and investors. These regions offer unique advantages that complement the city's fast-paced environment, making the greater New York area a diverse and dynamic ecosystem for innovation. Emerging Tech Hubs to Watch Long Island Known for its proximity to top research institutions like Stony Brook University, Long Island nurtures startups in biotech, renewable energy, and advanced manufacturing. The area also boasts lower operational costs than Manhattan, appealing to early-stage companies. Westchester County With a strong emphasis on HealthTech and MedTech, Westchester benefits from its proximity to healthcare giants and research hospitals. Startups in this region often leverage access to specialized talent and partnerships with major industry players. Hudson Valley Recognized for its growing focus on sustainable agriculture, clean energy, and artisanal food production, the Hudson Valley is attracting mission-driven startups. The region's picturesque setting and collaborative communities draw founders seeking a balance between innovation and lifestyle. Northern New Jersey Cities like Hoboken, Jersey City, and Newark are experiencing a tech boom fueled by their proximity to NYC, affordable office space, and access to talent from nearby universities like Rutgers and NJIT. FinTech, logistics tech, and consumer startups are thriving here. Connecticut’s Gold Coast Towns like Stamford and Greenwich are becoming hubs for FinTech and enterprise software companies. With a high concentration of financial firms and venture funds, startups benefit from capital access and networking opportunities. What Attracts Startups and Investors to These Areas? Cost Efficiency: Compared to Manhattan, the greater New York area offers more affordable office space and living costs. This particularly appeals to bootstrapped startups and early-stage companies aiming to extend their runway. Talent Pools: The presence of top universities and research centers in these regions ensures a steady pipeline of skilled graduates and experienced professionals. Infrastructure and Connectivity: Proximity to New York City provides startups with easy access to the city’s resources, clients, and investors while allowing them to operate in a less competitive, more collaborative environment. The NYC Impact on Regional Startups Proximity to New York City remains critical for startups in the greater New York area. NYC serves as an anchor, offering: Access to Capital: Many venture capital firms headquartered in Manhattan actively scout for investment opportunities in surrounding areas. Networking Opportunities: Regular events, conferences, and accelerators centered in NYC provide startups with a platform to connect with peers, mentors, and investors. Customer Base: The city’s dense population and status as a global business hub offer startups a vast and diverse market to test and scale their products. The Top Ten VCs in the Greater New York Area Armory Square Ventures About: We are a seed and early stage venture capital firm based in Upstate NY and NYC. We focus on opportunities where we can combine our capital with our networks to help talented entrepreneurs build world-class businesses. Traction metrics requirements: No min. revenue requirement, Addressable markets of at least $500M, Full-time technical/product leader and sales/marketing leader, Prototype of product deployed with a small sample size of customers (even if piloting); capital efficient Thesis: We are entrepreneurs ourselves and seek those as passionate as we are about changing the world through new business. Tech Council Ventures About: Tech Council Ventures is a venture fund investing in early and expansion stage companies across all industries in the US Mid-Atlantic region. The fund invests $500K to $3M initially and provides additional support throughout the growth of the business. Tech Council Ventures’ principals all have 20+ years investing and building promising, rapid growth companies. The fund is affiliated with one of the largest and most active technology councils in the US, TechUnited:NJ, providing for its portfolio investments an unmatched network of customer, key team recruits, business partner and service provider connections. Canaan Partners About: Canaan Partners invests more than money in a company—they invest their time, experience, knowledge, connections and team-oriented approach. They place tremendous value on creating working partnerships with entrepreneurs and management teams who have the character and the drive to succeed. Prominent among Canaan's resources is the breadth of operating, managerial and financial experience. Harmony Partners About: Harmony Partners is a highly differentiated venture capital firm that makes expansion stage investments in high growth software, internet and tech-enabled companies. By eliminating the typical deal constraints of traditional growth equity firms around minimum check sizes and ownership percentages, Harmony fills a gap in the market. Founded in New York City in 2010 and investing globally, our team has deployed more than $1 billion in over 100 technology companies over the past 25 years. Primary About: Primary Venture Partners (previously High Peaks) is a seed stage VC firm based in NY, focused on ecommerce and enterprise SaaS. Sweetspot check size: $ 3M Thesis: Unparalleled experience, resources and networks to help New York’s most promising founders build market-defining companies. New York Venture Partners About: New York Venture Partners is a seed stage venture capital firm dedicated to the entrepreneur. Sweetspot check size: $ 25K Thesis: We are all about the entrepreneur's success. The Helm About: The Helm is a New York City-based early-stage venture firm investing in game-changing companies founded by women. By investing in female-founded and underfunded technology-enabled companies, greater social and financial returns can be realized. Thesis: We believe that innovation is not gender-specific, so we do not accept that 97.5 percent of the most valuable capital supporting innovation should go to male founders only. It is imperative that female voices have a role in creating the companies, technologies, and systems that will shape our future. Runway Venture Partners About: Runway Venture Partners is a New York City-based early stage venture capital firm focused on investing in post product-market fit SaaS and software-enabled businesses. Sweetspot check size: $ 750K Traction metrics requirements: $50k MRR Thesis: B2B SaaS Lytical Ventures About: Lytical Ventures is a New York City-based venture firm investing in Corporate Intelligence, comprising cybersecurity, data analytics, and artificial intelligence. Lytical’s professionals have decades of experience in direct investing generally and in Corporate Intelligence specifically. Company Ventures About: Company Ventures is a NYC-based, seed-stage venture firm. We believe deeply in the power of being in good company while building the future. For the better part of a decade, via our various programs and investing activity, we have formed a community of exceptional founders building great companies the right way, providing each the ideal environment in which to build with no strings attached. We invest across industries, but have a focus on digital health, fintech, and enterprise software. If you're interested in working with us, please drop us a line or connect with us on social media. Sweetspot check size: $ 750K Connect with Investors in New York With 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 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. Related resource: Exploring the Top 10 Venture Capital Firms in New York City in 2024 Related resource: 12 New York City Angel Investors to Maximize Your Funding Potential

Latin America's tech hubs are leading a wave of transformation, driven by innovation and a surge in global investment. From the fintech powerhouse of São Paulo to Santiago’s strides in clean energy, these cities are shaping the future of technology in the region. For founders seeking to tap into these growing ecosystems, opportunities for funding, talent, and growth are abundant. Discover how these hubs are positioning Latin America as a force in global innovation. Discover VCs investing in LATAM on our Connect investor database. Related resource: 7 Best Venture Capital Firms in Latin America in 2024 1. São Paulo, Brazil São Paulo is the largest and most dynamic tech hub in Brazil, serving as the heart of Latin America's innovation ecosystem. With a massive market, supportive infrastructure, and increasing international investment, São Paulo offers a fertile ground for startups and established tech companies alike. Key Sectors: Fintech: São Paulo is a fintech powerhouse, hosting numerous startups that are revolutionizing digital banking, payments, and financial services. E-commerce: The city's vast consumer base drives the growth of online retail platforms and logistics innovation. Healthtech: Innovations in telemedicine, healthcare access, and medical technology are thriving. Agritech: Advanced agricultural technology solutions help optimize Brazil's significant agricultural output. Notable Startups and Companies: Nubank: One of the world's largest digital banks, Nubank has reshaped financial services with its user-friendly banking solutions. MercadoLibre: The e-commerce giant dominates online retail in Latin America and continues to expand its fintech services. Gympass: A global platform offering corporate wellness solutions, Gympass connects employees to fitness options worldwide. Creditas: A leading digital lending platform providing secured loans and financial solutions to consumers. Top VCs in São Paulo, Brazil: Check out the full list of VCs located in São Paulo, Brazil. 1. Canary Ventures About: Canary provides the first venture capital round, seed or Series A, to tech companies that operate in Brazil. We are an entrepreneur-friendly and well-connected partner that will be by your side, helping in impactful matters, as your startup takes off. 2. Valor Capital Group About: Valor Capital Group is the pioneer cross-border Venture Fund operating at the intersection between innovation & regulation and technology & innovation and bridging the US, Latin American and Global technology markets. 3. Monashees About: The firm serves entrepreneurs starting with their very first movements, supporting their growth through its expansion funds. With a human-values-first approach, monashees helps founders challenge the status quo and improve people’s lives through technology. 4. Redpoint eVentures About: Redpoint eventures, the first Silicon Valley fund on the ground in Brazil, focuses on early-stage internet investments. 5. Bossanova Investimentos About: Bossanova is the most active VC in Latin America ; We invest in startups at the pre-seed stage; B2B or B2B2C companies with scalable and digital business models that are operating and making money. 2. Mexico City, Mexico Mexico City has solidified its status as a leading tech hub in Latin America, often referred to as the "Silicon Valley of Latin America.". Mexico City stands out as a vibrant tech hub strategically positioned for growth in Latin America. Its large population, expanding middle class, and proximity to the U.S. create a thriving ecosystem for innovation. Key Sectors: Fintech: Mexico City is a leading fintech hub, with over 200 startups securing more than $600 million in venture funding, accounting for over 20% of venture funding in the country. E-commerce: The city's vast consumer market has led to the rise of successful e-commerce platforms. Software Development: A growing pool of tech talent supports a robust software development industry. Notable Startups and Companies: Kavak: A used-car marketplace that has become one of Mexico's prominent startups. Clip: A fintech company simplifying digital payments, contributing significantly to financial inclusion. Bitso: A cryptocurrency exchange platform facilitating digital asset transactions in Latin America. Albo: A neobank offering digital banking solutions to Mexican consumers. Top VCs in Mexico City, Mexico: Check out the full list of VCs located in Mexico City. 1. COMETA About: COMETA is a venture capital firm that invests in early-stage technology companies targeting Spanish speaking markets. Thesis: The first fund, VARIV I, which started making investments in 2013, was focused on e-commerce and its enablers, namely, payments and logistics. Over 10 investments were made in those categories expanding the geographic scope from Latin America to Spain. In 2015, the Firm raised a second fund, VARIV II, to capture the emerging opportunities in fintech, marketplaces, and first-generation enterprise businesses founded by local entrepreneurs. Pepe Bolaños, who joined the Firm as Principal in 2014, became Partner in 2017. Throughout the four-year investment period, sixteen companies were added to the firm’s portfolio and the scope broadened to include the US. 2. Jaguar Ventures About: Jaguar Ventures is a venture capital firm that seeks to invest in firms operating in the technology sector. Traction metrics requirements: Companies should have at least US$50k in monthly revenues, growing at more than 10% per month. Thesis: Focused on early stage ventures in Latin America. 3. Hi Ventures About: Hi Ventures invests in Latin American founders and is an early-stage venture capital fund based in Mexico. Thesis: Hi’s investment thesis participates deeply and actively in the Fintech, Future of Commerce, Human Capital and Smart Cities sectors, which are all experiencing a strong acceleration shift at a regional level.Across four portfolios, the fund has invested in 40+ innovative and successful companies led by founders who share our vision to democratize access to services and fix large inefficient industries throughout the region. 4. Smart Impact About: Smart Impact is a launching platform for hardware and circular economy startups that use technology and the internet to create meaningful change. Thesis: At Smart Impact you will discover, develop, experiment, prototype, test and launch your business. 5. Dalus Capital About: Investing in the best entrepreneurs developing scalable solutions for significant problems in LATAM. Sweetspot check size: $ 4M Traction metrics requirements: We are focused on early-stage financing rounds, in startups that have a validated product and client traction. Thesis: Dalus Capital invests in tech companies with scalable solutions to address significant problems in Latin America, in four investment themes: Inclusion (Fintech, Edtech, Healthtech, HRtech), Climate Innovation, Business Productivity (SaaS, etc.) and Digital Consumer (D2C, marketplaces). 3. Buenos Aires Buenos Aires stands as Argentina's premier tech hub, renowned for its rich talent pool, entrepreneurial spirit, and significant investment growth. The city accounts for more than 50% of the country's tech startups, with over 3,000 startups calling Buenos Aires home. Key Sectors: Software Development: Buenos Aires is a major player in the LATAM software development industry, featuring more than 50,000 software developers. Agtech: The city is home to numerous startups and investors focusing on agricultural technology, contributing to the sector's growth in Argentina. Blockchain: Buenos Aires hosts a vibrant blockchain community, with companies like Ripio leading the way in digital finance platforms. Notable Startups and Companies: Mercado Libre: Founded in Buenos Aires, MercadoLibre is the largest e-commerce platform in Latin America, with 668 million visits per month across 18 countries. Ualá: A fintech company based in Buenos Aires, Ualá offers a mobile banking app and has over five million users across Argentina, Mexico, and Colombia. Globant: A global IT and software development company headquartered in Buenos Aires, Globant provides services to clients like Google and Spotify. Top VCs in Buenos Aires: Check out the full list of VCs located in Buenos Aires. 1. Kaszek Ventures About: Kaszek is a venture capital firm that partners with exceptional entrepreneurs to build lasting, high-impact technology-based companies whose main focus is Latin America. In addition to capital, Kaszek offers significant strategic guidance, hands-on operational support and access to local and international networks. The firm is industry and stage agnostic, investing mainly in seed, series A and series B. Thesis: Our core is technology: We are big believers in the fabulous impact that new technologies can have over humankind. Therefore, we invest in any industry where technology and innovation, in any form, offer a chance of significant disruption and value creation. So far, we have invested in industries such as financial services, education, healthcare, ecommerce, marketplaces, enterprise software, and SaaS, among others. 2. NXTP Ventures About: NXTP Ventures backs early-stage technology companies led by extraordinary entrepreneurs throughout Latin America. Sweetspot check size: $ 1M Thesis: We predominately invest in B2B companies in pre-seed stage and seed-stage companies, usually becoming the first institutional check into the business. We also invest at the Series A stage, although a little less frequently. Our typical check size for Seed rounds ranges from $500k to $3M USD and we like to lead or co-lead rounds. Sometimes, we invest as followers with a lower initial check, but with the optionality to invest more later on. For Series A investments, the typical investment size ranges from $2-5M. 4. Bogotá, Colombia Bogotá is rapidly establishing itself as a key player in Latin America’s tech ecosystem, driven by a combination of supportive government policies, a thriving startup culture, and a robust educational framework. With initiatives like the Ministry of Information and Communication Technologies (Ministry of ICT) promoting digital transformation and innovation, the city fosters an environment where fintech, healthtech, and edtech startups can flourish. This synergy between public and private sectors, combined with a skilled talent pool and increasing investor interest, positions Bogotá as a hub for technological advancement and entrepreneurship. Key Sectors: Fintech: The city is home to a growing number of fintech startups focusing on financial inclusion and digital banking solutions. Healthtech: Innovations in healthcare technology are improving patient care and access to medical services. Edtech: Educational technology companies are enhancing learning experiences and accessibility. Notable Startups and Companies: Rappi: A leading on-demand delivery platform that has expanded its services across Latin America. Platzi: An online education platform offering courses in technology and business, aiming to upskill the Latin American workforce. Laika: An e-commerce platform specializing in pet care products and services, showcasing innovation in niche markets. Top VCs in Bogotá, Colombia: Check out the full list of VCs located in Bogotá, Colombia. 1. Polymath Ventures About: Polymath Ventures is a Digital Venture Group that builds from scratch and scales disruptive tech ventures for Latin America's middle class. 5. Guadalajara, Mexico Guadalajara has established itself as a leading technology hub through a strong emphasis on innovation, talent development, and international collaborations. The city's transformation into a tech powerhouse has been driven by a combination of government initiatives, educational excellence, and the presence of global tech giants. Key Sectors: Electronics: Guadalajara is a major producer of electronic components, contributing significantly to Mexico's electronics exports. The city hosts manufacturing and R&D facilities for companies like Intel and Jabil. Software Development: With a large pool of skilled software developers and engineers, Guadalajara has become a hub for software design and IT services, attracting companies such as IBM and Oracle. Internet of Things (IoT): The city fosters innovation in IoT, with startups and established firms developing cutting-edge solutions in this rapidly growing field. Notable Startups and Companies: Kueski: A prominent fintech startup based in Guadalajara, Kueski provides online loans, offering financial services to underserved populations in Mexico. Wizeline: A global product development company with a significant presence in Guadalajara, Wizeline partners with businesses to build high-quality software solutions. Intel: Maintaining a substantial operation in Guadalajara, Intel focuses on research and development, contributing to the city's status as a tech innovation center. Top VCs in Guadalajara, Mexico: Check out the full list of VCs located in Guadalajara, Mexico. 1. Poligono Capital About: We invest in early-stage startups to develop possibilities for success through technology. Non-bank financial organization that believes in exponential capital growth through portfolio diversification and innovative vision. 2. Redwood Ventures About: Mexican venture capital fund, industry agnostic, investing in technology-based startups. Sweetspot check size: $ 200K Traction metrics requirements: Not a static number but products or services that already have product/market fit defined as a growing user base and revenues Thesis: Founded in 2017, Redwood Ventures is a venture capital fund, based in Mexico. The firm focuses primarily in seed, early-stage, and Series A investments in high-impact tech companies. The firm seeks to invest in companies that are based in North America 3. Arancia International About: In addition to our operating companies, we seek to invest in sectors that we consider to have growth potential, technology and those related to our area of ​​interest. For this reason, we have investments in various companies with high potential and international prestige. 6. Santiago, Chile The Chilean government's proactive approach, exemplified by initiatives like Start-Up Chile, has been instrumental in fostering this environment. Launched in 2010, Start-Up Chile is a seed accelerator that has supported over 3,000 startups from more than 85 countries, providing equity-free funding and a robust support network. Key Sectors: The Chilean fintech ecosystem comprises approximately 179 startups, representing a 60% increase since 2019, driven by government efforts to position the country as a fintech hub. Agritech: Agriculture remains a cornerstone of Chile's economy, and Santiago hosts numerous agritech startups innovating to improve yields and combat climate change. Technologies such as drones, artificial intelligence, and nanobubbles are being utilized to revolutionize the agricultural sector. Clean Energy: Chile's commitment to renewable energy is evident, with 45% of the country's electricity generation coming from renewable sources, including over 19% from solar photovoltaic. This focus on clean energy has spurred the growth of related technologies and startups in Santiago. Notable Startups and Companies: Betterfly: A prominent fintech startup offering a platform that combines insurance, wellness, and social impact, incentivizing healthy habits among users. Instacrops: An agritech company providing a virtual assistant that allows farmers to monitor their fields in real-time, optimizing water usage, fertilizers, and detecting pests, thereby enhancing crop yields. INTI-TECH: A clean energy startup specializing in autonomous, water-free cleaning solutions for photovoltaic plants, improving the efficiency and maintenance of solar panels. Top VCs in Santiago, Chile: Check out the full list of VCs located in Santiago, Chile. 1. Taram Capital About: We invest in teams that are transforming their industries with B2B technological solutions for SMEs and large companies, with an emphasis on SaaS and the eCommerce, Fintech, Data Driven Solutions and Web3 sectors. We focus on early-stage companies, investing in Late Seed and Series A, in startups with a presence in Chile and international projections, whose solutions address cross-cutting problems faced by companies around the world. Thesis: We invest in founders from the Andean Region (Chile, Peru, Colombia & Ecuador) leading early-stage B2B recurrent revenue companies with $0.5M - $4M ARR, primarily vertical SaaS implementing digitalization, AI and Web3 related applications. 2. Start-Up Chile About: Start-Up is a public startup accelerator created by the Chilean Government for global entrepreneurs to bootstrap their startups. 3. Impacta VC About: We help impact startups fulfill their purpose. At Impacta VC we invest in Impact Startups, which with the help of Mentors and our Co-investors grow to raise their next round of capital. Thesis: We invest in impact startups in Latin America. Impacta VC launched a U$10MM Seed Fund in the US to fund tech companies aligned with the SDGs across LATAM that leverage the partner’s network of top regional founders and VCs to achieve future financing rounds in the impact space. 7. Lima, Peru Lima's tech ecosystem is experiencing significant growth, characterized by a strong entrepreneurial spirit and expanding infrastructure that supports innovation. The city's startup scene is thriving, attracting investors and talent from across the region. Key Sectors: Edtech: Lima has become a hub for educational technology, with startups like Crehana offering online courses to upskill the Latin American workforce. Fintech: The fintech sector is leading the way in investment, accounting for 58% of total investments in 2025. Startups such as Rextie provide secure and convenient currency exchange services. Logistics Technology: Startups like Chazki are developing innovative solutions to improve logistics and delivery services in the region. Notable Startups and Companies: Crehana: An online education platform offering courses to upskill the Latin American workforce. Rextie: A fintech company providing secure and convenient currency exchange services. Chazki: A logistics startup optimizing delivery services with efficient technology solutions. 8. Santo Domingo, Dominican Republic Santo Domingo is rapidly emerging as a significant tech hub in the Caribbean, leveraging its strategic location and a strong emphasis on digital transformation. The city's proximity to major markets and its commitment to technological advancement have fostered a conducive environment for innovation and entrepreneurship. Key Sectors: Fintech: The Dominican Republic's fintech sector has experienced significant growth, with the number of fintech companies increasing from 6 in 2018 to 65 by 2024. This expansion positions the country as the eighth largest fintech ecosystem in Latin America and the leader in Central America and the Caribbean. Tourism Tech: Given the Dominican Republic's robust tourism industry, there is a growing focus on integrating technology to enhance tourist experiences and streamline operations within the sector. Innovations in this area aim to boost the country's appeal as a premier travel destination. Software Development: Santo Domingo boasts a growing tech scene with many skilled developers. The city has an impressive number of developers, and, according to the EF EPI Index, their English proficiency ranks 55 out of 113 countries. Notable Startups and Companies: AlterEstate: Provides a comprehensive cloud platform designed to streamline operations for real estate agencies, enhancing sales and property management efficiency. TagShelf: Offers an innovative AI platform that automates repetitive tasks, enabling businesses to streamline their operations by intelligently identifying and classifying various document types without human intervention. Uepa Pay: Provides an online payment management platform with a versatile API for seamless integration with various e-commerce platforms, simplifying transactions and streamlining operations for businesses. 9. Montevideo, Uruguay Montevideo has emerged as a leading tech hub in Latin America, renowned for its political stability, innovation-friendly policies, and rapidly expanding technology sector. The city's strategic location and supportive business environment have attracted startups and established tech companies, fostering a vibrant innovation ecosystem. Key Sectors: Fintech: Uruguay's fintech industry has experienced remarkable growth, with the number of fintech companies increasing from 6 in 2018 to 65 by 2024. This expansion positions the country as the eighth-largest fintech ecosystem in Latin America and the leader in Central America and the Caribbean. Agtech: Leveraging its strong agricultural heritage, Montevideo has become a hub for agtech innovation, with startups developing solutions that integrate technology into agriculture to enhance productivity and sustainability. Gaming: The city's creative industries, including video game development, have gained international recognition, contributing to Montevideo's reputation as a diverse and dynamic tech hub. Notable Startups and Companies: dLocal: A fintech company providing payment solutions for emerging markets, dLocal became Uruguay's first unicorn in 2020 and went public on NASDAQ in 2021, reflecting the country's growing fintech sector. Bankingly: Founded in 2015, Bankingly offers digital banking channels for financial institutions, enabling them to improve customer experience and expand their digital services. MooveIt: A software engineering company specializing in the design, development, and implementation of technology applications across various sectors, including education, health, fintech, entertainment, and telecommunications. 10. Medellín, Colombia Medellín has transformed into a prominent tech hub in Latin America, driven by strategic investments in innovation and a commitment to technological advancement. The city's focus on sectors such as healthtech, the Internet of Things (IoT), and artificial intelligence (AI) has been instrumental in this growth. Key Sectors: Healthtech: The healthtech sector in Colombia has experienced significant growth in recent years. As of 2023, Colombia hosts approximately 25 digital health startups, reflecting a compound annual growth rate (CAGR) of 5.6% from 2019 to 2024. Internet of Things (IoT): Medellín hosts a passionate tech community focused on advancing the IoT ecosystem. Organizations like IoT Medellín promote learning, collaboration, and innovation in data-driven technologies. Artificial Intelligence (AI): In September 2024, the World Economic Forum announced the establishment of a Centre for the Fourth Industrial Revolution in Medellín. This center aims to position the city as a leading AI innovation hub, fostering collaboration among business, government, and civil society to develop inclusive and sustainable AI strategies. Notable Startups and Companies: La Haus: An online real estate marketplace that has attracted significant investment, including a US$100 million funding round in 2021, co-led by Acrew Capital and Renegade Partners. Tributi: A Y-Combinator-backed fintech company headquartered in Medellín, automating tax filing for individuals in Latin America and offering curated financial services based on user data. Sempli: A fintech startup providing financial solutions to small and medium-sized enterprises (SMEs) in Colombia. In 2022, Sempli secured investment from CAF, reflecting confidence in Medellín's growing fintech ecosystem. Connect with LATAM Startup Investors with Visible Latin America's emerging tech hubs are driving innovation across sectors like fintech, healthtech, agritech, and more. Each hub benefits from a dynamic ecosystem supported by government policies, talent pools, and investor interest. To connect with the right investors in each city, leverage Visible’s Connect investor database. Simplify your fundraising journey and discover VCs ready to back your startup's growth. Building and nurturing strong investor relationships is crucial for your startup’s success. 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: 14 FinTech Startups Shaping the Future of Finance Related resource: The Top VCs Investing in Community Driven Companies

Raise capital, update investors and engage your team from a single platform. Try Visible free for 14 days. Venture capital is relatively new. In the 80s and 90s venture capital was simply capital available to “tech” companies (e.g. silicon chips in the 90s). At the time, capital was enough of a differentiator for a VC fund to stand out. Since then, the market, and funding options available to startups, have exploded. Y Combinator launched in the mid-2000s and began transforming the space. Since then name-brand VC funds have popped up throughout the country and the globe. Now, founders are looking for more from their investors (hiring help, future capital, leadership skills, technological help, etc.). Related Resource: Seed Funding for Startups 101: A Complete Guide One of the popular funding options and resources that has popped up over time is the incubator. As put by the team at Investopedia, “An incubator firm is an organization engaged in the business of fostering early-stage companies through the different developmental phases until the companies have sufficient financial, human, and physical resources to function on their own.” Related resource: Accelerator vs. Incubator: Key Differences and Choosing the Best Fit for Your Startup What Do Incubators Do? While different incubators will likely specialize in different aspects of business building, they generally help in all of the ways below. Related resource: 10 Top Incubators for Startups in 2024 Provides Feedback & Assistance With Business Basics Incubators are generally suited to extremely early product ideas or businesses. One of the areas they are the best fit to help is by providing feedback and covering business basics. This might include things like establishing your business, brand, distribution strategy, and more. Introductions to Other Startups & Networking Opportunities Generally, incubators have cohorts or classes of startups. This means that they are seeing hundreds of startups throughout their lifecycle. Incubators are a great way to find introductions to other startups, founders, and partners they might have worked with in the past. Includes Necessary Equipment – Including High-Speed Internet Historically, incubators have a physical office space for startups to leverage. This is an opportunity for startups to save on office rent and leverage the equipment and tools they need to succeed — internet, conference rooms, desk space, etc. Access to Investors Once you’ve worked your way through an incubator, chances are you are ready to hit the ground running on your business. One of the common ways to do this is by scaling strategies you worked on during the incubator. To help with this, many incubators have demo days or a network of investors they will be able to introduce you to for a future round of financing. Related Reading: All Encompassing Startup Fundraising Guide Connections to Strategic Partners & Other Service Providers Another benefit of an incubator is the partners and service providers that they work with. Oftentimes, incubators work closely with large organizations or have individuals present with their expertise. For example, an incubator might bring in someone that is an expert in product-led growth and can help you set up your process and make introductions to potential hires. On the flip side, they generally offer discounts to service providers to help you get things started. Types of Business Incubators Incubators tend to be a proving ground for different startup ideas and products. Due to this, different types of businesses and organizations have incentives to launch an incubator. Check out some of the most common types of incubators below: Academic Institutions One of the most common types of institutions that use incubators is academic institutions — generally large universities. This is a great way to allow current undergraduate and graduate students to pursue different ideas and businesses they might have in mind. Universities can tap into their network of experienced professors to help students with all aspects of business building. Additionally, universities also offer a massive network of alumni. Non-Profit Organizations Another business that leverages incubators is non-profit organizations. Non-profits are generally trying to solve large problems that impact people across the globe. Because of this, the space generally requires innovation and new ideas to help tackle these problems. Non-profits turn to incubators to help fuel innovation in the space and uncover the next entrepreneurs suited to help. Related Reading: Impact Investors and Fund Managers to Know For-Profit Corporations Of course, for-profit corporations are very common in the incubator space. Corporations are likely looking for growth and innovation in their market and space. While they likely have teams dedicated to this in-house they also look outside their organization for areas where they can innovate and expand. Corporations will use incubators to search for new ideas and products from entrepreneurs that are in the space and can help their business grow even further. Venture Capital Firms Another common business that uses incubators is venture capital firms. VC firms are dedicated to investing in startups. Because of this, they are incentivized to help the earliest stage startups incubate their idea. This allows them to invest at a later date and get a head start on the diligence process. VC firms also have built out networks and partners that help their VC fund portfolio companies which translates well to helping the companies in their incubator. Related Reading: The 12 Best VC Funds You Should Know About What’s the Difference Between an Incubator and an Accelerator? Incubators and accelerators have both become synonymous with the startup space. While you might think they are similar or the same, they do have a number of differences. An incubator is built to help the earliest stage ideas develop their business expertise and determine if they have a viable business. Related Reading: Why Most Accelerators Fail…and Why Yours Doesn’t Have To An accelerator is best suited to help businesses that are a step further. As put by the team at TechTarget, “A startup accelerator is a business program that supports early-stage, growth-driven companies through education, mentorship and financing. Startups typically enter accelerators for a fixed period of time and as part of a cohort of companies. While accelerator programs can provide beneficial resources to organizations at all stages of development, most focus on those that are pre-revenue.” This means that these companies already have a business model and product in place and are ready to hit the ground running on their revenue growth and product development. Top Incubators for Startups 1. 1871 One of the largest tech incubators globally, 1871 supports over 400 startups through mentorship, educational programming, and networking opportunities. It offers a collaborative space and access to investors and corporate partners​​. 2. Betaworks Betaworks invests, accelerates, and builds companies and projects from scratch — our focus right now is on AI and Augmentation, LLM's, NLP, web3 rails and applied machine learning. 3. Antler Antler is a global startup generator and early-stage VC that is building the next big wave of tech. With the mission to turn exceptional individuals into great founders, Antler aims to create thousands of companies globally. 4. Entrepreneur First Entrepreneur First stands out by prioritizing investment in individuals rather than established startups. This incubator gathers skilled talent from across the globe, helping them form teams and launch new ventures from the ground up. In 2024, Entrepreneur First remains a trailblazer in redefining the conventional incubator model, emphasizing a talent-first strategy that drives innovation right from the inception of a company. 5. DMZ A global startup ecosystem, DMZ at Toronto Metropolitan University equips the next generation of tech entrepreneurs with the tools needed to build, launch and scale highly impactful startups. By providing connections to customers, coaching, capital and a community, DMZ’s world-leading incubator programs help innovators reach the next milestone in their entrepreneurial journey – whatever that might be. Through its award-winning programming, DMZ has helped 800+ startups raise $2.69 billion in capital and create 5,100+ jobs. Headquartered in Toronto, Canada, with globally-accessible programming, DMZ has a widely-recognized international presence with offices in Vietnam, India and the U.S., and partnerships across North America, Latin America, Africa and Asia. Learn more at dmz.to. 6. Idealab Idealab is a business incubator providing capital, resources and advice for tech startups. Idealab continues to explore a range of technology frontiers. New models for improving the search experience are at the core of several companies currently growing inside of Idealab. Moving beyond the Internet, we have spawned companies with breakthrough technologies in robotics, renewable energy and automotive design and production among others. Idealab also continues to partner with leading venture capital firms and other strategic investors to provide the resources to maximize the potential of these companies. 7. TechNexus We build ecosystems by finding, funding, and accelerating technology ventures in collaboration with entrepreneurs and enterprises. We invest globally in early stage companies through vertical focused funds backed by leading corporate partners and leverage those unique enterprise relationships post-investment to drive accelerated venture development. Is an Incubator Right for You? Incubators aren’t for everyone. If you’ve got an understanding of your business model and product, you are likely ready to skip over the incubator and hit the ground running on your business. To learn how you can take your business to the next level, subscribe to the Visible Weekly – we search the web for the best tips to attract, engage and close investors, then deliver them to thousands of inboxes every week. Subscribe here.

A well-maintained cap table is one of the most critical tools for startup founders navigating the complex world of equity and ownership. As a startup grows, managing and understanding equity distribution becomes essential for making informed decisions, attracting investors, and maintaining transparency. A clear cap table can help founders visualize ownership, anticipate dilution, and ensure accurate fundraising. Whether you’re preparing for investment rounds, employee stock options, or future exits, having a reliable cap table is crucial for your startup’s financial health and long-term success. What Is a Cap Table (i.e., Capitalization Table)? A cap table, or capitalization table, is a detailed spreadsheet or document that outlines a startup's equity ownership. It provides a breakdown of all the company’s securities, including common and preferred shares, options, warrants, and convertible instruments. Each entry typically includes details such as the type of security, the number of shares issued, the names of shareholders or stakeholders, and their ownership percentage. Cap tables also help illustrate how ownership evolves over time, especially after significant events like fundraising rounds, employee stock option grants, or equity transfers. A comprehensive cap table allows founders, investors, and employees to understand who owns what portion of the company and how that ownership could be diluted in future scenarios. Related resource: Emerging Fund Managers You Want on Your Cap Table What Is the Difference Between a Cap Table and a Term Sheet? While both a cap table and a term sheet play crucial roles in a startup’s equity management and fundraising, they serve distinct functions and provide different types of information. Cap Table:A cap table is a current snapshot of a company’s ownership structure. It details all the securities issued, such as shares, options, warrants, and convertible notes, and specifies who owns them. The cap table evolves with each new investment, equity issuance, or employee stock grant. It helps founders and investors understand who owns what percentage of the company, track dilution, and plan for future fundraising. Term Sheet:A term sheet is a forward-looking proposal provided by an investor during a funding round. It outlines the terms and conditions of a potential investment, such as the amount of capital being invested, the company’s valuation, equity percentage, liquidation preferences, voting rights, and other key terms. A term sheet is non-binding (except for certain confidentiality or exclusivity clauses) and serves as the basis for negotiating and drafting the final investment agreement. In summary: The cap table is a snapshot of the company’s current equity structure. The term sheet sets the groundwork for future changes to the cap table based on agreed-upon investment terms. Both documents are critical during fundraising, but they address different aspects of the process- one tracks equity, and the other negotiates terms. Related resources: 6 Components of a VC Startup Term Sheet (Template Included) Navigating Your Series A Term Sheet Why Is a Cap Table Important for Startups? A cap table is essential for maintaining transparency, managing equity, and making informed business decisions as your startup scales. It provides a clear view of who owns what, how ownership changes over time, and the potential impact of future investments or stock option grants. For founders, a cap table helps protect against excessive dilution and ensures strategic equity allocation. It offers investors insight into the company’s ownership structure and potential risks. Without an accurate and up-to-date cap table, startups can face challenges during fundraising, audits, or key financial decisions, making it a foundational tool for growth and sustainability. Understanding the Ownership Breakdown of Founders, Investors, and Employees Founders must always be aware of what their cap table means for ownership of their company. Understanding ownership is critical as the company grows and develops. Cap tables tell investors who owns what part of a company. Current investors want to see who has control. They also want the ability to forecast potential payouts and dilution under specific scenarios based on the ownership split. The breakdown of ownership in a startup can affect the company's overall value for future fundraising rounds, as well as who needs to be at the table for certain critical company decisions. Related Resources: How to Fairly Split Startup Equity with Founders Understanding Contributed Equity: A Key to Startup Financing Monitoring Equity Value and Tracking Company Valuation Monitoring equity value and tracking company valuation are crucial for both employees and investors. An up-to-date cap table provides a transparent view of how much the company is worth and how each stakeholder’s equity is affected by funding rounds, option grants, or changes in ownership. A well-maintained cap table helps all stakeholders understand how ownership changes, ensuring alignment and confidence in the company’s growth trajectory. By consistently monitoring equity value, startups can facilitate fair and transparent equity management, essential for long-term success. For Employees: Employees who hold equity, such as stock options, need to understand the potential value of their shares. A detailed cap table helps them see how their ownership stake evolves over time, providing clarity on the potential value of their equity and how it may be diluted with new investments. This transparency can also increase motivation and align their interests with the company’s growth. For Investors: Investors rely on the cap table to evaluate their ownership percentage, potential returns, and dilution risk. By tracking the company’s valuation over time, investors can assess whether their investment is growing in value and determine how future funding rounds will impact their stake. Accurate valuation data also informs strategic decisions during follow-on investments or exit planning. Facilitating Fundraising Rounds with Transparency and Accuracy In addition to current investors utilizing a cap table for forecasting and dilution predictions for different investment outcomes, potential investors and future fundraising can also be affected by cap tables. By viewing a cap table, potential investors can evaluate how much control and leverage could be maintained during negotiations. Historical insight provided in a cap table can affect negotiating current valuation for new funding raises. Additionally, an existing shareholder can easily determine what percentage of the company to give to the new investors in exchange for the capital contributed. Preparing for Financial Audits and Regulatory Compliance Maintaining an accurate and up-to-date cap table is essential for startups to ensure compliance with legal and regulatory requirements. Regulatory authorities and auditors often require companies to present their cap tables annually, ensuring adherence to legal standards and facilitating processes such as capital rounds and ownership changes. A well-maintained cap table provides a transparent record of the company's equity structure, which is crucial for: Regulatory Filings: Accurate cap tables are necessary for filings with regulatory bodies, such as the Securities and Exchange Commission (SEC), to comply with securities laws and regulations. Tax Reporting: Proper documentation of equity ownership and transactions ensures compliance with tax obligations and helps avoid penalties and legal issues. Investor Relations: Transparency in equity distribution builds trust with investors, demonstrating responsible management and adherence to legal standards. Why Do Investors Want to See the Cap Table? Investors want to review a startup’s cap table because it offers a comprehensive snapshot of the company’s ownership structure. This transparency is crucial for assessing risk, understanding equity dynamics, and making informed investment decisions. A well-maintained cap table helps investors evaluate several key aspects: Equity Distribution: Investors can see how ownership is split between founders, employees, and previous investors. This helps them gauge how much control the founding team retains and identify any potential risks related to future decision-making authority. Dilution Risk: The cap table reveals how new investments might dilute existing ownership. Investors need to understand how their stake may change in future funding rounds and whether the current equity structure leaves room for sustainable growth. Investor Rights and Preferences: A detailed cap table shows who holds preferred shares, warrants, or convertible instruments. This helps investors understand potential liquidation preferences and voting rights, which can affect exit strategies and return on investment. Potential Red Flags: A cap table can highlight any irregularities, such as over-diluted founders or complicated equity structures that might hinder future fundraising. What Does a Cap Table Look Like? A cap table typically takes the form of a spreadsheet or specialized software-generated table that organizes the company's equity information clearly and structured. It generally includes stakeholders in rows and types of equity details in columns, making it easy to see who owns what and how much. For more complex startups, the cap table can include additional details like option pools, convertible notes, and transaction history. Key components of a cap table often include: Shareholder Names: Lists founders, employees, investors, and other stakeholders who hold equity in the company. Number of Shares: The total number of shares each stakeholder owns. Type of Security: Categories like common shares, preferred shares, stock options, warrants, or convertible instruments. Ownership Percentage: Each stakeholder's proportional ownership of the company based on their share count. Investment Date: The date each stakeholder acquired their shares or invested in the company. Valuation Details: Information on the price per share and company valuation at each investment round. Image source Does a Cap Table Show Debt? A cap table does not typically show debt. Rather, it is specifically designed to track a company's equity ownership structure, detailing shares, options, warrants, and other equity instruments. Its primary function is to outline who owns portions of the company and how ownership is distributed among stakeholders like founders, employees, and investors. However, while debt is not shown on a cap table, certain debt-related instruments might be included if they have the potential to convert into equity. For example: Convertible Notes: These are debt instruments that convert into equity at a later stage, often during a future funding round. Convertible notes are generally tracked on the cap table because they will eventually affect ownership percentages once converted. SAFEs (Simple Agreements for Future Equity): Similar to convertible notes, SAFEs are agreements where investors provide funding in exchange for the right to future equity, and they typically appear on the cap table before conversion. Traditional loans or other forms of debt (e.g., bank loans, lines of credit) are tracked separately in the company’s financial statements, such as balance sheets, rather than on the cap table. This separation helps maintain clarity between the company’s equity structure and its liabilities. Related resources: The Startup's Handbook to SAFE: Simplifying Future Equity Agreements SAFE Fundraising: When to Consider & Benefits Information to Include in a Cap Table There is no fixed format for a cap table, but a comprehensive cap table should include key components that provide a clear picture of the company's equity structure. These components ensure transparency for founders, investors, and employees, helping to avoid misunderstandings and potential errors during fundraising, audits, and strategic planning. Here are the essential elements to include: Shareholders and Stakeholders: A list of all individuals and entities that hold equity in the company, including founders, employees, angel investors, venture capital firms, and advisors. This helps identify who owns portions of the company and their respective roles. Equity Details: Information on the type of equity held, such as common shares, preferred shares, stock options, warrants, and restricted stock units (RSUs). Each entry should specify the number of shares issued and any associated terms. Valuation and Ownership: Details on the company's valuation at different stages (e.g., pre-money and post-money valuations) and the percentage of ownership each stakeholder holds. This helps illustrate how equity is distributed and how ownership changes with new investments. Option Pool: The number of shares allocated for current and future employees as part of an equity incentive plan. The option pool is important for understanding potential dilution and planning for new hires. Related resource: The Essential Guide to Option Pools: Definition, Purposes, and Benefits for Startups Convertible Instruments: Any convertible notes, SAFEs (Simple Agreements for Future Equity), or other instruments that may convert into equity in the future. These should include details such as the conversion terms, amounts, and potential dilution impact. Transaction History: A record of all equity-related transactions, including issuance dates, purchase prices, investment rounds, and transfers. This historical data is crucial for maintaining accuracy and demonstrating compliance during audits. Restrictions and Agreements: Information on any restrictions or agreements related to equity, such as vesting schedules, buyback rights, or shareholder agreements. This helps stakeholders understand the conditions attached to their equity and any limitations on transferring shares. How Do You Make a Cap Table? Cap tables can be created and managed in a variety of ways. Typically, it is common for new startup founders to build their initial cap table in a spreadsheet. However, as your startup grows and the valuation and stakeholders get more involved and complex, a simple cap table design in a program like Excel won’t work. Some companies will use tools like CapShare or Carta, to build and manage their cap tables. These tools are typically more dynamic and less manual than managing via Excel. They can be easier to utilize to share out and circulate with employees and investors. In other scenarios, it might make the most sense to outsource the production and management of a cap table. When founders choose to self-manage their own cap table, they are susceptible to risks. Some of these risks include miscalculating valuations, which can lead to giving up too much equity and over-diluting shares in new investment rounds. Additionally, there might be tax consequences or legal issues arising from the mismanagement of a cap table. By outsourcing the production and management of a cap table. Typically, this management is outsourced to a legal team to ensure accuracy and compliance. Outsourcing is more expensive than managing with a software but can be much less expensive at the cost of major mistakes or miscalculation of value. How to Use a Cap Table? When using a cap table, it’s important to understand the following formulas: Post-Money Valuation = Pre-Money Valuation + Total Investment Amount Price-Per-Share = Pre-Money Valuation / Pre-Money Shares Post-Money Shares = Post Money Valuation/ Price-Per-Share Investor Percent Ownership = Investor Shares / Post-Money Shares These formulas are essentially what will be laid out in a cap table so understanding them is crucial. These formulas can also be used to update the cap table as it grows more complex via different significant financial rounds. The more investment rounds or other significant financial changes on the table, the more complex the cap table gets. This breakdown essentially showcases the additional steps and participants who are stakeholders in the startup. Founders round – this is the simplest version of the cap table and will typically showcase the simple split of equity between the founders of the company. Seed round – this introduces investors to the table who now own a portion of the company along with the founders and have given cash to the startup altering the overall value. Options pool round – when options are provided for new employees, this changes the value and breakdown of the company as represented by the cap table. Overtime, as more employees are hired and more options are granted, the more complex the cap table gets. VC round(s) – With any additional funding rounds taken on by the startup, the valuation drastically changes as does the list of stakeholders on the cap table. All of these events or rounds are significant and will change the breakdown and complexity of the cap table. How Do You Keep a Cap Table Updated? With the array of cap table management tools on the market, updating and keeping tabs on your cap table is easier than ever before. Generally, founders need to stay on top of their cap table management. If you raise a new round, offer new employee grants, terminate an employee, etc., you need to make the changes as soon as possible to avoid future headaches. If you put off updating your cap table in real-time, it could end up being a costly mistake as you need a lawyer to update and correct the table. To make your life as easy as possible, we recommend using software to manage and update your cap table. There are countless options, but we recommend Pulley. You can learn more about cap table management (and Pulley) in our Founders Forward Podcast with Pulley CEO and Founder Yin Wu here. Cap Table Examples/Templates Instead of starting from scratch, many founders will use a template to build out a cap table. Check out these templates below: 1. S3 Ventures Template S3 Ventures offers a template in Excel that they recommend for their portfolio companies. 2. Eqvista Template Eqvista's template includes ownership structure and the capital committed. 3. Cap Board Template Cap Board's template is a basic cap table on Google Spreadsheet, with formulas included, that can be used for any early-stage startup. 4. CFI Template CFI’s has many free excel templates. The spreadsheet below contains two sections – valuation and ownership. All numbers in blue are hard-coded assumptions and all numbers in black are formulas. Manage Your Stakeholders Effectively with Visible Effectively managing your cap table is essential for maintaining transparency, building investor confidence, and making informed decisions. With Visible, you can streamline your stakeholder communication by centralizing key data, sharing investor updates, and tracking interactions- all in one platform. Visible makes it easy to keep investors informed and engaged while helping you stay organized and focused on growth. Ready to simplify stakeholder management? Give it a free try for 14 days here.

In the high-stakes world of startup funding, side letters often play a pivotal role in shaping deals between founders and investors. These agreements extend beyond the main contract to provide individual investors specific rights, privileges, or obligations. While they offer flexibility, they also introduce complexities that can impact your company’s future. This article breaks down what side letters are, how they differ from main contracts, and what key provisions they often include. We’ll also explore critical considerations for founders negotiating side letters, from balancing stakeholder needs to ensuring transparency and legal compliance. By the end, you’ll have the tools to navigate side letters and build strong investor relationships confidently. What Is a Side Letter? A side letter is a supplementary agreement attached to the main investment contract in startup funding. It provides specific terms, rights, or obligations tailored to an individual investor without altering the main agreement for all parties. These agreements offer flexibility to address unique needs, such as regulatory compliance, strategic partnerships, or additional voting rights. Side letters allow tailored provisions, helping startups attract investments while accommodating diverse stakeholder interests. However, founders must carefully draft and manage these agreements to ensure they remain fair, transparent, and aligned with the company’s long-term goals. How Does a Side Letter Differ From the Main Contract? Side letters differ from the main investment contract in their scope, applicability, and confidentiality. While the main contract outlines standardized terms applicable to all investors, side letters focus on specific provisions tailored to an individual investor’s needs. These agreements address unique requests that may not fit within the broader framework of the main contract. Key distinctions include: Applicability: The main agreement applies universally to all investors, whereas side letters are specific to the signatory investor. Scope: Side letters are designed to handle nuanced or investor-specific terms irrelevant to the larger investor group. Confidentiality: The main contract is typically shared among all investors, but side letters may remain private, depending on their terms. Related resource: Portfolio Data Collection Tips for VCs What Is Included in a Side Letter? Side letters are a flexible tool to address unique investor needs and concerns, often covering terms that don’t fit into the main investment agreement. While the content of a side letter can vary based on the specifics of the deal, there are several common components that these agreements typically include. From granting special rights to ensuring regulatory compliance, side letters are tailored to align with the interests of the investor and the startup. Key elements often found in a side letter: Special Rights and Privileges One of the most common components of a side letter is granting special rights and privileges to certain investors. These provisions often strengthen investor relationships and provide additional incentives for strategic or institutional backers. Voting RightsSide letters can grant enhanced voting rights to key investors, allowing them a more significant say in critical company decisions. Investors who bring substantial capital or strategic value to the table often negotiate these rights. Information AccessInvestors may request detailed financial updates, operational metrics, or performance reports to monitor their investments. Side letters formalize these requests, ensuring the investor can access the agreed-upon information without disrupting the startup’s operations. Board Observer PrivilegesSome investors negotiate the right to attend board meetings as observers, giving them insight into the company’s direction without full voting power. This can foster collaboration and keep investors engaged while maintaining the board’s balance. Exit Preferences Exit preferences are a critical component of many side letters, designed to protect investor interests during liquidity events, acquisitions, or significant changes in ownership. These clauses provide clarity and security, outlining how and when investors can realize a return on their investment. By clearly defining exit preferences in a side letter, founders and investors can minimize uncertainty and potential conflicts. Careful negotiation is essential to balance investor expectations with the company’s long-term goals while avoiding terms that might set unfavorable precedents for future funding rounds. Why Are Exit Preferences Important? Startups operate in a high-risk environment, and exit clauses act as a safety net for investors. Common scenarios where exit preferences play a role include: Liquidity Events: Clauses may specify an investor’s right to receive a predefined return or distribution during an IPO or company sale. Change-of-Control Provisions: These define how investor rights are impacted during mergers or acquisitions. Redemption Rights: Some side letters allow investors to sell their shares back to the company after a certain period, providing an alternative to waiting for a full exit. Key Considerations for Founders: Founders should approach exit preferences thoughtfully, ensuring they balance investor protections with the company’s operational and strategic goals. Poorly negotiated terms can hinder future fundraising efforts or create conflicts during exit scenarios. Working with experienced legal counsel is critical to drafting clear, fair clauses that support both the investors’ and the company’s long-term success. Non-Disclosure and Confidentiality Confidentiality clauses are a cornerstone of side letters, ensuring that sensitive information shared between startups and investors remains protected. These clauses build trust between parties, safeguard competitive advantages, and prevent unintended disclosures that could harm the company’s operations or valuation. Why Are Confidentiality Clauses Important? Protecting Sensitive Information: Startups often share proprietary data, financial metrics, or strategic plans with investors. Confidentiality clauses prevent this information from being disclosed to competitors or unauthorized parties. Maintaining Competitive Advantage: In fast-paced industries, safeguarding intellectual property and trade secrets is essential to maintaining a competitive edge. Investor Confidence: Confidentiality agreements reassure investors that their involvement, special terms, or discussions won’t be disclosed without their consent. Key Considerations for Founders: When drafting confidentiality clauses, founders should ensure they are comprehensive yet fair, covering all critical information while allowing flexibility for required disclosures, such as regulatory compliance. Mismanaged confidentiality terms can strain relationships or lead to legal complications, so working with legal counsel to craft clear, enforceable terms is essential. Compliance and Regulatory Provisions Side letters often include compliance and regulatory provisions to address specific legal or geographic requirements tied to an investor’s location or type. These provisions ensure that the startup remains compliant with applicable laws while accommodating the investor's unique needs. Why Are Compliance Provisions Necessary? Geographic Restrictions: Investors from different countries may be subject to varying regulations, such as tax reporting requirements, foreign ownership rules, or currency controls. Side letters can include tailored clauses to meet these obligations without modifying the main agreement for all investors. Regulatory Compliance: Institutional investors, such as venture funds or pension funds, may require adherence to specific laws or guidelines, including reporting, anti-money laundering (AML), or know-your-customer (KYC) standards. Ethical or Sectoral Restrictions: Some investors may have ethical guidelines or sectoral restrictions (e.g., avoiding industries like tobacco or gambling) that need to be formalized in the agreement. How Founders Should Approach Compliance Clauses: When including compliance and regulatory provisions, founders must ensure they align with the company’s operational capabilities. Overly restrictive or unclear terms can create bottlenecks or unintended liabilities. Consulting legal and financial advisors with expertise in cross-border investments and regulatory frameworks can help mitigate these risks. Key Considerations for Startup Founders While side letters can be powerful tools for securing investment and accommodating unique investor needs, they also introduce complexities that founders must navigate carefully. Mismanaged side letters can lead to stakeholder conflicts, hinder future fundraising efforts, or even create unintended liabilities. To maximize their benefits and minimize potential pitfalls, founders should approach side letters strategically, balancing the needs of investors with the company’s long-term goals. Let’s explore the critical factors every founder should consider when negotiating and managing side letters. Related resource: Portfolio Monitoring Tips for Venture Capital Investors Balance the Needs of All Stakeholders When negotiating side letters, founders must consider the broader implications of these agreements on all stakeholders- not just the investor requesting specific terms. While granting special rights or privileges can help secure key funding, if not managed carefully, these decisions can create friction with existing shareholders, employees, and future investors. Key Considerations: Existing Investors: Favoring one investor with additional rights, such as veto powers or preferential returns, can upset existing investors who may feel their stakes are diluted or undervalued. Maintaining transparency and fairness is critical to preserving trust. Employees: Special terms in a side letter, such as liquidation preferences or exit clauses, can indirectly impact the equity held by employees, especially in liquidity events. Founders must ensure employee interests are protected to maintain morale and motivation. Future Investors: Overly generous side letter terms can set precedents, making future funding rounds more complex. New investors may demand similar privileges, complicating negotiations or reducing your company’s appeal. Balancing the needs of all stakeholders requires a holistic approach. Founders should evaluate how side letter terms align with the company’s long-term goals and ensure they don’t undermine overall equity or governance structures. By considering the bigger picture, founders can foster harmony among stakeholders and build a stronger foundation for growth. Negotiate Strategically Negotiating side letter terms is a delicate process that requires careful preparation and a clear understanding of your company’s goals. Founders must strike a balance between accommodating investor requests and safeguarding the company’s long-term interests. A strategic approach ensures that side letters serve as a tool for growth rather than a source of future complications. Key Strategies for Effective Negotiation: Understand Investor Motivations: Research why the investor is requesting specific terms before entering negotiations. Understanding their priorities—whether it’s risk mitigation, regulatory compliance, or increased involvement—helps you address their concerns effectively while maintaining leverage. Set Non-Negotiables: Identify the terms you cannot compromise on, such as clauses that could harm existing stakeholders or limit future fundraising flexibility. Communicate these boundaries clearly during discussions. Prioritize Proportionality: Ensure that any special rights or privileges granted are proportional to the investor’s contribution. For instance, granting a board observer seat might be appropriate for a major backer but excessive for a smaller investor. Anticipate Future Impact: Evaluate how the proposed terms could influence future funding rounds, employee equity, or governance structures. Negotiate clauses that align with your company’s growth trajectory and avoid setting unfavorable precedents. Engage Experts: Review the proposed terms with experienced legal and financial advisors. Their insights can help identify risks, suggest alternatives, and ensure the side letter aligns with industry norms. Seek Legal Counsel Engaging experienced legal counsel is essential when drafting and negotiating side letters. These agreements often contain nuanced terms that can significantly affect your company’s governance, stakeholder dynamics, and future fundraising efforts. Professional guidance ensures that the side letter is legally sound and aligned with your long-term goals. Why Legal Counsel Is Important: Ensuring Compliance: Lawyers with expertise in startup funding can ensure the side letter adheres to applicable laws and regulations, particularly when dealing with international or institutional investors. Identifying Risks: Legal experts can identify potentially harmful clauses, such as overly restrictive veto rights, disproportionate exit preferences, or terms that could deter future investors. Drafting Precise Language: Ambiguities in legal agreements can lead to disputes. Legal counsel ensures the side letter’s terms are clearly and precisely written to avoid misinterpretation. Balancing Investor Interests: An experienced lawyer can help founders negotiate terms that satisfy investors while protecting the company from undue obligations or liabilities. Protecting Stakeholder Equity: Side letters often affect equity distribution or governance rights. Legal advice ensures that the interests of existing stakeholders, including employees and future investors, are preserved. Best Practices for Founders: Founders should involve legal counsel early in the negotiation process rather than waiting until terms are finalized. Look for advisors with experience in venture capital agreements and startup-specific issues to ensure you receive tailored advice. By prioritizing expert guidance, founders can confidently navigate side letter complexities while safeguarding the company’s interests. Transparency Transparency is vital when dealing with side letters to maintain trust and goodwill among all investors. While side letters often involve private agreements with specific investors, founders should aim to communicate their existence and purpose in a way that avoids perceptions of preferential treatment or hidden arrangements. Failing to address this can harm relationships, discourage future investment, and create unnecessary conflicts. Why Transparency Matters: Preserving Investor Confidence: Sharing the rationale behind any side letter demonstrates fairness and reassures investors that special terms are not granted arbitrarily. Avoiding Conflict: Hidden side letters can create tension among stakeholders if uncovered later, especially if other investors feel disadvantaged. Fostering Long-Term Relationships: Transparent communication builds trust, paving the way for stronger partnerships and collaboration with current and future investors. Best Practices for Transparency: Proactively Communicate: Inform your investors about the existence of side letters and explain why certain terms were necessary for a specific investor. This can be done during shareholder meetings or updates. Ensure Fairness: Avoid granting overly generous terms that could alienate other stakeholders. If special rights are essential, consider how they align with the interests of the broader investor base. Establish a Policy: Develop a policy for handling side letters, outlining what terms are negotiable and how they will be disclosed to other investors. Document Clearly: Ensure that the terms of side letters are well-documented and filed alongside other investment agreements for internal record-keeping. Long-Term Impact When negotiating side letters, founders must consider how the terms agreed upon today may influence the company’s future, particularly in fundraising rounds and exit scenarios. While side letters can help secure critical investments in the short term, poorly structured agreements may create obstacles that hinder long-term growth, complicate governance, or deter future investors. Key Long-Term Implications to Consider: Future Fundraising Rounds: Investors in future rounds may demand similar or better terms than those outlined in existing side letters, creating a "ratcheting" effect that complicates negotiations. Overly generous provisions, such as preferential liquidation rights or veto powers, can deter new investors who perceive the deal as inequitable. Governance Challenges: Special rights granted in a side letter, such as board observer seats or enhanced voting power, may create governance bottlenecks or stakeholder conflicts. Complex or overlapping rights from multiple side letters can make decision-making inefficient as the company grows. Impact on Exits: Exit preferences outlined in side letters could lead to disputes during liquidity events, particularly if different investors have conflicting priorities. Terms that favor one investor too heavily may reduce overall returns for other stakeholders, including employees, potentially damaging morale or trust. How Founders Can Mitigate Long-Term Risks: Think Beyond the Immediate Deal: Evaluate how side letter terms might affect future investor negotiations, company governance, and exit scenarios. Ensure Proportionality: Keep special terms aligned with the level of the investor’s contribution to avoid setting precedents that strain future rounds. Consult Advisors: Work with legal and financial experts to assess the long-term implications of side letter terms before finalizing agreements. Maintain Flexibility: Avoid overly rigid terms that could limit your ability to pivot strategies or negotiate with new stakeholders. Maintain Strong Relationships With Investors With Visible Side letters are powerful tools for tailoring agreements with investors, but they require careful consideration to balance stakeholder interests, ensure transparency, and avoid long-term complications. By negotiating strategically, consulting legal counsel, and prioritizing fairness, founders can use side letters to secure vital funding while maintaining trust and alignment with their investors. Building and nurturing strong investor relationships is crucial for your startup’s success. 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: What Response Rates Should I Expect From My Companies if I Use Visible?

In today’s rapidly evolving world, supply chain and logistics have come into the spotlight as industries face immense challenges and innovation opportunities. With recent disruptions and increasing demands on global logistics networks, there is a heightened need for tech-driven solutions that improve resilience, transparency, and efficiency across the supply chain. This dynamic has caught the attention of venture capitalists (VCs) eager to fund startups that can solve these pressing issues, making supply chain and logistics a high-potential area for investment. For founders, the support of a knowledgeable, strategic investor can provide the resources needed to tackle complex logistical problems and accelerate growth. This article will highlight the top 10 VC investors actively funding supply chain and logistics startups and offer insights into what these investors prioritize and practical advice for approaching them successfully. Top 10 VC Investors Funding Supply Chain and Logistics Startups In the rapidly evolving supply chain and logistics sector, securing investment from venture capital firms that offer more than just capital can be pivotal for a startup's success. The following is a curated list of top 10 venture capital firms with a specific focus on supply chain and logistics, each providing unique strategic value to founders: 1. Bluestein Ventures About: Bluestein is a family-backed VC that invests in the future of food. The firm focuses across high-growth CPG, food tech, commerce, & digital. Sweetspot check size: $ 750K Thesis: We invest in early-stage food ventures across the supply chain - both B2C & B2B - including high-growth consumer brands, next-gen commerce, digital technology, and proprietary foodtech. Focus is Seed to Series A. 2. Monozukuri Ventures About: Monozukuri Ventures provides investment, mentorship, prototyping know-how and manufacturing expertise for hardware startups. Sweetspot check size: $ 250K Thesis: Monozukuri Ventures is focused on funding hardware startups in the fastest growing industries: robotics, AI, clean energy, wearables, space tech, IoT, healthcare, smart home and more. We invest in 10-15 hardware startups per year, with a typical check ranging from USD 150K to 300K at first, with a chance to follow investment up to USD 1M accumulate. 3. Dynamo Ventures About: Dynamo Ventures specializes in early-stage investments within supply chain and mobility sectors. They focus on pre-seed and seed-stage startups, aiming to drive innovation in logistics and transportation. Traction metrics requirements: We look at startups pre-Series A from inception. Thesis: Dynamo Ventures invests in B2B Supply Chain and Mobility. Strategic Value: Deep industry expertise in supply chain and mobility. Extensive network with logistics corporations and industry leaders. 4. 8VC About: 8VC invests in early-stage companies across various sectors, with a significant focus on logistics and supply chain technologies. They aim to support transformative solutions that enhance operational efficiencies. Traction metrics requirements: Pre-seed - Serial entrepreneur(s) team Seed - Need customers/prospects who would talk to us on the company Series A - Post revenue Thesis: Investing in disruptive technologies in enterprise, healthcare and automation in various industries. Strategic Value: Strong track record in scaling AI and automation within logistics operations. Access to a broad network of industry experts and corporate partners. 5. Schematic Ventures About: Schematic Ventures is an early-stage venture capital firm dedicated to investing in supply chain, manufacturing, and commerce technology startups. Strategic Value: Specialized focus on supply chain and manufacturing sectors. Hands-on approach with deep operational support. 6. Prologis Ventures About: “We take logistics further, powering a global supply chain that's stronger, smarter and more resilient than ever before.” Strategic Value: Direct access to Prologis' extensive real estate and customer base. Expertise in logistics real estate and infrastructure. 7. Eclipse Ventures About: We help entrepreneurs build companies that will boldly transform the industries that define and propel economies. Thesis: Eclipse Ventures helps entrepreneurs build companies to boldly transform the industries that define and propel economies. Strategic Value: Emphasis on regional startups, providing unique market insights. Strong connections with policymakers and regional business leaders. 8. Xplorer Capital About: Xplorer Capital invests in early to growth-stage technology companies, with a focus on those transforming industries like logistics and supply chain through advanced technologies. Strategic Value: Expertise in scaling companies leveraging AI and automation. Global network facilitating international expansion. 9. Outlierz Ventures About: Outlierz Ventures is a pioneer African Seed-focused VC firm backing outstanding founders solving Africa's most pressing challenges and re-inventing the continent's future. We invest at Pre-Seed, Seed, and Pre-Series A stages in companies using Technology to transform key traditional industries across Africa's main tech hubs. Thesis: We believe Technology creates tremendous opportunities for talented entrepreneurs to change the status quo. Our mission is to channel capital, knowledge, and networks to Outlierz founders solving Africa’s pivotal problems. Thus, generating outsized returns while creating long-lasting socio-economic impact. 10. Poligono Capital About: We invest in early-stage startups to develop possibilities for success through technology. Non-bank financial organization that believes in exponential capital growth through portfolio diversification and innovative vision. Sweetspot check size: $ 100K Traction metrics requirements: CAGR, ARR, GMV, CHURN RATE, BURN RATE, RUNWAY 11. SpringTime Ventures About: Seed stage fund focused on technology investments in the Rockies. Sweetspot check size: $ 500K Thesis: We look for founders with domain expertise, forging a path with a truly transformative technology. What Supply Chain and Logistics Founders Should Know Before Approaching VCs Navigating the venture capital landscape requires a keen understanding of current industry trends, awareness of common pitching pitfalls, and strategies for aligning your presentation with investor priorities. Related resource: How to Get Your Startup Ready for Investors’ Operational Due Diligence Current Trends VCs Are Focusing On Supply Chain Resilience: The COVID-19 pandemic exposed vulnerabilities in global supply chains, prompting investors to prioritize startups that enhance flexibility and robustness. Solutions that mitigate disruptions and adapt to changing conditions are highly attractive. Sustainability: Environmental concerns are at the forefront, with VCs seeking startups that offer eco-friendly logistics solutions, such as reducing carbon footprints and promoting sustainable practices. Automation and AI Applications: Technologies like artificial intelligence and automation are revolutionizing logistics by improving efficiency and reducing costs. Investors are keen on startups leveraging AI for demand forecasting, route optimization, and warehouse automation. Digital Transformation: The shift towards digital supply chains, incorporating IoT, blockchain, and cloud-based solutions, is a significant focus area. Startups facilitating this transformation are gaining investor interest. Related resource: Top Trends and Leading VCs Investing in D2C Brands: A Comprehensive Guide for 2024 Common Mistakes Founders Make When Pitching Overcomplicating the Message: Founders often delve too deeply into technical details, making it challenging for investors to grasp the core value proposition. It's crucial to communicate your solution's benefits clearly and concisely.Neglecting Market Understanding: Failing to demonstrate a deep understanding of the market landscape, including competitors and customer needs, can undermine credibility. Investors need assurance that you know the industry well. Lack of a Clear Monetization Strategy: Presenting a solution without a well-defined revenue model can raise concerns about the startup's viability. Ensure you articulate how your business will generate profits. Ignoring Scalability: Investors seek scalable solutions. Overlooking how your startup can grow and adapt to increasing demands may deter investment. Recommendations for Tailoring Pitches to Align with Investor Priorities Highlight Alignment with Current Trends: Demonstrate how your solution addresses key industry trends such as resilience, sustainability, and digital transformation. Use data and case studies to substantiate your claims. Simplify Your Value Proposition: Present your solution in a straightforward manner, focusing on the problem it solves and the benefits it offers. Avoid unnecessary jargon and technicalities. Showcase Market Knowledge: Provide insights into the market size, growth potential, and competitive landscape. Illustrate your understanding of customer pain points and how your solution uniquely addresses them. Detail a Clear Business Model: Outline your revenue streams, pricing strategy, and financial projections. This transparency builds investor confidence in your startup's financial viability. Emphasize Scalability: Explain how your solution can scale to meet growing market demands. Discuss plans for expansion, potential partnerships, and strategies to handle increased operations. Importance of Metrics and KPIs for VCs in Logistics VCs seek startups that can demonstrably enhance efficiency, scalability, and profitability in the supply chain and logistics sector. Founders who present data-driven metrics effectively showcase traction and growth potential, aligning with investor expectations. Utilizing tools like Visible can assist in tracking and presenting these metrics professionally. Operational Efficiency Operational efficiency directly influences costs, service speed, and customer satisfaction. VCs assess this to determine how well a startup's solution streamlines processes and reduces waste. Key Metrics to Highlight: Throughput Time: Duration to complete a task or process. Utilization Rates: Efficiency of equipment and workforce usage. Error Rates: Frequency of mistakes in processes like order picking or packaging. How to Present It: Use before-and-after comparisons to demonstrate efficiency gains your solution delivers. Visible's platform can help create clear visualizations of these improvements. Customer Retention and Satisfaction High customer retention indicates strong product-market fit and satisfaction, reflecting the reliability and relevance of your solution. Key Metrics to Highlight: Net Promoter Score (NPS): Measures customer willingness to recommend your service. Churn Rate: Percentage of customers discontinuing use over a period. Repeat Customer Rate: Proportion of customers making multiple purchases. How to Present It: Highlight trends over time or recent improvements in customer loyalty or satisfaction due to your solution. Visible enables effective tracking and reporting of these metrics. Cost Savings and Return on Investment (ROI) In a cost-sensitive industry, demonstrating that your solution leads to significant cost savings validates its value proposition and sustainability. Key Metrics to Highlight: Cost-per-Order (CPO): Average expense incurred per order processed. Transportation Cost Reduction Percentage: Savings achieved in transportation expenses. Overall ROI: Financial return clients gain from implementing your solution. How to Present It: Provide case studies or testimonials quantifying cost savings from existing customers. Scalability and Growth Metrics VCs prioritize startups with solutions capable of rapid growth without proportional cost increases, ensuring long-term viability. Key Metrics to Highlight: Capacity for Increased Volume: Ability to handle growing demand. Speed of Onboarding New Clients: Efficiency in integrating new customers. Customer Acquisition Cost (CAC): Expense associated with acquiring a new customer. How to Present It: Show projections demonstrating maintained or improved performance metrics as you scale. Route Optimization and Delivery Performance Timely and cost-efficient delivery is crucial in logistics. VCs look for startups that optimize routes, reduce delivery times, and enhance last-mile efficiency. Key Metrics to Highlight: Average Delivery Time: Typical duration for deliveries. On-Time Delivery Rate: Percentage of deliveries made on schedule. Fuel Savings from Optimized Routes: Reduction in fuel consumption due to improved routing. Cost per Mile: Expense incurred per mile traveled. How to Present It: Provide real-world data or case examples illustrating faster deliveries or transportation cost savings achieved through your solution. Related resource: Top 10 VCs Fueling Innovation in Transportation Data-Driven Insights and Predictive Capabilities Solutions offering advanced data analytics or predictive insights provide a competitive edge, enabling proactive decision-making. Key Metrics to Highlight: Forecasting Accuracy: Precision in predicting demand or inventory needs. Percentage of Decisions Automated: Extent to which processes are automated. Customer Adoption Rate of Analytics Features: Level of client engagement with data-driven tools. How to Present It: Highlight machine learning or AI capabilities that allow clients to make informed decisions and address issues proactively. Visible can assist in tracking adoption rates and showcasing the impact of these features. Key Challenges and Opportunities in Supply Chain and Logistics The supply chain and logistics sector is undergoing significant transformation, presenting both challenges and opportunities for startups. Challenges Facing Startups Regulatory Complexities: Navigating the intricate web of international trade regulations, customs procedures, and compliance standards can be daunting. Startups must stay abreast of evolving policies to avoid legal pitfalls and ensure smooth operations.Infrastructure Demands: Establishing a robust logistics network requires substantial investment in warehousing, transportation, and technology. For startups, building or accessing this infrastructure can be capital-intensive and time-consuming. High Research and Development (R&D) Costs: Developing innovative solutions, especially those involving advanced technologies like AI and automation, entails significant R&D expenditure. Securing funding to cover these costs is often a major hurdle for emerging companies. Supply Chain Disruptions: Global events, such as pandemics or geopolitical tensions, can disrupt supply chains, affecting startups' ability to deliver services and maintain customer trust. Building resilience against such disruptions is essential but challenging. Opportunities Attracting Investors E-commerce Growth: The surge in online shopping has heightened the need for efficient logistics solutions. Startups that can enhance last-mile delivery, optimize fulfillment processes, or integrate seamlessly with e-commerce platforms are particularly appealing to investors. Demand for Supply Chain Visibility: Companies increasingly seek transparency in their supply chains to monitor shipments, manage risks, and improve efficiency. Startups offering real-time tracking, data analytics, and predictive insights are well-positioned to meet this demand. Sustainability Initiatives: Environmental concerns are driving the adoption of green logistics practices. Startups that provide eco-friendly solutions, such as carbon footprint reduction technologies or sustainable packaging, are gaining traction among investors focused on ESG (Environmental, Social, and Governance) criteria. Technological Advancements: Integrating AI, machine learning, and automation revolutionizes logistics. Startups leveraging these technologies to enhance operational efficiency, reduce costs, or offer innovative services are attracting significant investment. Secure Venture Capital for Your Supply Chain and Logistics Startup with Visible Raising venture capital in the supply chain and logistics space requires founders to present a clear, scalable solution that meets today’s industry challenges. With investors keen on innovations in resilience, sustainability, and digital transformation, founders have the opportunity to secure support for impactful growth. To further streamline your fundraising Visible offers tools to help Supply Chain and Logistics founders stay connected with investors, track performance, as well as present key metrics like route efficiency and cost savings. Find investors at the top of your funnel with our free investor database, Visible Connect. Here's a prefiltered list of VCs active in the Supply Chain and Logistics sector. 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.

In recent years, rapid technological advancements and shifting consumer demands have transformed the transportation sector. From electric and autonomous vehicles to last-mile delivery innovations, sustainable transport solutions, and AI-driven logistics, transportation startups are pushing boundaries and redefining how people and goods move across cities and countries. As these startups take on the challenges of this dynamic industry, they often face high capital requirements, regulatory hurdles, and the need to scale complex infrastructure. Finding the right venture capital (VC) partners can make a significant difference for transportation founders. Specialized transportation investors can provide the necessary capital and bring invaluable industry expertise, regulatory insights, and networks within the transportation ecosystem. Working with the right investors can equip transportation startups with the tools to navigate industry-specific challenges and seize growth opportunities effectively. This article will highlight the top 10 investors actively funding transportation startups, along with other helpful information to help founders be well-prepared for their transportation fundraising journey. Why Specialized Transportation Investors Matter When it comes to building a successful transportation startup, securing funding from generalist investors can be valuable- but partnering with venture capitalists specializing in transportation can make an even bigger impact. Transportation-focused VCs bring more than just capital to the table, they offer deep sector knowledge, established connections within the industry, and a deep understanding of the unique hurdles that transportation startups face. These advantages often translate into more strategic guidance, better industry insights, and enhanced growth opportunities. Sector-Specific Expertise Specialized transportation investors have an in-depth understanding of the complexities involved in this industry. They are well-versed in areas like supply chain logistics, vehicle technologies, fleet management, and sustainable transit solutions. This expertise is particularly useful in assessing and supporting new technologies, whether a startup is pioneering advances in electric vehicles or working on cutting-edge AI applications for traffic optimization. With a VC who knows the industry inside and out, founders can receive advice grounded in firsthand experience, accelerating their growth and increasing the likelihood of sustainable success. Related resource: Top VCs Driving Transformation in Supply Chain and Logistics Relevant Connections Transportation-focused VCs typically have a broad network of connections with suppliers, industry leaders, regulatory bodies, and potential partners. These relationships can be instrumental for startups, helping them establish partnerships and scale faster in a sector where collaboration is often key. Whether it’s securing strategic partnerships with major automotive companies or finding dependable logistics providers, having a VC with established contacts can be a major advantage for startups working to break into the market. Understanding of Regulatory and Operational Challenges Navigating regulatory requirements can be one of the toughest parts of launching a transportation startup. Specialized investors understand the regulatory landscape- whether it's federal safety standards for autonomous vehicles, emissions regulations, or logistics compliance protocols. They are more likely to guide founders through the complexities of compliance and introduce them to industry consultants or advisors when needed. Additionally, these investors often anticipate operational challenges unique to transportation, such as high initial capital requirements and complex supply chains, and are equipped to help founders develop realistic, resilient business models. Top 10 VC Investors in Transportation AV8 Ventures About: AV8 Ventures is an early-stage VC firm comprised of industry experts, scientists, operators, and investors that leverage. Thesis: Investing in disruptive technologies in enterprise, healthcare and automation in various industries. BMW i Ventures We find and grow cutting-edge technology companies redefining the automotive industry. Navigate Ventures A venture capital firm that provides seed capital and regulatory support to entrepreneurs shaping the future of cities – helping them grow into tomorrow’s most valued companies. Trucks Venture Capital Trucks Venture Capital funds the entrepreneurs building the future of transportation. Maniv Mobility Maniv Mobility is a global early-stage venture fund based in Tel Aviv and New York. We partner with founders advancing the cleaner, safer, more efficient and more sustainable movement of people and goods. With decades of experience in the mobility, transportation, electrification and policy sectors, Maniv has built a deep global network of industry leaders and experts - allowing us to closely partner with startups and drive better outcomes. Maniv is backed by some of the world's leading automotive, transportation, infrastructure and energy companies. Dynamo Ventures Dynamo invests in extraordinary founders building technology businesses in supply chain and mobility. Fontinalis Partners About: Fontinalis Partners, with offices in Detroit and Boston, is a venture capital firm strategically focused on next-generation mobility. Thesis: Macro trends are driving demand, Mobile & big data are catalyzing growth, Proven technology can be scaled globally, A strategic approach enhances value creation Schematic Ventures Schematic Ventures is an early-stage venture capital fund located in San Francisco. The fund is focused on investments in technology companies within supply chain, manufacturing, commerce infrastructure & digital industrial sectors. AutoTech Ventures About: Autotech Ventures is a venture capital firm focusing on the ground transportation sector. Thesis: We invest globally in seed through series C startups solving ground transport challenges related to connectivity, autonomy, shared-use, electrification, and digitization of enterprise. TA Ventures 1843 is a technology-focused venture capital firm supporting Series A startups with diverse founding teams. Our team brings 40+ years of combined experience in venture investing, hardware, software and operations. We have taken companies from start to exit and have the track record to prove it. We leverage our deep, personal networks as a unique competitive advantage for deal flow and portfolio support. We have an extensive network of committed global advisors including successful founders, leading operators, and co-investors dedicated to supporting the growth of our portfolio companies. Key Investment Trends in Transportation The transportation sector is undergoing significant transformation, driven by technological advancements and evolving consumer preferences. VCs are actively channeling funds into several key areas, reflecting current industry trends and future growth potential. Sustainable Transportation Investors are increasingly prioritizing startups that offer eco-friendly solutions, such as electric vehicles (EVs), hydrogen fuel cells, and alternative energy sources. The European Union, for instance, needs to invest €39 billion annually to meet its 2050 net-zero transport targets, underscoring the emphasis on sustainability. Related resource: Guide to CleanTech and Climate Tech in 2024 + Top VCs Investing AI in Logistics AI is revolutionizing logistics by enhancing route optimization, demand forecasting, and supply chain efficiency. Startups leveraging AI to improve operational efficiency and reduce costs are attracting significant VC interest. For example, Volvo Group Venture Capital invested in aifleet, a U.S.-based company utilizing AI to reshape trucking operations. Related resource: The Role of AI in Startups and Venture Capital + Top VCs Investing in AI Shared Mobility Solutions The rise of ride-sharing, car-sharing, and micro-mobility platforms is reshaping urban transportation. VCs are funding startups that offer innovative shared mobility services, catering to the growing demand for flexible and cost-effective transportation options. Examples are Lime, Miles, and Turo. InDrive, a transportation services startup, launched a venture arm to invest in startups aimed at geographical expansion. Regulatory Technology (RegTech) Navigating complex transportation regulations is a significant challenge. Startups developing RegTech solutions to streamline compliance processes are gaining attention from investors as they help companies adhere to evolving standards efficiently. What Transportation Startups Should Prepare for Fundraising In the transportation sector, attracting venture capital requires more than just a compelling idea. Investors expect startups to clearly understand the industry’s demands and challenges, backed by hard data and strategic planning. Here’s what transportation startups should prioritize to improve their chances of successful fundraising. Data-Driven Impact For transportation startups, showcasing traction and impact with data is essential. Investors want to see measurable progress, such as route efficiency improvements, emissions reductions, or cost savings that prove the startup’s value proposition. Metrics like miles saved per vehicle, percentage reduction in carbon emissions, and cost efficiency can demonstrate a startup’s tangible impact, differentiating it from competitors. Presenting data-driven results establishes credibility and shows that the startup has a scalable, replicable model that could yield a high return on investment. Related resource: Our Favorite Posts for Sharing Documents, Decks, and Data While Fundraising Regulatory Knowledge Understanding and navigating transportation regulations is a significant hurdle that can make or break a startup’s success. Local, state, and international regulations vary widely, covering aspects like vehicle safety, emissions standards, and logistics protocols. Investors need to be confident that the startup is aware of these regulations and has strategies for compliance across different markets. This knowledge mitigates potential risks, ensuring smoother scalability and long-term viability. Demonstrating regulatory understanding shows VCs that the startup is well-prepared for expansion and can avoid costly regulatory setbacks. Capital Requirements Transportation is a capital-intensive sector, especially for startups dealing with hardware or infrastructure-heavy operations like autonomous vehicles or logistics networks. High R&D, manufacturing, and operational scaling costs require a solid financial plan. Founders should prepare detailed financial projections, including capital expenditure, cash flow, and expected funding stages. Investors appreciate founders with a realistic understanding of capital requirements and a roadmap for sustaining growth over time. Secure Venture Capital for Your Transportation Startup with Visible Raising capital for a transportation startup is about more than just innovation - it calls for careful planning, industry know-how, and a supportive network. Visible offers tools to help transportation founders stay connected with investors, track performance, as well as present key metrics like route efficiency and cost savings. Find investors at the top of your funnel with our free investor database, Visible Connect. Here's a prefiltered list of VCs active in the transportation sector. 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.

In recent years, Miami has gained traction as a vibrant and dynamic hub for startups and venture capital investment. With a unique blend of cultural diversity, strategic access to international markets, and a pro-business environment, Miami is increasingly attracting founders and investors from across the globe. Known for its strengths in fintech, health tech, and the burgeoning blockchain sector, Miami offers startups access to an emerging ecosystem supported by local talent and a growing influx of seasoned investors relocating from traditional tech hubs. This article will explore the top 10 venture capital firms in Miami poised to fund and support high-potential startups in 2024, along with key insights for founders looking to raise capital in this flourishing city. Why Miami is Ideal for Startup Fundraising Miami has emerged as a prime destination for startup fundraising, offering several strategic advantages: Access to International Markets Miami's geographic location positions it as a gateway to Latin America and the Caribbean, providing startups with unique opportunities to tap into these emerging markets. The city's robust trade infrastructure and multicultural environment facilitate cross-border business operations, enabling startups to expand their reach and customer base effectively. Favorable Business Climate Florida's business-friendly environment enhances Miami's appeal for startups. The state boasts no personal income tax and a relatively low corporate tax rate, allowing entrepreneurs to reinvest more capital into their ventures. Additionally, pro-business regulations and government incentives, such as grants and tax credits, support business growth and innovation. Growing Investor Community In recent years, Miami has experienced a significant influx of investors and tech leaders relocating from traditional hubs like Silicon Valley and New York. This migration has increased the availability of capital and diversified the investment landscape, providing startups access to a broader network of potential investors and mentors. The city's evolving ecosystem fosters collaboration and innovation, making it an attractive destination for fundraising. Challenges to Consider When Raising Venture Capital in Miami While Miami offers numerous advantages for startups seeking funding, founders should be mindful of certain challenges: Competitive Landscape As Miami's reputation as a startup hub grows, the number of startups vying for venture capital has increased, intensifying competition for investment. Founders must differentiate their ventures by demonstrating unique value propositions, robust business models, and clear paths to scalability to attract investor interest. Developing Ecosystem Compared to established tech hubs like Silicon Valley, Miami's startup ecosystem is still maturing. This can result in limited access to experienced mentors, industry-specific resources, and a comprehensive support network. To navigate this, founders should actively engage with local accelerators, incubators, and networking events to build connections and leverage available resources. Access to Local Talent Sourcing specialized talent locally can be challenging due to a smaller pool of experienced professionals in specific tech sectors. To overcome this, startups can implement remote work arrangements to tap into global talent, partner with local universities to develop talent pipelines, and offer competitive compensation packages to attract skilled professionals from other regions. 1. Ocean Azul Partners As the team at Ocean Azul Partners put on their website, “We are an early-stage venture capital firm passionate about helping entrepreneurs bring innovative technology solutions to market. We’re operators who are determined to use our successes and lessons learned to provide significant value to the teams with which we work. We are proud to support entrepreneurs building unique solutions that will shape the futures of their industries.” Investment Range As put on their website, “We write initial checks of size $200K-$2M, with a portion of our fund reserved for follow-on. We play an active role in all of our investments and have board seats on most of them.” Industries The team at Ocean Azul primarily focuses on B2B software. Related Resources: The 12 Best VC Funds You Should Know About 2. Guild Capital As the team put on their website, “Guild Capital is an early-stage venture capital firm. Founded in 2009, we have been dedicated to venture further than conventional Silicon Valley-based VC patterns to look for growth-stage teams who can evolve into great companies.” Investment Range The team at Guild does not publicly state their investment range but does look to companies that have “generated early revenue” or those that have not generated revenue that shows signs of momentum. Industries The team at Guild does not have a specific industry but shares their thesis for industries and markets by stating, “We believe in businesses bringing industry-contrarian solutions to large addressable markets. In general, we prefer markets that are not ‘winner-takes-all.” 3. Starlight Ventures As put on their website, “We are an early stage venture firm designed to address humanity’s biggest challenges and opportunities through breakthrough technology. We aim to enable long-term human flourishing: a prosperous civilization that responds effectively to large-scale opportunities and existential threats alike.” Investment Range The team at Starlight does not publicly state their investment range. Industries The team at Starlight does not publicly state-specific industries but rather invest in companies that impact long-term human flourishing. 4. Fuel Venture Capital As put by their team, “Fuel Venture Capital has brilliantly executed against this mission and has become known and trusted as leaders who are founder-focused and investor-driven. Our world-class venture executives have deployed over $400MM of capital from our global LP base following a disciplined “Phased Investment Thesis” managing risk while driving return on investment.” Investment Range The team at Fuel invests across multiple stages as put below: Industries The team at Fuel invests across many industries but ultimately look to, ‘disruptive global, tech-driven companies.” 5. LAB Miami Ventures As put by their team, “LAB Ventures is a VC Fund and Startup Studio dedicated to accelerating early-stage real estate and construction technology companies… We invest in early-stage real estate and construction technology companies. We invite investors with an interest in these sectors to join our growing network and stay on the leading edge of tech trends.” Investment Range The team at LAB does not publicly state their investment range but typically invests in pre-seed, seed, and series A rounds. Industries As put by their team, “Our focus is on early-stage technology businesses that serve the Real Estate and Construction industries – Property Technology, or “PropTech” for short. We take a very broad view of what is included in PropTech, but have a preference for software over hardware, recurring revenue, and enterprise over the consumer.” 6. Krillion Ventures As put by their team, “Krillion Ventures is a Miami-based venture capital fund that actively invests in early-stage technology companies solving problems in healthcare, financial services, and real estate.” Investment Range The team at Krillion Ventures does not publicly list their investment range but gives the following information, “We invest in companies that can demonstrate proof of concept and are seeking capital to accelerate their growth. We make follow-on investments in our portfolio companies on a deal-by-deal basis.” Industries The team at Krillion is focused on companies in the health tech space. 7. Miami Angels As put by the team at Miami Angels, “We bring together exceptional entrepreneurs and accomplished accredited investors to fuel success. Our group is comprised of over 150 angel investors, many of whom have been entrepreneurs themselves. Beyond providing capital, we collaborate with our founders to ensure they have access to talent and future funding.” Investment Range The team at Miami Angels does not publicly state what their investment range is. You can learn more about their investment criteria below: Industries As put on their website, “Because of our diverse investor base, we are able to leverage that expertise and invest in many industries. However, we do NOT invest in hardware, lifestyle brands, consumer goods, biotech, development shops, or financial derivatives.” 8. Secocha Ventures As put by their team, “Secocha Ventures is an Investment Firm focused on early stage Consumer Products & Services, Fintech & Healthcare Technology companies.” Investment Range The team at Secocha Ventures does not publicly disclose their investment range. They do mention, “We invest in startups raising their Pre-Seed, Seed, or Series-A rounds.” Learn more about the Secocha Ventures investment criteria below: Industries As shown above, the team at Secocha Ventures states, “We invest in FinTech, HealthTech, and Consumer Products & Services.” Related Resources: Private Equity vs Venture Capital: Critical Differences 9. SaaS VC "Investing in visionary SaaS founders all across the country at the earliest stages" Investment Range "Many attractive companies are able to raise significant capital, but often struggle to efficiently fill an entire early-stage (Pre-seed, Seed, Post-Seed) round with value added investors. We like to invest in these rounds and assist in identifying other quality investors to complete the financing. We are honored to collaborate with the best and brightest to create successful enterprises." Industries Enterprise , SaaS, Supply Chain, Logistics, Fintech, Cybersecurity, Security, E-Commerce, ESG, Consumer Goods 10. TheVentureCity As put by their team, “TheVentureCity is a global, early-stage venture fund that refuses to follow the conventional crowd. We offer promising founders investment with bespoke data insights and operating expertise – designed for product-led growth.” Investment Range According to their Visible Connect Profile, the team at TheVentureCity typically writes checks between $1M and $4M. Industries As put on their website, “We are generalists, but index high on Fintech, HealthTech, AI/ML/Data and B2B SaaS. We like businesses that are “needed” and are not just “nice to haves”.” Key Sectors Attracting VC Investment in Miami Miami’s thriving startup ecosystem has become a magnet for venture capital, with key sectors emerging as top choices for investors looking to back high-potential innovations: Fintech and Financial Services Leveraging its status as a major financial hub, Miami has become a fertile ground for fintech innovation. The city's robust financial industry presence provides startups with access to established financial institutions and a diverse customer base. Notably, companies like Pipe, a Miami-based fintech startup, have achieved remarkable success, raising $250 million in strategic equity funding and reaching a $2 billion valuation within just ten months of its public launch. Healthcare and Biotech Miami's proximity to leading medical institutions and research centers has spurred health tech and biotech startup growth. Innovative companies are developing telemedicine, medical devices, and biotechnology solutions, attracting venture capital interested in advancing healthcare technologies. The city's diverse population provides a unique environment for clinical trials and health tech innovation. Blockchain and Crypto With strong support from the local government, Miami is positioning itself as a crypto capital. The city has embraced blockchain technology and cryptocurrencies, hosting major conferences and attracting blockchain startups. Initiatives like MiamiCoin, a city-specific cryptocurrency, exemplify this commitment. In 2021, Miami saw a financing rush of venture capitalists piling into blockchain startups, with investments in the sector skyrocketing a whopping 2,061%. E-commerce and Logistics Miami's strategic location and world-class port and logistics infrastructure make it an ideal base for e-commerce and logistics startups. The city's status as a gateway to Latin America and the Caribbean enables efficient distribution channels, attracting venture capital investment in companies focused on supply chain optimization, last-mile delivery solutions, and cross-border e-commerce platforms. Resources and Support Systems for Founders in Miami Miami's burgeoning startup ecosystem offers a wealth of resources to support entrepreneurs at various stages of their journey. Incubators and Accelerators 500 Startups Miami: A renowned global venture capital firm and startup accelerator, 500 Startups Miami provides early-stage companies with funding, mentorship, and access to a vast network of investors and industry experts. Venture Hive: This accelerator offers a 12-week mini-MBA program focused on business development, providing weekly one-on-one mentoring sessions, consultations with specialists, and access to a growing network of entrepreneurs and investors. The LAB Miami: A co-working space and accelerator that offers mentorship, workshops, and events for entrepreneurs in tech, design, and social entrepreneurship. Co-working Spaces The Hub @ Office Logic Minds Cowork - Wynwood Minspace Miami WeWork Miami Government and Non-profit Initiatives Miami-Dade Innovation Authority: A nonprofit organization formed with seed funding from the John S. and James L. Knight Foundation, Citadel CEO Ken Griffin, and Miami-Dade County. It provides grants to startups addressing community challenges in climate, health, housing, transit, and more. Miami Open for Business Program: Managed by The Miami Foundation, this program supports historically underserved small business owners in Miami-Dade County by providing grants and loans for the purchase and ownership of critical business assets, such as technology, equipment, machinery, inventory, and property. Miami-Dade Economic Advocacy Trust (MDEAT) Business Resource and Education Grant Program: This program offers $2,500 grants to qualified start-up businesses to improve or stabilize neighborhood businesses throughout Miami-Dade County. Find out How Visible Can Help Your Startup Today At Visible, we oftentimes 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. Related Resource: A Quick Overview on VC Fund Structure 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 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. Related Resource: How to Find Venture Capital to Fund Your Startup: 5 Methods

London’s venture capital scene has grown into a powerhouse of innovation and investment, making it an ideal city for founders seeking funding. With its thriving tech and finance sectors, as well as a rich network of experienced investors, London offers a compelling ecosystem for startups across industries. From fintech and artificial intelligence to clean energy and health tech, London-based VCs are actively funding ventures that push boundaries and shape the future. This guide will provide insight into London’s vibrant VC landscape, what investors look for, and how founders can maximize their chances of securing funding in one of the world’s leading financial hubs. The London Venture Capital Landscape London stands out as Europe’s financial powerhouse and a top destination for venture capital, attracting startups from around the globe. In 2023, the city’s startup ecosystem raised approximately $12.9 billion across various sectors, underscoring London’s ability to maintain investment appeal amidst challenging economic conditions. A strong focus on high-growth areas like climate tech, AI, life sciences, and fintech primarily drives this steady influx of capital. Climate tech alone saw record-breaking investment, accounting for 29% of all VC funds in the UK, as both local and international VCs recognize the demand for sustainable solutions in areas like electric mobility and green energy infrastructure. London’s position as an international financial hub is crucial in its venture capital resilience. The city has become a magnet for global VC firms, with many, such as Andreessen Horowitz and Octopus Ventures, establishing a presence here. London’s regulatory environment, which often favors innovation and its rich talent pool, positions it as a fertile ground for startups aiming to expand their reach beyond the UK. The recent uptick in AI and green tech funding reflects the city’s commitment to supporting industries that address some of today’s most pressing challenges, from reducing emissions to developing cutting-edge machine learning technologies​. Why London is Ideal for Startup Fundraising London has solidified its position as a premier destination for startups aiming to raise capital, due to its unique advantages, including unmatched access to international markets, a highly skilled talent pool, and an innovation-friendly regulatory environment. As a global financial hub, London offers startups a gateway to markets across Europe and beyond, with more than 2,000 fintech companies alone benefiting from this strategic access. Many of the world’s largest tech firms, like Google and Microsoft, have established their European headquarters in the city, further boosting networking opportunities and creating a vibrant business ecosystem that attracts top-tier investors and talent alike. London also boasts a diverse talent pool, drawing professionals from around the globe due to its international appeal and cultural richness. The city is home to a high proportion of AI engineering talent, and it attracts a significant number of graduates from prestigious universities like Imperial College London, which contributes to its reputation as Europe’s tech capital. This continuous influx of talent provides startups with the skilled workforce necessary to scale effectively and to innovate across fields like fintech, climate tech, and AI. Additionally, London’s supportive infrastructure for startups extends to government-backed initiatives such as the Seed Enterprise Investment Scheme (SEIS) and the Enterprise Investment Scheme (EIS). These incentives encourage investments by offering tax reliefs to investors, making it more appealing to fund UK-based startups. London also hosts numerous accelerators and incubators, such as Seraphim Space, and Seedcamp, which offer early-stage support, mentorship, and resources to help startups accelerate growth and access funding more effectively. Challenges to Consider When Raising Venture Capital in London While London offers significant opportunities for venture capital, founders face unique challenges, including high competition, high operating costs, and navigating post-Brexit regulations. Recognizing these hurdles and strategizing to address them can help founders enhance their appeal to investors and succeed. 1. High Competition for Investment London’s reputation as a global tech and financial hub attracts a substantial volume of startups, increasing competition for funding. With thousands of tech firms and numerous high-growth startups, founders face stiff competition for limited VC attention. A practical approach to stand out includes emphasizing clear, scalable growth plans in popular sectors such as fintech, AI, and climate tech—fields that resonate strongly with London investors. Founders should also network effectively, leveraging London’s extensive startup events and co-working spaces to make connections with potential investors. 2. Rising Operational and Living Costs London’s high cost of living and operating expenses pose a significant challenge for early-stage companies, especially as inflation and rising energy costs continue to impact business expenses. Startups can mitigate these financial pressures by seeking funding through schemes like the Seed Enterprise Investment Scheme (SEIS) or Enterprise Investment Scheme (EIS), which attract investors with tax incentives. Additionally, many London-based accelerators, like Techstars and Seedcamp, provide resources and support that can help offset early-stage costs while offering mentorship and investor access. 3. Navigating Post-Brexit Regulatory Changes Brexit has introduced new complexities for UK startups, especially around regulatory compliance, data protection, and accessing EU markets. The loss of EU “passporting” rights, which previously allowed financial services firms to operate freely across the EU, means startups targeting European clients may need to establish a presence in the EU or adapt to different national regulations. Startups can overcome these barriers by diversifying their market strategy beyond Europe to regions like the Asia-Pacific and U.S. markets. Additionally, remaining agile and informed about UK-specific regulatory updates can aid in maintaining compliance and market competitiveness. Related Resource: The 12 Best VC Funds You Should Know About VC Firms in London Investing in Startups 2024 1. Seedcamp Focus and industry: The team at Seedcamp focuses on Software, Fintech, SaaS companies. Related Resource: FinTech Venture Capital Investors to Know Funding stage: Seedcamp focuses on pre-seed, seed, and series A investments. As put by the team at Seedcamp, “We invest early in world-class founders attacking large, global markets and solving real problems using technology. We are running our Investment Forum process entirely online and are proactively investing in European companies across pre-seed and seed who are building the breakout businesses of tomorrow.” While Seedcamp is located in London, they will invest in companies across the globe. 2. Index Ventures Focus and industry: The team at Index invests in companies across every sector. Funding stage: Index Ventures invests in stages from seed through growth. As put by the team at Index Ventures, “Other firms invest in deals, Index invests in people. A deal is transactional. Relationships endure, and ours are based on curiosity, thoughtfulness, and deep conviction.” The team at Index invests in companies across the globe, across every stage and sector. 3. Accel Partners Focus and industry: The team at Accel invests is agnostic in their industry focus. Funding stage: Accel invests in every stage from seed to growth stage. As put by their team, “Accel is a leading venture capital firm that invests in people and their companies from the earliest days through all phases of private company growth. Atlassian, Braintree, Cloudera, CrowdStrike, DJI, Dropbox, Dropcam, Etsy, Facebook, Flipkart, FreshWorks, Jet, Qualtrics, Slack, Spotify, Supercell, UiPath and Vox Media are among the companies the firm has backed over the past 35 years.” 4. Balderton Capital Focus and industry: Balderton Capital is agnostic in their industry focus. Funding stage: The team at Balderton invests in companies from seed to growth stage. As put by their team, “Balderton Capital is an early-stage venture firm that’s based on the principles of teamwork and an intense dedication to building companies of lasting value. They provide superior service to entrepreneurs through a unique, team-oriented partnership. This team approach not only makes it more fun for them to come to work everyday, but more importantly, it benefits their portfolio companies. Instead of competing for resources, they share ideas, contacts and resources.” 5. Ascension Focus and industry: The team at Ascension looks for, “a compelling business model capable of rolling out globally.” Funding stage: Ascension funds seed and series A companies. As put by their team, “Ascension is an early-stage VC built by exited entrepreneurs to back the next generation of tech and impact founders.” The team at Ascension primarily invests in companies that are building in the UK. 6. MMC Ventures Focus and industry: Fintech, Data-driven Health/Digital Health, Deep Tech, AI, Software, SaaS, Data Infrastructure. MMC Ventures is one of the most active early-stage tech investors in Europe. Focusing on enterprise AI, fintech, data-driven health, data infrastructure & cloud, we back founders from Series A and Seed stages. During the past two decades, we have formed a unique understanding of what it takes for a start-up to scale. We distinguish ourselves through our commitment of going deeper – on the technologies we invest in, and the partnerships we build with founders. Related Resource: 15 Venture Capital Firms Investing in VR Funding stage: The team at MCC primarily invests from Seed-stage through Series A “We conduct in-house research, providing us with a differentiated understanding of emerging technologies and sector dynamics to identify the areas and themes that have the potential to create the next multi-billion European success stories. Our portfolio spans enterprise AI, fintech, data-driven health, cloud and data infrastructure, with notable investments such as Snowplow, Copper, YuLife, Peak AI, Synthesia, Recycleye, MindsDB, Ably and Signal AI.” –MCC Ventures Learn more about MMC Ventures by checking out their Visible Connect Profile here → <h2=”Octopus Ventures”>7) Octopus Ventures Focus and industry: According to their website, “Our teams are sector experts focusing on six exciting and meaningful areas: B2B Software, Climate, Consumer, Deep Tech, Fintech and Health.” Funding stage: The team at Octopus invests from seed to series B. As put by their team, “We back founders who are changing the world for the better. We invest where we can make the greatest positive impact, getting behind businesses that put people, community and the environment first.” 7. LocalGlobe Focus and industry: LocalGlobe is agnostic in their industry focus. Funding stage: The team at LocalGlobe primarily focuses on seed stage investments. LocalGlobe is a venture capital firm that focuses on seed and impact investments. The team at LocalGlobe primarily focuses on companies located in the UK and Europe. 8. Connect Ventures Focus and industry: List the focus, industry, or types of companies this VC typically invests in. Funding stage: Give the funding stages this VC typically invests in. As put by their team, “We’ve been investing in pre-seed and seed stage product companies since 2012, from our home in London. We’re a partner-only, Europe-wide, low volume, high conviction investment team.” The team at Connect Ventures primarily focuses on companies located in the UK and Europe. 9. Downing Ventures Focus and industry: Downing Ventures is focused on healthcare businesses. Funding stage: Downing Ventures does not publicly state what stage companies they traditionally fund. As put by their team, “We offer investors the opportunity to invest in leading UK early-stage healthtech businesses. Your investment will support companies that develop evidence-based, tech-enabled clinical solutions that significantly improve access to high-quality care, improve clinical outcomes for patients, but also reduce the cost of delivery.” 10. Passion Capital Focus and industry: Passion Capital is focused on digital media/technology companies. Funding stage: Passion Capital is focused on early stage companies. As put by their team, “Passion Capital is a partnership of entrepreneurs and operators who are applying our experiences to helping founders and early-stage teams build great digital media/technology companies. We are committed to fostering an ecosystem of technology, collaboration and executional excellence in Europe, and we believe that the critical differentiator and key asset of a successful business is the passion and ability of its founders. We take pride in the caliber and success of all of our founders and teams including but nowhere near limited to GoCardless, Tray.io, Mendeley, Digital Shadows, urban, Adzuna, Smarkets, Ravelin, Nested, Tide, Spill, Marshmallow, Butternut Box,, PolyAI, Lendable and Monzo Bank.” 11. Notion Capital Focus and industry: As put by their team, “We focus on B2B SaaS, using data/ML and tech to disrupt an industry. Industry agnostic.” Funding stage: Notion Capital is focused on companies from seed to series B. As put by their team, “Notion Capital is a VC firm focused on European SaaS and Cloud. We’re here to support exceptional founders on their extraordinary journeys.” 12. Playfair Capital Focus and industry: Playfair Capital is sector agnostic. Funding stage: Playfair Capital focuses on pre-seed and seed stage investments. As put by the team at Playfair Capital, “We’ve been helping ambitious and exceptional entrepreneurs build brilliant technology businesses since 2013. We’ve backed the founders of more than 60 companies including Mapillary (acq. Facebook), CryptoFacilities (acq. Kraken), Omnipresent, Orca AI, Ravelin, sprout.ai, Thought Machine, Trouva and Vinehealth.” 13. Fuel Ventures Focus and industry: Fuel primarily invests in SaaS and marketplace companies. Funding stage: The team at Fuel is focused on early stage investments. As put by their team, “Fuel Ventures was founded by a successful entrepreneur who built his own company and scaled it to a £55m exit. We know how hard building fast growth companies is and use all our operational expertise and experienced network to help companies grow. We enjoy rolling our sleeves up and building companies alongside the founders and their teams.” 14. Beringea Focus and industry: The team at Beringea backs both B2B and B2C businesses. Funding stage: Primarily focused on Series A and Series B companies As put by the team at Beringea, “When looking at businesses, we primarily look for a good business with a good busienss model. We aren’t in the unicorn hunting business, but rather look for sound investments that will generate sound returns. We back both B2B and B2C businesses.” The team at Beringea invests in companies in both the US and UK, with slightly different offers for each location: 15. RTP Global Focus and industry: The team at RTP focuses on B2B and B2C Technology. According to their website, this includes "AI, B2B SaaS, DevOps, fintech, e-commerce and retail, health, tech, climate, and transport." Funding stage: RTP Global invests in companies ranging from seed to Series B. Learn more about RTP Global and check out their Visible Connect Profile below: 16. Kinetic Investments Focus and industry: The team at Kinetic Investments focuses on AI, Crypto, Ecommerce, Marketplace, Media, SaaS. Funding stage: Pre-Seed, Seed. "We predominantly invest in AI-driven B2C solutions for traditional business models within the digital landscape, i.e. SaaS, eCommerce, marketplaces, and AIaaS." 17. Concept Ventures About: Concept is the UKs dedicated pre-seed fund with a deep focus on people and entrepreneurial founding triats. They lead rounds of up to $2.5m, and work closely with teams through the first 12-18 months of their journeys - helping to lay the best foundations for the scaling to come. Focus and industry: Concept Ventures is a generalist, pre-seed fund in London dedicated to first-cheque investing in Europe. Funding stage: Concept only does initial cheques, but reserves capital for follow-on. Connect with Investors in London With Visible At Visible, we oftentimes 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. Related Resource: A Quick Overview on VC Fund Structure 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 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.

New York City has firmly established itself as a premier destination for startups and venture capital, offering an unparalleled ecosystem of innovation and investment opportunities. The city's diverse and vibrant entrepreneurial landscape is bolstered by a wealth of resources, including a dense concentration of venture capital firms, accelerators, and incubators. As a global financial hub, New York provides startups with access to significant funding, strategic partnerships, and a rich talent pool, making it an ideal location for founders looking to launch and scale their businesses. This dynamic environment fosters continuous growth and innovation, positioning New York as a startup and venture capital leader. Why Raise Venture Capital in New York City? For startup founders, raising venture capital in New York City brings unique advantages beyond funding. The city’s rich network of seasoned industry players, many of whom are leading experts across sectors like finance, media, health, and technology, creates an unparalleled environment for networking and mentorship. Founders who connect with New York investors can gain valuable insights, establish critical partnerships, and access a wealth of business connections that can accelerate their company’s growth. New York City also offers a large and highly skilled talent pool, particularly in fields essential to scaling high-growth startups, such as software engineering, data science, and digital marketing. This concentration of expertise, alongside a multicultural and entrepreneurial workforce, enables founders to put together strong teams and leverage top-tier talent. The city is also a global media hub, giving startups unique opportunities for exposure. A New York presence can help founders tap into PR channels, digital media, and industry events that draw attention to their company’s mission, products, and innovations. For startups aiming to build brand awareness, a NYC-based investor network can be a gateway to high-impact media opportunities that support long-term growth. Related Resource: How to Find Venture Capital to Fund Your Startup: 5 Methods The New York Venture Capital Landscape New York City’s venture capital ecosystem is renowned for its fast-paced growth and sector diversity, making it one of the most attractive destinations for startup founders seeking investment. The city’s well-established financial roots have paved the way for a robust fintech scene, with startups focusing on digital payments, blockchain, and financial inclusivity solutions. Health tech is also flourishing, driven by New York’s world-class medical institutions and a push for innovation in areas like telemedicine, digital health records, and personalized medicine. Media and advertising technology also hold a significant share, leveraging the city’s longstanding position as a global media hub. With ample resources, industry expertise, and access to investors and early customers, New York’s vibrant VC scene offers unique advantages for startups across these and many other sectors. VC Firms in New York Investing in Startups 2024 1. Union Square Ventures According to their website, “Union Square Ventures is a venture capital firm focused on early-stage, growth-capital, late stage, and startup financing.” Investment Range Union Square Ventures invests in a large range of companies. Looking at their website and you’ll find that they invest in anywhere between Series A and Series D stages. Industries Union Square is self-described as a “thesis-driven” investor. They are currently investing off of their Thesis 3.0: “Enabling trusted brands that broaden access to knowledge, capital, and well-being by leveraging networks, platforms, and protocols.” Check out more about their Thesis 3.0, recent investments, and key ideas below: 2. Insight Partners According to the Insight Partners website, “Insight accelerates revenue and profit in software companies. Our obsession with software has produced a habit of success. We recognize industry patterns, emerging tech markets and software trends. We’ve accumulated the knowledge to understand the strategies needed to win.” Investment Range Insight Partners will invest across every stage but their bread and butter are “scale-up” companies. Insight will invest anywhere from pre-seed to series C and beyond stages — generally with a check size between $10M and $350M. Industries Insight is focused on software companies. However, they invest in a number of different sectors that you can find here (or below): 3. Scout Ventures According to the Scout Ventures website, “Scout Ventures is an early-stage venture capital firm that invests in frontier and dual-use technologies built by veterans, intelligence leaders, and premier research labs. By leveraging our network of professional investors, operators, and experienced entrepreneurs, Scout can effectively execute every aspect of our investment thesis. We’re also paving the way for military veterans and intelligence professionals to access hundreds of millions in government grants and non-dilutive capital. The firm has three locations: Austin, New York City, Washington, DC.” Investment Range Scout Ventures writes checks anywhere between $100,000 and $3M. According to their website, “We lead Seed rounds with $1-2M initial checks and reserve capital for follow-on investments up to Series B.” Industries According to the Scout website, “We focus on sectors aligned to our experience serving in defense and building multi-billion dollar companies: AI/ML, quantum computing, robotics, advanced materials science, security, space & aerospace, and advanced energy.” 4. Greycroft According to their website, “Greycroft is a venture capital firm that focuses on technology start-ups and investments in the Internet and mobile markets.” According to the team at Greycroft, “Greycroft typically makes initial investments from $500,000 at the seed stage to up to $30 million from the growth stage. We are an active Series A investor and typically invest between $1 million and $10 million. The growth fund targets investing $10 to $30 million on an initial basis and may reserve up to double that amount over time. The growth fund focuses on later-stage companies with proven unit economics, annual revenue growth in excess of 50%, and a management team that is prepared to scale.” Industries On the Greycroft website, you’ll find that they invest in a number of different industries — ”We invest across a broad range of Internet sectors. We currently group our portfolio into four verticals: Consumer Internet, Fintech, Healthcare, and Enterprise Software.” 5. RRE Ventures RRE Ventures has been funding software startups since the 90s. According to their website, “RRE Ventures is a New York-based venture capital firm that offers early-stage funding to software, internet, and communications companies.” Investment Range The team at RRE invests in a variety of early-stage tech and software companies. According to their Visible Connect profile, they invest in Series A and B companies with an average check size between $4M and $15M. Industries According to their website, “RRE invests in early-stage, technology-enabled companies across all sectors and across the country. We back credible teams executing against incredible ideas to build category-defining businesses.” Check it out here or learn more below: 6. Lerer Hippeau According to their website, “Lerer Hippeau is an early-stage venture capital fund founded and operated in New York City. We invest in good people with great ideas who redefine categories — and create new ones entirely.” Investment Range The team at Lerer Hippeau has 3 funds that invest in pre-seed to Series C and beyond companies. Industries The team at Lerer Hippeau is industry-agnostic and will invest in any company — including enterprise and consumer landscapes. 7. Starta According to their website, “​​Starta is a venture ecosystem to find, foster, and fund early-stage talent in tech. Our mission is to provide opportunities to: International startups who want to scale globally and raise capital Aspiring industry leaders, seeking professional training Investors who believe in long-term growth potential and a strong connection with the community Starta values inclusivity and diversity. Having worked with over 200 startups from all over the world, we intensively focus on bringing equal opportunities and support to the ecosystem.” Investment Range Like many of the other firms on this list, Starta has multiple funds that invest in many stages. Starta operates both an accelerator and early-stage fund intended for seed and series A companies. Industries The Starta team has a focus on international startups that are looking to expand and scale their US presence. 8. FirstMark FirstMark is an early-stage venture capital firm headquartered in New York City. As put by their team, “We are proud to back the ambitious founders of the most iconic companies in the world.” Investment Range According to their Visible Connect profile, the team at FirstMark writes checks anywhere between $500k and $15M. Industries The team at FirstMark invests in companies of a variety of industries and sectors. They have major focus areas of Enterprise, Consumer, and Frontier companies. 9. Hypothesis According to the Hypothesis website, “We build and fund companies. We’re a startup studio and seed fund that launches, funds, and scales exceptional companies.” Investment Range As a startup studio, Hypothesis focuses on finding successful founders and co-founders and helps them launch and scale businesses. In addition to capital, Hypothesis portfolio companies receive resources and help with sales and marketing, hiring, product development, follow-up funding, etc. Industries The team at Hypothesis will invest in companies across many industries and are focused on “mission-driven” companies and founders. 10. Interlace Ventures According to the team at Interlace Ventures, “Investing in early-stage commerce- and retail-technology companies gives us unparalleled access to the latest technological innovations and trends across commerce and retail. We leverage this access by partnering with global brands and retailers to support their innovation efforts. We do this through a variety of methods, all of with are tailored after each partner’s individual needs and priorities.” Investment Range The team at Interlace invests in pre-seed to series A-stage companies. According to their Visible Connect Profile, they will write checks anywhere between $150k and $600k. Industries Interlace has a focus on commerce and retail companies. 11. FJ Labs FJ Labs is a prominent venture capital firm based in New York City, renowned for its extensive network and hands-on approach to investing. Founded by experienced entrepreneurs Fabrice Grinda and Jose Marin, FJ Labs focuses on creating value for founders and investors. The firm leverages its deep industry expertise and global connections to support startups in achieving their growth potential. FJ Labs is particularly noted for its collaborative ethos, working closely with portfolio companies to navigate the complexities of scaling and market expansion. Investment Range FJ Labs typically invests in pre-seed to Series A rounds, with investment amounts ranging from $50,000 to $500,000. Focusing on early-stage investments, FJ Labs provides critical funding enabling startups to develop their products, gain market traction, and prepare for subsequent funding rounds. Their flexible investment strategy allows them to tailor their support to the unique needs of each startup, ensuring that founders receive the resources necessary to succeed. Industries FJ Labs has a diverse investment portfolio, strongly emphasizing marketplaces and network effects businesses. They are particularly interested in industries such as e-commerce, real estate tech, fintech, and mobility. FJ Labs seeks out startups that leverage technology to disrupt traditional markets and create new growth opportunities. Their broad industry focus enables them to identify innovative business models and support visionary entrepreneurs across various sectors. 12. VentureOut VentureOut is a unique venture capital firm and accelerator based dedicated to bridging the gap between international startups and the US market. With a focus on helping startups expand globally, VentureOut offers a comprehensive suite of services designed to support international entrepreneurs in scaling their businesses in the US. The firm combines investment with an accelerator program that provides mentorship, networking opportunities, and strategic guidance, making it an ideal partner for startups looking to make a significant impact in the American market. Investment Range VentureOut typically invests in early-stage companies, with investment amounts ranging from $50,000 to $250,000. Their funding is often coupled with participation in their accelerator programs, which offer startups additional resources to refine their business models, develop go-to-market strategies, and establish a presence in the US. This dual approach of investment and acceleration helps startups gain the momentum they need to succeed in a competitive market. Industries VentureOut focuses on various industries, with a particular emphasis on technology-driven sectors. They are especially interested in software, fintech, health tech, and enterprise tech startups. By concentrating on these high-growth areas, VentureOut aims to support innovative companies that have the potential to transform industries and drive technological advancements. Their industry focus and international expertise position VentureOut as a valuable partner for startups seeking to expand their reach and impact in the US market. 13. FirstMark FirstMark is a distinguished venture capital firm known for its commitment to backing visionary entrepreneurs. With a track record of successful investments, FirstMark partners with startups that have the potential to revolutionize their industries. The firm is dedicated to providing not only capital but also strategic support and access to an extensive network of industry leaders. By fostering close relationships with their portfolio companies, FirstMark helps founders navigate the challenges of scaling their businesses and achieving long-term success. Investment Range FirstMark typically invests in seed and early-stage companies, with investment amounts ranging from $500,000 to $10 million. This substantial range allows FirstMark to support startups at various stages of their development, from initial product launches to significant growth phases. Their flexible investment approach ensures that each startup receives the appropriate level of funding to meet its unique needs and objectives. Industries FirstMark has a broad investment focus with a strong emphasis on technology and innovation. They are particularly interested in sectors such as enterprise software, consumer technology, fintech, healthcare, and emerging technologies like AI and blockchain. FirstMark seeks out startups that are poised to disrupt traditional markets and create new growth opportunities. By investing in a diverse array of industries, FirstMark aims to support the next generation of transformative companies and help shape the future of technology and innovation. 14. New York Angels New York Angels is a prominent angel investment group based in New York City, dedicated to providing early-stage funding and mentorship to innovative startups. Comprising a diverse network of seasoned entrepreneurs and business leaders, New York Angels offers a wealth of experience and strategic insight to help young companies grow and succeed. The organization is known for its collaborative approach, working closely with founders to refine their business models, develop market strategies, and connect with additional resources and expertise. Investment Range New York Angels typically invests in seed and early-stage companies, with investment amounts ranging from $250,000 to $1 million. By focusing on the crucial early stages of a startup's development, New York Angels provides the necessary capital to help companies validate their business ideas, build their initial products, and gain market traction. Their investment approach is designed to offer startups the financial support they need to reach critical milestones and prepare for subsequent funding rounds. Industries New York Angels has a broad investment focus, with a particular interest in technology-driven sectors. They frequently invest in industries such as software, fintech, health tech, consumer products, and media. This diverse industry focus allows New York Angels to support a wide array of innovative startups, fostering growth and innovation across multiple sectors. By backing companies that leverage technology to create new solutions and disrupt existing markets, New York Angels aims to contribute to the advancement of the entrepreneurial ecosystem in New York City and beyond. 15. New York Venture Partners New York Venture Partners (NYVP) is a leading venture capital firm based in New York City, focused on supporting early-stage startups with a combination of capital, mentorship, and strategic resources. Known for its hands-on approach, NYVP aims to help founders build scalable businesses by providing more than just funding. The firm's extensive network and industry expertise enable it to offer valuable insights and connections, making NYVP a vital partner for startups looking to navigate the complexities of growth and market entry. Investment Range New York Venture Partners typically invests in seed and early-stage companies, with investment amounts ranging from $100,000 to $1 million. This investment range is designed to provide startups with the essential funding required to develop their products, refine their business models, and achieve early market traction. NYVP's focus on early-stage investments ensures that startups receive the support they need during the critical phases of their development. Industries NYVP has a diverse investment focus, particularly on technology and innovation-driven sectors. They are especially interested in industries such as artificial intelligence, machine learning, digital media, consumer internet, and enterprise software. By targeting these high-growth areas, New York Venture Partners aims to back startups that have the potential to disrupt traditional markets and introduce groundbreaking technologies. Their broad industry focus allows them to identify and support promising startups across a wide range of fields, fostering innovation and entrepreneurial success in the New York City area and beyond. 16. Primary Primary is a prominent venture capital firm based in New York. It is dedicated to investing in early-stage startups and helping them grow into market leaders. Known for its data-driven approach and hands-on involvement, Primary provides comprehensive support to its portfolio companies. The firm leverages its deep industry knowledge and extensive network to offer strategic guidance, operational expertise, and valuable resources. Primary's commitment to building long-term partnerships with founders makes it a trusted ally for startups navigating the challenges of scaling and achieving sustainable growth. Investment Range Primary typically invests in seed and Series A rounds, with investment amounts ranging from $1 million to $5 million. This substantial investment range allows Primary to provide the necessary capital for startups to develop their products, expand their teams, and accelerate their go-to-market strategies. By focusing on early-stage investments, Primary ensures that founders receive the financial support they need during the critical phases of their company's development. Industries Primary has a strong focus on technology-driven sectors, particularly those with the potential for significant market disruption. They are especially interested in industries such as SaaS, e-commerce, fintech, health tech, and proptech. Primary seeks out startups that leverage innovative technologies to solve complex problems and create new market opportunities. Their industry focus allows them to identify and support high-potential startups across various fields, fostering innovation and driving growth in the New York City startup ecosystem. Challenges to Consider When Raising Venture Capital in New York City While New York City offers many advantages for founders, it’s also one of the most competitive VC landscapes in the world. First, the number of startups vying for investor attention can make it challenging to stand out. Founders should be prepared to present a compelling story and clear differentiation showcasing their startup's unique value to its sector. Costs associated with raising in New York can also be higher, from operational expenses to talent acquisition. While access to skilled talent is beneficial, competing with larger, established companies for top hires may require higher budgets, especially in technical and executive roles. Another consideration is the distinct approach some NYC VCs take compared to investors in other regions. New York investors may prioritize fast growth and revenue-generating potential, particularly in highly competitive sectors like fintech and media. Founders may need to show evidence of early traction and market fit to build credibility with these investors. Lastly, the pace of the city’s startup environment is brisk, often requiring founders to maintain a quick, adaptable approach to accommodate investor expectations and the ever-evolving market. How to Approach New York City Venture Capital Firms Founders can gain a competitive edge by demonstrating local traction or partnerships within the NYC ecosystem. Whether securing early customers in the area or collaborating with local industry leaders, evidence of a New York footprint can be highly appealing to investors. Founders should also remain persistent and adaptable, following up with VCs respectfully and iterating on their pitch based on feedback. With preparation, a solid network, and a clear presentation, founders can better capture the attention of New York City’s top venture capitalists. Connect with Investors in New York With 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 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. Related Resource: The Top 10 VC Firms for Startups in the Greater New York Area Related Resource: Private Equity vs Venture Capital: Critical Differences Related Resource: The 12 Best VC Funds You Should Know About Related Resource: 11 Top Venture Capital Firms in Boston

Choosing between an accelerator and an incubator can significantly impact your startup’s trajectory. While both programs provide crucial support to startups, they differ in structure, resources, and focus. Accelerators are known for their intensive, time-bound approach to rapid growth, whereas incubators offer extended, resource-rich environments ideal for early-stage companies still refining their ideas. In this article, we’ll explore the pros and cons of each option, as well as key differences in program structure, funding, and support, and guide you on choosing the best fit for your startup’s current stage and goals. By the end, you’ll clearly understand which path aligns best with your vision and growth objectives. Related resource: The Ultimate Guide to Startup Funding Stages What Is a Startup Accelerator? A startup accelerator is a structured, time-limited program designed to help startups achieve rapid growth. Accelerators typically last between three to six months and are aimed at startups in their early growth phase, offering intensive mentorship, funding opportunities, and networking access. Participating startups receive hands-on support from seasoned entrepreneurs, investors, and industry experts, accelerating their business model validation, market-entry, and scaling. In exchange for these resources, most accelerators take an equity stake in the startups they support. Accelerators are particularly beneficial for founders looking to fast-track their business and make valuable industry connections that can lead to additional funding or strategic partnerships. Pros of Participating in a Startup Accelerator Fast Growth: Accelerators are tailored to speed up a startup’s progress, pushing founders to achieve growth milestones rapidly within a condensed timeframe. Access to Capital: Many accelerators offer initial funding, often in exchange for equity, to help startups build momentum without delaying fundraising. Mentorship: Startups gain access to experienced mentors, including successful entrepreneurs and industry experts, who help them refine their business strategies and navigate early challenges. Networking Opportunities with Investors: Accelerators open doors to a network of investors, including venture capitalists and angel investors, creating valuable connections that can lead to further funding opportunities. Resource Access: Many programs provide access to critical resources, such as office space, technical support, and specialized software, reducing overhead and allowing startups to focus on growth. Increased Credibility: Participating in a reputable accelerator can boost a startup’s credibility, signaling quality and potential to investors and industry partners alike. Cons of Participating in a Startup Accelerator Equity Trade-Offs: Most accelerators require startups to give up a percentage of equity in exchange for mentorship and funding. For some founders, this equity stake may feel substantial, especially if they are in the early stages. Intense Time Commitment: Accelerator programs demand a high level of engagement, often requiring founders to dedicate all their time and resources to meet program milestones. This can be challenging for teams with limited personnel or other existing commitments. High-Pressure Environment: Accelerators' structured, fast-paced nature can create a high-pressure environment. While the goal is to achieve rapid growth, this intensity may lead to burnout or rushed decisions that could impact long-term sustainability. Limited Flexibility: Accelerators typically follow a set curriculum and timeline, which may not be suitable for every startup’s unique needs or growth pace, potentially limiting their adaptability. Short-Term Focus: While accelerators are designed to spur growth quickly, they often emphasize short-term metrics and milestones, which may sidetrack some startups from focusing on their long-term vision and product development. What Is a Startup Incubator? A startup incubator is a program designed to nurture early-stage startups by providing resources, mentorship, and workspace within a supportive, collaborative environment. Unlike accelerators, incubators typically offer more flexible, open-ended timelines, allowing startups to grow at their own pace. They cater to startups still in the idea or development phase, helping them refine their business models, develop prototypes, and validate their products. Through access to industry mentors, shared workspaces, and potential networking opportunities, incubators foster a low-pressure setting where startups can build a strong foundation before pursuing aggressive growth strategies. Related resource: What is an Incubator? Pros of Joining a Startup Incubator Extended Support: Incubators provide long-term support without strict timelines, allowing startups to develop at a pace that aligns with their growth needs and market readiness. Access to Resources: Many incubators offer access to essential resources, such as office space, business tools, and technical support, helping startups reduce operational costs and focus on development. Low-Pressure Growth Environment: Incubators are less intense than accelerators, fostering a nurturing environment where startups can experiment, pivot, and refine their products without the pressure of immediate results. Mentorship and Guidance: Founders benefit from consistent mentorship from experienced entrepreneurs and industry professionals who help with product development, market fit, and business strategy. Collaborative Networking: Incubators often house multiple startups under one roof, encouraging collaboration, knowledge-sharing, and partnerships that can lead to valuable insights and synergies. Potential for Seed Funding: Although funding isn’t always a primary focus, some incubators provide seed capital or connect startups with investors, offering support without the immediate equity trade-offs common in accelerators. Related resource: 10 Top Incubators for Startups in 2024 Cons of Joining a Startup Incubator Slower Growth Pace: Incubators are designed for gradual development, which may not suit startups eager for rapid growth or quick market entry. This slower pace can delay scaling efforts, especially for teams ready to accelerate. Limited Access to Capital: Unlike accelerators, incubators often provide fewer direct funding opportunities. Startups may need to seek external funding to support growth once they outgrow the incubator’s resources. Less Emphasis on Scaling Quickly: Incubators focus on nurturing ideas and building a strong foundation, often without immediate pressure to scale. While beneficial for early-stage startups, this may be a drawback for founders aiming to fast-track their company’s growth. Potential for Equity or Fees: Some incubators still require equity or charge participation fees in exchange for resources and mentorship, which may feel limiting for startups without substantial initial funding. Lack of Investor Exposure: While incubators offer valuable mentorship and networking within the community, they may lack the frequent investor interactions that accelerators provide, possibly extending the time needed to secure capital. Key Differences Between Accelerators and Incubators While both accelerators and incubators offer valuable support to startups, they serve distinct purposes and cater to different needs. Accelerators are typically short-term programs designed for startups ready to grow rapidly, providing intense mentorship, funding, and connections within a structured timeframe. On the other hand, incubators take a more gradual, long-term approach, focusing on nurturing early-stage startups as they develop foundational ideas and products. Choosing between these programs depends on factors like the stage of your startup, growth goals, and resource needs. Below, we’ll dive into the primary differences, from program duration and startup stages to funding and support structures. Program Duration Accelerator programs are typically short and intensive, lasting three to six months. This limited timeframe is designed to help startups achieve significant growth milestones quickly. The program often ends with a demo day, where founders present to potential investors. The pace is rapid, and a structured curriculum keeps participants focused on quick scaling and preparing for market entry or funding rounds. On the other hand, incubators operate on a more flexible, extended timeframe that may last several months to even years. This allows early-stage startups to develop their ideas, validate products, and establish a solid foundation at a manageable pace. Unlike accelerators, incubators often don’t set strict deadlines, giving startups the freedom to progress based on their unique needs and market readiness. Stage of Startups Accelerators are best suited for startups in their growth phase—those with a developed product or service ready for rapid scaling. These programs focus on startups that have validated their market fit and want to increase traction, secure funding, or expand operations. Accelerators help these growth-phase startups overcome scaling challenges, gain market visibility, and connect with investors for further funding. Incubators are designed for early-stage companies that may still be in the ideation or initial development stages. These startups often refine their business models, conduct product testing, or work toward market validation. Incubators provide a supportive environment for these early-stage startups, offering mentorship and resources to help them build a solid foundation before moving into aggressive growth. Goal and Focus Accelerators are fundamentally geared toward rapid growth and scaling. Their programs are structured to push startups toward tangible outcomes- whether securing investors, achieving significant market traction, or preparing for acquisition. The focus is on creating a high-growth trajectory within a short period, with intensive support to expedite business expansion, scaling strategies, and revenue generation. In contrast, incubators focus more on nurturing early ideas and fostering long-term development. Their goal is to support startups as they refine their business models, develop products, and establish a strong foundation. Incubators provide a slower-paced, collaborative environment where startups can experiment and adapt without immediate pressure to scale, making it ideal for founders looking to solidify their ideas before moving into high-growth phases. Funding Accelerators often provide funding to participating startups, typically in exchange for a percentage of equity. This initial capital fuels rapid growth, allowing startups to build momentum and prepare for further funding rounds. In addition to direct funding, accelerators connect startups with investors, increasing their chances of securing additional capital upon program completion. Incubators, on the other hand, may offer fewer direct funding opportunities. Instead, they focus on providing other valuable resources, such as workspace, business tools, mentorship, and industry connections. While incubators might not directly invest, they still offer support that can reduce operational costs and provide startups with the foundational tools they need to become investment-ready as they progress. Support Structure Accelerators offer intensive mentorship and networking opportunities within a compressed timeframe, typically providing startups with daily or weekly guidance from industry experts, seasoned entrepreneurs, and investors. This high-touch support is geared toward rapid skill-building and scaling, with structured workshops, coaching sessions, and introductions to valuable networks. The goal is to equip startups with the tools they need to make substantial progress quickly. In contrast, incubators provide ongoing support and collaboration over a much longer period. Mentorship and networking are still central, but the approach is more gradual, allowing startups to explore and evolve without the pressure of strict timelines. Incubators often foster a collaborative environment where startups can regularly connect with mentors, other founders, and industry partners, enabling a steady progression suited to each startup’s unique pace and needs. Which One Is Right for Your Startup? Deciding between an accelerator and an incubator comes down to your startup’s current stage, goals, and specific resource needs. Each program offers distinct advantages and caters to different types of startups, so understanding your priorities is essential. The following sections will guide you through evaluating your startup’s stage, growth goals, resource requirements, and time commitment, helping you determine whether an accelerator’s fast-paced environment or an incubator’s nurturing approach is the best fit for your path forward. Evaluate the Stage of Your Startup Identifying your startup's stage is a crucial first step in deciding between an accelerator and an incubator. An incubator may be the ideal choice if your startup is in the early stages- still refining its business model, testing prototypes, or establishing market fit. Incubators provide the resources, mentorship, and time needed to develop a strong foundation, which can be invaluable for startups not yet ready to scale. On the other hand, if your startup has a validated product or service and is prepared to grow, an accelerator could be the better fit. Accelerators specialize in fast-tracking growth for startups in the expansion phase, providing funding, connections, and mentorship to help you scale quickly. By aligning your choice with your startup’s stage, you’ll set yourself up to gain the maximum benefit from either program. Consider Your Growth Goals Your long-term vision and growth objectives are key in deciding whether an accelerator or incubator is the right choice. An accelerator's fast-paced environment may be a better fit if your primary goal is rapid growth, market entry, or scaling quickly. Accelerators are designed to drive immediate results, making them ideal for startups with ambitious, near-term goals like raising capital, increasing traction, or preparing for acquisition. Alternatively, if your growth goals involve building a strong, sustainable foundation and refining your product over time, an incubator’s nurturing structure might better suit you. Incubators offer a low-pressure environment focused on long-term development, allowing you to refine your vision and explore different strategies without the rush to scale immediately. Choosing based on your growth goals will help ensure that the program you select supports your startup’s trajectory. Assess Your Resource Needs Evaluating your startup’s resource needs is essential when deciding between an accelerator and an incubator. An accelerator may be the ideal choice if your primary requirements include direct funding, mentorship from experienced entrepreneurs, and immediate access to investor networks. Accelerators typically provide initial funding in exchange for equity, along with robust mentorship and a built-in investor network designed to help startups achieve quick, resource-intensive growth. However, an incubator may be a better fit if your startup’s needs are more foundational- such as mentorship to develop a business model, collaborative workspaces, and time to experiment. Incubators offer essential resources like workspace and expert guidance without the pressure to secure immediate funding or fast-track scaling, making them ideal for startups focused on product development and market testing. Time Commitment The time commitment required by an accelerator or incubator can significantly impact your startup’s progress, so choosing a program that aligns with your team’s availability and bandwidth is essential. Accelerators demand an intensive, full-time commitment over a few months, pushing teams to meet rigorous milestones quickly. This structure benefits startups ready to dedicate all their resources to growth but may be challenging for already stretched-thin teams. In contrast, incubators offer a more flexible timeframe, allowing startups to grow gradually over several months or even years. This approach provides room to experiment, pivot, and build foundational elements without the intense time constraints of an accelerator. If your team requires a balanced schedule that accommodates other commitments or prefers a less-pressured pace, an incubator’s extended timeframe may be better. Connect with the Right Investors with Visible Choosing between an accelerator and an incubator depends on your startup’s stage, growth goals, resource needs, and available time commitment. Accelerators are ideal for startups ready for rapid growth, providing funding, mentorship, and networking in a fast-paced environment. Incubators, on the other hand, support early-stage startups with a gradual, nurturing approach, focusing on long-term development without the pressure to scale quickly. By aligning your choice with your startup’s needs, you’ll set yourself up for success in the right program. Looking to connect with investors and manage your growth effectively? Visible can help simplify the process by providing data rooms, financial tracking, and investor relations management, ensuring you’re ready when due diligence begins. Give it a free try for 14 days here.

When preparing to raise capital, it’s not just your product or market that investors will scrutinize- your internal operations will be in the spotlight too. Operational due diligence is critical in this process, helping investors evaluate your company’s ability to scale and sustain growth. This article will walk you through everything you need to know about operational due diligence and how to get your startup ready to impress investors, from financial management to optimizing internal processes and ensuring compliance. What Is Operational Due Diligence? Operational due diligence is the process investors use to evaluate a company’s internal operations, systems, and controls before making an investment. Unlike financial due diligence, which focuses on the numbers, operational due diligence takes a closer look at how a company runs on a day-to-day basis. It helps investors assess potential risks, operational efficiency, and the company’s capacity to scale. By examining everything from business processes to organizational structure, investors can better understand whether your startup is well-positioned to deliver sustained performance over time. Investment Due Diligence vs. Operational Due Diligence When preparing for investor evaluations, it's important to understand the distinct roles that investment due diligence and operational due diligence play in the decision-making process. Related resource: Types of Venture Capital Funds: Understanding VC Stages, Financing Methods, Risks, and More Investment Due Diligence primarily focuses on your startup's financial aspects. This includes analyzing financial statements, revenue models, profitability, market valuation, and potential return on investment. Investors use this information to assess your company's financial health and growth potential, ensuring that the numbers align with their investment criteria and risk tolerance. Operational Due Diligence, on the other hand, delves into your business's internal workings. It examines your company's operations, systems, processes, and controls to evaluate efficiency, scalability, and risk management. This type of due diligence assesses how well your startup is managed daily, including areas like supply chain management, technology infrastructure, organizational structure, and compliance with legal and regulatory standards. While investment due diligence answers the question, "Is this a financially sound investment?" operational due diligence addresses, "Can this company operate efficiently and sustain growth?" Both forms are crucial for investors to make informed decisions, ensuring that your startup is financially viable and well-equipped to handle future challenges and opportunities. Related resource: Top VCs Driving Transformation in Supply Chain and Logistics Why Investors Conduct Operational Due Diligence Investors conduct operational due diligence to understand how a startup functions beyond its financial statements. This process is essential for identifying potential risks, ensuring operational efficiency, and verifying the company’s ability to sustain long-term performance. By evaluating key areas such as internal processes, management practices, and organizational structure, investors can uncover weaknesses that could pose risks to future growth. Operational due diligence also helps investors confirm that your business is scalable, compliant with regulations, and well-equipped to navigate challenges. Ultimately, it ensures that the operational side of your startup aligns with its financial projections, reducing uncertainties and fostering confidence in your ability to deliver on promises and drive long-term success. Related resource: What to Include in a Data Room for Investors: Essential Guide for Startups Key Areas to Address in Operational Due Diligence Investors will closely examine several critical areas to assess your startup's overall health and efficiency when preparing for operational due diligence. Ensuring that these areas are well-organized and optimized can significantly enhance investor confidence. Below are the key areas investors will focus on during the operational due diligence process: Business operations and processes: Investors will evaluate your day-to-day business activities to ensure they are efficient, scalable, and capable of supporting growth. Financial management and controls: A detailed review of your financial controls, reporting, and cash flow management helps investors determine the accuracy and reliability of your financial data. Team and organizational structure: Investors want to see a well-defined organizational structure with a competent management team capable of executing the business plan and adapting to future challenges. Legal and regulatory compliance: Your startup must adhere to industry regulations, data privacy laws, and legal obligations. Investors will check for any potential legal risks that could disrupt your operations. Technology and systems: The technology and systems that power your startup must be scalable, secure, and efficient to meet future demands. Investors will assess the reliability and flexibility of your tech infrastructure. Data and documentation: Well-organized documentation—such as operational workflows, financial reports, and contracts—demonstrates your company’s transparency and readiness for investor scrutiny. Customer and client relationships: Investors will also examine the strength and sustainability of your customer relationships, looking for evidence of customer satisfaction, retention, and growth potential. How to Be Prepared for Operational Due Diligence Being well-prepared for operational due diligence can make a significant difference in securing investor confidence. It’s not just about having solid financials; investors want to see that your startup is organized, efficient, and ready for growth. By proactively addressing critical areas like documentation, processes, and compliance, you’ll be better positioned to showcase your startup’s potential. Below are several actionable steps to ensure your business is fully prepared when investors start digging into your operations. 1. Organize and Update Key Documentation One of the most critical steps in preparing for operational due diligence is organizing and updating all key documentation. Investors will want to see clear, accurate records that reflect the inner workings of your business. Start by ensuring that your financial statements are up-to-date and thoroughly reviewed for accuracy. Additionally, prepare detailed operational workflows that outline how day-to-day tasks are handled and how different departments interact. Make sure your organizational charts are current and show clear roles and responsibilities within the team. Key contracts, such as those with major clients or vendors, should be readily available and in good standing. Finally, gather all vendor agreements and any other crucial documents that reflect the company’s obligations and partnerships. By having this documentation well-organized in advance, you’ll save time and instill confidence in investors. 2. Evaluate and Optimize Internal Processes Investors will examine your startup's operations closely, making it essential to review and optimize your internal processes before due diligence begins. Start by assessing areas like supply chain management, ensuring that workflows are efficient, cost-effective, and scalable. Look for bottlenecks or inefficiencies in sourcing, producing, and delivering your resources. Next, evaluate your technology systems, ensuring that they are up-to-date, secure, and capable of supporting business growth. Whether it’s customer management software or product development tools, your technology should enhance rather than hinder operations. Finally, review your HR processes, including recruitment, onboarding, and performance management, to ensure they are well-structured and support a healthy, productive work environment. By optimizing these key internal processes, you’ll demonstrate to investors that your startup is well-positioned for future success. 3. Demonstrate Strong Financial Controls Your startup must demonstrate strong financial controls to instill confidence in investors. This begins with ensuring that your financial reporting is accurate and current. Investors will closely examine your cash flow statements, so it’s essential to provide clear documentation of how money is being managed within the company, from revenues to expenses. Additionally, effective expense tracking is key. Make sure that all spending is documented, categorized, and aligned with your budget. Investors will want to see that your startup maintains discipline in how it allocates resources. Establish and follow a solid budgeting process that reflects realistic growth and operational costs. Having these financial controls in place not only demonstrates that your startup is well-managed but also assures investors that their capital will be responsibly handled. 4. Showcase Scalability Readiness Investors want to know that your startup has the potential to grow without significant operational disruptions, making it crucial to demonstrate your scalability readiness. Highlight the systems, technology, and processes that are designed to expand alongside your business. This includes your tech infrastructure, which should be flexible enough to handle increased demand, whether it’s managing more users, higher transaction volumes, or expanding into new markets. Additionally, emphasize your operational flexibility—whether your processes can easily adapt to growth, such as scaling up production, hiring more staff, or optimizing distribution channels. By showcasing your startup’s ability to scale efficiently, you can assure investors that your business is prepared to meet future challenges and opportunities without compromising performance. 5. Prepare Your Team for Involvement During operational due diligence, investors will likely want to meet key team members to better understand their roles and how they contribute to the company’s success. It’s important to ensure that your team is prepared to confidently explain their responsibilities, key achievements, and how their work supports the startup’s overall growth and vision. Each team member should be able to clearly articulate how their role fits into the broader strategy, whether they oversee product development, manage customer relationships, or handle financial operations. Encourage team members to familiarize themselves with recent successes and upcoming initiatives so they can speak knowledgeably about the company’s direction. By preparing your team for involvement in this process, you’ll demonstrate to investors that you have a capable and aligned workforce ready to execute the business plan. 6. Ensure Regulatory and Legal Compliance Investors will want to confirm that your startup is fully compliant with relevant industry regulations, data privacy laws, and legal obligations. This includes adherence to frameworks like GDPR, HIPAA, or any other industry-specific regulations that may apply to your business. Ensuring compliance demonstrates that your startup can operate legally and ethically in its market, reducing the risk of future legal issues. Prepare documentation that verifies compliance, such as regulatory certificates, privacy policies, and any legal agreements with customers, vendors, or partners. This readily available information will reassure investors that you’ve taken the necessary steps to mitigate legal risks and are committed to maintaining a strong ethical standing. 7. Utilize Technology for Data Management and Reporting Leveraging the right technology is essential for effectively managing and presenting operational metrics to investors. Tools like Visible allow you to seamlessly track and report critical data in a clear, organized manner. These platforms make creating customized reports highlighting your startup’s performance easier across key operational areas, such as financials, customer growth, and operational efficiency. By utilizing technology to streamline data management, you can ensure that your metrics are accurate, up-to-date, and accessible at all times. This not only helps in preparing for due diligence but also enhances transparency with investors, allowing them to assess your startup’s potential easily and track progress over time. Manage Investor Relations Easily with Visible Preparing your startup for operational due diligence requires careful attention to detail across several critical areas, from financial controls and compliance to scalability and team readiness. By proactively organizing your documentation, optimizing internal processes, and leveraging technology, you’ll be ready to present your business confidently to investors. Visible can help simplify the process by providing data rooms, financial tracking, and investor relations management, ensuring you’re ready when due diligence begins. Give it a free try for 14 days here. Related resource: Deal Flow: Understanding the Process in Venture Capital