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Fundraising
10 Required Slides in a Pitch Deck
Creating a pitch deck that captivates investors is crucial for any startup founder looking to secure funding. But what slides should you include to make the strongest impression? In this article, we'll walk you through the ten essential slides every pitch deck needs. From outlining your problem statement to showcasing your financials, we'll provide you with a roadmap to crafting a compelling narrative that captures investor interest and sets the stage for successful fundraising. Get ready to transform your pitch deck and elevate your startup's potential.
Related resource: Our Teaser Pitch Deck Template
Why Are Pitch Decks Important?
Pitch decks are crucial because they offer a concise, visually appealing format to present a startup's business plan to potential investors. They are the preferred format for several reasons:
Clarity and Focus: A well-structured pitch deck highlights the most critical aspects of your business, such as the problem, solution, market opportunity, and financial projections. This ensures that investors quickly grasp the essence of your startup.
Engagement: Visual elements like graphs, charts, and images make the presentation more engaging and easier to follow. This helps maintain the attention of investors, who often review numerous pitches.
Efficiency: Pitch decks allow founders to convey essential information succinctly. By adhering to guidelines like the 10/20/30 rule, presentations remain brief and impactful, respecting the time constraints of busy investors.
Storytelling: They provide a narrative structure that helps tell your startup's story compellingly. This narrative approach helps build a connection with investors, making your pitch more memorable.
Related resource: Seed Round Pitch Deck
The 10/20/30 Rule
The 10/20/30 Rule, introduced by venture capitalist Guy Kawasaki, is a guideline designed to help create effective and engaging pitch decks. According to this rule, a pitch deck should adhere to three key principles:
Ten Slides: Limit your presentation to ten slides. This constraint forces you to focus on the most essential information, ensuring clarity and preventing information overload for your audience.
Twenty Minutes: Aim to deliver your presentation within twenty minutes. This time frame is optimal for maintaining investors' attention while providing enough time for discussion and questions.
Thirty-Point Font: Use a minimum font size of thirty points for your text. This ensures that your slides are easily readable from a distance and encourages you to be concise, using only the most important points.
Adhering to the 10/20/30 Rule is crucial for several reasons. Keeping the presentation short and engaging helps maintain the audience's interest. It also ensures that your key messages are communicated clearly and effectively, making it easier for investors to understand and remember the critical aspects of your business. By following this rule, you can create a pitch deck that is both powerful and persuasive.
Related resource: Slides in a Pitch Deck
Slides to Include in Your Pitch Deck
When it comes to pitch decks, less is more. A concise and focused presentation allows you to communicate your startup’s value proposition effectively without overwhelming your audience. Including only the most essential slides ensures your message is clear and impactful. Here are the ten key slides you should include in your pitch deck:
Related resource: Pitch Deck Design
Title Slide
The title slide is your first impression and sets the stage for the entire pitch. It should be clean, professional, and include the following key elements:
Company Name: Clearly state the name of your startup to establish brand identity.
Your Name and Title: Include your name and title to personalize the presentation and establish credibility.
Contact Information: Provide your email address and phone number so investors can easily reach out for follow-ups.
Company Logo: Display your logo to reinforce brand recognition and professionalism.
Tagline or Mission Statement: A brief, compelling tagline or mission statement can succinctly convey your company’s purpose and vision.
The title slide is important because it sets the tone for the rest of your presentation. It provides essential information at a glance and makes it easy for investors to remember who you are and how to contact you.
Example
Airbnb: Airbnb's pitch deck title slide prominently features their logo, the company name, and a tagline: "Book rooms with locals, rather than hotels." This immediately communicates their unique value proposition.
Problem Statement
The problem statement slide is critical because it sets the stage for why your startup exists. It should clearly define the problem your product or service aims to solve, making it relatable and compelling to potential investors. To make a strong introductory statement, include the following metrics:
Market Size: Quantify the problem by highlighting the size of the market affected. This shows the potential scope and impact of your solution.
Prevalence: Use statistics to illustrate how widespread the problem is. For instance, stating that "70% of small businesses struggle with cash flow management" makes the problem tangible and urgent.
Financial Impact: Provide data on the financial consequences of the problem. For example, "Businesses lose $100 billion annually due to inefficient inventory management" underscores the economic significance.
User Pain Points: Highlight specific pain points experienced by your target audience. This helps investors understand the real-world challenges and frustrations that your solution addresses.
Importance
These metrics are important because they:
Establish Relevance: Demonstrate that the problem is significant and affects a large number of people or businesses.
Quantify Opportunity: Show investors the potential market size and financial opportunity if the problem is solved.
Create Urgency: Emphasize the immediate need for a solution, making your startup's mission compelling and timely.
Examples
Airbnb: In their pitch deck, Airbnb highlighted the problem by stating, "Price is an important concern for customers booking travel online." They supported this with data on the cost of hotel stays and the growing trend of people seeking more affordable options.
LinkedIn: LinkedIn’s pitch deck focused on the problem of professionals struggling to maintain effective networking. They presented data on the limitations of existing solutions like traditional resumes and business cards, highlighting the need for a modern professional networking platform.
Related resource: How to Create Impactful Problem/Solution Slides for Your Pitch Deck
Solution or Product Description
The solution or product description slide is your opportunity to showcase how your startup addresses the problem identified in the previous slide. To capture the attention of investors, your product needs to be conveyed clearly, compellingly, and convincingly. Here’s how to do it:
Clear Description: Provide a concise and clear description of your product or service. Avoid jargon and ensure that even someone unfamiliar with your industry can understand the solution.
Value Proposition: Highlight the unique value proposition of your product. Explain what sets it apart from existing solutions and why it is better or more effective.
Key Features: Showcase the main features and functionalities that solve the problem. Use bullet points or visuals to make these features easily digestible.
Benefits: Focus on the benefits your product provides to users. Explain how it improves their lives or businesses, making it indispensable.
Visuals and Demos: Use images, screenshots, or short video demos to demonstrate your product in action visually. This helps investors see the product’s potential and functionality.
Importance
Conveying your product effectively is crucial because:
Demonstrates Feasibility: Shows that you have a viable solution to the problem.
Builds Credibility: Demonstrates your understanding of the market and user needs.
Engages Investors: A compelling presentation captures interest and encourages investors to learn more.
Examples
Mint: Mint’s pitch deck described their personal finance tool by emphasizing how it simplifies money management. They highlighted key features such as budget tracking and financial goal setting, supported by screenshots of the app interface, making the value proposition clear and compelling.
Market Opportunity
The market opportunity slide is crucial in demonstrating your startup's potential for growth and profitability. Investors need to see that there is a significant and growing market for your product or service. Here’s how to effectively present this information:
Market Size: Show the total addressable market (TAM), serviceable available market (SAM), and serviceable obtainable market (SOM). These figures illustrate the overall market size and the portion your startup aims to capture.
Growth Trends: Highlight industry trends that indicate market growth. This could include increasing adoption rates, technological advancements, or shifts in consumer behavior that favor your solution.
Customer Segments: Identify and describe your target customer segments. Provide data on their demographics, needs, and purchasing behaviors.
Competitive Landscape: Show the current state of the market, including major competitors and gaps that your startup can exploit. Use charts or graphs to illustrate market share distribution.
Economic Indicators: Include relevant economic indicators, such as market growth rates, average customer spending, and profitability margins. These data points help quantify the opportunity.
Importance
The market opportunity slide is important because:
Validates Potential: Demonstrates that there is a real and significant demand for your product.
Attracts Investors: Investors are likelier to invest in startups operating in large and growing markets.
Guides Strategy: This helps investors understand your strategic positioning and market entry plans.
Examples
WeWork: WeWork’s pitch deck presented the growing demand for flexible workspaces. They included data on the rise of freelancers, remote work trends, and the shift away from traditional office spaces, demonstrating a significant market opportunity.
Business Model
The business model slide is crucial for showing investors how your startup plans to generate revenue and achieve profitability. It provides a clear picture of the financial mechanics of your business, demonstrating that your venture is viable and potentially lucrative. Here’s what you should include:
Revenue Streams: Detail the different ways your business will make money. This could include direct sales, subscription fees, licensing, advertising, or other revenue models.
Pricing Strategy: Explain your pricing model and how it aligns with your revenue streams. Include any tiered pricing, freemium models, or volume discounts.
Cost Structure: Outline your key costs, including fixed and variable expenses. This helps investors understand your cost base and how it scales with growth.
Profit Margins: Provide data on expected profit margins. This shows how much of your revenue translates into profit after expenses.
Customer Acquisition Cost (CAC): Present the cost of acquiring a new customer. This metric is crucial for understanding the efficiency of your sales and marketing efforts.
Lifetime Value (LTV): Estimate the average revenue generated from a customer over the lifespan of their engagement with your business. LTV helps investors gauge long-term profitability.
Break-even Analysis: Show when your startup is expected to become profitable. This includes the break-even point where total revenues equal total costs.
Importance
These data points are important because:
Demonstrate Viability: Show that you have a realistic and thought-out plan for generating revenue.
Build Credibility: Provide concrete financial metrics that back up your business strategy.
Attract Investment: Help investors understand the financial potential and risk associated with your startup, making it easier for them to commit funds.
Examples
YouTube: In their early pitch decks, YouTube highlighted their ad-supported revenue model. They explained how they planned to monetize user-generated content through targeted advertising, showcasing potential ad revenue projections based on user engagement metrics.
Go-to-Market Plan
The go-to-market (GTM) plan slide outlines your strategy for launching your product and achieving market penetration. It's crucial because it shows investors how you plan to convert your vision into reality, driving adoption and growth. Here’s what you should include:
Market Segmentation: Identify the specific segments of the market you will target first. Explain why these segments are your initial focus and how they will help you build momentum.
Marketing Strategy: Describe your marketing tactics and channels, such as digital marketing, social media, content marketing, partnerships, and PR. Highlight how you will reach and attract your target audience.
Sales Strategy: Explain your sales approach, including direct sales, online sales, channel partnerships, or a combination. Detail your sales process and how you will convert leads into customers.
Distribution Channels: Outline the channels through which your product will be delivered to customers. This could include online platforms, retail partnerships, or direct shipping.
Customer Acquisition: Provide a plan for acquiring and onboarding new customers. Include customer acquisition costs (CAC) and expected customer acquisition methods.
Timeline and Milestones: Present a timeline of key milestones, such as product launch dates, marketing campaigns, and sales targets. This helps investors see your progress and plan for scaling.
Importance
The go-to-market plan is important because:
Shows Preparedness: Demonstrates that you have a clear and actionable strategy for entering the market.
Reduces Risk: Provides investors with confidence that you have thought through how to gain market traction, reducing perceived investment risk.
Highlights Growth Path: Maps out how you will achieve growth, helping investors understand the potential return on investment.
Examples
Dropbox: Dropbox’s GTM plan focused on a viral growth strategy through their referral program, where users received additional storage for referring new users. This strategy effectively lowered customer acquisition costs and accelerated user adoption.
Known Competitors
Understanding your competitors is crucial for positioning your startup effectively in the market. This slide should provide an overview of the competitive landscape, showing investors that you are aware of existing alternatives and have a clear strategy to differentiate your product. Here’s what to include:
Competitor Overview: List your main competitors, including direct and indirect ones. Briefly describe each, focusing on their strengths and market position.
Competitive Analysis: Use a comparative table or chart to highlight key features, pricing, market share, and other relevant metrics. This visual aid helps investors quickly grasp how their competitors operate.
Unique Value Proposition: Clearly articulate what sets your product apart. Highlight your unique features, benefits, or technological advancements that give you a competitive edge.
Market Positioning: Explain how you position your product in the market relative to your competitors. Discuss your target audience and how your product better meets their needs.
Barriers to Entry: Identify any barriers to entry you have established, such as patents, proprietary technology, or exclusive partnerships, which protect your market position from competitors.
Importance
Understanding your competitors and highlighting your unique advantages is important because:
Informs Strategy: Demonstrates that you deeply understand the market and have strategically positioned your product to stand out.
Builds Credibility: This shows investors that you are well-prepared and have completed your competitive landscape homework.
Reduces Risk: This helps investors see that you have a plan to overcome competition, reducing perceived investment risk.
Examples
Uber: Uber’s pitch deck provided a clear overview of the transportation market, comparing its service to traditional taxis and other ride-sharing platforms. It emphasized its superior user experience, ease of use, and innovative pricing model.
Financials and Exit Strategy
The financials and exit strategy slide is vital for demonstrating the potential return on investment (ROI) to investors. This slide should detail your financial projections, funding requirements, and exit strategy. Here’s what to include:
Financial Projections: Provide detailed forecasts of your revenue, expenses, and profits for the next 3-5 years. Include key financial metrics such as gross margin, net profit, and EBITDA.
Funding Requirements: Specify how much funding you seek, what it will be used for, and how it will drive growth. Break down the use of funds into categories like product development, marketing, and operations.
Break-even Analysis: Show when your startup is expected to break even and start generating profit. This helps investors understand the timeline for financial viability.
Exit Strategy: Outline potential exit strategies, such as acquisition, merger, or IPO. Explain how and when you plan to "buy out" investors, providing them with a return on their investment.
Importance
Showing how you plan to buy out investors in the future is important because:
Demonstrates ROI: Investors want to know how and when they will see a return on their investment. An exit strategy provides a clear path to achieving this.
Reduces Risk: A well-defined exit strategy reduces the perceived risk by showing that you have thought through the end game and have realistic plans for achieving it.
Builds Confidence: Financial projections and a clear exit strategy build confidence in your business acumen and the long-term viability of your startup.
The Team
The team slide is one of the most critical components of your pitch deck because it highlights the people behind the startup. Investors often invest in teams as much as they invest in ideas, believing that a strong, experienced, and capable team is more likely to execute the business plan successfully. Here’s what to include:
Key Team Members: Introduce your core team members, including their names, titles, and roles within the company.
Relevant Experience: Highlight each team member's relevant experience and expertise. Include past achievements, previous startups, industry experience, and any notable accomplishments.
Complementary Skills: Show how the team’s skills complement each other. This demonstrates that your team can address various aspects of the business.
Advisors and Board Members: If applicable, include key advisors and board members who bring additional expertise and credibility to the team.
Importance
Showing how your team is uniquely qualified to solve the problem is important because:
Builds Credibility: Demonstrates that your team has the expertise and experience to execute the business plan and overcome challenges.
Instills Confidence: Investors gain confidence knowing that the team can deliver on the vision and achieve the startup’s goals.
Highlights Leadership: Emphasizes the leadership and strategic thinking behind the startup, making it more attractive to investors.
Mitigates Risk: A strong, competent team reduces the perceived risk of the investment, as investors trust that experienced professionals are steering the company.
Why Now
The "Why Now" slide is essential for conveying the urgency and timeliness of your investment opportunity. This slide should explain why the current moment is the perfect time for your startup to succeed and why investors should act quickly to seize this opportunity. Here’s what to include:
Market Trends: Highlight current market trends that favor adopting your product or service. This could include technological advancements, regulatory changes, or shifts in consumer behavior.
Industry Growth: Provide data on your industry's rapid growth, demonstrating that now is the time to enter the market.
Competitive Landscape: Explain how the competitive landscape is evolving and why your startup is uniquely positioned to capitalize on this moment.
Urgency Factors: Identify any factors that make immediate action crucial, such as a limited window of opportunity, first-mover advantage, or a pressing market need.
Recent Developments: Mention recent developments or milestones your startup has achieved that indicate readiness for rapid growth, such as product launches, strategic partnerships, or pilot program successes.
Importance
Showing that the investment is timely and the right choice is important because:
Creates Urgency: Investors are more likely to act quickly if they see a time-sensitive opportunity. Demonstrating urgency helps accelerate the decision-making process.
Enhances Relevance: Proving that your startup is aligned with current trends and market needs makes your business proposition more relevant and compelling.
Reduces Risk: Investors feel more confident investing in a startup that is positioned to take advantage of current market conditions, reducing perceived risk.
Capitalizes on Momentum: Highlighting why now is the ideal time to invest shows that your startup is poised for growth, leveraging momentum to drive success.
Examples
Slack: Slack’s pitch deck showcased the shift towards remote work and the growing need for effective team communication tools, demonstrating the immediate relevance and necessity of their product.
Connect, Fundraise, and Update Your Investors with Visible
Putting together a pitch deck is only the start of a successful fundraise. You need to find the right investors, manage conversations, and distribute your pitch deck. To get started with your next fundraise check out our investor database to help you find your investors.
Looking for best practices for sharing your pitch deck? Check out our template for sharing your pitch deck here.
Related resource: Tips for Creating an Investor Pitch Deck
founders
Fundraising
20+ VCs Investing in E-commerce and Consumer Products
Current Investment Landscape in 2024
The investment landscape for e-commerce startups in 2024 remains robust, albeit more competitive than in previous years. VCs continue to invest heavily in the sector, but the selection criteria have become more stringent due to evolving market dynamics and economic conditions.
Key Trends and Changes
1. Economic Factors
The global venture capital market saw a significant downturn in 2023, with a 35% year-over-year investment decrease. Although the market is gradually recovering, the total venture funding for Q1 2024 reached $66 billion, a 6% increase from the previous quarter but still a 20% decrease from the same period last year.
Economic uncertainties, including geopolitical tensions and inflation, continue to impact investor confidence, leading to a more cautious investment approach.
2. Selectivity and Profitability
With the maturing of the e-commerce market, easy growth opportunities have diminished. Startups need a clear path to profitability to attract VC attention. Investors increasingly favor startups that demonstrate strong financial health and sustainable business models.
3. Market Concentration
Major players like Amazon and Alibaba continue to dominate the global e-commerce landscape. This concentration makes it challenging for new startups to compete unless they offer unique value propositions or operate in niche markets.
4. Emerging Opportunities
Despite these challenges, significant opportunities remain, especially in emerging areas such as social commerce, live commerce, and B2B e-commerce. These segments are drawing considerable interest due to their potential for growth and innovation.
5. Patterns Guiding VC Investments
Omnichannel Retail: Integrating online and offline shopping experiences remains a strong focus. VCs are investing in startups that enhance customer experiences through seamless omnichannel strategies.
International Expansion: Startups with plans to expand into emerging markets like Asia and Latin America are attractive to VCs. These regions offer substantial growth potential due to increasing internet penetration and digital adoption.
Direct-to-consumer (D2C) Brands: D2C brands that leverage social media and direct marketing channels continue to be prime candidates for funding. The ability to build direct customer relationships and generate data-driven insights makes these startups particularly appealing.
Subscription Models: The stability of recurring revenue models remains attractive. Companies that successfully implement subscription services, offering consistent value to consumers, are likely to draw VC interest.
Related resource: Top Trends and Leading VCs Investing in D2C Brands: A Comprehensive Guide for 2024
6. What Investors Want
Consistent Growth: Investors seek startups with well-defined strategies that show clear scalability and robust revenue pathways.
Powerful Teams: The focus is not just on the ideas but on the execution. Startups with solid and experienced teams are more likely to secure funding.
Market Analysis: It is crucial to have a deep understanding of the market, competitors, and a unique selling point. To attract investors, startups must demonstrate thorough market research and a clear competitive advantage.
Evolving E-commerce
The future of e-commerce is set to combine the spontaneity and excitement of offline shopping with the convenience and personalization of online platforms. By leveraging AI, AR, and blockchain technologies, retailers aim to create more engaging, efficient, and sustainable shopping experiences.
Offline Discovery and Online Options
Recent advancements in AI and technology are significantly enhancing the offline-to-online shopping experience. Retailers are now leveraging AI to create personalized shopping experiences that mimic the serendipity of in-store discovery. AI algorithms analyze past purchases and browsing behaviors to offer tailored product recommendations, making online shopping more intuitive and engaging.
One notable development is the use of augmented reality (AR) to bridge the gap between offline and online shopping. For instance, AR apps allow customers to visualize how products like furniture or clothing will look in their homes or on their bodies before making a purchase. This technology enhances the shopping experience and reduces the likelihood of returns.
Future of E-commerce (Three Phases)
the future of e-commerce is set to combine the spontaneity and excitement of offline shopping with the convenience and personalization of online platforms. By leveraging AI, AR, and blockchain technologies, retailers aim to create more engaging, efficient, and sustainable shopping experiences.
1. Discovery
In 2024, new platforms and methods are revolutionizing product discovery. Social media channels like TikTok and Instagram are at the forefront, utilizing short-form videos and influencer marketing to introduce products to consumers. These platforms are essential for brands to reach new audiences and drive engagement through entertaining and informative content.
Additionally, AI-driven recommendation engines are becoming more sophisticated. E-commerce sites like Amazon and Alibaba use AI to suggest products based on real-time data, such as trending items and customer preferences, enhancing the discovery phase.
2. Conversion
Live shopping has emerged as a powerful tool for converting interest into sales. Platforms like Facebook, Instagram, and dedicated live shopping apps enable real-time interactions between sellers and buyers. This format allows customers to ask questions, see products in action, and make purchases instantly, creating a sense of urgency and trust.
Innovations in virtual fitting rooms and chatbots also play a crucial role in the conversion phase. Virtual fitting rooms use AR to help customers see how clothes fit without trying them on physically. AI-powered chatbots provide instant customer support, guiding shoppers through their purchasing journey and promptly addressing any concerns.
3. Returns & Resale
Improving return management and promoting sustainable shopping are critical in 2024. AI is now used to predict return patterns and optimize inventory management, ensuring returned products are restocked efficiently. Some companies are integrating blockchain technology to enhance transparency in the returns process, providing customers real-time updates on their return status.
The resale market is also gaining traction, with major brands like Target and Gucci entering the space. These companies use tech-powered platforms to facilitate the sale of secondhand goods, appealing to environmentally conscious consumers and promoting a circular economy. AI-driven platforms assess the condition of returned items and determine their resale value, making the process seamless and efficient.
VCs Investing in E-commerce and Marketplaces
FJ Labs
As put by the team at FJ Labs, “Marketplaces are the tool by which we achieve our purpose, the means to our end. We believe in entrepreneurs as solutionists to the world’s greatest challenges and VCs as the means to enabling all the amazing founders addressing the challenges of our time.
At FJ Labs, we believe in human ingenuity and back it with the full weight of our resources and knowhow. This is our ultimate mission and the reason we invest in so many companies.
Location: New York, United States
About: FJ Labs is a stage-agnostic New York-based investment firm with a global focus. FJ Labs focuses on marketplaces and consumer-facing startups.
Thesis: FJ Labs is a stage-agnostic New York-based investment firm with global focus. FJ Labs focuses on marketplaces and consumer facing startups.
Investment Stages: Seed, Series A, Series B, Series C, Growth
DN Capital
About: DN Capital is a global early-stage venture firm, founded in 2000 and based in London, Berlin and San Francisco. We focus on Seed, Series A and select Series B opportunities in Europe and North America. We believe great tech companies can emerge across any vertical, but we focus our attention on four: Software, Fintech, Marketplaces and Consumer Internet. We have consistently backed category leaders in these verticals such as Shazam, Auto1, HomeToGo, Purplebricks, Endeca and Remitly. We use our extensive global network and financial expertise to give portfolio companies the best possible platform for growth. We are always excited to receive business plans from entrepreneurs seeking capital. So, if you have a business we need to know about, then send us your materials here.
Thesis: We invest in Seed, Series A and growth-stage businesses and can support companies with up to €20m of capital.
Location: Menlo Park, California
Investment Stages: Pre-Seed, Seed, Series A
Commerce Ventures
About: E-commerce Ventures is a venture capital firm focusing on investments in the e-commerce, retail, FinTech and Insurance sectors.
Thesis: We invest across a range of sub-sectors that we refer to collectively as the Commerce Continuum. These sub-sectors include retail technology, payment technology, banking technology, and insurance technology.
Location: San Francisco, California
Investment Stages: Seed, Series A, Series B, Growth
Greenoaks
About: Greenoaks is a global internet investment firm that operates in the commercial services, health tech, and B2B sectors.
Location: San Francisco, California
Investment Stages: Seed, Series A, Series B, Series C, Growth
Adevinta Ventures
About: Adevinta Ventures is the corporate VC leg within Adevinta (formerly Schibsted Marketplaces)
Thesis: At Adevinta, we believe everything and everyone has a purpose in life. Our portfolio of digital brands unlock the full value in every person, place and thing by creating perfect matches on the world’s most trusted marketplaces.
Location: Barcelona, Spain
Investment Stages: Seed, Series A, Series B
Cabra VC
About: Adevinta Ventures is the corporate VC leg within Adevinta (formerly Schibsted Marketplaces)
Thesis: At Adevinta, we believe everything and everyone has a purpose in life. Our portfolio of digital brands unlock the full value in every person, place and thing by creating perfect matches on the world’s most trusted marketplaces.
Location: Barcelona, Spain
Investment Stages: Seed, Series A, Series B
Piton Capital
About: Founded in 2010, Piton Capital is a venture capital and growth equity firm headquartered in London and investing in businesses with network effects. We make investments ranging from €200k to €20m and since inception have invested in over 50 businesses, primarily in Europe. Piton focuses exclusively on network effects businesses as this provide one of the few moats or forms of defensibility to achieve dominance.
Thesis: Investing in companies with network effects.
Location: London, England, United Kingdom
Investment Stages: Series A, Series B, Early Stage
Dutch Founders Fund
About: The Dutch Founders Fund (DFF) is an early-stage VC that primarily invests in marketplaces and network effects across Europe. Our fund is founded by founders, for founders. We look beyond spreadsheets and resolve early-stage growth-pains with lightning speed. Ready to scale together? Submit your pitch deck to basrieter@dutchfoundersfund.com
Location: Amsterdam, Netherlands
Investment Stages: Early Stage, Pre-Seed, Seed
GGV Capital
As put by their team, “GGV Capital is a global venture capital firm focused on multi-stage, sector-focused investments. Recognizing that the talent to build great companies can come from anywhere, the firm invests in founders building category-leading companies around the world.”
Location: Menlo Park, California, United States
About: GGV Capital is a multi-stage venture capital firm based in Silicon Valley, Shanghai, and Beijing. We have been partnering with leading technology entrepreneurs for the last 18 years from seed to pre-IPO. With $3.8 billion in capital under management across eight funds, GGV invests in globally minded entrepreneurs in social/internet, commerce/new retail, frontier tech, and enterprise/SaaS. GGV has invested in over 280 companies with more than 30 companies valued at more than $1 billion.
Investment Stages: Series A, Series B
Kleiner Perkins
As put by the team at Kleiner Perkins, “For five decades we have partnered with intrepid founders to build iconic companies that made history. Today, Kleiner Perkins continues that legacy, investing in founders with bold ideas that span industries and continents, partnering with them from inception to IPO and beyond to maximize the potential of their ideas… and make history.”
Location: Menlo Park, California, United States
About: Kleiner Perkins is a venture capital firm specializing in investing in early-stage, incubation, and growth companies.
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.
Investment Stages: Series A, Series B, Growth
Lyra Ventures
As put by the team at Lyra Ventures, “We are venture capitalists investing in companies that use innovative technology to reinvent the business of fashion and retail. Our team and network of advisors have deep domain expertise in our industries of focus. We channel this knowledge into each of our investments, working alongside our founders, particularly early on in their company’s lifecycle.”
Location: Singapore, SG
About: We are venture capitalists investing in companies that use innovative technology to reinvent the business of fashion and retail. Our team and network of advisors have deep domain expertise in our industries of focus. We channel this knowledge into each of our investments, working alongside our founders, particularly early on in their company’s lifecycle.
Thesis: We support visionary and disciplined entrepreneurs who are transforming the industries of fashion and retail via the creation of high growth and resilient businesses.
Investment Stages: Seed, Series A
14W
As put by the 14W Team, “Founded in 2010, 14W is a global venture capital firm with offices located in New York, London, and Madrid. The firm seeks to invest in the consumer internet, e-commerce, consumer packaged goods, marketplace, and media sectors.”
Location: New York, New York, United States
About: 14W is a venture capital firm specializing in consumer internet, marketplace, ecommerce, CPG, and media.
Investment Stages: Seed
PayU
Location: Poznań, Wielkopolskie, Poland
About: PayU is a leading financial services provider in global growth markets. We enable billions of people to buy and sell online.
Thesis: One of the leading fintech investors globally, combining the expertise of high growth companies with our own unique local knowledge and technology to ensure that our customers have access to the best financial services.
Investment Stages: Seed, Series A, Series B
Act Venture Capital
As put by the team at Act, “We believe great companies are built by great founders, not investors. We have never been the loudest venture firm. We don’t want to add to the noise of VCs making it about them – it is about the founders and the problems they are trying to solve.”
Location: Dublin, Ireland
About: ACT is Ireland’s leading independent venture capital company and they have a very experienced and successful investment team. They provide capital to growth-oriented private companies in the range of €750K to €15M. Larger sums can be provided in syndication with their institutional investors. In December 2002, ACT closed its third fund at €170 million. ACT now manages €350 million through a number of venture capital funds.
Thesis: Investing in people, markets and technology.
Investment Stages: Seed, Series A, Series B, Series C, Growth
Activant Capital
As put by their team, “We typically invest when two things come together. First, the company has the potential to achieve escape velocity and transform an entire industry. Second, we believe the founders can lead the company through hyper growth, and our support can significantly increase the probability of this success.”
Location: Connecticut, United States
About: Act VC is an early-stage venture capital firm that partners with founders starting out, and established teams scaling their growth. We have raised €487m across multiple funds to support this goal. We look for innovative, category-defining companies in large markets. We help founders build and scale these leveraging the experience of backing over 200 founders before. We work closely with them in this process. Over the past 25 years, we have invested in over 120 companies and built a broad global network.
Investment Stages: Series A, Series B, Series C
Ascend
Location: Washington, United States
About: Pre-seed investor in marketplace, e-commerce/D2C, and B2B software startups in the Pacific Northwest.
Investment Stages: Pre-Seed
A.Capital
As put by their team, “Unlike traditional VCs, we do not have ownership thresholds. We work with entrepreneurs to determine how much to invest, and at what valuation, based on what their company needs, not based on historical VC financial models. This reduces overall dilution while still leaving room for value-added partners.”
Location: Menlo Park, California, United States
About: a_capital provides resources and counsel to the creators, inventors and entrepreneurs who are building a new future.
Thesis: Investing in consumer and enterprise technology companies.
Investment Stages: Seed, Series A, Series B, Series C, Growth
Lerer Hippeau
As put by their team, “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.”
Location: New York
About: Lerer Hippeau is a seed and early-stage venture capital fund based in New York City.
Investment Stages: Lerer Hippeau invests in companies from seed to Series C
Tandem Capital
About: Tandem Capital is a seed-stage venture fund and studio helping drive go-to-market innovation. Our studio helps companies craft business strategies, build brands, acquire customers and extend distribution channels. Our dedicated studio team engages deeply with a company’s business, to help find product-market fit and accelerate early growth. The studio provides support primarily to businesses selling products and services directly to individuals, including: connected devices, consumer packaged goods and subscription services.
Thesis: Our fund backs stellar teams whose innovation extends beyond their products into how they acquire their customers, develop their distribution channels and build their overall brands. Tandem leads and co-leads rounds with up to $500K in pre-seed and up to $2M in seed funding. We reserve a significant amount of capital in order to support our founder long-term through follow-on funding.
Location: San Mateo, California
Investment Stages: Pre-Seed, Seed
Launch
Location: San Francisco, California, United States
About: We are on a mission here at LAUNCH to support founders and inspire innovation. Our small team of rebels put on the largest startup conference in the world, the LAUNCH festival, the podcast This Week In Startups and we run the LAUNCH Incubator. We invest millions of dollars into 40 promising founders a year, some of which go on to change the world. Most of these founders spend 12 weeks in our very intense -- but fabulously fun -- accelerator.
Investment Stage: Accelerator
Imag/nary Ventures
Location: New York, United States
About: Founded by Natalie Massenet and Nick Brown, Imaginary Ventures is venture capital firm that invests in early–stage opportunities at the intersection of retail and technology in Europe and the US.
Investment Stage: Seed, Series A, Series B
Act One Ventures
Location: Seattle, Washington, United States
About: Seed stage fund focused on enterprise software and research from LA Universities. We believe in community, diversity, and Los Angeles.
Thesis: Investing in capital-efficient companies with excellent founder-market fit
Investment Stage: Pre-Seed, Seed
Acequia Capital
Location: Seattle, Washington, United States
About: Acequia Capital is focused on advising early stage founders and teams that have passion and conviction about the power of software.
Investment Stage: Pre-Seed, Seed
Arbor Ventures
Location: Singapore
About: Founded in 2013, Arbor Ventures is a global investment firm focused on companies that leverage advanced technologies such as artificial intelligence, cloud computing, composable service offerings and blockchain applications to facilitate, broaden or fundamentally change the way financial services are served, consumed, and managed. Arbor uses its global vantage point, extensive network and deep sector knowledge to identify key trends and partner closely with leading entrepreneurs to build transformational companies.
Investment Stage: Seed, Series A, Series B, Series C
BECO Capital
Location: Dubai, United Arab Emirates
About: BECO Capital provides growth capital and hands-on operational support for early-stage technology companies.
Investment Stage: Seed, Series A, Series B
Additional Resources
4 trends that will define e-commerce in 2022
Personalization and zero-party data become critical.
E-commerce embraces web3 and NFTs, but what will that look like?
Live shopping goes mainstream.
Slow but gradual improvement to the supply chain.
Jungle Scout is an eCommerce platform that helps entrepreneurs leverage Amazon to sell products. Their platform offers customers solutions to manage inventory, conduct product research, find suppliers, and more. Though the company is mainly Amazon-centric now, they are eyeing expansion to cover solutions for other online retail platforms, such as Walmart.com.
Consumer Trends Report | Q1 2022
The State of the Amazon Seller
Society Brands– Society Brands embraces the entrepreneur and provides them with a network of support and a rich pool of industry-leading resources to help them take their brands to the next level and create real value for a great exit.
Elevate Brands– A New York- and Austin-based startup that acquires and runs third-party Amazon merchants.
Berlin Brands Group (BBG)- One of the new wave of e-commerce startups hoping to build lucrative economies of scale around buying up smaller brands that sell on marketplaces like Amazon and using technology to run and scale them more efficiently.
20 Fast-Growing Ecommerce Startups (2022)
Our Guide to E-Commerce Metrics (with Google Sheet Template)
Key Metrics to Track and Measure In the eCommerce World
Video: Shopify Ecommerce Dashboard
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Fundraising
Business Plan vs Pitch Deck: The Differences and When You Need Them
Starting a new venture involves navigating numerous challenges, one of which is effectively communicating your business vision. Two essential tools in this process are the business plan and the pitch deck. While both are crucial, they serve different purposes and are used at different stages of your startup journey. In this article, we'll explore the key differences between business plans and pitch decks, what each includes, the level of detail required, the creation process, and specific use cases. Understanding these distinctions will help you use each tool to your advantage, ensuring you’re well-prepared to impress investors and guide your business to success.
Business Plans vs Pitch Decks - An Overview
When raising capital for your startup, both business plans and pitch decks are essential tools, each serving distinct purposes.
A business plan is a detailed document outlining your business’s objectives, strategies, market analysis, and financial projections. It provides a comprehensive roadmap for your business, guiding long-term strategic decisions and demonstrating viability to stakeholders such as banks and grant providers.
In contrast, a pitch deck is a concise, visually-driven presentation designed to quickly capture the interest of potential investors. It typically includes key highlights of your business, such as the problem you’re solving, your solution, market opportunity, business model, and team. The goal is to secure meetings and generate interest from venture capitalists, angel investors, and during startup competitions.
Both tools are crucial in fundraising, but they are used at different stages and for different audiences.
Business Plan
A business plan is a comprehensive document that outlines your business's objectives, strategies, market analysis, organizational structure, and financial projections. Its primary purpose is to serve as a detailed roadmap for your business, guiding strategic decisions and demonstrating the viability and potential of your venture to various stakeholders.
The business plan is essential for several key reasons:
Securing Funding: It provides potential investors, banks, and grant providers with an in-depth understanding of your business model, financial forecasts, and strategic plans, helping to secure necessary funding.
Strategic Planning: It acts as a guide for internal decision-making, helping founders and management teams align on goals and strategies.
Attracting Talent: A well-articulated business plan can attract co-founders, key hires, and partners by clearly outlining the business's vision and potential.
Use cases for a business plan include applying for loans, pitching to investors, and guiding internal strategy development. Each of these scenarios relies on the detailed and structured information that a business plan provides, making it an indispensable tool for startup founders.
Related resource: Startup Business Plan
Pitch Deck
A pitch deck is a concise, visually-driven presentation designed to quickly capture the interest of potential investors. It typically consists of around 10-20 slides that highlight the key aspects of your business, such as the problem you’re solving, your solution, market opportunity, business model, and team.
The primary purpose of a pitch deck is to provide a snapshot of your business that is engaging and easy to understand, aiming to secure meetings and generate interest from potential investors. Unlike the comprehensive nature of a business plan, a pitch deck is meant to be high-level and visually appealing, making it an effective tool for initial presentations.
Use cases for a pitch deck include:
Investor Meetings: Pitching to venture capitalists and angel investors to secure funding.
Startup Competitions: Presenting at demo days and competitions to gain exposure and interest.
Partnership Discussions: Engaging potential partners and stakeholders by providing a clear and compelling overview of your business.
The pitch deck serves several important functions:
Generating Interest: It is designed to grab the attention of venture capitalists, angel investors, and other stakeholders, encouraging them to seek more detailed information.
Communicating Vision: The pitch deck helps convey your business idea succinctly, showcasing the problem you’re solving, your solution, and your unique selling points.
Facilitating Meetings: A compelling pitch deck can lead to follow-up meetings, providing opportunities to delve deeper into your business plan and financials.
Related resource: Building Your Pitch Deck
What is Included in Each One
Understanding the structure and key components of business plans and pitch decks is crucial for effectively using each tool in your fundraising efforts.
A detailed and comprehensive business plan covers elements such as market analysis, financial projections, and strategic planning. In contrast, a pitch deck is concise and visually engaging, highlighting key aspects like the problem you’re solving, your solution, and your business model.
This section will provide an overview of what to include in each, highlighting the differences to help you tailor them to your needs.
Business Plan
A business plan is a detailed and comprehensive document that covers various aspects of your business. Key components typically include:
Executive Summary: A brief overview of your business, including your mission statement, product or service offering, and basic information about your company’s leadership, employees, and location.
Company Description: Detailed information about your business, including the problems you’re solving, your target market, and what makes your business unique.
Market Analysis: An examination of your industry, market size, expected growth, and competitive landscape.
Organization and Management: An outline of your business’s organizational structure, details about the ownership, and profiles of your management team.
Products or Services Line: Detailed descriptions of your products or services, including the lifecycle of each product, and how they benefit your customers.
Marketing and Sales Strategy: Your plan for reaching your target market, including pricing, advertising, and sales strategies.
Funding Request: If you’re seeking funding, this section outlines your current funding requirements, future funding requirements over the next five years, and how you intend to use the funds you receive.
Financial Projections: Detailed financial forecasts, including income statements, cash flow statements, and balance sheets for the next three to five years.
Appendix: An optional section that includes resumes, permits, lease agreements, legal documentation, and other pertinent information.
Pitch Deck
A pitch deck is a more concise and visual presentation focusing on highlighting your business's key aspects. Key components typically include:
Title Slide: The name of your business and a tagline or short mission statement.
Problem Statement: A description of the problem your business aims to solve.
Solution: An overview of your product or service and how it addresses the problem.
Market Opportunity: Information on your target market and the potential market size.
Business Model: An explanation of how your business will make money.
Traction: Evidence of your business’s progress and momentum, such as sales figures, customer testimonials, or user growth metrics.
Competition: An analysis of your competitors and your competitive advantages.
Go-to-Market Strategy: Your plan for attracting and retaining customers.
Financials: High-level financial projections and key metrics.
Team: Information about your founding team and key advisors.
Use of Funds: How you plan to use the investment you’re seeking.
Closing Slide: A summary of your pitch and a call to action, often including your contact information.
Related resource: Key Slides In Your Pitch Deck
Each of these components plays a crucial role in communicating the essential aspects of your business to different audiences. While the business plan is thorough and detailed, the pitch deck is designed to be engaging and to the point, helping you quickly capture the interest of potential investors.
What Level of Detail is Needed for Each One?
Business plans and pitch decks differ significantly in the level of detail they require. Business plans are comprehensive and detailed, covering strategic projections and in-depth analyses. In contrast, pitch decks are high-level, focusing on engaging visuals and key highlights to quickly capture investor interest.
Business Plan
A business plan requires a high level of detail to comprehensively outline your business’s strategic vision, operational structure, and financial projections. Each component must be thoroughly developed to provide a clear roadmap for the business and demonstrate its potential to stakeholders. Here's a breakdown of the required level of detail for each key component:
Executive Summary: This section should offer a concise yet comprehensive snapshot of your business, including your mission statement, the products or services you offer, and basic company information such as leadership, employees, and location. While brief, it should be compelling enough to attract further interest.
Company Description: This part should delve deeply into your business, explaining the problems you're solving, your target market, and what makes your business unique. It should provide a clear picture of your business’s purpose and the value it offers to customers.
Market Analysis: This section should include in-depth research on your industry, including market size, expected growth, and trends. A detailed competitive analysis is also crucial, highlighting your competitors' strengths and weaknesses and how you plan to differentiate your business.
Organization and Management: Provide detailed profiles of your management team, including their backgrounds, expertise, and roles within the company. An organizational structure chart can be helpful here, showing how different roles and departments interrelate.
Products or Services Line: Offer detailed descriptions of your products or services, including their lifecycle, development stages, and benefits to customers. Explain how your offerings meet the needs of your target market and any plans for future development or expansion.
Marketing and Sales Strategy: This section should outline your strategies for reaching your target market, including pricing models, advertising plans, sales tactics, and distribution channels. Be specific about how you will attract and retain customers, including any partnerships or collaborations.
Funding Request: If you are seeking funding, clearly outline your current and future funding needs, specifying how much you need, how you plan to use the funds, and any future funding requirements over the next five years. Provide a clear plan for how the funds will help achieve your business goals.
Financial Projections: Provide detailed financial forecasts, including income statements, cash flow projections, and balance sheets for at least the next three to five years. This section should demonstrate your business’s financial viability and growth potential, with assumptions clearly stated.
Appendix: Include any additional documents that support your business plan, such as resumes, permits, legal documentation, market research data, and any other relevant materials. The appendix should provide supporting evidence for the claims and projections made in your business plan.
Each of these components should be well-researched and thoroughly explained, offering a clear and detailed picture of your business and its potential. A comprehensive business plan not only helps in securing funding but also guides strategic decision-making and helps attract key partners and talent.
Pitch Deck
A pitch deck requires a concise yet engaging level of detail to capture the interest of potential investors and stakeholders effectively. Each component should be clear, visually appealing, and focus on the key highlights of your business. Here’s an outline of the necessary components and the level of detail required:
Title Slide: Include your business name, logo, and a brief tagline or mission statement. This slide should set the tone and provide a quick grasp of your business identity.
Problem Statement: Clearly and succinctly describe the problem your business aims to solve. Use visuals or anecdotes to illustrate the problem’s significance and relevance to your target market.
Solution: Provide an overview of your product or service and explain how it addresses the problem. Highlight the unique aspects of your solution and how it stands out from existing alternatives.
Market Opportunity: Present key information about your target market, including market size, growth potential, and trends. Use charts or graphs to make the data visually compelling and easy to understand.
Business Model: Explain how your business will make money. Include details on your revenue streams, pricing strategy, and any monetization plans. Keep it straightforward but comprehensive enough to show viability.
Traction: Highlight your business’s progress and milestones. This could include sales figures, user growth, partnerships, or any significant achievements. Use visuals like charts or graphs to showcase your momentum.
Competition: Provide a brief analysis of your competitors and articulate your competitive advantages. Use a comparison chart to highlight how your business outperforms or differentiates from others in the market.
Go-to-Market Strategy: Outline your plan for attracting and retaining customers. Include marketing and sales strategies, distribution channels, and any partnerships that will help you reach your target market effectively.
Financials: Summarize your key financial projections and metrics. Include revenue forecasts, profit margins, and break-even analysis. Use simple charts or graphs to make the data accessible and impactful.
Team: Introduce your founding team and key advisors. Highlight their relevant experience and roles within the company. Use photos and brief bios to humanize your team and build credibility.
Use of Funds: Explain how you plan to use the investment you’re seeking. Provide a clear and specific breakdown of how the funds will be allocated to drive growth and achieve your business goals.
Closing Slide: Summarize your pitch and include a call to action. Provide your contact information and invite investors to follow up for more detailed discussions.
Each component should be crafted to deliver maximum impact with minimal text, using visuals to convey key points effectively. The goal is to engage your audience, provide a compelling snapshot of your business, and secure further interest or meetings.
What Does It Take to Create Each One?
Creating a business plan and a pitch deck requires different approaches due to their distinct design, data, and storytelling requirements. Understanding the process for building each will help you allocate the necessary resources and time effectively.
Business Plan
Building a business plan is a detailed and collaborative effort that involves:
Extensive Research: In-depth market analysis, competitive landscape assessment, and financial forecasting.
Cross-Department Collaboration: Input from finance, marketing, operations, and management teams to ensure accuracy and comprehensiveness.
Detailed Documentation: Crafting a thorough narrative with strategic projections and detailed analyses.
The process is time-intensive, typically taking several weeks to a few months, depending on the business complexity and data availability.
Pitch Deck
Creating a pitch deck is a more streamlined process that emphasizes:
High-Level Research: Gathering essential data on market size, competition, and key financial metrics.
Visual Design: Collaborating with designers to create engaging and visually appealing slides or using templates that make designing easier such as canva or pitch.
Concise Storytelling: Developing a compelling, succinct narrative highlighting the business’s value proposition and growth potential.
This process is quicker, usually taking a few days to a couple of weeks, depending on the need for iterations and design work. Understanding these differences ensures you allocate the right resources and time for each document, aligning with their specific purposes and audiences.
Use Cases for Business Plans and Pitch Decks
Understanding when to use a business plan versus a pitch deck is crucial for effectively communicating your business vision and securing stakeholder support. Here are specific situations where each document would be most effective.
Business Plan
Securing Bank Loans: A detailed business plan is essential when applying for a bank loan. It provides lenders with comprehensive information about your business model, financial projections, and market analysis, demonstrating your ability to repay the loan and manage financial responsibilities effectively.
Internal Strategic Planning: A business plan guides internal decision-making and strategic planning. It helps align the management team on long-term goals, operational strategies, and resource allocation, ensuring everyone is working towards the same objectives.
Attracting Key Hires and Partners: A well-structured business plan can attract top talent and potential business partners by clearly outlining the business’s vision, growth potential, and strategic direction. It provides a detailed understanding of the company’s mission and future prospects, making it an attractive opportunity for skilled professionals and collaborators.
Pitch Deck
Investor Meetings: A pitch deck is perfect for pitching to venture capitalists and angel investors. Its concise, visually engaging format quickly captures the interest of potential investors, providing an overview of your business, the problem you’re solving, and your market opportunity, leading to follow-up meetings and deeper discussions.
Startup Competitions: During startup competitions and demo days, a pitch deck is essential. It succinctly presents your business idea, traction, and competitive edge, helping you stand out in a crowded field and attract potential investors or partners who attend these events.
Initial Partnership Discussions: When initiating discussions with potential partners, a pitch deck effectively communicates your business’s value proposition and strategic fit. It offers a compelling snapshot of your business, encouraging partners to explore collaboration opportunities further.
By understanding these use cases, you can strategically utilize business plans and pitch decks to engage different audiences and achieve your business objectives effectively.
Tailor Your Business Plan and Pitch Decks to Your Needs with Visible
Both business plans and pitch decks are essential tools for startup founders, each serving distinct purposes and requiring different levels of detail. A business plan provides a comprehensive roadmap for strategic planning and securing funding, while a pitch deck is a concise, visually engaging presentation designed to capture investor interest quickly.
Share your pitch deck confidently with Visible, a purpose-built platform for fundraising. Our pitch deck sharing tool is completely integrated with our fundraising CRM and investor updates platform. Founders can also leverage their brand by hosting decks from their own domain and highlighting brand colors.
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Fundraising
6 Types of Pitch Decks and When You’ll Need Them
Mastering the art of the pitch is crucial for any startup founder. Whether seeking investment, landing new customers, or forming strategic partnerships, having the right pitch deck can make all the difference. In this article, we'll explore six essential types of pitch decks every startup needs, each tailored to different audiences and situations. Discover how to craft compelling decks that resonate and drive results, from elevator pitches to detailed investor presentations. Prepare to elevate your pitching game and ensure you're always prepared to impress.
Reasons to Have Multiple Pitch Decks
As a startup founder, you’ll find yourself pitching your business to various audiences with unique interests and needs. Relying on a single pitch deck for all these situations can be a major drawback. Here’s why having multiple pitch decks is crucial for your success:
Tailoring Your Message: Different audiences care about different aspects of your business. Investors want to see your financials, market opportunity, and growth strategy. Potential partners are interested in synergies and shared goals, while customers focus on how your product solves their problems. A one-size-fits-all approach dilutes your message, making it less impactful. By creating tailored decks, you can emphasize the most relevant information for each audience.
Maximizing Engagement: When your pitch resonates with the audience's specific concerns, you’re more likely to keep their attention and spark interest. A well-targeted pitch shows that you understand their priorities and have taken the time to address them directly. This level of personalization can significantly increase your chances of securing investment, partnerships, or sales.
Building Credibility: A customized pitch deck demonstrates professionalism and preparedness. It signals your audience that you’re serious about your business and have done your homework. This can build trust and credibility, essential factors when persuading investors or partners to commit to your venture.
Adapting to Different Scenarios: Pitching is not a one-time event. You’ll need to present your business in various contexts, from quick elevator pitches to detailed investor meetings and product demos. Each scenario requires a different approach. Multiple pitch decks allow you to be agile and adaptable, ready to impress no matter the situation.
Related resource: Board Deck
Types of Pitch Decks Your Team Should Prepare
To navigate the diverse landscape of pitching scenarios, your startup needs a suite of specialized pitch decks. Each deck serves a unique purpose and is tailored to resonate with specific audiences.
Tailoring your pitch is crucial because different stakeholders have different priorities and concerns. Preparing specific decks for various situations ensures that your message is always relevant, compelling, and impactful. Each pitch deck allows you to focus on the aspects that matter most to your audience, making your presentation more effective and persuasive.
Here’s a brief introduction to the types of pitch decks your team should prepare:
Elevator Pitch Deck: This concise deck is designed for quick, impromptu pitches, where you need to grab attention and spark interest within a few minutes.
Investor Pitch Deck: Tailored for potential investors, this deck delves deep into your business model, market opportunity, financial projections, and growth strategy.
Sales Pitch Deck: Created to persuade potential customers or clients, this deck highlights the benefits and features of your product or service.
Partnership Pitch Deck: This deck focuses on forming strategic alliances by highlighting mutual benefits, synergies, and shared goals.
Demo Pitch Deck: A highly visual and interactive deck, used to showcase your product in action, emphasizing its functionality and user experience.
Customer Pitch Deck: Aimed at converting leads into customers, this deck addresses customer pain points and presents your solution convincingly.
In the following sections, we’ll dive deeper into each type of pitch deck, exploring their purposes, key components, and when to use them.
Elevator Pitch Deck
Definition:
An elevator pitch deck is a concise and highly focused presentation designed to quickly communicate the essence of your startup. It typically consists of a few slides and can be delivered in the time it takes to ride an elevator—around 30 seconds to 2 minutes.
Purpose:
The primary purpose of the elevator pitch deck is to grab the audience's attention and spark their interest in your startup. It serves as an introduction to your business, providing just enough information to make the listener want to learn more.
Key Components:
Introduction: A brief introduction to your startup, including the name and tagline.
Problem Statement: A clear and concise explanation of the problem your startup addresses.
Solution: An overview of your product or service and how it solves the problem.
Value Proposition: A summary of the unique value your startup offers.
Call to Action: A prompt for the next steps, such as setting up a meeting or requesting further information.
When to Use It:
The elevator pitch deck is ideal for impromptu or brief interactions where you have limited time to make an impression. This includes:
Networking events
Casual conversations with potential investors or partners
Initial introductions at conferences or trade shows
Any situation where you need to quickly convey the essence of your startup and pique interest
By having a well-crafted elevator pitch deck ready, you can ensure that you’re always prepared to make a strong first impression, no matter how spontaneous the opportunity may be.
Related resource: Teaser Deck
Investor Pitch Deck
Definition:
An investor pitch deck is a detailed presentation designed to provide potential investors with a comprehensive overview of your startup. This deck delves into the critical aspects of your business, including your market opportunity, financial projections, and growth strategy.
Purpose:
The main purpose of the investor pitch deck is to secure funding from venture capitalists, angel investors, or other financial backers. It aims to convince investors that your startup is a viable and lucrative investment opportunity.
Key Components:
Introduction: Briefly introduce your startup, including its name and a compelling tagline.
Problem Statement: Clearly articulate the problem your startup addresses and why it matters.
Solution: Provide a detailed explanation of your product or service and how it solves the identified problem.
Market Opportunity: Present data on the size of your target market, growth potential, and market trends.
Business Model: Explain how your startup plans to make money, including revenue streams and pricing strategy.
Traction: Showcase any early successes, such as user growth, sales figures, partnerships, or pilot projects.
Competitive Analysis: Identify your main competitors and highlight your competitive advantages.
Financial Projections: Provide detailed financial forecasts, including projected revenue, expenses, and profitability.
Team: Introduce your core team members, emphasizing their expertise and relevant experience.
Funding Requirements: Specify how much funding you are seeking and how you plan to use the capital.
Call to Action: Encourage investors to take the next step, such as scheduling a follow-up meeting or conducting due diligence.
When to Use It:
The investor pitch deck is used during formal presentations to potential investors. This can occur in various settings, including:
Venture capital pitch meetings
Angel investor gatherings
Startup accelerators and incubators
Investment competitions and demo days
By preparing a well-structured and persuasive investor pitch deck, you can effectively communicate the potential of your startup and attract the funding needed to scale and grow your business.
Related resource: Seed Round Pitch Deck
Sales Pitch Deck
Definition:
A sales pitch deck is a presentation designed to persuade potential customers or clients to purchase your product or service. It focuses on highlighting the value and benefits your offering brings to the customer, showcasing how it solves their specific problems.
Purpose:
The primary purpose of the sales pitch deck is to convert leads into paying customers by demonstrating the value and effectiveness of your product or service. It aims to build trust and convince the audience that your solution is the best fit for their needs.
Key Components:
Introduction: Briefly introduce your startup and what you offer, including a compelling tagline.
Problem Statement: Clearly articulate the customer's pain points and the problems they are facing.
Solution: Explain how your product or service addresses these pain points and solves the problem effectively.
Value Proposition: Highlight the unique benefits and value your solution provides to the customer.
Product Features: Provide a detailed overview of the key features and functionalities of your product or service.
Customer Testimonials: Include testimonials or case studies from satisfied customers to build credibility and trust.
Use Cases: Demonstrate how different customers or industries use your product to achieve specific outcomes.
Pricing: Outline your pricing model and any available packages or options.
Call to Action: Encourage the audience to take the next step, such as signing up for a demo, starting a trial, or making a purchase.
When to Use It:
The sales pitch deck is used during interactions with potential customers or clients. This includes:
Sales meetings and presentations
Product demonstrations
Follow-up meetings after initial interest
Trade shows and industry conferences
By having a well-prepared sales pitch deck, you can effectively communicate the value of your product, address any concerns, and persuade potential customers to take action and make a purchase.
Partnership Pitch Deck
Definition:
A partnership pitch deck is a presentation designed to secure strategic alliances with other businesses. It focuses on highlighting the mutual benefits of a partnership, emphasizing how collaboration can drive growth and achieve shared objectives.
Purpose:
The primary purpose of the partnership pitch deck is to persuade potential partners that a collaboration will be mutually beneficial. It aims to demonstrate how working together can create synergies, unlock new opportunities, and deliver value to both parties.
Key Components:
Introduction: Briefly introduce your startup and what you offer, including a compelling tagline.
Partnership Opportunity: Clearly articulate the rationale for the partnership and the specific goals you aim to achieve together.
Mutual Benefits: Highlight the key benefits for both parties, such as increased market reach, shared resources, and enhanced product offerings.
Market Opportunity: Present data on the market size, growth potential, and how the partnership can capitalize on these opportunities.
Value Proposition: Explain the unique value each partner brings to the table and how combining strengths can create a competitive advantage.
Synergies: Identify areas where the partnership can create synergies, such as technology integration, distribution channels, or customer base expansion.
Case Studies: Include examples of successful partnerships or collaborations that have yielded positive results.
Implementation Plan: Outline a high-level plan for how the partnership will be executed, including key milestones and responsibilities.
Call to Action: Encourage the potential partner to take the next step, such as setting up a detailed discussion or signing a memorandum of understanding (MOU).
When to Use It:
The partnership pitch deck is used during meetings with potential partners. This includes:
Initial discussions with companies you want to collaborate with
Negotiations to finalize partnership terms
Presentations at industry events where strategic alliances are sought
Follow-up meetings to refine partnership details
By preparing a well-structured partnership pitch deck, you can effectively communicate the potential of the collaboration, address any concerns, and persuade potential partners to move forward with the partnership.
Demo Pitch Deck
Definition:
A demo pitch deck is a highly visual and interactive presentation designed to showcase your product in action. It emphasizes the functionality, features, and user experience of your product through live demonstrations or detailed walkthroughs.
Purpose:
The primary purpose of the demo pitch deck is to demonstrate the capabilities and benefits of your product firsthand. It aims to give the audience a clear understanding of how the product works and how it can solve their specific problems or enhance their operations.
Key Components:
Introduction: Briefly introduce your startup and what you offer, setting the stage for the demo.
Product Overview: Provide a high-level overview of your product, highlighting its main features and functionalities.
Live Demonstration: Conduct a live demo or show a video walkthrough of your product in action, focusing on key use cases.
User Interface: Highlight the user interface and user experience, demonstrating how intuitive and easy-to-use your product is.
Key Features: Dive deeper into the standout features of your product and explain how they address specific customer needs.
Use Cases: Present real-world examples or scenarios where your product has been successfully used to solve problems or improve processes.
Customer Testimonials: Include testimonials or case studies from satisfied customers who have benefited from using your product.
Call to Action: Encourage the audience to take the next step, such as signing up for a trial, requesting a personalized demo, or making a purchase.
When to Use It:
The demo pitch deck is used during product demonstrations and interactive presentations. This includes:
Product demo meetings with potential customers or clients
Trade shows and industry conferences where live demos are expected
Sales presentations where the audience needs to see the product in action
Webinars or online demos conducted for a broader audience
By preparing a compelling demo pitch deck, you can effectively showcase the strengths of your product, engage your audience, and persuade potential customers of its value.
Customer Pitch Deck
Definition:
A customer pitch deck is a presentation aimed at converting leads into paying customers. It focuses on addressing the specific pain points of potential customers and presenting your product or service as the ideal solution to their problems.
Purpose:
The primary purpose of the customer pitch deck is to persuade potential customers to purchase your product or service. It aims to build a strong case for why your offering is the best fit for their needs, highlighting the benefits and unique value propositions.
Key Components:
Introduction: Briefly introduce your startup and what you offer, setting the context for the presentation.
Problem Statement: Clearly articulate the pain points and challenges faced by the customer that your product or service addresses.
Solution: Explain how your product or service effectively solves these problems, highlighting its unique features and benefits.
Value Proposition: Emphasize the unique value your product or service brings to the customer, differentiating it from competitors.
Product Features: Provide a detailed overview of the key features and functionalities of your product or service.
Customer Testimonials: Include testimonials or case studies from satisfied customers who have benefited from your offering.
Use Cases: Present real-world examples or scenarios where your product has been successfully used to solve problems or improve processes.
Pricing: Outline your pricing model and any available packages or options, making it easy for the customer to understand the cost.
Call to Action: Encourage the audience to take the next step, such as signing up for a trial, requesting a demo, or making a purchase.
When to Use It:
The customer pitch deck is used during interactions with potential customers who are in the decision-making phase. This includes:
Sales meetings and presentations
Follow-up meetings after initial interest has been shown
Product demonstrations tailored to specific customer needs
Webinars or online presentations aimed at converting leads
By preparing a compelling customer pitch deck, you can effectively communicate the value of your product, address any concerns, and persuade potential customers to take action and make a purchase.
Get Templates, Tips, and Connect with Potential Investors with Visible
Mastering the art of the pitch is essential for any startup founder. You can ensure your message resonates with each audience by preparing multiple tailored pitch decks—such as elevator, investor, sales, partnership, demo, and customer decks. This targeted approach maximizes engagement, builds credibility, and enhances your chances of achieving your business goals.
Share your pitch deck confidently with Visible, a purpose-built platform for fundraising. Our pitch deck sharing tool is completely integrated with our fundraising CRM and investor updates platform. Founders can also leverage their brand by hosting decks from their own domain and highlighting brand colors.
Try Visible free for 14 days and start strengthening your investor connections.
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17 Travel & Tourism VC Investors Who Can Fund Your Startup in 2024
Evolving Travel Trends and Market Analysis
The pandemic not only gave rise to a new way of traveling but also changed how people want to travel, providing them with new opportunities. Investments in alternative accommodation startups and other businesses in this area have been on the rise, and this trend will continue.
With remote work now an option for most people, new growth opportunities for coworking, coliving, and traveling have emerged. There are also new alternatives to Airbnb, such as Kindred, which offers travelers a members-only home exchange network where the community can swap or share their homes to travel for a fraction of the cost.
Market Size and Growth
The global travel and tourism market is showing robust growth post-pandemic. According to the World Travel & Tourism Council (WTTC), the sector is projected to grow by 5.8% annually over the next decade, reaching $8.6 trillion in 2024. This recovery is driven by pent-up demand, easing travel restrictions, and a growing middle class in emerging markets.
Current Trends and Consumer Behavior
The pandemic has significantly reshaped how people approach travel, leading to new preferences and expectations. As travel begins to rebound, businesses must adapt to these changes to effectively meet consumer demands and capitalize on emerging opportunities. Here’s a look at the key trends that are currently influencing consumer behavior in the travel and tourism industry.
Flexible Booking Policies: The uncertainty caused by the pandemic has led to a high demand for flexible booking options. Travelers prefer refundable bookings and the ability to change travel plans without penalties. According to Expedia’s Travel Trends Report, flexible booking options are a top priority for 78% of travelers.
Remote Work and Digital Nomadism: The shift to remote work has led to a surge in digital nomadism, with more people combining work and travel giving rise to “flexcations”. Combining work and leisure, travelers are choosing destinations where they can work remotely while enjoying a vacation. This trend has led to an increase in demand for long-term rentals and accommodations with work-friendly amenities.
Experiential Travel: There’s a growing preference for experiential travel, where travelers seek unique, immersive experiences rather than traditional sightseeing. This includes activities like culinary tours, cultural workshops, and adventure travel. Skift’s Megatrends 2023 report highlights that travelers increasingly seek personalized and authentic experiences that allow them to connect with local cultures and communities.
Personalized Travel: Travelers are also looking for personalized travel experiences that cater to their individual preferences and interests. This includes tailored itineraries, unique accommodations, and bespoke tours.
Technology-Driven Travel: The use of technology to enhance the travel experience is on the rise. This includes mobile check-ins, digital payment options, and virtual tours. Travelers rely heavily on apps and online platforms for booking, navigating destinations, and accessing travel information. The integration of AI and machine learning in these platforms helps in providing personalized recommendations and seamless travel planning.
Sustainable Tourism: Sustainable tourism has gained significant traction as travelers become more environmentally conscious. Eco-friendly accommodations, carbon offset programs, and sustainable travel practices are in high demand. According to a report by Booking.com, 83% of global travelers think sustainable travel is vital, and 61% say the pandemic has made them want to travel more sustainably in the future.
Future Outlook: Technological Advancements Shaping the Travel and Tourism Industry
Rapid technological advancements and evolving consumer preferences will shape the future of the travel and tourism industry. For startups in this space, staying ahead of these changes is key to maintaining a competitive edge and meeting the needs of modern travelers. Here’s a look at what’s on the horizon.
Blockchain Technology
Enhanced Security and Transparency
Blockchain can revolutionize travel by providing secure and transparent transactions. It can improve the accuracy of booking systems, reduce fraud, and enhance data security. For example, blockchain can be used for secure identity verification and streamlining payments and loyalty programs.
Decentralized Travel Platforms
Startups can leverage blockchain to create decentralized travel platforms, reducing reliance on intermediaries and lowering costs for travelers. Companies like Winding Tree are already pioneering decentralized travel marketplaces, allowing direct transactions between suppliers and consumers .
Artificial Intelligence (AI)
Personalized Travel Experiences
AI can analyze vast amounts of data to provide personalized travel recommendations and experiences. Chatbots and virtual assistants powered by AI can offer 24/7 customer service, helping travelers with bookings, itinerary changes, and travel advice.
Operational Efficiency
AI can optimize operations for travel businesses by predicting demand, managing inventory, and automating repetitive tasks. For instance, AI-driven analytics can help airlines and hotels forecast occupancy rates and adjust pricing strategies in real-time.
Virtual Reality (VR) and Augmented Reality (AR)
Immersive Pre-Travel Experiences
VR and AR technologies can offer immersive previews of travel destinations, helping travelers make informed decisions. VR tours of hotels, attractions, and destinations can enhance the booking process.
Enhanced On-Site Experiences
AR can enhance travelers’ experiences at destinations by providing interactive guides, real-time language translation, and augmented reality tours. For example, AR apps can overlay historical information and directions onto real-world environments, enriching the travel experience.
Internet of Things (IoT)
Connected Travel
IoT can create a seamless travel experience by connecting various devices and services. Smart luggage that tracks its location, hotel rooms that adjust settings based on guest preferences, and connected transportation systems are some examples.
Operational Improvements
IoT can help travel businesses monitor equipment performance, manage energy usage, and enhance guest safety and convenience. For instance, airports can use IoT to track baggage and improve security systems.
Journey Ventures
Location: Israel
About: Journey Ventures is a multi-stage VC dedicated to the booming Travel Tech industry. Travel is one of the world’s fastest-growing sectors. Travel startups of the last few years have already disrupted some of the largest sectors in our industry, a momentum we expect to continue. This large market of ever-increasing Travel Tech offerings is ready for smart investments, and Journey Ventures is an expert in the field.
Thesis: Our goal is to develop a portfolio of Israeli and international companies specializing in the fields of tourism, travel Tech and the hotel industry that have reached an advanced stage of technological development.
Investment Stages: Pre-seed, Seed, Series A, Series B, Series C
Recent Investments:
Wenrix
UpStay
Roomerang LTD
Related Resource: 9 Active Venture Capital Firms in Israel
MairDuMont Ventures
Location: Stuttgart, Germany
About: MAIRDUMONT VENTURES is the venture capital arm of the MAIRDUMONT Group and has been supporting digital travel companies in their future growth since 2015. MAIRDUMONT VENTURES uses its unique sector focus “Travel” to dive deeply into different business models and to evaluate potentials together with our portfolio companies. We have extensive know-how and can leverage the huge network of the MAIRDUMONT Group – with well-known brands such as Marco Polo, DuMont, Baedeker, Kompass or Falk – to offer our portfolio companies not only financial resources, but also strategic and operational support. We invest in fast-growing, early-stage and innovative companies that revolutionize travel. These can be solutions for end customers (B2C) as well as business customers (B2B).
Recent Investments:
zizoo
holidu
Paul Camper
Related Resource: 8 Active Venture Capital Firms in Germany
JetBlue Technology Ventures
Location: San Carlos, California, United States
About: JetBlue Technology Ventures invests in and partners with early stage technology startups improving the future of travel and hospitality.
Thesis: We invest in and partner with early stage startups improving travel and hospitality.
Investment Stages: Seed, Series A, Series B, Growth
Recent Investments:
NLX
FLYR Labs
Bizly
500 Startups
Location: Mountain View, California, United States
About: 500 Startups is a global venture capital firm with a network of startup programs headquartered in Silicon Valley.
Thesis: Uplifting people and economies through entrepreneurship
Investment Stages: Seed, Series A
Recent Investments:
Tripoto
Wandero
Flightfox
Fifth Wall
Location: Venice, California, United States
About: At Fifth Wall we are pioneering an advisory-based approach to venture capital. Full-service, integrated, operationally aligned. We are the first and largest venture capital firm advising corporates on and investing in Built World technology. Our strategic focus, multidisciplinary expertise, and global network provide unique insights and unparalleled access to transformational opportunities.
Investment Stages: Seed, Series A, Series B
Recent Investments:
Loft
Flyhomes
Smart Rent
Thayer Ventures
Location: Valencia, California, United States
About: Thayer Ventures invests in Travel Technology.
Thesis: We invest in early-stage travel and transportation technology.
Investment Stages: Seed, Series A
Recent Investments:
Beekeeper
Snapcommerce
Swiftmile
Structure Capital
Location: San Francisco, California, United States
About: Structure Capital help passionate teams build great companies by investing seed-stage capital, time, experience and relationships.
Investment Stages: Seed, Series A, Series B, Growth
Recent Investments:
Sonder
CANOPY
Unbabel
Portugal Ventures
Location: Porto, Lisboa, Portugal
About: Portugal Ventures is a venture capital firm that invests in seed rounds of Portuguese startups in tech, life sciences, and tourism.
Thesis: We invest in companies in the seed and early stages operating in the digital, engineering & manufacturing, life sciences and tourism sectors.
Investment Stages: Pre-Seed, Seed, Series A
Recent Investments:
DefinedCrowd
Relive
Sleep & Nature
aws Gründerfonds
Location: Vienna, Wien, Austria
About: Venture Capital for Ideas and Innovations aws Founders Fund invests venture capital during the start-up and early growth phase of Austrian start-ups. We offer support for your future (financial) plans as a long-term investor and partner and believe in the additional value of co-investments.
Investment Stages: Seed, Series A, Series B
Recent Investments:
Innerspace
Rendity
CheckYeti.com
VentureFriends
Location: Athens, Attiki, Greece
About: VC fund based in Athens but investing across Europe, we focus on FinTech, Travel, PropTech, B2C & Marketplaces. We are entrepreneurial investors, with strong experience, network and track record. We have been entrepreneurs, founders, worked at startups or angel investors in early stages and have a founder first & value driven approach
Thesis: We are entrepreneurial investors who love to support startups and help them become impactful companies with a worldwide presence.
Investment Stages: Seed, Series A, Series B, Series C, Growth
Recent Investments:
Blueground
Home Made
Welcome Pickups
Travel Impact Lab
Location: Utrecht, Netherlands
About: Travel Impact Lab helps start-ups to get started and sets existing travel organizations in motion.
Investment Stages: Accelerator
Travel Capitalist Ventures
Location: Irvine, California, United States
About: Travel focused Venture Capital and Private Equity Investor.
Thesis: We identify, invest and help travel companies rapidly and sustainably expand.
Investment Stages: Seed, Series A, Growth
Recent Investments:
Jetsmart
Voopter
Guiddoo
Alstin Capital
Location: Munich, Bayern, Germany
About: Alstin Capital is an independent venture capital fund based in Munich. We invest in rapidly growing technology companies that have the potential to leverage the significant market potential of the future and become market leaders. We not only invest in convincing technology, but above all in the entrepreneurs behind the technology. We support our entrepreneurs with capital and know-how so that they can grow faster and more successfully. Our investment is based on the conviction that entrepreneurial know-how, many years of transaction experience, international networks and sales excellence are the success factors for sustainable growth. Our team brings a variety of complementary strengths to help make any investment a success.
Investment Stages: Seed, Series A, Series B
Recent Investments:
Pilant
Neodigital
Circula
TruVenturo
Location: Hamburg, Germany
About: We believe venture capital will make the best returns if you invest in the big future markets. Therefore we are strong believers in Tech (managed by Norbert Beck), Brain Computer Interface (managed by Florian Haupt) and pharma to prevent age related disease and prolong healthy human lifespan managed by Nils Regge with the investment vehicle Apollo.vc.
Investment Stages: Seed, Series A, Series B
Recent Investments:
Dreamlines
HAPPYCAR
DreamCheaper
Howzat Partners
Location: London, England, United Kingdom
About: We are looking to invest in and build internet businesses that have a “HOWZAT” factor. This may sound a little trite; but we see major changes caused by the internet and the opportunities are genuinely exciting. The right idea; the right business; the right time; should generate the “HOWZAT” feeling. David felt it when he came across Cheapflights and was involved in acquiring the Company in 2000. We are seeking the same feeling again in the investments we make.
Investment Stages: Seed, Series A
Recent Investments:
Trivago
LODGIFY
otelz.com
Slow Ventures
Location: San Francisco, California, United States
About :Slow Ventures invests in companies central to the technology industry and those on the edges of science, society, and culture.
Thesis: Slow Ventures invests in companies central to the technology industry and those on the edges of science, society, and culture.
Investment Stages: Seed, Series A
Recent Investments:
Scout
Vamo
Hipcamp
Hangar 51
Location: London, England, United Kingdom
About: We are the innovation team at International Airlines Group, one of the world’s largest airline groups and home to iconic brands in the UK, Spain and Ireland. We are on a mission to transform aviation, helping test and scale high impact emerging technologies across our group. We scout for and partner with leading entrepreneurs to fund, support and scale solutions with the potential to transform the way we do things.
Investment Stages: Pre-Seed, Seed, Series A, Series B
Recent Investments:
ZeroAvia
Monese
Esplorio
Start Your Next Round with Visible
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The Rise of Venture Capital in Utah: A Look at Utah’s Top 14 VC Firms
Utah has rapidly emerged as a thriving hub for startups and venture capital, offering a fertile ground for entrepreneurial innovation and investment. The state's robust tech ecosystem, often referred to as the "Silicon Slopes," is home to a dynamic community of founders and investors driving significant growth and innovation.
Venture capital in Utah has seen remarkable expansion, with a growing number of VC firms providing critical funding and support to early-stage companies. This vibrant startup scene is supported by a strong network of accelerators, incubators, and resources that make Utah an attractive destination for entrepreneurs seeking to launch and scale their ventures .
Venture Capital in Utah
At Visible, we often compare venture capital fundraise to a traditional B2B sales and marketing funnel.
At the top of your fundraising funnel, you are bringing in qualified investors via warm and cold outreach.
In the middle of your fundraising funnel, you are nurturing potential investors with pitch decks, meetings, and email updates.
At the bottom of your fundraising funnel, you are hopefully closing new investors (and delighting them with regular updates).
Related Resource: How to Find Venture Capital to Fund Your Startup: 5 Methods
Just as a sales and marketing funnel starts with qualified leads, so should a fundraising funnel. For some companies, this might mean looking for local investors — for founders in Utah, check out a list of venture capitalists in the area below:
1. Park City Angels
As put by their team, “The Park City Angels are a group of 40+ accredited investors located in Park City, Utah. We look to invest in promising opportunities that can produce significant shareholder return. The active lifestyle of Park City has attracted many dynamic and successful business leaders that have deep experience in building world class businesses. We facilitate unique, high-caliber networking and development forums for angel investors and mentors involved in early-stage investment.”
Focus and industry: The Park City Angels team lays out their focus directly on their website, “We are most interested in companies that have valuations from $4MM to $6MM, have a reasonable likelihood of reaching $30MM in sales within 5 years, and can get to cash flow break-even within the next year or two.”
Funding stage: Park City Angels is focused on companies with valuations between $4M and $6M
The team at Park City Angels generally focuses on companies in Utah but is open to investing in companies across the country. Some of their most popular investments include:
Lula
High West Distillery
Allgood Provisions
Location: Park City, UT
Related Resource: VCs Investing In Food & Bev Startups
2. EPIC Ventures
As put by their team, “EPIC Ventures is a premier early-stage software and Internet infrastructure venture firm whose mission is to back entrepreneurs and companies positioned to lead the information economy of tomorrow. We bring the collective operational and financial experience of our partnership, our world-class advisors, and our extensive network of technology industry contacts to engage and ensure our portfolio’s success.”
Focus and industry: The team at EPIC Ventures does not state an industry focus.
Funding stage: The team at EPIC Ventures is focused on early-stage investments.
EPIC Ventures invests in companies in Utah and the greater northwest in the United States. EPIC Ventures has invested across four funds. Some of their most popular investments include:
Ancestory
Manscaped
Zenefits
Location: Salt Lake City, UT
Related Resource: A Quick Overview on VC Fund Structure
3. RenewableTech Ventures
As put by their team, “RenewableTech Ventures is committed to creating exceptional returns for both the entrepreneurs we invest in and our fund investors. These exceptional returns are achieved by investing in early-stage innovations in energy, clean technology, green materials, and other clean technologies. Our investment activity is focused in Canada and the United States, with a specific focus on regions that are underserved by venture capital.”
Focus and industry: The team at RenewableTech is focused on companies’ innovation in the energy, clean technology, and green technology space.
Funding stage: RenewableTech Ventures is focused on early-stage investments.
As put by their team, “RenewableTech Ventures provides capital, market intelligence, active board representation and an exceptional international network of industry contacts, technology leaders and co-investors.” They are focused on investing in the US/Canada, particularly in regions that are traditionally underserved by venture capital. Check out a few of their most popular investments below:
Solid Carbon Products
Consolidated Energy Systems
Voila Mattress
Location: Salt Lake City – Vancouver
4. Kickstart Fund
Kickstart Fund is a seed-stage venture capital firm based in Salt Lake City, UT. Kickstart’s mission is to fuel the best companies in the Mountain West by providing smart capital, a connected community, and expert guidance. Since raising its first fund in 2008, Kickstart has invested in more than 150 companies.
Focus and industry: As put by their team, “We’re industry agnostic and have invested in SaaS, consumer, marketplace, and healthcare startups.”
Funding stage: Kickstart is focused on seed investing
The team at Kickstart has invested in 150+ companies and has become synonymous with seed investing in the western US. Kickstart traditionally writes checks between $250k and $2M. The team is largely focused on investing in companies located in Utah, Colorado, and the Mountain West. Check out a few of their most popular investments below:
Stance
CloudApp
Cotopaxi
Location: Cottonwood Heights, Utah
5. Cross Creek
Cross Creek seeks to invest in later stage companies through its direct and fund investment strategy.
Funding Stage: Series C, Growth
Location: Salt Lake City, UT
6. Pelion
As put by their team, “Since 1986, Pelion Venture Partners has been helping entrepreneurs turn early-stage concepts into tomorrow’s industry-leading companies. The Pelion team has deep and diverse industry and investment experience. We are hands-on in our approach and work collaboratively on each portfolio company over the life of an investment.”
Focus and industry: Pelion is agnostic in their investment focus
Funding stage: Pelion is focused on early-stage investments
The team at Pelion has been investing since 1986 so it is fair to say that they know their way around the Utah venture capital space. Some of their most popular investments include:
BigPanda
Owlet
Divvy
Location: Salt Lake City, UT
7. Mercato
As put by their team, “Mercato has built its success by providing entrepreneurs with the capital and resources they require to effectively scale their businesses. Over time, we have become expert growth investors with firsthand knowledge of what organizations really need to be successful.”
Focus and industry: The team at Mercato invests across 4 funds — each with a different focus and stage as shown below:
Funding stage: Mercato invests across many stages depending on the fund
As mentioned above, Mercato has 4 specific funds. Each fund gives them the opportunity to invest in different stages or markets. For the sake of this post we will take a look at their “Prelude Venture Fund.” As they put it, ‘Prelude companies have demonstrated product-market-fit and have deep customer relations obtained through product leadership and nimble execution.”
A few of Prelude’s most popular investments include:
Cotopaxi
Blip
Bluematador
Location: Cottonwood Heights, UT
8. Zetta Venture Partners
As put by their team, “At Zetta Venture Partners, it’s our mission to help technical founders turn machine learning models into market-leading companies. We were the first VC firm exclusively focused on identifying and supporting AI-driven, B2B businesses.”
Focus and industry: Zetta Venture Partners is focused on AI-first startups
Related Resource: How AI Can Support Startups & Investors + VCs Investing in AI
Funding stage: The team at Zetta Venture Partners leads pre-seed and seed rounds.
Zetta Venture Partners launched their first fund in 2015 and has been hyper-focused on AI startups since. Zetta believes that AI startups are different than traditional software companies and are well-suited to help technical founders in the space. Some of their most popular investments include:
Clearbit
Domo
Tractable
Location: New York – San Francisco – Utah
9. Signal Peak Ventures
As put by their team, “Signal Peak is a private equity and venture capital firm with more than $500 million of committed capital under management. The firm focuses on making equity investments in early-stage technology companies in emerging markets. Signal Peak is typically a SaaS investor targeting companies with differentiated and disruptive business models, exceptional management teams, and large addressable markets.”
Focus and industry: Signal Peak typically targets SaaS companies
Funding stage: Signal Peak is focused on early-stage companies
Signal Peak is focused on investing in technology companies across the United States. Some of their most popular investments include:
Degreed
Slate
Hivewire
Location: Salt Lake City, UT
10. Peterson Ventures
As put by the team at Peterson Ventures, “We get it, building a business is hard. With us you get a dedicated partner you can trust, no matter what. And when you need it, we’re a counselor without a co-pay.
We help you go from Seed to Series A by investing in your seed round, introducing you to our network of CEO’s and advisors, improving your metrics, focusing your strategy when the time is right, introducing you to some of the best investors around for your next round of funding.”
Focus and industry: Peterson Ventures is focused on companies in digital commerce and SaaS
Funding stage: Peterson Ventures is focused on seed and early-stage startups
The team at Peterson invests in the people behind a business. They believe in building long-lasting relationships with their entrepreneurs. A few of their most popular investments include:
Allbirds
Bonobos
Cotopaxi
Location: Salt Lake City, UT
11. Album VC
Album VC, originally known as Peak Ventures, is a well-regarded venture capital firm based in Utah that focuses on investing in early-stage technology companies. Established by seasoned entrepreneurs John Mayfield and Curt Roberts, Album VC rebranded in 2019 to better reflect its mission of amplifying the stories of the companies they back. The firm is known for its founder-friendly approach, providing not only capital but also extensive mentorship and strategic support. Album VC has a strong track record of helping startups achieve significant growth and success, making it a valuable partner for entrepreneurs looking to scale their businesses.
Focus and industry:
The primarily focus is on early-stage investments across a wide range of industries. They have a particular interest in sectors such as software, consumer internet, and enterprise technology. Their portfolio includes companies that are pushing the boundaries of innovation and transforming their respective industries. Founders in these sectors can expect Album VC to bring not only capital but also strategic guidance and valuable industry connections.
Funding stage:
Album VC typically invests in Seed and Series A rounds, offering initial checks ranging from $500,000 to $5 million. They aim to support startups from their earliest stages of development, providing the necessary resources to scale and succeed. Album VC’s investment strategy is tailored to help companies navigate the critical phases of growth, ensuring they have the support needed to achieve their milestones.
Location:
Lehi, Utah
12. Tamarak Capital
Tamarak Capital is a dynamic venture capital firm dedicated to nurturing early-stage startups with high growth potential. With a mission to accelerate the development of innovative companies, Tamarak Capital combines financial investment with strategic mentorship to help founders build successful businesses. The firm prides itself on its collaborative approach, working closely with entrepreneurs to provide the guidance and resources needed to achieve their goals.
Focus and industry:
Tamarak Capital primarily focuses on investing in technology-driven industries. Their areas of interest include software, hardware, consumer products, and healthcare technology.
Funding stage:
Tamarak typically invests in Seed and Series A rounds, with initial investments ranging from $500,000 to $2 million. Their goal is to support startups at the early stages of their development, providing the capital and expertise necessary to help them scale.
Location:
Springville, Utah
13. StartStudio
StartStudio is an innovative venture capital firm based in Utah, dedicated to transforming early-stage startups into successful, scalable businesses. With a unique approach that blends investment with hands-on incubation, StartStudio works closely with founders to develop their ideas and bring them to market. Their team of experienced entrepreneurs and investors provides comprehensive support, including mentorship, strategic guidance, and operational assistance, making StartStudio a valuable partner for ambitious startups looking to accelerate their growth.
Focus and industry:
StartStudio primarily focuses on technology-driven industries, with a strong emphasis on software, mobile applications, and digital platforms.
Funding stage:
StartStudio typically invests in pre-seed and seed-stage companies, with an initial investment of $100,000. Their investment strategy is designed to provide early-stage startups with the critical funding they need to develop their products, validate their business models, and prepare for subsequent funding rounds.
Location:
Provo, Utah
14. Royal Street Ventures
Royal Street Ventures' philosophy is centered on collaboration and long-term partnership. It offers both financial backing and strategic mentorship to early-stage companies. The team comprises seasoned investors and industry experts who work closely with founders to provide the resources and guidance necessary for scaling their businesses and achieving market success.
Focus and industry:
They invest in companies focused on creating scalable, tech-enabled solutions to real-world problems from the Midwest to the Pacific U.S.
Funding stage:
Typically, they invest in early-stage and seed rounds, with initial investments ranging from $250,000 to $2 million.
Location:
Park City, Utah
Find investors in Utah with Visible
As we mentioned at the start of this post, we often compare a venture capital fundraise to a traditional sales and marketing funnel. Just as a sales and marketing team has dedicated tools, shouldn’t a founder manage their investors?
With Visible you can manage every part of your fundraising funnel:
Find investors with Visible Connect, our free investor database, at the top of your funnel
Track your conversations with our Fundraising CRM
Nurture them with our Pitch Deck sharing tool
Work through due diligence with our Data Room tool
Delight them with regular investor Updates
Give Visible a free try for 14 days here →
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12+ Cannabis Venture Capital Investors to Know in 2024
Cannabis Legal Landscape in 2024
Staying informed about legal developments is crucial for cannabis founders as they navigate the complex and rapidly changing landscape. Understanding the legal environment will help them make strategic decisions, ensure compliance, and capitalize on new opportunities as they arise.
Current State of Cannabis Legalization in the U.S.
As of 2024, the legal landscape for cannabis in the United States continues to evolve rapidly. Over 20 states have fully legalized cannabis for both medicinal and recreational use, reflecting a growing acceptance and normalization of cannabis across the country. Notably, states such as New York, Virginia, and Connecticut have recently implemented adult-use cannabis programs, adding to the momentum.
Federal Status: Cannabis remains illegal at the federal level, classified as a Schedule I substance under the Controlled Substances Act. However, there have been significant legislative efforts to change this. The MORE Act (Marijuana Opportunity Reinvestment and Expungement Act) and the SAFE Banking Act (Secure and Fair Enforcement Banking Act) have gained traction in Congress, aiming to decriminalize cannabis and provide a safer, more accessible financial environment for cannabis businesses.
State-by-State Variation: Despite federal prohibition, individual states have continued to pass their own cannabis laws. This patchwork of regulations creates a complex legal environment for cannabis businesses operating across state lines. Entrepreneurs must navigate varying requirements for licensing, taxation, and compliance.
Global Cannabis Legalization
Internationally, the movement toward cannabis legalization is gaining significant ground. Several countries have either decriminalized cannabis or established legal frameworks for its medicinal and recreational use.
Canada: As one of the first countries to legalize recreational cannabis nationwide in 2018, Canada continues to lead in both market development and regulatory structure.
Europe: European countries like Germany and Luxembourg are in the process of implementing comprehensive cannabis legalization measures. Germany, in particular, is poised to become the largest legal cannabis market in Europe.
Latin America: Countries such as Mexico and Colombia have made strides in legalizing and regulating cannabis, with Mexico expected to finalize its legalization framework soon.
Asia: While most Asian countries maintain strict cannabis laws, Thailand has emerged as a regional pioneer by legalizing medical cannabis and considering broader reforms.
Significant Changes and Expected Upcoming Legislation
U.S. Federal Reform: The potential for federal cannabis reform in the U.S. remains a key area of focus. The passage of bills like the MORE Act and SAFE Banking Act could significantly alter the landscape, offering greater protections and opportunities for cannabis businesses.
Interstate Commerce: As more states legalize cannabis, the conversation around interstate commerce is heating up. Allowing cannabis products to move freely between states could open up new markets and reduce costs, but it would require significant regulatory adjustments.
Social Equity Programs: There is a growing emphasis on social equity in cannabis legislation. Many states are implementing or enhancing programs designed to ensure that communities disproportionately affected by the War on Drugs have access to opportunities in the legal cannabis market.
Global Harmonization: On the global stage, there is an increasing push towards harmonizing cannabis regulations to facilitate international trade and research. This could lead to more consistent standards and practices across countries, benefiting businesses that operate internationally.
Cannabis Market Growth and Projections
The cannabis industry continues to experience rapid growth, driven by increasing legalization, evolving consumer preferences, and technological advancements. As of 2024, the global cannabis market is projected to reach significant milestones, with substantial growth expected in the coming years.
Related Resources: 8 Cannabis Startups With High Growth Potential
Market Size and Growth Projections
Global Market: The global cannabis market was valued at approximately $43.72 billion in 2022 and is expected to grow to $57.18 billion in 2023. By 2030, the market is projected to reach $444.34 billion, reflecting a compound annual growth rate (CAGR) of 34.03%.
U.S. Market: In the United States, the cannabis market is anticipated to grow from $13.2 billion in 2022 to around $40.1 billion by 2030, with a CAGR of 14.2%. Retail cannabis sales in the U.S. could reach $53.5 billion by 2027.
Key Trends Shaping the Industry
Technological Advancements: Integrating blockchain and artificial intelligence (AI) is expected to revolutionize supply chain management and compliance tracking in the cannabis industry. Additionally, personalized cannabis products are gaining traction as consumers seek tailored experiences and products that meet their specific needs.
Product Innovation: The trend toward innovative and diverse cannabis products continues to grow. Products such as pre-rolls, edibles, oils, and topicals are becoming increasingly popular. The market for CBD-infused products, including beverages and skincare items, is also expanding rapidly.
Price Compression: Competitive pricing among cannabis brands and retailers has led to significant price declines since 2021. This trend has forced brands to consolidate and adapt to maintain profitability in a highly competitive market.
Consumer Demographics: Millennials are currently the largest demographic of cannabis consumers in the U.S., capturing nearly 46.2% of all cannabis sales. However, Gen Z is the fastest-growing group, indicating a shift in consumer dynamics and preferences.
Medical and Recreational Use: The medical marijuana segment continues to dominate the market, accounting for a significant share of revenue due to its acceptance for treating chronic conditions such as cancer, epilepsy, and anxiety. The recreational cannabis segment is also growing rapidly, driven by increased legalization and consumer acceptance.
Future Outlook
The cannabis industry is poised for continued growth and evolution in the coming years. Key factors influencing this growth include:
Legalization Trends: More U.S. states and countries worldwide are expected to legalize cannabis for both medical and recreational use, contributing to market expansion and increased consumer access.
Social Equity Initiatives: There is a growing emphasis on social equity programs designed to support marginalized communities and promote diversity within the cannabis industry.
Sustainability: Environmental sustainability is becoming a critical focus, with many cannabis companies adopting eco-friendly practices to meet consumer demand and regulatory requirements.
Emerging Investment Trends in Cannabis
As the cannabis industry continues to expand, several emerging investment trends are shaping its future. Investors are increasingly focusing on technological advancements that enhance efficiency and transparency, innovative health and wellness products that cater to growing consumer demand, and sustainable practices that ensure environmental responsibility.
Tech Integration
Technology is increasingly vital in the cannabis industry, driving advancements across various segments, including cultivation, processing, distribution, and retail.
Cultivation: Advanced technologies such as precision agriculture, including sensors and drones, are optimizing cannabis cultivation. These technologies help monitor soil health, moisture levels, and plant growth, allowing for better crop management and higher yields.
Processing: Innovations in extraction techniques, such as supercritical CO2 extraction, are enhancing the efficiency and quality of cannabinoid extraction processes. This results in purer products and reduces the use of harmful solvents.
Distribution: Blockchain technology is being implemented to enhance transparency and traceability in the supply chain. Tracking each stage, from seed to sale, ensures product authenticity and safety.
Retail: AI and machine learning are transforming the retail landscape by enabling personalized customer experiences. Predictive analytics help retailers stock the right products and offer personalized recommendations, enhancing customer satisfaction.
Health and Wellness
The health and wellness sector is witnessing a significant rise in the use of cannabis products, driven by growing consumer awareness and acceptance of their medicinal benefits.
CBD Products: CBD, known for its non-psychoactive properties, is increasingly being used to treat conditions such as anxiety, epilepsy, and chronic pain. The FDA-approved drug Epidiolex, which contains CBD, is used to treat seizures associated with Lennox-Gastaut Syndrome.
THC and Other Cannabinoids: THC, although psychoactive, is recognized for its therapeutic benefits, including pain relief and appetite stimulation. The development of THC-based products, such as Sativex, is aimed at treating multiple sclerosis and other conditions.
Wellness Products: The integration of cannabis into wellness products such as topicals, tinctures, and edibles is growing. These products are marketed for their potential to provide relief from muscle soreness, inflammation, and stress, contributing to overall wellness.
Sustainability
Sustainability is becoming a critical focus in the cannabis industry as companies and consumers prioritize environmentally friendly practices.
Eco-Friendly Cultivation: Sustainable cultivation practices include organic growing methods, water recycling systems, and energy-efficient lighting. These practices reduce the environmental impact of cannabis farming.
Packaging Innovations: There is a growing trend towards sustainable packaging solutions to reduce waste. Companies are adopting biodegradable and recyclable packaging materials to minimize their carbon footprint.
Corporate Responsibility: Many cannabis companies are implementing corporate social responsibility (CSR) initiatives focusing on sustainability. These initiatives include reducing greenhouse gas emissions, supporting local communities, and promoting social equity in the industry.
Venture Capital Firms Making Cannabis Investments
When fundraising, it is crucial that founders spend time communicating with and pitching the right investors. To help founders get a start with finding cannabis investors, we used our free investor database, Visible Connect, to find 12+ investors below:
KEY Investment Partners
KEY is a Denver-based capital venture firm positioned in the most established market of US cannabis. In addition to their +38 years of investing experience, KEY Investment Partners also produces a cannabis-focused blog (found HERE), which gives insight into current events impacting the legal cannabis industry.
Base Ventures
Base Ventures is a Berkeley, CA-based venture fund led by Erik Moore. Base Ventures is a seed-stage fund that invests across all verticals of tech companies — with a % of those being in cannabis companies. Erik and his team have made over 100 venture investments with the most recent cannabis investment being in late 2019.
Entourage Effect Capital
Entourage Effect is one of the largest players in the cannabis industry. They have allocated over $200M into 65+ companies since 2014. Their three managing partners, Matt Hawkins, Andy Sturner, and Dov Szapiro, have a combined 65+ years of venture experience and are not planning on slowing down anytime soon.
HALLEY Venture Partners
HALLEY Venture Partners has been focused on the cannabis sector for the past five years. The San Francisco-based firm is led by Steve Schuman, who has over 17 years of private and public equity experience, ranging across agriculture, technology, and manufacturing. HALLEY is heavily geared toward the technology sector of cannabis and is looking to build highly-scalable businesses.
Related Resource: 14 Venture Capital Firms in Silicon Valley Driving Startup Growth
Green Lion Partners
Green Lion Partners looks to invest in early-stage ventures throughout the entire cannabis industry. The Denver-based business, founded by Jeffrey Zucker and Michael Bologna, looks to “elevate public perception of the cannabis industry.”
Salveo Capital
Salveo Capital is focused on creating long term cannabis companies and focuses on empowering the entrepreneurs in charge. Michael Gruber (managing partner) has been involved in the early stage investing environment for 25 years, focusing on tech, finance, and agriculture. Jeffrey Howard (managing partner) has spent 21 years on Wall Street and has become both an advisor and investor of cannabis-based firms.
Phyto Psyche
Phyto Partners invests in a plethora of different cannabis-based businesses, including SaaS, Data, Biotech, Advertising, and more. The investing firm is led by Larry Schnurmacher, who has invested in 25 private, cannabis businesses over the past five years. Phyto invests more than just capital into the 30+ businesses they have lent help to.
McGovern Capital
McGovern Capital LLC, based in New York City and Boca Raton, Florida, is a leading private investment firm and Intellectual Property Rights Strategist that originates, funds, structures and implements capital formation, joint ventures and business alliances. Mcgovem Capital LLC invests early-stage capital and provides facilitative services to its
investment companies. They provide access to a network of Angel investors comprised of high net-worth individuals, approximately 50% of which are located in the metropolitan New York area, with the rest ranging from the West Coast of the US to several overseas countries.
Altitude Investment Management
About: Altitude is a New York-based venture capital fund manager focused on the global cannabis industry. The manager's strategy is to invest in a range of early-to-growth stage companies in North America and Europe that support this rapidly growing industry.
Our principals have spent their careers launching and managing alternative investment funds, including distressed debt and leveraged credit strategies. We have been involved in highly-regulated industries for decades, and this experience makes our leadership team uniquely qualified to face the regulatory and funding challenges within the cannabis industry.
Having invested in the cannabis industry for more than three years, Altitude has deep relationships with legal and regulatory professionals, CEOs of cannabis companies, industry organizations, and consultants.
Tuatara
Tuatara is a sector-focused private equity firm dedicated to helping great companies realize their vision in the burgeoning cannabis industry.
Arcview Capital
The Arcview Group is a vertically integrated company servicing the cannabis and hemp industry, built with social justice and responsibility at its core. Arcview has been a trusted global leader for over ten years and nexus for investors, companies, entrepreneurs, and community, providing a broad spectrum of programs and services.
Casa Verde Capital
Casa Verde was one of the first funds established to focus on the cannabis industry. We believe this industry represents one of the most compelling investment opportunities of our generation. Since 2015, we’ve evaluated thousands of opportunities and invested in a select few. Our goal is to leverage our robust relationships to assist portfolio companies in solving complex issues facing this nascent market. Casa Verde can participate in all stages of the financing cycle, with a focus on investing in scalable, capital-efficient businesses, led by world-class entrepreneurs. Given the natural overlap across the value chain, our portfolio companies frequently work together to help solve operational issues and also create significant value for the businesses involved.
Poseidon
Poseidon is one of the oldest and most active private equity firms in the cannabis space. They invest in both private and public cannabis companies across various sectors, including technology, cultivation, and ancillary services.
Other Funding Strategies and Resources
Securing funding is a critical step for cannabis startups aiming to scale their operations and succeed in a competitive market. In addition to traditional venture capital, there are various alternative funding options, grant opportunities, and support programs that can provide valuable resources to cannabis entrepreneurs.
Alternative Funding Options
Crowdfunding: Crowdfunding platforms have become popular for cannabis startups to raise capital from many small investors. Sites like SeedInvest and StartEngine allow cannabis businesses to reach a broad audience and secure funding without relying solely on venture capitalists. These platforms allow startups to validate their business ideas and build a community of supporters.
Private Equity: Private equity firms are increasingly interested in the cannabis sector, recognizing the long-term growth potential. These firms provide substantial capital investments in exchange for equity stakes, often taking an active role in the company's strategic direction. Private equity can benefit established cannabis businesses looking to expand rapidly.
Strategic Partnerships: Forming strategic partnerships with established companies in related industries can provide funding and valuable resources. These partnerships can include joint ventures, co-branding opportunities, and supply chain collaborations. Such alliances can help cannabis startups leverage their partners' expertise and networks to accelerate growth.
Grant Opportunities
While federal grants for cannabis businesses are limited due to its classification as a Schedule I substance, several states and private organizations offer grants to support cannabis research and business development.
State Grants: Some states with legalized cannabis markets, like California and Colorado, offer grants to support cannabis research, social equity programs, and business development initiatives. For example, the California Cannabis Equity Grants Program provides funding to help individuals from communities disproportionately affected by the War on Drugs to enter the cannabis industry.
Examples:
California Cannabis Equity Grants Program
Overview: Administered by the Department of Cannabis Control and the Governor's Office of Business and Economic Development (GO-Biz), this program provides funding to support local jurisdictions in promoting social equity in the cannabis industry.
Eligibility: Designed to assist individuals from communities disproportionately affected by the War on Drugs.
Details: Grants can be used for technical assistance, loans, grants, and regulatory compliance support.
Colorado Cannabis Business Grant
Overview: This program provides grants to support innovative cannabis business models, focusing on social equity applicants.
Eligibility: Social equity licensees in Colorado, particularly those who demonstrate a commitment to creating jobs and supporting community development.
Details: Grants can be used for business development, regulatory compliance, and operational support.
Massachusetts Social Equity Program
Overview: The Massachusetts Cannabis Control Commission offers grants to help entrepreneurs from communities disproportionately impacted by previous marijuana prohibition.
Eligibility: Applicants must meet specific social equity criteria outlined by the state.
Details: Funding is available for business training, technical assistance, and startup capital.
Private Grants: Organizations like the Minority Cannabis Business Association (MCBA) and private foundations also offer grants to support diversity and inclusion within the cannabis industry. These grants aim to reduce barriers to entry and provide resources to underrepresented groups.
Example:
Minority Cannabis Business Association (MCBA) Grants
Overview: MCBA provides grants to minority-owned cannabis businesses to promote diversity and inclusion within the industry.
Eligibility: Minority-owned cannabis businesses with a focus on social equity.
Details: Grants can be used for business development, marketing, and operational expenses.
What Do Cannabis Investors Want to See in a Potential Investment?
Finding the right investors to pitch to is a small part, yet crucial, part of a fundraise. Before building a list of potential investors, founders need to understand what potential investors are looking for in an investment. Check out a few of the most common attributes cannabis VCs look for below:
ROI Potential
A VC fund’s job is to generate returns for its investors (LPs). In order to do this, they need to build a portfolio that has the ability to generate outsized returns. This means that VCs are looking for portfolio companies that have huge ROI potential and can return the fund to their investors.
Related Resource: A Quick Overview on VC Fund Structure
Scalability
Going hand in hand with ROI potential is the potential for scalability. By having a clear vision for scalability and growth, startups can stand out in the eyes of investors. The potential for growth is a signal to investors that they have the ability to generate huge returns.
High Barriers to Entry
Another aspect potential investors look for in a potential investment are barriers to entry. In competitive spaces, like the cannabis industry, investors want to see portfolio companies that have built high barriers to compete and take their market share.
Branding and Vision
Investors will also want to see strong branding and vision from a cannabis startup. This is relevant for any startup but especially important for consumer-facing cannabis startups.
Related Resources: Private Equity vs Venture Capital: Critical Differences
Find Cannabis Venture Capital Investors with Visible
As we mentioned above, finding the right investors to pitch to for a fundraise is crucial to success. Founders need to make sure they are spending their time on the right investors. In order to best help founders filter and find the right investors for their business we built Visible Connect, our free investor database. Give Visible Connect a try here.
View here a filtered list of cannabis-based VCs or check out over 18,000 other global VCs at Visible Connect.
Related Resources:
10 Angel Investors to Know in Los Angeles
The Understandable Guide to Startup Funding Stages
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Fundraising
8 Cannabis Startups With High Growth Potential
The cannabis industry is experiencing explosive growth following legalization across various regions. Startups are redefining how cannabis businesses operate by introducing innovative solutions to streamline supply chains, improve retail management, and enhance consumer products. Companies like LeafLink have revolutionized B2B cannabis commerce, while firms like Dutchie, Pax Labs, and others bring advanced e-commerce and retail management platforms to the fore. With robust investor backing and increasing acceptance, these startups are spearheading a new era of cannabis entrepreneurship, creating opportunities for founders, cultivators, and investors alike.
Related resource: 12+ Cannabis Venture Capital Investors to Know in 2024
1) LeafLink
LeafLink is a pioneering startup in the cannabis industry, providing a wholesale marketplace that connects retailers with over 1,800 cannabis brands and distributors. This platform facilitates streamlined business operations, making it easier for companies to manage orders and grow their businesses efficiently.
Headquarters Location: LeafLink is based in New York City, with additional regional hubs in Los Angeles and Austin. As a remote-first company, it also boasts a broad presence across the United States, ensuring accessibility and connectivity in various cannabis markets.
Current Funding: LeafLink has raised substantial funding to fuel its growth, including a $40 million Series C round led by Founders Fund, reflecting significant investor confidence. Overall, the company has secured a total of $479M in funding over 9 rounds. Their latest funding was raised on Feb 1, 2023 from a Series D round.
Years in Operation: LeafLink was founded in 2015, during which it has significantly impacted the cannabis supply chain and B2B commerce.
Founders: Ryan G. Smith serves as the CEO, and Zach Silverman is the Co-Founder and Senior Advisor of LeafLink. They founded the company with the vision of simplifying the cannabis supply chain, leveraging their backgrounds in technology and e-commerce to pioneer new standards in the industry.
2) Dutchie
Dutchie is a prominent player in the cannabis industry, providing an integrated technology platform that powers online ordering for cannabis dispensaries. It helps dispensaries create and manage their websites, process orders, and ensure efficient operations through its suite of e-commerce and point of sale solutions.
Headquarters Location: Dutchie is headquartered in Bend, Oregon, which is also where it was founded. This location supports its operations across the United States and Canada.
Current Funding: Dutchie has raised significant funding, totaling $603 million. This includes a substantial $350 million in a Series D round that valued the company at $3.75 billion, highlighting the strong investor confidence in its business model and growth potential.
Years in Operation: Founded in 201, Dutchie has quickly become a leader in its field, experiencing rapid growth and expansion.
Founders: Founded by brothers Ross Lipson and Zach Lipson. Both no longer run the company.
3) Pax Labs, Inc
Pax, originally known as Ploom, is a leader in the vaporization industry, specializing in the development and manufacturing of premium vaporizers for cannabis and nicotine. These devices are known for their sleek design and smart technology, allowing connectivity with mobile devices for enhanced user experience.
Headquarters Location: Pax Labs is based in San Francisco, California.
Current Funding: The company has raised significant funds, notably securing $492.2 million in funding over 4 rounds, reflecting a strong investor confidence in its technology and market approach.
Years in Operation: Pax Labs was founded in 2007 and has been operational for over a decade, evolving its product line and expanding its market reach during this time.
Founders: The company was founded by James Monsees and Adam Bowen, who aimed to innovate and improve the personal vaporization market. Neither is still with the company.
4) Green Thumb Industries
Green Thumb Industries (GTI) operates as a national cannabis consumer packaged goods company and retailer. The company is known for manufacturing and distributing a diverse portfolio of branded cannabis products such as &Shine, Beboe, Dogwalkers, Doctor Solomon’s, Good Green, incredibles, and RYTHM. Additionally, GTI owns and operates a rapidly growing chain of national retail cannabis stores named RISE.
Headquarters Location: Green Thumb Industries is headquartered in Chicago, Illinois.
Current Funding: Green Thumb Industries has raised a total of $79.2M in funding over 4 rounds. Their latest funding was raised on Apr 30, 2021 from a Post-IPO Equity round.
Years in Operation: Green Thumb Industries was founded in 2014 and has since grown into a significant player in the cannabis industry in the United States.
Founders: The company was founded by Ben Kovler who serves as the CEO, Chairman, and key visionary behind the company's growth and strategic direction.
5) FlowHub
Flowhub is a Denver-based cannabis technology company that specializes in compliance, inventory management, and point-of-sale (POS) software solutions designed specifically for the cannabis industry. Their platform aims to streamline dispensary operations, making regulatory compliance easier and improving the overall efficiency of cannabis retail management.
Headquarters Location: Flowhub is headquartered in Denver, Colorado.
Current Funding: Flowhub has raised significant funding over the years totalling $45.8M over 4 rounds.
Years in Operation: Founded in 2015, Flowhub has been operational for several years, focusing on providing technological solutions to cannabis dispensaries to help them navigate the complex regulatory environment.
Founders: Kyle Sherman is the founder of Flowhub. He started the company with the vision to create a more efficient and compliant cannabis retail environment through innovative technology.
6) Tokyo Smoke
Tokyo Smoke is a lifestyle brand and cannabis retailer focused on creating an immersive experience centered around cannabis, coffee, and clothing. Their vision aims to shape a sophisticated and inclusive brand that transcends typical cannabis culture.
Headquarters: Located in Toronto, Canada.
Founding Year: Established in 2015.
Founders: Founder and Chairman Lorne Gertner and Co-founder and CEO Alan Gertner.
Funding: Raised $7.7 million over 2 rounds, the last closing in October, 2017 in a series B round.
Ownership: Acquired by OEG Retail Cannabis in 2023, which expanded the brand's reach and capabilities.
7) Jushi Holdings
Jushi Holdings Inc. is a multi-state cannabis operator involved in the retail, cultivation, manufacturing, and processing of cannabis products in both medical and adult-use markets. The company is dedicated to building a diverse portfolio through strategic acquisitions and investments in the cannabis sector.
Headquarters Location: Boca Raton, Florida, USA.
Current Funding: Jushi has raised a total of $490.5M in funding over 12 rounds. Their latest funding was raised on Apr 6, 2023 from a Post-IPO Debt round.
Years in Operation: Founded in 2007.
Founders: Erich Mauff, Jim Cacioppo, and Jon Barack.
8) Cannabist Company
The Cannabist Company, previously known as Columbia Care,stands out as a leading cultivator, manufacturer, and retailer of cannabis products and services in the United States. As one of the initial medical cannabis providers in the country, it established a patient-focused operation that has successfully transitioned into a dominant player in the adult-use market. Their product portfolio includes various forms such as flower, oils, edibles, and tablets. Notably, they are the producers behind popular brands like Classix, Seed & Strain, and Hedy.
Headquarters Location: The company is based in Chelmsford, Massachusetts.
Current Funding: They have raised a total of $530.6M in funding over 9 rounds. Their latest funding was raised in Marxh, 2024 from a Post-IPO Debt round.
Years in Operation: The Cannabist Company has been operational since 2012.
Founders: The company was co-founded by Nicholas Vita and Michael Abbott.
Connect With Cannabis Investors Today
In the rapidly evolving cannabis industry, startups are leveraging technology to streamline operations and expand their reach. Companies like the ones we covered, among others, are pioneering new standards in retail management, supply chain efficiency, and customer experience. As these innovative companies continue to grow, investment opportunities in the cannabis sector have become increasingly attractive to venture capitalists.
To effectively manage your fundraise from start to finish, showcase your business's value, track progress, and manage relationships with Visible. Give it a free try for 14 days here.
Find investors at the top of your funnel with our free investor database, Visible Connect, also check out our pre-filtered list of cannabis VCs here.
Some Cannabis VCs from our database include KEY Investment Partners, Entourage Effect Capital, and HALLEY Venture Partners.
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.
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The Femtech Frontier: Opportunities in Women's Health Technology + the VCs Investing
As a femtech founder navigating the ever-evolving landscape of women-specific health solutions, I find it crucial to understand the industry's breadth and the opportunities it presents. As the market continues to expand, driven by innovation and a more profound societal recognition of these needs, understanding the current trends, market size, and potential gaps is essential for anyone looking to make a significant impact in this space.
Understanding the Femtech Landscape
Femtech encompasses a broad spectrum of software, diagnostics, products, and services designed specifically to address women’s health issues. This sector includes solutions for female-specific health concerns such as fertility, birth control, menstruation and period care, menopause, chronic conditions and hormonal disorders, pelvic health, pregnancy and post-pregnancy care, breastfeeding, and sexual wellness. Moreover, femtech also extends into emerging health spaces that recognize gender-specific healthcare needs, encompassing wellness and mental health areas such as osteoporosis, breast cancer, autoimmune conditions, stroke, thyroid issues, chronic fatigue, anxiety, and depression. Beyond physical and mental health, femtech products increasingly empower women in areas traditionally underserved by technology, including personal finance and education.
Evolution of the Industry
The femtech industry began to gain prominence in the early 2010s as entrepreneurs and investors realized the significant underserved market in women's health technology. Initially focusing on reproductive health and period-tracking apps, the sector has since expanded into a wide range of health categories and now includes sophisticated diagnostic tools, telehealth services, and personalized wellness products. This evolution reflects a broader societal shift towards more open conversations about women's health issues and a growing recognition of the economic potential of addressing these needs.
Current Market Size and Projected Growth
The femtech industry has seen explosive growth over the past decade. As of recent estimates, the global femtech market is valued at several billion dollars and is projected to grow substantially as the demand for women-specific health solutions continues to increase. This growth is driven by technological advancements, increasing female healthcare consumerism, and a rising number of women in STEM fields who are poised to innovate and lead in this space.
Key Areas of Innovation
Reproductive Health and Fertility: Innovations include apps and devices that improve fertility tracking, in vitro fertilization (IVF) technologies, and non-invasive pregnancy monitoring tools.
Menstrual Health: Advanced menstrual products that go beyond traditional offerings, smart menstrual cups, and wearable technologies are transforming menstrual health management.
Menopause Solutions: With an aging population, digital therapeutics, hormone replacement therapies, and lifestyle management apps specifically for menopause are increasing.
Chronic Conditions and Hormonal Disorders: Technologies aimed at managing conditions like polycystic ovary syndrome (PCOS) and endometriosis through better diagnostics and personalized treatments.
Mental Health: Platforms focusing on mental health issues prevalent in women, such as postpartum depression, anxiety, and the psychological aspects of chronic health issues.
Femtech Industry Trends and Opportunities
The femtech sector has been characterized by several prominent trends highlighting the current momentum and the industry's future potential. A growing focus on personalized healthcare has propelled the development of bespoke femtech solutions that cater to individual health needs. There is also an increasing crossover between wellness and healthcare, where apps and devices integrate preventive care with daily wellness routines, reflecting a holistic approach to women's health. Expanding community-based platforms has also fostered a supportive network where users share experiences and advice, enhancing user engagement and retention.
Emerging Technologies and Their Potential Impact
Artificial Intelligence (AI): AI is revolutionizing femtech by enabling more accurate diagnostics and predictive analytics. AI-driven platforms can analyze vast amounts of data to predict health trends, personalize healthcare recommendations, and optimize treatment plans.
Telehealth: The pandemic accelerated the adoption of telehealth in femtech. This technology provides women with remote access to healthcare professionals for a variety of issues, from fertility consultations to mental health support. It is crucial to make healthcare more accessible, especially in underserved areas.
Wearable Devices: Wearables have evolved from fitness tracking to sophisticated health monitoring tools. In femtech, wearable devices now track menstrual cycles, monitor pregnancy, and even detect early signs of breast cancer, offering continuous, real-time health monitoring.
Examples of Successful Femtech Companies
Clue: A leading menstrual health app that uses data to predict menstrual cycles and offer insights into reproductive health. Clue has set a high standard for privacy and scientific accuracy, making it a trusted tool for millions of women globally.
Elvie: Known for its innovative breast pumps and pelvic floor trainers, Elvie combines sleek, discreet designs with powerful, smart technology, significantly improving women's lives post-pregnancy and beyond.
Tia: This company offers a holistic healthcare approach for women by integrating virtual and in-person care, focusing on everything from gynecology to mental health, embodying the integrated care model that is becoming a trend in femtech.
Potential Gaps in the Market and Opportunities for Innovation
Despite the advancements, several areas within femtech still lack adequate solutions, presenting opportunities for innovation:
Menopause Management: There is a noticeable gap in products addressing the full spectrum of menopause symptoms. Innovations in hormone replacement therapy delivery or non-hormonal symptom management can meet significant demand.
Health Issues in Aging Women: Conditions like osteoporosis and cardiovascular health in post-menopausal women are underrepresented in current femtech products.
Mental Health: While some platforms address postpartum depression, broader mental health issues linked to hormonal changes throughout a woman's life cycle are still underserved.
Global Accessibility: Many femtech products are not readily available or affordable globally, especially in developing countries. Creating scalable solutions that are both accessible and culturally sensitive could expand the reach of femtech significantly.
Fundraising Strategies for Femtech Startups
Fundraising in the femtech sector has evolved significantly over the past decade, with more investors recognizing the potential of women-centric health solutions. Increasing awareness and successful exits are driving more interest from venture capitalists, angel investors, and strategic partners. Notably, the unique nature of femtech, which combines technology, healthcare, and direct-to-consumer elements, appeals to a diverse group of investors looking to impact women's health globally.
What Investors are Looking for in Femtech Startups
Investors interested in femtech are particularly keen on startups that:
Address a Clear Unmet Need: Products that solve a real and significant problem in women’s health are more likely to attract attention.
Have a Scalable Business Model: Investors look for companies with the potential to grow quickly and sustainably.
Show Strong Founder Expertise: Teams with backgrounds in healthcare, technology, and business, or with personal experiences that motivate their vision, are often more compelling.
Demonstrate Technological Innovation: Startups that leverage new technologies to improve outcomes, efficiency, or user experiences stand out in the fundraising process.
Provide Evidence-Based Solutions: Given the health-focused nature of femtech, products backed by scientific research and data are more likely to gain investor confidence.
Related resource: The Rise of Women-Led VC Firms (+ a List to Keep an Eye on)
Crafting a Compelling Pitch
Articulate the Problem and Your Unique Solution: Clearly define the specific women's health issue your product addresses and how your solution is different from or better than existing offerings.
Highlight the Market Potential: Use data to demonstrate the size of the market and your target demographic. Show how your product fits into the broader health and wellness industry trends.
Showcase Your Team’s Expertise: Emphasize the qualifications and experiences of your team that make you the right people to execute this vision.
Provide Proof of Concept: Whether through initial sales data, user testimonials, or clinical trials, show that there is a demand for your product and that it works.
Discuss Your Business Model: Explain how you will generate revenue, your pricing strategy, and your marketing approach. Be clear about how you intend to scale.
Outline the Use of Funds: Be specific about how much money you need and how you plan to use it to grow your business.
Related resource: 10+ VCs & Accelerators Investing in Underrepresented Founders
VCs and Accelerators Investing in Femtech Startups 2024
FemTech Lab
Location: London, England
About: Unlocking Women's health and wellness for a fairer, better World. Join the movement! FemTech Lab is a global ecosystem of 20,000+ founders, investors, corporate partners, biotech and research, hospitals, pharmaceuticals, government, and retail leaders innovating across all women's health and wellness subsectors. The FemTech Lab Accelerator program has supported 70+ inspiring startups in women's health. If you are interested in applying, check out the timing of the next cohort on our website and sign up for the next open webinar.
Goddess Gaia Ventures
Location: London, GB
About: A female founded pre series A fund (in building mode) investing in 360 solutions in female health, wellness and Femtech in a + $1 Trillion TAM which has to date been under-served, under-researched and under-funded . Mission Statement: To grow the next generation of Women’s healthcare unicorns We invest in: UK, Europe, Greater Europe and Israel and scaling these companies into the US We partner with: Founders (male and female) seeking to invent new market categories or who are seeking to disrupt incumbent healthcare markets Exponential Sector Growth: Increase of women in STEM and Finance; innovating for themselves Special Interest: Solutions that cater to the health of women of colour and that create healthcare parity
Thesis: Goddess Gaia Ventures (GGV) is capitalising on the $1.1 trillion women’s healthcare market by investing in five core pillars - women's fertility; women's cancer; women's wellness; women's lifestyle diseases and Femtech products and services.
Amboy Street Ventures
Location: Los Angeles, California, United States
About: The world’s first venture capital fund focused on Sexual Health & Women’s Health Technology startups. Amboy Street Ventures is an active investor and adds value above and beyond capital. Its dedicated Value Enhancement Team supports portfolio companies with marketing & branding, sales & distribution, product development & scientific innovation and public education resources through its position within the Healthy Pleasure Group, an ecosystem dedicated to solving the problems that startups face in the Sexual Health and Women’s Health Tech market.
Thesis: Amboy Street Ventures invests in the Seed and Series A rounds of Sexual Health & Women’s Health Technology startups that are progressing the industry in America and Europe.
Astarte Ventures
Location: New Jersey, United States
About: Astarte Ventures is an innovation and investment consulting firm, with expertise in women's health, pediatrics, health equity, AI, and gut health.
Thesis: Investing to improve the health and wellbeing of women and children.
Avestria Ventures
Location: San Francisco, California
About: Avestria Ventures is an investment firm that focuses on women's health and female-led life science and healthcare companies.
Thesis: We invest in women’s health and life science; it’s what we know best.
Everywhere Ventures
Location: New York, United States
About: Global pre-seed fund backed by 500 founders and operators.
Thesis: We invest $50-250k into pre-seed companies looking to raise between $500-$2M. We are happy to lead or partner with other investors. We are generalists at heart, but lean into three core areas: money, health, and work. We embrace first-time founders, and founders who may lack traction but have a distinct vision for a world that may not exist…yet.
Emmeline Ventures
Location: Los Angeles, CA
About: Emmeline Ventures is a female-founded early-stage fund investing in ambitious female founders building businesses that are helping women, in particular, manage their health, build their wealth, and live in a cleaner, safer world.
Thesis: We invest across women's health, financial services, and sustainability specifically where breakout technology and innovaton is helping women live & thrive.
Resources for Femtech Founders
Deloitte’s Femtech: Poised for growth
List of 150+ VC Funds Investing in Women's Health and Femtech
Crunchbase’s The femtech market map
Crunchbase’s The Next Frontier Of Femtech
Connect Investor Database list of VCs investing in Femtech
Start Your Next Round with Visible
We believe great outcomes happen when founders forge relationships with investors and potential investors. We created our Connect Investor Database to help you in the first step of this journey.
Instead of wasting time trying to figure out investor fit and profile for their given stage and industry, we created filters allowing you to find VC’s and accelerators who are looking to invest in companies like you. Check out all our investors here and filter as needed.
After learning more about them with the profile information and resources given you can reach out to them with a tailored email. To help craft that first email check out 5 Strategies for Cold Emailing Potential Investors.
After finding the right Investor you can create a personalized investor database with Visible. Combine qualified investors from Visible Connect with your own investor lists to share targeted Updates, decks, and dashboards. Start your free trial here.
founders
Fundraising
Investor Agreement Template for Startup Founders
Navigating the complexities of investor agreements is crucial for startup founders aiming to secure crucial funding while protecting their interests. This article will guide you through the essentials of crafting a solid investor agreement, highlighting key components like investment terms, company valuation, and exit strategies. You'll learn not only what makes up an investor agreement but also how to tailor one to fit your startup's unique needs, ensuring a clear path to successful investor relationships.
What Is an Investor Agreement?
An investor agreement is a legal contract between an investor and a company that outlines the terms of the investment. It specifies the roles, expectations, and obligations of both parties, ensuring that the investor's financial contributions are protected and that the company uses the funds as agreed upon. There are several types of investor agreements commonly used in business, each tailored to different investment scenarios:
Stock Purchase Agreement: This type of agreement is used when investors purchase shares directly from the company, giving them ownership according to the percentage of stock acquired.
Convertible Note Agreement: Often used in early-stage startups, this agreement allows the investment to initially be a loan that converts into equity, usually after a subsequent financing round or under certain conditions outlined in the agreement.
Simple Agreement for Future Equity (SAFE): Popular among startups for its simplicity and flexibility, a SAFE grants investors the right to convert their investment into equity at a later date, typically during a future funding round.
Restricted Stock Agreement: This agreement governs the issuance of shares that are subject to certain restrictions, typically vesting over time and providing that shares must be sold back to the company under certain conditions.
Debt Agreement: When startups prefer not to give up equity, they might opt for debt agreements where the investor lends money to the business, to be repaid with interest by a specified date.
Each type of agreement has its nuances and must be chosen carefully based on the company’s specific needs and the investor's expectations. It’s crucial for founders to understand these distinctions to choose the most appropriate form of agreement for their circumstances.
Key Components of an Investor Agreement Template
When structuring an investor agreement, it's essential to include comprehensive and detailed sections that address every aspect of the investment relationship. This clarity not only safeguards both parties' interests but also ensures smooth cooperation throughout the duration of the agreement. Below, we delve into the key components that should be part of any investor agreement template, each playing a crucial role in fostering a transparent and effective partnership.
Related resource: A Complete Guide on Founders Agreements
1. Preliminary Information
The foundation of any investor agreement begins with the preliminary information, which includes all the basic and identifying details such as the names, addresses, and legal statuses of the parties involved, as well as the date of the agreement. This section sets the legal context for the agreement and acts as a reference point for all parties involved, ensuring there is no ambiguity about who is bound by the terms of the document.
2. Investment Details
Specifying the investment details is critical. This includes the amount of investment, the form it will take (whether cash, assets, or services), and any conditions or milestones that must be met before the investment is realized. Clear articulation of these details prevents misunderstandings and sets clear expectations for the deployment of the investment, which is vital for both parties’ financial planning and accountability.
3. Company Valuation and Capital Structure
It's important to clearly outline how the company is valued and how its capital structure will be affected post-investment. This information sets the stage for determining ownership percentages and the distribution of equity. Transparency in this area reassures investors about the basis of their investment valuation and aligns all parties’ expectations regarding their stakes.
4. Roles and Responsibilities
Defining the specific roles and responsibilities of both the investor and the startup is crucial for maintaining clear expectations and accountability. This section should detail the commitments of each party, including any operational roles the investor might assume, and their involvement in decision-making processes. Clarity here ensures smooth day-to-day operations and helps prevent conflicts.
5. Terms of Investment
The terms of investment outline the specifics of the financial relationship, such as the rights to dividends, conversion rights, and voting rights. This section is fundamental as it delineates how profits and losses are distributed, how and when investments might be converted into equity, and how investors can influence company decisions through their votes.
6. Governance and Voting Rights
Governance structures and voting rights are essential for outlining how decisions are made within the company, who gets to vote, and what issues require a vote. This framework is key to maintaining order and clarity in the company's decision-making processes, particularly in scenarios involving multiple investors with varying stakes.
7. Exit Strategies
Planning for future changes in ownership or the potential exit from the company is crucial. This part of the agreement might include buyback rights, rights of first refusal in case of sale, and other mechanisms that allow for a smooth transition or exit. Having these strategies predefined helps manage expectations and reduces potential conflicts during critical transitions.
8. Confidentiality and Non-Disclosure
To protect the sensitive information of both the startup and the investor, confidentiality and non-disclosure clauses are critical. These provisions help build trust, protect trade secrets, and ensure that strategic information does not fall into competitors' hands.
9. Dispute Resolution
Finally, having a predetermined method for resolving disputes is crucial for handling disagreements efficiently and fairly. This section should specify whether disputes will be handled through mediation, arbitration, or court proceedings, and outline the steps each party should follow in the event of a disagreement.
Related resource: What Should be in a Startup’s Data Room?
How Do You Write an Investor Agreement?
Drafting an investor agreement is a critical step for any startup engaging with investors. This document not only formalizes the relationship between a company and its investors but also ensures that both parties are clear on the terms of the investment. Below, we detail the essential steps involved in creating a robust investor agreement that secures interests and fosters a positive business relationship.
Gathering Information and Structuring the Agreement
The first step in drafting an investor agreement is to collect all necessary information about the investment and the parties involved. This includes details about the investment amount, the structure of the investment (e.g., equity, debt), and the specific roles and obligations of each party. Accurate and comprehensive information is crucial as it forms the basis of the agreement, ensuring that all terms are based on a clear understanding of the investment and the expectations of both parties. This foundational step prevents future misunderstandings and lays the groundwork for a solid legal agreement.
Involving the Right Parties
It is essential to identify and involve all relevant parties in the agreement process. This includes not only the investors and company founders but also may include lawyers, accountants, and other stakeholders who have a vested interest in the transaction. Ensuring that all parties are appropriately represented and that their roles and expectations are clearly defined from the outset is crucial. This clarity helps in avoiding conflicts later and ensures that the agreement reflects the interests and responsibilities of everyone involved.
Drafting Key Clauses
The heart of the investor agreement lies in its clauses, which detail the terms of the investment, rights, and obligations of the involved parties. Key clauses include those related to the amount and structure of the investment, conditions for funding, management and use of the investment, investor rights, and any specific covenants related to company governance. Each clause must be drafted with clarity and precision to avoid ambiguity and ensure that the terms are enforceable. Legal expertise is often required in this phase to ensure that the clauses are legally sound and adequately reflect the agreed-upon terms.
Negotiation and Finalization
Once a draft of the investor agreement is prepared, the negotiation phase begins. During this stage, both parties review the draft, suggest modifications, and discuss any concerns they might have with the proposed terms. This phase is crucial as it allows both sides to refine the agreement to better meet their needs and to ensure mutual understanding and satisfaction with the terms. After negotiations are completed, the final agreement is prepared for signing. It is advisable for both parties to have legal counsel review the final document to ensure that it is comprehensive and legally binding.
Related resource: The Startup's Handbook to SAFE: Simplifying Future Equity Agreements
Build Strong Investor Connections with Visible
Crafting a solid investor agreement is key to protecting the interests of both the startup and its investors. Establishing clear terms and open lines of communication from the outset can significantly enhance these critical business relationships.
To manage and enhance investor relations with ease and efficiency, try Visible. By using Visible, you can streamline investor communications, track important metrics, and report progress efficiently, keeping your investors engaged and informed. Ready to take your investor relations to the next level?
Try Visible free for 14 days and start strengthening your investor connections.
founders
Fundraising
Understanding The 4 Types of Crowdfunding
Crowdfunding has revolutionized the way startups and social initiatives gather the necessary funds to bring their ideas to life. This article will explore the intricacies of crowdfunding, delving into its various types and the unique benefits and challenges they present. Whether you're a founder looking to kickstart your project or simply curious about how crowdfunding could play a role in your financial strategy, read on to discover the ins and outs of this dynamic funding mechanism.
What Is Crowdfunding, and Why Is It Important?
Crowdfunding is a method of raising capital through the collective effort of friends, family, customers, and individual investors. This approach taps into the collective efforts of a large pool of individuals—primarily online via social media and crowdfunding platforms—and leverages their networks for greater reach and exposure. Crowdfunding is vital not only as a tool for gathering financial resources but also for validating a product or service in the market, engaging with customers, and building community support.
Three of the most popular crowdfunding platforms include:
Kickstarter- The platform operates on an all-or-nothing funding model, which means that project creators only receive funds if their campaign reaches its predetermined funding goal. This model encourages creators and founders to set realistic goals and actively promote their projects to ensure success.
Indiegogo- Known for its flexibility, it supports a wide range of campaigns from tech innovations to artistic endeavors. The platform is distinct for allowing both fixed and flexible funding goals, making it a versatile choice for project creators who may still benefit from partial funding if they do not meet their full target.
Patreon- Patreon stands out among crowdfunding platforms because it caters to creators seeking continuous funding rather than one-time project support. This makes it particularly popular with individuals involved in ongoing creative endeavors such as musicians, YouTubers, podcasters, and filmmakers.
Related resource: How to Raise Crowdfunding with Cheryl Campos of Republic
The Pros and Cons of Crowdfunding
Crowdfunding offers unique opportunities and benefits for startups and projects, but it also comes with its set of challenges. In the next section, we will delve into the pros and cons of crowdfunding, providing a balanced perspective that will help founders understand what to expect and how to prepare for a successful campaign.
Pros of Crowdfunding
Pre-Launch Interest and Momentum: Crowdfunding allows founders to generate buzz and interest in a product or service before it officially launches. This pre-launch momentum can be crucial in establishing a brand and ensuring a successful market entry.
Market Validation: Crowdfunding campaigns allow investors to gauge customer interest and validate the market demand for a product or service before it fully hits the market. This can reduce the financial risks associated with launching new and untested products.
Risk Reduction through Pre-Sales: By using crowdfunding platforms to pre-sell products, founders can reduce financial risks associated with production and inventory. This approach ensures that there is a market demand before significant investments are made.
Marketing and Publicity: Crowdfunding campaigns can serve as powerful marketing tools, providing significant media exposure and public attention that can continue to benefit the project long after the campaign has ended.
Direct Customer Feedback: Crowdfunding offers a unique opportunity for founders to receive direct feedback from early adopters. This feedback can be invaluable for making adjustments to the product or service before it hits the broader market.
Building a Loyal Community: Crowdfunding not only raises funds but also helps in building a community of supporters who are emotionally and financially invested in the success of the project. This community can become a vital asset for future promotions and continued business growth.
Access to Capital: Crowdfunding provides a platform to raise significant amounts of money without the need for traditional financial intermediaries such as banks or venture capital firms. This can be especially useful for startups and small businesses that may not have access to traditional funding sources.
Cons of Crowdfunding
High Competition: The popularity of crowdfunding platforms means that numerous projects are vying for the same pool of potential backers. Standing out among the crowd requires a compelling story and effective marketing strategies, which can be challenging and resource-intensive.
Fulfillment Pressures: Successfully funded projects face the pressure of fulfilling backers' rewards and expectations. This can be particularly challenging if the campaign goes viral and the number of backers exceeds initial forecasts, complicating logistics and potentially increasing costs.
All-or-nothing Funding Models: Many crowdfunding platforms operate on an all-or-nothing funding model, where you must reach your funding goal to receive any money. Falling short means no funding at all, which can be a significant risk if you've already invested in campaign marketing and product development.
Public Exposure of Ideas: When you pitch a project on a crowdfunding platform, you expose your business idea or concept to the public, which includes potential competitors. This can lead to issues if the intellectual property is not fully protected or if the concept is easily replicable.
Related resource: Pros and Cons of Crowdfunding for Your Startup
The 4 Different Types of Crowdfunding
As you explore the world of crowdfunding, it's essential to understand the different types that are available. Each type offers unique advantages and fits different kinds of projects and goals. Below, we delve into the four primary types of crowdfunding: donation-based, equity-based, rewards-based, and debt-based. Choosing the right one can be critical to your campaign’s success.
Related resource: 6 Types of Investors Startup Founders Need to Know About
1) Donation-Based Crowdfunding
Donation-based crowdfunding is exactly what it sounds like – backers donate money without expecting anything in return. This model is primarily used for charitable causes or community projects where the reward is the satisfaction of contributing to a good cause.
When to Use This Method of Crowdfunding
This method is ideal for non-profit organizations, social causes, or community projects where monetary return isn't an expectation. It's particularly effective when the audience is motivated by philanthropy rather than a tangible return.
2) Equity-Based Crowdfunding
Equity-based crowdfunding involves offering a stake in your company in exchange for capital. This means investors receive shares of your business and become partial owners. It’s a way to raise significant funds while distributing the financial risk among a group of investors.
When to Use This Method of Crowdfunding
Use equity-based crowdfunding when you need substantial capital and are comfortable sharing ownership of your company with investors. It is suitable for startups that expect to grow and generate significant revenue, making the equity stake potentially valuable.
3) Rewards-Based Crowdfunding
Rewards-based crowdfunding allows backers to contribute in exchange for tangible rewards, which can vary from the product itself to other unique perks. This type is popular among creative projects and startups that wish to offer their product as a pre-sale.
When to Use This Method of Crowdfunding
This method works best for consumer-focused projects where you can offer your product as a reward to backers. It's suitable for validating product demand before mass production and engaging with your customers directly.
4) Debt-Based Crowdfunding
Also known as peer-to-peer (P2P) lending, debt-based crowdfunding allows individuals to lend money to a project or business with the expectation of getting their money back with interest. It mirrors traditional loans but from multiple lenders at potentially more favorable terms.
When to Use This Method of Crowdfunding
Debt-based crowdfunding is appropriate for founders who need traditional loan conditions but prefer a broader base of lenders to minimize risk. It is also beneficial when founders can ensure a steady revenue stream to manage repayments.
Crowdfunding vs Traditional Fundraising: What are the Differences?
Crowdfunding and traditional fundraising serve the same primary purpose—raising money—but differ significantly in their approach and execution. Traditional fundraising typically involves seeking substantial sums from a few donors, such as angel investors, venture capitalists, or banks, and often requires a detailed business plan, credit checks, or proven business history. It can be a lengthy process with a lot of personal interaction and persuasion.
In contrast, crowdfunding is usually conducted online and aims to gather smaller amounts of money from a large number of people. This method leverages the power of social networks and is accessible to anyone with an internet connection. Crowdfunding campaigns provide immediate feedback and market validation, as they allow the entrepreneur to gauge interest in a product or concept before fully committing to production or scaling. Moreover, crowdfunding can offer more than just financial benefits; it can also provide publicity, community engagement, and customer feedback.
These fundamental differences make each method suitable for different types of projects and funding needs, with crowdfunding often being more accessible and engaging, while traditional fundraising can offer more significant amounts of capital and potentially fewer stakeholders to manage.
Related resource: How to Secure Financing With a Bulletproof Startup Fundraising Strategy
Fundraise the Right Way With the Help of Visible
Crowdfunding not only helps raise the necessary funds for your venture but also connects you with a community that can offer support and feedback.
If you are also interested in finding traditional investors and accelerators check out our Connect Investor Database. Instead of wasting time trying to figure out investor fit and profile for their given stage and industry, we created filters allowing you to find VCs and accelerators who are looking to invest in companies like you. Check out all our investors here and filter as needed.
As you embark on your fundraising journey, consider leveraging platforms like Visible to streamline your efforts.
After finding the right Investor you can create a personalized investor database with Visible. Combine qualified investors from Visible Connect with your own investor lists to share targeted Updates, decks, and dashboards. Start your free trial here.
founders
Fundraising
FinTech Venture Capital Investors to Know in 2024
The last few years have been interesting for Fintech as we've seen both startups and established companies start to rethink the financial industry in order to adapt to a world that was rapidly changing thanks to crypto, blockchain, and the pandemic.
Related resource: 14 FinTech Startups Shaping the Future of Finance
Relevant trends from the past few years include:
A surge in investments and interest in crypto and blockchain
Financial services and products broadened as more partnerships were created thanks to embedded banking
A shift from legacy infrastructures to core banking systems
Fintech’s reach expanded to regions of the world that needed it most due to broken financial systems such as Southeast Asia, Africa, and Latin America
There was a focus on innovation and global opportunities from VC’s and companies who are looking to take advantage of the increasing need for change within the Fintech industry
Recent Investment highlights: (source)
“Record number of fintech deals drives total investment to $210 billion in 2021”
“Blockbuster year for crypto and blockchain, with $30 billion in investment globally”
“‘Buy now, pay later’ space seeing large deals across jurisdictions”
“Increasing focus on core banking replacements”
“PE investment in fintech space more than doubles previous high”
What we can take away from this is that fintech is emerging to be the leading sector within investments and 2022 will be a year of increased optimism and interest not only within Fintech but subsectors (such as Defi), which are well positioned to keep evolving and make a huge impact on the world and the financial system as we know it. There is a huge need for modernizing core banking platforms and even replacing banking systems- making it the best time to launch a fintech startup as well as invest in one.
TechCrunch conducted interviews with some of the top VCs within the fintech space and said the two biggest topics that are spiking the interest of investors are crypto and Latin America investments. Others have said that there is also an increasing interest in B2B payments, BNPL (buy now, pay later platforms), embedded services (embedded lending, embedded insurance and embedded capital markets businesses- source).
KPMG’s top predictions for the fintech market globally in 2022: (Source)
A growing number of banks will offer embedded solutions
There will be increased regulatory scrutiny of embedded finance offerings
Fintechs will focus on branding themselves as data organizations
ESG-focused fintechs will have a big growth trajectory
There will be a stronger focus on dealmaking in underdeveloped regions.
Unicorn status will lose some of its luster in developed markets, but remain key in emerging ones
Related Resource: 15 Cybersecurity VCs You Should Know
Related Resource: 14 Gaming and Esports Investors You Should Know
Visible looks to help connect founders with investors all over the world. Below, we highlight 10 of our favorite FinTech venture capitalists. Search through these investors and 13,000+ more on Visible’s Connect platform.
FinTech Collective
Location: New York, New York, United States
About: The firm is currently investing out of its third fund, a $200m early-stage fund with a focus on capital markets, wealth and asset management, banking-lending-payments, and insurance. The firm actively invests in decentralized finance (“defi”) opportunities across these segments.
Thesis: Our ambition is to create the future of financial services, bringing transparency and choice to developed markets and financial connectivity and socio-economic mobility to developing markets.
Investment Stages: Seed, Series A, Series B
Recent Investments:
Qlub
NYDIG
Anyfin
Accel
Location: Palo Alto, California, United States
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.
Thesis: We partner with exceptional founders with unique insights, from inception through all phases of growth.
Investment Stages: Pre-Seed, Seed, Series A, Series B, Series C, Growth
Recent Investments:
NiYO Solutions
Coast
Genesis Global
Anthemis Group
Location: New York and London
About: Our deep understanding of markets and models, passion for emerging technology and values inspire everything we do. By creating fertile ground for a diverse group of startups, investors, entrepreneurs, institutions, academics, and visionaries to converge, we believe we can solve the financial services world’s most pressing challenges faster, better and for the benefit of all.
Thesis: Invests in startups that leverage technology to significantly impact the financial system.
Investment Stages: Pre-Seed, Seed, Series A, Series B, Series C, Growth, Early Stage, Startup Studio (Lab)
Recent Investments:
Atom Bank
tide
Flat.mx
Related Resource: 15 Venture Capital Firms in London Fueling Startup Growth
RRE Ventures
Location: New York, New York, United States
About: RRE Ventures is a New York-based venture capital firm that offers early-stage funding to software, internet, and communications companies.
Investment Stages: Series A, Series B
Recent Investments:
Venmo
Bol
Capitalize
Greycroft
Location: New York, New York, United States
About: Greycroft is a venture capital firm that focuses on technology start-ups and investments in the Internet and mobile markets.
Investment Stages: Pre-Seed, Seed, Series A, Series B, Growth
Recent Investments:
Procurated
CyberFortress
Kandji
Insight Partners
Location: New York, New York, United States
About: Insight Partners is the most trusted scale-up firm in the software industry.
Thesis: We support companies in good times, as well as challenging ones.
Investment Stages: Pre-Seed, Seed, Series A, Series B, Series C, Growth
Recent Investments:
ncino
checkout.com
coast
QED Investors
Location: Alexandria, Virginia, United States
About: QED Investors actively supports high-growth businesses that use the information to compete — and win.
Investment Stages: Seed, Series A, Series B
Recent Investments:
zibo
bitso
Index Ventures
Location: San Francisco, California, United States
About: They are an international venture capital firm based in London, San Francisco and Geneva
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.
Investment Stages: Seed, Series A, Series B, Series C, Growth
Recent Investments:
CoverWallet
Savvy Wealth
Fireblocks
Related Resource: The 11 Best Venture Capitals in San Francisco
Better Tomorrow Ventures
Location: San Francisco, CA
About: BTV is an early stage fintech focused fund that leads rounds in pre-seed and seed-stage fintech companies globally. We take a pretty broad view on fintech, and many vertical SaaS and marketplace businesses fit in our purview too.
Thesis: We invest for a better future (hence the name); financial technology is a great way to improve people’s lives.
Investment Stages: Pre-seed, Seed
Recent Investments:
Brick
CreditBook
Clubbi
Bain Capital Ventures
Location: Boston, Massachusetts, United States
About: Bain Capital Ventures is a global private equity firm with over $17 billion of assets under management. Since 1984, the firm has invested in over 200 companies, with such notable successes as Aspect Development, DoubleClick, Gartner Group, and Netfish Technologies. Bain Capital Ventures manages a $250 million fund. Bain Capital Ventures partners with exceptional management teams to help early stage companies become long-term leaders in their markets.
Thesis: We partner with disruptive founders to accelerate their ideas to market.
Investment Stages: Pre-Seed, Seed, Series A, Series B, Growth
Recent Investments:
Orum
Material Bank
Reonomy
American Express Ventures
Location: Palo Alto, California, United States
About: Seeks to invest in innovative startups in order to enhance the company’s core capabilities and accelerate their efforts in consumer commerce and B2B services.
Investment Stages: Seed, Series A, Series B, Series C, Growth
Recent Investments:
Finmark
Pinwheel
Statespace
SignalFire
Location: San Francisco, California, United States
About: SignalFire is a venture capital firm that invests in seed-stage companies and breakout companies.
Investment Stages: Seed, Series A
Recent Investments:
Tradeswell
PlanetScale
Ro
Torch Capital
Location: New York, New York, United States
About: Torch Capital is a brand-focused investment firm built to shepherd the next generation of industry changing mission driven consumer companies. We invest in consumer platforms, products and services from healthcare, fintech, and food & beverage, to digital media, e-commerce and marketplaces.
Investment Stages: Pre-Seed, Seed, Series A
Recent Investments:
Embed
Lili
Little Otter
Mouro Capital
Location: London, England
About: Mouro Capital is a venture capital firm that backs entrepreneurs and start-ups who are shaping the future of financial services. With $400m AuM and the support of Banco Santander, the fund targets early to growth stage investment opportunities across Europe, North America and Latin America. The fund brings fintech expertise, a global network and a track-record of successful investments and market recognition from our core investment team to scaling start-ups.
Recent Investments:
a55
Digital Asset Holdings
Curve
Canaan Partners
Location: Westport, Connecticut, United States
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.
Investment Stages: Seed, Series A, Series B, Growth
Recent Investments:
Kickpay
CircleUp
Italic
Related Resource: Atlanta’s Hottest Venture Capital Firms: Our Top 9 Picks
Additional FinTech Resources
Downloadable KPMG’s Pulse of Fintech H2’21
Download this edition for:
Global and regional analysis with key investment data and insights
Top fintech trends for 2022 and beyond
Interviews with Quantexa and Thought MachineFintech segment insights for a deeper dive into payments, insurtech, regtech, Wealthtech, cybersecurity, blockchain and cryptocurrency
Spotlight articles on Emerging Markets: LATAM and Africa.
Other Investor Lists
15 Venture Capital Firms Investing in VR
10 Gaming and Esports Investors You Should Know
10 Venture Capitalists Investing in Cannabis
60+ Active Seed Stage SaaS Investors & Fundraising Tips
23 Top VC Investors Actively Funding SaaS Startups
Exploring VCs by Check Size
10 VCs Investing In Food & Bev Startups
10 Blockchain Investors Founders Should Know
10 VC Firms Investing in Web3 Companies
15 Direct to Consumer (D2C) VC Investors You Need to Know
Start Your Next Round with Visible
We believe great outcomes happen when founders forge relationships with investors and potential investors. We created our Connect Investor Database to help you in the first step of this journey.
Instead of wasting time trying to figure out investor fit and profile for their given stage and industry, we created filters allowing you to find VC’s and accelerators who are looking to invest in companies like you. Check out all our FinTech investors here.
After learning more about them with the profile information and resources given you can reach out to them with a tailored email. To help craft that first email check out 5 Strategies for Cold Emailing Potential Investors.
After finding the right Investor you can create a personalized investor database with Visible. Combine qualified investors from Visible Connect with your own investor lists to share targeted Updates, decks, and dashboards. Start your free trial here.
founders
Fundraising
Berlin Venture Capital Investors to Know in 2024
Over the last decade, Berlin has transformed into the Silicon Valley of Germany and become a hotspot for founders and venture capital, with over 500 startups and around 40,000 business registrations per year. The city is the perfect environment for entrepreneurs to start and scale their businesses. Favorable conditions include highly qualified international talent, lots of networking opportunities and a vibrant social scene, a high standard of living at a relatively low cost, and a very active VC scene. Some of the well-established startups that call Berlin home are Soundcloud, Zalando, GetYourGuide, Delivery Hero, HelloFresh, N26, Tier Mobility, and Grover- just to name a few.
Alternate funding opportunities, accelerators, and startup communities that are specific to Berlin
Berlin government grants
IBB
BSS
Accelerators and Incubators
entrepreneur first
Antler
SIB (Startup Incubator Berlin)
Expedite Ventures: Expedite Ventures is a Business Angel group of CTOs and CPOs. “We support tech founders hands-on with our know-how and capital. We’re nerds at heart, all passionate founders ourselves – some of us are still running startups. We have decades of collective experience in building and scaling technology companies. We offer a true hands-on mentoring approach, which we think is at least as important as capital. That’s why we provide both – plus a perspective that typical business-oriented angels and most VCs simply can’t provide.”
Startup Scholorships
IHK Berlin: Set-up subsidy for those unemployed
Bayer G4A– partners with healthcare startups and technology companies that are developing innovative solutions in healthcare.
Encourage Ventures: The investor network for female founders
Notable Angels include co-founders and former MDs from Blinkist, N26, and mysugr.
Innovators Room– helps founders, investors, corporate innovators as well as rising talent to network and advance their career together, through our Slack community, TechJobs newsletter and various online and offline learning events.
Factory Berlin– provides members a curated network of entrepreneurs, professionals and creators, exclusive networking and knowledge-sharing events and programs, and access to our two locations in Berlin.
WLOUNGE– a connector, change-maker, door opener, inspiration, access, enabler, and empowerment, headquartered in Berlin. A key player in the German Tech ecosystem and globally. We are global, founded to support diversity and women in business and technology. Each year we provide innovative services, workshops, round tables, The Tech Awards Gala, delegations, conferences, investment scouting, female founders program, leadership and fundraising, Growth opportunities, matchmaking activities between startups and corporates.
BerChain– A non-profit association based in Berlin, connecting and promoting the Berlin Blockchain community from throughout the Blockchain ecosystem and beyond, positioning Berlin as the global Blockchain Capital.
Hubraum-hubraum is Deutsche Telekom’s tech incubator. By bringing early-stage startups and the leading European telco together, hubraum sparks innovation transfer and creates business opportunities for both sides. Since 2012, hubraum has been collaborating with the digital ecosystem out of its campuses in Berlin, Krakow and Tel Aviv.
EXIST– EXIST aims at improving the entrepreneurial environment at universities and research institutes.
FoodLabs– FoodLabs is a venture studio and investor for startups that shape the future of nutrition, sustainability and health.
Berlin VC Investment Within the Last 10 Years:
Events
StartUpNight– This will be the 10th year of the event which includes stage programs, workshop sessions, and pitch opportunities, experts from venture capital firms, corporates, and funding institutions will give founders the opportunity to present themselves and their innovations and get answers to their questions on important topics such as funding.
Hub.berlin– The business festival for digital movers and makers.
TOA– Tech Open Air
Resources
Berlin Startup Report (only in German)
Berlin Startup Resources
Berlin Startup Map
Top 10 Government Grants
Guide to Berlin startup funding
German Startup News
EU Startups
Business Insider: Grunderszene
Startup-Insider
VCs Investing in Berlin Startups
Lakestar
Location: Zürich, Zurich, Switzerland
About: Lakestar invests with a long term view across all stages from Seed to Growth. We have been privileged to partner with some of the world’s best tech entrepreneurs. Their stories are inspirational and make us proud.
Thesis: Our vision is of a world of technology-enabled, progressive societies, born of the very best ideas that founders can dream up and that we can help realise.
Investment Stages: Seed, Early, Growth
Recent Investments:
1047 Games
AccuRx
Aetion
Related Resource: 8 Active Venture Capital Firms in Germany
June Fund
Location: Berlin, Germany
About: June is a global technology investor, backed by leading industrial minds. June invests into new paradigms across all stages – from networks to infrastructures to open software platforms. We take a macro-thematic view on technological progress, new economic models and value creation. June’s breadth of experience, intellectual curiosity and long-term thinking have attracted exceptional teams and individuals.
Investment Stages: Pre-Seed, Seed, Series A, Series B, Series C, Growth
Recent Investments:
Reebelo
Statespace
SimScale
HV Capital
Location: Berlin, Munich, Germany
About: Founded in 2000, they are one of the leading independent European early stage funds.
Investment Stages: Pre-Seed, Seed, Series A
Recent Investments:
Storyblok
KoRo
Flip
Target Global
Location: Berlin, Berlin, Germany
About: We’re an international VC headquartered in Berlin with €800m+ AuM, focusing on fast-growing tech companies across their lifecycles. With offices in London, Tel Aviv, & Barcelona, we connect the key European startup ecosystems. We help exceptional entrepreneurs to build market leaders.
Investment Stages: Pre-Seed, Seed, Series A
Recent Investments:
Masterschool
Reverence
Casava
Acton Capital
Location: Munich, Bayern, Germany
About: Acton Capital Partners is a specialist investor in internet- and mobile-based, consumer-oriented businesses. Having managed more than 30 investments since 1999 as the corporate venture capital business of Hubert Burda Media, the German family-owned global media company, the Acton team brings a wealth of expertise to the companies in which it invests, delivering superior capital returns.
Investment Stages: Series A, Series B
Recent Investments:
Convelio
Zenjob
Knix Wear
IBB
Location: Berlin, Germany
About: Investing in Berlin-based start-ups with a focus on Tech (e.g. Software & IT, Industrial Tech, Health Care) and other business model innovations (e.g. Digital Consumer and Media Businesses).
Thesis: IBB Ventures is for all those who make a difference and create a sustainable future. We invest public funds as venture capital and, together with Berlin startups, help to promote our capital as a business location. Our focus is on innovative ideas and ambitious founders. With our many years of experience we are at your side and help you to successfully implement your ideas.
Investment Stages: Seed, Series A
Recent Investments:
Blinkist
Babbel
The Female Company
Speedinvest
Location: Berlin, London, Munich, Paris, and Vienna, Austria
About: We have 40 investment pros in Berlin, London, Paris, Munich, Vienna, San Fran & an in-house team of 20 operational experts to support you from day one. We fund early-stage Fintech, Digital Health, Consumer Tech, Network Effects, Deep Tech & Industrial Tech. Send us your pitch!
Thesis: Speedinvest is a leading early-stage venture capital firm with more than €600M AuM and 40 investors based in Berlin, London, Munich, Paris, and Vienna. Our dedicated sector-focused teams are the first to fund Europe’s most innovative technology startups and our in-house operational experts are on-hand to offer founders ongoing support with growth, HR, US market expansion, and more. Wefox, Bitpanda, TIER Mobility, GoStudent, Wayflyer, CoachHub, Schüttflix, TourRadar, Adverity, and Twaice are among our portfolio of 250+ companies. Learn more at www.speedinvest.com.
Investment Stages: Pre-Seed, Seed, Series A
Recent Investments:
Bliq
Byrd
Kevin
Verve Ventures
Location: Zürich, Switzerland
About: Verve Ventures provides its pan-European network of selected private and institutional investors access to those top-tier investment opportunities. The company invests from EUR 500k to several million from Seed to Series B and beyond across Europe. Verve Ventures’ dedicated team helps startups with their most pressing needs such as hiring, client introductions and access to an expert network of high-profile individuals. To become part of Verve Ventures’ growing network of entrepreneurs and investors, visit verve.vc.
Thesis: Investing in technology and science-driven startups. Adding value through our exclusive network of investors.
Investment Stages: Seed, Series A, Series B
Recent Investments:
Soter Analytics
Byrd
helios
Cherry Ventures
Location: Berlin, Germany
About: Cherry Ventures is an early-stage venture capital firm led by a team of entrepreneurs with experience building fast-scaling companies such as Zalando and Spotify. The firm backs Europe’s boldest founders, usually as their first institutional investor, and supports them in everything from their go-to-market strategy and the scaling of their businesses. Cherry Ventures has previously invested in the seed stage of over 70 companies across Europe, including FlixBus, Auto1 Group, Flaschenpost, Infarm, Rows, Forto, SellerX, Juni, and Flink. Cherry Ventures is based in Berlin and invests across Europe with operations in London and Stockholm.
Thesis: Founders first and investors second.
Investment Stages: Pre-Seed, Seed
Recent Investments:
Klar
Cosuno
NUMA Group
EQT Ventures
Location: Stockholm, Stockholms Lan, Sweden
About: EQT Ventures is a sector agnostic, multi-stage VC fund, with just over €1.2 billion total capital raised. The fund’s team of former founders and operators from the likes of Spotify, Booking.com, Hotels.com and King have experienced the entrepreneurial journey firsthand and know how challenging it can be. They’re ready to support the next generation of entrepreneurs in Europe and the US with the expertise and advice needed to build global success stories.
Investment Stages: Seed, Series A, Series B, Series C
Recent Investments:
Moralis
Instabox
Nothing
BlueYard Capital
Location: Berlin, Germany
About: BlueYard invests in founders with transforming ideas that decentralize markets and empower humanity. Typically $1-3m as an initial investment; active around the world. Most active in crypto/web 3 (e.g. Protocol Labs, Filecoin, Open Zeppelin, Radicle), technologies that help us overcome our largest planetary challenges (e.g. Marvel Fusion, Meatable, Dance), frontier biology to help us live long and prosper (e.g. BitBio, Biofidelity) and vertical software un-bundling monopolies (e.g. Pitch, Wonder).
Thesis: BlueYard seeks to invest in founders with transforming ideas that decentralize markets.
Investment Stages: Pre-seed, Seed, Series A
Recent Investments:
Privy
Dance
FreedomFi
Expedite Ventures
Location: Berlin, Germany
About: Expedite Ventures is a Business Angel group of CTOs and CPOs. We support tech founders hands-on with our know-how and capital. We offer a true hands-on mentoring approach, which we think is at least as important as capital. That’s why we provide both – plus a perspective that typical business-oriented angels and most VCs simply can’t provide.
Investment Stages: Pre-seed, Seed
Recent Investments:
Superlist
widgetbok
supernova
Start Your Next Round with Visible
We believe great outcomes happen when founders forge relationships with investors and potential investors. We created our Connect Investor Database to help you in the first step of this journey.
Instead of wasting time trying to figure out investor fit and profile for their given stage and industry, we created filters allowing you to find VC’s and accelerators who are looking to invest in companies like you. Check out all our investors here and filter as needed.
After learning more about them with the profile information and resources given you can reach out to them with a tailored email. To help craft that first email check out 5 Strategies for Cold Emailing Potential Investors.
After finding the right Investor you can create a personalized investor database with Visible. Combine qualified investors from Visible Connect with your own investor lists to share targeted Updates, decks, and dashboards. Start your free trial here.
founders
Fundraising
The 11 Best Venture Capitals in San Francisco in 2024
At Visible, we typically compare a venture fundraise to a traditional B2B sales and marketing funnel.
At the top of the funnel, you are finding potential investors via cold outreach and warm introductions.
In the middle of the funnel, you are nurturing potential investors with meetings, pitch decks, updates, and other communications.
At the bottom of the funnel, you are working through due diligence and hopefully closing new investors.
Related Resource: The 12 Best VC Funds You Should Know About
Like sales, a healthy fundraising funnel starts by finding the right investors. This can be based on geography, check size, focus areas, etc. For founders looking for investors in the San Francisco area, check out our list below:
1. Accel
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.”
Focus and industry: Accel is industry agnostic
Funding stage: Accel invests across many stages — from pre-seed to series B and beyond
Accel is synonymous with venture capital in San Francisco. Accel was founded in 1983 and has since funded 1,500+ companies. They have funds across the globe and invest in founders across many geographies, industries, and stages. Some of their most popular investments include:
Facebook
Slack
Spotify
Location: Palo Alto, CA
2. Greylock Partners
As put by their team, “At Greylock, our mission is to help realize rare potential. To do this well, we believe it’s essential to be trusted partners to entrepreneurs at every stage — from idea to IPO.
The entrepreneurs we back have the vision to build something huge that hasn’t existed before. They are paranoid about what could go wrong — but are obsessed with what can go right. They are mission-driven, intellectually honest and infinite learners. They have raw ambition, bravery, and grit. They don’t give up, ever. And they are unique in their ability to lead and inspire others to join their journey.”
Focus and industry: Greylock is focused on enterprise, consumer, and crypto software
Related Resource: FinTech Venture Capital Investors to Know
Funding stage: Greylock invest from pre-seed to series B and beyond
As put by their team, “We focus on enterprise, consumer, and crypto software at Seed and Series A, and also make new company investments in Series B and beyond. We support entrepreneurs throughout their journey from idea to IPO and onwards.” Some of their most popular investments include:
Airbnb
Facebook
Figma
Location: Menlo Park, CA
3. Menlo Ventures
As put by their team, “Genuinely, actively invested. Invested in your success, but also your struggles. Your questions, your concerns, your highs, your lows. We don’t just invest our dollars, we invest our dedication, our drive. Our tested advice and trusted support. That’s because, when we find an idea we believe in, we’re all engaged. When we’re in, we’re ALL IN.”
Focus and industry: Menlo Ventures focuses on the following industries:
Consumer
Cloud Infrastructure
Cybersecurity
Fintech
Healthcare
SaaS
Supply Chain and Automation
Related Resource: 15 Cybersecurity VCs You Should Know
Funding stage: Menlo Ventures across stages from inception to series B and beyond
As put by their team, “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.” Some of their most popular investments include:
Affinity
Minted
Roku
Location: Menlo Park, CA
4. Spark Capital
As put by their team, “We are Spark Capital, investors in products we love by creators we admire, including Affirm, Carta, Cruise, Discord, Oculus, Plaid, Postmates, Slack, Twitter, and Wayfair. We know there are no playbooks or formulas for success and are here to help founders win their own way. We invest across all sectors and stages, and work out of San Francisco, Boston, and New York City.”
Focus and industry: Spark Capital invests across all industries
Funding stage: Spark Capital invests across all stages
Like many of the funds on this list, Spark Capital has been investing across all industries and all stages for decades. Some of their most popular investments include:
Twitter
Slack
Affirm
Location: San Francisco – Boston – New York
5. Bessemer Venture Partners
As put by their team, “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.”
Focus and industry: BVP invests across many industries
Funding stage: BVP invests in early-stage companies
BVP has become a leader in early-stage investments. They focus on companies across the globe and have backed some of the most famous companies to date. Some of their most popular investments include:
LinkedIn
Shopify
Yelp
Location: San Francisco, CA
6. Altos Ventures
As put by their team, “Altos Ventures was founded in 1996, to exclusively address the needs of promising, young technology companies and entrepreneurs. Because of their focus on entrepreneurs – along with their network of co-investors, partners, and industry experts—they know how to build viable business models so companies can move on to the next stage of growth.”
Focus and industry: List the focus, industry, or types of companies this VC typically invests in.
Funding stage: Altos Ventures is focused on early-stage companies
Altos Ventures is a purpose-driven investment fund that is focused on the fundamentals. Some of their most popular investments include:
Bench
Outdoorsy
Roblox
Location: Menlo Park, CA
7. Andreessen Horowitz
As put by their team, “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.”
Focus and industry: Andreessen Horowitz invests across many industries, including:
Bio + Health
Cultural Leadership
Consumer
Crypto
Enterprise
Fintech
Games
Related Resource: 15 Venture Capital Firms Investing in VR
Funding stage: Andreessen Horowitz invests across all stages.
As put by their team, “a16z is defined by respect for the entrepreneur and the company building process; we know what it’s like to be in the founder’s shoes. The firm is led by general partners, many of whom are former founders/operators, CEOs, or CTOs of successful technology companies, and who have domain expertise ranging from biology to crypto to distributed systems to security to marketplaces to financial services.” Some of their most popular investments include:
Affirm
Airbnb
Coinbase
Location: Menlo Park, CA
8. Expa
As put by their team, “Expa is where the best startups find support and funding to scale. Collectively, we’ve launched dozens of companies, supported 50+ founders, and reached hundreds of millions of users. Our community of builders includes the founders and leaders of Uber, Virgin Galactic, Twitter, Current, and more.”
Focus and industry: Expa invests across many industries
Funding stage: Expa focuses on early-stage investments
As put by their team, “Expa was created by Uber co-founder Garrett Camp to support the next generation of founders. The partners at Expa are builders and operators themselves, who can provide founders with practical advice in product design, branding, engineering, operations, and recruiting.” Some of their most popular investments include:
Aero
Drip
Radar
Location: San Francisco, CA
9. Benchmark Venture Capital
As put on their Visible Connect profile, “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.”
Focus and industry: Benchmark is focused on social, mobile, local, and cloud companies.
Funding stage: According to their Visible Connect profile, “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.”
Benchmark has raised 6 funds that span 2 decades. Some of Benchmark’s most popular investments include:
Asana
Dropbox
Zillow
Location: San Francisco, CA
10. First Round Venture Capital
As put by their team, “We’re focused on being the world’s best partner for founders at the very first stages of company creation — so we’ve designed the firm to do just that. When you work with First Round, you get super active partners (most of whom are former founders themselves) working side-by-side with you on your biggest and smallest challenges.”
Focus and industry: First Round invests across all industries
Funding stage: First Round likes to be the first check in a company, regardless of stage. As put by their team, “Typically, our initial investment in a startup ranges from $1 million to $5 million, but we’ve gone higher and lower in some cases. Currently, our average initial investment is right around $3 million.”
Some of First Round’s most popular investments include:
Notion
The Black Tux
Uber
Location: San Francisco – New York – Philadelphia
11. Y Combinator
Y Combinator is synonymous with accelerators. As put by their team, “Y Combinator (YC) is a startup fund and program. Since 2005, YC has invested in nearly 3,000 companies including Airbnb, DoorDash, Stripe, Instacart, Dropbox, and Coinbase. The combined valuation of YC companies is over $300B. YC has programs and resources that support founders throughout the life of their company.”
Focus and industry: Y Combinator invests across all industries.
Funding stage: Y Combinator helps companies launch with a $500k check.
Since its inception in 2005, Y Combinator has been accredited for helping launch, fund, and grow some of the most prolific startups. Some of their most popular investments include:
Airbnb
DoorDash
Stripe
Location: San Francisco, CA
Find top investors in the Bay Area with Visible
As we mentioned at the beginning of this post, a venture fundraise often mirrors a traditional B2B sales and marketing funnel.
Just as a sales and marketing team has dedicated tools, shouldn’t a founder that is managing their investors and fundraising efforts? Use Visible to manage every part of your fundraising funnel with investor updates, fundraising pipelines, pitch deck sharing, and data rooms.
Raise capital, update investors, and engage your team from a single platform. Try Visible free for 14 days.
founders
Fundraising
A Founder’s Guide to Accelerators Funding Startups in 2024
As an ambitious founder, joining an accelerator program can be a major stepping stone to startup success. By joining an accelerator, startups can fast-track their progress, accessing resources and networks that would otherwise take years to build.
The impact of such programs is evident when we look at companies like Dropbox, Airbnb, and Reddit, each of which gained invaluable benefits from accelerator experiences with Y Combinator. By turbocharging their development, these companies leaped ahead, becoming industry leaders and household names.
In this article, we’ll delve deeper into the world of accelerators, helping you understand why such a program could be a game-changer for your startup and some startup Accelerators to consider from our Connect investment database.
Benefits of Joining an Accelerator
One of the most significant advantages of accelerator programs lies in the mentorship they provide. Founders are often paired with experienced entrepreneurs, investors, or industry experts who guide them through their growth trajectory. These mentors provide a wealth of industry insights, and strategic guidance that can open doors to significant networking opportunities.
Related resource: Should Your Startup Have Mentors? Key Benefits and Considerations
Alongside this, accelerators usually offer a certain amount of funding in exchange for equity. This early-stage capital injection can be crucial for startups to build their prototype, hire talent, or scale their operations. It also opens up a vast network of fellow founders, investors, and industry professionals, creating an ecosystem of collaboration and learning.
Additionally, founders gain access to resources and tools, such as workspaces, training sessions, and state-of-the-art technology. Accelerators ensure startups have what they need to succeed in today’s competitive market. These cumulative benefits can often be the catalyst that propels a young startup from stagnation to rapid growth.
Related resource: The Top 16 Accelerators Powering Startup Growth
“We surveyed 43 founders who attended these accelerators to better understand their biggest takeaways from each respective program. Founders highlighted many aspects of the accelerator programs, including access to quality advisers, mentors, and corporations, the strength of the program’s network, and the benefits of an environment that encourages deep thinking and iteration. They also appreciated education on fundraising and warm connections to investors and potential customers. On the other hand, founders expressed the need for more education on running a company.” – PitchBook Newsletter
Related resource: 12 Online Startup Communities for Founders
Selection Criteria and Application Process
Accelerators receive a plethora of applications, but only a handful make the cut. Therefore, understanding the selection criteria is crucial. Generally, these programs look for startups with high business potential, meaning your idea should solve a significant problem and have a sizable market. Team composition also plays a vital role; accelerators prefer diverse, dedicated, and capable teams that can withstand the rigors of startup life. Scalability is another crucial factor; your business should have the potential to grow rapidly and provide a return on investment.
As for the application process, it usually begins with an online application where you’ll provide information about your startup and why you believe it would benefit from the program. You’ll likely need to submit a pitch deck – a brief presentation outlining your business plan. If your application is shortlisted, the next stage is usually an interview with the accelerator’s selection committee. This is your opportunity to demonstrate your passion, knowledge, and commitment.
Related resource: Our Teaser Pitch Deck Template
Startup Growth Metrics and Benchmarks
For startups looking to attract accelerator interest and subsequent investment, monitoring and presenting the right growth metrics is critical. Key metrics include Monthly Recurring Revenue (MRR) and Year-over-Year (YoY) growth to showcase revenue consistency and scalability. Customer Acquisition Cost (CAC) and Lifetime Value (LTV) ratio provide insights into the efficiency of marketing strategies and customer value. Engagement metrics, like Daily Active Users (DAU) or Monthly Active Users (MAU), highlight product stickiness and user adoption. Tracking these metrics allows startups to demonstrate growth potential and operational efficiency to potential accelerators and investors.
Equity vs. Non-equity Programs
For founders, choosing between equity-based and non-equity accelerators is a crucial decision that impacts the future of your startup. Equity-based programs typically require you to give up a portion of your company's equity in exchange for capital, mentorship, and resources. This can be a good option if you're looking for substantial funding and are willing to share your company's ownership. On the other hand, non-equity accelerators offer support without taking any stake in your company, ideal for those who wish to retain full ownership. However, they might offer less capital. Consider your startup's funding needs, how much control you're willing to share, and the specific benefits each program offers to make an informed decision.
Related resource: Pros and Cons of Crowdfunding for Your Startup
Legal and IP Considerations for Startups in Accelerators
When joining an accelerator, it's crucial to carefully navigate legal and intellectual property (IP) considerations. Protecting your startup's IP is paramount, as it forms the core of your value proposition. Ensure you understand the terms of the accelerator agreement, especially concerning IP rights and confidentiality. Some accelerators may require disclosure of your IP, so it's essential to have clear agreements in place to protect your interests. Consulting with a legal expert specializing in startup and IP law can provide tailored advice, helping you safeguard your assets while benefiting from the accelerator's resources and network. Engaging in due diligence and obtaining professional legal guidance are key steps in this process.
What to Expect from an Accelerator
Most programs are highly structured and rigorous, designed to make the most of every minute. A typical day could include a blend of workshops, mentorship sessions, networking events, and ample amounts of time for product development. Accelerators push startups to evolve rapidly, so the schedule can be demanding. Expect long days and tight deadlines, but also a supportive, collaborative environment full of passionate people who share your entrepreneurial spirit. It’s a high-intensity period, but the pace is intentionally set to prepare you for the demanding nature of running a startup.
Preparing the Team
Preparing your team for an accelerator program is much like gearing up for a marathon. The program’s intensity means your team will need to be mentally prepared and resilient. Transparency is key – ensure your team understands the expectations and commitments of the program. Encourage open communication about concerns and questions. Prioritize team health and well-being to avoid burnout. Foster a culture of agility and quick decision-making, as accelerators move at a fast pace. Regular check-ins and debriefs can help the team navigate the experience collectively, learning and pivoting as needed.
Setting realistic and achievable goals before entering an accelerator is crucial. Having clear objectives will help you stay focused amidst the whirlwind of activities and opportunities. Your goals could range from product development milestones, market validation, and customer acquisition targets, to preparing for fundraising. Be ambitious, but also practical – consider your team’s capacity and the program’s duration. Your goals should be specific, measurable, achievable, relevant, and time-bound (SMART). Remember, these goals are not set in stone; they should evolve as you receive new information and feedback during the program. Regularly revisit and revise your goals to ensure they align with your startup’s growth and the invaluable feedback you’ll receive within the accelerator environment.
Related resource: Startup Metrics You Need to Monitor
Navigating Post-Accelerator Challenges
After completing an accelerator program, startups face the challenge of maintaining momentum. To sustain growth, focus on continuous learning and adaptability, leveraging the network and resources acquired during the program. Establish clear, achievable goals for short and long-term growth, and continuously measure performance against these objectives. Engage with the accelerator alumni community for support and potential collaboration opportunities. Prioritize building strong customer relationships and refining your value proposition based on feedback. Lastly, maintain fiscal discipline while seeking further investment opportunities to fuel growth.
Resources
The most active startup accelerators and where they’re investing
Accelerator connect profiles in our Fundraising CRM
Seed-DB maintains a global list of accelerators and data on their funded startups.
Barclays Eagle Labs: Our passion is innovation and growth so much so, that in 2015 when underused Barclays spaces became available we created Eagle Labs, a network made up of member businesses, partners, investors, corporates, mentors, banking expertise and so much more.
Startup Accelerators to Check Out
Buildit Accelerator
And Program Info Provided by Arta Beitāne, Associate and Accelerator Program Manager
About: Buildit is an accelerator that supports hardware and IoT startups in turning an idea into a tangible, market-worthy product.
Sweetspot check size: $ 300K
Traction metrics requirements: Must have an MVP or working prototype
Thesis: At Buildit you don’t just get a product accelerator. You get a partner in development that’s invested in seeing you succeed. Program Specifics: What does the curriculum include? What skills and knowledge areas does the program focus on?
“Curriculum topics: Smart prototyping, design for manufacturing, business modelling and pricing, efficient marketing with 0$ budget, pitch trainings, Fundraising & Legalese, IP protection, Sustainability and ESG reporting since Day 1…The program focuses on setting up the startup so that the team can raise their next investment rounds – clear plans and milestones, team competencies, IP rights, etc.”
Mentorship and Network: Who are the mentors and what are their backgrounds?
“Mentors are of various profiles, and the group constantly changes as we are on a constant lookout for fresh perspectives. Mentors usually are or have been founders themselves, some are investors and some are specialists in their own areas (lawyers, engineers, consultants). What networking opportunities exist within the program? What kinds of professionals will they have access to?
“Mentors (a long list of 300 experts, compiled over years) and investors mainly.”
Success Stories and Track Record: What notable companies have gone through the program?”
“We’re proud [amongst others] of STRIGA, Naco Technologies, Alternative Plants to name a few.”
Post-Program Support: What kind of support (if any) is offered to startups after they complete the program?
“In most cases, we invest in our program graduates. Participants are pre-selected in a way where we see high potential of a Buildit investment case. The network is quite widespread geographically and industry-wise, nevertheless, relatively closely knit, therefore, we see high likelihood in portfolio company founders helping each other + we try to host annual in-person events to facilitate relationship building and rekindling.”
Aviatra Accelerators
About: Aviatra Accelerators empowers women entrepreneurs to start and grow their businesses faster and with more confidence.
Thesis: We offer classes, coaching and community to women entrepreneurs. Our program “Capital-Ready Women” helps women get ready to successfully access capital from lenders and investors.
"Our newest program for women entrepreneurs is Capital-Ready Women. It’s designed to help women get ready to successfully access capital from lenders and investors. It begins with our Free Fundability Assessment, available at FreeFundabilityAssessment.com."
Union Kitchen
About: Union Kitchen is a Food Business Accelerator. We build successful food businesses by bringing together our Accelerator with access to our Kitchen, Distribution, and Stores. Since starting in 2012, we’ve worked with over 650 food businesses, including DC favorites Compass Coffee, Snacklins, Mas Panadas, Caribe and many more! Union Kitchen also launched an investment fund in 2022. Are you ready to build your successful food business? Apply here: https://unionkitchen.com/apply
Lair East Labs
About: Lair East Labs is an early-stage venture firm based in New York City that empowers founders to expand internationally. At the heart of Lair East Labs comes our founder-centric accelerator program. Each cohort intakes 10 startups to receive curriculum content, mentorship network, office space, and investments of up to $150K. Our 4-month program combines the best of two worlds: learning from alum founders and gaining access to a diverse mentor and investor network with extensive experience navigating the Asian markets. Our portfolio companies have raised $65 million of funding after completing the accelerator. For more information, please visit https://laireastlabs.com
Traction metrics requirements: Must have a MVP for software-centric startups or associated IP or research paper to validate the technology for DeepTech companies
Arkley Brinc
About: Arkley is an Accelerator VC that focuses on early-stage hardware startups to help them grow from prototype to IPO.
Thesis: We are the most individual acceleration program on earth. Representing the bespoke model: We do what’s necessary to make you do what’s impossible. We are working with startups as a team member in order to achieve agreed operational and financial goals by using Arkley’s ecosystem.
Accelerator Centre
About: Accelerator Centre is a network of facilities dedicated to developing and commercializing technology startups.
Thesis: The Accelerator Centre is an award-winning startup accelerator dedicated to building and scaling sustainable, globally competitive companies and giving startups the highest probability of long-term success.
Dreamit Ventures
About: Dreamit is a venture fund and growth-focused accelerator for Urbantech, Securetech, and Healthtech startups
Sweetspot check size: $ 1M Traction metrics requirements: Seek healthtech and securetech companies with early commercial traction and proven product market fit that are focused on scaling. Thesis: Dreamit Ventures is a fund and growth program focused on startups with revenue or pilots that are ready to scale.
Capital Innovators
About: Capital Innovators provides top-ranked accelerator programs, venture fund management, and corporate innovation. It manages private and corporate venture funds focused on technology, consumer products, and energy innovations. Capital Innovators has helped scale 188 companies and assisted them in raising over $600 MM in follow-on investment and creating over 2,900 jobs.
HARDS
About: The First Brazilian Software/Hardware Accelerator
Thesis: How do we acceerate your startup? It’s easy .. years of experience from our investors, partners, mentors, advisors and managers in hardware and software development, added to the experience of accelerating Darwin Startups!
Village Capital
About: Our mission is to reinvent the system to back the entrepreneurs of the future. Our vision is a future where business builds equity and long-term prosperity.
gener8tor
About: gener8tor is a nationally ranked, concierge accelerator that invests in high-growth startups.
Sweetspot check size: $ 100K
AngelPad
About: AngelPad is a seed-stage accelerator program that finds product market fit, defining a target market to get first validation for a company.
Sweetspot check size: $ 1M Thesis: Find awesome companies with founders we like to work with and spend three very intense months with them.
The Alchemist Accelerator
About: The Alchemist Accelerator is a venture-backed initiative focused on accelerating startups whose revenue comes from enterprises.
Sweetspot check size: $ 75K
Traction metrics requirements: Looking for companies from the idea stage to 15K+ in MRR
FounderFuel
About: FounderFuel is a mentor-driven venture accelerator that helps new startups make progress on the venture path.
Sweetspot check size: $ 120K Thesis: We ignite the global success of companies by developing the leaders behind them.
Amplify
About: Amplify is a pre-seed fund in Venice, CA dedicated to backing strong teams at the earliest stages and supporting from first check to exit.
Thesis: At Amplify, our vision is clear — help passionate technology entrepreneurs grow their startups into strong, scalable & successful companies.
Flashpoint
About: Flashpoint is an international tech investment manager with approx. $400 million AUM focused on international tech companies originating out of Europe and Israel. Flashpoint manages five venture funds: three VC funds, a Venture Debt Fund, and a Secondary Fund. The firm is headquartered in London and has offices in New York, Tel-Aviv, Budapest, Warsaw, Riga, and Nicosia.
Global Insurance Accelerator
About: The Global Insurance Accelerator is a mentor-driven business accelerator designed to foster innovation in the insurance industry through startups targeting the global insurance industry. We take in early-stage companies who are building solutions that support the insurance industry. We provide seed funding, networking with our mentors, a desk in our beautiful office in Des Moines, 100-days of on-site support and time on stage at the Global Insurance Symposium with hundreds industry executives in attendance. This is not your typical accelerator. Our investors are insurance carriers, our mentors are primarily insurance executives. Startups participating in our program find product-market fit and do customer discovery faster than they could ever do at any other accelerator. We are a strategic partner.
The Deal: Investment with founder-friendly terms: $50k in the form of a post-money SAFE that converts to 5% of the company; no board seat Curated meetings with 75+ insurance-focused mentors in program; dozens more after Final presentations @ Global Insurance Symposium (~600 attendees in 2019) Additional exposure at industry conferences One-bedroom, residential-style suite at the Staybridge Suites, with amenities including daily breakfast, nightly dinner, gym, pool, and laundry (in-person nights / 2-minute walk from GIA) Office space for your entire team Typical accelerator perks (deals on hosting, marketing tools, etc) Stocked fridge at the GIA office Founders need to be in Des Moines during the program, business-related travel is supported
Hardware.co
About: HARDWARE.co is a global community and accelerator for entrepreneurs, industry professionals and makers dedicated to the creation of innovative hardware products and companies. HARDWARE.co is made out of several interconnected components to serve, maintain, and grow our community. The HARDWARE.co Accelerator, Lab, Meetups, and Online Platform form a multichannel resource to give community members the opportunity to create leading products and companies. We support every stage of hardware development – from ideas, to prototypes, to investments, and beyond.
mHUB
About: mHUB is the nation’s leading hardtech and manufacturing innovation center. We offer membership options, run accelerator programs and provide research and development services to ensure the manufacturing industry continues to accelerate, grow and thrive.
Since launching in 2017, the mHUB community has generated more than $1B in revenue, launched more than 1,500 products, hired more than 5,100 employees, and raised over $1.5B in capital.
The mHUB facility, located in Chicago, is 80,000+ square feet and home to over 10 labs for prototyping and manufacturing. Labs include: 3D Printer Lab, Cold Metals Lab, Electronics Lab, Finishing Lab, Hot Metals Lab, Laser Cutting Lab, Plastics Lab, Testing Lab, Textiles Lab, Water Work Lab, and Woodworking Lab. There is more than $6 million of equipment and resources for members as well as over 5,000 square feet of event space.
Check size: $ 175K - $ 750K
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