Vinay Reddy

In the season finale of Brex's Controllers Classified podcast, BCV partner Sarah Hinkfuss spoke with Erik Zhou to discuss the VC investment landscape and how BCV approaches due diligence for growth-stage companies. For founders, there are three things that are important to share with investors: 1. Your unit economics, or how you think about your business drivers. It’s by far the most important thing today and those inputs (e.g. customer cohort data, gross margin, sales and marketing costs) give you a complete picture of the business. 2. Your business model, or how you think about your future. It doesn’t have to be a huge, complicated spreadsheet. Rather, it’s an important instrument to show people how you think about the business. What is your view of the future and what do you believe are the most important drivers of the business? 3. Your memo, or your narrative. A popular format today is to tell your story in a memo, not a deck, and it’s great because the writing process forces more complete thoughts to give investors a full view of your business and vision.

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A new flood of fresh funds is reshaping the venture capital landscape! 🚀 Recent highlights include TVM Capital Healthcare’s $250M Afiyah Fund LP, SVC's $30M investment into General Atlantic’s private equity fund, Golden Gate Ventures' $100M MENA-focused fund launch, and Investcorp's $570M fund closure. These announcements signal a broader trend of escalating financial commitments within the industry. MEA funds are heating up! 🌡️ Our data reveals a 74% YoY increase in the number of MEA-based funds being financed as of May 20th, 2024. Since Q4’23, there has been a notable surge in regional funds securing capital, with international investors also establishing localized funds. Stay informed with the latest trends in VC activity: https://lnkd.in/dP6ZkmCd By MAGNiTT Repost by : Salem Bagami Chief Executive Officer Digital Transformation Company & Managing Director 2080 Ventures Email: salem@2080.ventures Website: www.2080.ventures #VC #Funds #Investing

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Summary: Acrew Capital, a venture capital firm based in San Francisco, has raised $700 million in funds for investments in data, security, healthcare, and fintech companies. This brings their total assets under management to $1.7 billion. Despite challenging fundraising conditions in the industry, Acrew has achieved success through its notable portfolio and experienced team. Key takeaways: Acrew Capital raised $700 million in funds for investments in data, security, healthcare, and fintech companies. The firm has achieved success through its notable portfolio and experienced team, with multiple exits and investments in high-valued private companies. Despite tough conditions in the venture capital industry, Acrew's fundraising totals for this year are expected to surpass previous years. Counter arguments: While Acrew Capital has seen success in the industry, it is unclear how much of the $700 million raised will go towards early-stage investments versus discovery strategy investments. The current fundraising totals for U.S. VC firms still pale in comparison to previous years, indicating challenges in the industry as a whole. #venturecapital #vc #fundraising

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Summary: VC Neil Mehta, co-founder of Greenoaks Capital, has been facing criticism for his growing number of building purchases in San Francisco's Fillmore Street. In an op-ed, Mehta defends himself and states his intention to revitalize the city. Key takeaways: Mehta is facing backlash from local politicians and community members for displacing small businesses with his building purchases. He argues that his purchases are being made through a non-profit organization and he will not personally benefit financially. Mehta plans to reinvest any profits back into the community. Counter arguments: Local politicians, including SF Supervisor Aaron Peskin, argue that Mehta's purchases will harm the small business community. Mehta's ownership of a real estate fund that is backing the purchases raises questions about his personal financial motivation. #venturecapital #vc #venture #realestate #startups

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For all you AI and data needs this is worth being aware of.

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Check out my recent post on why President Trump is the forcing function for us to solve the “Missing Middle” and catch the industrial Tsunami of onshoring coming to the US!

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Summary: The article discusses the current challenges faced by VC firms in attracting new capital, but highlights how established firms like Kleiner Perkins are still able to raise large funds. It also touches on the potential impact of AI on investment strategies. Key takeaways: Many VC firms are struggling to secure new capital in a tepid IPO environment. Established, brand-name firms like Kleiner Perkins are still able to raise significant funds. AI is emerging as a potential game-changer in the investment landscape. Counter arguments: It may be premature to attribute Kleiner Perkins' fundraising success solely to AI; other factors could also be at play. The article may overlook smaller VC firms that are also finding success in fundraising. #venturecapital #vc #venture #startups #artificialintelligence

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Considering a career in startups or VC? Starting today, I'm available for 1:1 calls on @Intro to help startup founders and aspiring VCs think through the path ahead. As the founder + managing director of Red Sea Ventures, we invested early in companies like Allbirds (IPO), Sweetgreen (IPO), Nest (acq. Google), Casetext (acq. Thompson Reuters), and Prose to name a few. What topics can we cover? ✔️ Finding product-market fit ✔️ The different paths to funding ✔️ Determining how much you need to raise ✔️ Building a VC firm ✔️ Careers in VC ✔️ Celebrity partnerships Honored to be alongside world-class Experts like Chris DeWolfe (co-founder of MySpace (sold for $675M), Scott Saunders (founder of Happy Money, valued $1B+) & Geraldine Martin-Coppola (former President of Goop). I’ll be donating 100% of the proceeds to Seeds of Peace

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I really enjoyed breaking in our new studio to sit down with Temporal Technologies Co-Founders Samar Abbas and Maxim Fateev for the latest episode of Founded & Funded. Temporal was founded in 2019 based on an open-source microservices orchestration engine project but is the result of a more than decade-long partnership between the two co-founders that spanned their time working on different iterations of the same thing at AWS, Microsoft, and Uber. In this episode, Samar, Maxim, and I dive into the challenges of building an open-source ecosystem while also working on a commercial offering and scaling a successful company, how to navigate and adjust a product roadmap in an ever-changing world of AI and large language models, and how to successfully build an early startup team, navigate through a CEO transition, and bring on a startups first independent board member. It's a very compelling conversation and a must-listen for every builder out there. Watch the full episode on YouTube: https://lnkd.in/gymf9sES Find other platforms and the transcript on our website: https://lnkd.in/ggRtnKtM Be sure to subscribe to our channel for more deep dives into cutting-edge technologies and the minds behind them. Don't forget to like, comment, and share this conversation if you found it valuable!

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Summary: The article discusses tech mogul Vinod Khosla and his recent success as a prominent investor. Khosla's main focus is on AI and its potential impact on various industries. He also addresses concerns regarding AI regulation and competition with Chinese AI. Key takeaways: Khosla's recent $50 million investment in OpenAI has garnered attention and success. He is passionate about the potential for AI to disrupt and improve various industries. Khosla's focus on AI regulation and concerns about Chinese AI competition. Counter arguments: Some may argue that Khosla's intense focus on AI may overshadow other important areas of technology. Critics may question the sustainability of AI in certain industries and its potential negative effects on job displacement. #ai #artificialintelligence #tech #venturecapital #vc #startups

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Summary: Industry Ventures has raised a $900 million early-stage hybrid fund for investing in emerging managers and directly backing growth-stage companies. This is their seventh hybrid fund and is larger than their previous one. The fund will be split between backing VC funds, direct investments, and acquiring stakes from emerging managers. Key takeaways: Smaller, newer funds are finding it more difficult to raise capital, but this fund from Industry Ventures offers hope for emerging managers. The fund will be split between various investments, including backing VC funds and buying secondary interests. Industry Ventures may have an advantage due to their ability to invest in both emerging and more established managers. Counter arguments: Some may argue that it is still difficult for emerging managers to raise funds. The success of Industry Ventures may not be indicative of the overall climate for emerging managers. #venturecapital #venture #startups #fundraising

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#MobilityMonday: Angering many and impeding public transit funding, NYC congestion pricing scheme axed at the last minute Almost exactly a year ago, I wrote about NYC getting federal approval for the congestion pricing plan (see https://bit.ly/3Xi9xqu). Eleven months later, New York State Executive Chamber Governor Kathy Hochul unexpectedly announced the indefinite suspension of the Congestion Relief Zone (CRZ), which was planned to go into on June 30. Suddenly, the title of the first American city to implement congestion pricing remains up for grabs. Proponents of the CRZ hailed its potential for tackling air pollution and carbon emissions, relieving traffic, and providing a significant revenue stream for the Metropolitan Transportation Authority, the city’s undercapitalized and beleaguered public transit system. The MTA had already earmarked $15B from expected CRZ funds and now has left dozens of rail and bus projects across all five boroughs without any financial backing (see https://lnkd.in/dmZaUvmh). With over 700k vehicles entering the Manhattan Central Business District each day, the economic ramifications of the CRZ — and, now, the lack thereof — are massive (see https://lnkd.in/dNf5v5dp). Despite championing the scheme herself, Hochul now argues that the plan would harm the city’s post-pandemic economic recovery and unfairly burden low-income residents. However, critics have argued that the decision was political in nature: “an election year ploy to help Democrats in suburban districts where congestion pricing is notably unpopular” (see https://bit.ly/45fSN5h). At a time when Hochul is polling at her lowest favorability rating since taking office in 2021, it’s hard not to wonder the extent to which this decision was politically motivated. Admittedly, the same polling indicates that a majority of NYC-area residents oppose the CRZ (see https://bit.ly/4b4ygC4). Though Hochul isn’t up for election until 2026, national politics is still top-of-mind, as no less than 7 NY seats in the 2024 House elections are considered “competitive races” (see https://bit.ly/3KyCs25). Now, the city’s underfunded public transit woes are set to continue. One analysis by the Regional Plan Association notes that 56% of outer-borough NYC residents rely on public transportation to get into Manhattan for work — 14x more than the 4% who drive. Despite Hochul’s assertions, only 2% of those classified as working poor would potentially pay the congestion charge (see https://bit.ly/4aR9u8l). All this symbolizes a more troubling trend: how net-positive mobility schemes are being hijacked for political purposes. The EV transition, micromobility incentives, curb space reallocation, and yes, congestion pricing, will each produce winners and losers in the market. But in the end, most would agree that the long-term environmental, societal, and economic benefits are worth it. #congestionpricing #NYC #NewYork #Hochul #MTA #publictransit

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I'm excited to learn more about venture capital from the wonderful panel Big Red Ventures has curated. Comment below if you will be in attendance!

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Summary: Bolt's CEO has threatened legal action against an investment bank involved in their recent fundraising efforts, claiming they signed a binding term sheet for $200 million but did not follow through. Key takeaways: Bolt's CEO believes there was miscommunication at Silverbear Capital, one of their lead investors, leading to confusion about the fundraising deal. A leaked term sheet showed Bolt trying to raise $200 million in equity and $250 million in marketing credits, with a unique pay-to-play structure. The involvement of Silverbear Capital and The London Fund in the deal remains unclear. Counter arguments: Silverbear Capital's partner insists there was no miscommunication and the deal was never discussed or approved. The London Fund has confirmed discussions with Bolt's management but denies any finalized transaction. #venturecapital

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🗽🌳 Exciting News for NYC Tech Community! 🚀 Join us for an invigorating Venture Walk & Talk, proudly part of NY Tech Week! Scheduled for June 4th from 11:30 AM to 12:30 PM at the scenic Maine Monument in Central Park, this unique event is hosted by Founders Committee Ventures. 🌟 Why Join Us? Imagine a relaxed stroll through the beautiful pathways of Central Park, where you can disconnect from the digital world and engage with NYC’s finest founders, angel investors, and venture capitalists. This is more than just a walk; it’s an opportunity to forge meaningful connections, share innovative ideas, and enjoy the great outdoors—all within the heart of Manhattan. ✨ Event Highlights: - Network with industry leaders and peers - Brainstorm new ideas in a refreshing setting - Enjoy the vibrant atmosphere of Central Park Whether you’re looking to collaborate on new projects, explore potential investments, or simply enjoy a break from the office routine, the Venture Walk & Talk is the perfect occasion. 👉 Registration is open but spots are limited and approval is required. Don’t miss out on this chance to be part of something special during #TechWeek. Lace up your walking shoes, grab a coffee, and let’s make strides together in the tech ecosystem! 🔗 https://lu.ma/wj9o67iy See you there for a breath of fresh innovation! #NYTechWeek #TechNetworking #StartupLife #VentureCapital

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We took the pulse of emerging fund managers about what it's been like for them during these post-ZERP, venture-capital-winter years. #venturecapital #veteranventures

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A quick overview of startup financing trends over the past few years with trends showing more investments returning to the earlier stages.

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As the Shasta Ventures approval deadline approaches, we're presented with a unique opportunity to observe the complexities and inherent conflicts in GP-led secondary transactions. This scenario sheds light on the considerable leverage GPs hold within the private equity infrastructure. According to the article, proposed continuation fund requires LPs to approve the transaction if they wish to roll their interests into the new structure—a stipulation that could be seen as putting undue pressure on LPs. This raises critical questions about the balance of power in private equity deals and the alignment of interests between GPs and LPs. What are your thoughts? Is it appropriate for GPs to demand such conditions for LPs to participate in a continuation fund? How do you see this impacting the broader private equity landscape and the perception of GP-led secondary transactions? Looking forward to hearing your insights and perspectives on this pivotal issue. #PrivateEquity #VentureCapital #InvestmentTrends #ShastaVentures #GPledSecondaries

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A new era of deep tech has emerged. First time funds will raise “unheard of” amounts of capital to fuel next gen deep tech startups - producing outsized, superior returns for LP’s compared to the rest. Prudent investors will act on this data and shift investment strategy as LP’s or risk being left behind savvy wealth managers and CIO’s / FO’s who saw this trend begin 4 years ago.

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