Fundraising

Latest Funding and Market Trends in EdTech (2023 and Beyond) The EdTech sector presents a landscape of both challenges and opportunities. Founders need to be agile and adaptable, with a focus on the key growth areas of AI, mobile learning, and data analytics. Despite the current downturn in venture capital funding, the sector's long-term growth prospects remain promising, driven by technological advancements and a global push towards accessible, quality education. Funding and Investment Trends In 2023, the EdTech sector is witnessing a notable decline in venture capital funding. Investments in the second quarter stood at $707 million, contributing to a total of about $1.8 billion in the first half of the year. This represents a significant 58% drop compared to the same period in the previous year. The forecast for total VC funding in 2023 is projected to be around $3.5 billion, a decrease from $10.6 billion in 2022 and far from the record $20.8 billion in 2021​​. The current investment climate has moved away from the "golden age of mega rounds." The recent period marked the second consecutive quarter without funding rounds exceeding $100 million, known as mega rounds. This cooling trend is attributed to a shift in market conditions, including a return to in-person learning and the expiration of federal aid that had previously boosted remote learning​​. Related resource: Top 18 Revolutionary EdTech Startups Redefining Education Opportunities and Growth Prospects Despite the current slowdown, the long-term outlook for EdTech remains robust. Most forecasters anticipate continued substantial growth in the sector throughout the rest of this decade. This optimism is rooted in the belief that technology will continue to be a significant driver of global growth in education by reducing costs and expanding access to learning​​. AI, mobile learning, tutoring, and data analytics are emerging as focal points in the EdTech sector. Innovations in these areas are expected to drive growth, with AI becoming a crucial component for startups. Mobile learning is also gaining prominence due to its widespread accessibility. Tutoring services are evolving, often combining AI, mobile technology, virtual/augmented reality, and gamification to offer more engaging and personalized learning experiences​​. Implications for EdTech Founders Navigating the Changing Landscape: EdTech founders must adapt to the evolving investment landscape, which may involve seeking smaller and more frequent rounds of funding. With the shift in investment focus, there is an increased emphasis on sectors outside of K-12, particularly in areas related to training and worker upskilling​​. Leveraging Emerging Technologies: Founders should focus on leveraging emerging technologies like AI and mobile learning to create innovative solutions. There is a growing market for platforms that use big data and analytics to personalize learning. Additionally, developing solutions in the tutoring space, particularly those that address gaps in K-12 education, can be a fruitful direction​​. Exploring Alternative Funding Sources: With the decline in traditional venture investments, it's crucial for startups to explore alternative forms of funding. This could include government funding, foundation-led philanthropic investments, and other non-traditional financing options. Diversifying funding sources can help sustain innovation and support the growth of new ideas​​. Emerging Technologies in EdTech For EdTech founders, emerging technologies offer a plethora of opportunities to innovate and create impactful educational solutions. As AI and IoT continue to evolve, they will undoubtedly unveil new possibilities for enhancing learning experiences and educational outcomes. Embracing these technologies and integrating them into EdTech solutions will be key to addressing the evolving needs of learners and educators alike. AI-Driven Innovations Personalized Learning Experiences: AI's ability to tailor educational content based on individual learning styles and needs is more advanced than ever. Using complex algorithms, AI can analyze student performance data to create a uniquely personalized learning journey. This not only enhances student engagement but also improves learning outcomes. Intelligent Assessment Tools: AI is revolutionizing the way assessments are conducted. With advancements in natural language processing and machine learning, AI systems can now grade open-ended responses, provide real-time feedback, and even identify areas where students might need additional support. Automated Content Generation: AI is being used to develop educational content, from generating practice questions to creating interactive learning modules. This technology allows for the rapid creation of high-quality, dynamic content that can adapt to curriculum changes and evolving educational standards. AI Tutors and Assistants: AI-powered tutoring systems are becoming more sophisticated, offering students personalized guidance and support. These virtual tutors can answer questions, assist with problem-solving, and provide explanations, much like a human tutor but with the added benefit of being available 24/7. IoT in Education Smart Classroom Technologies: IoT is transforming traditional classrooms into smart learning environments. This includes the use of smart boards, IoT-enabled lab equipment, and connected devices that enhance interactive learning and provide real-time data to both students and teachers. Enhanced Learning Analytics: now it’s possible to gather extensive data on student engagement and classroom dynamics. This information can be used to optimize teaching strategies, classroom layouts, and even individualize student learning plans based on engagement levels and performance. Improved Resource Management: In educational institutions, IoT can help manage resources more efficiently, from tracking equipment usage to monitoring energy consumption. This not only reduces operational costs but also contributes to creating a more sustainable learning environment. Future Outlook: Trends and Predictions in EdTech The future of EdTech is marked by a landscape of continuous innovation and adaptation. For EdTech founders, staying abreast of these trends and predictions is crucial to developing solutions that meet the evolving needs of learners and educators. By embracing these changes and anticipating future needs, EdTech companies can not only contribute to the advancement of education but also thrive in a dynamic and growing market. Key Trends Shaping the Future Increased Adoption of AI and Machine Learning: AI and ML will continue to be at the forefront of EdTech innovation. They are expected to drive further personalization in learning, provide more efficient assessment tools, and enable the creation of dynamic, responsive educational content. Growth in Virtual and Augmented Reality: VR and AR are anticipated to gain more traction in the educational sector. These technologies will provide immersive and interactive learning experiences, making complex concepts more accessible and engaging. Rise of Microlearning and Bite-Sized Content: The trend towards microlearning is expected to grow. Short, focused learning sessions that fit into busy schedules are increasingly appealing, especially for continuous adult education and corporate training. Focus on Lifelong Learning and Upskilling: As job roles evolve rapidly, there will be a heightened focus on lifelong learning and upskilling. EdTech platforms that cater to professional development and career transitions will likely see increased demand. Expansion of Gamification in Education: Gamification will continue to be a key element in engaging learners. By making learning more fun and interactive, EdTech solutions can improve retention and motivation across various age groups and educational contexts. Greater Emphasis on Inclusive and Accessible Education: There will be a growing focus on making education more inclusive and accessible. This includes developing solutions for learners with disabilities and those in underserved communities. Predictions for Growth and Evolution Market Expansion: The global EdTech market is projected to continue expanding, driven by technological advancements and the increasing acceptance of digital learning solutions. Diversification of EdTech Solutions: Expect to see a broader range of EdTech products catering to different educational needs, including early childhood education, K-12, higher education, and adult learning. Integration with Traditional Education Systems: EdTech will increasingly complement and integrate with traditional education systems, bridging gaps and enhancing the overall learning experience. Adoption in Emerging Markets: Emerging markets will likely see a surge in EdTech adoption as internet penetration increases and digital devices become more affordable. Investment Shifts: While venture capital funding may fluctuate, investment in EdTech is expected to remain strong, with a shift towards more strategic and impact-focused funding. Key Players “In the future, entrepreneurs will sell knowledge over products.”- Ankur Nagpal founder of Teachable Source: CB Insights Pre-K Education: Learn With Homer– Raised a total of $93M and was then acquired. K-12 Education: Platforms like Kahoot! and Quizlet have brought an element of gamification to K-12 classrooms, making learning interactive and enjoyable. Meanwhile, EdTech platforms like Google Classroom and Canvas help manage classroom tasks and streamline communication between teachers, students, and parents. Other big players include Khan Academy a free world-class education platform and GoStudent for 1 on 1 tutoring. Higher Education: Tools like Coursera, edX, and Udemy are revolutionizing higher education. These platforms provide a wide range of courses from universities around the world, giving students access to quality education regardless of location. They also offer micro-credentials, which are becoming increasingly recognized by employers. Continuing Education and Adult Upskilling: LinkedIn Learning, Coursera provide professionals the opportunity to learn new skills, stay current in their field, and even transition to new careers. They offer a myriad of courses in fields ranging from business and tech to creative arts. Specialized Learning: Companies like Rosetta Stone and Duolingo make language learning accessible to everyone, while platforms like MasterClass provide expert-led courses in various domains, such as writing, cooking, acting, and more. Cohort-based Learning companies: EducateMe, Maven and and various boot camps such as LeWagon and Iron Hack for tech upskilling. “Microlearning” or Bite-sized Learning involves absorbing knowledge in small, digestible segments, usually less than 10 minutes in duration. This method addresses time constraints, a common hurdle for employee participation in workplace learning. It not only condenses learning periods, thus increasing student engagement but also promotes information retention through repetition. Several innovative microlearning platforms have adopted this approach some examples include GoodCourse and 7Taps. Companies Own Offerings: Google Classroom, Microsoft Teams for Education, and Apple’s educational resources. In the era of lifelong learning, the market for educational technology has expanded dramatically. As technology continues to evolve and integrate into the education sector, we can expect to see even more niche EdTech platforms arise to meet the diverse needs of learners. Unique Challenges Technological infrastructure, including reliable internet access, is still a hurdle in many parts of the world. Concerns regarding data privacy and security. User engagement and retention, particularly in the K-12 segment, require a fine balance between education and engagement. Articulating Unique Value Proposition for EdTech Founders As the EdTech marketplace starts to rapidly grow and is swarming with innovation, it is crucial for founders to effectively articulate the unique value proposition (UVP) of their startups. Your UVP is essentially the backbone of your business. Understanding and expressing your UVP is vital, particularly in the EdTech sector. This is because educational institutions, teachers, students, and parents – the primary stakeholders in EdTech – are looking for targeted solutions to specific challenges they face in the educational landscape. Whether it’s improving learning outcomes, enhancing teacher productivity, or increasing education accessibility, the ability to distinctly show how your solution addresses these challenges can make or break your fundraising efforts. Improving Learning Outcomes If your EdTech solution can improve learning outcomes, demonstrate this with data from pilot studies or user testimonials, showing how your product increases knowledge retention, improves grades, or develops specific skills. Highlight unique features of your product that facilitate these improved outcomes, such as AI-powered adaptive learning paths or gamified learning experiences. Enhancing Teacher Productivity EdTech is not only about students but also about empowering teachers. If your product can enhance teacher productivity, illustrate how it reduces their administrative burden, automates repetitive tasks, or assists in more efficient classroom management. Show how your product can help teachers spend more time doing what they do best—teaching and mentoring students. Increasing Education Accessibility In a world increasingly focused on equality and inclusion, EdTech solutions that increase educational accessibility have a powerful appeal. If this is your company’s strength, show how your product helps reach underprivileged communities, accommodates students with special needs, or allows flexible learning for those who can’t attend traditional classes. Concrete examples and stories will help your audience understand the real-world impact of your solution. EdTech Shower Thoughts First, a little flashback to the end of 2022- the value of 30 EdTech unicorns approached $100 billion, comparable to Fortune 500 companies like General Electric and American Express (that’s pretty impressive). According to research, students following personalized learning approaches significantly outperform their peers. AI helps to address the challenge of high student-teacher ratios, providing customized learning experiences. EdTech’s reach extends beyond traditional education, with remote work enhancing its importance in professional development. Automated identification of skill gaps and intelligent resource recommendations are seen as valuable to businesses and their employees. The potential impact of government funding on EdTech’s growth- the trend towards technology use in education might lead to a significant portion of the available $30 billion US government funding being allocated to EdTech. Learning Management Systems (LMS) is incredibly important in achieving scalability in EdTech. LMS not only helps manage large classrooms but also crucially harnesses data from personalized learning platforms, enabling educators to improve content and technologists to better understand user behavior. Resources EdTech VC connect profiles in our Fundraising CRM From Exploding Topics: 56 Fast-Growing Edtech Companies & Startups (2023) 12 Emerging Education Trends (2023-2026) $30B in government funding available to educators in the US HolonIQ: 2022 closed with 30 EdTech Unicorns around the world, collectively valued at $89B Accelerator- Imagine K12 (which is specifically focused on EdTech) Events: SXSW EDU, and Bett Show attract educators, and GSV Ventures hosts their annual ASU + GSV summit VCs Investing in the EdTech Space NewSchools Venture Fund About: “NewSchools Venture Fund is a is a national nonprofit venture philanthropy working to reimagine public education. Since our founding, in 1998, we have invested nearly $200 million in 200 education ventures. Our investments were instrumental in the creation of nearly 470 new schools with the potential to serve more than 200,000 students, and the development of ed tech products that serve more than 60 million students and their teachers.” Thesis: “We are the first venture philanthropy focused on K-12 education. As a nonprofit and intermediary funder, we raise charitable donations and then grant those funds to early-stage entrepreneurs who are reimagining public education. While we have a rigorous investment process, we seek educational and social returns, not financial ones.” Stage: Pre-Seed, Seed, Series A, Growth EdTech Notable Investments: ClassDojo, Handshake, and Uncommon Schools. EduCapital About: The largest European Edtech & Future of Work VC. Educapital invest’s in innovative European companies with the highest potential to scale and become European and global leaders. Thesis: We invest in Entrepreneurs shaping the future of education & future of work. Stage: Seed, Series A, Series b, Growth EdTech Lastest Investments: Tomorrow University of Applied Sciences, Edflex, Lunii Bonsal Capital About: We support tech-enabled, mission-driven startups and funds and leverage our experience as educators, venture capitalists, and ecosystem leaders to empower you to find the resources you need, so you can better serve your end user and customer. Thesis: Bonsal Capital is a mission-driven partnership, and supporting education has been a core driver since our founding in 1999. With decades of experience in education as investors, practitioners, and volunteers, our principals have authentically grown a partnership that seeks founders and leaders who want to make a positive impact with a product and/or service, and who keep prospective scale and sustainability at the forefront. We support the growth of companies focused on tech-enabled services in education, and we have invested in and partnered with more than 20 such companies over the past two decades, providing human and financial capital, as well as other resources, that have made a positive impact on tens of millions of end users. We believe that, by fostering education, we can make the world a better place and feel good about our place in it. Stage: Seed, Series A, Growth EdTech Notable Investments: Upswing, Nepris, and Everyday Labs Learn Capital About: LearnCapital is a venture capital firm focused exclusively on funding entrepreneurs with a vision for better and smarter learning. Thesis: “We back and build rapidly scaling tech-enabled companies that tackle the world’s biggest human-centered problems and help us all reach our full potential.” Stage: Seed, Series A, Growth EdTech Notable Investments: Udemy, Coursera, and Chegg. Emerge Education About: LearnCapital is a venture capital firm focused exclusively on funding entrepreneurs with a vision for better and smarter learning. Stage: Pre-Seed and Seed EdTech Notable Investments: Tomorrow University of Applied Sciences, Edurino, and Colossyan Owl Ventures About: “Founded in 2014, Owl Ventures is the largest venture capital firm in the world focused on the education technology market with over $2 billion in assets under management. The Silicon Valley-based firm was purposely built to partner with and help scale the world’s leading education companies across the education spectrum encompassing PreK-12, higher education, future of work (career mobility/professional learning), and “EdTech+” (intersection of EdTech and other major industries such as FinTech and healthcare).” Thesis: “We believe there is a digital revolution rapidly unfolding in education and workforce development. This revolution is creating a historic opportunity to invest in companies that are disrupting and improving the over $6 trillion global education market. The entire education and training sector is shifting rapidly as access to the internet and connected devices has flourished. Hundreds of millions of students and teachers around the world can now leverage innovative learning platforms.” Stage: We invest in companies at all stages from seed, early, growth, and later stages, globally. EdTech Notable Investments: MasterClass, degreed, Khan Academy, Schoology, and Knewton. Reach Capital About: Reach supports the most promising entrepreneurs developing technology solutions for challenges in early childhood, K-12, and higher education. Thesis: “Education is a critical engine for economic mobility. Alongside health, wellbeing, career development and healthy relationships, we are interested in all ideas that empower people to learn, grow and succeed — in school, at home, for work … wherever they go.” Stages: “early, and support you at every stage of your journey” EdTech Notable Investments: Guild Education, Classcraft, and Merit America. General Catalyst About: General Catalyst backs exceptional entrepreneurs who are building innovative technology companies and market leading businesses, including Airbnb, BigCommerce, ClassPass, Datalogix, Datto, Demandware, Gusto (fka ZenPayroll), The Honest Company, HubSpot, KAYAK, Oscar, Snap, Stripe, and Warby Parker. The General Catalyst team leverages its broad experience to help founders build extraordinary companies. General Catalyst has offices in Cambridge, MA, Palo Alto, CA and New York City. Thesis: General Catalyst is a venture capital firm that makes early-stage and growth equity investments. Stages: Seed, Series A, Series B, Growth EdTech Notable Investments: Chegg, Coursera, and Udacity. Kapor Capital About: Kapor Capital invests in early stage gap-closing tech enabled startups. Thesis: Kapor Capital invests in tech-driven early-stage companies committed to closing gaps of access, opportunity or outcome for low-income communities and/or communities of color in the United States. Stages: Pre- Seed, Seed, Series A, Series B Looking for Investors? Try Visible Today! 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. Related Resource: EdTech VC connect profiles in our Fundraising CRM

At Visible, we often compare a venture capital fundraise to a traditional B2B sales and marketing funnel. At the top of your funnel, you are looking for qualified investors. In the middle of your funnel, you are nurturing potential investors with pitch decks, meetings, and email updates. At the bottom of your funnel, you are hopefully closing new investors. Related Resource: The 12 Best VC Funds You Should Know About Just as a sales and marketing funnel starts by finding qualified leads, the same is true for a venture fundraise. For some, this might start by finding investors (or leads) that are in a certain geography. For founders located in Boston, check out a list of our favorite VC funds in Boston below: 1. General Catalyst Partners As put by the team at General Catalyst Partners, “We work with companies through their entire lifecycle—from the earliest stages through growth and beyond. Our team has expertise in all phases of company building and can add real value at every inflection point. No matter where they are in their journey, we always aspire to be a founder’s first call—connecting them to the relationships that matter most.” Focus and industry: General Catalyst invests across every sector. They specifically mention consumer, enterprise, fintech & crypto, and health assurance on their website. Funding stage: General Catalyst invests across every stage — “from creation to IPO.” General Catalyst is on of the biggest names in the venture industry. They’ve raised 15 funds dating back to 2001. The team invests in companies across every sector, in every stage, across the globe. A few of their most popular investments include: Stripe Warby Parker Hubspot Airbnb Location: Cambridge, MA – New York – London – San Francisco Related Resource: Exploring the Top 10 Venture Capital Firms in New York City Learn more about General Catalyst by checking out their Visible Connect profile → 2. Battery Ventures As put by the team at Battery Ventures, “We back founders and talented teams at all stages of growth, from startups to established market leaders. We are currently investing from our 14th flagship fund, Battery Ventures XIV, and companion fund Select Fund II, together capitalized at a combined $3.8 billion.” Focus and industry: Battery Ventures invests in many sectors but specifically mentions application software, infrastructure software, consumer, and industrial tech on their website. Funding stage: The team at Battery Ventures invests in companies across all stages Battery Ventures has been investing since 1983. Over their 40 years of investing, they’ve funded 450+ companies. Battery Ventures will invest in companies across all stages across the globe. Check out a few of their most popular investments below: Affirm Amplitude Invision Location: Boston – San Francisco – Menlo Park – Tel Aviv – London – New York City Related Resource: 15 Venture Capital Firms in London Fueling Startup Growth Learn more about Battery Ventures by checking out their Visible Connect profile → 3. Polaris Partners As put by the team at Polaris Partners, “Since 1996, Polaris has been guided by the fundamental beliefs that people come first and true partnerships make all the difference. Rooted in mutual respect and a shared passion for innovation, our relationships with outstanding visionaries principally in technology and healthcare have helped to change the world for the better.” Focus and industry: The team at Polaris is focused on healthcare and life science/biotechnology companies Related Resource: The Top VCs Investing in BioTech (plus the metrics they want to see) Funding stage: The team at Polaris Partners does not publicly stage their stage focus. Polaris Partners has been funding healthcare businesses for 20+ years. Polaris has raised 10 funds focused on funding companies in healthcare and technology. A few of their most popular investments include: Syros SimplyInsured Amunix Location: Boston – New York – San Francisco Learn more about Polaris Partners by checking out their Visible Connect profile → 4. Summit Partners As put by their team, “Summit Partners was founded in 1984 with a commitment to find and partner with exceptional entrepreneurs to help them accelerate their growth and achieve dramatic results. Since then, Summit has become the investment partner of choice for many of the best growth companies in the world. We’ve grown to a team of more than 115 investment professionals, led by Managing Directors and Partners whose tenures average more than 16 years with Summit. We have the capital and team to support your growth initiatives.” Focus and industry: Summit Partners is focused on technology, healthcare & life science, and growth products Funding stage: The team at Summit Partners is focused on growth-stage companies and typically writes checks between $10M and $500M As put by their team, “We invest around the world and have portfolio companies in North and South America, Europe, Asia, Australia, and Africa. Based from offices in North America and Europe, our team travels the globe in search of growing companies and the resources to support them.” A few of their most popular investments include: WebEx Uber Reverb Location: Boston, MA 5. .406 Ventures As put by the team at .406 Ventures, “We invest in opportunities where we understand the need and your company’s technology solution; where we have deep, relevant networks; and where we believe we can add disproportionate value as a partner, investor, and board member. Our initial investments are typically between $2 and $5 million with substantial additional capital reserved for follow-on investment.” Focus and industry: The team at .406 Ventures focuses on cybersecurity, digital health, and data & cloud companies. Funding stage: .406 Ventures is focused on early-stage companies and typically writes checks between $2M and $5M. As put by their team, “When we were building our own entrepreneurial companies, we found that it was often our independent board members, not the VC board members, who contributed the most value. Invariably, it was the independent board members who had the deep experience and strong operational networks—and who had been in our shoes. At .406, we aim to bring these qualities, in addition to capital, to every one of our portfolio companies. It is our goal to be the most valuable member on your board.” Some of their most popular investments include: Compass Nomad Health Randori Location: Boston, MA 6. OpenView According to their team, “OpenView, the expansion stage venture firm, helps build software companies into market leaders. Through our Expansion Platform, we help companies hire the best talent, acquire and retain the right customers and partner with industry leaders so they can dominate their markets. Our focus on the expansion stage makes us uniquely suited to provide truly tailored operational support to our portfolio companies.” Focus and industry: OpenView Partners is focused on companies that are “changing the future of work.” Related Resource: 15+ VCs Investing in the Future of Work Funding stage: OpenView Partners is focused on expansion-stage companies. OpenView is largely associated with “product-led growth” and has backed some of the most prolific and successful SaaS companies. With their focus on the future of work companies + expansion stage companies, OpenView offers resources to help companies tackle all aspects of expansion stage growth. A few of their most popular investments include: Calendly Lessonly Datadog Location: Boston, MA Learn more about OpenView Partners by checking out their Visible Connect profile → 7. 1414 Ventures As put by their team, “1414 Ventures is focused solely on the digital identity space which supports functions such as payments, cybersecurity, and data privacy & trust. Given the exponential surge in virtual and digital transactions/interactions over the last year combined with increased security, fraud prevention, and privacy needs, there is a huge opportunity for next-generation digital identity startups.” Focus and industry: 1414 Ventures invests in companies that are “focused on creating innovative digital identity solutions.” Funding stage: Pre-seed and seed-stage companies 1414 Ventures has an intense focus on companies that are developing the future of digital identity. Some of 1414 Ventures’ most popular investments are: SingularKey Tautuk SwiftConnect Location: Boston, MA 8. Mendoza Ventures As put by their team, “Mendoza Ventures is an early and growth stage Fintech, AI, and Cybersecurity venture fund that provides an actively managed approach to VC. We invest in areas where we have deep domain expertise, companies with early revenue, a clear value proposition, and use a proven due diligence model. We focus on diversity as playing an important role in our investment decisions, as roughly 75% of our portfolio consists of start-ups led by immigrants, people of color, and women.” Focus and industry: Mendoza is focused on Fintech, AI, and Cybersecurity companies. Funding stage: Mendoza Ventures is focused on early and growth-stage companies On their website, Mendoza further explains their background and foundation, “Based in Boston, Mendoza Ventures is women-owned and the first LatinX-owned venture fund on the East Coast. The firm is run by husband and wife Adrian and Senofer Mendoza, entrepreneurs and prior operators who are veterans of the Boston start-up ecosystem.” Some of their most popular investments include: Canvas Senso Daylight Location: Boston – San Francisco Learn more about Mendoza Ventures by checking out their Visible Connect profile → 9. HLM Venture Partners As put by their team, “HLM provides venture capital to early- to mid-stage health care information technology, health care services, and medical device companies. HLM has helped over 75 privately-held health care companies turn innovative ideas into market-leading businesses. The Company’s investment professionals have over 125 years of collective expertise in the health care industry, an accumulation of knowledge and experience that is invaluable to the leadership of its portfolio companies.” Focus and industry: HLM Venture Partners are focused on healthcare services and companies. Funding stage: HLM offers early to mid-stage capital. HLM Venture Partners has invested in 75+ companies. Some of their most popular investments are: Able To Blue Rabbit Tebra Location: Waltham, MA 10. Venrock As put by the team at Venrock, “Originally established as the venture capital arm of the Rockefeller family in 1969, Venrock partners with entrepreneurs to build some of the world’s most disruptive, successful companies. With a primary focus on technology and healthcare.” Focus and industry: The team at Venrock is focused on investing in technology and healthcare companies Funding stage: Venrock invests across all stages Venrock is an original player in the venture capital space. Over their history, they have invested in 700 companies and have raised 10 funds. They’ve invested in some of the most prolific companies such as: Apple Nest Zoominfo Location: New York – Palo Alto 11. Third Rock Ventures As put by the team at Third Rock Ventures, “To achieve what hadn’t been done before, we created a process that hadn’t been done before. By starting with big ideas and fostering collaboration among brilliant people with expertise in science, medicine, business, and strategy, we set out to do more than fund startups – we aim to build sustainable, innovative companies that can transform the lives of patients.” Focus and industry: Third Rock Ventures focuses on biotechnology companies Funding stage: Third Rock Ventures does not publicly list a specific stage or check size As put by their team, “We build our companies on a solid foundation, instilling core values and a commitment to a great culture. Our companies are based on bold ideas that meet at the intersection of science, business, medicine, and strategy – where transformational science meets operational rigor – providing the best opportunity to make a dramatic difference in patient’s lives.” Some of their most popular investments include: Celsius Faze Medicines Moma Location: Boston – San Francisco Learn more about Third Rock Ventures by checking out their Visible Connect profile → Find investors in Boston with Visible As we previously mentioned, a venture fundraise oftentimes mirrors a traditional B2B sales and marketing funnel. Just as sales and marketing teams have dedicated tools to track their funnel, shouldn’t founders have dedicated tools to manage their most important asset – equity? With Visible, you can track and manage every part of your fundraising funnel. Find investors at the top of your funnel with Visible Connect, our free investor database Add them directly to your fundraising pipeline directly in Visible Share your pitch deck and data room with investors in your pipeline Send Updates to current and potential investors to keep them engaged with the progress of your business. Take your investor relations to the next level with Visible. Give Visible a free try for 14 days here.

At Visible, we often compare a startup fundraising process to a traditional B2B sales and marketing funnel. At the top of your funnel, you are adding qualified investors. Nurturing them in the middle of the funnel with email, meetings, pitches, etc. And ideally closing them as a new investor at the bottom of a funnel. Related Resource: How to Find Venture Capital to Fund Your Startup: 5 Methods Just like a sales and marketing funnel, a fundraising funnel needs to start with the right investors for your business (e.g. qualified lead or qualified investor). One of the aspects founders will want to research is the geography of the investor and where they invest. Check out a few popular venture capital firms located in New York below: 1. Union Square Ventures According to their website, “Union Square Ventures is a venture capital firm focused on early-stage, growth-capital, late stage, and startup financing.” Learn more about Union Square Ventures by checking out their Visible Connect Profile here → Investment Range Union Square Ventures invests in a large range of companies. Looking at their website and you’ll find that they invest in anywhere between Series A and Series D stages. Industries Union Square is self-described as a “thesis-driven” investor. They are currently investing off of their Thesis 3.0: “Enabling trusted brands that broaden access to knowledge, capital, and well-being by leveraging networks, platforms, and protocols.” Check out more about their Thesis 3.0, recent investments, and key ideas below: 2. Insight Partners According to the Insight Partners website, “Insight accelerates revenue and profit in software companies. Our obsession with software has produced a habit of success. We recognize industry patterns, emerging tech markets and software trends. We’ve accumulated the knowledge to understand the strategies needed to win.” Learn more about Insight Partners by checking out their Visible Connect Profile here → Investment Range Insight Partners will invest across every stage but their bread and butter are “scale-up” companies. Insight will invest anywhere from pre-seed to series C and beyond stages — generally with a check size between $10M and $350M. Industries Insight is focused on software companies. However, they invest in a number of different sectors that you can find here (or below): 3. Scout Ventures According to the Scout Ventures website, “Scout Ventures is an early-stage venture capital firm that invests in frontier and dual-use technologies built by veterans, intelligence leaders, and premier research labs. By leveraging our network of professional investors, operators, and experienced entrepreneurs, Scout can effectively execute every aspect of our investment thesis. We’re also paving the way for military veterans and intelligence professionals to access hundreds of millions in government grants and non-dilutive capital. The firm has three locations: Austin, New York City, Washington, DC.” Learn more about Scout Ventures by checking out their Visible Connect Profile here → Investment Range Scout Ventures writes checks anywhere between $100,000 and $3M. According to their website, “We lead Seed rounds with $1-2M initial checks and reserve capital for follow-on investments up to Series B.” Industries According to the Scout website, “We focus on sectors aligned to our experience serving in defense and building multi-billion dollar companies: AI/ML, quantum computing, robotics, advanced materials science, security, space & aerospace, and advanced energy.” 4. Greycroft According to their website, “Greycroft is a venture capital firm that focuses on technology start-ups and investments in the Internet and mobile markets.” Learn more about Greycroft by checking out their Visible Connect Profile here → Investment Range According to the team at Greycroft, “Greycroft typically makes initial investments from $500,000 at the seed stage to up to $30 million from the growth stage. We are an active Series A investor and typically invest between $1 million and $10 million. The growth fund targets investing $10 to $30 million on an initial basis and may reserve up to double that amount over time. The growth fund focuses on later-stage companies with proven unit economics, annual revenue growth in excess of 50%, and a management team that is prepared to scale.” Industries On the Greycroft website, you’ll find that they invest in a number of different industries — ”We invest across a broad range of Internet sectors. We currently group our portfolio into four verticals: Consumer Internet, Fintech, Healthcare, and Enterprise Software.” 5. RRE Ventures RRE Ventures has been funding software startups since the 90s. According to their website, “RRE Ventures is a New York-based venture capital firm that offers early-stage funding to software, internet, and communications companies.” Learn more about RRE Ventures by checking out their Visible Connect Profile here → Investment Range The team at RRE invests in a variety of early-stage tech and software companies. According to their Visible Connect profile, they invest in Series A and B companies with an average check size between $4M and $15M. Industries According to their website, “RRE invests in early-stage, technology-enabled companies across all sectors and across the country. We back credible teams executing against incredible ideas to build category-defining businesses.” Check it out here or learn more below: 6. Lerer Hippeau According to their website, “Lerer Hippeau is an early-stage venture capital fund founded and operated in New York City. We invest in good people with great ideas who redefine categories — and create new ones entirely.” Learn more about Lerer Hippeau by checking out their Visible Connect Profile here → Investment Range The team at Lerer Hippeau has 3 funds that invest in pre-seed to Series C and beyond companies. Industries The team at Lerer Hippeau is industry-agnostic and will invest in any company — including enterprise and consumer landscapes. 7. Starta According to their website, “​​Starta is a venture ecosystem to find, foster, and fund early-stage talent in tech. Our mission is to provide opportunities to: International startups who want to scale globally and raise capital Aspiring industry leaders, seeking professional training Investors who believe in long-term growth potential and a strong connection with the community Starta values inclusivity and diversity. Having worked with over 200 startups from all over the world, we intensively focus on bringing equal opportunities and support to the ecosystem.” Learn more about Starta by checking out their Visible Connect Profile here → Investment Range Like many of the other firms on this list, Starta has multiple funds that invest in many stages. Starta operates both an accelerator and early-stage fund intended for seed and series A companies: Industries The Starta team has a focus on international startups that are looking to expand and scale their US presence. 8. FirstMark FirstMark is an early-stage venture capital firm headquartered in New York City. As put by their team, “We are proud to back the ambitious founders of the most iconic companies in the world.” Learn more about FirstMark by checking out their Visible Connect Profile here → Investment Range According to their Visible Connect profile, the team at FirstMark writes checks anywhere between $500k and $15M. Industries The team at FirstMark invests in companies of a variety of industries and sectors. They have major focus areas of Enterprise, Consumer, and Frontier companies. 9. Hypothesis According to the Hypothesis website, “We build and fund companies. We’re a startup studio and seed fund that launches, funds, and scales exceptional companies.” Learn more about Hypothesis by checking out their Visible Connect Profile here → Investment Range As a startup studio, Hypothesis focuses on finding successful founders and co-founders and helps them launch and scale businesses. In addition to capital, Hypothesis portfolio companies receive resources and help with sales and marketing, hiring, product development, follow-up funding, etc. Industries The team at Hypothesis will invest in companies across many industries and are focused on “mission-driven” companies and founders. 10. Interlace Ventures According to the team at Interlace Ventures, “Investing in early-stage commerce- and retail-technology companies gives us unparalleled access to the latest technological innovations and trends across commerce and retail. We leverage this access by partnering with global brands and retailers to support their innovation efforts. We do this through a variety of methods, all of with are tailored after each partner’s individual needs and priorities.” Learn more about Interlace Ventures by checking out their Visible Connect Profile here → Investment Range The team at Interlace invests in pre-seed to series A-stage companies. According to their Visible Connect Profile, they will write checks anywhere between $150k and $600k. Industries Interlace has a focus on commerce and retail companies. Get Connected With Investors Today At Visible, we oftentimes compare a fundraise to a B2B sales and marketing funnel. At the top of your funnel, you are finding new investors. In the middle, you are nurturing and pitching potential investors. At the bottom of the funnel, you are working through diligence and ideally closing new investors. Related Resource: The 12 Best VC Funds You Should Know About With the introduction of data rooms, you can now manage every aspect of your fundraising funnel with Visible. Find investors at the top of your funnel with our free investor database, Visible Connect Track your conversations and move them through your funnel with our Fundraising CRM Share your pitch deck and monthly updates with potential investors Organize and share your most vital fundraising documents with data rooms Manage your fundraise from start to finish with Visible. Give it a free try for 14 days here. Related Read: Private Equity vs Venture Capital: Critical Differences Related Resource: 11 Top Venture Capital Firms in Boston

If you’re an entrepreneur in the Clean Tech or Climate Tech sectors, you are part of a rising tide of innovators dedicated to tackling the world’s most pressing environmental challenges. However, building and growing a business in these sectors can be fraught with unique hurdles. We’ll cover insights, suggestions, and strategies to help you navigate the space along with a list of VCs actively investing in Clean Tech and Climate Tech companies. Understanding the Landscape- same, same, but different Clean Tech and Climate Tech, although different, share a common purpose: promoting sustainability and addressing environmental challenges. Clean Tech focuses on reducing the environmental footprint of industries, with innovations in energy efficiency, renewable energy, green transportation, and waste management. Climate Tech, on the other hand, zeros in on directly combating climate change through carbon capture, climate modeling and monitoring, and adaptation technologies. Despite their different orientations, both sectors face similar obstacles and opportunities. Founders must navigate regulatory landscapes, demonstrate market viability through pilot projects, and attract socially conscious customers and impact investors. Understanding these commonalities can provide a blueprint for strategy development. Related resource: The Future is Green: 15 Climate Tech Startups to Watch This Year Fundraising and the Capital Conundrum Clean Tech and Climate Tech startups often require substantial upfront capital for research, development, and deployment of their technologies. Raising funds in these sectors, however, can be challenging, especially when technologies are at early stages, and risk levels are high. Engage with Specialized Investors: A host of venture capital firms, impact investors, and accelerators specialize in Clean Tech and Climate Tech. They understand the risks, can provide sector-specific guidance, and often have longer investment horizons. Related Resource: Check out our full list of Clean Tech and Climate Tech VCs here Leverage Government Grants and Incentives: Governments worldwide are stepping up their efforts to combat climate change. Entrepreneurs should stay updated on relevant grants, subsidies, and incentive programs that can help to offset initial development and deployment costs. Build Strategic Partnerships: Collaborations with larger corporates or strategic partners can provide not only capital but also vital resources, industry insights, and credibility. Navigating the Regulatory Landscape: Regulatory and policy environments can be particularly complex for Clean Tech and Climate Tech startups, which often operate at the intersection of technology, environment, and policy. It’s crucial to stay ahead of regulatory changes that could impact your business. Engage early and often with regulators and policymakers, and consider hiring regulatory experts as part of your team or as consultants. Demonstrating Market Viability: Investors and partners want proof that your technology works and has a viable market. Consider implementing pilot projects that showcase your solution in a real-world context. These pilots can provide valuable data and testimonials, enhance credibility, and serve as powerful tools when negotiating with potential investors or partners. Crafting a Compelling Narrative: A compelling narrative that resonates with your target audience is key. Be clear about your mission, the problem you’re solving, and the environmental and societal benefits of your solution. This narrative can attract not only investors but also customers, partners, and talent to your cause. Case Studies: Successful Strategies Clean Tech and Climate Tech Startups Employed to Overcome Challenges Collaboration & Partnerships CleanTech startups can collaborate with established companies, research institutions, and other startups to pool resources, share knowledge, and tackle common challenges collectively. Here are some successful examples of this: Tesla and Panasonic Tesla, the electric vehicle (EV) pioneer, formed a strategic partnership with Panasonic, a global electronics manufacturer, to collaborate on battery technology development. Panasonic provided expertise in lithium-ion battery cells, which became a critical component of Tesla’s electric vehicles. The partnership allowed Tesla to access Panasonic’s advanced battery technology and scale up production to meet the growing demand for their EVs. This collaboration contributed to Tesla’s success in the EV market and solidified its position as a leader in sustainable transportation. Panasonic press release: Panasonic and Tesla Reach Agreement to Expand Supply of Automotive-grade Battery Cells Pilot Projects and Demonstrations Conducting pilot projects and demonstrations can help showcase the viability and effectiveness of CleanTech solutions to potential customers and investors, easing market adoption. Moixa’s GridShare Platform Moixa is a Clean Tech startup that has developed an AI-powered platform called GridShare to manage and optimize home energy storage systems. In early 2023, Moixa launched a pilot project in partnership with ITOCHU Corporation in Japan to demonstrate the platform’s capabilities. By optimizing energy usage, the project showcases how Moixa’s solution can reduce costs for households and contribute to grid stability, paving the way for widespread adoption of renewable energy. Greentech Media: UK Storage Startup Moixa Raises $6M to Fuel ‘Exponential Growth’ Plans Regulatory Expertise Engaging with experts in regulatory affairs and policy can assist startups in navigating complex legal landscapes and advocating for favorable policies. ChargePoint ChargePoint, a leading electric vehicle charging network provider, has demonstrated strong regulatory expertise in navigating the ever-evolving landscape of EV charging regulations. By actively participating in discussions with government agencies, utilities, and transportation authorities, ChargePoint has influenced the development of charging infrastructure standards and policies. Their engagement with regulators has helped streamline the deployment of EV charging stations, making it more convenient for EV drivers and contributing to the growth of the electric vehicle market. ChargePoint Press Release:ChargePoint partners with National Electrical Contractors Association (NECA) to accelerate deployment of electric vehicle charging infrastructure Accessing Non-Traditional Capital Exploring funding options beyond traditional venture capital, such as government grants, impact investors, and corporate sustainability funds, can provide crucial financial support. Accessing non-traditional sources of capital is often a vital strategy for Clean Tech and Climate Tech startups. These alternative avenues of funding can offer the substantial upfront capital required for research, development, and deployment of these technologies. Here’s a recent example: Charm Industrial’s Carbon Sequestration Project with Stripe Charm Industrial is a climate tech startup that has developed a novel method of carbon sequestration, transforming biomass into a type of oil that can be injected deep underground for long-term storage. In 2022, Charm received significant funding from a somewhat unconventional source – the online payment company, Stripe. Stripe has pledged to spend at least $1 million per year on carbon removal technologies, and Charm Industrial was one of the companies chosen as part of this initiative. The financial support from Stripe has allowed Charm to convert thousands of tons of biomass into oil and sequester it underground, demonstrating the effectiveness of its solution at a larger scale. This example not only showcases the growing interest from corporations in supporting Clean Tech and Climate Tech startups but also underscores the potential for these companies to leverage such opportunities. The strategic partnership with Stripe has helped Charm Industrial not just in terms of capital but also in building credibility and increasing visibility in the market. In seeking non-traditional funding sources, startups can also consider other avenues like green bonds, climate funds backed by governments, crowdfunding platforms, and partnerships with NGOs committed to environmental causes. The key lies in identifying the right opportunity that aligns with your business model and long-term growth strategy. Stripe Press Release:Stripe commits $8M to six new carbon removal companies Focus on Impact Metrics Highlighting the environmental impact and sustainability benefits of the CleanTech solution can attract socially conscious investors and customers. Patagonia Patagonia, an outdoor clothing and gear company, places a strong emphasis on impact metrics related to sustainability. The company tracks and publicizes its efforts to reduce carbon emissions, minimize water usage, and promote responsible sourcing of materials. By transparently communicating its environmental initiatives, Patagonia attracts loyal customers who align with their values, and the company’s commitment to sustainability becomes a significant driver of brand loyalty. Patagonia’s Page: Environmental & Social Footprint Ecolab Ecolab, a global provider of water, hygiene, and energy technologies and services, focuses on impact metrics related to water conservation and sustainable operations. The company measures and reports on water savings achieved through its solutions, helping businesses and industries reduce water consumption and environmental impact. By demonstrating the positive environmental outcomes of its services, Ecolab attracts clients who prioritize sustainability, leading to long-term partnerships and business growth. Ecolab’s 2030 Impact Goals Ecolab Releases 2022 Corporate Sustainability Report, Highlights Progress Toward 2030 Impact Goals Resources Impact Investors and Fund Managers to Know Climate Tech’s Evolution: The Maturation to a Competitive, Returns-Focused Thematic Investment Sector From Clean Tech 1.0 to Climate Tech 2.0: A New Era of Investment Opportunities The climate tech sector is booming—here are the applications VCs are most excited about The Database of State Incentives for Renewables & Efficiency (DSIRE) For impact investors, the Global Impact Investing Network (GIIN) offers a directory of its members, many of whom are impact investors interested in sustainable technologies. VCs Investing in Clean Tech and Climate Tech Startups Lowercarbon Capital About: Lowercarbon Capital invests in decarbonization technologies across various sectors, including energy, transportation, food, and manufacturing. They fund research and invest in technologies to reduce CO2 in the atmosphere. For too long, the world has ignored the scientists, inventors, and entrepreneurs who are pursuing solutions to lower emissions, remove carbon, actively cool the planet, and save human, animal, and plant life as we know it. We are working to fix that. Check out their Visible Connect profile here -> Lowercarbon Capital Thirdsphere About: Third Sphere works for founders transforming global systems. We’ve made over 100 investments in notable firms like Cove Tool, OneWheel and Bowery Farming. We’re usually a pre-customer investor and offer traditional venture as well as credit finance, along with coaching and connections to over 12,000 customers, investors focused on re-imagining our planet. Our team is ranked in the 99th percentile of climatetech investors on NFX Signal, and Techcrunch named us one of the top 10 VCs founders love the most. We know that climate is about more than carbon—it’s also about force multipliers like asset finance and distribution. We believe the best climate solutions don’t look like climate solutions at all, just better, faster, and cheaper products and services. We prefer rapid deployment that will get us close to 1.5C in warming while upgrading our systems to make them more resilient. But we’ll also look at moonshot opportunities because we know we need a plan B. Thesis: A real investment is about more than capital. We invest at the earliest stages, usually pre-customer, stay close to our founders, and work with them from the inception of our relationship so they can build relationships with other founders, investors, and customers. Check out their Visible Connect profile here -> Thirdsphere Breakthrough Energy Ventures About: Launched by Bill Gates, Breakthrough Energy Ventures invests in companies developing technologies to reduce greenhouse gas emissions. Breakthrough Energy is dedicated to helping humanity avoid a climate disaster. Through investment vehicles, philanthropic programs, policy advocacy, and other activities, we’re committed to scaling the technologies we need to reach net-zero emissions by 2050. Thesis: Breakthrough Energy Ventures provides reliable and affordable power without contributing to climate change. Check out their Visible Connect profile here -> Breakthrough Energy Ventures Energy Impact Partners About: Energy Impact Partners LP (EIP) is a global investment platform that invests in companies shaping the energy landscape of the future. EIP brings together entrepreneurs and the world’s most forward-looking energy and industrial companies to advance innovation. With over $2.5 billion in assets under management, EIP invests globally across venture, growth, credit, and infrastructure – and has a team of over 70 professionals based in its offices in New York, San Francisco, Palm Beach, London, Washington D.C., Cologne, and Oslo. Thesis: We bring together incumbents and innovators in a differentiated collaborative model to build and scale businesses for substantial impact. Check out their Visible Connect profile here -> Energy Impact Partners Generation Investment Management About: Co-founded by former US Vice President Al Gore, Generation Investment Management focuses on sustainable investments, including Climate Tech. Since its founding in 2004, Generation has played a pioneering role in the development of sustainable and environmental, social and governance (ESG) investing. Check out their Visible Connect profile here -> Generation Investment Management Prelude Ventures About: Prelude Ventures is a venture capital firm partnering with entrepreneurs to address climate change. Since 2013, we have invested in over 40 companies across advanced energy, food and agriculture, transportation and logistics, advanced materials and manufacturing, and advanced computing. We have a long-term commitment to the sector, accept informed risks, and couple a fundamental emphasis on venture-level returns with an understanding of deep-tech and hardware development timelines. Prelude manages capital exclusively for Simons family philanthropic entities and is a founding member of the Breakthrough Energy Coalition. Thesis: We invest in the low-carbon economy. Check out their Visible Connect profile here -> Prelude Ventures 3×5 Partners About: In everything we do, we allow our love for each other and for the planet to be our guide. We seek out companies that are delivering advancements in clean air, food, water, shelter, education, healthcare, sanitation, and climate and environmental sustainability. When we find companies that align with our mission, we go beyond due diligence and take the time needed to build relationships grounded in trust, shared vision, transparency, and mutual accountability. Check out their Visible Connect profile here -> 3×5 Partners Third Derivative About: We are building an inclusive, global ecosystem that rapidly finds, funds, and scales climate tech innovation and transforms markets. Thesis: We are mission driven and market focused. Rising to the climate crisis challenge is a once-in-a-generation, trillion-dollar economic opportunity. That’s why we were founded with purpose: to find, fund, hone, and scale the most-promising technologies to achieve larger, faster reductions in global carbon emissions. Check out their Visible Connect profile here -> Third Derivative Evergreen Climate Innovations About: Clean Energy Trust is a cleantech accelerator that fuels innovation to create a healthier environment and more prosperous future. Clean Energy Trust is a 501C3 public charity. Our unique funding model gives us the flexibility to invest early in promising technology and young companies. We invest across the spectrum of cleantech including energy efficiency, agriculture, energy generation, energy storage, and transportation technologies. Sweetspot check size: $ 100K Check out their Visible Connect profile here ->Evergreen Climate Innovations Greentown Labs About: Greentown Labs is a community of climate action pioneers working to design a more sustainable world. As the largest climatetech startup incubator in North America, Greentown Labs brings together startups, corporates, investors, policymakers, and many others with a focus on scaling climate solutions. Driven by the mission of providing startups the resources, knowledge, connections, and equipment they need to thrive, Greentown Labs offers lab space, shared office space, a machine shop, an electronics lab, software and business resources, and a large network of corporate customers, investors, and more. With incubators in Somerville, Mass. and Houston, Texas, Greentown Labs is home to more than 200 startups and has supported more than 500 since the incubator’s founding in 2011. These startups have collectively created more than 24,000 jobs, raised more than $4 billion in funding, and generated more than $9.8 billion in regional economic impact. Check out their Visible Connect profile here -> Greentown Labs Future Energy Ventures About: Future Energy Ventures is a unique venture capital platform that brings together corporate partners and world-class start-ups to shape the future energy landscape. Future Energy Ventures is the venture capital investment and collaboration platform of E.ON, one of Europe’s largest operators of energy networks and energy-related infrastructure and a provider of innovative customer solutions for about 50 million customers. Thesis: Future Energy Ventures is born from the energy industry, but it understands energy must converge with other sectors to create a sustainable and prosperous future. This is why we go beyond energy to invest in companies solving problems in cities or building frontier technology. The realization of our ambition relies on collaboration and partnerships; between people and companies from many different industries. Check out their Visible Connect profile here -> Future Energy Ventures Looking for Investors? Try Visible Today! 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. Related Resource: Clean Tech and Climate Tech VC profiles in our Fundraising CRM

Venture capital can be a game-changer for startups, offering not just financial backing but a whole ecosystem of support. However, it's not without its trade-offs. This article delves into the multifaceted world of venture capital, from the substantial resources and invaluable networks it brings to the potential for diluted ownership and pressure for rapid growth. Whether you're considering venture capital for your startup or simply curious about its implications, this guide will provide you with a balanced perspective. Advantages of Venture Capital for Startups Venture capital offers a plethora of advantages to startups that go beyond mere financial investment. It's about injecting your business with the resources, knowledge, and networks needed to thrive in competitive markets. Let's explore how venture capital can catalyze your startup's growth and success. Related resource: How to Find Venture Capital to Fund Your Startup: 5 Methods Access to Significant Capital Venture capital provides startups with significant capital that can be pivotal for scaling operations, research and development, and entering new markets. Unlike traditional financing, which may be limited or come with stringent repayment terms, venture capital offers a substantial financial runway, allowing startups to focus on growth without the immediate worry of financial constraints. Expertise and Mentorship Beyond capital, venture capitalists often bring a wealth of expertise and mentorship to the table. They offer strategic guidance, industry insights, and operational advice that can help navigate the complexities of scaling a startup. This mentorship can be invaluable in avoiding common pitfalls and accelerating growth. Networking Opportunities Securing venture capital also opens the door to a vast network of industry contacts, potential partners, and clients. These connections can be instrumental in business development, partnerships, and even future fundraising efforts. The right introductions can significantly accelerate a startup's trajectory. Credibility and Prestige When a VC firm decides to invest, it does so after thorough due diligence, assessing the startup's potential for growth, market opportunity, and the strength of its team. This rigorous evaluation process means that once a startup secures venture capital, it's seen as having passed a critical test of viability and potential. This perception can be incredibly beneficial in several ways: Attracting Further Investment: With the initial VC backing, other investors are more likely to take an interest in the startup. VC funding can serve as a validation of the startup's potential, making it easier to raise additional rounds of funding. The initial VC investment often acts as a catalyst for attracting more capital, as it reduces the perceived risk for subsequent investors. Talent Acquisition: Top-tier talent looks for opportunities that offer both growth potential and stability. VC funding enhances a startup's appeal to such individuals by providing evidence of both. The funding signifies that the startup has enough resources to scale and supports its long-term vision, making it a more attractive place for ambitious professionals looking to make their mark. Market Positioning: A startup with venture capital backing can also command more attention in its market. Customers, suppliers, and partners often view VC-funded startups as more credible and stable, making them more likely to do business with them. This enhanced credibility can be crucial for startups looking to establish themselves in competitive markets. Brand Visibility: VC firms often have extensive networks and platforms for promoting their investments. When a startup secures VC funding, it can benefit from this exposure, increasing its visibility in the industry and among potential customers. No Repayment Requirement One of the most significant advantages of VC funding over traditional loans is the absence of a repayment obligation if the startup fails. The advantage of not having to repay the investment if the startup fails frees entrepreneurs from the weight of debt, allowing them to focus fully on their vision and growth. This model not only facilitates innovation and risk-taking but also builds a partnership framework between investors and founders, where both parties are equally invested in the success of the venture. This risk-sharing model has several advantages for startups: Encourages Risk-taking: Knowing that failure will not result in crippling debt allows entrepreneurs to pursue innovative, high-risk ideas that could lead to significant market disruptions. Focus on Growth: Without the burden of debt repayment, startups can channel their resources into growth and development rather than diverting funds to service debt. Attracts Talent: The potential for significant returns without the personal financial risk associated with debt can make startups more attractive to top talent. Investor Support: Since VCs have a vested interest in the startup's success, they are more likely to provide support, advice, and connections to help the business grow. No Debt or Interest In traditional financing models, such as bank loans or debt financing, the borrower is required to repay the principal amount along with interest, regardless of the business's success. This obligation can place a considerable strain on a startup's cash flow, especially in its early stages when revenues may be unpredictable or non-existent. Moreover, in the event of business failure, entrepreneurs may still be liable for the outstanding debt, which can lead to personal financial ruin in the case of personally guaranteed loans. Venture capital, on the other hand, is invested in exchange for equity in the startup. VCs are well aware of the high risk associated with these investments, including the possibility that the startup may fail. Their return is contingent upon the success of the business, typically realized through an exit event such as an initial public offering (IPO) or acquisition. If the startup fails, the venture capital invested does not need to be repaid. This setup aligns the interests of the investors with those of the founders, as both parties succeed or fail together. Scalability Venture capital is a critical accelerator for startups aiming to make a market impact, providing not just funds but a springboard for rapid growth and scalability. This financial backing enables startups to swiftly penetrate and expand in markets, pushing innovation and product development at an accelerated pace. It facilitates the hiring of top talent essential for scaling operations and executing ambitious growth strategies. Furthermore, venture capital empowers startups to engage in strategic partnerships and acquisitions, enhancing their market reach and product offerings. It supports substantial investments in marketing and brand building, crucial for establishing market presence and driving customer acquisition. Additionally, venture capital aids in geographic expansion, opening doors to new markets and global opportunities. Disadvantages of Venture Capital While venture capital can be a powerful tool for startups, it's not without its disadvantages. The pursuit of venture funding comes with considerations that can affect your startup's trajectory and founding principles. Let's examine the potential downsides to be mindful of. Dilution of Ownership Accepting venture capital typically involves exchanging equity in the startup for financial investment, leading to a dilution of the founders' ownership stake. This means that founders own a smaller percentage of their company after the investment than they did before. While this influx of capital is crucial for growth, it also results in founders sharing control and potential future profits with the venture capitalists. This trade-off is an essential consideration for startups, as it impacts the founders' influence over company decisions and their share of the financial rewards in the event of the company's success. Less Control Venture capital investors frequently seek a say in business decisions as a condition of their investment, potentially leading to diminished control for the original owners. This involvement can range from strategic direction to operational changes, reflecting the investors' stake in the startup's success. While their expertise can be beneficial, it may also result in founders having to compromise on their vision or make decisions aligned with the investors' goals, rather than their own. This dynamic underscores a critical trade-off in venture funding: accessing significant capital and expertise at the cost of sharing decision-making power. Pressure for High Growth VC funding often comes with the expectation of rapid, substantial returns, placing intense pressure on startups to grow quickly. This urgency for growth can sometimes push startups towards aggressive expansion strategies that may not align with sustainable or prudent business practices. The drive for quick scalability and market dominance can lead to short-term decisions that prioritize speed over stability, such as overextending financial resources, neglecting quality control, or unsustainable customer acquisition practices. While rapid growth can propel a startup to success, this pressure can also risk its long-term viability and ethical standing, challenging founders to balance investor expectations with sustainable development. Length and Complex Process Securing venture capital is a time-consuming and complex process, marked by an extensive due diligence phase that demands significant attention and resources from startup founders. The journey to obtain venture funding involves multiple steps, including preparing detailed business plans, financial projections, and engaging in negotiations with potential investors. Venture capitalists conduct thorough due diligence to assess the viability, market potential, and team capability of the startup. This scrutiny can include deep dives into the startup's financials, business model, competitive landscape, legal compliance, and more. The process ensures that investors are making informed decisions but also requires startups to be transparent and well-prepared. This exhaustive vetting process, while necessary for securing investment, can divert founders' focus from day-to-day operations and delay immediate business development efforts. The complexity and length of securing venture capital not only test a startup's readiness and resilience but also its capacity to balance long-term fundraising goals with short-term business needs. Focus on Exit Strategy Venture capitalists typically enter investments with a clear exit strategy in mind, aiming for a significant return on their investment through a sale, merger, or public offering of the startup. This focus on exit events is fundamental to the venture capital model, as it dictates the timeline and manner in which investors expect to realize their profits. However, these exit strategies may not always align with the long-term vision of the startup founders. Founders often embark on their entrepreneurial journey with a passion for their product or service and a vision for long-term growth and industry impact. In contrast, venture capitalists' emphasis on an exit within a certain timeframe can pressure startups towards rapid scaling and market positioning that prioritizes short-term valuation increases over sustainable growth and development. This misalignment can lead to strategic conflicts, where founders are pushed to make decisions that optimize for an exit event rather than the long-term health and vision of the company. Navigating these differing objectives requires careful negotiation and alignment of interests between founders and their venture capital partners to ensure that the company can achieve both its immediate goals and long-term ambitions. Alternatives to VC Funding For startups wary of the potential downsides of venture capital, there are several alternative funding options available. These alternatives can offer different advantages, from less dilution of ownership to more aligned growth strategies. Let's explore a few of these options. Related resource: Types of Venture Capital Funds: Understanding VC Stages, Financing Methods, Risks, and More Angel Investments Angel investments represent a vital source of capital for startups, typically coming from affluent individuals who provide funding in the early stages of a company's growth. Unlike venture capitalists, who usually invest through funds with money pooled from various sources, angel investors use their own wealth to support startups they believe in. These investors often offer capital in exchange for equity in the company, acquiring a stake in the startup's future success, or sometimes through convertible debt, which can later be converted into equity. Angel investors not only provide financial backing but can also bring valuable expertise, industry connections, and mentorship to the startup. Their investment can be crucial during the initial phases when the startup may not yet qualify for venture capital or bank loans due to the high risk associated with early-stage ventures. By opting for angel investment, founders can secure the necessary funds to kickstart their operations, refine their product, or expand their market reach, all while potentially gaining a supportive advisor in their angel investor. This form of investment offers a blend of financial support and personal engagement, making it an attractive option for startups seeking both capital and guidance. Revenue-based Financing Revenue-based financing is a funding model where investors provide capital to startups in exchange for a percentage of the company's future revenues until a predetermined amount is repaid. This form of financing offers a flexible repayment schedule that directly correlates with the business's performance, making it distinct from traditional equity or debt financing. In this model, repayments increase when revenue is high and decrease during slower business periods. This flexibility is particularly advantageous for startups with fluctuating revenue patterns, as it aligns repayment obligations with their financial capacity. Unlike equity financing, revenue-based financing does not require founders to give up ownership stakes, nor does it impose fixed repayment terms like traditional loans. Instead, the total repayment amount is usually a multiple of the invested capital, agreed upon at the outset. Revenue-based financing is attractive for businesses that generate consistent revenues but may not yet be profitable or for those looking to avoid dilution of ownership. It allows startups to access the capital they need for growth, such as expanding operations, entering new markets, or increasing marketing efforts, without the pressures of equity dilution or rigid debt schedules. This model promotes a partnership approach, with investors directly vested in the company's revenue growth and success. SBA Loans Small Business Administration (SBA) loans are a government-backed financing option designed to support the growth and sustainability of small businesses. These loans are facilitated by the SBA, a U.S. government agency, in partnership with banks and lending institutions. The SBA guarantees a portion of the loan, significantly reducing the risk to lenders and enabling more favorable terms and lower interest rates for borrowers compared to traditional bank loans. SBA loans are known for their relatively lower interest rates and longer repayment terms, making them an attractive option for startups and small businesses seeking funding without the burdensome costs associated with conventional loans. The variety of SBA loan programs caters to different business needs, from purchasing equipment and real estate to providing working capital and funding for expansion projects. One of the key benefits of SBA loans is their accessibility to businesses that might not qualify for standard bank loans due to requirements for higher credit scores or collateral. The SBA's backing means that businesses with solid plans and potential for success have a greater chance of obtaining the financing they need, even if they're in the early stages of growth or lack extensive credit history. However, the process of applying for an SBA loan can be more complex and time-consuming than other financing options, requiring detailed business plans, financial statements, and projections. Despite these challenges, the favorable terms, lower interest rates, and government support make SBA loans a compelling choice for small businesses and startups looking for a stable and affordable source of funding. Connect With the Right Investors for Your Startup With Visible Venture capital offers startups a blend of significant capital, expertise, and networking opportunities, propelling rapid growth and market impact. However, it also brings challenges such as diluted ownership and intense pressure for quick returns. Alternatives like angel investments, revenue-based financing, and SBA loans present different benefits and trade-offs, catering to various startup needs. For founders navigating these options, Visible provides a comprehensive platform to find and connect with the right investors, track a fundraise, share a pitch deck, and manage stakeholder communications effectively. Give Visible a free try for 14 days here. Related resource: A Guide to How Venture Capital Works for Startups and New Investors

Fundraising is difficult. Building a process and system to attract and close investors can help move a fundraise along. At Visible, we often compare a venture fundraise process to a traditional B2B sales and marketing funnel. At the top of a fundraising funnel, you need to find the right investors for your business. Like identifying a qualified lead for sales and marketing, you need to define the investor that is a fit for your business. In the middle of the fundraising funnel, you need to nurture potential investors with meetings, emails, pitch decks, and more. At the bottom of the fundraising funnel, you are ideally closing new investors and delighting them with regular communication. Related Resource: A Quick Overview on VC Fund Structure In order to help you find the best investors for the top of your fundraising funnel, we created an investor database, Visible Connect. If you’re a founder located in Japan, check out our list of investors using Connect below: 1. Genesia Ventures As put by the team at Genesia Ventures, “It would be no exaggeration to say that the world has entered a new era through digital technologies, and startups have played and are still playing pivotal roles in this game-changing transformation. The large industries and social infrastructure that have thus far led the world are on the brink of new development through the disruptive potential of the digital sphere. Simultaneously, developed regions are establishing new industries through a digital infrastructure that is not dependent on traditional modalities or assets. Through seed and early-stage investment in startups, we believe we can help achieve a thriving society heralded by digital technology, and we are committed to supporting these startups and accelerating their growth, ushering in a world in which everyone can create wealth and has equal opportunities.” Learn more about Genesia Ventures by checking out their Visible Connect profile → Location Genesia Ventures has offices in Japan, Indonesia, and Vietnam. They invest in companies across Southeast Asia and Japan. Portfolio Highlights Some of Genesia Ventures’ most popular investments include: Nudge Activaid Airboxr Investment Focus Genesia is focused on seed-stage and early-stage investments. Related Resource: The Understandable Guide to Startup Funding Stages 2. Global Brain As put by their team, “Global Brain’s mission is to “bring unimaginable innovation into society through business creation.” Our surrounding environment is significantly changing due to global risks including extremely intense global competition, pandemics, and global warming. We believe that in such a time of uncertainty lies the greatest opportunity. The power of startups is vital to overcome unprecedented situations. The global economy is now largely led by many companies created right after the financial crisis.” Learn more about Global Brain by checking out their Visible Connect profile → Location Global Brain has an office in Tokyo and 9 other office locations across the globe. Portfolio Highlights Some of Global Brain’s most popular investments include: Base Food August Fluently Investment Focus Global Brain invests in companies across all stages and all industries. 3. Monozukuri Ventures As put by their team, “Monozukuri Ventures is a venture capital firm based in Japan and North America specializing in hard tech. In addition to the investment, we have a dedicated team to support hardware prototyping, mass production, and business development. We aim to create a world where entrepreneurs and startups can quickly produce and sell high-quality products, even in small quantities. Our mission is to help the world’s entrepreneurs rapidly deliver high-quality products to the market, regardless of production volume. As a global ecosystem contributor, we provide founders with essential resources such as investment, mentorship, prototyping know-how, manufacturing expertise and community support.” Learn more about Monozukuri Ventures by checking out their Visible Connect profile → Location Monozukuri Ventures has offices in Japan and North America and invests in companies in Japan and the US. Portfolio Highlights Some of Monozukuri Ventures’ most popular investments include: Mira Sembient HiberSense Investment Focus Monozukuri Ventures invests across all stages and primarily funds companies building hard tech. 4. D4V (Design for Ventures) As put by the team at D4V, “We help startups deliver not only financial returns but also positive impact on the world. Our work aims to support and strengthen the culture of entrepreneurship in Japan and beyond, accelerating the growth of a more entrepreneurial economy.” Learn more about Design For Ventures by checking out their Visible Connect profile → Location D4V is located in Tokyo and primarily invests in entrepreneurs and companies located in Japan. Portfolio Highlights Some of D4Vs most popular investments include: Cinnamon AI HOMMA Nudge Investment Focus D4V is focused on early-stage investments. Some of the markets and verticals that they are focused on include: Digital Disruption and Industry Transformation New Lifestyles and Cultures Financial Tools and Wellbeing Lifelong Learning and Empowerment Personal and Public Health 5. Benhamou Global Ventures As put by their team, “BGV is an early-stage venture capital firm focused on global Enterprise 4.0 technology innovation. The partners at BGV drove successive waves of enterprise technology disruption in Silicon Valley and have years of company-building experience. Founded by Eric Benhamou, former chairman and CEO of 3Com, Palm and co-founder of Bridge Communications, BGV is comprised of global operating executives and investors, and is often the first and most active institutional investor in its portfolio companies.” Learn more about BGV by checking out their Visible Connect profile → Location BGV has offices across the globe and invests in companies across the globe. BGV has an office in Kyoto. Portfolio Highlights Some of BGV’s most popular investments include: Kardinal Everest Labs Anch.ai Investment Focus BGV is focused on early-stage investments and specializes in “Enterprise 4.0 companies.” As put by their team, “Enterprise 4.0 refers to a new wave of B2B startups that combine artificial intelligence, intelligent automation and proprietary access to data to deliver actionable insights for enterprise businesses. These disruptive startups provide full stack solutions in the form of hyper-niche vertical solutions, programmable cloud infrastructure or cloud-native security innovations to generate immediate business value and significant ROI improvements for their customers.” Related Resource: How AI Can Support Startups & Investors + VCs Investing in AI 6. Sozo Ventures As put by their team, “Sozo Ventures was formed in 2012 to invest in and support technology-enabled ventures with their global expansion. We invest in category leaders transforming global industries with advanced data technologies, ecommerce, enterprise cloud, fintech, IoT and healthcare IT, and other advanced solutions. We are structured to connect the most ambitious entrepreneurial teams with the world’s most advanced and respected customers and distributors. We are at our best when we can share our expertise well before expansion strategies are set.” Learn more about Sozo Ventures by checking out their Visible Connect profile → Location Sozo Ventures has office locations in Tokyo and Redwood City, CA. Sozo invests in companies across the globe. Portfolio Highlights Some of Sozo’s most popular investments include: Zoom Twitter Coinbase Investment Focus As put by the team at Sozo, “We look for companies that are at the ‘Readiness’ Stage – a term coined internally that details companies that have a strong management team and culture, stable long-term investors, credible and recognizable customers and traction, and appropriate organizational structures for target international customers. Readiness is achieved by different businesses at different stages – and Sozo is set up to be a long-term flexible supporter of companies that we partner.” 7. Beenext As put by the team at Beenext, “We don’t just invest in startups, we get ‘invested in them. BEENEXT is a partnership of the founders, by the founders, and for the founders. When a founder partners with us, it partners with the entire BEENEXT community. We provide an opportunity for co-creation, inclusive growth, knowledge-exchange, mentorship and capital support.” Learn more about Beenext by checking out their Visible Connect profile → Location Beenext has an office in Singapore but invests in companies in Japan, Southeast Asia, India, and the US. Portfolio Highlights Some of Beenext’s most popular investments include: AngelList SixSense Wellthy Investment Focus Beenext invests in companies across the globe and across many sectors and industries. Looking for Investors? Try Visible Today! 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. Related Resource: Private Equity vs Venture Capital: Critical Differences

Raising venture capital is challenging. On top of building a product, hiring a great team, and scaling revenue — seed-stage founders are responsible for raising capital. Throughout a seed stage fundraise, different investors will want to see different assets and data points. One thing that founders can expect most if not all, investors to see is a seed round pitch deck. Learn more about how to build a pitch deck for your seed stage funding below: What is a Seed Round Pitch Deck? A seed round pitch deck is a presentation designed to share your vision, business plan, metrics, and other insights to help raise capital from investors. Ultimately, the goal of a pitch deck is to move investors down your fundraising funnel and to improve your odds of raising capital. Learn more about crafting your seed round pitch deck below: What Investors Want To See in Seed Round Pitch Decks Companies that are raising funds for the first time are going to be in need of a seed round pitch deck to entice and share their story with investors. Usually, companies raise anywhere up to 2 million (the average is 2.2 million but can be up to 5 million) for their seed round from either angel investors, friends & family, or venture capitalists. In a (pre) seed round it’s common to raise from angel investors, startup accelerators, or friends and family. With the explosion of pre-seed stage and seed-stage investors, venture capital is becoming a more approachable first round of capital. You can find a global list of the top active seed-stage investors here. No matter who you’re pitching though, there are certain expectations for an early-stage/seed-stage startup to present in their pitch deck. Founders should tailor and adjust their pitch based on who they’re reaching out to, but great seed round pitches come down to a few core things: a succinct but exciting story, an exceptional team, product potential or traction, and a growth plan. A Succinct but Exciting Story You’ll need a clean, clear narrative and to show you have a vision and/or plan for the future of your company since things are still in development. Try to not only excite but inspire as well. Make your audience want to invest in you, your vision, and your company’s purpose. An Exceptional Team Most VCs will tell you that having a rock star team is one of the most important things to them. What you’ll want to do in this slide is establish credibility, demonstrate expertise, build trust in the idea and company. Product Potential or Traction If you have proven some product-market fit, gathered user/customer metrics, or generated revenue make sure to share this as a proof of concept. Going into your first round of capital, investors will also understand that you may have limited or no data to start. A Growth Plan Even if you may not have a product built or know the exact business model yet you still need to show an understanding of the market/customers, business, and scalability. Startups should make their stories and decks as data-driven as possible to drive home the point and bring credibility to what is being shared. Check out our guide, “Building A Startup Financial Model That Works,” to help model your company’s future. Check out Visible Connect, our free investor database, to filter and find the right investors for your business at any fundraising stage. Our Step-by-Step Seed Round Pitch Deck Template Seed-stage startups should approach their first pitch deck differently than they would in other later rounds because they usually won’t have very many stats or users to go off of. This is why storytelling is key as well as finding elements to focus on like the team and competitive advantages so that the investor can understand the future value of the company, since there might not be much else to base it off on at this stage in your company. Download our free pitch deck template here or below: Cover/Title This slide introduces your company so you can keep it simple and just include any important information such as your logo, company name, contact information, and a one-liner. The Team The team is one of the most important factors to VCsseed investors when considering investing in a seed round since it is one of the keys to a company's success. Highlight how each person brings a unique and beneficial aspect to the team, and role, and if it applies the companies mission, the problem you’re trying to solve and/or competitive advantage. This lays a good foundation for the rest of the presentation so investors know who they’re speaking with and gives more credibility to what is being said. The Problem Make investors understand how the problem impacts the world/ people and why there is a need for something about it to be fixed. The Solution State that the right solution for this problem hasn’t been solved yet or can be improved upon. Then how were you able to innovatively come up with a way to fix the problem, why will it benefit customers, and why you are the best company to do so. This is in essence your elevator pitch and should be kept short, compelling, and to the point (30 seconds is a good rule of thumb). Traction This slide can also focus on the product if you haven’t already collected any metrics which validate relevant company or user information. If you already have data and are tracking KPI’s this is where you want to add it! With Visible, you can track and automate your startup’s key metrics and build beautiful charts and dashboards for your seed-round pitches. Market Size and Opportunity Here you will include all relevant information on the opportunity you’re looking to take advantage of and what the size of that market may be. Something important to note is the importance of tackling a niche market first and investors won’t mind if the market size is small if you are planning on dominating the space. “Sequencing markets correctly is underrated, and it takes discipline to expand gradually. The most successful companies make the core progression—to first dominate a specific niche and then scale to adjacent markets—a part of their founding narrative.” – Peter Thiel, Zero to One Read more on How to Model Total Addressable Market (template Included as well) where we share: What is Total Addressable Market (TAM)? How to Calculate TAM The Free Visible Total Addressable Market Template and Evaluation Model Where Does Your Total Addressable Market Start (and End)? Why Knowing Your Total Addressable Model is Important Building Your Total Addressable Market Model Competition Analysis Just because you have competitors doesn’t mean it’s not a business you should start but rather you need to have a clear understanding and plan on what your advantage is. If there are existing companies in the space it can validate there is a need but investors and customers will need to understand why you are the better choice. Financials/Metrics Here you want to be able to prove profitability as well as share what the hypothetical financial future (3-4 years) of your company will look like. At the seed stage, this will be more high-level information as you again don’t have much to go off of as of now but do include revenue and user/ customer projections. Why Now/Why Me? This is another place for you to pitch yourself and your team’s expertise, and the company's secret sauce. What makes this combo unique, what’s your competitive advantage, and strategy. Timing is also one of the essential factors that can make or break a company. Justify why you’ve decided to enter the market at this very moment and either explain how this will help you, or how you expect to defeat the hurdles of being early. If you are early then end by making it clear that you will be the first which will allow you to win the market. If you’re late in the game then you’ll want to explain what your competitive advantage will be and how you can utilize learnings and data that is available because of this. Every disadvantage can also be advantageous in its own way as well. The Ask The ask can often be an underutilized section in investor updates and founders might also not realize it’s also something great to include in a pitch deck as well. An investor shouldn’t only be seen as a capital resource but also as a knowledge and connection resource. For investors (especially in this stage) it is also good for them to know where you need help and allows them (and you) to see if they are in a position to do so. If they do decide to invest it is in their best interest to do what they can to help and contribute to the success of the business. Want some inspiration? Check out our article 18 Pitch Deck Examples for Any Startup or download our free pitch deck template below: Related Resource: Pitch Deck Design Cost Breakdown + Options The Best Seed Funding Pitch Deck Examples There are thousands of other founders and startups that have successfully raised a seed round in the past and shared the deck they used. Check out a few of our favorite pitch deck examples below: Airbnb Pitch Deck Well before their publicly traded stock and catchy design, Airbnb, or AirBed&Breakfast, was pitching investors to raise $600k to get things off the ground. The Airbnb seed round deck is focused on storytelling and hooking potential investors Uber's Original Pitch Deck Like Airbnb, Uber has humble beginnings and a different name, UberCab. Their original pitch deck showcases the importance of keeping your pitch deck to the point. It is focused on facts and data, not fluff. Buffer's Seed Round Pitch Deck Buffer is a social media toolkit for small businesses. They raised a $500k seed round and shared the deck (and their breakdown) on their blog. The Buffer seed round deck does a great job of focusing on traction. The Buffer team reached out to 200+ investors, sat 50 meetings, and ultimately had 18 investors. How to Pitch Seed Stage Investors Once your deck is finished the pitching process begins. Firstly you’ll want to find investors to reach out to which you can do on our Connect Investor Database. For tips on emailing your first investors check out 5 Strategies for Cold Emailing Potential Investors. Save your time and theirs by only reaching out to investors who match crucial factors such as the industry they’re looking to invest in, funding amount, stage, and geography. These are factors that can also be filtered on our connect database and once you’ve found a good match you can have their profile added to our fundraising CRM. Once you start reaching out and giving your first pitches you’ll start receiving feedback which should be seen as a gift and immediately implemented back into your deck. See it as a work in progress and change where needed. For instance, take notice of which slides are grabbing investors’ attention and maybe move those to the beginning or take aspects from it to add to other slides. In terms of giving a good compelling pitch in person- being a confident and a good storyteller goes a long way. Investors should also feel your passion, energy, and ability to drive the company forward. To enhance these qualities people have found that taking a stand-up comedy or public speaking class has been helpful. Also researching what makes good storytelling can be advantageous. How Visible Helps Startups Raise Capital There is no one-size-fits-all pitch deck solution these points are meant to help guide the process but you should also see what makes sense for your company. Fundraising can be boiled down to storytelling. We believe a VC fundraise mirrors a B2B sales motion. The fundraising process starts by finding qualified investors (top of the funnel) and building relationships (middle of the funnel) with the goal of them writing a check (bottom of the funnel). Just as a sales team has dedicated tools for their day-to-day, founders need dedicated tools for managing the most expensive asset they have, equity. Our community can now find investors, track a fundraise, and share a pitch deck, directly from Visible. Easily upload your deck, set your permissions, and share your deck with potential investors via a unique link (check out an example deck here). In return, we’ll surface the analytics that matter most so you can better your odds of closing a new investor. Try Visible here.

Raising capital as a startup founder is difficult. On top of building a product, hiring a team, and scaling revenue, founders need to make sure that their business is funded for success. If you are a founder starting to raise your seed round, check out our guide below: What is Seed Funding? Seed funding is capital that a company raises in its earliest stages — typically the earliest form of outside capital. Seed funding is integral to getting ideas off the ground and giving a potential company and idea life. After a seed round, startups go on to raise future rounds of capital — e.g. Series A, Series B, Series C, etc. You can learn more about seed fundraising and future rounds in our post, The Ultimate Guide to Startup Funding Stages. What is the Purpose of Seed Funding? The purpose of seed funding is simple. It is intended to give a founding team enough capital to pursue a certain idea or market to prove if the concept works. Different investors may have different requirements for a seed-stage company but generally, they are pursuing “product-market fit.” As Marc Andreessen, Founder of Andreessen Horowitz, defines it, “Product/market fit means being in a good market with a product that can satisfy that market.” Seed size rounds are exploding in size and the purpose may be vary quite a bit from company to company and investor to investor. When is it the Right Time to Raise Seed Funding? The timing to raise seed funding for a startup can be tricky. First and foremost you should approach seed investors when you believe you have a strong enough product, market, or team (or combination of those) to build a company that deserves to be venture-backed. This means that you can scale and grow to the valuations where an investor can generate a solid return on your company. As the team at Y Combinator writes, “Founders should raise money when they have figured out what the market opportunity is and who the customer is, and when they have delivered a product that matches their needs and is being adopted at an interestingly rapid rate. How rapid is interesting? This depends, but a rate of 10% per week for several weeks is impressive. And to raise money founders need to impress. For founders who can convince investors without these things, congratulations. For everyone else, work on your product and talk to your users.” If you believe that your business has what it takes to generate massive returns for an investor, it is likely time to start your fundraising process. Related Resource: What is Pre-Revenue Funding? How to Raise Seed Funding for Startups The key to successfully raising a seed round is to have a system and process in place to raise capital. Just as you have a systematic approach to your sales and marketing funnel the same should be done for your fundraising efforts. Regarding fundraising, we like to think of it as similar to a traditional sales and marketing funnel for a B2B enterprise business. In its simplest form, a traditional sales & marketing process can be broken into 3 steps: Attracting and adding qualified leads to your top of the funnel on a regular basis. Nurturing and moving the leads from through the funnel with the goal of closing them as a customer. (aka get them into a buying process) Serving customers and creating a great experience until they become evangelists or promoters. You can convert those same ideas into a “Fundraising Funnel” that looks something like this: Filling the top of your funnel with qualified potential investors. These investors generally come from cold outreach, warm introductions, or inbound interest. You want to make sure these fit your “ideal investor persona” — right sector, stage, geography, check size, etc. Nurturing and moving investors through your funnel. While you may not be actively trying to close new investors and add capital you should constantly be working the top of your funnel. Staying fresh on the mind of potential investors 365 days a year using traditional marketing tactics will pay dividends when it’s time to pull the string on a new round of capital. Pro tip: send them a lite version of your quarterly investor update. Building relationships and communicating with your current investors. Customer success is key to maintaining a strong relationship with customers once they reach the bottom of the funnel. The same can be said for your investor funnel. As a founder, one of the first places to look for capital is current investors. One of the first places a new investor will look to for guidance will also be your current investors. At the end of the day your current investors should be the ultimate evangelist for your business. Related Resource: Startup Mentoring: The Benefits of a Mentor and How to Find One Just like a standard B2B sales process, you need to have “leads” (read: investors) coming to the top of your funnel so you can move them through the funnel to ultimately close them (read: close your round). To get started, you need to understand who the right investor is for your business and how you fit into their greater vision and can be of benefit to them (more on this below). We sat down with Jonathan Gandolf, CEO of The Juice, to uncover his learnings and thoughts from his seed raise. Give episode 1 a listen below: How Much Seed Funding Should You Raise? The average round of seed funding has gradually grown since 2014. However, the last few years have been a turbulent time in the venture world, and have seen the average seed round size level out since 2021. Deciding how much seed funding you should raise is entirely up to you, the founder. As a general rule of thumb, you should raise enough to reach profitability or to the point where you can easily reach your next “funding milestone.” This can be a revenue number, user benchmark, etc. but generally speaking, should be within 12-18 months. To model this you need to have a thorough understanding of how your business functions and what it will take to get to the next milestone. Understand how much it cost to acquire a new customer, retain a customer, how much an engineer costs, salesperson, etc. To help, you can check out our popular financial modeling tools here. Related Reading: Building A Startup Financial Model That Works Types of Seed Funding for Startups There are a few types of seed funding. For the sake of this post we will mostly talk about raising venture capital but to cover off on a few other options: Friends & Family One of the most common sources of seed funding comes from friends and families. This often follows a similar approach to the funnel discussed above but likely less intensive as you, the founder, likely have an existing relationship with this group. Keep in mind that you are investing their capital in a highly risky asset class and they need to be made aware of this situation. Crowdfunding Another form of “seed funding” that is becoming more popular is crowd funding. Sites like Republic and StartEngine allow startups to raise equity rounds from individuals so check sizes can be as little as $100. Non-Traditional Firms More firms are coming out with new financial instruments to offer as an alternative to venture capital. Earnest Capital is one of our favorites. Earnest Capital provides early-stage funding, resources and a network of experienced advisors to founders building sustainable profitable businesses. Earnest Capital uses their own financing instrument called a Shared Earnings Agreement (SEAL). Check out other non-traditional investment funds here. Related Resource: Advisory Shares Explained: Empowering Entrepreneurs and Investors Incubators As put by the team at TopMBA, “A startup incubator is a collaborative program designed to help new startups succeed. Incubators help entrepreneurs solve some of the problems commonly associated with running a startup by providing workspace, seed funding, mentoring, and training. The sole purpose of a startup incubator is to help entrepreneurs grow their business.” Incubators are hit or miss if they come with capital. Some will include a small injection of capital while others are solely resources to help founders get their business off the ground. Check out our list of incubators and startup studios here. Accelerators As put by the team at Silicon Valley Bank, “Private startup accelerators do provide funding and the money helps cover early-stage business expenses, as well as travel and living expenses for the three-month residency at the in-person startup accelerators. However, the funds and guidance come at a price. Just like any other equity funding, signing an accelerator agreement typically means giving up a slice of your company. Startup accelerators generally take between 5% and 10% of your equity in exchange for training and a relatively small amount of funding.” Check out our list of active accelerators here. Angel Investors Angel investors are a great starting point for any founder. Similar to friends and family investors, an angel investor is an individual that is looking to diversify their investment portfolio and back intriguing startups. However, angel investors tend to be more seasoned professionals and generally have an understanding of the risks of investing in a startup. Related Resource: How to Effectively Find + Secure Angel Investors for Your Startup Corporate Seed Funding A newer form of seed funding is corporate venture arms and funds. As large corporations continue to seek innovation and new revenue streams, the development of corporate venture funds have become popular. Corporations generally partner with a proven VC (or launch a fund internally) and deploy capital across seed-stage companies that fit into the company's thesis or growth plans. How Long Does it Take to Raise Seed Capital Raising seed capital for a startup can be a burdensome process for founders. Brett Brohl of Bread & Butter Ventures, suggests five months to raise capital. It can be broken down into the following rules (which Brett calls the 1-3-1): One Month — Building investor lists and getting documents ready Three Months — Actively pitching and taking meetings with potential investors One Month — Closing investors and going through due diligence Brett's 1-3-1 rule is a great starting point. Other peers and investors will suggest a similar timeline — we typically see founders raise seed capital anywhere between three and nine months. Financing Options for Seed Rounds The different finance instruments and options available to founders raising a seed round can feel intimidating. There are countless options and different legal meanings that make things complicated. Seed round financing options can be broken into two buckets — convertible debt or SAFEs and equity. Convertible Debt & SAFEs Convertible debt and SAFEs have become the norm in the venture world over the last decade. YC popularizes SAFEs and has made templates available for startups across the globe. You can learn more about SAFEs in our post, "The Startup's Handbook to SAFE: Simplifying Future Equity Agreements." Equity Pure equity financing has become less common in the venture world since the emergence of SAFEs. Equity financing means setting a valuation and stock prices and selling new shares to investors. As always, we recommend consulting with a lawyer when determining the financing options that are best for your business. How to Build Your Seed Round Pitch Deck Fundraising is very much a process. Along the way, there are tools and resources that founders can leverage to better tell their story. One of those tools is the pitch deck. Pitch decks are a powerful tool that can help you tell that story. Different investors will have different opinions about pitch decks. Some investors might want to receive them before a meeting, some might only want them sent via PDF or link, and some investors might not care if you have a pitch deck at all. A pitch deck is about the content that you are sharing. However, there is a fine line between beauty and functionality when building your seed stage pitch deck. Investors will likely have feedback that will require changes but you do want to display it in a meaningful way. To learn more about crafting the perfect pitch deck for your seed round check out our post, Our Favorite Seed Round Pitch Deck Template (and Why It Works). The 5 Most Important Elements of a Successful Pitch Deck There is no prescriptive pitch deck template that will work for every startup, but there are a few things investors generally want to and expect to see in a pitch deck: Concise & Compelling — you want your pitch deck to give investors the information they need in a concise and straightforward way. This includes your problem and solution. Related: How to Write a Problem Statement [Startup Edition] The Market — investors want to understand the market you are operating in and why you have an opportunity to seize a large percentage of the market and become a large company. Related: How to Model Total Addressable Market (Template Included) Acquisition Model — going hand-in-hand with the market is your acquisition model. You want to demonstrate to investors that you have a clear and scalable way to attract new customers. Related: Pitch Deck 101: The Go-to-Market and Customer Acquisition Slide Financials — Some investors will want to see financial projections and others might not care at the seed stage because they are typically wrong. So why include them? Investors want to see how you think about your future and are thinking through metrics and models correctly. Related: Building A Startup Financial Model That Works Traction — While it might be limited at the seed stage, investors want to see what you’ve done to date. What product have you built, customers, attracted, and more. Use Visible to share your pitch deck. Once you’ve built out your target list of investors, you can start sharing your pitch deck with them directly from Visible. You can customize your sharing settings (like email-gated, password-gated, etc.) and even add your domain. Give it a try here. How to Choose Investors for Seed Funding Once you have defined what your ideal investor looks like it is time to start researching, finding, and contacting them. To find the right investors we suggest browsing different databases and networks to find your perfect fit. You may already have investors in mind or have networked with investors in the past — awesome start! If you want to continue to find investors, Visible Connect is our free database built by founders, for founders. Visible Connect allows founders to find active investors using the fields we have found most valuable (like check size, geography, traction metrics, etc.). As you begin to browse and find investors for your startup, we suggest keeping tabs on them. You most likely have an involved CRM or process to keep tabs on your current and potential customers. Should the same be true for your investors? This can be in the Visible Fundraising CRM (you can add investors directly from Connect into the CRM) or a simple Google Sheet. No matter what you decide, make sure you have a system in place to track and monitor conversations to make your life easier moving forward. Related Reading: How To Find Private Investors For Startups Building Your Investor List As you start to build your list of potential investors — we suggest breaking it down into 3 “tiers” — Tier 1, Tier 2, and Tier 3. Tier 1 are the firms you believe to be most qualified, followed by tier 2 and 3. We highly encourage taking on these investors in “sets.” This means grouping investors in sets of ~5 (suggest trying to keep sets to 5 investors or less) so you have the opportunity to better evaluate and tailor your pitch as you move through your sets. As a rule of thumb, you’ll want to make sure you mix in Tier 1, 2, and 3 investors in each “set.” For example, if you pitch all of the Tier 1 investors in the first set, you’ll potentially miss an opportunity to tailor your pitch and only be left with less qualified (Tier 2 and 3) investors. Related Reading: What is an Incubator? What is the Difference Between Seed vs. Series A Funding? Series A funding is the next jump in a company’s funding lifecycle. In a seed round is the first capital into a business, a “Series A” is generally the next round of capital. As we defined in our Startup Funding Stages post, Series A funding is: “When a company is first founded, stock options are generally sold to the company’s founders, those close to them, and angel investors. After this, a preferred stock can be sold to investors in the form of a Series A. Series A allows investors to get in early with a business that they truly believe in. It’s a mutually beneficial relationship for both the company and the future stock holders.” When a company reaches their “Series A” they likely have product-market fit and are ready to scale their business to a $1M or more in revenue. At Series A you likely have solid revenue in place and a scaleable plan to bring on more customer sand revenue whereas at the seed round you may have little to no revenue. A seed round is used to demonstrate your product, service, or team can seize a market. A series A round is used to scale the product, service, or team to attack and scale in your market (or a new market). Additional Seed Funding Resources There are hundreds of resources out there to help you raise your seed round. At the end of the day the more entrepreneurs that raise capital the better the startup ecosystem does as a whole. At Visible, we do our best to curate and write the best resources to improve a founders chances of success. Here are a few of our favorite resources to help founders improve their odds of raising venture capital: Everything a Startup Founder NEEDS to Know about Pro Rata Rights Check out our guide and tips for handling pro rata rights during an early stage fundraise and negotiation. Our Favorite Seed Round Pitch Deck Template (and Why It Works) In our guide, we share a step-by-step guide to help build your seed round pitch deck. Plus, we offer a direct download to the template so you can get started immediately. Our Startup Funding Stages Guide Our in-depth guide covering all things related to the startup funding lifecycle. Understand what it takes to go from seed stage funding to Series A and later. Building A Startup Financial Model That Works Templates and resources to help you build your first financial model for your startup. In order to improve your odds of raising capital you need to understand the ins and outs of your business. Our Guide to Sending Your First Investor Update Tips and best practices for using investor updates to leverage your current and potential investors to help with fundraising, hiring, and strategic decision-making. Visible Connect: Our Investor Database Browse our investor database that is hand curated by the team at Visible. We include the fields and filters we find most important when searching for new investors. Visible Lite: Pre-Traction Template This template is intended for companies that are pre-traction/revenue. Even if it is simple, sending Updates from day 1 is a great way to stay top of your investors mind’s moving forward. We hope this guide is helpful to you as you kick off your seed round. To get your fundraise started check out Visible Connect, our investor database. Automatically add your investors into a pipeline to manage conversation and engagements so you can focus on building your business. Related resource: Top Creator Economy Startups and the VCs That Fund Them Kick Off Your Seed Round With Visible We believe a VC fundraise mirrors a B2B sales motion. The fundraising process starts by finding qualified investors (top of the funnel) and building relationships (middle of the funnel) with the goal of them writing a check (bottom of the funnel). Just as a sales team has dedicated tools for their day-to-day, founders need dedicated tools for managing the most expensive asset they have, equity. Our community can now find investors, track a fundraise, and share a pitch deck, directly from Visible. Give Visible a free try for 14 days here.

With a recovery in full swing within the travel and tourism industry, it’s time to get back to business to meet people’s wanderlust desires. Now that things are opening up again people are more excited than ever to travel and have experiences. Julia Simpson, president and CEO of WTTC (The World Travel & Tourism Council) says “Our latest forecast shows the recovery significantly picking up this year as infection rates subside and travelers continue benefiting from the protection offered by the vaccine and boosters. As travel restrictions ease and consumer confidence returns, we expect a welcome release of pent-up travel and tourism demand.” Businesses have managed to survive through innovative new marketing tactics which encouraged people to travel locally and pivots to accommodate limitations. This is how Airbnb managed to overcome the toughest times of the pandemic. Their marketing strategy encouraged people to get out of the house and explore areas around them. According to TechCrunch “High-profile funding rounds also appear to be popping up across travel and hospitality’s various sub-sectors, including bookings, activity marketplaces, short-term rental, tourism and hotel platforms. And companies are continuing to pull in funding rounds in the hundreds of millions to billion-dollar range.” The pandemic gave rise not only to a new way of traveling but also changed the way people want to travel and gave them new opportunities to do so. Investments in alternative accommodation startups and other businesses in this area have been on the rise and seems as though the trend will continue from 2021. With remote work now being an option to the majority of people, we’re seeing new huge growth opportunities for coworking, coliving, and traveling. Companies like HiveGeist launched last year to offer travelers stylish modern accommodations and offer a place to meet and work with other digital nomads. PhocusWire reports “other significant rounds have gone into vacation home co-ownership startup Pacaso with $125 million and Outdoorsy with $120 million while luxury rental company Kocomo with $56 million, Holidu with $45 million and Getaway with $42 million, also benefited from excitement in the segment.”. Along with large investments going to alternative accommodation, hotel technology companies have also received considerable interest from VC’s. Skift’s report on Venture Investment Trends in 2022, revealed that “travel startups raised $8.6 billion last year, a figure that’s 90 percent of 2019 levels and a 73 percent increase from 2020.” and we predict this will continue to be on the rise. As well CNN reported, “travel and tourism could generate $8.6 trillion globally this year, according to new research by the World Travel & Tourism Council. That’s just 6.4% below pre-pandemic levels.” According to the World Travel & Tourism Council: U.S. domestic Travel & Tourism spending is forecast to reach more than $1.1 trillion for the year, surpassing pre-pandemic levels by 11.3% International traveler spending in the U.S. could see growth of $113 billion, compared to 2020, reaching nearly $155 billion, slightly below (14%) 2019 levels Employment in the sector could also surpass pre-pandemic levels, reaching nearly 16.8 million jobs, above pre-pandemic levels by almost 200,000 jobs 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 To learn more about Journey Ventures, check out their Visible Connect Profile. 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 To learn more about MairDuMont Ventures, check out their Visible Connect Profile. 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 To learn more about JetBlue Technology Ventures, check out their Visible Connect Profile. 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 To learn more about 500 Startups, check out their Visible Connect Profile. 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 To learn more about Fifth Wall, check out their Visible Connect Profile. 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 To learn more about Thayer Ventures, check out their Visible Connect Profile. 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 To learn more about Structure Capital, check out their Visible Connect Profile. 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 To learn more about Portugal Ventures, check out their Visible Connect Profile. 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 To learn more about aws Gründerfonds, check out their Visible Connect Profile. 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 To learn more about VentureFriends, check out their Visible Connect Profile. 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 To learn more about Travel Impact Lab, check out their Visible Connect Profile. Gobi Partners Location: Shanghai, China About: Gobi Partners is an early stage to late stage venture capital firm focusing on IT and digital media investments in China, HK and ASEAN. Investment Stages: Seed, Series A, Series B, Series C Recent Investments: Julo Carsome Travelio To learn more about Gobi Partners, check out their Visible Connect Profile. 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 To learn more about Travel Capitalist Ventures, check out their Visible Connect Profile. 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 To learn more about Alstin Capital, check out their Visible Connect Profile. 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 To learn more about TruVenturo, check out their Visible Connect Profile. 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 To learn more about Howzat Partners, check out their Visible Connect Profile. 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 To learn more about Slow Ventures, check out their Visible Connect Profile. 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 D2C investors here and e-commerce 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 and How to Cold Email Investors: A Video by Michael Seibel of YC. 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.

As we advance into a technologically-driven future, gaming has evolved beyond mere entertainment. It converges art, technology, and commerce. For founders in the gaming industry, understanding the intricacies of current technological advancements, especially in AI, is not just beneficial—it’s crucial. AI’s transformative impact promises to shape the very fabric of gaming experiences, ensuring that they remain dynamic, engaging, and continuously evolving The investment landscape for gaming in 2023 is still very strong. Key trends spurring VC interest in gaming include: The rise of mobile gaming: Mobile gaming is the fastest-growing segment of the gaming market. In 2021, mobile gaming accounted for 52% of the global gaming market, and this number is expected to grow to 60% by 2026. This growth is being driven by the increasing popularity of smartphones and tablets, as well as the development of new mobile gaming platforms like Apple Arcade and Google Stadia. “Revenue in the Mobile Games market is projected to reach US$286bn in 2023. Revenue is expected to show an annual growth rate (CAGR 2023-2027) of 7.08%, resulting in a projected market volume of US$377bn by 2027. The average revenue per user (ARPU) in the Mobile Games market is projected to amount to US$148.80 in 2023.” Statista The increasing popularity of esports: Esports is a competitive video gaming industry that has seen significant growth in recent years, driven by the increasing popularity of live-streaming platforms like Twitch and YouTube, as well as the growing number of professional esports leagues and tournaments. Statista Report: Revenue in the Esports market is projected to reach US$3.75bn in 2023. Revenue is expected to show an annual growth rate (CAGR 2023-2027) of 9.54%, resulting in a projected market volume of US$5.40bn by 2027. The largest market is Esports Betting with a market volume of US$2.13bn in 2023. With a projected market volume of US$871.00m in 2023, most revenue is generated in the United States. In the Esports market, the number of users is expected to amount to 720.8m users by 2027. User penetration will be 7.5% in 2023 and is expected to hit 9.1% by 2027. The average revenue per user (ARPU) is expected to amount to US$6.47. The development of new technologies: New technologies like AI, virtual reality (VR), and augmented reality (AR) are also driving investment in the gaming industry. These technologies have the potential to create new and immersive gaming experiences that have never been possible before. Gaming Now and In The Future “Gaming is a massive market that will only continue growing. The growth is easy to see: In 2019, the global gaming market was $152 billion. By 2021, it reached $214 billion and is on track to generate over $300 billion in 2026. Bigger than all other forms of entertainment.” NFX The gaming industry is one of the fastest-growing industries in the world, with a market size of over $200 billion. The industry’s future will be heavily influenced by advancements in AI, Virtual Reality (VR) and Augmented Reality (AR). These technologies are shaping immersive gaming experiences and will continue to hold a significant role. However, the real game-changer will be the effective application of AI technologies. The five key areas where AI is having an impact on gaming: generative agents, personalization, AI storytelling, dynamic worlds, and AI copilots. By harnessing AI, games can become “neverending”, maintaining their appeal indefinitely through personalized experiences, AI storytelling, and dynamic, evolving worlds. The rise of social elements in games, powered by AI copilots and intelligent chat functions,.will drive engagement and longevity in the player base, heralding the future of social gaming Business Implications of AI in Gaming AI’s integration into the sector offers a transformative experience not just for players but also for gaming businesses. From enhancing player engagement to providing advanced monetization avenues, AI is in fact game-changing. Monetization Models Enhanced by AI Optimized In-Game Purchases: AI can monitor player behavior and preferences, offering real-time personalized suggestions for in-game purchases. For instance, if a player frequently struggles at a specific game level, AI might suggest a power-up or equipment purchase that can assist them. This not only increases potential sales but also enhances the gaming experience for the player. Dynamic Subscription Models: Instead of a one-size-fits-all subscription model, AI enables gaming platforms to offer tailored subscription packages. By analyzing a player’s gaming habits, frequency, and genre preferences, AI can suggest a subscription model that offers the best value, encouraging higher subscription rates. Smarter Advertisements: AI’s predictive analysis can forecast when a player is most likely to be receptive to advertisements, thereby reducing ad fatigue and increasing click-through rates. Furthermore, AI can customize ad content based on player preferences, ensuring higher engagement and conversion. Market Analysis and Forecasting Predicting Market Trends: AI can analyze vast amounts of data from forums, social media, and other platforms to spot emerging trends. By identifying what players are discussing or showing increased interest in, developers can prioritize certain game features, genres, or mechanics that are gaining traction. Player Retention Forecasting: AI can predict when players are likely to stop playing, allowing developers to introduce timely interventions, whether it’s through in-game events, updates, or other engagement tactics. This leads to increased player longevity and, consequently, higher lifetime value. Adjusting Game Development Strategies: By monitoring real-time feedback and player behavior within a game, AI can help developers understand which aspects of the game are most loved or which areas need improvement. This feedback loop can be invaluable, especially during beta testing, ensuring that the final product is better aligned with market demands. AI for Game Design & Player Experience The infusion of Artificial Intelligence (AI) into the gaming industry is not merely about adding smarter enemies or more realistic visuals. At its core, AI has the potential to revolutionize how games are designed and how players experience them. The intricate dance between game mechanics and player response is more sophisticated than ever, thanks to AI. Let’s dive deep into its multifaceted impact. AI Integration in Game Design AI in Procedural Content Generation: No longer are game worlds static or bounded by the limitations of manual design. With AI, games can generate levels, terrains, and even entire universes on-the-fly. This not only ensures each gameplay is fresh but also vastly enhances the replayability of games. Imagine embarking on a new adventure each time you play, with unpredictable terrains and challenges. AI in Game Testing: Quality assurance in gaming is paramount. However, with expansive game worlds and intricate mechanics, manual testing can be labor-intensive and might not cover all potential scenarios. Enter AI bots, which can simulate countless hours of gameplay, identifying glitches, and ensuring a seamless player experience. Dynamic Difficulty Adjustment (DDA): One-size-fits-all is a passé concept in modern gaming. AI can continuously monitor a player’s performance and adapt the game’s difficulty in real-time. This ensures that games remain engaging and challenging but stop short of being overly frustrating. It’s about striking the right balance to keep players invested. AI in Player Experience Player Behavior Analysis: Each player is unique, and AI recognizes that. By studying patterns, preferences, and behaviors, AI can modify game environments or suggest personalized paths, ensuring an immersive experience tailored for each gamer. Customized Game Narratives: Story-driven games have always been popular, but what if the narrative changed based on every choice you made? AI can weave intricate storylines that diverge and converge based on player decisions, ensuring that each gameplay tells a distinct tale. Your choices matter more than ever, and the narrative payoff is genuinely your own. AI in Multiplayer: The multiplayer realm benefits immensely from AI. Beyond crafting smarter Non-Player Characters (NPCs) that challenge even the most seasoned gamers, AI can step in when human players drop out, ensuring the game continues without a hitch. This seamless blend of AI and human intelligence creates dynamic multiplayer arenas that are unpredictable and exhilarating. Incorporating AI into game design and player experience has shown it’s not about replacing the human touch but enhancing it. It’s about crafting expansive, responsive, and deeply personal gaming worlds where every player feels seen, challenged, and, most importantly, immersed. Gaming Essentials to Include in Your Pitch Deck Overview of Your Game: Type/Category Supported Devices Revenue models, Key Performance Metrics (if known) Current progress stage Primary technology (like game engine) Consider incorporating a demo video, early versions, or visual snapshots. General Info: Brief game concept overview (1-2 sections) Titles that inspire you Fundamental gameplay elements Intended player demographic Game universe/background (Divide this into 2 or 3 slides for clarity) Distinguishing Features / Selling Points: What makes your game unique from competitors? Why players will be drawn to it Basic gameplay and overarching game narrative Primary game cycle Secondary game narratives Highlighted characteristics (Organize this info across 2-3 slides for visual appeal) Monetization Strategy: Free or Paid model? Plan for in-game purchases, advertisements, or both? Types of in-game offerings envisioned? If it’s a paid model, potential pricing? Artistic Direction: Showcase visual inspirations, preliminary designs, prototypes, animated sequences. (Recommendation: Integrate visuals from the actual game not just here, but throughout the presentation for consistency and immersion) Projected Development Journey and Funding Needs: Duration of current production time? Anticipated project milestones? Financial projections and needs? Beneficial to include: Visual representation of the development journey, manpower allocation, and post-release content strategy. Team: Your base location? Team size and roles? Competencies and strengths? Any previous successful launches? Your overarching mission and goals? Resources & Good Reads Gaming VC profiles in Visible’s Fundraising CRM YC Advice for Gaming Startups The NeverEnding Game: How AI Will Create a New Category of Games The Generative AI Revolution in Games Communities The International Game Developers Association (IGDA) is the world’s largest nonprofit membership organization serving all individuals who create games. The Game Developers Conference (GDC) is the world’s largest annual gathering of game developers. VC Firms Investing in Gaming Companies Wonder Ventures About: Wonder Ventures invests in entrepreneurs who build the world’s most innovative technology companies. Thesis: Our mission is to invest earlier than anyone in Southern California’s best founders. Check out their profile here. Lumikai About: We are India’s first gaming & interactive entertainment venture fund. We catalyse game-changing, early stage founders building the future of gaming and interactive media. Thesis: We are curating and supporting a select tribe of India’s most forward thinking, creative and talented founders. Our vision is to find and fund game-changing early stage founders with a bold vision for the future and to help them achieve outlier success. We bring decades of sector strategic experience and knowledge, while leveraging our all-star local and global networks to help propel our founders to success. Check out their profile here. Kakao Ventures About: Kakao Ventures (circa 2012 as K Cube Ventures, rebranded in 2017) is the most active seed stage VC in Korea, with over 190 portfolios and AUM of $300M (330B KRW) as of date. Kakao Ventures believes in harnessing the power of startups to change our world. Our mission statement is to be the backers of smart entrepreneurs who set their courses, in the form of startups armed with competitive edge, to solve real-world problems. Hence we hold entrepreneurs in the highest regard, and leads us to our raison d’être – making the world a better place for talented people to continuously make an impact to the world around theirs. Check out their profile here. Serena Capital About: Serena Capital caters to technology companies with seed, early, and later stage venture investments. Investment strategy: We handpick on average four to five teams per year and focus on helping them reach their maximum potential. We are not looking for early exits. We back Europe-based entrepreneurs willing to build continental or worldwide category leaders. We strongly prefer to lead or co-lead rounds. Thesis: Serena was founded by entrepreneurs on the belief that your VC should work for you and not the way around. We are not industry-specific as long as your business model is scalable and your product is digital. We have a special affection for DeepTech, enterprise software, marketplaces, and entertainment. Check out their profile here. BITKRAFT Ventures About: Built by founders for founders, BITKRAFT is a global early- and mid-stage investment platform for gaming, esports, and interactive media. We focus on Seed, Series A, and Series B investments in game studios, interactive platforms, and immersive technology. Sweetspot check size: $ 3M Traction metrics requirements: No hard requirements; preference for second-time or serial entrepreneurs Thesis: Vision of Synthetic Reality (https://www.bitkraft.vc/vision/)—the increasing convergence of the physical and digital worlds Check out their profile here. WndrCo About: WndrCo is a holding company that invests in, acquires, develops, and operates consumer technology businesses for the long term. Check out their profile here. Andover Ventures About: Andover is a venture fund investing in early stage software-enabled start-ups ranging from Pre-seed to Series A. We are sector agnostic; however, our team has a background in software development and financial technology. We make co-investments alongside larger funds, angel groups, and other family offices. Check out their profile here. Aura Ventures About: We are an early stage venture capital firm dedicated to investing in ambitious entrepreneurs to define and dominate a new generation of commerce. Check out their profile here. Velo Partners About: VELO PARTNERS INVESTS AND MANAGES A PORTFOLIO SPANNING THE GLOBAL GAMING AND GAMBLING INDUSTRY ACROSS MOBILE, ONLINE, LAND-BASED, REAL-MONEY, SOCIAL, B2B AND B2C ASSETS. Thesis: Velo typically invests in Series A or early growth stage rounds. Our ideal investment candidates demonstrate strong early traction and a clear understanding of their unit economics and growth trajectory. We also work in association with a gaming accelerator called RNG FOUNDRY for earlier stage investment opportunities. Once invested, we typically follow our rights for later investment rounds and work with management to define good corporate governance and reporting. We will opportunistically evaluate later stage investments on an ad-hoc basis. Check out their profile here. Hiro Capital About: Hiro Capital invests in UK, European and North American innovators in Videogames, Esports, Streaming and Digital Sports. We invest in Metaverse technology founders and Game creators who are building the future. We believe that Games and Games technologies will be at the heart of next generation human societies. For us, play is deep. We are battle-scarred entrepreneurs who back next generation entrepreneurs. We have founded games and technology disruptors worth billions of dollars. We have led companies from startups to IPO in London and New York. We are gamers and sports nerds. We love games, stories, characters and deep tech. Thesis: We Invest in the innovators building the future of Games, Esports, Digital Sports Check out their profile here. Griffin Gaming Partners About: Griffin Gaming Partners is a leading venture capital firm singularly focused on investing in the global gaming market. We are founder-friendly, care deeply for our industry and bring decades of investment, advisory and operational experience. Check out their profile here. Andreessen Horowitz / a16z About: Andreessen Horowitz was established in June 2009 by entrepreneurs and engineers Marc Andreessen and Ben Horowitz, based on their vision for a new, modern VC firm designed to support today’s entrepreneurs. Andreessen and Horowitz have a track record of investing in, building and scaling highly successful businesses. Sweetspot check size: $ 25M Thesis: Historically, new models of computing have tended to emerge every 10–15 years: mainframes in the 60s, PCs in the late 70s, the internet in the early 90s, and smartphones in the late 2000s. Each computing model enabled new classes of applications that built on the unique strengths of the platform. For example, smartphones were the first truly personal computers with built-in sensors like GPS and high-resolution cameras. Applications like Instagram, Snapchat, and Uber/Lyft took advantage of these unique capabilities and are now used by billions of people. Check out their profile here. Makers Fund About: A venture capital fund created to support founders, combining deep industry experience with multi-stage investment across Seed to Series B. Check out their profile here. March Capital Partners About: March Capital Partners invest in breakthrough technology companies in Silicon Beach, Silicon Valley, and the world. Thesis: March Capital is a top-tier venture capital & growth equity firm headquartered in Santa Monica, California and investing globally since 2014. We identify entrepreneurs with a provocative vision to lead the future and later-stage companies poised for hyper-growth, then dare to go all in by leading rounds with deep conviction and concentration risk. Check out their profile here. Northzone About: We’re a multi-stage venture capital fund partnering with founders from Seed to Growth. Across Europe and the US. Check out their profile here. Bessemer Venture Partners About: Bessemer Venture Partners is the world’s most experienced early-stage venture capital firm. With a portfolio of more than 200 companies, Bessemer helps visionary entrepreneurs lay strong foundations to create companies that matter, and supports them through every stage of their growth. The firm has backed more than 120 IPOs, including Shopify, Yelp, LinkedIn, Skype, LifeLock, Twilio, SendGrid, DocuSign, Fiverr, Wix, and MindBody. Bessemer’s 16 investing partners operate from offices in Silicon Valley, San Francisco, New York City, Boston, Israel, and India. Follow @BessemerVP and learn more at bvp.com. Sweetspot check size: $ 15M Check out their profile here. Atomico About: Atomico is a risk capital group. They are entrepreneurs with global perspectives who invest their own capital in passionate entrepreneurs with powerful ideas. Through their experience building Skype, Joost and Kazaa, they understand the value of game-changing business models and have created a worldwide ecosystem to help accelerate the growth of the companies in which they invest. Check out their profile here. The Games Fund About: TGF is an early-stage VC fund founded by video game industry veterans. We invest in future leaders: game developers, gaming technologies, and services. We share best practices and offer our experience and personal touch. Check out their profile here. Looking for Investors? Try Visible Today! 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. Related Resource: Gaming VC profiles in our Fundraising CRM

At Visible, we oftentimes 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 Understandable Guide to Startup Funding Stages Just as a sales and marketing funnel starts by finding the right leads, the same is true for a fundraise. Founders raising venture capital should start by identifying the right investors for their businesses. If you’re a founder located in France and are looking for venture capitalists in your area, check out our list below: 1. Alven Capital Partners As put by their team, “Alven is an independent venture investment firm with a successful track record of 5 successive funds backing more than 130 startups over 20 years. Our team consists in seasoned investors and functional experts with significant startup experience, to identify promising startups and accelerate their growth.” Learn more about Alven by checking out their Visible Connect profile → Location Alven has offices in Paris and London and invests in founders across Europe. Portfolio Highlights Some of Alven’s most popular investments include: Algolia ChartMogul Stripe Funding Stage Alven attempts to be the first check into a business after angel investors — typically seed or series A. Their typical investment is between €500K and €5M. 2. Partech As put by their team, “Partech is a global investment platform for tech and digital companies, led by ex-entrepreneurs and operators of the industry spread across offices in San Francisco, Paris, Berlin and Dakar. We invest from €200K to €75M in a broad range of technologies and businesses for enterprises and consumers, from software, digital brands and services to hardware and deep tech, across all major industries.” Learn more about Partech by checking out their Visible Connect profile → Location Partech has offices across the globe and has multiple funds to invest in companies across the globe. Portfolio Highlights Some of Partech’s most popular investments include: Bolt The Bouqs Co. Zeel Funding Stage Partech has multiple funds that are geared towards different stages — from seed to growth stage. 3. Sofinnova Partners As put by their team, “At Sofinnova Partners, we focus on breakthrough innovations that have the potential to solve the world’s most pressing problems. Experience, agility, and diverse points of view push us forward, driving our ability to evolve in a complex environment. “Partners for Life” is a cornerstone of our identity: nurturing strong relationships through trust and transparency. We invest in people and science to create opportunity. We commit to long-term partnerships with entrepreneurs who are as passionate as we are about pushing the frontiers of innovation to contribute to a better future. Founded in 1972, Sofinnova Partners has backed more than 500 companies over 50 years, creating market leaders around the globe. Today, Sofinnova Partners has over €2.5 billion under management.” Learn more about Sofinnova Partners by checking out their Visible Connect profile → Location Sofinnova is located in Paris. Portfolio Highlights Some of Sofnnova’s most popular investments include: Avantium Kiro NuCana Funding Stage Sofinnova has 6 different fund strategies that are targeted on different stages and markets. They are: Sofinnova Capital Sofinnova MD Start Sofinnova Crossover Sofinnova Industrial Biotech Sofinnova Telethon Sofinnova Digital Medicine Related Resource: The Top VCs Investing in BioTech (plus the metrics they want to see) 4. Seventure Partners As put by their team, “Seventure Partners adopts an extremely rigorous but collegial process when selecting innovative companies for investment. Determining whether we can establish a relationship based on trust and work effectively with a company’s management team are key elements that we take into consideration. Investments are aimed at strengthening the equity capital of innovative companies at all stages: from seed to growth capital. As we are often the lead investor, we actively partner with entrepreneurs, encouraging and supporting them in reaching their full potential in order to achieve a leadership position within their fields. Our presence as directors on the company’s board or in a supervisory role creates a holistic approach that supports entrepreneurs in their development and companies throughout the key phases of their growth.” Learn more about Seventure Partners by checking out their Visible Connect profile → Location Seventure is located in Paris. Portfolio Highlights Some of Seventure Partner’s most popular investments include: Hivency Skinjay Sumup Funding Stage Seventure invests in companies across all stages — from seed to growth stage. Related Resource: A Quick Overview on VC Fund Structure 5. Eurazeo As put by the team at Eurazeo, “From fledgling startups to SMEs, mid-caps and multinationals, we detect, finance, accelerate and support companies that are inventing and reinventing themselves, innovative entrepreneurs, and emerging talent. We turn constraints into opportunities, challenges into ways to create value, and bold ideas into success stories. Every day, we work alongside management teams and investors at the grass-roots level. In the right place, at the right time, and over the long term, we help them reveal the best of themselves and, ultimately, contribute to creating meaningful growth.” Learn more about Eurazeo by checking out their Visible Connect profile → Location Eurazeo has offices across the globe. Portfolio Highlights Some of Eurazeo’s most popular investments include: Swile Grab Wefox Funding Stage Eurazeo funds companies across all stages. 6. Omnes Capital As put by their team, “Our Venture Capital activity, the historic heart of Omnes, with €700M under management, supports innovative European start-ups in the fields of deeptech. We back extraordinary founders executing on a clear vision and building worldwide leading businesses in the fields of techbio, cybersecurity, new space, quantum computing, new materials, carbone capture and novel food.” Learn more about Omnes Capital by checking out their Visible Connect profile here → Location Omnes Capital is headquartered in Paris. Portfolio Highlights Some of Omnes’ most popular investments include: Opensee Artifakt Gourmey Funding Stage As put by their team, “First investment from €2M to €7M with potential follow-on up to €20M.” 7. Vantech As put by their team, “Ventech is a global early-stage VC firm based out of Paris, Munich, Berlin, Helsinki, Shanghai and Hong Kong with over €900m raised to fuel globally ambitious entrepreneurs and their visions of the future positive digital economy. Since inception in 1998, Ventech has made 200+ investments such as Believe, Vestiaire Collective, Botify, Freespee, Ogury, Veo, Picanova and Speexx; and 90+ exits including Webedia, Meuilleurs Taux.com, Curse, StickyADS.tv and Withings).” Location Vantech has offices across Europe and Asia including Paris, Berlin, Munich, Helsinki, Hong-Kong, Shangai. Related Resource: 8 Most Active Venture Capital Firms in Europe Portfolio Highlights Some of Vantech’s most popular investments include: Adore Me Mobius Labs Picanova Funding Stage Vantech invests in companies across all stages. Related Resource: Private Equity vs Venture Capital: Critical Differences 8. Aster As put by their team, “Aster Capital arranges equity and debt-secured accounts for Proof of Funds uses on a fixed-return basis to facilitate various funding requirements, providing organizations and individuals the capability to meet on-going project needs. The investment process is simple and secure, and can be completed in as little as two banking days. Aster can arrange funding for various types of accounts and instruments for a broad range of requirements.” Location Aster has offices in Paris, London, and Nairobi. They make investments in companies located in Europe, US, and Israel. Portfolio Highlights Some of Vantech’s most popular investments include: Betterway Habiteo Candi Funding Stage Vantech funds companies that are raising anything from a seed round to series B. Looking for Investors? Try Visible Today! 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.

In the dynamic realm of venture capital, where innovation meets investment, the success of startups often hinges on the expertise, networks, and strategic insight provided by the key players within VC firms. Venture partners, uniquely positioned within the VC ecosystem, offer a blend of expertise, networks, and capital that can significantly influence the trajectory of startups. Their role extends beyond mere financial investment, encompassing a broad spectrum of activities designed to nurture and propel startups toward success. This article delves into the nuances of venture partners' responsibilities, their distinct positions within VC firms, and the invaluable assets they bring to the startup world. Who is a Venture Partner? Venture partners are seasoned professionals who collaborate with venture capital firms on a flexible basis. Unlike general partners, who are integral to the VC firm's day-to-day operations and investment decisions, venture partners typically engage in a more focused capacity. Their primary function is to identify promising investment opportunities, leverage their expertise and networks to guide startups and represent the VC firm within the broader entrepreneurial ecosystem​​. The distinction between venture partners, general partners, and limited partners lies in their involvement level, compensation structure, and role in investment decision-making and firm governance. Venture partners often work on a part-time or project basis, may receive carried interest but not necessarily a salary, and usually do not have full voting rights on investment decisions​​. Related resource: 25 Limited Partners Backing Venture Capital Funds + What They Look For The Unique Role of Venture Partners in Startups Venture partners occupy a distinctive and influential position within the startup ecosystem, bridging the gap between VC firms and the innovative companies they invest in. Their contribution extends far beyond mere financial backing; venture partners bring a wealth of expertise, strategic insight, and invaluable networks to the table. Sourcing Potential Investments Venture partners are essential in VC for scouting startups and fostering founder relationships. They combine market research, sector expertise, and tech trends to spot investment opportunities. Through networking and direct outreach, they build early trust with entrepreneurs, offering advice and connections. This role is pivotal for VC firms to gain a competitive edge, ensure portfolio diversity, and maintain a consistent investment pipeline. In essence, venture partners' insights and networks enable VC firms to capture high-potential investments and sustain their market leadership. Offering Expertise and Guidance Venture partners offer crucial expertise and guidance to startups, leveraging their extensive experience and industry knowledge to mentor and advise companies within a VC firm's portfolio. They typically have a deep understanding of specific sectors, market dynamics, and the challenges that emerging companies face. This enables them to provide strategic advice on a wide range of issues, including product development, market entry strategies, scaling operations, and navigating competitive landscapes. Their guidance often extends to helping startups refine their business models, improve operational efficiencies, and develop go-to-market strategies that enhance their chances of success. Moreover, venture partners can assist in preparing startups for future funding rounds, advising on the best approaches to attract further investment. By acting as mentors, venture partners not only contribute to the immediate growth and stability of startups but also help build the foundation for long-term success. Their involvement can significantly impact a startup's trajectory, accelerating growth and reducing the risk of failure. Representing VC Firms Venture partners play a key role in representing VC firms within the broader startup ecosystem. By actively participating in events, conferences, and panels, they not only enhance the visibility of their VC firm but also engage directly with emerging startups, investors, and industry thought leaders. This involvement allows them to stay abreast of the latest trends, technologies, and opportunities, fostering relationships that could lead to future investments. Their presence at these gatherings underscores the VC firm's commitment to the startup community, facilitates the exchange of ideas, and positions the firm as a key player in the entrepreneurial landscape. Through these engagements, venture partners effectively bridge the gap between VC firms and the dynamic world of startups, ensuring their firm remains at the forefront of innovation and investment opportunities. Provides Access to Networks Venture partners significantly enhance a startup's growth potential by providing access to their extensive networks, introducing startups to potential clients, strategic partners, and key hires. This access can accelerate a startup's market penetration, expand its customer base, and secure partnerships that offer competitive advantages. Additionally, leveraging a venture partner's network for talent acquisition can help startups attract experienced and skilled professionals crucial for scaling their operations. This network access is invaluable for startups looking to navigate market challenges and capitalize on opportunities more efficiently, underlining the venture partner's role in facilitating connections that drive success and growth. Related resource: A Quick Overview on VC Fund Structure The 5 Types of Venture Partners Venture partners can be categorized into five distinct types, each bringing unique skills and focus areas to the VC firm and its portfolio companies: 1. Operating Partners Operating partners represent a vital resource within the VC ecosystem, offering a unique blend of operational expertise and strategic guidance to help portfolio companies navigate growth challenges and scale successfully. Their hands-on approach and deep involvement in the operational aspects of a business differentiate them from other types of venture partners and make them invaluable allies for startups looking to maximize their potential and achieve sustainable growth. Role and Responsibilities Operational Support Operating partners provide hands-on support to portfolio companies, helping them scale operations, improve efficiency, and navigate complex business challenges. They often work closely with the company's management team to implement best practices, optimize processes, and drive growth. Expertise in Specific Areas They typically have a wealth of experience and expertise in specific functional areas such as sales, marketing, finance, human resources, or technology. This expertise allows them to offer tailored advice and strategies to address the unique needs of each portfolio company. Value Creation The primary goal of an operating partner is to create value for the portfolio company by leveraging their operational expertise. This could involve leading turnaround efforts, driving go-to-market strategies, optimizing supply chains, or implementing technological innovations. Strategic Initiatives Operating partners may lead or contribute to strategic initiatives within the portfolio company, such as entering new markets, launching new products, or pursuing mergers and acquisitions. Mentorship and Coaching They often serve as mentors and coaches to the CEOs and leadership teams of portfolio companies, sharing insights from their own experiences to guide leaders in making informed decisions. Duration of Engagement The involvement of an operating partner with a portfolio company can vary, ranging from a short-term project to a long-term engagement, depending on the specific needs and goals of the company. How They Differ from Other Venture Partners The key differentiator of operating partners is their hands-on, operational focus. While other venture partners might concentrate on broader strategic, advisory, or networking roles, operating partners are deeply involved in the trenches with portfolio companies, working to solve operational problems and drive tangible improvements. Benefits to Startups and VC Firms Accelerated Growth and Scale By implementing best practices and strategic initiatives, operating partners can significantly accelerate the growth and scaling efforts of portfolio companies. Risk Mitigation Their expertise and oversight can help identify and mitigate potential risks before they become significant issues. Increased Value Through operational improvements and strategic guidance, operating partners can increase the value of a portfolio company, leading to better outcomes for both the company and its investors. 2. Board Partners Board partners serve as a bridge between the strategic oversight required by a board of directors and the operational support provided by the broader VC firm and its network. By leveraging their experience, networks, and strategic insight, board partners contribute significantly to the growth and success of portfolio companies. Their role underscores the importance of governance and strategic planning in the fast-paced startup environment, ensuring that companies not only grow but also adhere to sound business principles and practices. Role and Responsibilities Strategic Guidance Board partners provide strategic direction and advice to portfolio companies, helping them navigate complex decisions and align their operations with long-term objectives. Governance They play a crucial role in governance, often serving on the boards of portfolio companies. Their presence ensures that there is an experienced voice to guide decision-making processes, oversee the management team, and ensure that the company adheres to its strategic goals. Network and Connections Board partners leverage their extensive networks to assist startups in finding potential clients, partners, and even future employees. Their connections can be invaluable in opening doors that might otherwise remain closed to early-stage companies. Fundraising and Financial Oversight They can also play a significant role in helping startups secure further funding, providing advice on financial structuring, and preparing for rounds of financing. Their experience can be critical in negotiating terms with new investors and in financial planning. Crisis Management In times of crisis, board partners can offer seasoned perspectives to help navigate through challenging periods, whether the issues are financial, operational, or market-related. How They Differ from Other Venture Partners The main differentiation of board partners from other types of venture partners lies in their primary focus on governance and strategic oversight rather than operational support or deal sourcing. Board partners are specifically brought into the VC ecosystem for their ability to contribute at the board level, offering insights and guidance that can steer a company towards success. Benefits to Startups and VC Firms Improved Decision-Making With their extensive experience and strategic vision, board partners can significantly improve the quality of decision-making within a startup, steering it clear of potential pitfalls. Enhanced Credibility Their involvement can enhance a startup's credibility in the eyes of investors, customers, and partners, given their reputation and track record. Strategic Networking Board partners open up their network of contacts, providing startups with access to a broader ecosystem that can support growth and expansion. Risk Mitigation Their governance role ensures that the company adheres to best practices and regulatory requirements, thereby mitigating risks associated with compliance and operational missteps. 3. Fundraising Partners Fundraising partners facilitate the flow of capital that fuels innovation and growth within the VC firm's portfolio. By leveraging their expertise, networks, and understanding of the financial landscape, they ensure that both VC firms and their portfolio companies have the resources they need to succeed. Their role underscores the importance of strategic fundraising in the competitive and fast-paced world of venture capital, making them indispensable allies in the quest for growth and success. Role and Responsibilities Capital Raising for VC Funds Fundraising partners are instrumental in raising new funds for the VC firm. They engage with potential investors, articulating the value proposition of the fund, its investment thesis, and the track record of the firm to secure commitments. Supporting Portfolio Companies Beyond raising capital for the VC firm itself, fundraising partners often assist portfolio companies in their fundraising efforts, helping them to prepare for rounds of funding, from seed stage to later-stage financing rounds. Strategic Networking They utilize their extensive networks of investors, including institutional investors, family offices, and high-net-worth individuals, to introduce potential funding sources to both the VC firm and its portfolio companies. Market Intelligence and Trends Fundraising partners keep a pulse on market trends, investor sentiments, and the regulatory landscape to advise on the most opportune times to raise funds, the best strategies to employ, and the types of investors to target. Investor Relations and Communication They play a key role in managing relationships with existing investors, ensuring transparent communication, and keeping LPs informed about the performance of their investments and the progress of portfolio companies. How They Differ from Other Venture Partners The distinguishing feature of fundraising partners compared to other types of venture partners is their focus on the financial ecosystem surrounding venture capital and startups. While operating partners may delve into the operational aspects and board partners may focus on governance and strategy, fundraising partners are deeply entrenched in the financial networks and activities that fund the venture ecosystem. Benefits to Startups and VC Firms Access to Capital Fundraising partners open doors to capital by connecting startups and the VC firm itself with potential investors, crucial for both launching and scaling ventures. Strategic Fundraising Guidance They provide strategic advice on the fundraising process, helping to structure deals in ways that are attractive to investors while safeguarding the interests of the startup and its founders. Enhanced Credibility The involvement of a seasoned fundraising partner can enhance the credibility of a fundraising round, attracting more and potentially better-suited investors. Efficient Fundraising Process Their expertise and network can streamline the fundraising process, reducing the time and resources that startups need to invest in securing funding. 4. Sourcing Partners Sourcing partners serve as the bridge between promising startups and the capital they need to grow. Their ability to identify and evaluate potential investments, coupled with their deep understanding of market trends and networks within the startup community, makes them invaluable to VC firms looking to invest in the next wave of innovative companies. Through their efforts, VC firms can maintain a robust pipeline of investment opportunities, ensuring sustained growth and success in the competitive venture capital landscape. Role and Responsibilities Deal Flow Generation: Sourcing partners are responsible for generating a steady flow of investment opportunities by identifying promising startups and entrepreneurs. This involves attending industry events, networking, and staying abreast of emerging trends and sectors. Initial Evaluation and Screening: They conduct initial evaluations of potential investments, screening opportunities based on the VC firm's criteria such as market potential, team quality, product innovation, and fit within the firm's portfolio strategy. Relationship Building: Sourcing partners build and maintain relationships with startups and entrepreneurs, even before these entities are ready for investment. This helps in creating a pipeline of potential future investments and ensures the VC firm has early access to high-potential deals. Market Research and Analysis: They conduct market research and analysis to identify emerging trends, sectors, and technologies that present new investment opportunities. This insight helps the VC firm to stay ahead of the curve and invest in future growth areas. Collaboration with Investment Team: Sourcing partners work closely with the broader investment team to share insights, evaluate deals, and contribute to the decision-making process. Their on-the-ground intelligence is crucial for informed investment decisions. How They Differ from Other Venture Partners Sourcing partners differ from other types of venture partners in their primary focus on the top of the investment funnel—identifying and securing new deals. Unlike operating or board partners, who might engage more deeply with portfolio companies post-investment, sourcing partners are pivotal in the pre-investment stage, dedicating their efforts to discovering and vetting potential investment opportunities. Benefits to Startups and VC Firms Access to Opportunities For VC firms, sourcing partners provide access to a broad and deep pool of potential investments, including early access to high-potential startups that might not yet be on the radar of the broader investment community. Strategic Alignment They ensure that the investment opportunities align with the VC firm's strategic goals and investment thesis, optimizing the firm's portfolio for success. Competitive Advantage By building strong relationships with entrepreneurs and startups early on, sourcing partners can give VC firms a competitive edge in securing investments in highly sought-after ventures. Efficient Investment Process Their expertise and initial screening efforts streamline the investment process, enabling the VC firm to focus its resources on the most promising opportunities. 5. Business Development Partners Business development partners focus on leveraging strategic partnerships and growth initiatives to drive value creation within the portfolio of a VC firm. Their role is instrumental in helping startups achieve scale, access new markets, and develop sustainable business models. Through their efforts, business development partners not only enhance the growth potential of individual companies but also contribute to the overall success and return on investment for the VC firm and its stakeholders. Role and Responsibilities Strategic Partnerships Business development partners identify and facilitate strategic partnerships for portfolio companies. These partnerships can range from alliances with other companies, channel partnerships, or joint ventures that can help startups scale quickly and efficiently. Market Expansion They play a crucial role in helping portfolio companies enter new markets, whether geographic or demographic, by providing insights into market dynamics, regulatory environments, and competitive landscapes. Customer Acquisition and Sales Strategies Business development partners assist in refining and implementing effective sales and customer acquisition strategies. Their goal is to accelerate revenue growth and market penetration for the portfolio companies. Networking and Introductions Leveraging their extensive networks, they introduce portfolio companies to potential customers, partners, and industry influencers, opening up new opportunities for business growth and collaboration. Operational Scaling They provide guidance on scaling operations, from optimizing sales processes to enhancing product delivery, ensuring the company's infrastructure can support growth. How They Differ from Other Venture Partners Business development partners distinguish themselves from other types of venture partners by their focus on operational growth and market expansion activities. While sourcing partners concentrate on finding new investment opportunities and fundraising partners on capital inflow, business development partners are deeply involved in the strategic and operational scaling of existing portfolio companies. Their work is hands-on, directly impacting the revenue and growth trajectory of the companies they support. Benefits to Startups and VC Firms Accelerated Growth Business development partners contribute directly to the accelerated growth of portfolio companies through strategic initiatives and partnerships, enhancing the value of the VC firm's investments. Market Access Their efforts help startups gain access to new markets and customer segments, crucial for companies looking to scale beyond their initial niche or geographic location. Strategic Alliances By fostering strategic alliances, they enable startups to leverage the strengths and capabilities of other companies, potentially bypassing years of solo development and scaling efforts. Enhanced Revenue Streams Their focus on optimizing sales strategies and customer acquisition can lead to enhanced revenue streams and improved market positioning for portfolio companies. Expert Guidance The operational and strategic guidance provided by business development partners can be invaluable for startups navigating the complexities of scaling a business, helping to avoid common pitfalls and accelerate success. Qualities of a Successful Venture Partner A successful venture partner embodies a set of key qualities that enable them to contribute effectively to the growth of startups and add value to VC firms. These qualities include: Industry Expertise: Deep understanding of specific sectors, enabling them to provide valuable insights and guidance. Strategic Thinking: Ability to develop and advise on strategies that drive startup growth and innovation. Networking Skills: Extensive connections across the startup ecosystem, facilitating introductions and partnerships. Communication Skills: Clear and persuasive communication, crucial for representing VC firms and advising startups. Analytical Skills: Strong ability to assess market trends, financial data, and startup potential, guiding investment decisions. Mentorship: Commitment to supporting and guiding entrepreneurs through the challenges of scaling their businesses. Adaptability: Flexibility to navigate the fast-paced and ever-changing startup landscape. Integrity and Trustworthiness: Building trust with entrepreneurs and within the VC firm by acting with honesty and integrity. Start Your Funding Journey With Visible Venture partners represent a critical nexus between venture capital firms and startups, offering a combination of capital, expertise, and networks that can significantly accelerate a startup's path to success. Their multifaceted role underscores the collaborative spirit of the venture capital ecosystem, where diverse talents and resources converge to nurture innovation and growth. Start your funding journey with Visible, where you can tap into a wealth of resources, expertise, and connections to propel your startup forward. Raise capital, update investors, and engage your team from a single platform. Try Visible free for 14 days. Related resource: Private Equity vs Venture Capital: Critical Differences

Building a startup is challenging. On top of building a product, hiring a team, and scaling revenue — founders are responsible for securing capital for their business. For many startups, this comes in the form of venture capital. Learn more about the different funding stages and venture capital rounds below. What Are Startup Funding Stages? There are multiple stages of startup funding: Seed, Series A, Series B, Series C, and so forth. Startups should be conscientious about the funding rounds that they will go through, which are generally based on the current maturity and development of the company. Here’s an overview of the major startup stages. As of 2023. Source Crunchbase Seed funding is a startup’s earliest funding stage. Often, seed funding comes from angel investors, friends and family members, and the original company founders. An early-stage startup may also look for funding through bank loans, but angel investments are usually preferred. Seed funding is used to start the company itself, and consequently, it’s a fairly high risk: the company has not yet proven itself within the market. There are many angel investors that specifically focus on seed funding opportunities because it allows them to purchase a part of the company’s equity when the company is at its lowest valuation. Related Reading: Valuing Startups: 10 Popular Methods The next stage of the startup funding process is Series A funding. This is when the company (usually still pre-revenue) opens itself up to further investments. Series A funding is generally much more significant than the funding procured through angel investors, with funds of more than $10 million usually being procured. Series A funding is often acquired to help a startup launch. The business will publicize itself as being open to Series A investors and will need to provide an appropriate valuation. Finally, there’s Series B, C, D, and beyond funding. Later stage funding is sought by companies that have already become successful and are trying to expand that success. Each stage of the startup funding process operates very similarly, despite the different stages the business might be in. During the startup funding process, the company has to be able to establish it’s valuation and will need to have clear plans for how it is planning to use the money it procures. Each round of funding will also, by necessity, dilute the company’s equity. Related resource: The Ultimate Guide to Startup Funding StagesPre-Seed Funding Over the last few years, a new funding stage has emerged, pre-seed funding. A pre-seed round is a round of venture capital that is generally the first round of institutional capital that a startup raises. A pre-seed round generally allows a founding team to find product-market fit, hire early employees, and test go-to-market models. As a general rule of thumb, funding should last somewhere between 12 and 18 months. It should be enough capital to allow you to comfortably hit your goals and the forecast you laid out during your pitching and fundraising process. Related Reading: What is Pre-Seed? Average Pre-Seed Funding Amount The size of pre-seed rounds varies quite a bit from company to company. There is no cut and dry amount. Research shows that round sizes can range anywhere from $100,000 to $5M at the pre-seed round. At the end of the day, you will want to weigh your business needs when setting valuations and determining how much to raise. How to Acquire Pre-Seed Funding? Raising a pre-seed round mirrors a traditional B2B sales process. You will be talking and adding investors to the top of your funnel, pitching and negotiating in the middle of the funnel, and hopefully closing them at the bottom of the funnel. Learn more about building a fundraising process in our guide, “All-Encompassing Startup Fundraising Guide.” We sat down with Jonathan Gandolf, CEO of The Juice, every week during his pre-seed raise to breakdown what he was learning along the way. We boiled down the conversations into 8 episodes. Give it a listen below: Who Invests in Pre-Seed Rounds? One of the plus side of a pre-seed round is that it opens up more types of investors as the check sizes are generally smaller: Angel Investors — A common place to start for a pre-seed round. Angel investors are individuals that can write checks that are anywhere from a few thousand dollars to $500,000+ Accelerators/Incubators — Many accelerator programs will take place in tandem with a pre-seed or will potentially write follow-on checks after completing their program to help fund your pre-seed round. Dedicated VC Funds — Over the last few years, many dedicated pre-seed funds have popped up and become a staple in the space. More traditional and larger firms are also making their way into pre-seed rounds. Related Resource: How Rolling Funds Will Impact Fundraising Active Pre-Seed Stage Investors As we mentioned, there are many dedicated pre-seed funds that are popping up in the space. Check out a few of our favorites below: Hustle Fund Forum Ventures Bessemer Venture Partners Boldstart Ventures Connetic Ventures Expa Kima Ventures LongJump M25 Mucker Capital Starting Line TheVentureCity Find more pre-seed investors in our investor database, Visible Connect, here. Related Resource: What is Pre-Revenue Funding? Related Resource: 12 Venture Capital Investors to Know Seed Funding As we mentioned earlier, “Seed funding is a startup’s earliest funding stage. Often, seed funding comes from angel investors, friends and family members, and the original company founders.” More investors have become keen on being early investor into a startup so they have access to invest again at later stages. Raising seed-stage funding is a major accomplishment for a startup. Seed stage funding is the initial surge of capital into the business. At this point, a startup is largely an idea and will have little to no revenue. This stage is generally when a product and go-to-market strategy are being built and developed. Over the past couple of years, seed-stage funding has exploded in round size. What used to be regarded as a few small checks from family and friends has turned into a multimillion-dollar round. Check it out: Source Crunchbase How to Acquire Seed Funding There are generally a few ways founders can approach a seed round. First things first, founders need to find a list of investors that are relevant for their business. Not every investor will say “yes” so it is important to have a list of 50+ investors to target. From here, founders will need to reach out to potential investors, sit meetings, and share their pitch deck and vision to garner interest. Next, founders will work through due diligence with the hopes of adding new investors to their cap table. Related Reading: Seed Funding for Startups: A 101 Guide Related Reading: A Quick Overview on VC Fund Structure Related Resource: An Essential Guide on Capital Raising Software Series A Funding After raising a Seed Round it’s time for a company to advance to a later round of venture capital financing, which means Series A funding. Series A is a significant stage in a company's lifecycle and is a monumental moment in a startup's funding journey. A Series A startup typically has found some success, has found product market fit, and is ready to scale. At the time of Series A funding, the company has to be valued and priced. Thought must go into previous investments, as prior investors will have also purchased the business at a specific valuation. If an angel investor purchased into the company at a valuation of $100,000 just months ago, then new investors may balk at purchasing at a $10,000,000 valuation today. Once the funding round has been completed, the company will usually have working capital for 6 to 18 months. From there, the company may either be able to move to market or may instead progress to another series of funding. Series A, B, and C funding rounds are all based on stages that the company goes through during its development. It is important to remember that when raising your Series A you are setting goals and objectives for what that capital will do to your business. You need to raise enough capital to help you achieve these goals so you can go on to raise a Series B or future round of capital. Average Series A Funding Amount Source Crunchbase As of 2024, the average Series A funding amount is $18.7 million. A Series A valuation calculator can be used to get close to the number that you should value your company at, though you will also need to thoroughly justify your valuation. How to Acquire Series A Funding? A company’s valuation will be impacted by a number of factors, including the company’s management, size, track record, risk, and potential for growth. Analysts can be called in for a professional valuation of the business. During a Series A funding round, a business usually will not yet have a proven track record, and may have a higher level of risk. During a Series A round, investors will usually be able to purchase from 10% to 30% of the business. Series A investments are generally used to grow the business, often in preparation for entering into the market. The company itself will be able to decide how much it wants to sell during its Series A round, and may want to retain as much of the company control as possible. Let’s start out with a hard truth: sometimes revenue doesn’t matter much in a successful Series A raise. If you’re a seasoned SaaS entrepreneur with a strong team, raising your next round will be much easier than for a first-time founder. Many VCs will place the greatest emphasis on past success for the best indicator of future results—whether or not a company’s unit economics are solid or if they’ve reached the proper revenue benchmarks. Jason Lemkin claims he’d comfortably invest in a pre-launch SaaS company with $0 in ARR if the team is strong and experienced and the market and opportunity are huge. “This makes sense as in many cases, SaaS is an execution play,” Lemkin wrote on Quora. “Put the best team into a strong, upcoming (or disruptable, large market), and that’s a good bet to make.” Related Resource: 23 Top VC Investors Actively Funding SaaS Startups Related Resource: Who Funds SaaS Startups? Related Resource: 20 Best SaaS Tools for Startups Related Resource: 13 Generative AI Startups to Look out for But if you haven’t birthed any unicorns or shepherded any startups to 10x exits already, your benchmarks may be a little more concrete. In the same response, Lemkin wrote that he looks for unproven, bootstrapped startups to hit about $2 million in ARR. In an interview with SaaStr, Tomasz Tunguz estimated a lower mark. Tunguz said most of the founders he speaks with are looking to hit somewhere between $75,000 to $125,000 (or $900,000 to $1.5 million in ARR) in MRR before making their Series A pitch. Despite the wide range, it seems pretty tough for any new founder to conduct a strong Series A round without revenue nearing $1 million ARR in today’s fundraising environment. Without that, you’re going to have to lean more heavily on pitching your market opportunity or product superiority. Related Resource: 7 Startup Growth Strategies Recommended Reading: How to Write the Perfect Investment Memo Recommended Reading: How to Pitch a Series A Round (With Template) Series B Funding Once a business has been launched and established, it may need to acquire Series B funding. A business will only acquire Series B funding after it has started its operations and proven its business model. Series B funding is generally less risky than Series A funding, and consequently, there are usually more interested investors. As with Series A funding, the company begins with a valuation. From there, it publicizes the fact that it’s looking for Series B funding. The company will be selling its equity at the valuation that is settled upon, and investors are free to make offers regarding this valuation. A startup that gets to Series B funding is already more successful than many startups, which will not go beyond their initial seed capital. Once Series B funding has been procured, the business will need to use this money to further stabilize, improve its operations, and grow. At this point, the startup should be in a good position. If the startup needs further money after it develops, to grow and expand, it may need to embark upon a Series C funding round. Average Series B Funding Amount Source Crunchbase On average, Series B startups will usually get $30M or more. The bulk of the heavy lifting will already have been done by seed capital and Series A funding. Series B funding will simply be used to grow the business further and improve upon it. How to Acquire Series B Funding? Sometimes Series B funding will come from the same investors who initially offered Series A funding. Other times, Series B funding may come from additional investors, or from firms that specialize in investing. Either way, investors are usually going to be paying more for less equity than investors did in prior funding rounds, because the company’s valuation will have scaled. A Series B funding valuation will need to consider the company’s current performance and its future potential for growth. Analysts can be used to price a company looking for Series B funding. However, it should also be noted that the company itself has more negotiating power as a Series B company, as it has proven itself to be successful. Related Reading: How to Pitch a Perfect Series B Round Series C Funding Series C funding is meant for companies that have already proven themselves as a business model but need more capital for expansion. Like Series B funding, Series C investors will often be entrepreneurs and individuals who have already invested in the company in the past. A startup may connect with their angel investors and Series A and Series B investors first when trying to procure Series C funding. If a business has made it to Series C funding they are already quite successful. Whereas earlier stage rounds are used to help a startup find traction and grow, by the time a startup raises their Series C they are already established and growing. By raising a Series C a business will be able to make strategic investments. This could mean investing in market expansion, new products, or even acquiring other companies. Average Series C Funding Amount Source Crunchbase A Series C funding amount is generally between $30 and $100M settling on an average round of $50M. At this point, a startup’s valuation is likely over $100M and they are on a national radar looking to expand internationally. How to Acquire Series C funding? When approaching a Series C, the strategy will likely change from earlier rounds. As we mentioned, the average is around $50M. This means that your investors cutting checks between $1 and $5M from earlier rounds are no longer likely to lead a round. Previous investors may be keen to invest in your Series C but startups will need to fill out the remainder of the round from other investors. When approaching a Series C valuation, your company likely speaks for itself and will have more inbound requests from investors. These investors will likely be later-stage VC funds, private equity firms, and banks. Later Startup Funding Stages Depending on the business strategy, a Series C round may be the end of the road in terms of venture capital financing. At this point, the company is likely headed in a strong direction and owns a large % of an addressable market. However, some companies go on to raise their Series D, Series E, Series F, and even Series G. Series D Funding A Series D funding round may occur if the company was not able to raise enough money through its Series C. This often has implications for the business. Series D funding occurs when the business was not able to meet its targets with its Series C, and consequently it can mean that the business is now at a lower valuation. Being priced at a lower valuation is usually very negative for a business. If Series D funding is necessary, due to challenges that the company is facing, then it may be the only way for the startup to survive. However, it generally devalues the company, and may shake future investor faith. Series E Funding Series E funding may be necessary if Series D funding isn’t able to meet the company’s needs for capital. This is, again, a very bad sign, and very few companies are going to survive to Series E funding. Series E funding will only occur if the business still hasn’t been able to make up its own capital but the business is still struggling to remain active and private. Series F Funding Beyond Series E funding comes Series F funding. Very few companies will make it to Series F funding. This is many years into a company's lifecycle. Series F funding is largely used for capital-intensive businesses that need to fuel their next stage of growth, an IPO, an acquisition, or expansion. Series G Funding Next comes Series G funding. Even fewer companies will make it to a Series G. Like Series E or F funding, a Series G round is typically used for companies that are on to their next stage of growth, gearing up for an IPO or acquisition, or expansion into a new market. Related resource: Emerging Giants: An Overview of 20 Promising AI Startups Initial Public Offering (IPO): Accessing Public Markets for Funding An IPO has traditionally been the pinnacle of a startup’s success story. As put by the team at Investopedia, “An initial public offering (IPO) refers to the process of offering shares of a private corporation to the public in a new stock issuance for the first time. An IPO allows a company to raise equity capital from public investors.” For startup founders and early employees, an IPO is an opportunity to cash out. Track Your Startup’s Fundraise With Visible No matter the series, size, or timing of your round, Visible is here to help. With Visible, you can manage every stage of your fundraising pipeline: Find investors at the top of your funnel with our free investor database, Visible Connect Track your conversations and move them through your funnel with our Fundraising CRM Share your pitch deck and monthly updates with potential investors Organize and share your most vital fundraising documents with data rooms Manage your fundraise from start to finish with Visible. Give it a free try for 14 days here. Related resources: Strategic Pivots in Startups: Deciding When, Understanding Why, and Executing How Multiple on Invested Capital (MOIC): What It Is and How to Calculate It Navigating the Valley of Death: Essential Survival Strategies for Startups Top 18 Revolutionary EdTech Startups Redefining Education Top Creator Economy Startups and the VCs That Fund Them Business Venture vs Startup: Key Similarities and Differences

At Visible, we oftentimes 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: A Quick Overview on VC Fund Structure A strong sales and marketing funnel starts by identifying the right leads for your business. The same idea is true for founders looking to find investors for their business — find the right investors for your business. If you’re a founder located in Israel and would like to find the right investors for your business, check out our list of active investors in the area below: 1. Altair Capital As put by their team, “We invest in the world’s most promising companies with disruptive ideas and great return potential. We invest in early and growth stage startups in sectors such as Productivity tools, Fintech, Insuretech, AI, Digital Health. Great and motivated teams, strong product vision, scalable business model and big potential market are a must!” Location Altair Capital invests in companies in Israel, the US, and Europe. Company Stage Altair looks for companies that have achieved initial traction. Preferred industries As put by their team, “We are interested in productivity tools/future of work, SaaS, Fintech, Insuretech, AI, Digital Health.” Portfolio Highlights Some of Altair’s most popular investments include: Miro Deel OpenWeb Learn more about Altair Capital by checking out their Visible Connect profile → 2. Pitango Venture Capital As put by their team, “Pitango is home to visionary entrepreneurs and groundbreaking companies from stealth mode to growth. We partner with exceptional founding teams via three parallel funds Pitango First, Pitango Growth and Pitango HealthTech.” Location Pitango is located in Tel Aviv and invests in companies across the globe. Company Stage Pitango VC invests in companies from the earliest stages to growth stages. Preferred industries Pitango invests in multiple sectors and has funds dedicated to HealthTech and Growth stage companies. Related Resource: How Venture Capital is Funding the Future of Healthcare + 7 VC Firms Making Investments Portfolio Highlights Some of Pitango’s most popular investments include: Via Logz.io Tulip Learn more about Pitango Venture Capital by checking out their Visible Connect profile → 3. Vertex Ventures As put by their team, “We’ve worked with some of the most iconic startups to come out of Israel. Our experience and diverse backgrounds support our founders in their journey to grow their companies and become industry leaders. Vertex Ventures Israel funds are consistently ranked as top performers. We invest cross-verticals, from Seed to B.” Location Vertex Ventures is located in Tel Aviv and invests in companies across Israel. Company Stage Vertex invests in companies from Seed to Series B and beyond. Related Resource: The Understandable Guide to Startup Funding Stages Preferred industries Vertex Ventures is industry agnostic. Portfolio Highlights Some of Vertex Ventures’ most popular investments include: Base Yotpo EasySend Learn more about Vertex Ventures by checking out their Visible Connect profile → 4. Jerusalem Venture Partners As put by their team, “Founded in 1993 under the famed Yozma program by Dr. Erel Margalit, Jerusalem Venture Partners VP has created and invested in over 160 companies in Israel, the US and Europe. JVP’s investment strategy is spearheaded by a deep expertise in identifying opportunities from inception and growing them into global industry leaders. Through our theme-driven focus and strong network of strategic partners, we seek to stay ahead of the latest market trends and address the most relevant market needs.” Location Jerusalem Venture Partners has office locations across Israel. Company Stage JVP is stage agnostic and invests in companies from seed to growth stages. Preferred industries JVP invests across many industries and has a focus on Cyber Security, Big Data, Enterprise Software, and FoodTech. Related Resources: 10 Foodtech Venture Capital Firms Investing in Food Innovation and 15 Cybersecurity VCs You Should Know Portfolio Highlights Some of JVP’s most popular investments include: Dealhub Quali Nanit Learn more about Jerusalem Venture Partners by checking out their Visible Connect profile → 5. Grove Ventures As put by their team, “Grove Ventures is a leading early-stage venture capital investment firm with over half-a-billion dollars under management. We partner early with exceptional Israeli entrepreneurs who believe that the Deep Future is now and are ready to build it.” Location Grove Ventures is located in Israel and invest in companies across the globe. Company Stage Grove Ventures is focused on early-stage companies. Preferred industries Grove Ventures is hyperfocused on Deep Future companies. Portfolio Highlights Some of Grove Ventures’ most popular investments include: Rapid Lamigo Navina Learn more about Grove Ventures by checking out their Visible Connect profile → 6. Viola Ventures As put by their team, “Viola is a multi-strategy investment house with focused, separate investment arms. We partner with companies from inception to growth. Each partnership operates independently with a dedicated investment team, investors, pool of funds, and portfolio companies, but shares access to added-value services, best practices and insights.” Location Viola is located in Tel Aviv and invests in companies across the globe. Company Stage Viola has 5 different funds that invest in companies across many stages. Preferred industries Viola uses their 5 funds to invest in companies across different industries and markets. Related Resource: FinTech Venture Capital Investors to Know Portfolio Highlights Some of Viola Ventures’ most popular investments include: Ridge Grove Addressable Learn more about Viola Ventures by checking out their Visible Connect profile → 7. Entrée Capital As put by their team, “Entrée Capital was founded in 2010 to provide multi-stage funding to innovative seed, early and growth-stage companies all over the world. Entrée Capital manages over $1.2 billion across nine funds and has invested in over 180 startups.” Location Entree has office locations in New York, London, and Tel Aviv. They invest in companies across the globe. Company Stage Entree invests in companies from Pre-seed to Series C. Preferred industries Entree focuses on a wide variety of different industries. Including everything from Crypto to SaaS to Games & Social. Related Resource: 14 Gaming and Esports Investors You Should Know Portfolio Highlights Some of Entree Capitals’ most popular investments include: Stripe Monday Deliveroo Learn more about Entrée Capital by checking out their Visible Connect profile → 8. Magma Venture Partners As put by their team, “Magma Venture Partners is a leading Israeli venture capital firm, dedicated to investing in Israel’s Information, Communications and Technology space (‘ICT’), including the software, semiconductor and new media spheres. We seek bright ideas at their earliest stages, and serve as a springboard for our entrepreneurs as they develop and evolve into industry leaders. Our goal is to enable a flow of innovation from the earliest stage all the way through until a company realizes its potential reach.” Location Magma Venture Partners is headquartered in Tel Aviv and focuses on companies across Israel. Company Stage Magma Venture Partners is focused on early-stage companies. Preferred industries As put by their team, “Information, Communications and Technology space (‘ICT’), including the software, semiconductor and new media spheres.” Portfolio Highlights Some of Magma Venture Partners’ most popular investments include: Guesty Waze Trink Learn more about Magma Venture Partners by checking out their Visible Connect profile → 9. Cardumen Capital As put by their team, “Our general partners are investors, founders and operators. We have over a decade of experience founding and operating companies and helping entrepreneurs build, scale, and sell tech companies in Israel, Europe and in the United States. Our team is a diverse group of people from different backgrounds and upbringings. We strongly believe that different perspectives lead to better decision-making.” Location Cardumen Capital is located in Israel and invests in companies across Israel, Europe, and the United States. Company Stage Cardumen Capital is focused on companies between Pre-seed and Series A. Preferred industries Cardumen Capital is industry agnostic. Related Resource: 17 Travel & Tourism VC Investors that can Fund Your Startup Portfolio Highlights Check out some of Cardumen Capital’s most popular investments below: Munch Peech Spotlight.ai Learn more about Cardumen Capital by checking out their Visible Connect profile → Join Visible and connect with the right investors for your business 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.

At Visible, we oftentimes 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: A Quick Overview on VC Fund Structure A strong sales and marketing funnel starts by identifying the right leads for your business. The same idea is true for founders looking to find investors for their business — find the right investors for your business. If you’re a founder located in Latin America and would like to find the right investors for your business, check out our list of 7 active investors in the area below: 1. Bossanova Investimentos As put by their team, “Bossanova is the most active VC in Latin America; We invest in startups at the pre-seed stage; B2B or B2B2C companies with scalable and digital business models that are operating and making money.” Location Bossanova Investimentos is located in São Paulo and invests in companies that are headquartered in Brazil. Portfolio Highlights Some of Bossanova’s most popular investments include: FanBase Famefy Scooto Stage Focus Bossanova Investimentos is focused on pre-seed and seed stage companies. They typically invests between BRL 100k and BRL 500k. They also seek out companies that have at least BRL 20k in monthly income. Related Resource: The Understandable Guide to Startup Funding Stages 2. Canary As put by their team, “We believe that the first round is the best one to start a long-term relationship with a founder, especially in a young startup ecosystem like Latin America. We believe in the right money for the right stage of a company. And we are fully focused on being the best first investor. We believe our ecosystem is at a tipping point. The quality of founding teams is already world-class and improving at an accelerating pace, the entrepreneurial mindset is permeating universities and younger generations and our nation’s top talent is founding companies rather than looking for traditional jobs. All over the world technology is changing the way people do business and live their lives. LatAm is no different.” Learn more about Canary by checking out their Visible Connect profile → Location Canary is located in São Paulo and invests in companies across Latam. Portfolio Highlights Some of Canary’s most popular investments include: Alice Clara Trybe Stage Focus As put by their team, “We partner with founders at the first venture capital round, from pre-Power Point to Series A. We’ve invested in rounds as small as USD 250K and as large as USD 15M+. We prefer and typically lead the first round, investing the largest amount of capital and defining the legal terms.” Related Resource: 7 Prominent Venture Capital Firms in Brazil 3. Monashees As put by their team, “monashees is the pioneer venture capital firm in Latin America. It partners with outstanding founders who are revolutionizing large markets. The firm serves entrepreneurs starting with their very first movements, supporting their growth through its expansion funds. With a human-values-first approach, monashees helps founders challenge the status quo and improve people’s lives through technology.” Learn more about Monashees by checking out their Visible Connect profile → Location Monashees is located in São Paulo and invests in companies across Latin America and the globe. Portfolio Highlights Some of Monashee’s most popular investments include: Clara Loggi Nomad Stage Focus Monashees does not publicly state what stage and how much they invest in portfolio companies. 4. Redpoint Eventures As put by the team at Redpoint Eventures, “Our mission is to support Brazilian digital market entrepreneurs on their journey to create fast-growing companies. Together with its partners, prominent U.S.-based firms Redpoint Ventures and e.ventures, Redpoint eventures brings funding, Silicon Valley access and global best practices to promising startups. In addition to serving the companies in its portfolio, the fund’s team contributes to the development of the growing entrepreneurial ecosystem in Brazil.” Learn more about Redpoint Eventures by checking out their Visible Connect profile → Location Redpoint Eventures is located in São Paulo and invests in companies across Brazil. Portfolio Highlights Some of Redpoint Eventures most popular investments include: Pipefy Gympass Cortex Stage Focus Redpoint Eventures does not publicly state what stage companies they typically invest in and what check size they write. 5. Magma Partners As put by the team at Magma Partners, “We’ve backed 125+ startups with $80M+ to help founders solve Latin America’s biggest problems by building scalable, technology businesses in big markets. While we’re best known for fintech, insurtech and marketplaces, we are a generalist fund backing Latin America’s top entrepreneurs. We’d love to be your first investor, but if we missed you at pre-seed, we can invest all the way to Series A.” Learn more about Magma Partners by checking out their Visible Connect profile → Location As put by their team, “We invest most of our capital in Spanish-speaking Latin America and devote a smaller percentage of our capital to early stage Brazil-based companies. We invest in companies that are either based in Latin America, do business in Latin America, or will be expanding to Latin America imminently. We also invest in Latin American immigrants or US Latins who may do business in Latin America in the future, or would like to have some of their team in Latin America.” Portfolio Highlights Some of Magma Partner’s most popular investments include: HelloGuru Bexi Groupraise Stage Focus As put by their team, “We invest $50k to $5M to back founders raising venture capital at pre-seed, seed and series A in Latin America.” 6. Spectra Investments As put by the team at Spectra Investments, “We manage Latin American focused funds, offering sophisticated investors access to multiple strategies, through balanced funds, mitigating costs and risks. Our portfolios are hybrid, investing in theses such as Growth, Buyout, Venture Capital, Distress, Legal Claims, Mining, Search Funds and Special Situations, amongst others in the region.” Location Spectra Investments is headquartered in São Paulo and invests in companies across all of Latin America. Portfolio Highlights Some of Spectra Investment’s most popular investments include: Bratus Capital Oria Monashees Stage Focus Spectra Investments in focused on investing in growth stage companies and different venture capital funds. Related Resource: Private Equity vs Venture Capital: Critical Differences 7. DOMO Invest As put by their team, “DOMO Invest is a leading venture capital firm in Brazil that invests in best-in-class entrepreneurs. We back early-stage consumer-focused technology startups, helping them grow faster and establish themselves in competitive markets. We started from the collective desire of our founding partners to contribute to the success of the next generation of Brazilian entrepreneurs. DOMO’s multi-disciplinary team is supported by its Advisory Board whose members have solid and proven track records in creating, investing, advising, and financing tech startups of all sizes.” Learn more about DOMO Invest by checking out their Visible Connect profile → Location DOMO Invest is located in São Paulo and invetss in companies across Brazil. Portfolio Highlights Some of DOMO Invest’s most popular investments include: Loggi Gympass Hotmart Stage Focus As put by the team at DOMO, “​​We back early-stage consumer-focused technology startups, helping them grow faster and establish themselves in competitive markets.” Looking for Investors? Try Visible Today! 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.