Venture Capital

I'm running low on cash. Now what? 

This might be one of the most sincere and frequent questions that Peter and Jon get asked. 

In this episode we talk about coping strategies Founders should explore as they attempt and consider raising another round.

In today's episode Jon and Peter talk about the effect of VC Collective on VC Landscape

• What is a VC collective?
• Examples:
  • Curql Collective - Met Nick Evens at Fintech MeetUp
    • $90 million in capital deployed
    • Reach over 100 Credit Unions, Credit Union Service Organizations, and League limited partners
  • Black Dragon Capital with Benson Porter & Louis Hernandez Jr.
    • $80M USD assets under current management
    • Partners come from -
    • Former CEO of Credit Union National Association
    • Former CEO of Boeing Employees’ Credit Union
    • Black Dragon is launching a credit union and CUSO (credit union service organization - credit union owned) LP fund….a credit union LP fund
  • Chase and Wells Fargo have their own venture arms. How are collectives formed by smaller banks and credit unions changing the VC space?
• If VC Collectives have strong ties, how does this affect traditional VCs?
• Is co-investing between traditional VCs and collectives important?
• What industries are forming their own VC Collectives?
• Sources
  • https://www.curql.com/
  • https://www.prnewswire.com/news-releases/black-dragon-capital-names-benson-porter-former-ceo-of-becu-and-first-tech-credit-union-as-executive-advisor-to-focus-on-technology-investing-that-benefits-credit-unions-301750829.html
  • https://www.americanbanker.com/list/6-venture-funds-connecting-banks-and-credit-unions-with-fintechs

Whats is your take?  We read and respond to all of our comments and messages on Instagram, and LinkedIn. Come find us and join the conversation.

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In today's episode Jon and Peter talk about what the current downturn of Tiger Global 

• Early March it came out that Tiger global investment portfolio *Venture portfolio* is down 33%
• Even before that Tiger Global has become a laughing stock, or the poster child of venture excess
• Did they make a mistake? Are they in trouble? Stripe’s recent $6.5B investment marks them down 50%
• What is Tiger Global?
  • An investment firm focused on “public and private companies in the global Internet, software, consumer, and financial technology industries.”
  • $58B under management (September 2022)
• What is their unique approach?
  • Known for being extremely aggressive
  • “Annoint” winners by dumping cash on the market leader
• What are their popular investments?
  • Coinbase
  • Facebook
  • Flipkart
  • LinkedIn
  • Spotify
  • Stripe
• Peter, why did you want to cover this?
• Sources
  • https://en.wikipedia.org/wiki/Tiger_Global_Management
  • https://www.tigerglobal.com/

Whats is your take?  We read and respond to all of our comments and messages on Instagram, LinkedIn. Come find us and join the conversation.

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In today's episode we ask some pertinent questions regarding SAFEs.

• What is a SAFE: Simple Agreement for Future Equity?
• How is it different from a convertible note?
• Why do investors like YC push SAFES?
• What are the Pros and cons for VC and for Entrepreneur
• Why do VCs not want to load rounds? 

Whats is your take? Do you agree with us? We read and respond to all of our comments and messages on Instagram, LinkedIn. Come find us and join the group. 

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Jon and Peter talk about the hottest topic- SVB Crash.

• Peter breaks down what led to the crash 
• We look at how exposed were VCs to Silicon Valley Bank?
• Jon asks Peter to explain Capital calls, and how most VCs only have 2% on hand each time
• Silicon Valley bank offered loans to VCs. What will happen moving forward?
• Will VCs have to increase cash on hand?
• Are VCs doubling down on prior investments or picking new ones while valuations are correct?

Do follow us on Instagram and share how you feel about SVB situation.

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Jon, Peter and Scott decode how Chat GPT will impact the future.

If people need to be scared? Or better prepared.

Jon- talks about how Builder.ai and Bubble.io are enablers for people to get their MVPs off the ground and not direct competition.
And while Chat GPT might feel threatening at this point for the businesses like his, we have to remind ourselves that not everything turns out how its supposed to.

One of the big examples being Tesla's self driving cars.

Peter chimes in with an example where Chat GPT was able to spurt out a quick answer to a legal question a lawyer asked. But after fact checking it soon turned out to be factually incorrect.

While the technology in itself is incredible, it has a long way to go.

Scott Paul is the Founder of Convoi Ventures.

He's helped turn Utah into a thriving startup culture and he is a supportive leader and angel investor.

Do follow us on Instagram and share how you feel about Chat GPT. 

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We gave both Scott and Peter an opportunity to vent, to talk about instances, examples that are otherwise hard to share in social circles due to interpersonal conflict.

They say, there is no learning better than learning from other people's mistakes. And sometimes its your own mistakes that makes you a better VC.

Scott and Peter reflect back on many such instances that can be highly educational. We hope you make the most of this episode. We have tried something new and if you like it- do let us know.  Write to us, tag us, share it on your stories and leave us a feedback.

We are sharing some highlights on our social media pages, don't miss out on following us there.

Scott Paul is the Founder of Convoi Ventures.

He's helped turn Utah into a thriving startup culture and he is a supportive leader and angel investor.

Follow Scott Paul
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Scott Paul describes the Utah angel investing ecosystem, and his role as a Founder of Convoi Ventures, an $8M rolling VC fund here in Utah.

He's helped turn Utah into a thriving startup culture and he is a supportive leader and angel investor.

Utah has a strong entrepreneurial spirit, with a growing number of startups and small businesses emerging in recent years.

Angel investors are a critical component of the Utah startup ecosystem, providing seed funding and mentorship to early-stage companies. These investors are typically high-net-worth individuals who invest their own capital in promising startups in exchange for equity.

Utah has several angel investor groups, including Salt Lake City Angels, Park City Angels, and Utah Angels. These groups offer a range of resources and support for startups, including funding, mentorship, networking opportunities, and access to a wide range of industry experts.

In addition to angel investor groups, Utah has a number of venture capital firms that specialize in early-stage funding. These firms typically invest larger sums of money in startups that have already demonstrated some level of success, such as a working prototype or a small customer base.

Overall, the Utah angel investing ecosystem is highly supportive of startups and is known for its strong sense of community. With a growing number of investors and a vibrant startup culture, Utah is becoming an increasingly attractive destination for entrepreneurs seeking funding and support for their new ventures.

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As an AI language model, ChatGPT doesn't have any direct impact on venture capital. However, ChatGPT and other AI technologies may indirectly affect venture capital in several ways:

1. Improved investment decision-making: AI technologies like natural language processing, machine learning, and predictive analytics can help venture capitalists analyze large amounts of data and make more informed investment decisions. ChatGPT, for example, can help investors quickly analyze large volumes of text-based data, such as news articles, social media posts, and earnings reports, to identify trends and patterns that could impact investment decisions.
2. Enhanced due diligence: Venture capitalists typically conduct extensive due diligence before investing in a startup. AI technologies can help streamline this process by analyzing a company's financials, patents, and other data to identify potential risks and opportunities. ChatGPT can assist in this process by analyzing large amounts of text-based information and helping investors quickly identify key information.
3. Improved portfolio management: AI technologies can help venture capitalists better manage their portfolio of investments. For example, ChatGPT can analyze news articles, social media posts, and other data sources to help investors monitor trends in their portfolio companies and identify potential risks and opportunities.
4. Increased efficiency: AI technologies can help venture capitalists automate many of their repetitive tasks, such as data entry and analysis, freeing up time to focus on higher-value activities like networking, due diligence, and portfolio management.

Overall, AI technologies like ChatGPT have the potential to significantly impact the venture capital industry by improving investment decision-making, enhancing due diligence, improving portfolio management, and increasing efficiency.

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What is the effect of ChatGPT on startups? Though ChatGPT can have a positive impact, it will also shake up many industries. 

Here is a quick summary of the areas we think ChatGPT will affect/change the soonest. 

1. Customer Support: Startups can use ChatGPT to provide 24/7 customer support to their users. ChatGPT can handle a large volume of customer queries and provide quick and accurate responses, which can lead to higher customer satisfaction and retention rates.
2. Product Recommendations: ChatGPT can analyze customer data and provide personalized product recommendations. This can help startups increase their sales and revenue by providing customers with products that they are more likely to purchase.
3. Market Research: Startups can use ChatGPT to conduct market research by analyzing customer feedback and reviews. This can help them understand their target audience better and make more informed decisions about their products and services.
4. Content Creation: ChatGPT can assist startups in generating content such as blog posts, social media updates, and email newsletters. This can help startups save time and resources on content creation while still maintaining a high level of quality.
5. Virtual Assistants: Startups can use ChatGPT to create virtual assistants that can handle various tasks such as scheduling appointments, sending reminders, and answering basic queries. This can help startups streamline their operations and reduce their workload.

What do you think? Follow the links below and let us know.

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