During our mutual discovery process with Entrepreneurs at InReach Ventures, we engage in discussions of a strategic nature. This is mostly a function of the level of maturity of the startups in which we invest that often have limited metrics to fully support an investment decision. Therefore, strategic discussions are often the main topic to help us assess the investment opportunity.
During such discussions, one of the topics we cover is revenues and the nature of those revenues. Over many years of investing in different kinds of startups, we have learned that not all revenues are the same. …
Over the years interacting with tech entrepreneurs at InReach Ventures we have had many discussions in the area of productisation and product packaging. I wanted to try to summarise here some thoughts and I invite founders and funders to add their thoughts and comments as well.
We define productisation as the art of packaging your product. Product packaging is pivotal to entrepreneurs looking for product market fit. During our discussions with founders product discussions are sometimes limited just to the technology layer or feature bundles. …
Paradoxically, the Venture Capital industry has been a very static industry, with limited innovation since it started: the same type of people using the same investment process and the same professional services company culture.
At InReach Ventures we are inspired by and learn from our fellow entrepreneurs, rather than benchmarking ourselves against other investment firms. We have discussed the implications of this approach here: The Full-Stack Venture Capitalist.
Are you an entrepreneur? Get in touch here
Over the last 5 weeks, many entrepreneurs have asked about the position of InReach Ventures, given COVID-19 and the potential business implications for the fund, the investment portfolio and the overall investment strategy.
Let’s first state the obvious: this is not business as usual. There is nothing in the world that is business as usual and it would seem short-sighted for a venture firm to simply say “we are open for business as usual” or “we are not investing and need to wait and see”.
We are all affected by the current…
There is an emerging trend towards the use of data and software to evolve and develop the existing venture capital model. Interesting articles on this topic can be found here on Medium or here on Entrepreneur.com or here on the FT.
Venture firms use different methods to approach the data opportunity and it is evident that there is no single strategy that fits all. Different firms develop a varied approach based on their organisational design, budget and ambition. …
Today we are announcing the first closing of a new fund of €53m, targeted at early stage European technology companies. This first closing surpassed the original fund target of €50m. The fundraising process was unusually short and we were able to attract some of the most well respected LPs in the world. This is again a great validation that we are on the right track but we are also very aware that we have tons of work in front of us.
A Framework for Founders and Funders
The new year brings a flurry of year-end reviews, new year resolutions and predictions.
During the last few weeks of the year, at InReach Ventures we spend most of our time helping and supporting founders with their planning exercise. The most inspiring book to help to think through the relevance of the planning process is Andy Grove’s High Output Management.
Listening to funders we have learned the following rules of the game apply to a good planning process:
1 — There is one-size-fits-all planning process. They key is to adjust the process based on…
Two years ago Ben, John and I started InReach Ventures with a great idea, a strong will to work hard, and special support from our friend Riccardo Donadon and H-FARM. Today we have more friends supporting us and the idea is a reality. Our suspicions are being proven out by real-world evidence. Our biggest learning so far: we have a hell of a lot more to do.
Let’s start with some numbers. The chart below details what the team at InReach Ventures has achieved.
Technology entrepreneurship is fuelled by the relationship between founders and funders. The question for both is: how to engage with each other to build an effective relationship?
Historically, the fundraising process has been founder driven across multiple axis: timing, quantum, target list of investors, location, etc. Within this framework, funders have been seen as passive subjects in a target list that are qualified in or out based on their level of interest of an initial exec summary, their responsiveness and often their perceived brand.
The future of fundraising will morph and evolve in a funder driven fundraising process.
Founders are the new Kings and Queens. Limited Partners (LPs) are source of capital. The key to superb returns is identifying and attracting the best entrepreneurs.
Whilst the above might seem obvious, there are a few key points that are worth further analysis:
1. Service organisations to entrepreneurs — usually a service company provides services in exchange for the remuneration function of a market price. Professional funders don’t (should never) charge entrepreneurs, but instead they invest in them. At first glance, you could say that funders pay in order to provide a service. …
InReach Ventures and formerly @Balderton (Benchmark Europe) PORTFOLIO: @wooga @vivino @banjo @SaatchiArt @contentful @depopmarket @lifecake @marvelapp etc.