INSIGHTS

Featured LinkedIn Content

Venture Deal Basics

Down-Round Activity




Graduation Rates from Series Seed to Series A

Diagram:

"Graduation rates from Seed to Series A have fallen," illustrates the declining success rates of seed-stage startups progressing to Series A funding from Q1 2018 to Q2 2022  Key features of the chart:  • Time frame:  Q1 2018 to Q2 2022  • Measurement: The chart shows the cumulative percentage of startups that have "graduated" to Series A funding over time, measured quarterly up to 12 quarters after their seed round  Color coding: The percentages are color-coded, with light blue representing under 10%, dark blue: 10-24%; red: 25%+  • Two-year mark: The chart highlights the 8th quarter (2-year mark) as a significant milestone  •Trend: There's a clear downward trend in graduation rates starting in 2021  Key insights:  • Early cohorts (2018-2020) show higher success rates, often reaching 30-40%+ graduation rates by the 2-year mark  • The 2020 Q2 and Q3 cohorts show peak performance, with graduation rates exceeding 40% after 2 years  • Sharp decline in 2022

Source: Peter J. Walker (Carta), 🔗https://x.com/PeterJ_Walker/status/1825241890704511076

Cap Tables

Pay-to-Play Provisions



Venture Capital Fund Formation

Management Company and GP Structuring

Diagram:

VC Fund Structure: Venture Capital Firm, Fund Managers, Limited Partners, Management Company, GP, LPs, Ownership and related party structures

Source: Law of VC, adapted from NVCA, 🔗#27 Episode - Essential Checklists for VC Fund Formation ✅

Fund Liquidity

Diagram:

"Graduation rates from Seed to Series A have fallen," illustrates the declining success rates of seed-stage startups progressing to Series A funding from Q1 2018 to Q2 2022  Key features of the chart:  • Time frame:  Q1 2018 to Q2 2022  • Measurement: The chart shows the cumulative percentage of startups that have "graduated" to Series A funding over time, measured quarterly up to 12 quarters after their seed round  Color coding: The percentages are color-coded, with light blue representing under 10%, dark blue: 10-24%; red: 25%+  • Two-year mark: The chart highlights the 8th quarter (2-year mark) as a significant milestone  •Trend: There's a clear downward trend in graduation rates starting in 2021  Key insights:  • Early cohorts (2018-2020) show higher success rates, often reaching 30-40%+ graduation rates by the 2-year mark  • The 2020 Q2 and Q3 cohorts show peak performance, with graduation rates exceeding 40% after 2 years  • Sharp decline in 2022

Source: University of Chicago Booth, Stigler Center, 🔗The Rise of Private Equity Continuation Funds (Nili, Kastiel)

Structuring VC Funds (UK)

Diagram:

A diagram of VC Fund Structuring for UK funds

Source: Carmen Alfonso Rico, 🔗https://sifted.eu/articles/how-to-set-up-vc-fund-structure

Venture Capital Performance

VC Fund Waterfalls

QSBS

How to qualify for QSBS -

What Do Venture Capitalists Look For?

Diagram:

A diagram of VC Fund Structuring for UK funds

Source: Aumni, 🔗 Top 10 most requested metrics by series

Regulatory Compliance

VC Regulations

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