Marcel Kuin

Great insights from Adam Agius on what to consider when raising debt for a search fund buyout. Most relevant to the UK market, but a worthwhile read for all searchers. There's more debt capital keen to support search acquisitions than ever before, but approaching it naively can be very costly...

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At Minds Capital we invest equity in deals from both searchers and independent sponsors. Below is an overview of how these two types of business acquirers differ. With the increasing cost of capital, we have seen investor terms improve over the last 2-3 years.

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The profitability sanity test for VC-backed unprofitable cos. Ask this question: How much revenue would it take to be breakeven if: - gross margin % is held constant - all opex spend is held constant on a $ basis Is that revenue achievable with no additional cost? In the attached example, the company needs to grow revenues from $50,000,000 to $87,500,000 with no additional expense to be breakeven. That's $37,500,000 of incremental revenue with $0 of added expense. The question for this business is whether that's possible. If the gap seems too large, then to make the gap more attainable there are two levers: - increase gross margin % - reduce operating expense The best means to do that varies by business, but those are the two levers. And this needs to happen while the company is growing revenues. If the gap seems impossible, then you may have a fundamental business model issue that will make profitability a remote possibility. Of course, there are means in which companies can grow to achieve scale which will help with the profitability likelihood over time - but that will require outside capital which should never be treated as categorically attainable.

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A HUGE thank you to everyone involved in publishing the latest report from ESG_VC and the British Private Equity & Venture Capital Association (BVCA) today! The report is packed full of useful insights into how start-ups are actually performing across their work on environmental, social, and governance issues. There's also a brand new roadmap for ESG in start-ups with specific guidance on the initiatives to implement from Pre-Seed through to Series C and beyond. A particular shout out to everyone involved in the production including Suzi Gillespie and Ewa Skornas at the BVCA, David Strong and Dianne Skurray at Marriott Harrison, and Susannah Philipson and Nadeem Muzaffar at Seven Hills, who designed this beautiful report. I'm also massively grateful for all of the hard work that our VC contributors put into compiling data from 587 portfolio companies across the UK, Europe, and around the world - a few names to mention include Ashleigh, Shanice, Lauren, Laure, Michelle, Jason, Hessel, Emily, Beth, Joe, James, Eugenia, Alex, Grace, Emma, Emily, Lucy, Cordelia, Nina, Raj, and Rob. Thank you to you all! And thanks as ever to the remaining members of our steering group for their ongoing support of ESG_VC - Antonia at Seedcamp, Leslie at Astanor Ventures, Natalie at Lakestar, Andrew at Par Equity, and of course Karen McCormick for all of your support at Beringea! Check out the full report via the link in the comments! And let us know what you think about it! #ESG_VC #sustainability #venturecapital

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Looking forward to joining this panel to discuss the fine balance between growth and burn for SaaS companies in the current funding environment alongside some great investors and operators:Jaysri, Julia, Rasika & Eva!

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To achieve outsized returns in a maturing and increasingly crowded private markets space, investors should start leveraging all dimensions of diversification when building their portfolios! That comes with building the right teams to unlock differentiated sources of dealflow 🔔

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I couldn’t be prouder to be a Venture Partner at Isomer Capital (aka the best European FoF - at least for me) as we just announced the launch of our pioneering £100m secondaries fund. This fund is dedicated to acquiring stakes from LPs in various VC funds, tapping into a massive and largely unexplored market. 🌟 Key Highlights: - Focused Investment: Primarily targeting stakes in VC funds, with selective investments in private companies. - Robust Funding: Already over 20% funded, thanks to strong support from Nordic family offices and a German foundation. - Market Potential: With a growing number of private tech companies and a VC liquidity crunch, Europe's VC secondaries market is poised for rapid growth. - Track Record: This isn’t Isomer’s first foray into the secondaries market. As a firm we’ve done several secondaries deals with portfolio companies and VC firms, including early-stage VC Seedcamp (in 2021) and mobility giant Bolt (in 2023). - Expert Team: Welcoming the amazing Omolade (Rachel) A., formerly of Coller Capital, as a principal to lead this initiative. 💡 Investment Strategy: - 65-75% of the fund will buy "LP interest" stakes in VC funds. - 15-25% will be directed towards stakes in companies. - Up to 15% reserved for flexible investment opportunities. 📈 Looking Ahead: We're targeting returns of 2-3x, with significant distributions expected in the next 4-7 years. As one of the few players in this space, we're not just participating in the market—we're driving it forward. Read all about it here: https://lnkd.in/dc7sbC3G #VentureCapital #SecondariesFund #EuropeanVC

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Its's a deal flow time! We are about to share the details of 637 start-ups who joined Rare Founders London's largest #demoday 2 weeks ago with all the investors (only verified ones) in our community. If you are a #founder who is #fundraising and want to get more exposure to investors (IT'S FREE) - submit your details following the link in comments. If you are an #investor interested in pre-seed to series A start-ups join our community (link in comments) to get access access to the monthly deal flow. Please tag #investors and #founders who this might be applicable for.

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49 founders and senior startup leaders respond to a survey from Sifted on the relationship between founders and VCs. Are expectations off from the start as VCs try too hard to pander to their founders with over promises of "value-add" and extensive platform teams? Do founders need to be reminded of their primary role - execution?

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When the market has shifted from growth at all costs, to efficient growth - but we still want growth, what's a CFO to do? Imagine being a CFO at a high growth startup who has to manage costs whilst still ensuring they've got their foot on the accelerator to make sure the company continues to scale. Well the team at Vertice have teamed up with Pleo for a practical webinar where me and an experienced CFO panel will share how we've successfully. Join me on the 27th of June alongside Alison Rose - CFO of the fast-growing Ebuyer and former leader at SharkNinja, bringing expertise in navigating growth while optimising costs and, Philip Watson - Former finance leader at ZoomInfo, current CFO at Paddle (175% average growth over 4 years). And, in case you're wondering, here’s what’s on the agenda: → How to balance daily tasks with tech management → Identifying and preventing tech overspend → Tips for conducting tech audits → How to decide on tech contracts June 27 | 10AM BST | 11AM CEST | 3PM EST Link to the webinar in the comments :)

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Today's episode is an exciting one for me — personally. I brought on Niklas James and Max Lummis, CPA, CVA, CFE, my 2 partners in Minds Capital, a fund we've recently launched to invest in the deals of searchers & sponsors. So this is the formal announcement of a project one year in the making. I didn't want this to just be a self-promotional episode, so we make a point to discuss Minds Capital in a way that is valuable to you. We talk about: * how a fund comes together, * why we would want to raise a fund, * what it was like to ourselves raise money from investors (the LPs), * how the perspective as an investor differs from that of a business buyer (listen closely there), * why small acquisitions are hard for a fund to invest in, * and much more. As you'll hear me say at the end, I'm thrilled to be partnered with Max & Niklas, who have years of experience and relationships in our space, but just as important, are 2 individuals I consider of the highest caliber. To learn more about what we're doing (or if you have a deal under LOI that you're raising money for!), see MindsCapital.co. Please enjoy this conversation with Max Lummis, Niklas James, and me, the 3 general partners of Minds Capital! 👉 link to interview in comments below

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Including your full team within fundraising not only helps alleviate the significant resource required, it helps investors learn about the Firm's culture, team dynamics and depth of experience and responsibilities across the team. It also aligns the full Firm in the fundraising process. Help the team put their best foot forward by ensuring messages are consistent and all processes outlined within fundraising and marketing materials are not just a slide in a deck but widely used and understood... More tips on how to best engage your full team below from InRider Partners

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Family Offices + Emerging Funds = a fantastic opportunity. Here’s why: Over the past few years we’ve seen more Family Offices wanting to get involved in venture, especially within the younger generation. I’m biased of course, but investing in emerging funds could be a great route for FOs, because… 1) Portfolio/asset diversification– FOs typically invest in traditional asset classes, investing in startups is a key way to diversify across asset class and industry. 2) Access to unseen deal flow– emerging funds offer a series of well-vetted investments for FOs. 3) High growth potential– typically FOs invest in later stage funds. Early stage ventures offer huge growth potential.   4) Access to expertise– directly investing and getting deal flow is tough, FOs benefit from the funds expertise in finding deal flow. 5) Ability to invest directly– after initial investment, FOs can double down on investment once they have access to these companies.  6) Higher return potential– while investing in traditional assets is less risky, investing in venture offers the ability to 5-10x investment in as little as 5 years. We’re at a turning point now with startup investment. Valuations are low but the ecosystem is strong so a great time for Family Offices to be getting more involved in venture. What do you think? ---- If you liked this post, I also have a newsletter where I speak about topics like this in more depth. You can subscribe in the comments below. Thanks! #familyoffices #investment #familyofficeinvesments

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👉 2 upcoming IPOs and “net equity supply” 1️⃣ Klarna, the buy now pay later (BNPL) giant, made a major step towards a public listing in New York - expected to value it at as much as $20bn. As reported by Sky News https://lnkd.in/ewYAU3Hx today, the Stockholm-based European Fintech champion has secured backing from shareholders and regulators to establish a new UK-registered holding company. The listing is to be expected in the first quarter of 2025. 2️⃣ Raspberry Pi - In the dynamic world of microcomputing, the Raspberry Pi stands out as a beacon of innovation and practicality. This powerful yet compact device has revolutionized the approach to computing, education, and innovation at large. The story of Raspberry Pi began in the early 2000s at the University of Cambridge’s Computer Laboratory. The faculty, including Eben Upton, who is now the CEO of Raspberry Pi, observed a decline in the skill levels of applicants to their computer science course. This insight sparked a visionary project aimed at rekindling interest in computing among youths (even then💡). The darling of programmers and builders is expected to float in London at a valuation of around £500m. https://lnkd.in/eituM7AA 3️⃣ Net equity supply has been shrinking for years. We have all seen reports about the number of listed companies dwindling. But many in VC and PE did not care. But what about the net equity supply? Net Equity Supply = (IPO’s & Primary offerings) minus (Share Buy Backs & Take Privates/ Delistings). The chart below, from J.P. Morgan, illustrates the size of this phenomenon nicely. The main exit channel has been closed for years. Hurting the complete funnel. Let us hope that we will see a lot of new listings - with a strong performance - soon 🤞 #RaspberryPi #Innovation #Klarna #VC #startups #m&a #Technology #IPO

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The startup journey: where expectations meet reality 🤯 On today’s episode, Adam Goodall shares his eye-opening transition from working at PwC to diving into the startup world. He and his co-founder Matt initially took finance jobs to support themselves while working on their startup on the side. Driven by excitement, they built their product first, only to realise later the importance of finding a market before development - not what we’d recommend!! What’s the biggest expectation vs reality you’ve faced on your own startup journey? Share with us in the comments below! 💬 Hashtags: #startups #entrepreneurship #founderstories

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We don't spend enough time thanking the teams that enable the engine to run under the hood. Thanks Kasun De Silva & team for the great work and interesting article for anyone that wants to know more about what happens behind the curtains of hedge funds, venture debt funds and Bootstrap Europe!

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Excited to be a contributing part of Family Office as an asset class continuing to not only grow 300% since 2019, but also now accounting for a larger share of capital markets than Hedge Funds, Private Equity or VC. One of the interesting trends discussed is Family Offices moving away from publics and into privates - specifically Private Credit, Real Estate and Private Equity - and particulary loving Bio-tech, AI and Healthcare industry sectors https://lnkd.in/eZjNKEjU

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