André Baken on LinkedIn: Currently, I'm assisting four startups in various capacities, with a… (2024)

Thank you for sharing this interesting paper, Gary Dushnitsky. The initial findings reinforce our decision to be a data-forward fund.At Future Frontier Capital, we deploy data driven strategies to screen startups. You can read about it in the white paper below.https://lnkd.in/gh5mV2hj

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"Software is eating the world" - but how is it digested by VCs?Over the past decades I have closely followed the venture capital (VC) space and studied numerous innovative investors and instruments. It is fascinating to observe how AI and data-driven tools are harnessed by VCs. This is not to say that VC fund AI and Data startups - of course they do. Interestingly, there is a growing trend by new and existing VCs to incorporate AI and data driven tools in their own operations.What does that look like and what are the implications? I invite you to read our recent piece. As always, I look forwards to your thoughts and questions!London Business School @Entrepreneurship and Private Capital at LBSCalifornia Management Review #venturecapital #artificialintelligencetechnology

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Evaluating potential portfolio companies for investment is an exciting journey, but pinpointing promising ventures is both an art and a science. Here is some insight into how Neotribe Ventures uncovers strengths and addresses weaknesses: 🔍 First, we assess founder-market fit, examining their synergy and experience with their target market. We also look at the longevity of their partnership and gauge the chemistry that fuels their collaboration.💡Second, we seek to understand the product and technology differentiation. How difficult a problem are you solving? How new is the approach? Is this a better, faster, cheaper mouse trap, or is it a radically new approach to the problem? Neotribe tends to gravitate more toward the latter. 👥 Third, we explore the size of the target market. Is it an existing market or a new one? What does the competitive landscape look like? What beachhead use cases are you targeting? What business benefits would the customer accrue by adopting your solution? How are they solving the problem today?📈 Fourth, we delve into the company's go-to-market strategy, examining how it plans to acquire customers and navigate any regulatory hurdles.💰 Finally, financing is a critical aspect of evaluation. We want to ensure the company is well capitalized so they have enough runway to achieve value creation milestones and are set up well to raise the next round. By evaluating these factors, we pinpoint gaps and devise a roadmap for success. Our collaboration with founders helps turn their visions into reality through strategic partnerships, mentorship, and a hands-on approach.

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Excellent points kittu and love the Neotribe approach; 2 points for all those founders out there:1. work with investors who have truly been operators and lived “in the arena” 2. Work with those that have proven that they never sacrificed values for short term $$🙏🏾🙏🏾🙏🏾

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Often overlooked, but an actual game-changer: It's not just the deal flow management; it's the relationship management. As venture capitalists, we often get caught up in the numbers and projections. We forget the importance of building and maintaining relationships. In a world dominated by technology, digital communications, and AI... Let us never forget the power of a personal connection. Investing in startups is not solely about spending money on new ideas. At its heart lies relationships - with founders, other investors, and industry experts - All are crucial for long-term success. So don’t just manage your deals; foster your relationships too. It could be the difference between a good investment and a great one!

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How do you maintain good governance and #ESG oversight while #startups scale rapidly and #VC investors' shareholding/rights are diluted? Our final note on good governance in #VC tackles the question we get frequently from our portfolio! The answer: leverage hard rights, deploy soft power, and mobilise the investment ecosystem. Check out the note for more guidance, tools and case studies!

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Last week British International Investment, FMO Investment Management & Agile Governance Inc (which I co-founded with David Porteous and Sam Parker) launched the third guidance note on Venture Capital Governance, a series providing toolkits, frameworks and guidance on how startups and VCs can implement better governance to manage risks and increase company/ exit value.This is the first note on Warning Signals: https://lnkd.in/eqhpQUFBWould appreciate your input and we would be grateful for you to share with the ecosystem (any entrepreneur or VC that values governance and would like to join this important movement to increase confidence in startups, especially across emerging markets).All three guidance notes are in the comments. Thanks to Giulia Rigazio and Huma Yusuf

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If you are a startup platform please stop claiming that you are the first to do it unless…You have actually done the research and know it to be true. As part of my work in investment due-diligence I am often the one who will provide your potential investors with a list of multiple organizations that have been doing what you claim is a ‘new invention’ In hundreds of due-diligence projects less than 10% of teams make this a valid claim.If you can provide a comprehensive analysis and prove the claim and how you validated it, great.If you can’t validate it I have to tell your potential investors that you are either full of hot air, don’t have real understanding of your market, or hiding something (or all three.)If I have to look around and find you are misrepresenting it with bad faith, then I have to break the news that your are simply lying to your prospective investors.*that all assumes that the investor or due-diligence researcher isn’t an expert who knows you are ‘full of it’ the second we read it.#innovation #venturecapital P.S. and using ‘AI’ in the phrase just makes it that much worse…

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At CommerzVentures, we're constantly thinking about ways to analyse and strengthen our investment decision-making processes. Recently we dove into different ways in which biases - in particular overconfidence bias - can weaken decision-making.🎯 Overconfidence Bias DefinedOverconfidence bias refers to the well-established bias in which a person's subjective confidence in their judgements is reliably greater than the objective accuracy of those judgements.🧠 The Impact of Overconfidence BiasOverestimating one's knowledge might lead an investor to choose to ignore, or fail to gather, evidence when performing due-diligence on startups. It's no secret that venture is an uncertain game, requiring investors to make decisions with incomplete data. However, falling prey to the mental shortcut that is overconfidence bias disrupts accurate assessments that may lead to funding under-performing ventures or overlooking startups of undervalued potential.🛠 Combatting Overconfidence BiasAwareness is the first step in combatting overconfidence bias. First, its imperative to distill and clarify the beliefs you're basing a decision on. Second, being honest about the evidence - or lack of evidence - that exists to support those beliefs can let you make an informed decision whether that's choosing to risk-accept something, or attempting to gather more evidence. Speaking to experts on a topic or customers can help illuminate blind spots. Within an investment team, asking people to explain how something works can expose knowledge gaps and reduces the overestimation of knowledge on that topic.💡 More InsightsIf you’re interested in exploring some of these other biases, feel free to check out the posts by Judith Vogel, Stefan Tirtey and Lorenz Hering & watch the CommerzVentures page for additional content to come.Picture credits: Association for Psychological Science

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Particularly for angel investors and venture capitalists, the concept of deal flow management is often the unsung hero behind successful portfolios. It's not just about finding opportunities; it's about efficiently managing and prioritizing them to maximize returns.What is Deal Flow Management?Deal flow management refers to the process of tracking and evaluating potential investment opportunities. It's akin to having a well-oiled machine, ensuring that no golden opportunity slips through the cracks due to oversight or mismanagement.Why is Deal Flow Management Crucial?📊 1. Enhanced Decision-Making: With a structured approach to deal flow, investors can make more informed decisions, backed by comprehensive data analysis. 🌐 2. Diversification of Portfolio: Efficient management helps in identifying a variety of opportunities, leading to a diversified and robust portfolio. ⏰ 3. Time Efficiency: By streamlining processes, investors can focus on due diligence and strategic planning, rather than getting bogged down by administrative tasks. Latest Trends in Deal Flow Management◾️ AI and Machine Learning: Leveraging AI tools for predictive analysis and trend spotting.◾️ Integration of Big Data: Utilizing extensive data sets for more comprehensive opportunity assessment.◾️ Collaborative Platforms: Encouraging information sharing and collective intelligence among investor communities.How can Invound help you?At Invound, embracing robust deal flow management means staying ahead of the curve in the investment landscape. By adopting advanced technologies and practices, we can ensure a steady stream of high-quality investment opportunities, leading to better decision-making and ultimately, greater success in our ventures. Mastering deal flow management is not just a requirement but a strategic advantage in the investment world. It's about being proactive, efficient, and data-driven in our approach to uncovering and capitalizing on the best investment opportunities.🔍 Stay tuned for more insights and strategies on thriving in the investment arena with Invound!#DealFlowManagement #InvestmentStrategy #VentureCapital #AngelInvesting #DataDrivenInvesting