Networking is overrated, VC distribution of outcomes, secondaries boom, and more...
The Flowlie Times #36
Welcome to The Flowlie Times,
This edition is brought to you by Care.com
Thrilled to announce the launch of our new podcast, "The Fundraising Debrief", where we dive into the real stories behind successful founders and their recent VC financing rounds!
Our host, Vlad Cazacu, kicked things off by sitting down with Kaben Clauson, co-Founder of Base, who just raised a pre-seed round right here in Miami. Kaben shares a wealth of knowledge as a repeat founder and YC alum who has experienced the wild ups and downs of fundraising and startup life more generally.
Articles we enjoyed:
1️⃣ Networking is overrated and probably not worth doing … for most people. Some quotes:
A “Who-You-Know” generally has a very large network of weak ties.
A “What-You-Know” is what it sounds like– whose distinguishing feature is their skills and knowledge. Think engineers, scientists, or that gal who always wins at trivia night.
In today’s world, if you know something really compelling, you will be sought out … and sought out directly. In the past, the people with connections were gatekeepers who controlled access to the elite circle and got paid handsomely for it. Today, people that invent interesting things (the true What-You-Know people) will reap many more rewards than the brokers who make introductions.
2️⃣ Venture Capital — We’re Still Not Normal. Some quotes:
The distribution of outcomes in U.S. venture is still far from “normal”. It remains highly right-skewed in that a relatively small number of winners drive returns.
The distribution of outcomes that we saw last year, despite feeling like a “reset”, was only a reset when compared with the exceptional pandemic years. The statistics last year were very similar to what saw over the prior decade.
3️⃣ Sequoia and Brookfield prepare for VC a secondaries boom
Brookfield Asset Management and Sequoia Heritage have teamed up to launch Pinegrove Capital Partners, a joint effort aimed at capitalizing on the declining valuations of venture capital-backed companies.
Each entity will invest $250 million in Pinegrove, which is seeking a total of $2 billion from institutional investors for its debut fund.
Pinegrove, based in Los Angeles, is led by CEO Brian Laibow and aims to provide secondary and special situations capital for venture capital and growth equity firms.
The venture secondaries market has been slower than expected this year, with more sellers holding off due to lower bid prices, creating potential opportunities for Pinegrove.
Venture announcements that caught our eye:
1️⃣ Peppermint has launched a virtual Clubhouse community targeting adults aged 55+, providing a platform for pursuing hobbies, making friends, and fostering connections.
As older adults are increasingly engaged in leisure activities, Peppermint aims to address their desire for purpose and community through shared interests, with a focus on collaboration and engagement.
The startup, backed by $8 million in seed funding, offers a variety of activities such as clubs, workshops, live events, and collaborations, catering to the unique needs of the 55+ demographic.
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2️⃣ Miami-based startup Lula, aiming to be the "Stripe for insurance," has secured $35.5 million in a Series B funding round due to its surging customer base.
Originally focused on an insurance API, Lula now provides a comprehensive insurance offering for businesses, experiencing rapid growth with nearly 4,000 customers, and aims to reach over $100 million in annual recurring revenue.
The company's cost-efficient approach and expansion plans into logistics and embedded insurance have attracted investors' confidence.
3️⃣ Former Google marketing executive Zach Epstein developed Haus, an affordable "growth intelligence" platform to help brands measure the impact of their media spending through regional experiments and demand forecasts, addressing challenges in differentiating marketing signals from noise. The platform's success has led to a $17 million funding round led by Insight Partners, with plans to expand its team and enhance analytics tools to meet growing demand.
Cheers,
Mike from Flowlie