The Flowlie Times #38
VC Legislative Regulations, anonymity and wealth, category creation, Caden, Birdstop, and more
Welcome to The Flowlie Times,
This edition is brought to you by Premoney.
New episode of The VC Architects podcast is available now. In this episode, we are talking supply chain and VC funds with JP Keating of ProChain Ventures.
Articles we enjoyed:
1️⃣ Regulatory Leviathans - article by Chris Harvey on upcoming laws affecting VC. It covers topics including regulatory priorities, enforcement actions, effects on investor advisors, and more.
Key Takeaways: The SEC is about to pass new regulations for private fund advisers, including venture capital (VC) firms. If adopted, these rules would be the first meaningful set of VC regulations since the Dodd-Frank Act came into effect after the Great Financial Crisis of 2008. These rules cover a wide range of issues under the Advisers Act and apply to both registered and unregistered investment advisers. A final vote is expected this week. Dear readers, if these rules pass as proposed—which seems likely now—brace yourselves.
I think there’s an “ideal” net worth for everyone - when money not only stops bringing pleasure but becomes a social liability. And that number is probably lower than most people think.
The article discusses the "social debt" associated with wealth, highlighting how lottery winners and even NBA athletes who come into sudden money often face the burden of financial expectations from friends, family, and acquaintances. This phenomenon isn't limited to the wealthy, as normal people also experience it when purchasing nicer things and competing socially. The piece emphasizes the importance of minimizing social debt to maximize the enjoyment and benefits of money.
3️⃣ Creating a Category is Overrated
CommandBar, an interface innovation focused on enhancing user interaction with software, initially aimed to revolutionize the digital adoption market. Despite their success, they identified a greater opportunity in established categories. By repositioning their product as "user assistance," they replaced intrusive tooltips with a more intuitive and AI-powered approach, resulting in rapid customer adoption. This shift highlights the value of adapting to existing market needs rather than solely pursuing new niches, demonstrating that startups' paths are not always linear.
Venture announcements that caught our eye:
1️⃣ Privacy-centered platform Caden secures $15 million in Series A funding led by Nava Ventures, supported by existing investors including Streamlined Ventures. Caden's focus on user-controlled data and rewarding sharing has led to substantial growth, with plans to expand their team, develop Caden AI, and offer more earning opportunities through new connections.
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2️⃣ California-based Birdstop has secured $2.3 million in funding led by Lerer Hippeau to expand its BVLOS drone network, enhance AI capabilities, and protect critical infrastructure. Birdstop's patented technology enables safe drone operations, with FAA approvals for complex missions. CEO Keith Miao's vision focuses on simplifying drone technology for real-time asset access, marking a leap toward safer infrastructure protection.
3️⃣ B2B marketplace Ghost secures $30 million in a Series B round led by Cathay Innovation, aiding discreet surplus inventory transactions. The platform's data-driven approach saw impressive growth in team, membership, and gross merchandise value. Expansion into the US, Europe, and Asia, along with enhancing automation and personalization, will follow using the funds.
Cheers,
Mike from Flowlie