The Flowlie Times #7
Greeting from the VC world! Today's edition talks about SAFEs, digital creators, and more. Enjoy!
Hi Friends,
This is Mike from Flowlie again, coming in your inbox with 2 minutes of jam-packed, no-noise content that's guaranteed to make you smarter. So let's go to it.
This is our short bi-weekly newsletter curated by the Flowlie team. It includes the top recent articles about VC & PE, ranging from operations, tech and tax advice to trends and notable guides as well as news on recent capital raises.
We hope you enjoy and find some value! If you do, make sure to share it with a friend.
Today's reads
First, let’s dive into a deep article titled “When is a SAFE Unsafe?” by Jason Yeh. It explains why both founders and investors “are surprised to see how much dilution has actually occurred… when they wait for an equity raise to update ownership levels”. Read more about “Pre vs. Post-money cap math” in this piece.
This report explains the ecosystem of creators using numbers. Click to see everything from TAM to annual income to the greatest impact on monetization.
Finally, a great article by PitchBook on how Hamilton Lane makes it easier for investors to access private markets. They will use tokenization to offer a lower entry point for investors: “access to the vehicle with a minimum ticket size of $10,000”.
News from Venture
First, esports! Team Liquid raises $35 million at $415 million valuation. The money will go towards skins and in-game cosmetics “advancing its esports efforts and international business operations”.
Now: crypto. Haun Ventures (we talked about them in The Flowlie Times #4) places its first bet ($50M) on the NFT Platform Zora. "Haun Ventures is dedicated to backing teams building a better internet," Rosenblum wrote in a statement. Big things are ahead.
Finally, an article by TechCrunch “Crypto exchange KuCoin raises funds at $10 billion valuation”. KuCoin is completing with “Binance, Coinbase, FTX and Crypto.com among others”. Let’s see which platform will win.
Flowlie feature highlight
Today’s highlight is FlowLink. For startups, FlowLink is a simple way to share their deal with potential investors. As you update your deck or round information, your FlowLink shows the new information automatically: no more manually resending your deck!
Coming soon, founders will be able to choose a level of privacy for their FlowLink depending on their preferences (more announcements to come soon). Founders can reset the FlowLink if it ever gets in the wrong hands.
As always, feel free to email us with any questions. We are glad to chat!
Thank you,
Mike from Flowlie