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The 10X Capital Newsletter

The 10X Capital Newsletter

GP transitions in 2024, Lightspeed's plan for asset sale, changes in startup valuations, and much more.

David Weisburd
January 30, 2024

The 10X Capital Podcast is a podcast focused on limited partners where co-hosts David Weisburd and Erik Torenberg discuss venture capital through the lens of limited partners.

By popular demand, we’ve launched the 10X Capital Podcast newsletter, which offers this week’s venture capital and limited partner news in digestible news bites delivered straight to your email.

The world of LPs is notoriously secret and private, but on this show, influential limited partners, VCs, and investors speak candidly about venture capital in 2024 and how LPs are navigating the asset class today.

Today’s Agenda 📋

🗣 What Investors Are Saying
💰 Who’s Raising?
🗞 Venture Capital News
✍️ Top Posts of the Week
📈 Chart of the Week
🔧 Emerging Manager Tools
✅ Emerging Manager Do’s and Don’ts

Recent episodes 🎙

‎"The 10X Capital Podcast" with David Weisburd and Erik Torenberg | Startups, Venture Capital, and Limited Partners:

‎E36: Masterclass on Portfolio Construction with Anubhav Srivastava, CEO of Tactyc on Apple Podcasts

‎Show The 10X Capital Podcast: The Limited Partner with David Weisburd and Erik Torenberg | Startups, Venture Capital, and Limited, Ep E36: Masterclass on Portfolio Construction with Anubhav Srivastava, CEO of Tactyc - Jan 26, 2024

E37: Errik Anderson on Co-Founding 20 Biotech Startups Cumulatively Worth $10B+ on Apple Podcasts

‎Show The 10X Capital Podcast: The Limited Partner with David Weisburd and Erik Torenberg | Startups, Venture Capital, and Limited, Ep E37: Errik Anderson on Co-Founding 20 Biotech Startups Cumulatively Worth $10B+ - Jan 30, 2024

What investors are saying 🗣

🎙 Hunter Walk, Partner at Homebrew, on GP transitions in 2024

“In 2024, we’ll see even more GP transitions at multistage firms. Why? A combination of three trends:

A) Wealth-effect retirements from investors who cashed out and don’t want to sign up for another 10 yearrs of work by making new investments, sitting on boards, etc.

B) GPs at some firms who are realizing the growth in fund AUM might be good for their salary but changes the nature of the work they really want to do - these folks are leaving to start their own firms.

C) High profile hires that just haven’t delivered. As the tide goes out, we see a lot of highly comped but really underperforming GPs. In many cases the firms aren’t willing to deal with the issue so they’ll let it persist (or become passive aggressive internally), but expect more “transitions” where performance is the root case.”

Hunter Walk, Partner at Homebrew

Full article

🎙 Marieke Gehres, Investor at Earlybird Venture Capital

“We expect deal activity to rebound significantly in 2024. Additionally, in edtech, we are closely monitoring several companies that have been seeing positive developments. So, 2024 looks promising for the industry and for us as investors.”

Marieke Gehres, Investor at Earlybird Venture Capital

Full article

Who’s raising? 💰

Norwegian VC firm Sandwater announces successful final close of venture fund at approx. €125M

Oslo-based VC firm Sandwater has successfully closed its venture fund at €123,2 million (1.4 billion NOK), exceeding its target and becoming one of Europe's largest first-time venture funds in 2023.

Innovation Endeavors closes $630M for Fund V to invest at the intersection of science, tech

The firm intends to deploy capital to between 30 and 35 companies with this new fund.

Acadian Ventures raises $30M for VC fund focused on the future of work

Acadian Ventures raised $30 million for its second venture capital fund to focus on technologies for the future of work.

Laura (Bordewieck) Rippy on LinkedIn: Investing in the Sheconomy: The Power of Female-Founded Startups

Friends, Part Two of news in 2024.... We're launching a Women's Fund at Alumni Ventures. I'm leading it and couldn't be more fired up.

CBIV surpasses $135M CAD in final close to back women, children-focused healthtech startups

Two years after its launch, Toronto-based Cross-Border Impact Ventures has closed its first fund, securing over $90 million USD in total commitments.

Launchbay Capital announces first close of new VC secondary growth fund

The fund has received over 25% of its target in commitments.

Propeller has backed 14 ocean-focused startups

Propeller, a VC firm focused on oceans and climate, closed its inaugural fund at $117 million and has invested in 14 portfolio companies, the firm tells Axios exclusively.

Myriad Venture Partners

Myriad Venture Partners Launches Inaugural Fund, Secures $100M in Initial Capital Commitments to Support Transformational Founders in AI, B2B Software, and Clean Tech.

Venture capital news 🗞

Ten considerations for private markets in 2024

Decision makers looking to get a head start on the private markets should consider ten things.

Lightspeed taps private equity playbook as it eyes $1bn asset sale

Venture capital firm plans to roll holdings into continuation fund as sector seeks ways to return cash to investors

Jefferies dealmaker expects secondary market volume to hit record

Jefferies’ Todd Miller expects the secondaries market to have an even stronger year in 2024 with volume at a record level after ending last year on a solid note.

The state of venture capital: A look back at Q4 2023

Here’s what the final numbers from 2023 have to say about the state of venture capital as we head into 2024.

Corporate-backed startups are more likely to survive - Global Venturing

Having a corporate investor halves the chance of a startup going bust and increases valuation relative to EBITDA if there is an exit.

Chart of the week 📈

Emerging manager tools 🔧

AngelList for fund administration
- Get in touch by emailing the team at [email protected].
Tactyc for forecasting and planning
- Please reach out to [email protected] for a personalized demo.
Chris Harvey for fund counsel
- Reach out to Chris at [email protected].
Sydney Fulkerson for investor pitch deck consulting
- Reach out to Sydney at [email protected]

Emerging manager do’s and don’ts ✅

Replacing "Non-consensus and Right" with "Differentiated and Good" for Emerging VC Managers

I meet so many emerging managers who reference the "be non-consensus and right" post without focusing on the most important piece - being right.

Best Practices for Requesting Warm Intros From Your Investors

Your investors hold extensive networks that can be invaluable for warm introductions to potential customers, advisors, and candidates. Making this process seamless for your investor is key. Here's a straightforward guide to assist you.

Why Emerging VCs Need a Brand

A strong brand helps in various ways: it provides social proof, establishes credibility as an expert, and keeps a VC's name at the forefront for founders and fellow investors.