How to Capture Interest and Capital from VC Firms
Just as a VC firm is evaluating the startup, founders should also be assessing the VC firm when raising capital.
These were the articles that resonated most with the BIP Ventures ecosystem this year. The data showed your intention to be a more informed participant in the Innovation Economy. The articles below offer educational content about how Venture Capital returns are calculated, how data is used by VC firms to support optimal outcomes, and where the greatest opportunities exist for startup founders and the investors who seek to support them.
It’s been a year of sweeping, at times unexpected changes. What we see in these top articles is a story about how you navigated 2023 – with intelligence, curiosity, and reliance on trusted industry authorities to be your guide and partner as you build for the future.
The State of Startups in the SoutheastSM 2023 report paints a picture of a region supporting a growing number of startups, many of which have demonstrated traction in stable sectors. Gone are the days of 'growth at any cost' and long lists of Mega deals. Instead, the environment in 2023 was marked by a heightened sense of responsibility and careful recalibration of venture capital funding to prioritize more mature, proven startups solving broad challenges in stable (not cyclical), high-potential sectors. Across almost every state in the Southeast, the size of Seed investments rose. While fewer deals were made, the ones completed were generally larger. Discover why we have reasons for measured optimism.
Even as the VC investment landscape evolves, the mathematical fundamentals don't. Close to 1,800 readers consulted this article to clarify the three pivotal metrics that the private capital industry uses to report on investment fund performance. Get straightforward definitions, uses, and calculation methods of Total Value to Paid-In (TVPI), Distributed to Paid-In (DPI), and Internal Rate of Return (IRR). You'll understand how to read the metrics to make well-informed investment decisions, including choosing a high-integrity VC firm as your partner. Become a more informed participant in the Innovation Economy.
AI may have stolen the spotlight in 2023, but we can't discount the steady transformative impact of data science. This explainer from our CTO, John Harris, gives a clear overview of this centuries-old interdisciplinary field that blends statistics, data analysis, AI, and Machine Learning. The use of data science among most VC firms is somewhat nascent. Nonetheless, it has become critical for deal sourcing, due diligence, portfolio management, business operations, and exit strategies. John shares ways that BIP Ventures has long leveraged data science for efficiency, visibility, and risk management, particularly in identifying promising startups and managing investments. Hundreds of readers used this article to understand how data science optimizes the operational and strategic components of VC firms.
This collection is the outcome of collaborative input and knowledge sharing from across BIP Ventures. Special thanks to Mark Buffington (Managing Partner), Mark Flickinger (COO and General Partner), John Harris (CTO), Christy Johnson (CPO and General Partner), and Tami McQueen (CMO). Thousands of other entrepreneurs and investors spent time reading and learning from these articles. If you’re not already getting BIP Ventures content delivered to you, it's a great time to join your peers.