#Capital venture funding

[phoenixyfriend]

Ko-Fi prompt from @dirigibird:

I've been looking at investment options but I don't want to be messing around too much with the stock market, and a co-worker suggested exchange traded funds. Would love to know your opinions!

LEGALLY NECESSARY DISCLAIMER: I am not a licensed financial advisor, and it is illegal for me to advise anyone on investment in securities like stocks. My commentary here is merely opinion, not financial advice, and I urge you to not make any decisions with regards to securities investments based on my opinions, or without consulting a licensed advisor. I am also going to be talking this all over from an American POV, which means some of these things may not apply elsewhere.

So instead of letting you know what to pick or how to organize your securities, I'm going to go through the definitions of what various investment funds are, how they compare functionally, and maybe rant about how I disagree with the stock market on a fundamental ethical level if I have word count left over.

If you want more information, and are okay with jargon, I'd suggest hitting up investopedia. That is where I will be double-checking most of my information for this one.

I also encourage folks who know more about the stock market specifically to jump in! I like to think I'm good at research and explaining things, but I'm still liable to make mistakes.

Mutual Funds: A mutual fund is a pool of money and resources from multiple individuals (often vast numbers of people, actually) being put together and managed as a group by investment specialists. The primary appeal of these is that the money is professionally managed, but not personally so; it gives smaller investors access to professional money managers that they would not have access to on their own, at cheaper rates than if they tried to hire one for just their own assets. The secondary appeal is that, due to the sheer number of people, and thus capital, that is being invested at once, the money can be invested in a wide variety of industries, and is generally more stable than investing in just one company or industry. Low risk, low reward, but overall at least mostly reliable. Retirement plans are often invested in mutual funds by employer choice, through companies like Fidelity or John Hancock.

Hedge Funds: A hedge fund is a high risk, high reward mutual fund. Investors are generally wealthy, and have the room and safety to lose large amounts of money on an investment that has no promise of success, especially since money cannot be withdrawn at will, but must remain in the fund for a period of time following investment. It gets its name from "hedging your bets," as part of the strategy is to invest in the opposition of the fund's focus in order to ensure that there is a backup plan to salvage at least some money if the main plan backfires. Other strategies are also on the riskier side, often planning to take advantage of ongoing events like buyouts, mergers, incumbent bankruptcy, and shorting stocks (that's the one that caused the gamestop incident).

Private Equity: Private equity is... a nightmare that got its own incredibly good Hasan Minhaj episode of Patriot Act, so if you've got 20 minutes, an interest in comedically-delivered, easily-digestible, Real Information, and an internet connection, take a watch of that one. (If it's not available on YouTube in your country, it's originally from Netflix, or you can probably access it by VPN.) Private equity companies are effectively hedge funds that purchase entire companies, rebuild them in one way or another, and then sell them at (hopefully) a profit. Very often, the companies purchased by private equity are very negatively impacted, especially if the private equity group is a Vulture Fund. Sometimes, it's by taking it apart to sell off; sometimes it's by just bleeding it for cash until there's nothing left. Sometimes, it's taking over a hospital and overcharging the patients while also abusing the staff! (Glaucomflecken has a lot of videos on the topic of private equity in the medical industry, check him out.)

Venture Capital: In contrast to private equity, which purchases more mature companies, venture capital is focused on startups, or small businesses that have growth potential. These are the kinds of hedge funds that are like a whole group that you'd see some random tv character calling an Angel Investor (they're not actually the same thing, but they overlap by a lot). I'd hesitantly call these less ethically dubious than private equity, but I'm still suspicious.

And finally, to answer your question on what ETFs are and how they fit into the above.

Exchange Traded Funds: ETFs are... sort of like a mutual fund. Sort of. You are, to some extent, pooling your money... ish.

An ETF is like a stock that is made out of partial stocks. So instead of paying $100 for stock A, and not getting stocks B/C/D that all cost the same, you buy $100 of the ETF, which is $25 each of stocks A/B/C/D. You are getting a quarter of a unit of stock, which isn't normally an option, but because you are purchasing through an ETF that officially already bought those Whole stocks, you can now purchase the partial stocks through them.

They buy the whole stocks, then they resell you mixes of those stocks. They still officially own the whole stocks themselves, but you now own parts of the stocks. Basically, you own "stock" in a company that owns stock in other companies, and in that process you own partial stocks in those other companies.

I'm going to re-explain this using fruit.

Imagine you can buy apples, oranges, melons, grapes, etc. You can also buy fruit cups. You can only buy the individual fruits in big batches or you can pool your money with a few other people, hand it to a chef. The chef will decide which fruits look like they'll taste the best by lunch time, buy a bunch of those fruit pallets with your combined money, and plan out the best possible fruit salad for you to share with a bunch of people once lunch rolls around.

You could also buy a fruit cup. You don't have a lot of control over what's already in the fruit cup, but there are a few different mixes available--that one has strawberries, but that one over there uses kiwi, and the other one that way has pineapple--and you can pick which mix you want. It's a pretty small fruit cup, and it's predesigned, but you can choose the one you want without having to pool money with everyone else. You just first have to let someone else design the fruit cups you choose from, and you don't know which ones are probably going to survive the best to lunch time unless you ask a chef (which defeats the purpose of buying a fruit cup instead of pooling your money, and asking the chef costs money).

That's the ETF. The ETF is the fruit cup.

The upside is that you can now just track the prices of your fruit cup, instead of tracking the prices of four different fruits, and so if the price of one fruit drops, you can just... let the other three buoy it.

Of course, in the real world, there are more than just four stocks involved in an ETF. This part of the Investopedia article lists a few examples, and they're usually themed and involve anywhere from 30 (DOW Jones) to thousands (Russell) of shares by stock type, or by commodity/industry. So with the ETF, you can invest in an entire industry, like technology, and just keep track of that single "stock" in the industry game.

They do cost less in brokerage/management fees than regular mutual funds, and they have a slightly lower liquidity (slower to cash out). There also exist actively managed ETFs, which are basically mutual funds for ETFs. You are paying the chef to buy you premade fruit cups.

(Prompt me on ko-fi!)

[nando161mando]

So what you're saying is, you don't have a business.

You have a bunch of venture funded criminals looking to eventually sucker teacher pension funds and other investors with an IPO and laugh all the way to the bank.

[ludocrow]

Well not that I was using it a lot anymore but with Tumblr apparently now opting-in by default everyone's blogs to be shared with AI bullcrap, I think this is now officially my very last personal post. (btw you should totally go ASAP in your blog settings to deactivate third party sharing, among other stuff; not that I expect it to do much with the lack of caring for boundaries/intelectual property/etc AI folks have but it's the one thing we were 'granted' ugh) You can find my at these places(though Cohost is the more active of the two tbh in term of actually getting art): https://cohost.org/Ludocrow?page=0 https://bsky.app/profile/fringecrow.bsky.social https://www.furaffinity.net/user/fringecrow

I might outright delete this blog in coming weeks tbh.

[zelthq]

UK-based Zelt raises $3.5M seed funding to streamline HR, payroll operations

[iamidentical]

autostraddle... yikes

[max1010]

Fireside Ventures Team: Diverse Experts Driving Purposeful B2C Brands

Meet the dynamic team behind Fireside Ventures, a leading venture capital firm dedicated to nurturing purpose-driven B2C brands in India. With a mission to enhance consumer experiences and create meaningful societal impact, Fireside Ventures is at the forefront of supporting innovative ventures.

 About Fireside Ventures 

Fireside Ventures is a visionary venture capital firm that is reshaping the consumer landscape in India. By identifying and supporting purpose-driven B2C brands, Fireside Ventures is not only investing in businesses but also in the betterment of society.

 Nurturing Purpose-Driven Brands 

Fireside Ventures has carved a niche as d2c investors in India, recognizing the potential of brands that are not only commercially viable but also aligned with a larger societal purpose. By investing in these brands, Fireside Ventures is facilitating a positive shift in consumer experiences.

 Expertise in Consumer-Focused Ventures 

With a deep understanding of the consumer market, Fireside Ventures is one of the premier consumer venture capital funds in India. The team's expertise lies in identifying brands that resonate with consumers and have the potential to make a significant impact on the market.

 Rooted in Bangalore, Impacting India 

Based in Bangalore, the heart of India's startup ecosystem, Fireside Ventures is at the epicenter of innovation. The venture capitalist team at Fireside Ventures is dedicated to identifying and nurturing ventures across India, contributing to the growth of the startup ecosystem.

 Investing in Visionaries 

Fireside Ventures is more than just a venture capital firm; it's a partner to visionaries and innovators. The team understands the unique challenges faced by entrepreneurs and provides not just financial support, but also mentorship and guidance.

 Driving Societal Impact through Ventures 

Fireside Ventures believes in the power of businesses to drive positive change in society. By supporting purpose-driven ventures, Fireside Ventures is not only creating successful brands but also contributing to a more conscious and impactful consumer culture.

 Collaborative Ventures, Collective Impact 

Through strategic collaborations and investments, Fireside Ventures is fostering a community of ventures that collectively contribute to a better consumer experience and a more impactful society. The team at Fireside Ventures understands that true change comes through collective effort. Fireside Ventures and its diverse team of experts are at the forefront of the venture capital landscape in India. By investing in purpose-driven B2C brands, Fireside Ventures is not only shaping the consumer market but also making a tangible impact on society. With their deep expertise and collaborative approach, Fireside Ventures is set to lead the way in driving meaningful change through ventures in India.

[formidium]

Harness the potential of Razor State to streamline and automate your repetitive tasks, enabling you to allocate your valuable time and energy towards the essential aspects of your business. We are specialized in providing customized outsourced solutions for financial accounting and operational support to cater to the unique needs of fund managers and the pre-IPO corporate community. To know more about our offering email us at: razorstate@formidium.com or visit us at: https://razorstate.com/

[askagamedev]

how hard is it to get Venture capital for video game studio ? DId you had friend who try to started video games studio and was hard for them to gain Venture capital?

Most venture capitalists don't fund game studios because VCs usually avoid fields where the market is already mature (that is, there is already lots of entrenched competition before you even begin), at least not with a traditional idea. You'd be hard pressed to get venture capitalists to finance a new Coke competitor unless the idea was super disruptive somehow because it costs a lot to try to compete and there's a lot of established giants in the market already. VCs are usually looking to finance startups with disruptive ideas that can tap into a new market that has very little competition because that’s where the largest potential financial wins live.

This is why we saw a lot of VC money get funneled into crypto stuff (including NFT games). Games by themselves are well-known quantities, but crypto is potentially disruptive technology so it is worth it to some VCs to roll those dice at the ground floor in hopes of a much bigger payday. A VC is much more willing to fund a wifi-enabled smart toilet app than a video game, if only because there are a lot fewer companies building wifi-enabled smart toilets than video games. Wifi-enabled smart toilets might be risky, but they have a much larger potential upside than another indie game released to Steam if they take off and the one they backed becomes the industry leader. 

VCs aren’t monolithic. Some VCs leaned into crypto while others thought it was a scam, but the general rule is that VCs usually stay away from traditional ideas, especially in a crowded market. A smart toilet might not be a good idea, but it probably has more potential when adjusted for risk, cost, and potential payout than another traditional indie game. If you want VC money, you need to offer them something that’s got a payout worth the risk. 

A better idea would be to find a game publisher. They’re much better equipped to evaluate a game’s feasibility and fund it than a VC. There are publishers at all levels and budgets, plus they often have the infrastructure in place to help a game dev team get things they need, like dev kits and assistance with marketing and cert. You wouldn’t go to a cardiologist to ask about erectile dysfunction, nor would you ask your tax attorney to defend you in a murder trial. If you want to get your game funded, your best bet is to find the right group with the right expertise and interest.

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Got a burning question you want answered?

Short questions: Ask a Game Dev on Twitter

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Frequent Questions: The FAQ

[market-daily]

2023: Black Entrepreneurs Face a Heavy Drop in VC Funds

Black entrepreneurs – Being an entrepreneur has never been easy, but for people of color it could be particularly challenging.

Black entrepreneurs have had trouble obtaining funding throughout the years.

Instead, a lot of people rely on venture capital investment, which is only available to diverse entrepreneurs.

While seeking VC funding over the years, Black entrepreneurs and Black-led enterprises have encountered prejudice, despite the fact that many of them were successful.

Annually, Black entrepreneurs generally receive less than 2% of total VC financing.

However, the percentage of Black women-owned enterprises is barely 1%. Source: https://marketdaily.com/black-entrepreneurs-hit-heavy-vc-funds-drop-2023/

[truthventures]

Why do businesses fail even after good seed funding?

Most businesses fail even after receiving excellent seed funding because the management entirely misunderstands the demands and misallocates cash, losing the capital venture partner firm's trust in the process. Therefore, even if they must accept less startup funding, businesses must collaborate with venture capital firms that bring leadership and tested expertise. Truth Ventures is regarded as one of the best venture capital firms as they don't allow their partners to overspend or pay excessive attention to the current situation and only allocate cash by keeping long-term goals in mind.

[klubwork]

The Importance of Branding for Startups: Creating a Memorable Identity

In today's bustling marketplace, where startups are born at every corner with innovative ideas and technologies, standing out becomes not just an advantage but a necessity. Branding is creating a unique identity and a memorable image for a company. For startups, this is crucial as it sets the stage for their story, values, and promises to the customer.

Why is Branding Important for Startups?

Branding goes beyond a logo or a catchy tagline; it’s about creating a cohesive identity that resonates with your target audience. It’s the emotional and psychological relationship a startup establishes with its customers. A strong brand identity can:

Differentiate you from competitors.

Build trust with customers, investors, and partners.

Establish recognition in the market.

Support your marketing and advertising efforts.

Create a loyal customer base and community.

Creating a Memorable Identity

The first step in branding for a startup is to understand who you are. What problem are you solving? Who are you solving it for? What are your core values? The answers to these questions form the foundation of your brand.

Next, translate this understanding into visual and verbal communication. This includes:

Logo: The face of your company should be simple, memorable, and reflective of your brand personality.

Color Palette: Colors evoke emotions and convey messages. Choose colours that align with the feelings you want to associate with your brand.

Typography: The style of your written word should complement your brand’s tone and values.

Voice and Tone: How you communicate with your audience should be consistent across all platforms, whether professional, friendly, or quirky.

Consistency is Key

Consistency in branding reinforces your identity and helps customers remember you. Your brand identity should be consistent across every touchpoint with customers—website, packaging, social media, and customer service.

The Role of Storytelling

People love stories; they connect with them. A startup’s brand story should be authentic and compelling, highlighting the journey, the struggles, the successes, and the vision. This narrative engages customers and makes your brand relatable and human.

Branding and Funding

A well-crafted brand can be a powerful tool in securing funding. Investors look for startups with a clear brand strategy, which indicates market awareness and growth potential. A strong brand can also attract partnerships and collaborations, which are essential for scaling up.

As your startup grows, securing funding becomes a pivotal challenge. Klub can be a game-changer in this aspect. Focusing on funding for start up businesses, Klub provides the necessary startup capital for small business ventures, especially in the e commerce venture capital space.

They understand the unique challenges and opportunities within the ecommerce startup funding landscape and offer tailored solutions to help startups scale their operations and brand presence effectively. In conclusion, branding is not just about getting your target market to choose you over the competition; it’s about getting your prospects to see you as the only one that provides a solution to their problem.

[trendtracker360]

Amazon and Meta Boost Scale AI with $1B Funding

Scale AI Inc. has achieved a significant milestone with the completion of a $1 billion financing transaction, positioning its new valuation at an impressive $13.8 billion. This financing, one of the most substantial of the year, highlights Scale AI’s growing influence in the technology and artificial intelligence sectors. The round was led by existing investor Accel and saw participation from prior backers, including NVIDIA Corp, Tiger Global Management, and Index Ventures. Additionally, new investors such as Amazon.com Inc. and Meta Platforms Inc. have joined, further bolstering the company’s trajectory in advancing artificial intelligence applications across various sectors, including government and military operations.

Key Takeaways

Scale AI completes a $1 billion funding round, elevating its valuation to $13.8 billion.

The financing marks one of the year’s largest deals, underscoring Scale AI’s prominence in the AI sector.

Existing investor Accel led the round, with participation from noted investors like NVIDIA Corp and Tiger Global Management.

New strategic investors include Amazon.com Inc. and Meta Platforms Inc., highlighting confidence in Scale AI’s prospects and growth.

The investment strengthens Scale AI’s capabilities in driving AI applications across diverse sectors, including government and military.

This substantial funding reflects the continued interest and investment momentum in the artificial intelligence industry.

To Read More >>> Click Here Reference Links:

[fiercemillennial]

Podcasting for Profits: How Venture Capitalists Are Fishing for Founders

Venture capitalists are using podcasts to fish for founders. Learn how to navigate this new trend and protect your startup. 🎣💼 #VentureCapitalists #Founders #VentureCapitalistsPodcast #Podcasts #FierceMillennial #FierceEmpowerment #Hustle #Grind

Silicon Valley’s Latest Hustle? Luring You In with Promises and a Microphone Venture capitalists (VCs) are always looking for the next big thing. They’re constantly searching for innovative companies and promising founders to invest in. But lately, they’ve added a new tool to their arsenal: podcasts. That’s right. The same medium that brought us true crime stories and celebrity interviews is…

[startup-investors]

Venture Debt Company - Valuable Partners

Valuable Partners provides venture debt solutions in India. We fund and guide promising startups and entrepreneurs, fostering growth opportunities and nurturing innovation across various sectors.