TDK Ventures: Why Startups Should Be Transparent with Investors

𝗖𝗼𝗺𝗽𝗮𝗻𝘆 𝗰𝗿𝗲𝗮𝘁𝗶𝗼𝗻 𝗳𝘂𝗻𝗱𝘀 𝗿𝗲𝘀𝗵𝗮𝗽𝗲 𝗵𝗼𝘄 𝘃𝗲𝗻𝘁𝘂𝗿𝗲𝘀 𝗮𝗿𝗲 𝗯𝘂𝗶𝗹𝘁 Over the past decade, 𝗰𝗼𝗺𝗽𝗮𝗻𝘆 𝗰𝗿𝗲𝗮𝘁𝗶𝗼𝗻 𝗳𝘂𝗻𝗱𝘀 have redefined how successful ventures emerge - especially in North America. Studios like Atomic, High Alpha, and Alloy Partners have shown that combining startup speed with corporate assets and capital isn’t just a good idea, it’s a 𝗽𝗿𝗼𝘃𝗲𝗻 𝗽𝗮𝘁𝗵 𝘁𝗼 𝘀𝗰𝗮𝗹𝗮𝗯𝗹𝗲 𝘀𝘂𝗰𝗰𝗲𝘀𝘀. The results speak for themselves:  • 71% more likely to reach Series A  • 2.2x faster to Series A  • 2x more successful exits Now, we’re bringing this model to Central Europe with the launch of the 𝘄𝗵𝗮𝘁𝗮𝘃𝗲𝗻𝘁𝘂𝗿𝗲 𝗳𝘂𝗻𝗱 (www.whataventure.com/fund). We go beyond financial return and offer our investors:  • Access to untapped markets and new verticals  • Diversification across multiple ventures in one vertical  • Early access to future M&A startups  • Access to top entrepreneurial talent Check out the full article here: https://lnkd.in/dcmi_y6A

Venture capital (VC) is more than just money changing hands, it’s a structured process designed to balance risk, reward, and control between investors and founders. At the core lies the term sheet, outlining key aspects before contracts are finalised: 🔹 Valuation & Ownership – sets company worth and investor equity 🔹 Founder Dilution – issuing new shares reduces existing stakes 🔹 Board Representation – gives investors influence over major decisions 🔹 Preferred Shares & Liquidation Preference – protect investor returns 🔹 Anti-Dilution Provisions – safeguard equity in future funding rounds 👉 Example: A startup valued at €5M receives €1M for 20% equity. The VC secures preferred shares, a board seat, and liquidation preference, accelerating growth but also shifting ownership and influence. Every deal is a trade-off. Founders must weigh growth opportunities against control and alignment with investors. 📖 Read more in our latest article https://lnkd.in/ddJTiXVF

Invested in 7 startups. Learned 7 harsh truths about angel investing. After backing Culturex, Rare Planet, Skyair, Shoffer, Mycaptain, and ZFWw, here's what nobody tells you about early-stage investing: Truth #1: The best pitches rarely make the best companies. Founders who spend 6 months perfecting their deck often spend 6 minutes understanding their customers. Truth #2: Market size doesn't matter if you can't capture 0.01% of it. "It's a $100B market" usually means "We have no idea who will pay us." Truth #3: Your worst performing investment will teach you more than your best. My biggest lesson? Pattern recognition is overrated. Anomalies create unicorns. Truth #4: Due diligence is 20% numbers, 80% gut check on the founder. Can they pivot without breaking? Do they listen more than they talk? Truth #5: The market timing you can't predict matters more than the market timing you can. COVID made some startups and killed others. Same opportunity, different timing. The meta-lesson? Angel investing is less about picking winners and more about not picking losers. Fellow angels - what's your contrarian truth about early-stage investing?

Series C and later rounds, the critical layer of financing that allows young companies to scale into durable public firms or strategic assets, have slowed to a trickle. This absence of which is forcing founders into increasingly difficult choices, with the risks of permanently being a 'startup'. The difficulty of growth rounds is that they straddle the most fragile part of the venture cycle: too late for narrative-driven optimism, too early for public-market validation. Deshna Jain digs into why Series C+ rounds have became difficult to underwrite and what comes next... Link to entire article - https://lnkd.in/deqreSsN

🚨: New Article Alert! : https://lnkd.in/dSKjdVjQ I recently saw a post that mentioned "THERE ARE MORE PRIVATE EQUITY FUNDS THAN MCDONALD'S IN THE UNITED STATES" "There are 19000 PE firms and 14000 McDonald's" But here’s the irony: In India, India has financial abundance but its the allocation that’s broken. The “missing middle” in growth funding is starving scale-stage startups. Early-stage rounds remain vibrant. IPOs are aspirational. But at Series C and beyond, where companies are supposed to prove scalability and prepare for durable outcomes, the baton is being dropped. 📉 In H1 2025, Indian tech startups raised $4.8B, down ~25% YoY. 📉 Late-stage rounds made up just $2.7B, falling 27% YoY. 📉 By contrast, early-stage funding has held steady, even buoyant in some verticals. This isn’t a shortage of entrepreneurship or opportunity. It’s the absence of reliable late-stage capital pools, compounded by mismatch in IPO market expectations , thin M&A pipelines, and shaken investor confidence.Unless we rebuild that middle layer, India risks creating an ecosystem that starts strong but struggles to finish the race. A prominent Banker and Friend Sameer Karulkar while writing this article gave some outstanding inputs backing his years of experience: "In India, M&A activity often falters not for lack of intent but due to a persistent mismatch acquirers rarely align with the high exit expectations set by founders and investors. Many startups, even at the C-stage, struggle to demonstrate sustainable business models despite having raised significant capital, making them less attractive for acquisition. Moreover, Indian tech acquirers remain limited, with large players focused globally and mid-market ones constrained by capital. As a result, M&As tend to be consolidation-driven rather than strategic growth moves. My advice to founders is simple: don’t build something just to sell build something worth buying." 👉 How do you see India solving this? Subscribe: 📖 We dive deeper into the numbers, causes, and fixes in the latest article: https://lnkd.in/dSKjdVjQ #Growthfunding #Growthstartups #Fundraising #Mergers #Acquisitions #IPO #MissingMiddle

🚀 In a new Forbes feature, NVCA President & CEO Bobby Franklin explains why venture capital is central to America’s innovation economy—driving job creation, fueling economic growth, and powering the breakthroughs that shape our future. Bobby also underscores a critical truth: policy and regulatory clarity can make or break innovation. From tax policy and capital formation to support for emerging managers, the right policies will determine whether the next generation of startups can thrive. https://lnkd.in/eyjbDPkK

🔥 FIRESIDE: WHERE THE MONEY GOES – VC INVESTMENTS IN 2025 Which sectors are attracting the most attention from investors, and what signals are driving decisions in a rapidly shifting economy? 🔸Mili Ibrulj, Partner, Fil Rouge Capital 🔸Bozidar Pavlovic, Partner, AYMO Ventures Moderator: Timothei Jukić, Regional Director, Native Teams Venture Capital is evolving fast — and 2025 is shaping up to be a defining year. Where is the smart money going? In this fireside conversation, two leading investors, Mili Ibrulj and Božidar Pavlović, will share their perspectives on the changing VC landscape — from funding trends and startup valuations to sustainability, AI, and the next wave of European innovation. 💬 Expect honest insights, real stories, and practical advice from those who see the deal flow up close. 🚀 For founders, innovators, and anyone looking to understand what’s really driving investment strategies in 2025. #VentureCapital #Investment #Startups #Innovation #GameChanger #Finance

🚩 5 𝐑𝐞𝐝 𝐅𝐥𝐚𝐠𝐬 𝐓𝐡𝐚𝐭 𝐃𝐫𝐢𝐯𝐞 𝐈𝐧𝐯𝐞𝐬𝐭𝐨𝐫𝐬 𝐀𝐰𝐚𝐲 🚩 Securing investment isn’t just about a great idea—it’s about building trust and credibility. Here are the common red flags that make investors hesitate: 1️⃣ Weak or Misaligned Founding Team 2️⃣ Lack of Traction or Proof of Concept 3️⃣ Unclear Exit Strategy or Business Model 4️⃣ Overhyped Projections 5️⃣ Unrealistic Financial Projection 👉 Avoid these pitfalls and position your startup for strong investor confidence. At Angeltors, we guide startups to become investment-ready and connect them with the right investors. 🔗 Connect with us today to strengthen your startup journey: https://lnkd.in/daCD55XU #StartupTips #InvestorRelations #Funding #AngelInvestors #StartupGrowth #Angeltors

Investor control can shape the destiny of startups. But how common is it for seed investors to wield the power to block a sale? Explicit veto rights are rare, but the need for majority approval—often 80% or more—isn't. This reality stems from: - Standard VC protective provisions requiring investor approval for significant moves. - Board control dynamics influencing decision-making power. - Balancing investor interests to align with startup goals. For founders, this means navigating a complex landscape. Retaining control is crucial. Raising less capital can be strategic. Push back on excessive terms and ensure major rights lie with significant shareholders. Negotiation is key. Founders must aim for terms that empower rather than constrain. By focusing on founder-friendly agreements, startups can maintain autonomy and growth potential. Building a balanced board and understanding investor influence is vital. It’s about creating partnerships that fuel progress without sacrificing control.