Danilo Tauro, PhD

[new investment] A bit late...but stoked to participate in the $6Mn seed round of Loop AI - Delivery Intelligence Platform alongside Base10 and Afore Capital. Loop's AI-powered platform helps multi-location food chains manage their operations via data-driven workflows including managing store availability, insights-driven marketing, delivery accounting reconciliation, financial intelligence, and driving store performance. Anand Karthik T. is one of the most intense founders I have met, who is also executing like a beast. This was one of those cases where I committed to invest in the first meeting and was also (I think!) one of the first investors to commit. Looking forward to partnering in the trenches to build this out! PS: after a bit of a gap, will be announcing 2 more investments soon. Stay tuned! https://lnkd.in/dkvNai2W

116

5 Comments

While Silicon Valley and El Segundo may be the first names that come to mind when VCs think of deep tech hubs, New York is growing its footprint too. With leading deep tech startups like Hugging Face, RunwayML, Via, and Bowery Farming already based in the Big Apple, the city's deep tech ecosystem is slowly but surely headed in the right direction. In fact, New York's share of US fundraising continues to rise, surpassing 15% of total US VC deal volume for the first time in 2023. A recent New York Post article highlighted some of the exciting neighborhoods pushing deep tech innovation in the city, like the Brooklyn Navy Yard which is seeing a resurgence in hardware and manufacturing, the Brooklyn Army Terminal which is now a hub for climate-tech, and Manhattan/Brooklyn broadly which face a rapid uptick in AI/ML talent. I've only just started my journey in deep tech, but I wanted to give a special shoutout to folks like Rohan Pujara at Valhalla Ventures and Saptarsi Bandyopadhyay at NSIN who are actively fostering a more connected and inclusive deep tech community here in NYC. If you are a local founder or VC working in the space, I would love to connect and continue fueling NYC's deep tech boom.

20

8 Comments

Uber and Lyft both launched UberX in Raleigh on the same day. Fast forward 6 months, Uber had 90% market share in the area. Here's how we won: 1. Uber's main KPI at the time was ETAs. When a rider was ready to take a trip, we wanted them to get a driver in under 5 minutes. So we launched in a very small geographic area, and our team worked our butts off to match rider and driver demand so ETAs were under 5 minutes. Thus, we launched Uber in Raleigh in a 7 mile circle in downtown Raleigh in April 2014. Lyft, on the other hand, launched in Raleigh, Durham, and Chapel Hill on that same day. They thought covering the entire area (each of those areas are 30-45 min from each other) would help them win since they were first. However, their result was 10-20 minute ETAs for the entire area. So while Uber wasn't available in Durham & Chapel Hill, Lyft's experience was already sub-par. 2. For our team to hit 5 minute ETAs in our small geo, we needed more drivers on the road AND we needed existing drivers to drive when the demand was. So we did tons of top of funnel marketing: ads, driver referrals, and flyers were the best performing methods. And for existing drivers, we looked closely at the real-time data and we'd design targeted incentives. When we saw rider demand not being met, we'd target X number of drivers with extra financial incentives to drive during those times so all ETAs were under 5 minutes. Yes, we burned money to meet rider demand. And it worked. 3. As we grew our small geo in Raleigh and more and more rides were under a 5 minute ETA, we started to build a driver base in Durham and Chapel Hill. We did driver onboarding events, we advertised that we were "coming soon" and we built up supply so come launch day, we'd cover the area well. And 3 months after we launched Raleigh (and 3 months behind Lyft), we launched Durham and Chapel Hill nearly hitting sub-5 minute ETAs on day 1. 4. Uber had local city teams at this time. Meaning my team's sole focus was on the Raleigh-Durham area. We lived, ate, and breathed Uber Raleigh. I worked day and night to grow my market and ensure happy riders and drivers. I answered every single driver support ticket myself. Lyft, on the other hand, had their company in SF overseeing the United States. They didn't have dedicated city teams. This meant when there were events going on in Raleigh, we knew about it and we'd make sure Uber drivers would be there. I don't know what Lyft did, but their presence lacked, and we'd win the big events. Fast forward 6 months from launch, Uber had a >90% market share in the Raleigh-Durham-Chapel Hill area. It taught me a valuable lesson: you don't have to be first. You just have to be focused on what matters most.

24

2 Comments

The above is all true, and I'd like to add a really important point. In the Bay Area, I observed that startups collaborate, partner, meet, etc - all in the spirit of the best possible user experience as an end in itself. The startups work together more. It's easy to get a meeting, you can basically show up to someone's office, just walk in, and you're welcomed. Founders work on "cool" experiences or tech first, and worry about financials second. In NYC I found the reverse to be true. It's harder to get a meeting with a founder. When you get one, it's like going to the dentist; the EA schedules a meeting with you 6 weeks in advance, upon arriving you sit in lobby and you wait until you are called. The meeting is transactional, a "novel" user experience or excitement around a technical breakthrough is rarely a main topic. It's much more transactional. This isn't a criticism in any way, it's just an observation that I believe explains why there are less household tech names coming out of NYC. Because if you look at the household tech names in the world - they always put the user first.

31

9 Comments

Zepto raises $665 million at a $3.6 billion valuation. Here's why this raise is exciting for the Qcommerce space and startup ecosystem: Zepto's repeated fundraising success is impressive. > Pioneered the 10-minute commerce game. > Reached $1 billion GMV in under 2 years. > Founders are among the youngest in the startup world. > Built an exceptional team quickly. > Raised significant funds despite strong competition from Swiggy, Blinkit, BBNow, and others. > India is leading in aggressive Qcommerce growth. Reflecting on my TinyOwl days in the early FoodTech space, competition was fierce, and investors were cautious. However, things are different now: > Markets have scaled, unlocking multi-billion dollar opportunities. > IPOs are now viable, even for third or fourth ranked players with strong financials. Investors may feel relieved, but the Qcommerce space will remain highly competitive for the next few years. Consumers, meanwhile, are spoiled for choice. Interesting times ahead.

34

Carta, a Silicon Valley startup, is reportedly working on a secondary sale that would value the company at $2 billion. This is a significant drop from its previous valuation of $7.4 billion in 2021 and $8.5 billion in 2022. Key takeaways: Carta's initial goal was to become the primary platform for all private stock transactions, but it has faced challenges in different business lines and potential data privacy issues. The company has also been embroiled in controversies surrounding its toxic work culture and lawsuits from former employees. With its current focus on its cap table management software, Carta generated $380 million in revenue in 2023 but also lost $65 million. Counter arguments: Some argue that Carta has mashed together various businesses and inflated its valuation, making the $2 billion valuation more realistic for its operations. The company has also faced competition from bigger players as its early customers outgrow its services and move on to larger banks for similar services. #venturecapital #vc #venture #startups

4

1 Comment

Stripe advertises a 𝟮.𝟵% 𝗳𝗲𝗲 (+30c) - yeah, but AIPRM 𝗽𝗮𝘆𝘀 𝟱.𝟴% What's up with that? That 5.8% is the average on all sales processed, across all transactions globally. Yes, international, yes currency conversion fees... But it doesn't look like we get the benefit of (much cheaper) US transactions with an 𝗮𝘃𝗲𝗿𝗮𝗴𝗲 𝗼𝗳 𝟱.𝟴% 𝗬𝗲𝘀, 𝟱.𝟴% 𝗼𝗳 𝗮𝗹𝗹 𝗔𝗜𝗣𝗥𝗠 𝗿𝗲𝘃𝗲𝗻𝘂𝗲 𝗴𝗼𝗲𝘀 𝘁𝗼 𝗦𝘁𝗿𝗶𝗽𝗲. And that needs to improve.

6

10 Comments

Open-source models can be a strong lever for increasing gross margins at AI companies, especially those that have hefty cost structures (e.g., enterprise sales orgs that require significant customer success or implementation resources, as well forward-deployed AI services models common in healthcare and life sciences). One of many reasons to maintain a modular and flexible stack with minimal dependencies when building an AI company. More on the importance of flexibility in the AI stack: https://lnkd.in/eA2XATRk h/t Delip Rao #ai #artificialintelligence #generativeai #healthcare

50

6 Comments

"Getir: The Rise, Challenges, and Strategic Retreat of a Global Delivery Giant" Getir, founded in 2015 in Istanbul by Nazim Salur, skyrocketed to prominence by promising grocery delivery within 10 minutes. Its valuation soared to $11.8 billion, attracting investments from Sequoia Capital, Tiger Global, and Mubadala Investment Co. However, after expanding into Europe and the US, its last known valuation plummeted to $2.5 billion. Despite its rapid growth, Getir faced internal conflicts over strategy, notably between its Turkish leadership and European managers. Disagreements arose over the feasibility of maintaining the 10-minute delivery promise and the profitability of selling bananas at heavily discounted prices, with some markets questioning the sustainability of such tactics. The acquisition of rival Gorillas further strained Getir's finances, leading to a cash burn rate of $50 million per month by summer 2023. This financial strain, coupled with a mass exodus of high-ranking staff, forced Getir to reassess its priorities. In response, Getir decided to exit international markets and focus on its core market of Turkey. Mubadala, alongside investor G Squared, injected up to $200 million in funding, contingent on meeting specific targets. This strategic retreat signifies a shift towards financial discipline and a return to Getir's roots, emphasizing its resilience and adaptability in a fiercely competitive industry.

1

👮🏻‍♂️ With TikTok facing a potential ban in the U.S., the social media landscape could see big shifts! Wedbush Securities predicts big wins for Meta & Google in ad revenue, as users might flock to Instagram & YouTube. But... TikTok has a huge cloud infrastructure spending (saw $5b+ annual spending analysis 🤯), especially on Oracle Cloud Amazon Web Services (AWS) Google Cloud Akamai Technologies, and others. A ban would be a substantial revenue hit on those vendors 😬 #tiktok #geopolitics #cloud #infrastructure #cloudspending #cdn #storage #cloudcompute #security #contentmoderation #isp https://lnkd.in/gZ6ZPR4V

11

When is a Good Time to Raise a Series A? 💸 💸 💸 There is no clear cut to this question as it really depends on your individual situations. Having said that, there are 8 key elements all early stage founders should think hard about: 🔥 Burn - How much money do you have left in the bank? 💰 Promises - Did you achieve what you said you would do since your seed round? 💸 Traction - What is Your Minimal Viable Growth Momentum 🔢  Metrics 🔊 Signals - Customers testimonial, known hires, new launches and media buzz 👓 Future - What milestones you want to accomplish with your A? 💰 Cash Needed - Median Series A funding last year was $6.4 million ⏰ Timing is Everything Read more on my newsletter 👉 👉👉 https://lnkd.in/gJazyUjP #VentureCapital #TechIndustryNews #SiliconValley #LeadershipInsights #BusinessStrategies #EarlyStage #funding #M&A #exits #IPO #SeriesA #valuation #founder #AI #VC #Fundraising #OpenAI

41

3 Comments

#AntiPortfolio - a self-reflection exercise that I run quarterly, analyzing the companies that I backed then failed, the companies that I could not close like Airalo, Loggi, and Multiplier, or the ones that I regrettably passed that are doing well. Frequent postmortem analysis is crucial for learning from my mistakes and understanding why I failed. Each misstep is an invaluable lesson that reshapes my decision-making. It’s through these tough experiences that I am learning to refine my investment criteria every day.

49

4 Comments

We have an another lineup of star investors for MELT. Let me introduce 23 amazing VCs and Angels ! ☞ Stedde Capital Sector: Biotech, B2C, B2B ☞ The Collective Sector: Fintech ☞ Muivona Capital Sector: Healthtech, Legaltech, Retailtech, AI, E-commerce, B2B ☞ Touring Capital | AI SaaS Fund Sector: SaaS, B2B, AI ☞ Forum Ventures Sector: Fintech, Climate tech, Govtech, Legaltech, Cybersecurity, AI, B2B, SaaS ☞ Plain Sight Capital Sector: Fintech, Insurtech, Retailtech, Legaltech, Govtech, Adtech ☞ Fantastocker INC Sector: Fintech ☞ Biran Capital Sector: Fintech ☞ Lynx Ventures Sector: Fintech, Proptech, Legaltech, AI ☞ CLNM Capital Sector: Fintech ☞ Brilliant Minds Sector: AI, Fintech, Climate tech, Retailtech, Biotech, Neurotech ☞ Woodside Capital Partners Sector: Adtech, E-commerce, B2B, B2C, SaaS ☞ Generous Ventures Sector: Fintech, Healthtech, Climate tech, Edtech, Insurtech, Proptech, Agtech, Govtech, Legaltech, Retailtech, Biotech, Adtech, Mobility, Cybersecurity, AI, B2C, Gaming, Web3, Robotics, AR/VR, Neurotech, Spacetech, B2B, E-commerce, SaaS ☞ 615.vc Sector: Spacetech ☞ seedlabs co / Harvard Sector: AI ☞ Bullpen Capital Sector: Fintech, Healthtech, Climate tech, Edtech, Proptech, Insurtech, Agtech, Govtech, Legaltech, Retailtech, Adtech, Biotech, Spacetech, Gaming, Web3, Mobility, Robotics, Cybersecurity, AR/VR, Neurotech, AI, B2C, B2B, SaaS, E-commerce ☞ Connecticut Innovations Sector: SaaS, B2C, B2B ☞ Matr (Matter) Ventures Sector: Fintech, Cybersecurity, Healthtech, Climate tech ☞ Sanctor Capital Sector: Web3, AI, AR/VR, Gaming ☞ Clockwork // 171 Ventures Sector: Fintech, AI ☞ W Ventures Sector: Fintech ☞ BASE64 Capital Sector: B2B, SaaS, AI, Cybersecurity, Robotics ☞ Conscience VC Sector: Healthtech, AI, B2C Founders x Investors Dynamic Network 『MELT』 6/3 5pm https://lu.ma/ldbfgkez 【💎VIP Sponsored】 ​Bradley Kam ​・Founded 2 companies Unstoppable Domains & Talkable ・Raised over $70M ・Unstoppable Domains recently raised $65M in a Series A round led by Pantera Capital, reaching a $1B valuation. Aquibur Rahman ​Founder of Mailmodo, has received funding from Sequoia and is an alum of Y Combinator S21 ​Nathan Stevenson ​CEO and Founder of ForwardLane Inc. has been featured by Forbes, the World Economic Forum, and American Banker ​Rene Anziani & Leevar Williams ​Founded by MIT alumni, APrime Technology Technology is an elite team of experienced engineers, product managers, and data experts intent on helping startups build innovative products that matter. Our customers operate in complex, data-driven, highly regulated industries such as quantitative finance, healthtech, fintech, and edtech. We have received 400+ registrations. ​・76 VC and Angel Investors ​・280+ Founders/CEOs ​3 Series D companies ​2 Series C companies ​6 Series B companies ​35 Series A companies ​15 Pre-Series A companies ​106 Seed companies ​146 Pre-Seed companies ​26 Bootstrap companies ​50+ Executives Meet at us MELT!

42

4 Comments

Multiples – Why EBITDA matters It used to be, not too many years ago, that SaaS companies were almost purely valued as a multiple of Revenue. Today, according to a recent report from Aventis Advisors, SaaS EV/Revenue multiples are less than 1/3 of what they were just two years ago, a 66% decrease. Interestingly enough, valuations based on EBITDA (of those same companies), while they have dropped, have only decreased by 25%. In other word - EBITDA matters. Gone are the days where simply posting growing revenue streams was enough to garner a great valuation. Now, you have to be profitable. Get a complimentary Value Builder assessment to see where you’re falling short. It may not be pretty – but isn’t it better to know now and address it vs. have an investor or acquirer give you the bad news? Either way, we’re here when you’re ready. ✅ Click the link in the comments section to 2x Your Value for your Endgame✅

2

2 Comments

Secondaries are becoming a super attractive asset class. Just this month, StepStone announced a new $3B+ fund dedicated to secondaries. Late-stage private companies are still trading at a discount relative to their 2021-2022 highs. But the venture capital advisor exemption requires firms to keep their secondary positions less than 20% of total investments. I think this will encourage fund managers to get creative with registration/legal structures in order to unlock greater exposure to secondaries as attractive deals come through. https://lnkd.in/e_3_xitM

33

3 Comments

Back to regularly scheduled musings b/c ... startups are fun :) "LET FIRES BURN" is on the short-list of random advice I share with all startups. I learned this lesson from one of the best under-the-radar CEOs out there, Eduardo Vilar. He pulled me aside a month into my tenure and kindly let me know that I was going to drive myself - and everyone else - crazy if I kept trying to fix every problem and fill every gap. There are (1) soooooooooo many problems at a startup (2) sooooooooo many things that are good that could be great! The best operators are the ones who choose which fires to let burn, and instead focus only on points of highest leverage. This is *still* probably the biggest place for development for me as an operator. Finding points of leverage and ignoring things-that-are-annoying-but-not-high-value can catapult a business forward. 

84

12 Comments

Mubadala Set to Take Controlling Stake in Getir After $250 Million Injection Turkish food delivery startup Getir has agreed to a restructure that will split the business and bring in a $250 million capital injection led by Abu Dhabi wealth fund Mubadala Investment Co. Mubadala will lead the round and take a controlling stake in Getir’s domestic grocery and food business in Turkey, according to a statement from Getir on Monday. Cofounder and Chief Executive Officer Nazim Salur will be replaced by Getir’s Turkey head Batuhan Gultakan. #venturecapital #fundraising #investing Supercap Group Mubadala Capital

9