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In today’s rapidly evolving world, supply chain and logistics have come into the spotlight as industries face immense challenges and innovation opportunities. With recent disruptions and increasing demands on global logistics networks, there is a heightened need for tech-driven solutions that improve resilience, transparency, and efficiency across the supply chain. This dynamic has caught the attention of venture capitalists (VCs) eager to fund startups that can solve these pressing issues, making supply chain and logistics a high-potential area for investment. For founders, the support of a knowledgeable, strategic investor can provide the resources needed to tackle complex logistical problems and accelerate growth. This article will highlight the top 10 VC investors actively funding supply chain and logistics startups and offer insights into what these investors prioritize and practical advice for approaching them successfully. Top 10 VC Investors Funding Supply Chain and Logistics Startups In the rapidly evolving supply chain and logistics sector, securing investment from venture capital firms that offer more than just capital can be pivotal for a startup's success. The following is a curated list of top 10 venture capital firms with a specific focus on supply chain and logistics, each providing unique strategic value to founders: 1. Bluestein Ventures About: Bluestein is a family-backed VC that invests in the future of food. The firm focuses across high-growth CPG, food tech, commerce, & digital. Sweetspot check size: $ 750K Thesis: We invest in early-stage food ventures across the supply chain - both B2C & B2B - including high-growth consumer brands, next-gen commerce, digital technology, and proprietary foodtech. Focus is Seed to Series A. 2. Monozukuri Ventures About: Monozukuri Ventures provides investment, mentorship, prototyping know-how and manufacturing expertise for hardware startups. Sweetspot check size: $ 250K Thesis: Monozukuri Ventures is focused on funding hardware startups in the fastest growing industries: robotics, AI, clean energy, wearables, space tech, IoT, healthcare, smart home and more. We invest in 10-15 hardware startups per year, with a typical check ranging from USD 150K to 300K at first, with a chance to follow investment up to USD 1M accumulate. 3. Dynamo Ventures About: Dynamo Ventures specializes in early-stage investments within supply chain and mobility sectors. They focus on pre-seed and seed-stage startups, aiming to drive innovation in logistics and transportation. Traction metrics requirements: We look at startups pre-Series A from inception. Thesis: Dynamo Ventures invests in B2B Supply Chain and Mobility. Strategic Value: Deep industry expertise in supply chain and mobility. Extensive network with logistics corporations and industry leaders. 4. 8VC About: 8VC invests in early-stage companies across various sectors, with a significant focus on logistics and supply chain technologies. They aim to support transformative solutions that enhance operational efficiencies. Traction metrics requirements: Pre-seed - Serial entrepreneur(s) team Seed - Need customers/prospects who would talk to us on the company Series A - Post revenue Thesis: Investing in disruptive technologies in enterprise, healthcare and automation in various industries. Strategic Value: Strong track record in scaling AI and automation within logistics operations. Access to a broad network of industry experts and corporate partners. 5. Schematic Ventures About: Schematic Ventures is an early-stage venture capital firm dedicated to investing in supply chain, manufacturing, and commerce technology startups. Strategic Value: Specialized focus on supply chain and manufacturing sectors. Hands-on approach with deep operational support. 6. Prologis Ventures About: “We take logistics further, powering a global supply chain that's stronger, smarter and more resilient than ever before.” Strategic Value: Direct access to Prologis' extensive real estate and customer base. Expertise in logistics real estate and infrastructure. 7. Eclipse Ventures About: We help entrepreneurs build companies that will boldly transform the industries that define and propel economies. Thesis: Eclipse Ventures helps entrepreneurs build companies to boldly transform the industries that define and propel economies. Strategic Value: Emphasis on regional startups, providing unique market insights. Strong connections with policymakers and regional business leaders. 8. Xplorer Capital About: Xplorer Capital invests in early to growth-stage technology companies, with a focus on those transforming industries like logistics and supply chain through advanced technologies. Strategic Value: Expertise in scaling companies leveraging AI and automation. Global network facilitating international expansion. 9. Outlierz Ventures About: Outlierz Ventures is a pioneer African Seed-focused VC firm backing outstanding founders solving Africa's most pressing challenges and re-inventing the continent's future. We invest at Pre-Seed, Seed, and Pre-Series A stages in companies using Technology to transform key traditional industries across Africa's main tech hubs. Thesis: We believe Technology creates tremendous opportunities for talented entrepreneurs to change the status quo. Our mission is to channel capital, knowledge, and networks to Outlierz founders solving Africa’s pivotal problems. Thus, generating outsized returns while creating long-lasting socio-economic impact. 10. Poligono Capital About: We invest in early-stage startups to develop possibilities for success through technology. Non-bank financial organization that believes in exponential capital growth through portfolio diversification and innovative vision. Sweetspot check size: $ 100K Traction metrics requirements: CAGR, ARR, GMV, CHURN RATE, BURN RATE, RUNWAY 11. SpringTime Ventures About: Seed stage fund focused on technology investments in the Rockies. Sweetspot check size: $ 500K Thesis: We look for founders with domain expertise, forging a path with a truly transformative technology. What Supply Chain and Logistics Founders Should Know Before Approaching VCs Navigating the venture capital landscape requires a keen understanding of current industry trends, awareness of common pitching pitfalls, and strategies for aligning your presentation with investor priorities. Related resource: How to Get Your Startup Ready for Investors’ Operational Due Diligence Current Trends VCs Are Focusing On Supply Chain Resilience: The COVID-19 pandemic exposed vulnerabilities in global supply chains, prompting investors to prioritize startups that enhance flexibility and robustness. Solutions that mitigate disruptions and adapt to changing conditions are highly attractive. Sustainability: Environmental concerns are at the forefront, with VCs seeking startups that offer eco-friendly logistics solutions, such as reducing carbon footprints and promoting sustainable practices. Automation and AI Applications: Technologies like artificial intelligence and automation are revolutionizing logistics by improving efficiency and reducing costs. Investors are keen on startups leveraging AI for demand forecasting, route optimization, and warehouse automation. Digital Transformation: The shift towards digital supply chains, incorporating IoT, blockchain, and cloud-based solutions, is a significant focus area. Startups facilitating this transformation are gaining investor interest. Related resource: Top Trends and Leading VCs Investing in D2C Brands: A Comprehensive Guide for 2024 Common Mistakes Founders Make When Pitching Overcomplicating the Message: Founders often delve too deeply into technical details, making it challenging for investors to grasp the core value proposition. It's crucial to communicate your solution's benefits clearly and concisely.Neglecting Market Understanding: Failing to demonstrate a deep understanding of the market landscape, including competitors and customer needs, can undermine credibility. Investors need assurance that you know the industry well. Lack of a Clear Monetization Strategy: Presenting a solution without a well-defined revenue model can raise concerns about the startup's viability. Ensure you articulate how your business will generate profits. Ignoring Scalability: Investors seek scalable solutions. Overlooking how your startup can grow and adapt to increasing demands may deter investment. Recommendations for Tailoring Pitches to Align with Investor Priorities Highlight Alignment with Current Trends: Demonstrate how your solution addresses key industry trends such as resilience, sustainability, and digital transformation. Use data and case studies to substantiate your claims. Simplify Your Value Proposition: Present your solution in a straightforward manner, focusing on the problem it solves and the benefits it offers. Avoid unnecessary jargon and technicalities. Showcase Market Knowledge: Provide insights into the market size, growth potential, and competitive landscape. Illustrate your understanding of customer pain points and how your solution uniquely addresses them. Detail a Clear Business Model: Outline your revenue streams, pricing strategy, and financial projections. This transparency builds investor confidence in your startup's financial viability. Emphasize Scalability: Explain how your solution can scale to meet growing market demands. Discuss plans for expansion, potential partnerships, and strategies to handle increased operations. Importance of Metrics and KPIs for VCs in Logistics VCs seek startups that can demonstrably enhance efficiency, scalability, and profitability in the supply chain and logistics sector. Founders who present data-driven metrics effectively showcase traction and growth potential, aligning with investor expectations. Utilizing tools like Visible can assist in tracking and presenting these metrics professionally. Operational Efficiency Operational efficiency directly influences costs, service speed, and customer satisfaction. VCs assess this to determine how well a startup's solution streamlines processes and reduces waste. Key Metrics to Highlight: Throughput Time: Duration to complete a task or process. Utilization Rates: Efficiency of equipment and workforce usage. Error Rates: Frequency of mistakes in processes like order picking or packaging. How to Present It: Use before-and-after comparisons to demonstrate efficiency gains your solution delivers. Visible's platform can help create clear visualizations of these improvements. Customer Retention and Satisfaction High customer retention indicates strong product-market fit and satisfaction, reflecting the reliability and relevance of your solution. Key Metrics to Highlight: Net Promoter Score (NPS): Measures customer willingness to recommend your service. Churn Rate: Percentage of customers discontinuing use over a period. Repeat Customer Rate: Proportion of customers making multiple purchases. How to Present It: Highlight trends over time or recent improvements in customer loyalty or satisfaction due to your solution. Visible enables effective tracking and reporting of these metrics. Cost Savings and Return on Investment (ROI) In a cost-sensitive industry, demonstrating that your solution leads to significant cost savings validates its value proposition and sustainability. Key Metrics to Highlight: Cost-per-Order (CPO): Average expense incurred per order processed. Transportation Cost Reduction Percentage: Savings achieved in transportation expenses. Overall ROI: Financial return clients gain from implementing your solution. How to Present It: Provide case studies or testimonials quantifying cost savings from existing customers. Scalability and Growth Metrics VCs prioritize startups with solutions capable of rapid growth without proportional cost increases, ensuring long-term viability. Key Metrics to Highlight: Capacity for Increased Volume: Ability to handle growing demand. Speed of Onboarding New Clients: Efficiency in integrating new customers. Customer Acquisition Cost (CAC): Expense associated with acquiring a new customer. How to Present It: Show projections demonstrating maintained or improved performance metrics as you scale. Route Optimization and Delivery Performance Timely and cost-efficient delivery is crucial in logistics. VCs look for startups that optimize routes, reduce delivery times, and enhance last-mile efficiency. Key Metrics to Highlight: Average Delivery Time: Typical duration for deliveries. On-Time Delivery Rate: Percentage of deliveries made on schedule. Fuel Savings from Optimized Routes: Reduction in fuel consumption due to improved routing. Cost per Mile: Expense incurred per mile traveled. How to Present It: Provide real-world data or case examples illustrating faster deliveries or transportation cost savings achieved through your solution. Related resource: Top 10 VCs Fueling Innovation in Transportation Data-Driven Insights and Predictive Capabilities Solutions offering advanced data analytics or predictive insights provide a competitive edge, enabling proactive decision-making. Key Metrics to Highlight: Forecasting Accuracy: Precision in predicting demand or inventory needs. Percentage of Decisions Automated: Extent to which processes are automated. Customer Adoption Rate of Analytics Features: Level of client engagement with data-driven tools. How to Present It: Highlight machine learning or AI capabilities that allow clients to make informed decisions and address issues proactively. Visible can assist in tracking adoption rates and showcasing the impact of these features. Key Challenges and Opportunities in Supply Chain and Logistics The supply chain and logistics sector is undergoing significant transformation, presenting both challenges and opportunities for startups. Challenges Facing Startups Regulatory Complexities: Navigating the intricate web of international trade regulations, customs procedures, and compliance standards can be daunting. Startups must stay abreast of evolving policies to avoid legal pitfalls and ensure smooth operations.Infrastructure Demands: Establishing a robust logistics network requires substantial investment in warehousing, transportation, and technology. For startups, building or accessing this infrastructure can be capital-intensive and time-consuming. High Research and Development (R&D) Costs: Developing innovative solutions, especially those involving advanced technologies like AI and automation, entails significant R&D expenditure. Securing funding to cover these costs is often a major hurdle for emerging companies. Supply Chain Disruptions: Global events, such as pandemics or geopolitical tensions, can disrupt supply chains, affecting startups' ability to deliver services and maintain customer trust. Building resilience against such disruptions is essential but challenging. Opportunities Attracting Investors E-commerce Growth: The surge in online shopping has heightened the need for efficient logistics solutions. Startups that can enhance last-mile delivery, optimize fulfillment processes, or integrate seamlessly with e-commerce platforms are particularly appealing to investors. Demand for Supply Chain Visibility: Companies increasingly seek transparency in their supply chains to monitor shipments, manage risks, and improve efficiency. Startups offering real-time tracking, data analytics, and predictive insights are well-positioned to meet this demand. Sustainability Initiatives: Environmental concerns are driving the adoption of green logistics practices. Startups that provide eco-friendly solutions, such as carbon footprint reduction technologies or sustainable packaging, are gaining traction among investors focused on ESG (Environmental, Social, and Governance) criteria. Technological Advancements: Integrating AI, machine learning, and automation revolutionizes logistics. Startups leveraging these technologies to enhance operational efficiency, reduce costs, or offer innovative services are attracting significant investment. Secure Venture Capital for Your Supply Chain and Logistics Startup with Visible Raising venture capital in the supply chain and logistics space requires founders to present a clear, scalable solution that meets today’s industry challenges. With investors keen on innovations in resilience, sustainability, and digital transformation, founders have the opportunity to secure support for impactful growth. To further streamline your fundraising Visible offers tools to help Supply Chain and Logistics founders stay connected with investors, track performance, as well as present key metrics like route efficiency and cost savings. Find investors at the top of your funnel with our free investor database, Visible Connect. Here's a prefiltered list of VCs active in the Supply Chain and Logistics sector. Track your conversations and move them through your funnel with our Fundraising CRM Share your pitch deck and monthly updates with potential investors Organize and share your most vital fundraising documents with data rooms Manage your fundraise from start to finish with Visible. Give it a free try for 14 days here.

In recent years, rapid technological advancements and shifting consumer demands have transformed the transportation sector. From electric and autonomous vehicles to last-mile delivery innovations, sustainable transport solutions, and AI-driven logistics, transportation startups are pushing boundaries and redefining how people and goods move across cities and countries. As these startups take on the challenges of this dynamic industry, they often face high capital requirements, regulatory hurdles, and the need to scale complex infrastructure. Finding the right venture capital (VC) partners can make a significant difference for transportation founders. Specialized transportation investors can provide the necessary capital and bring invaluable industry expertise, regulatory insights, and networks within the transportation ecosystem. Working with the right investors can equip transportation startups with the tools to navigate industry-specific challenges and seize growth opportunities effectively. This article will highlight the top 10 investors actively funding transportation startups, along with other helpful information to help founders be well-prepared for their transportation fundraising journey. Why Specialized Transportation Investors Matter When it comes to building a successful transportation startup, securing funding from generalist investors can be valuable- but partnering with venture capitalists specializing in transportation can make an even bigger impact. Transportation-focused VCs bring more than just capital to the table, they offer deep sector knowledge, established connections within the industry, and a deep understanding of the unique hurdles that transportation startups face. These advantages often translate into more strategic guidance, better industry insights, and enhanced growth opportunities. Sector-Specific Expertise Specialized transportation investors have an in-depth understanding of the complexities involved in this industry. They are well-versed in areas like supply chain logistics, vehicle technologies, fleet management, and sustainable transit solutions. This expertise is particularly useful in assessing and supporting new technologies, whether a startup is pioneering advances in electric vehicles or working on cutting-edge AI applications for traffic optimization. With a VC who knows the industry inside and out, founders can receive advice grounded in firsthand experience, accelerating their growth and increasing the likelihood of sustainable success. Related resource: Top VCs Driving Transformation in Supply Chain and Logistics Relevant Connections Transportation-focused VCs typically have a broad network of connections with suppliers, industry leaders, regulatory bodies, and potential partners. These relationships can be instrumental for startups, helping them establish partnerships and scale faster in a sector where collaboration is often key. Whether it’s securing strategic partnerships with major automotive companies or finding dependable logistics providers, having a VC with established contacts can be a major advantage for startups working to break into the market. Understanding of Regulatory and Operational Challenges Navigating regulatory requirements can be one of the toughest parts of launching a transportation startup. Specialized investors understand the regulatory landscape- whether it's federal safety standards for autonomous vehicles, emissions regulations, or logistics compliance protocols. They are more likely to guide founders through the complexities of compliance and introduce them to industry consultants or advisors when needed. Additionally, these investors often anticipate operational challenges unique to transportation, such as high initial capital requirements and complex supply chains, and are equipped to help founders develop realistic, resilient business models. Top 10 VC Investors in Transportation AV8 Ventures About: AV8 Ventures is an early-stage VC firm comprised of industry experts, scientists, operators, and investors that leverage. Thesis: Investing in disruptive technologies in enterprise, healthcare and automation in various industries. BMW i Ventures We find and grow cutting-edge technology companies redefining the automotive industry. Navigate Ventures A venture capital firm that provides seed capital and regulatory support to entrepreneurs shaping the future of cities – helping them grow into tomorrow’s most valued companies. Trucks Venture Capital Trucks Venture Capital funds the entrepreneurs building the future of transportation. Maniv Mobility Maniv Mobility is a global early-stage venture fund based in Tel Aviv and New York. We partner with founders advancing the cleaner, safer, more efficient and more sustainable movement of people and goods. With decades of experience in the mobility, transportation, electrification and policy sectors, Maniv has built a deep global network of industry leaders and experts - allowing us to closely partner with startups and drive better outcomes. Maniv is backed by some of the world's leading automotive, transportation, infrastructure and energy companies. Dynamo Ventures Dynamo invests in extraordinary founders building technology businesses in supply chain and mobility. Fontinalis Partners About: Fontinalis Partners, with offices in Detroit and Boston, is a venture capital firm strategically focused on next-generation mobility. Thesis: Macro trends are driving demand, Mobile & big data are catalyzing growth, Proven technology can be scaled globally, A strategic approach enhances value creation Schematic Ventures Schematic Ventures is an early-stage venture capital fund located in San Francisco. The fund is focused on investments in technology companies within supply chain, manufacturing, commerce infrastructure & digital industrial sectors. AutoTech Ventures About: Autotech Ventures is a venture capital firm focusing on the ground transportation sector. Thesis: We invest globally in seed through series C startups solving ground transport challenges related to connectivity, autonomy, shared-use, electrification, and digitization of enterprise. TA Ventures 1843 is a technology-focused venture capital firm supporting Series A startups with diverse founding teams. Our team brings 40+ years of combined experience in venture investing, hardware, software and operations. We have taken companies from start to exit and have the track record to prove it. We leverage our deep, personal networks as a unique competitive advantage for deal flow and portfolio support. We have an extensive network of committed global advisors including successful founders, leading operators, and co-investors dedicated to supporting the growth of our portfolio companies. Key Investment Trends in Transportation The transportation sector is undergoing significant transformation, driven by technological advancements and evolving consumer preferences. VCs are actively channeling funds into several key areas, reflecting current industry trends and future growth potential. Sustainable Transportation Investors are increasingly prioritizing startups that offer eco-friendly solutions, such as electric vehicles (EVs), hydrogen fuel cells, and alternative energy sources. The European Union, for instance, needs to invest €39 billion annually to meet its 2050 net-zero transport targets, underscoring the emphasis on sustainability. Related resource: Guide to CleanTech and Climate Tech in 2024 + Top VCs Investing AI in Logistics AI is revolutionizing logistics by enhancing route optimization, demand forecasting, and supply chain efficiency. Startups leveraging AI to improve operational efficiency and reduce costs are attracting significant VC interest. For example, Volvo Group Venture Capital invested in aifleet, a U.S.-based company utilizing AI to reshape trucking operations. Related resource: The Role of AI in Startups and Venture Capital + Top VCs Investing in AI Shared Mobility Solutions The rise of ride-sharing, car-sharing, and micro-mobility platforms is reshaping urban transportation. VCs are funding startups that offer innovative shared mobility services, catering to the growing demand for flexible and cost-effective transportation options. Examples are Lime, Miles, and Turo. InDrive, a transportation services startup, launched a venture arm to invest in startups aimed at geographical expansion. Regulatory Technology (RegTech) Navigating complex transportation regulations is a significant challenge. Startups developing RegTech solutions to streamline compliance processes are gaining attention from investors as they help companies adhere to evolving standards efficiently. What Transportation Startups Should Prepare for Fundraising In the transportation sector, attracting venture capital requires more than just a compelling idea. Investors expect startups to clearly understand the industry’s demands and challenges, backed by hard data and strategic planning. Here’s what transportation startups should prioritize to improve their chances of successful fundraising. Data-Driven Impact For transportation startups, showcasing traction and impact with data is essential. Investors want to see measurable progress, such as route efficiency improvements, emissions reductions, or cost savings that prove the startup’s value proposition. Metrics like miles saved per vehicle, percentage reduction in carbon emissions, and cost efficiency can demonstrate a startup’s tangible impact, differentiating it from competitors. Presenting data-driven results establishes credibility and shows that the startup has a scalable, replicable model that could yield a high return on investment. Related resource: Our Favorite Posts for Sharing Documents, Decks, and Data While Fundraising Regulatory Knowledge Understanding and navigating transportation regulations is a significant hurdle that can make or break a startup’s success. Local, state, and international regulations vary widely, covering aspects like vehicle safety, emissions standards, and logistics protocols. Investors need to be confident that the startup is aware of these regulations and has strategies for compliance across different markets. This knowledge mitigates potential risks, ensuring smoother scalability and long-term viability. Demonstrating regulatory understanding shows VCs that the startup is well-prepared for expansion and can avoid costly regulatory setbacks. Capital Requirements Transportation is a capital-intensive sector, especially for startups dealing with hardware or infrastructure-heavy operations like autonomous vehicles or logistics networks. High R&D, manufacturing, and operational scaling costs require a solid financial plan. Founders should prepare detailed financial projections, including capital expenditure, cash flow, and expected funding stages. Investors appreciate founders with a realistic understanding of capital requirements and a roadmap for sustaining growth over time. Secure Venture Capital for Your Transportation Startup with Visible Raising capital for a transportation startup is about more than just innovation - it calls for careful planning, industry know-how, and a supportive network. Visible offers tools to help transportation founders stay connected with investors, track performance, as well as present key metrics like route efficiency and cost savings. Find investors at the top of your funnel with our free investor database, Visible Connect. Here's a prefiltered list of VCs active in the transportation sector. Track your conversations and move them through your funnel with our Fundraising CRM Share your pitch deck and monthly updates with potential investors Organize and share your most vital fundraising documents with data rooms Manage your fundraise from start to finish with Visible. Give it a free try for 14 days here.

In recent years, Miami has gained traction as a vibrant and dynamic hub for startups and venture capital investment. With a unique blend of cultural diversity, strategic access to international markets, and a pro-business environment, Miami is increasingly attracting founders and investors from across the globe. Known for its strengths in fintech, health tech, and the burgeoning blockchain sector, Miami offers startups access to an emerging ecosystem supported by local talent and a growing influx of seasoned investors relocating from traditional tech hubs. This article will explore the top 10 venture capital firms in Miami poised to fund and support high-potential startups in 2024, along with key insights for founders looking to raise capital in this flourishing city. Why Miami is Ideal for Startup Fundraising Miami has emerged as a prime destination for startup fundraising, offering several strategic advantages: Access to International Markets Miami's geographic location positions it as a gateway to Latin America and the Caribbean, providing startups with unique opportunities to tap into these emerging markets. The city's robust trade infrastructure and multicultural environment facilitate cross-border business operations, enabling startups to expand their reach and customer base effectively. Favorable Business Climate Florida's business-friendly environment enhances Miami's appeal for startups. The state boasts no personal income tax and a relatively low corporate tax rate, allowing entrepreneurs to reinvest more capital into their ventures. Additionally, pro-business regulations and government incentives, such as grants and tax credits, support business growth and innovation. Growing Investor Community In recent years, Miami has experienced a significant influx of investors and tech leaders relocating from traditional hubs like Silicon Valley and New York. This migration has increased the availability of capital and diversified the investment landscape, providing startups access to a broader network of potential investors and mentors. The city's evolving ecosystem fosters collaboration and innovation, making it an attractive destination for fundraising. Challenges to Consider When Raising Venture Capital in Miami While Miami offers numerous advantages for startups seeking funding, founders should be mindful of certain challenges: Competitive Landscape As Miami's reputation as a startup hub grows, the number of startups vying for venture capital has increased, intensifying competition for investment. Founders must differentiate their ventures by demonstrating unique value propositions, robust business models, and clear paths to scalability to attract investor interest. Developing Ecosystem Compared to established tech hubs like Silicon Valley, Miami's startup ecosystem is still maturing. This can result in limited access to experienced mentors, industry-specific resources, and a comprehensive support network. To navigate this, founders should actively engage with local accelerators, incubators, and networking events to build connections and leverage available resources. Access to Local Talent Sourcing specialized talent locally can be challenging due to a smaller pool of experienced professionals in specific tech sectors. To overcome this, startups can implement remote work arrangements to tap into global talent, partner with local universities to develop talent pipelines, and offer competitive compensation packages to attract skilled professionals from other regions. 1. Ocean Azul Partners As the team at Ocean Azul Partners put on their website, “We are an early-stage venture capital firm passionate about helping entrepreneurs bring innovative technology solutions to market. We’re operators who are determined to use our successes and lessons learned to provide significant value to the teams with which we work. We are proud to support entrepreneurs building unique solutions that will shape the futures of their industries.” Investment Range As put on their website, “We write initial checks of size $200K-$2M, with a portion of our fund reserved for follow-on. We play an active role in all of our investments and have board seats on most of them.” Industries The team at Ocean Azul primarily focuses on B2B software. Related Resources: The 12 Best VC Funds You Should Know About 2. Guild Capital As the team put on their website, “Guild Capital is an early-stage venture capital firm. Founded in 2009, we have been dedicated to venture further than conventional Silicon Valley-based VC patterns to look for growth-stage teams who can evolve into great companies.” Investment Range The team at Guild does not publicly state their investment range but does look to companies that have “generated early revenue” or those that have not generated revenue that shows signs of momentum. Industries The team at Guild does not have a specific industry but shares their thesis for industries and markets by stating, “We believe in businesses bringing industry-contrarian solutions to large addressable markets. In general, we prefer markets that are not ‘winner-takes-all.” 3. Starlight Ventures As put on their website, “We are an early stage venture firm designed to address humanity’s biggest challenges and opportunities through breakthrough technology. We aim to enable long-term human flourishing: a prosperous civilization that responds effectively to large-scale opportunities and existential threats alike.” Investment Range The team at Starlight does not publicly state their investment range. Industries The team at Starlight does not publicly state-specific industries but rather invest in companies that impact long-term human flourishing. 4. Fuel Venture Capital As put by their team, “Fuel Venture Capital has brilliantly executed against this mission and has become known and trusted as leaders who are founder-focused and investor-driven. Our world-class venture executives have deployed over $400MM of capital from our global LP base following a disciplined “Phased Investment Thesis” managing risk while driving return on investment.” Investment Range The team at Fuel invests across multiple stages as put below: Industries The team at Fuel invests across many industries but ultimately look to, ‘disruptive global, tech-driven companies.” 5. LAB Miami Ventures As put by their team, “LAB Ventures is a VC Fund and Startup Studio dedicated to accelerating early-stage real estate and construction technology companies… We invest in early-stage real estate and construction technology companies. We invite investors with an interest in these sectors to join our growing network and stay on the leading edge of tech trends.” Investment Range The team at LAB does not publicly state their investment range but typically invests in pre-seed, seed, and series A rounds. Industries As put by their team, “Our focus is on early-stage technology businesses that serve the Real Estate and Construction industries – Property Technology, or “PropTech” for short. We take a very broad view of what is included in PropTech, but have a preference for software over hardware, recurring revenue, and enterprise over the consumer.” 6. Krillion Ventures As put by their team, “Krillion Ventures is a Miami-based venture capital fund that actively invests in early-stage technology companies solving problems in healthcare, financial services, and real estate.” Investment Range The team at Krillion Ventures does not publicly list their investment range but gives the following information, “We invest in companies that can demonstrate proof of concept and are seeking capital to accelerate their growth. We make follow-on investments in our portfolio companies on a deal-by-deal basis.” Industries The team at Krillion is focused on companies in the health tech space. 7. Miami Angels As put by the team at Miami Angels, “We bring together exceptional entrepreneurs and accomplished accredited investors to fuel success. Our group is comprised of over 150 angel investors, many of whom have been entrepreneurs themselves. Beyond providing capital, we collaborate with our founders to ensure they have access to talent and future funding.” Investment Range The team at Miami Angels does not publicly state what their investment range is. You can learn more about their investment criteria below: Industries As put on their website, “Because of our diverse investor base, we are able to leverage that expertise and invest in many industries. However, we do NOT invest in hardware, lifestyle brands, consumer goods, biotech, development shops, or financial derivatives.” 8. Secocha Ventures As put by their team, “Secocha Ventures is an Investment Firm focused on early stage Consumer Products & Services, Fintech & Healthcare Technology companies.” Investment Range The team at Secocha Ventures does not publicly disclose their investment range. They do mention, “We invest in startups raising their Pre-Seed, Seed, or Series-A rounds.” Learn more about the Secocha Ventures investment criteria below: Industries As shown above, the team at Secocha Ventures states, “We invest in FinTech, HealthTech, and Consumer Products & Services.” Related Resources: Private Equity vs Venture Capital: Critical Differences 9. SaaS VC "Investing in visionary SaaS founders all across the country at the earliest stages" Investment Range "Many attractive companies are able to raise significant capital, but often struggle to efficiently fill an entire early-stage (Pre-seed, Seed, Post-Seed) round with value added investors. We like to invest in these rounds and assist in identifying other quality investors to complete the financing. We are honored to collaborate with the best and brightest to create successful enterprises." Industries Enterprise , SaaS, Supply Chain, Logistics, Fintech, Cybersecurity, Security, E-Commerce, ESG, Consumer Goods 10. TheVentureCity As put by their team, “TheVentureCity is a global, early-stage venture fund that refuses to follow the conventional crowd. We offer promising founders investment with bespoke data insights and operating expertise – designed for product-led growth.” Investment Range According to their Visible Connect Profile, the team at TheVentureCity typically writes checks between $1M and $4M. Industries As put on their website, “We are generalists, but index high on Fintech, HealthTech, AI/ML/Data and B2B SaaS. We like businesses that are “needed” and are not just “nice to haves”.” Key Sectors Attracting VC Investment in Miami Miami’s thriving startup ecosystem has become a magnet for venture capital, with key sectors emerging as top choices for investors looking to back high-potential innovations: Fintech and Financial Services Leveraging its status as a major financial hub, Miami has become a fertile ground for fintech innovation. The city's robust financial industry presence provides startups with access to established financial institutions and a diverse customer base. Notably, companies like Pipe, a Miami-based fintech startup, have achieved remarkable success, raising $250 million in strategic equity funding and reaching a $2 billion valuation within just ten months of its public launch. Healthcare and Biotech Miami's proximity to leading medical institutions and research centers has spurred health tech and biotech startup growth. Innovative companies are developing telemedicine, medical devices, and biotechnology solutions, attracting venture capital interested in advancing healthcare technologies. The city's diverse population provides a unique environment for clinical trials and health tech innovation. Blockchain and Crypto With strong support from the local government, Miami is positioning itself as a crypto capital. The city has embraced blockchain technology and cryptocurrencies, hosting major conferences and attracting blockchain startups. Initiatives like MiamiCoin, a city-specific cryptocurrency, exemplify this commitment. In 2021, Miami saw a financing rush of venture capitalists piling into blockchain startups, with investments in the sector skyrocketing a whopping 2,061%. E-commerce and Logistics Miami's strategic location and world-class port and logistics infrastructure make it an ideal base for e-commerce and logistics startups. The city's status as a gateway to Latin America and the Caribbean enables efficient distribution channels, attracting venture capital investment in companies focused on supply chain optimization, last-mile delivery solutions, and cross-border e-commerce platforms. Resources and Support Systems for Founders in Miami Miami's burgeoning startup ecosystem offers a wealth of resources to support entrepreneurs at various stages of their journey. Incubators and Accelerators 500 Startups Miami: A renowned global venture capital firm and startup accelerator, 500 Startups Miami provides early-stage companies with funding, mentorship, and access to a vast network of investors and industry experts. Venture Hive: This accelerator offers a 12-week mini-MBA program focused on business development, providing weekly one-on-one mentoring sessions, consultations with specialists, and access to a growing network of entrepreneurs and investors. The LAB Miami: A co-working space and accelerator that offers mentorship, workshops, and events for entrepreneurs in tech, design, and social entrepreneurship. Co-working Spaces The Hub @ Office Logic Minds Cowork - Wynwood Minspace Miami WeWork Miami Government and Non-profit Initiatives Miami-Dade Innovation Authority: A nonprofit organization formed with seed funding from the John S. and James L. Knight Foundation, Citadel CEO Ken Griffin, and Miami-Dade County. It provides grants to startups addressing community challenges in climate, health, housing, transit, and more. Miami Open for Business Program: Managed by The Miami Foundation, this program supports historically underserved small business owners in Miami-Dade County by providing grants and loans for the purchase and ownership of critical business assets, such as technology, equipment, machinery, inventory, and property. Miami-Dade Economic Advocacy Trust (MDEAT) Business Resource and Education Grant Program: This program offers $2,500 grants to qualified start-up businesses to improve or stabilize neighborhood businesses throughout Miami-Dade County. Find out How Visible Can Help Your Startup Today At Visible, we oftentimes compare a fundraise to a B2B sales and marketing funnel. At the top of your funnel, you are finding new investors. In the middle, you are nurturing and pitching potential investors. At the bottom of the funnel, you are working through diligence and, ideally, closing new investors. Related Resource: A Quick Overview on VC Fund Structure With the introduction of data rooms, you can now manage every aspect of your fundraising funnel with Visible. Find investors at the top of your funnel with our free investor database, Visible Connect Track your conversations and move them through your funnel with our Fundraising CRM Share your pitch deck and monthly updates with potential investors Organize and share your most vital fundraising documents with data rooms Manage your fundraise from start to finish with Visible. Give it a free try for 14 days here. Related Resource: How to Find Venture Capital to Fund Your Startup: 5 Methods

High Alpha, in partnership with OpenView, teamed up to explore pricing models, churn, AI adoption, financial performance, and more in the 2024 SaaS Benchmarks report. The team at High Alpha is joining us to dive into the data and share insights to help founders and investors in 2025 and beyond. We'll be joined by High Alpha Partners, Mike Fitzgerald and Blake Koriath. High Alpha is an Indianapolis-based venture firm that creates and funds B2B SaaS businesses. Mike and Blake will join us on November 21st to dive into the report. Save your spot below: Even if you can't make it — register anyway! We'll send the recording to anyone who registers.

Understanding your startup's potential for growth is crucial in determining how to allocate resources, set goals, and attract investors. One of the key metrics to evaluate is your Service Obtainable Market (SOM)—the portion of the market your company can realistically capture. In this article, we will break down what SOM is, how it differs from other market metrics like total addressable market (TAM) and Serviceable Available Market (SAM), and why it is essential for building a focused, sustainable strategy. You'll also learn how to calculate your SOM and how it helps refine your projections and increase investor confidence. Related resource: How to Model Total Addressable Market (Template Included) What is Service Obtainable Market (SOM)? The Service Obtainable Market represents the portion of your total addressable market that your startup can realistically capture based on its current resources, capabilities, and competitive positioning. It is a refined market segment that takes into account the realities of your business—such as sales capacity, distribution channels, and brand recognition. While other metrics like TAM and SAM offer a broader view of market potential, SOM gives a grounded estimate of what’s achievable. For startups, this figure is crucial in shaping strategy, defining target customers, and setting realistic revenue expectations. Factors of Service Obtainable Market Several factors influence your Service Obtainable Market, helping you determine the most realistic portion of the market you can capture. These include: Market Size and Reach The size of the total addressable market (TAM) sets the foundation for calculating Service Obtainable Market. However, your actual reach depends on your geographic footprint, target demographics, and ability to effectively penetrate the market. Related resource: Bottom-Up Market Sizing: What It Is and How to Do It Product The uniqueness and quality of your product will impact how much of the market you can capture. A product that meets specific needs or offers a strong value proposition can help you stand out and gain a larger share of the market. Competition The level of competition in your industry will directly affect your SOM. A highly competitive market may limit your share, while a niche market or one with fewer competitors can increase your potential capture. Historical Performance and Research Your past sales data and market research are valuable in estimating Service Obtainable Market. Trends in customer acquisition, product adoption, and overall performance provide a realistic basis for forecasting future growth within the obtainable market. Understanding SOM, SAM, and TAM To grasp the full scope of your startup’s market opportunity, it’s essential to understand three key metrics: TAM, SAM, and SOM. While TAM represents the total market demand for your product or service, SAM narrows it down to the portion you can serve based on your business model. SOM refines this even further, focusing on the market you can realistically capture given your resources and competitive positioning. Let’s explore these differences in more detail. Related resource: Total Addressable Market: Lessons from Uber’s Initial Estimates Service Available Market (SAM) vs. Service Obtainable Market (SOM) Service Available Market (SAM) refers to the portion of the total market that your business can serve, based on factors such as your product offering, geographic reach, and target audience. It reflects the customers you could potentially access with your current business model. On the other hand, Service Obtainable Market is a smaller, more realistic portion of SAM. It takes into account not only your ability to serve the market but also your competitive landscape, internal resources, and operational constraints. In essence, SOM is the market share you can realistically expect to capture in the short term. Total Addressable Market (TAM) Total Addressable Market (TAM) is the broadest metric of the three. It represents the total market demand for your product or service, assuming no competition or barriers to entry. TAM reflects the largest possible revenue opportunity available, but it often includes customers or segments beyond your reach or interest. While TAM gives you a big-picture view of the entire market, SAM and SOM help you zoom in on the more actionable portions, with SOM being the most precise estimate of what your startup can capture in the near term. Related resources: Total Addressable Market vs Serviceable Addressable Market What Is TAM and How Can You Expand It To Grow Your Business? How to Calculate Your Service Obtainable Market Calculating your Service Obtainable Market (SOM) is essential for setting realistic business goals and crafting an effective market strategy. While TAM and SAM provide a broader view of potential opportunities, SOM focuses on what your startup can actually capture in the market based on your resources and competitive strengths. To calculate Service Obtainable Market, you'll need to break down your market step by step, narrowing from the largest possible market to the portion you can truly serve. Let’s walk through the process of calculating SOM and how each step contributes to a precise understanding of your market opportunity. Step 1: Define Your Total Addressable Market (TAM) The first step in calculating your Service Obtainable Market is to define your Total Addressable Market the largest possible market for your product or service. To identify your TAM, you’ll need to evaluate the full demand for your offering across all potential customer segments, without considering competition or operational limitations. Start by answering these key questions: Who are your potential customers? Identify all possible user groups or industries that would benefit from your product. What is the overall market size? Research the total number of customers or the revenue potential in your market globally or within your target regions. How big is the need or demand for your product? Assess the pain points your product addresses and the number of customers affected by these challenges. By combining industry data, market reports, and demographic insights, you can estimate the maximum revenue potential of your product or service in its ideal conditions—this is your TAM. Step 2: Narrow to Your Serviceable Available Market (SAM) Once you’ve defined your Total Addressable Market (TAM), the next step is to narrow it down to your Serviceable Available Market (SAM)—the portion of the market that you can realistically serve, based on your business model, product offering, and geographic reach. To assess your SAM, consider the following: Business Model: Which customers can you effectively serve with your current sales, distribution, and operational models? Some markets might be out of reach due to logistical or operational constraints. Product Fit: Focus on the customer segments where your product or service directly addresses specific needs or problems. Not every customer in the TAM will find your solution relevant. Geographic Limitations: Evaluate the regions where your business operates or where you plan to expand. Factors like local demand, regulations, and shipping constraints can limit which parts of the TAM are accessible to you. By refining your TAM with these considerations, your SAM represents the subset of customers that you have the capability and infrastructure to reach and serve. Step 3: Identify Your Competitive Edge To determine your Service Obtainable Market (SOM), you need to identify your competitive edge—the unique advantages that set your startup apart from others in the market. This step involves analyzing your differentiators, understanding market barriers, and assessing your competition to pinpoint your realistic market share. Consider the following: Differentiators: What makes your product or service stand out? This could be superior technology, pricing, customer experience, or unique features that competitors lack. Your ability to leverage these differentiators will help capture a larger portion of the market. Market Barriers: Identify any barriers to entry, such as high development costs, regulatory requirements, or brand loyalty to existing competitors. These barriers can limit your market access and must be factored into your SOM calculation. Competitors: Analyze your competitors' market share, customer loyalty, and positioning. Understanding their strengths and weaknesses will help you identify untapped opportunities where your startup can outperform or gain a foothold. By combining these insights, you’ll be able to estimate the portion of the SAM that you can realistically capture, giving you a clear picture of your Service Obtainable Market. Step 4: Calculate SOM Now that you’ve identified your competitive edge and assessed the market, it’s time to calculate your Service Obtainable Market. To do this, you'll need to apply real-world factors such as sales capacity, market penetration, and your ability to reach customers within your Serviceable Available Market. A simple formula to calculate Service Obtainable Market is: SOM = SAM × Market Penetration Rate For example, if your SAM is valued at $10 million and your startup's estimated market penetration rate is 10%, your SOM would be: SOM = $10,000,000 × 0.10 = $1,000,000 This means that, based on your current resources and competitive position, you can realistically expect to capture $1 million of the $10 million available market. The market penetration rate can be influenced by factors like your sales team’s capacity, marketing effectiveness, and brand awareness. By using this formula, you can calculate a more grounded estimate of your startup’s revenue potential within the Serviceable Available Market (SAM). Why Service Obtainable Market Matters for Startups Understanding your Service Obtainable Market is more than just a calculation—it’s a key element in shaping your startup’s strategy and ensuring sustainable growth. For startups, having a clear view of SOM allows for smarter decision-making, from resource allocation to revenue forecasting. By focusing on a realistic portion of the market, founders can set achievable goals, secure investor confidence, and avoid overextending their business too early. In the following sections, we’ll explore the specific ways SOM impacts your startup’s strategy, projections, and long-term success. Focused Strategy Knowing your Service Obtainable Market helps your startup stay focused by clearly defining the portion of the market you can realistically target. Instead of spreading your resources too thin trying to capture an overly broad audience, Service Obtainable Market allows you to concentrate on the most relevant customer segments. This focus ensures that your marketing, sales, and operational efforts are directed toward the right customer base—those who are most likely to convert. By avoiding the trap of overextending into markets where your resources, product fit, or brand presence are lacking, you can optimize your efforts and build sustainable growth more effectively. Realistic Revenue Projections Your Service Obtainable Market provides a solid foundation for creating accurate sales forecasts and revenue models. By focusing on the market you can realistically capture, SOM allows you to project revenues based on achievable goals rather than overly optimistic estimates. This level of precision is critical when presenting your business to potential investors, as they expect realistic financial models backed by data. Accurate revenue projections help ensure that your growth planning is sustainable and aligned with your current resources, making it easier to set clear milestones and secure the funding you need to scale. Resource Allocation Identifying your Service Obtainable Market enables your startup to allocate resources more efficiently across marketing, sales, and operations. By understanding exactly which portion of the market you can realistically capture, you can focus your efforts on the most promising opportunities. This targeted approach ensures that marketing budgets are spent on channels with the highest conversion potential, sales teams can prioritize leads most likely to close, and operational resources are scaled according to actual demand. Instead of spreading your team and resources too thin, SOM helps you streamline efforts to maximize impact and achieve better results with fewer resources. Investor Confidence Having a clear Service Obtainable Market (SOM) is a strong signal to investors that your startup has a realistic and achievable market strategy. Investors are looking for startups that understand their market deeply and have a plan that balances ambition with practicality. By demonstrating that you’ve calculated your SOM based on data-driven insights and realistic assumptions, you show investors that your growth projections are grounded in reality. This boosts their confidence in your ability to execute your business plan, allocate resources wisely, and achieve sustainable growth, making it easier to secure the funding needed to scale your operations. Connect with Investors with Visible Understanding your Service Obtainable Market is essential for shaping your startup’s strategy, creating realistic revenue projections, and efficiently allocating resources. By focusing on the market you can realistically capture, you position your business for sustainable growth and build investor confidence. As you refine your market approach and seek funding, having the right tools to engage with investors is critical. Visible can help you manage your investor relationships and provide the insights you need to stay on top of your fundraising efforts. Track key metrics, send investor Updates, and track the status of your next fundraise with Visible. Give it a free try for 14 days here.

In the fast-paced world of startups, tracking the right metrics is crucial for success. Among these, Lead Velocity Rate (LVR) stands out as a key indicator of business growth. LVR quantifies the increase in qualified leads over time, offering insights into future revenue potential. Unlike metrics that reflect past performance, LVR provides a forward-looking view, helping startups refine their strategies and predict future sales. By consistently monitoring LVR, startups can gauge their market traction, enhance their marketing efforts, and attract investor confidence, making it an indispensable tool for sustained growth and success. What is Lead Velocity Rate (LVR)? LVR is a metric that measures the growth rate of qualified leads over a specific period, typically month-over-month. It calculates the percentage increase in the number of qualified leads, providing startups with a clear picture of their lead generation efforts and potential future sales. LVR is significant because it acts as a predictive indicator of future revenue. While metrics like Monthly Recurring Revenue (MRR) and overall revenue reflect past performance, LVR offers insights into future growth by highlighting trends in lead generation. By tracking LVR, startups can understand their market traction, evaluate the effectiveness of their marketing strategies, and make informed decisions to drive future growth. For example, if a startup had 200 qualified leads last month and 250 this month, the LVR would be calculated as follows: LVR = (250−200) / 200 x 100 = 25% This 25% increase indicates a positive trend in lead generation, suggesting that the startup’s marketing and sales efforts effectively attract more potential customers. LVR helps startups predict future sales growth, assess their current marketing strategies, and make data-driven decisions to optimize their lead-generation processes. Tracking LVR regularly allows founders to stay ahead of the curve, ensuring sustained growth and success. Lead Velocity Rate vs. Customer Lifetime Value (CLV) LVR and Customer Lifetime Value (CLV) are both critical metrics for startups, but they serve different purposes and provide distinct insights. Lead Velocity Rate (LVR) measures the growth rate of qualified leads over a specific period, typically on a month-over-month basis. It calculates the percentage increase in the number of leads that meet predefined criteria for quality, such as those who have shown a strong interest in the product or service. LVR is a forward-looking metric, offering predictive insights into future revenue potential by indicating how effectively a startup is generating new leads. Essentially, it helps startups understand the momentum of their lead generation efforts and anticipate future sales growth. Customer Lifetime Value (CLV), on the other hand, assesses the total revenue a customer is expected to generate over the entire duration of their relationship with a business. It considers the average purchase value, purchase frequency, and customer lifespan to estimate the overall financial contribution of a customer. CLV is a backward-looking metric that focuses on the value derived from existing customers, providing insights into customer retention, satisfaction, and long-term profitability. It helps startups understand the financial impact of their customer base and make strategic decisions regarding customer acquisition and retention efforts. Why Lead Velocity Rate is an Important Metric for Startups LVR is one of the most important metrics for startups to track because it provides a clear and actionable insight into a company’s growth trajectory. Unlike historical metrics such as MRR and overall revenue, LVR is a forward-looking indicator that measures the growth of qualified leads over time. This makes it a crucial tool for predicting future revenue and assessing the effectiveness of marketing strategies. Lead Velocity Rate is not just a metric; it is a vital tool that enables startups to predict growth, optimize marketing efforts, and secure investor interest. By tracking LVR regularly, startups can ensure they are on the right path to sustained growth and success. Measuring Growth Momentum Lead Velocity Rate provides a clear and quantifiable measure of a startup's growth momentum by tracking the increase in qualified leads over time. This metric allows startups to see how well their lead generation efforts are working, offering a tangible indicator of market traction. By regularly monitoring LVR, startups can identify trends in lead growth, adjust their marketing strategies, and ensure they are continually attracting new potential customers. A rising LVR indicates that the startup’s efforts are translating into more qualified leads, which is a strong sign of growing market interest and business momentum. Predictive Power LVR is a powerful leading indicator of future revenue and business performance. Unlike historical metrics, which only show what has already happened, LVR provides a forward-looking perspective by measuring the growth of new leads. This allows startups to predict future sales more accurately, as an increasing LVR suggests a robust pipeline of potential deals. By understanding and leveraging LVR, startups can forecast their revenue more effectively, align their sales and marketing efforts with anticipated growth, and make proactive decisions to sustain or accelerate their upward trajectory. Financial Health Assessing the financial health of a startup is crucial for long-term success, and LVR plays a key role in this evaluation. A high LVR indicates that a startup is successfully generating a growing number of qualified leads, which is essential for sustaining revenue growth. This metric helps startups understand whether their lead generation strategies are effective and whether they have a strong foundation for future financial stability. By tracking LVR, startups can ensure they are building a healthy pipeline that supports continuous revenue generation and overall business health. Investor Confidence LVR serves as a powerful tool for attracting investors by demonstrating that a startup is on an upward growth trajectory. Investors look for startups with strong growth potential, and a consistently increasing LVR is a clear indicator of this. It shows that the startup is effectively generating new leads and has a promising outlook for future revenue. By presenting a high LVR, startups can enhance their credibility and appeal to investors, showcasing their ability to grow and succeed in a competitive market. This metric can significantly boost investor confidence and increase the likelihood of securing funding. Related resource: Why Revenue Per Lead is Really Important to Track How to Calculate Lead Velocity Rate Calculating LVR is straightforward and provides valuable insights into your startup’s growth potential. Understanding how to measure LVR enables startups to track the effectiveness of their lead-generation strategies and predict future sales. The process involves comparing the number of qualified leads from one month to the next, clearly showing how well your marketing and sales efforts are performing. By consistently calculating LVR, startups can make informed decisions to optimize their growth strategies and ensure sustained success. Lead Velocity Rate Formula The formula for calculating Lead Velocity Rate is simple and easy to apply. Here’s the basic formula: LVR = (Number of Qualified Leads This Month − Number of Qualified Leads Last Month) / Number of Qualified Leads Last Month × 100 To illustrate, if a startup had 200 qualified leads last month and 250 this month, the calculation would be: LVR = (250 − 200) / 200 × 100 = 25% This 25% increase in qualified leads indicates a positive trend in lead generation, suggesting that the startup’s efforts to attract potential customers are effective. By regularly calculating and monitoring LVR, startups can track their growth momentum, anticipate future sales, and refine their marketing strategies to maximize lead generation. Related resource: Developing a Successful SaaS Sales Strategy Challenges and Considerations for Tracking LVR While Lead Velocity Rate is an invaluable metric for startups, accurately tracking and utilizing it involves overcoming several challenges and considerations. Ensuring the reliability of LVR requires a focus on data accuracy, timeliness, and a holistic evaluation of metrics. Understanding these factors is essential for leveraging LVR effectively and making informed strategic decisions. Data Accuracy and Consistency LVR relies heavily on the accuracy and consistency of data. Accurate LVR calculations depend on precise and complete data regarding the number of qualified leads. Any inaccuracies or inconsistencies in data collection can skew LVR results, misrepresenting a startup's growth trajectory. Therefore, startups must implement rigorous data collection and validation processes to ensure that the information used for LVR calculations is reliable and consistent over time. Timeliness of Data Timely data collection and reporting are crucial for accurate LVR measurements. LVR calculations require up-to-date data on qualified leads to accurately reflect the current state of lead generation. Data collection and reporting delays can result in outdated or irrelevant LVR calculations, which may not align with real-time decision-making needs. Startups must establish efficient data collection systems and workflows to ensure LVR calculations are based on the most current available data. Holistic Metrics Evaluation While LVR is a powerful metric, it should not be viewed in isolation. LVR should be considered alongside other KPIs such as Customer Acquisition Cost, Customer Lifetime Value, and Monthly Recurring Revenue for a comprehensive understanding of business performance. A holistic evaluation of these metrics provides a more complete picture of a startup's financial health, growth potential, and overall business performance. Balancing LVR with other KPIs allows startups to make more informed and strategic decisions. Related resource: Your Company’s Most Valuable Metric Secure Investor Interest with Visible Lead Velocity Rate is a critical metric for startups, providing valuable insights into growth momentum, future revenue potential, and overall financial health. By accurately calculating and consistently tracking LVR, startups can measure their lead generation effectiveness, predict business performance, and attract investor confidence. Addressing challenges related to data accuracy, timeliness, and holistic metrics evaluation ensures that LVR serves as a reliable and powerful tool for driving strategic decisions. To maximize the benefits of LVR and other key performance indicators, consider using Visible’s all-in-one platform to track and visualize your startup’s metrics - create your account here! We want to hear from you. What is your Most Valuable Metric? Tell us here and we will share the results with the contributors! Want to be alerted of our new blog posts? Subscribe to our email list. Some more great posts about LVR http://saastr.com/2012/12/12/why-lead-velocity-rate-lvr-is-the-most-important-metric-in-saas http://www.revenify.com/important-metric-saas-lead-momentum-description-lead-velocity http://www.referralsaasquatch.com/how-to-calculate-saas-growth

In the fast-paced world of startups, guidance from those who’ve been through it all can be a game-changer. Having a mentor who understands the unique challenges of entrepreneurship can bring fresh insights, help avoid common pitfalls, and offer invaluable support. But is a mentor right for your startup? This article explores the key benefits of mentorship, factors to consider when choosing a mentor, and practical steps to create a strong mentoring relationship. Whether you’re seeking a sounding board or strategic advice, discovering how the right mentor can impact your journey is just a few scrolls away. What Is a Startup Mentor? A startup mentor is an experienced professional who guides, advises, and supports founders as they navigate the complexities of building a business. Unlike advisors or investors, who may have a more formal, stake-based relationship, mentors typically offer their insights out of a genuine interest in helping the founder grow and succeed. Their role can encompass everything from strategic advice and problem-solving to emotional support, often acting as a sounding board for new ideas and challenges. There are various types of startup mentors, each bringing unique strengths to the relationship. Industry-specific mentors offer deep knowledge about the market and competitive landscape, helping founders anticipate trends and avoid pitfalls. Functional mentors specialize in key areas like marketing, finance, or operations, guiding founders through tactical challenges. These are just a few examples of the types of startup mentors, each bringing different strengths and focus areas: Industry Mentors- Experts with deep knowledge in a specific industry or sector, guiding startups on industry trends, market demands, and unique challenges. Technical Mentors- Often with a background in product development, engineering, or technology, they help founders tackle technical challenges, improve product offerings, and navigate tech-related decisions. Business Strategy Mentors- These mentors focus on strategic areas like business model development, scaling, and revenue growth, helping founders shape a sustainable business. Leadership and Personal Development Mentors- Aimed at helping founders grow as leaders, these mentors emphasize personal development, team management, and effective communication. Should Your Startup Have Mentors? Every startup faces a unique set of challenges, and having a mentor can provide the outside perspective and expertise needed to navigate these obstacles effectively. Mentors bring a level of experience that founders may lack, especially in the early stages, helping avoid common mistakes and encouraging strategic thinking. A mentor’s guidance can be especially valuable during critical moments, such as securing initial funding, building a product, or entering new markets. Mentors often also act as sounding boards for ideas, helping founders refine their vision and validate assumptions. This external insight is vital for startups looking to grow thoughtfully and sustainably. While building a business can feel isolating, having a mentor ensures founders don’t have to face challenges alone, making mentorship an invaluable resource for any startup aiming for long-term success. Related resource: Startup Leaders Should Have Mentors. Here’s How to Find One. Benefits of Having a Mentor for Your Startup Mentorship can be a transformative asset for startup founders, offering insights and support beyond day-to-day operations. While building a business requires resilience and resourcefulness, the right mentor can help founders unlock new opportunities, avoid common pitfalls, and achieve their goals faster. Related resource: Startup Mentoring: The Benefits of a Mentor and How to Find One Below, we’ll explore how mentorship can provide unique advantages: Access to Knowledge and Experience One of the most significant benefits a mentor offers is access to a wealth of knowledge and experience that can help founders make informed decisions and avoid costly mistakes. Mentors have typically faced similar career challenges, allowing them to provide insights that can guide founders through complex or unfamiliar situations. Whether navigating the intricacies of scaling a team, developing a product strategy, or understanding market dynamics, mentors offer firsthand knowledge that books or courses can’t always provide. By sharing their past successes and failures, mentors empower founders to see beyond immediate obstacles and think strategically about long-term goals. This transfer of experience can save startups time and resources, allowing founders to focus their energy on high-impact decisions and proactive problem-solving. With a mentor’s guidance, founders are better equipped to tackle challenges with confidence and insight. Expanding Network and Connections A mentor’s network can be one of the most valuable resources a founder gains access to. Many mentors have built strong connections throughout their careers, spanning various industries, fields, and expertise. By introducing founders to relevant contacts, mentors can open doors to partnerships, investors, and potential clients that might otherwise be out of reach. This expanded network can accelerate a startup’s growth by connecting founders with key players who can help them achieve their goals. These introductions often carry a level of trust that wouldn’t exist with cold outreach. A mentor’s endorsement can provide credibility, especially for early-stage startups seeking funding or high-profile partnerships. Through these connections, founders gain business opportunities and access to new perspectives and ideas that enrich their approach to growth and innovation. Accountability and Objective Feedback A mentor's most impactful role is that of a trusted advisor who provides accountability and objective feedback. Unlike friends or family, who may hesitate to offer critical insights, a mentor’s goal is to push founders toward growth- even if it means delivering tough feedback. This objectivity helps founders stay grounded, focused, and aligned with their goals, especially when it’s easy to get distracted by day-to-day tasks or minor setbacks. Mentors help keep founders accountable by encouraging them to set measurable goals and track their progress. This accountability can motivate founders to stay on course, push past challenges, and continuously improve. With honest, unbiased feedback from someone with a vested interest in their success, founders can make more balanced decisions, identify areas for improvement, and sharpen their strategies, ultimately driving their startup closer to success. Increased Confidence and Personal Growth Mentors play a critical role in boosting founders’ confidence and supporting their journey of personal growth. For many founders, the entrepreneurial path can be filled with self-doubt and uncertainty, particularly when facing major challenges or making high-stakes decisions. Mentors help build confidence by offering encouragement, reinforcing a founder’s strengths, and providing reassurance from a place of experience. Knowing that someone who has been through similar challenges believes in their abilities can be incredibly empowering. Beyond boosting confidence, mentors foster personal growth, helping founders become more effective leaders. They can provide insights into communication, decision-making, and team management, equipping founders with skills essential for leading a startup. Through this guidance, founders often gain a deeper understanding of themselves and their leadership style, allowing them to lead their teams with greater empathy, resilience, and strategic vision. Key Considerations When Choosing a Mentor While having a mentor can be incredibly beneficial, not every mentor fits every founder. Choosing the right mentor requires careful consideration, as the relationship can profoundly impact both the founder’s personal development and the startup’s success. From aligning values to understanding a mentor’s availability and potential conflicts of interest, there are several factors to weigh when selecting someone to guide your journey. By evaluating these considerations, founders can find a mentor who truly complements their vision and offers the support they need to thrive. Alignment of Values and Vision Choosing a mentor whose values and vision align with the founder’s goals is crucial for creating a productive and harmonious mentoring relationship. A mentor with similar beliefs and long-term aspirations will more likely provide advice that resonates with the founder’s approach to building their startup. This alignment promotes a shared understanding of success and ensures that the mentor's guidance will support, rather than conflict with, the founder’s goals. When values and vision are aligned, founders and mentors can work toward growth with a unified approach, avoiding misunderstandings and conflicting advice. For instance, if a founder prioritizes sustainable growth while the mentor advocates for rapid scaling, the misalignment may create tension or lead to misguided decisions. By selecting a mentor who shares their outlook, founders can foster a supportive relationship where advice feels relevant, actionable, and in tune with their vision. Level of Involvement Assessing a mentor’s level of involvement is essential to ensure they can provide the time and support needed to make a meaningful impact. Every mentor has varying commitments and may be able to offer different levels of engagement, from occasional check-ins to more hands-on guidance. Founders should clarify upfront how frequently the mentor is available for meetings, whether they can provide regular feedback, and how involved they are willing to be in day-to-day challenges or major decisions. A mentor’s involvement should align with the startup’s needs and growth stage. Early-stage startups may benefit from frequent, in-depth mentoring to tackle foundational issues, while more established businesses may only require periodic guidance. Understanding these expectations early on helps founders build a realistic and sustainable mentoring relationship where both parties are committed to a level of engagement that drives real progress. Potential Conflicts of Interest When selecting a mentor, it’s essential to consider potential conflicts of interest that could impact the mentor’s objectivity or commitment to the startup. A conflict of interest may arise if the mentor has ties to competitors, is an advisor to other startups in the same space, or has financial interests that could influence their advice. Such conflicts can hinder a mentor’s ability to provide impartial guidance, potentially leading to biased or compromised decisions. To ensure the relationship remains transparent and mutually beneficial, founders should discuss potential conflicts openly before beginning the mentorship. Addressing these concerns upfront helps establish trust and allows both parties to assess whether the mentorship can be productive and objective. With a clear understanding of each other’s commitments, founders can feel confident that the mentor’s advice is in the best interest of their startup. Time and Financial Commitments Discussing time and financial commitments upfront is crucial for setting clear expectations in a mentor-mentee relationship. Mentorship often requires significant time, from regular meetings to hands-on support during critical phases of the startup’s growth. Founders should work with their mentor to define how much time both parties are willing and able to commit, ensuring that the mentor’s involvement aligns with the startup’s needs. In some cases, financial commitments may also come into play, especially if the mentor is expected to provide more intensive support or if there are costs associated with travel or resources. Establishing these expectations early on helps avoid misunderstandings and ensures that both parties are on the same page regarding any financial contributions or compensation. By proactively addressing time and financial commitments, founders can foster a strong, transparent relationship that supports both the mentor’s and the startup’s goals. How to Build a Successful Mentoring Relationship Establishing a successful mentoring relationship goes beyond simply finding the right mentor- it requires effort, structure, and clear communication from both sides. Once a mentor has been chosen, laying a solid foundation for the relationship is essential to ensure it remains productive and mutually beneficial. By setting clear goals, maintaining regular communication, and creating a feedback loop, founders can make the most of their mentor’s guidance and build a partnership that supports their growth and success. Below are some key steps to help founders cultivate a lasting, impactful mentorship. 1. Set Clear Goals Defining clear objectives for the mentorship relationship is essential for making the partnership effective and focused. When founders set specific goals, they and their mentor have a roadmap to follow, ensuring their efforts are aligned and measurable. These objectives might include achieving a certain business milestone, gaining specific skills, or navigating particular challenges within the startup’s growth journey. Having well-defined goals helps to keep each mentorship session productive, as both parties know what they’re working toward. It also allows the mentor to tailor their advice and resources to meet these goals, making their guidance more relevant and impactful. Setting goals at the start of the mentorship and periodically reviewing progress ensures that both the founder and mentor remain engaged and can celebrate achievements along the way. 2. Establish Regular Communication Regular communication is the backbone of a successful mentoring relationship. By setting a consistent schedule for check-ins and updates, founders ensure that the mentorship remains active and focused on their evolving needs. These scheduled meetings provide dedicated time to discuss challenges, review progress, and adjust goals, helping both mentor and mentee stay aligned and engaged. Establishing a communication rhythm- whether it’s weekly, bi-weekly, or monthly- also fosters accountability, as both parties commit to preparing for and participating in each session. This structured approach prevents the relationship from becoming sporadic or one-sided and ensures that the mentor can provide timely, relevant advice. Clear communication routines help make the most of the mentor’s support, creating a steady flow of insights that keep the founder moving forward. 3. Feedback Mechanism Creating channels for constructive feedback is essential for a mentorship to thrive. A strong feedback mechanism allows both mentor and mentee to share their perspectives openly, ensuring that the relationship remains productive and mutually beneficial. By establishing a process for feedback, founders can receive actionable insights on their progress, while mentors can offer honest advice on areas for improvement. Encouraging two-way feedback also helps mentors adjust their guidance to better meet the founder’s needs. For instance, if a particular approach isn’t resonating, the founder can communicate this, allowing the mentor to adapt their style or focus. Regular, constructive feedback builds trust and respect, fostering a safe space for growth where both parties feel comfortable addressing successes, challenges, and new ideas openly. Strengthen Your Investor Relationships with Visible Mentorship can be a powerful asset for startup founders, offering guidance, expanding networks, and fostering personal growth. Founders can build a mentoring relationship that truly supports their journey by choosing the right mentor, setting clear goals, and maintaining open communication. However, mentorship is only one part of a founder’s success toolkit. For startups looking to strengthen their investor relationships, Visible lets you track key metrics, send investor updates, and track the status of your next fundraise all in one place. Give it a free try for 14 days here. Related resource: A Founder’s Guide to Accelerators Funding Startups in 2024

When preparing to raise capital, it’s not just your product or market that investors will scrutinize- your internal operations will be in the spotlight too. Operational due diligence is critical in this process, helping investors evaluate your company’s ability to scale and sustain growth. This article will walk you through everything you need to know about operational due diligence and how to get your startup ready to impress investors, from financial management to optimizing internal processes and ensuring compliance. What Is Operational Due Diligence? Operational due diligence is the process investors use to evaluate a company’s internal operations, systems, and controls before making an investment. Unlike financial due diligence, which focuses on the numbers, operational due diligence takes a closer look at how a company runs on a day-to-day basis. It helps investors assess potential risks, operational efficiency, and the company’s capacity to scale. By examining everything from business processes to organizational structure, investors can better understand whether your startup is well-positioned to deliver sustained performance over time. Investment Due Diligence vs. Operational Due Diligence When preparing for investor evaluations, it's important to understand the distinct roles that investment due diligence and operational due diligence play in the decision-making process. Related resource: Types of Venture Capital Funds: Understanding VC Stages, Financing Methods, Risks, and More Investment Due Diligence primarily focuses on your startup's financial aspects. This includes analyzing financial statements, revenue models, profitability, market valuation, and potential return on investment. Investors use this information to assess your company's financial health and growth potential, ensuring that the numbers align with their investment criteria and risk tolerance. Operational Due Diligence, on the other hand, delves into your business's internal workings. It examines your company's operations, systems, processes, and controls to evaluate efficiency, scalability, and risk management. This type of due diligence assesses how well your startup is managed daily, including areas like supply chain management, technology infrastructure, organizational structure, and compliance with legal and regulatory standards. While investment due diligence answers the question, "Is this a financially sound investment?" operational due diligence addresses, "Can this company operate efficiently and sustain growth?" Both forms are crucial for investors to make informed decisions, ensuring that your startup is financially viable and well-equipped to handle future challenges and opportunities. Related resource: Top VCs Driving Transformation in Supply Chain and Logistics Why Investors Conduct Operational Due Diligence Investors conduct operational due diligence to understand how a startup functions beyond its financial statements. This process is essential for identifying potential risks, ensuring operational efficiency, and verifying the company’s ability to sustain long-term performance. By evaluating key areas such as internal processes, management practices, and organizational structure, investors can uncover weaknesses that could pose risks to future growth. Operational due diligence also helps investors confirm that your business is scalable, compliant with regulations, and well-equipped to navigate challenges. Ultimately, it ensures that the operational side of your startup aligns with its financial projections, reducing uncertainties and fostering confidence in your ability to deliver on promises and drive long-term success. Related resource: What to Include in a Data Room for Investors: Essential Guide for Startups Key Areas to Address in Operational Due Diligence Investors will closely examine several critical areas to assess your startup's overall health and efficiency when preparing for operational due diligence. Ensuring that these areas are well-organized and optimized can significantly enhance investor confidence. Below are the key areas investors will focus on during the operational due diligence process: Business operations and processes: Investors will evaluate your day-to-day business activities to ensure they are efficient, scalable, and capable of supporting growth. Financial management and controls: A detailed review of your financial controls, reporting, and cash flow management helps investors determine the accuracy and reliability of your financial data. Team and organizational structure: Investors want to see a well-defined organizational structure with a competent management team capable of executing the business plan and adapting to future challenges. Legal and regulatory compliance: Your startup must adhere to industry regulations, data privacy laws, and legal obligations. Investors will check for any potential legal risks that could disrupt your operations. Technology and systems: The technology and systems that power your startup must be scalable, secure, and efficient to meet future demands. Investors will assess the reliability and flexibility of your tech infrastructure. Data and documentation: Well-organized documentation—such as operational workflows, financial reports, and contracts—demonstrates your company’s transparency and readiness for investor scrutiny. Customer and client relationships: Investors will also examine the strength and sustainability of your customer relationships, looking for evidence of customer satisfaction, retention, and growth potential. How to Be Prepared for Operational Due Diligence Being well-prepared for operational due diligence can make a significant difference in securing investor confidence. It’s not just about having solid financials; investors want to see that your startup is organized, efficient, and ready for growth. By proactively addressing critical areas like documentation, processes, and compliance, you’ll be better positioned to showcase your startup’s potential. Below are several actionable steps to ensure your business is fully prepared when investors start digging into your operations. 1. Organize and Update Key Documentation One of the most critical steps in preparing for operational due diligence is organizing and updating all key documentation. Investors will want to see clear, accurate records that reflect the inner workings of your business. Start by ensuring that your financial statements are up-to-date and thoroughly reviewed for accuracy. Additionally, prepare detailed operational workflows that outline how day-to-day tasks are handled and how different departments interact. Make sure your organizational charts are current and show clear roles and responsibilities within the team. Key contracts, such as those with major clients or vendors, should be readily available and in good standing. Finally, gather all vendor agreements and any other crucial documents that reflect the company’s obligations and partnerships. By having this documentation well-organized in advance, you’ll save time and instill confidence in investors. 2. Evaluate and Optimize Internal Processes Investors will examine your startup's operations closely, making it essential to review and optimize your internal processes before due diligence begins. Start by assessing areas like supply chain management, ensuring that workflows are efficient, cost-effective, and scalable. Look for bottlenecks or inefficiencies in sourcing, producing, and delivering your resources. Next, evaluate your technology systems, ensuring that they are up-to-date, secure, and capable of supporting business growth. Whether it’s customer management software or product development tools, your technology should enhance rather than hinder operations. Finally, review your HR processes, including recruitment, onboarding, and performance management, to ensure they are well-structured and support a healthy, productive work environment. By optimizing these key internal processes, you’ll demonstrate to investors that your startup is well-positioned for future success. 3. Demonstrate Strong Financial Controls Your startup must demonstrate strong financial controls to instill confidence in investors. This begins with ensuring that your financial reporting is accurate and current. Investors will closely examine your cash flow statements, so it’s essential to provide clear documentation of how money is being managed within the company, from revenues to expenses. Additionally, effective expense tracking is key. Make sure that all spending is documented, categorized, and aligned with your budget. Investors will want to see that your startup maintains discipline in how it allocates resources. Establish and follow a solid budgeting process that reflects realistic growth and operational costs. Having these financial controls in place not only demonstrates that your startup is well-managed but also assures investors that their capital will be responsibly handled. 4. Showcase Scalability Readiness Investors want to know that your startup has the potential to grow without significant operational disruptions, making it crucial to demonstrate your scalability readiness. Highlight the systems, technology, and processes that are designed to expand alongside your business. This includes your tech infrastructure, which should be flexible enough to handle increased demand, whether it’s managing more users, higher transaction volumes, or expanding into new markets. Additionally, emphasize your operational flexibility—whether your processes can easily adapt to growth, such as scaling up production, hiring more staff, or optimizing distribution channels. By showcasing your startup’s ability to scale efficiently, you can assure investors that your business is prepared to meet future challenges and opportunities without compromising performance. 5. Prepare Your Team for Involvement During operational due diligence, investors will likely want to meet key team members to better understand their roles and how they contribute to the company’s success. It’s important to ensure that your team is prepared to confidently explain their responsibilities, key achievements, and how their work supports the startup’s overall growth and vision. Each team member should be able to clearly articulate how their role fits into the broader strategy, whether they oversee product development, manage customer relationships, or handle financial operations. Encourage team members to familiarize themselves with recent successes and upcoming initiatives so they can speak knowledgeably about the company’s direction. By preparing your team for involvement in this process, you’ll demonstrate to investors that you have a capable and aligned workforce ready to execute the business plan. 6. Ensure Regulatory and Legal Compliance Investors will want to confirm that your startup is fully compliant with relevant industry regulations, data privacy laws, and legal obligations. This includes adherence to frameworks like GDPR, HIPAA, or any other industry-specific regulations that may apply to your business. Ensuring compliance demonstrates that your startup can operate legally and ethically in its market, reducing the risk of future legal issues. Prepare documentation that verifies compliance, such as regulatory certificates, privacy policies, and any legal agreements with customers, vendors, or partners. This readily available information will reassure investors that you’ve taken the necessary steps to mitigate legal risks and are committed to maintaining a strong ethical standing. 7. Utilize Technology for Data Management and Reporting Leveraging the right technology is essential for effectively managing and presenting operational metrics to investors. Tools like Visible allow you to seamlessly track and report critical data in a clear, organized manner. These platforms make creating customized reports highlighting your startup’s performance easier across key operational areas, such as financials, customer growth, and operational efficiency. By utilizing technology to streamline data management, you can ensure that your metrics are accurate, up-to-date, and accessible at all times. This not only helps in preparing for due diligence but also enhances transparency with investors, allowing them to assess your startup’s potential easily and track progress over time. Manage Investor Relations Easily with Visible Preparing your startup for operational due diligence requires careful attention to detail across several critical areas, from financial controls and compliance to scalability and team readiness. By proactively organizing your documentation, optimizing internal processes, and leveraging technology, you’ll be ready to present your business confidently to investors. Visible can help simplify the process by providing data rooms, financial tracking, and investor relations management, ensuring you’re ready when due diligence begins. Give it a free try for 14 days here. Related resource: Deal Flow: Understanding the Process in Venture Capital

In an era where the effects of climate change are being felt more acutely every day, the need for bold, innovative solutions has never been greater. Climate tech startups are at the forefront of this revolution, creating technologies that address some of the world’s most pressing environmental challenges. These leading climate startups are not only pushing the boundaries of sustainable innovation but also reshaping industries by offering practical, scalable solutions to reduce carbon footprints and foster environmental resilience. From carbon capture technology to renewable energy storage and sustainable agriculture, these companies are addressing critical issues head-on. This article highlights 15 innovative climate tech companies that are making significant strides in combating climate change. Whether they are developing groundbreaking technologies for cleaner energy or devising new ways to sequester carbon, these startups represent the future of green innovation. Related Resource: Leveraging Innovation and Sustainability: A Guide for Clean Tech and Climate Tech Founders Emerging Climate Tech Trends Impacting Startups in 2024 As climate tech evolves, several trends are directly shaping the trajectory of climate tech companies and their ability to address environmental challenges. These trends reflect not just advancements in technology but also the shifting demands within the industry, influencing how startups scale, secure funding, and innovate. Below are the key trends influencing climate tech companies in 2024. Carbon Capture and Sequestration Technologies Carbon capture and sequestration (CCS) is rapidly becoming a core focus for many climate tech startups, particularly those aiming to reduce industrial carbon footprints. Startups working on direct air capture (DAC) technologies are gaining significant traction as industries and governments seek scalable solutions to meet global emissions reduction goals. As funding for CCS increases, companies within this space are seeing more opportunities for partnerships with heavy industries like oil and gas, cement, and steel. However, the cost of these technologies remains a challenge, pushing climate tech companies to innovate in ways that make CCS more affordable and efficient for widespread adoption. Long-Duration Energy Storage The transition to renewable energy is pushing climate tech companies to develop long-duration energy storage solutions that go beyond traditional battery technology. Energy storage startups are now at the forefront of enabling a renewable energy grid that can handle fluctuations in solar and wind energy. This trend is driving significant investment into companies creating vanadium redox flow batteries, iron-air batteries, and other next-gen storage solutions. For these startups, the ability to secure contracts with energy utilities and prove the scalability of their technology will be key to future success. The demand for reliable energy storage is expected to grow exponentially as more countries mandate higher percentages of renewable energy in their grids. Sustainable Agriculture and Food Tech Climate tech companies focused on sustainable agriculture are seeing rising interest from both investors and governments as the agriculture sector faces mounting pressure to reduce emissions. Startups developing technologies like vertical farming, precision agriculture, and agroforestry are helping traditional farms and food producers become more resilient to climate risks. For example, companies offering precision agriculture solutions can optimize water usage and reduce chemical inputs, making farming more sustainable. This trend is particularly relevant for climate tech startups targeting regions prone to droughts and extreme weather, as their solutions offer tangible ways to mitigate the effects of climate change on food production. AI-Driven Environmental Insights The integration of AI into climate tech is transforming how companies gather and leverage environmental data, offering them a competitive edge in developing smarter, more targeted solutions. Startups providing AI-driven platforms that analyze climate risks, predict environmental shifts, and optimize resource use are seeing increased demand from sectors like renewable energy, real estate, and agriculture. For climate tech companies, this trend offers a unique opportunity to position themselves as data-driven innovators, capable of helping businesses and governments adapt to changing environmental conditions. Companies specializing in geospatial AI are especially well-positioned to attract funding as they provide essential insights for industries looking to mitigate environmental risks. Key Challenges Facing Climate Tech Startups While the climate tech sector is thriving, climate tech startups face several significant challenges that can hinder growth and scalability. From securing adequate funding to navigating complex regulatory landscapes, these barriers are unique to companies striving to create sustainable solutions. Below are some of the climate startup challenges that founders need to consider as they work toward building impactful, scalable businesses. High Research and Development (R&D) Costs One of the primary barriers for climate tech companies is the high cost of research and development. Unlike many software startups that can iterate quickly and cost-effectively, climate tech solutions often require significant investment in hardware, materials, and testing facilities. Whether developing new carbon capture technologies or refining energy storage systems, climate startups need extensive capital to move from concept to commercialization. This financial hurdle can slow down progress, particularly for startups without access to substantial early-stage funding or grant support. Navigating Regulatory Challenges Regulatory hurdles are another critical challenge for climate tech startups. Governments and regulatory bodies are increasingly enacting policies aimed at reducing carbon emissions, but the path to compliance can be complex. Startups must navigate a patchwork of regulations, often varying by region and industry. For example, renewable energy companies may face permitting delays, while those in carbon capture or waste management might contend with strict environmental standards. This regulatory uncertainty can deter investors and slow down the deployment of new technologies, making it a significant barrier to success. Scaling Across Sectors Climate tech solutions often require cross-sector partnerships to scale effectively. A company developing energy storage technology, for example, may need to partner with both energy utilities and hardware manufacturers to bring its product to market. Likewise, startups focusing on sustainable agriculture might need collaborations with large-scale farming operations or governments to deploy their technologies at scale. Establishing these partnerships can be difficult for early-stage startups, especially those without a proven track record or established industry relationships. The need for coordination across sectors and industries is a major challenge that climate startups must overcome to ensure long-term success. Related resource: Top 10 VCs Fueling Innovation in Transportation Securing Sufficient Funding While investor interest in climate tech is growing, many climate startups still struggle to secure sufficient funding, particularly during the early stages. Venture capital firms often look for quick returns, but many climate tech solutions require long timelines before reaching commercialization. Startups in this space may also face competition from other sectors for investor attention. The need to demonstrate both environmental and financial impact adds another layer of complexity when raising capital. As a result, climate tech startups often need to explore alternative funding sources such as government grants, impact investors, and green bonds to bridge the gap. 15 Climate Tech Startups to Watch in 2024 1. CarbonCapture CarbonCapture stands out in the climate tech sector with its innovative approach to direct air capture (DAC) technology. The company's systems, which use molecular sieves and renewable energy sources, are designed for adaptability. These machines not only remove CO2 from the atmosphere but also capture clean water distilled from the air, a dual functionality that enhances both environmental and practical value. The potential impact of this technology is substantial, offering a scalable and efficient solution to reduce atmospheric CO2 levels. This approach is particularly promising in the fight against global warming and climate change. Year founded: 2019 Location: Pasadena, California Funding amount/type: The company has raised a total of $35 million over three funding rounds. Funding series: The most recent, a Series A round completed in September 2023. Major investors: Climate Pledge Fund, Ethos Family Office, Rio Tinto, Idealab Studio, Idealab X, and Marc Benioff’s TIME Ventures. 2. Astraea Astraea is a significant player in the climate tech sector, particularly with its innovative use of data analytics for environmental insights. The company has developed an AI platform for geospatial data, which includes products like EarthAI Site and EarthAI Enterprise. These tools offer vital insights using imagery, analytics, and dashboards, catering to a variety of industries such as real estate, renewable energy, conservation finance, and agriculture. Astraea's EarthAI platform is particularly notable for its ability to aid in understanding climate patterns and their impacts, leveraging AI and geospatial data to provide actionable insights​​. Year Founded: 2016 Location: Charlottesville, Virginia, USA​​ Funding Amount/Type: Astraea has raised a total of $16.5 million over four funding rounds​​. In a recent development, the company raised $6.5 million in Series A funding​​. Funding Series: The latest funding, completed on July 21, 2022, was a Series A round​​. Major Investors: The Series A funding was co-led by Aligned Climate Capital and Carbon Drawdown Collective, with other participants including CAV Angels, Tydall Investment Partners, and the University of Virginia Seed Fund​​. Astraea's role in climate tech is particularly exciting due to its innovative use of AI and satellite data to provide critical environmental insights. This approach is essential for addressing complex climate challenges, enabling better decision-making and strategy formulation in various sectors. The support and funding received from notable investors reflect confidence in Astraea's potential to make a meaningful impact in the field of climate technology. 3. CellCube CellCube, known for its innovative energy storage solutions, is making significant strides in the field of climate tech with its focus on vanadium redox flow batteries (VRFBs). As a leader in sustainable, future-proof, and durable energy storage infrastructure, CellCube has emerged as one of the first and largest developers, manufacturers, and sellers of VRFBs globally. Their modular CellCube batteries are designed to store large electricity capacities efficiently for 4 to 24 hours, meeting the highest safety standards and boasting a lifecycle of 20 to 30 years. This technology is crucial for enabling the storage of energy from intermittent renewable sources like solar and wind, thus facilitating their integration into the energy grid and enhancing the sustainability of energy systems​​​​. CellCube, initially known as Enerox, has evolved over the last ten years from a specialized product developer to a leading provider of comprehensive energy storage solutions. With more than 140 systems installed worldwide, they have established themselves as a key player in the industry​​​​. Year Founded: Not explicitly stated, but with 20 years of research and development, it suggests a founding date around 2002-2003​​. Location: Denver, Colorado, USA​​. Funding Amount/Type: The company arranged a non-brokered private placement financing for gross proceeds of CDN $10 million​​. Major Investors: Bushveld Minerals increased its investment in CellCube to 27.6%, as part of its energy storage business strategy​​​​. CellCube's significance in the climate tech field is highlighted by its role in enhancing renewable energy integration. Their VRFBs provide a reliable and scalable solution for energy storage, addressing one of the most significant challenges in the shift towards renewable energy sources. By enabling more efficient storage and use of renewable energy, CellCube contributes significantly to reducing reliance on fossil fuels and combating climate change. Their progress and the growing investor interest underscore the critical role of energy storage technologies in achieving a sustainable future. 4. Jackery Jackery, a leader in the field of portable solar power solutions, was founded in 2012 in California, USA, by a former Apple battery engineer. The company is recognized for its innovative approach in developing portable solar power generators, solar panels, and other related products. Jackery's mission is to provide green energy solutions that are accessible to everyone, everywhere, particularly focusing on outdoor and emergency use scenarios. Their products, known for their efficiency and accessibility, cater to the needs of those requiring mobile power sources, whether off-grid or during power outages​​​​. Year Founded: 2012 Location: Fremont, California, USA​​ Funding information isn’t given for Jackery Jackery's innovation in portable solar power solutions is particularly exciting for the field of climate tech due to its contribution to sustainable energy accessibility. By providing efficient, portable solar generators and panels, Jackery plays a crucial role in enhancing the adoption of renewable energy sources. This is especially important in remote or disaster-prone areas where traditional power sources are unavailable or unreliable. Jackery's commitment to developing green energy solutions aligns with global efforts to reduce carbon emissions and mitigate the impacts of climate change. Their growth and the success of their products in the market underscore the increasing demand for portable and sustainable energy solutions. 5. CarbonCure CarbonCure, a pioneer in carbon sequestration within the concrete industry, has garnered significant attention for its innovative approach to reducing carbon footprints. Founded in 2011 by Robert Niven and headquartered in Halifax, Nova Scotia, CarbonCure's technology revolves around the injection of captured carbon dioxide into concrete, where it is permanently stored. This process not only utilizes CO2 but also enhances the strength of the concrete, presenting a dual benefit​​. The implications of CarbonCure's technology for the construction industry are profound. As concrete is one of the most widely used materials in construction, its production is also one of the largest sources of CO2 emissions globally. By integrating CarbonCure's technology, the construction industry can significantly reduce its carbon footprint, contributing to the global efforts against climate change. This technology offers a practical and scalable solution for carbon sequestration, aligning with the industry's growing focus on sustainability. Year Founded: 2011 Location: Halifax, Nova Scotia, Canada Funding Amount/Type: CarbonCure Technologies has raised a total of $97.36 million over 12 funding rounds, with the latest being a Series F round for $80 million on July 11, 2023​​​​​​. Major Investors: The company's investors include Sustainable Development Technology Canada, Innovacorp, GreenSoil Investments, Pangaea Ventures, Breakthrough Energy Ventures, Microsoft Climate Innovation Fund, BDC Capital, 2150, Mitsubishi Corporation, Carbon Direct, Taronga Ventures, and Amazon's Climate Pledge Fund​​. CarbonCure's technology is particularly exciting in the climate tech field due to its practical application in a widespread and traditionally high-emission industry. The ability to reduce the carbon footprint of concrete production and use while improving the material's quality represents a significant advancement in green construction practices. The company's successful funding rounds and the backing of major investors underscore the industry's recognition of the importance of sustainable solutions like CarbonCure's, indicating a promising future for this technology in global efforts to combat climate change. 6. Form Energy Form Energy, a Massachusetts-based technology company founded in 2017, is revolutionizing the field of climate tech with its advancements in long-duration energy storage systems. These systems are designed to enable a reliable and fully renewable electric grid year-round, addressing one of the major challenges in the transition to renewable energy. Form Energy's technology is crucial for maintaining grid stability and integrating renewable energy sources, as it allows for the storage and release of energy over extended periods, thus balancing supply and demand even when renewable sources are intermittent​​​​. Year Founded: 2017 Location: Boston, Massachusetts, US Funding Amount/Type: Form Energy has raised a significant amount of funding, with a $450 million Series E financing round announced in October 2022​​. This adds to their total funding, which had previously exceeded $350 million, reaching a valuation of $1.2 billion in mid-2021​​. Funding Series: The latest funding round was a Series E round​​. Major Investors: The Series E round was led by TPG’s global impact investing platform, TPG Rise, and included major investors such as GIC, Canada Pension Plan Investment Board (CPP Investments), ArcelorMittal, Bill Gates’ Breakthrough Energy Ventures, and others​​​​. Form Energy's long-duration energy storage technology is particularly exciting in the climate tech sector for its potential to transform how energy grids operate. By allowing for the storage of energy for days, rather than hours, this technology enables a more seamless integration of renewable energy sources like solar and wind, which are often variable in nature. This capability is crucial for reducing reliance on fossil fuels and achieving a more sustainable and resilient energy infrastructure. The company's focus on developing cost-effective and scalable energy storage solutions aligns with the growing global need for innovations that can support a fully renewable energy grid. The significant investment and support from major investors underscore the industry's recognition of the importance of long-duration energy storage and Form Energy's role in driving forward the transition to a cleaner, more sustainable energy future. 7. Klima Klima, a mobile application developed by Climate Labs GmbH, is revolutionizing the field of climate tech with its unique approach to personal carbon offsetting. Founded in 2019 by serial entrepreneurs Markus Gilles, Andreas Pursian-Ehrlich, and Jonas Brandau, Klima is headquartered in Berlin, Germany. The app's mission is to turn carbon neutrality into a mass movement, unleashing the power of individual action at scale. Klima allows users to measure, reduce, and offset their carbon footprint directly through the app, empowering individuals to contribute actively to climate change mitigation efforts​​. Year Founded: 2019 Location: Berlin, Germany Funding Amount/Type: Klima has raised a total of €15.8 million over three funding rounds, with the latest funding being raised on April 21, 2022, from a Series A round​​. The total funding amount is also reported as $18 million in another source, with a Series A round of $11 million raised on April 1, 2022​​. Funding Series: The latest funding round was a Series A round​​. Major Investors: Klima's investors include Christian Reber (co-founder and CEO of Pitch), Jens Begemann, Niklas Jansen (co-founder and managing director of Blinkist), e.ventures, HV Holtzbrinck Ventures, 468 Capital, HV Capital, Keen Venture Partners, Headline, and Blue Impact Ventures​​​​. Klima’s approach to climate change mitigation is particularly exciting in the field of climate tech because it emphasizes the impact of individual actions. By enabling users to track and offset their carbon footprint through everyday activities, Klima is making climate action accessible and actionable for the broader public. This approach not only raises awareness about personal environmental impacts but also provides a tangible way for individuals to contribute to global carbon reduction efforts. The startup's success in raising significant funding and attracting major investors reflects the growing interest in solutions that empower individuals to participate in climate action. Klima's innovative use of technology to facilitate personal carbon offsetting marks a significant step forward in engaging the public in climate change mitigation and underscores the potential for technology to play a transformative role in addressing environmental challenges. 8. Polarium Polarium, founded in 2014, is a Swedish company that has established itself as a key player in the lithium battery technology sector. The company focuses on providing smart lithium batteries designed to address power backup challenges in various sectors, including telecom, commercial, and industrial. Polarium's mission is to empower a sustainable world with innovative solutions for energy storage and energy optimization built on lithium-ion technology​​​​. Year Founded: 2014 Location: Sweden Funding Amount/Type: Polarium has raised a total of $273.9 million over 7 funding rounds​​. Another source reports the total funding as $250.19 million over 8 rounds​​. Funding Series: The latest funding was a Venture - Series Unknown round raised on September 4, 2023​​. Major Investors: The Swedish pension company Alecta, Formica Capital, Absolute Unlisted (part of the investment manager Coeli), AMF, Vargas, Roosgruppen, and Beijer Invest are among the key investors in Polarium​​. Polarium's innovations in lithium battery technology are significant for various reasons. First, these batteries offer a sustainable and efficient solution for energy storage and management, vital in sectors ranging from telecommunications to industrial applications. Second, Polarium's technology plays a critical role in the integration and optimization of renewable energy sources, contributing to the transition towards more sustainable energy systems. The startup is particularly exciting in the field of climate tech due to its focus on lithium-ion technology, which is crucial for the development of more efficient and sustainable energy storage solutions. This technology is essential for the scalability and effectiveness of renewable energy systems, as it allows for more efficient storage and distribution of energy generated from renewable sources. Polarium's success in raising significant funding and attracting major investors highlights the growing interest and demand for advanced energy storage solutions. Their contribution to the development of smart lithium battery technology positions them as a key innovator in the climate tech sector, driving forward the transition to a more sustainable and renewable energy future. 9. Infarm Infarm, a Berlin-based startup founded in 2013, is at the forefront of urban and vertical farming technologies. Their approach focuses on distributing "modular farms" to urban locations, promoting sustainable and local food production. Infarm's technology enables the growth of crops in a controlled, indoor environment, utilizing less space and resources compared to traditional farming methods. This innovative approach contributes to reducing the carbon footprint of food production and transportation by enabling local cultivation in urban settings​​​​. Year Founded: 2013 Location: Berlin, Germany Funding Amount/Type: Infarm has raised over $600 million in total funding. A significant part of this, $200 million, was raised in a Series D round led by the Qatar Investment Authority (QIA)​​​​. Funding Series: The latest funding round was a Series D round​​. Major Investors: The Qatar Investment Authority (QIA) is a notable investor, among others​​. Infarm’s urban farming and vertical farming technologies are particularly exciting in the climate tech field for several reasons. Firstly, their systems require significantly less water and land than conventional agriculture, making them a sustainable alternative for food production. Secondly, by localizing food production, they reduce the need for long-distance transportation, further decreasing the environmental impact. Lastly, the ability to control growing conditions leads to less waste and higher quality produce. The startup's innovative approach to farming addresses crucial environmental challenges, such as land use, water scarcity, and the carbon footprint of the agricultural sector. Infarm's success in attracting significant funding and major investors underscores the growing importance of sustainable food production solutions in the fight against climate change. Their technology represents a significant step forward in creating more sustainable, efficient, and localized food systems, making them a key player in the climate tech sector. 10. Northvolt Northvolt, a startup based in Stockholm, Sweden, was founded in 2015 and is spearheading innovations in sustainable battery production for electric vehicles. Their focus is on creating batteries with low-carbon manufacturing processes, contributing significantly to the field of climate tech. Year Founded: 2015 Location: Stockholm, Sweden Funding Amount/Type: Northvolt has secured investments totaling over $1 billion, including significant contributions from BMW Group, Volkswagen Group, Goldman Sachs, and Folksam. Funding Series: Major funding rounds include a $1.6 billion loan from a consortium and a $1.2 billion fundraising effort in 2023. Major Investors: Investors include BMW Group, Volkswagen Group, Goldman Sachs, and Folksam. Northvolt's role in sustainable battery production and commitment to low-carbon processes make it an exciting startup in the climate tech sector. Their innovative approach addresses critical challenges in the automotive industry, reducing the environmental impact of electric vehicle batteries. The significant funding and support from major investors underline the importance of Northvolt's mission in the global transition towards sustainable energy solutions. Their expansion into North America with a new battery plant in Canada further solidifies their position as a leader in the field. 11. Propagate Propagate, established in 2017, is revolutionizing the agricultural sector with its unique ecosystem that blends software, development, and financing. This innovative platform simplifies the process for farms to shift to agroforestry. By offering a comprehensive suite of services including agronomic insights, technical assistance, and financing options, Propagate ensures that farms can seamlessly integrate fruit, nut, and timber trees into their existing animal or crop farming systems. This approach effectively minimizes risks and supports a smoother transition. Year Founded: 2017 Location: Denver, CO Funding Amount/Type: Funding Series: Series A with a total of $11.5 million raised. Major Investors: The Nest, Agfunder, TELUS Pollinator Fund for Good, The Grantham Foundation, Techstars and Elemental Propagate's role in the climate tech field is significant, considering the growing need for sustainable agricultural practices. By focusing on agroforestry, they provide a viable solution to the challenges of food security, land degradation, and climate change, positioning themselves as a key player in the industry. The core of Propagate's mission is to facilitate the adoption of regenerative agriculture practices, particularly agroforestry. This method involves incorporating permanent crops into farming, leading to enhanced profitability for farms. More importantly, it plays a crucial role in climate stewardship. By adopting these practices, farms not only boost their economic viability but also contribute significantly to climate solutions, showcasing Propagate's pivotal role in promoting sustainable and environmentally friendly farming methods. 12. BeZero BeZero, founded in 2020 by Matthias Herbert and Tobias Frech in London, UK, is revolutionizing the carbon market with its carbon credit rating system. They've raised over $70 million, with a notable $50 million in a Series B round led by Quantum Energy Partners, and have attracted investments from EDF Group, Hitachi Ventures, and Intercontinental Exchange, among others​ Year Founded: 2020 Location: London, England, United Kingdom Funding Amount/Type: BeZero Carbon has raised more than $70 million to date. In a significant funding round, the company secured $50 million in a Series B round, marking it as one of the biggest raises in the UK climate tech sector for the year. Funding Series: The latest funding was a Series B round. Major Investors: The Series B funding round was led by US-based Quantum Energy Partners, with strategic investments from EDF Group through EDF Pulse Ventures, Hitachi Ventures, and Intercontinental Exchange (ICE). Other investors include Molten Ventures, Norrsken VC, Illuminate Financial, Qima, and Contrarian Ventures. BeZero aims to enhance transparency and efficiency in the Voluntary Carbon Market, crucial for achieving Net Zero targets. Their approach, supported by a team of experts, is significant in the climate tech sector, addressing the need for reliable information in the growing market, valued at approximately €50 billion by 2030​. 13. ChargerHelp! ChargerHelp!, founded in January 2020 by Kameale C. Terry and Evette Ellis in Los Angeles, California, is a dynamic startup in the electric vehicle (EV) industry. The company specializes in operations, maintenance, and workforce development for EV charging infrastructure. Year Founded: January 2020 Location: Los Angeles, California, United States Funding Amount/Type: ChargerHelp! has raised $17.5 million in Series A financing. This funding round was led by Blue Bear Capital, with significant investments from Aligned Climate Capital, Exelon Corporation, and other investors like Energy Impact Partners and non sibi ventures. Funding Series: The most recent funding was a Series A round. Major Investors: Major investors include Blue Bear Capital, Aligned Climate Capital, Exelon Corporation, Energy Impact Partners, and non sibi ventures. ChargerHelp! is not directly related to BeZero’s carbon credit rating system. However, in the broader context of climate tech, ChargerHelp! is contributing significantly by ensuring the reliability and efficiency of EV charging stations. Their focus is on improving the operational functionality of these stations, which is essential for the growing number of EV users and is pivotal in the transition to sustainable transportation. By addressing the technical and operational challenges of EV infrastructure, ChargerHelp! is helping to accelerate the adoption of electric vehicles, thereby reducing carbon emissions and advancing climate goals​​​​​​​​​​​​​​. 14. Sylvera Sylvera, established in 2020 by Samuel Gill and Dr. Allister Furey in London, UK, is a trailblazer in the climate tech industry. It specializes in providing a carbon offset intelligence platform, enhancing transparency and insights in the carbon market. Year Founded: 2020 Location: London, UK Funding Amount/Type: Sylvera has raised a total of $39.5 million. This includes a $32 million Series A round, led by Index Ventures and Insight Partners, with participation from Salesforce Ventures, LocalGlobe, and other angel investors. Funding Series: The latest funding was a Series A round. Major Investors: Key investors include Index Ventures, Insight Partners, Salesforce Ventures, LocalGlobe, and several angel investors. Sylvera's platform stands out in the climate tech field for its robust approach to analyzing carbon offset projects using machine learning and diverse data sources like satellite imagery. This enhances accountability and credibility in carbon offsetting, addressing the challenges of asymmetric information and transparency. Their contribution is vital in a market projected to be worth $100 billion by 2030, making Sylvera an essential player in achieving net-zero targets through improved carbon market practices​​​​​​​​​​​​​​. 15. ZeroAvia ZeroAvia, founded in 2017 by Valery Miftakhov, is a U.S.-based company focused on developing hydrogen-fueled aviation technology. They are at the forefront of reducing aviation's carbon footprint, which is pivotal for the climate tech field. Year Founded: 2017 Location: United States Funding Amount/Type: ZeroAvia has raised significant funding over the years, including $21.4 million in Series A financing in 2020, $24.3 million in a second round of Series A in 2021, $35 million in Series B financing also in 2021, and a substantial round in 2023 with Airbus as a lead investor. Funding Series: The company has completed Series A and B funding rounds. Major Investors: Notable investors include Breakthrough Energy Ventures, Ecosystem Integrity Fund, Horizons Ventures, Royal Dutch Shell, Amazon's Climate Pledge Fund, British Airways, United Airlines Ventures, Alaska Air Group, Airbus, and Neom Investment Fund. ZeroAvia's work in hydrogen-fueled aviation technology is transforming the industry. By developing powertrains for aircrafts that are zero-emission, they address a significant source of global carbon emissions. This breakthrough technology is not only crucial for the aviation industry's transition to sustainable practices but also represents a major advancement in the broader effort to combat climate change. The potential impact of ZeroAvia's technology in reducing aviation's carbon footprint makes them a particularly exciting and important player in the climate tech field​​​​​​​​​​. 10 Venture Capital Firms Investing in Climate Tech Startups Securing funding is a crucial step for any climate tech startup aiming to scale its operations and bring innovative solutions to market. With growing investor interest in sustainable technologies, more venture capital firms are focusing on climate tech companies that address critical environmental challenges. For startups, finding the right investors can make all the difference in gaining not just financial support but also strategic guidance and industry connections. Below is a list of 10 of the most active venture capital firms currently investing in climate tech, helping startups secure the resources they need to accelerate growth. Related resource: Guide to CleanTech and Climate Tech in 2024 + Top VCs Investing 1. Breakthrough Energy Ventures Backed by Bill Gates, Breakthrough Energy Ventures is one of the most influential players in climate tech, investing in early-stage companies focused on decarbonization. Their focus areas include energy storage, food and agriculture, and transportation. Location: Kirkland, Washington Investment Range: Seed to Series B 2. Lowercarbon Capital Lowercarbon Capital is a venture capital firm focused exclusively on startups that are reducing carbon emissions. They invest in a wide range of sectors including carbon capture, energy storage, and clean energy technologies. Location: San Francisco, California Investment Range: Seed to Growth 3. Energy Impact Partners (EIP) EIP partners with utilities and large energy consumers to invest in companies leading the transition to a clean energy future. Their portfolio includes startups working on grid modernization, electrification, and energy efficiency. Location: New York, New York Investment Range: Series A and beyond 4. Congruent Ventures Congruent Ventures is a leading VC firm supporting early-stage companies at the intersection of sustainability and technology. They focus on areas like clean energy, transportation, and resource efficiency. Location: San Francisco, California Investment Range: Seed to Series B 5. Fifth Wall Fifth Wall is a prominent investor in climate tech startups focused on sustainable real estate and infrastructure. They invest in companies addressing the decarbonization of the built environment, including energy efficiency, electrification, and carbon sequestration. Location: Los Angeles, California Investment Range: Seed to Series C 6. Prelude Ventures Prelude Ventures invests in early-stage climate tech startups working across various sectors, including energy, agriculture, and transportation. They have a long-term investment horizon and prioritize companies with breakthrough technologies. Location: San Francisco, California Investment Range: Seed to Series B 7. Chrysalix Venture Capital Chrysalix focuses on climate tech startups developing technologies for resource efficiency and industrial innovation. They work with companies that are bringing advanced materials, clean energy, and digitalization technologies to market. Location: Vancouver, Canada Investment Range: Series A to Growth 8. Obvious Ventures Obvious Ventures invests in startups that are building solutions for a healthier planet. They focus on climate tech sectors like clean energy, circular economy, and sustainable food systems.Location: San Francisco, CaliforniaInvestment Range: Seed to Series C, and Growth 9. Elemental Excelerator Elemental Excelerator is a global climate tech accelerator that invests in startups addressing energy, water, agriculture, and circular economy challenges. Their unique model combines investment with hands-on support to help companies scale. Location: Honolulu, Hawaii Investment Range: Seed to Series A 10. Schematic Ventures Schematic Ventures is a seed-stage venture capital firm investing in supply chain, logistics, and sustainability. Their climate tech investments focus on decarbonizing industrial processes and logistics through technology innovation. Location: San Francisco, California Investment Range: Seed Stage Find an Investor for Climate Tech with Visible Visible helps founders connect with investors using our connect investor database, find VCs specifically investing in Climate Tech here. Related resource: 10+ Founder Friendly Venture Capital Firms Investing in Startups Related resource: 11 Venture Capital Podcasts You Need to Check Out For Climate Tech startups, securing the right investors is critical as it goes beyond mere funding. These investors bring specialized expertise and strategic insights specific to the Climate sector and their guidance is invaluable in navigating the unique challenges and opportunities within the space. Use Visible to manage every part of your fundraising funnel with investor updates, fundraising pipelines, pitch deck sharing, and data rooms. Raise capital, update investors, and engage your team from a single platform. Try Visible free for 14 days.

Why the Chief of Staff is Important for a Startup Startup founders and practitioners are often debating the best actions to take and decisions to make in their early-stage companies. Determining the right hires has been a major part of this conversation. The hot topic on the table lately has been around hiring the role of Chief of Staff. There is a growing conversation about whether startup leaders and founders should hire a Chief of Staff (COS), and here at Visible, we believe it is one of the most important hires you can make. A Chief of Staff is essential for your startup because their role is designed to be an extension of the c-suite’s leadership and strategy. Their role allows companies to scale faster and more strategically. Between the Board of Directors, Executive Board, stakeholders, and employees, startups have a lot of moving parts, and a Chief of Staff can be the cog in the machine that makes all those pieces work smoothly together. A Chief of Staff is the right-hand person to an executive team member, typically the CEO or COO. The COS is tasked with managing the executive’s goals, priorities, internal and external operational tasks, and special strategic projects as needed. The typical responsibilities included in a Chief of Staff role may include: Managing Executive Goals and Priorities A Chief of Staff helps determine what optimized time really looks like. For CEOs and COOs, there is plenty of work that could easily fill the day. But what work is most important for business development and moving the business forward? A Chief of Staff helps direct the decision-making and serves as a sounding board for the CEO, owning the task of keeping the executive aligned to the goals he or she set forth to push the business forward. A COS considers these executive goals and even formalizes them in a framework such as the OKR (Objective Key Results) framework. With these executive OKRs formalized, a COS helps guide the CEO/COO’s priorities day over day. Related resource: Should I Consider a Part-time Executive for My Startup? Operational Tasks With specific areas of work, including board meetings and other critical decision-making sessions or meetings on the agenda, the Chief of Staff helps manage these priorities by handling operations tasks like agenda setting and distribution, communications with teams across the startup to gather insight and updates on various company-wide priorities and progression. Not only will a Chief of Staff work on internal operational tasks like meeting prep, gathering updates, and tracking company progress towards goals, but they also tend to handle external operational tasks as well. These external operational tasks might include sending investor updates to stakeholders, serving as the point of contact to the Board of Directors representing the CEO’s office, or even working on communications and PR. Special Strategic Projects Startups move fast, and different priorities and special obligations come up for leadership out of the blue. Additionally, as your startup goes through strategic growth periods like fundraising or even acquiring smaller startups down the line, the priorities of a CEO’s time will greatly change. These strategic times are the perfect way to utilize a COS. If fundraising is going to take up a significant chunk of a CEO’s time, a Chief of Staff can step in and manage aspects of that strategic task such as deck assembly, overview materials for the potential investors, and communication with parts of the business that need to deliver information for said fundraising presentation. Chief of Staffs are typically very versatile in their skill set, with communication, strategic thinking, and analytical skill sets. This background makes them the perfect person to take on roles that require strategic thought and concise summaries but are potentially too time-constraining for a CEO to dedicate all of their energy to. With their unique mix of hard and soft skills, executive insight, and strategic position in the company, a COS is a major value-add to any startup. Our team at Visible has identified seven primary ways that a Chief of Staff can strengthen your startup. When is it Time to Hire a Chief of Staff? Determining the right moment to bring a COS into your startup is crucial for maximizing their impact. By recognizing the following indicators and acting promptly, startups can leverage the unique skills and perspectives that a Chief of Staff brings to the table, ensuring sustained growth and success. Related resource: How to Hire Your First 10 Startup Employees Here are some key indicators that it might be the right time to hire a COS: Leadership Bandwidth is Strained As your startup grows, the demands on the leadership team increase exponentially. This strain manifests as longer work hours, difficulty in prioritizing tasks, and a constant feeling of being overwhelmed. Executives may find themselves bogged down with operational details rather than focusing on strategic initiatives. A Chief of Staff can help alleviate this burden by managing critical tasks, streamlining decision-making processes, and allowing leaders to focus on high-level strategic goals. They act as a force multiplier, extending the reach and effectiveness of the leadership team. A Need for Cross-Departmental Collaboration Effective cross-departmental collaboration is essential for startups to innovate and scale. However, as the organization grows, silos can form, and communication breakdowns can occur. This can lead to inefficiencies, duplicated efforts, and missed opportunities. A Chief of Staff ensures seamless collaboration by facilitating communication between departments, aligning goals, and overseeing cross-functional projects. They help to break down silos and ensure that all parts of the organization are working towards the same objectives. Related resource: How to Build Organizational Alignment Easily Mergers, Acquisitions, or Product Launches Significant events like mergers, acquisitions, or major product launches require focused attention and meticulous coordination. These initiatives bring unique challenges such as integrating new teams, managing extensive paperwork, and aligning strategies. A Chief of Staff can manage these complex processes, ensuring that all aspects are covered and that the executive team can concentrate on high-level strategic decisions. They provide the necessary oversight and coordination to make these critical events successful. Leadership Succession Planning Succession planning is vital for maintaining continuity and stability within the leadership team. It involves identifying and developing future leaders within the organization. However, amidst the daily hustle of running a startup, this can often be neglected. A Chief of Staff plays a crucial role in leadership succession planning by mentoring potential leaders, overseeing development programs, and ensuring there is a clear plan for leadership transitions. This not only secures the future of the company but also helps in retaining top talent by providing clear career progression paths. Typical Responsibilities for a Chief of Staff A Chief of Staff in a startup wears many hats, acting as a strategic partner to the CEO or COO. Their role involves a wide range of responsibilities that help streamline operations, drive strategic initiatives, and ensure that the leadership team can focus on high-priority tasks. Below are some of the key responsibilities that a Chief of Staff typically handles, each of which will be covered in more detail in their respective sections. Managing Executive Goals and Priorities A Chief of Staff helps determine what optimized time looks like for the executive team. For CEOs and COOs, there is plenty of work that could easily fill the day. But what work is most important for business development and moving the business forward? A Chief of Staff directs the decision-making process, ensuring that the executive's time is spent on tasks that are crucial for growth. They serve as a sounding board for the CEO, aligning the executive with the company’s strategic goals and formalizing them using frameworks such as OKRs (Objectives and Key Results). This helps guide the CEO/COO’s priorities day by day. Operational Leadership The Chief of Staff manages both internal and external operational tasks, ensuring smooth day-to-day operations. This includes setting agendas for board meetings, gathering updates from various teams, and tracking progress towards company goals. They handle communications across the startup to ensure everyone is aligned with the company’s priorities. Externally, they might send investor updates, serve as a point of contact for the Board of Directors, and manage public relations tasks. By overseeing these operational details, the Chief of Staff allows the executive team to focus on more strategic issues. Strategic Projects Startups often encounter special strategic projects that require focused attention. Whether it’s fundraising, a product launch, or an acquisition, a Chief of Staff manages these projects, ensuring they align with the company’s strategic goals. They take on roles that require strategic thinking and concise summaries, handling aspects such as preparing decks for investors, assembling materials for presentations, and coordinating communication across the company. This enables the CEO to concentrate on core business functions without getting bogged down by the intricacies of these special projects. Important Skills for a Chief of Staff to Have When making the strategic hire of a Chief of Staff, startup founders need to look for specific skills that will ensure the candidate can effectively support the leadership team and drive the company forward. These skills serve as crucial filters and green flags in the interview process, guiding founders on how to frame their questions and identify the best candidate for their organization. Strategic Thinking Strategic thinking is vital for navigating the complexities of a growing startup. A Chief of Staff must be able to anticipate future challenges, identify opportunities, and develop long-term plans that align with the company's vision. By outsourcing strategic thinking to a Chief of Staff, the executive team can ensure that someone is always focused on the bigger picture, allowing them to concentrate on immediate operational needs. This skill is essential for maintaining a clear direction and ensuring the startup's long-term success. Project Management Effective project management is crucial for keeping various initiatives on track and within budget. A Chief of Staff must be adept at coordinating multiple projects, setting deadlines, and ensuring that resources are allocated efficiently. In a growing startup, where rapid execution is key, outsourcing project management to a Chief of Staff ensures that projects are completed on time and meet the company's strategic objectives. This allows the executive team to focus on higher-level strategic decisions without getting bogged down in the details of project execution. Analytical Skills Analytical skills enable a Chief of Staff to interpret data, identify trends, and make informed decisions. In a data-driven startup environment, these skills are critical for providing valuable insights that inform strategic direction and operational improvements. By outsourcing analytical tasks to a Chief of Staff, the executive team can ensure that decisions are based on solid data and analysis, reducing the risk of errors and improving overall efficiency. Communication Skills Strong communication skills are necessary for a Chief of Staff to act as a liaison between the executive team and other departments. They must be able to convey complex ideas clearly, facilitate effective meetings, and ensure that all stakeholders are on the same page. Good communication helps maintain transparency, fosters a collaborative work environment, and ensures that everyone in the organization is aligned with the company's goals. By outsourcing communication management to a Chief of Staff, the executive team can ensure that information flows smoothly and efficiently throughout the organization. Ways a Chief of Staff Can Strengthen Your Startup A Chief of Staff can significantly enhance the effectiveness and efficiency of a startup. By taking on critical tasks and responsibilities, they enable the executive team to focus on strategic goals and high-priority items. Here are some of the ways a Chief of Staff can strengthen your startup: Focus on Priority Items The day-to-day life of a CEO or COO can be extremely hectic, with numerous decisions and tasks competing for their attention. A Chief of Staff helps manage these priorities by filtering out less critical tasks and directing the executive’s time towards the most strategic decisions that align with the company's OKRs (Objectives and Key Results). This ensures that the leadership focuses on what truly drives the business forward while the Chief of Staff handles smaller issues and routine decision-making. Facilitate Smooth Information Sharing Effective communication is crucial for the smooth operation of a startup. A Chief of Staff acts as a central point for gathering and disseminating information across the organization. They collect updates from various departments, distill the most important points, and present a contextualized executive summary to the CEO. This process ensures that the CEO receives all the necessary information without being overwhelmed by details, and that communication flows smoothly from the CEO to the rest of the company. Inform Strategy and Decision-Making A Chief of Staff serves as a valuable resource for keeping the executive team connected to the various happenings across departments. By providing an executive summary of company-wide updates, a Chief of Staff helps the leadership team make informed strategic decisions more quickly. They ensure that all relevant information is considered, facilitating better and faster decision-making processes. Maximize Time While You Scale As a startup scales, the demands on the executive team’s time increase. A Chief of Staff helps maximize this time by prioritizing tasks and focusing on critical projects. They handle routine and operational tasks, allowing the CEO to dedicate more time to deep-think projects and strategic initiatives. This ensures that the leadership’s time is used efficiently, even as the company grows and evolves. Tackle Special Projects Special projects, such as fundraising rounds, product launches, or industry presentations, require focused attention and dedicated resources. A Chief of Staff is perfectly positioned to spearhead these projects, managing aspects such as preparing investor decks, assembling materials for presentations, and coordinating communication across the company. This allows the CEO to stay focused on daily priorities while still ensuring that special projects are executed effectively. Provide Oversight and Perspective Startups can often become echo chambers where new perspectives are hard to come by. A Chief of Staff, especially one with experience from other startups, brings a fresh viewpoint to the c-suite. They provide oversight and serve as a sounding board for new ideas and strategies, helping to ensure that the company stays innovative and adaptable. Push the Business Forward Ultimately, a Chief of Staff is a strategic player in moving the business forward. They streamline operations, manage strategic projects, and ensure effective communication, all of which contribute to the company’s growth. By freeing up the executive team to focus on high-level strategic goals, a Chief of Staff helps take a startup from good to great and potentially to unicorn status. Chief of Staff vs Executive Assistant Understanding the difference between a COS and an Executive Assistant (EA) is crucial for startup founders to ensure they make the right hire at the right time. While both roles support the executive team, they do so in different ways and with distinct focuses. Chief of Staff A Chief of Staff is a strategic partner to the executive team, particularly the CEO or COO. Their responsibilities are broad and focus on aligning the company’s strategic goals with daily operations. Here are some key aspects of the COS role: Strategic Focus: The COS works on high-level strategic initiatives, ensuring that the executive team’s vision and goals are implemented across the organization. Project Management: They handle complex projects that span multiple departments, such as mergers, acquisitions, product launches, and fundraising efforts. Decision-Making Support: The COS provides critical insights and data analysis to support executive decision-making, helping to inform strategy and operational improvements. Cross-Departmental Collaboration: They facilitate communication and collaboration between different departments to ensure everyone is aligned and working towards common goals. Leadership Development: The COS often plays a role in leadership succession planning and mentoring potential future leaders within the organization. Executive Assistant An Executive Assistant, on the other hand, focuses on optimizing the executive’s daily schedule and administrative tasks. Here are some key aspects of the EA role: Administrative Focus: The EA manages the executive’s calendar, schedules meetings, handles correspondence, and organizes travel arrangements. Time Management: They ensure that the executive’s time is used efficiently by prioritizing meetings and tasks, allowing the executive to focus on their most important responsibilities. Task Coordination: The EA handles a variety of administrative tasks that help keep the executive’s day running smoothly, from booking appointments to preparing documents. Support Role: They provide general support to the executive, ensuring that they have everything they need to perform their duties effectively. Routine Operations: The EA is instrumental in managing routine operational tasks, allowing the executive to concentrate on more strategic issues. Key Differences Scope of Responsibilities: The COS has a broader, more strategic scope, focusing on aligning and implementing the company’s long-term goals. The EA’s scope is narrower, concentrating on the day-to-day administrative support of the executive. Strategic vs. Administrative: The COS is involved in strategic decision-making and high-level project management, while the EA handles administrative and logistical tasks. Cross-Departmental Impact: The COS often works across departments to facilitate collaboration and ensure alignment with company goals. The EA typically works closely with the executive and less so with other departments. Long-Term vs. Short-Term Focus: The COS is focused on long-term strategic initiatives and projects that drive the company forward. The EA is focused on the immediate, short-term needs of the executive. Making the Right Choice For startup founders, deciding between hiring a Chief of Staff and an Executive Assistant depends on the company’s current needs and stage of growth: If the company needs high-level strategic support, project management for complex initiatives, and cross-departmental coordination, hiring a Chief of Staff is the right choice. If the primary need is managing the executive’s schedule, handling administrative tasks, and ensuring day-to-day operations run smoothly, then an Executive Assistant is the appropriate hire. Equipping a Chief of Staff for Success at a Startup To ensure a COS is successful at your startup, it's crucial to clearly define their role and responsibilities from the outset. This includes creating a detailed job description that outlines specific tasks and expectations. Additionally, providing a comprehensive onboarding process with clear goals and KPIs will help the COS integrate smoothly and start contributing effectively. Regular check-ins and feedback sessions will also ensure they are aligned with the company’s strategic goals and can adjust to any evolving needs. Equipping your COS with the right tools and resources, fostering open communication, and maintaining a supportive environment will enable them to execute their duties effectively. This preparation ensures that the COS can focus on driving strategic initiatives and managing critical projects, ultimately contributing to the startup’s growth and success. How Visible Can Help Visible offers a range of tools and resources designed to support Chief of Staffs in their roles, making it easier to streamline executive and investor communications. With features that facilitate data tracking, reporting, and stakeholder updates, Visible ensures that your Chief of Staff can efficiently manage information flow and keep everyone aligned with the company’s strategic objectives. By leveraging Visible's platform, startups can enhance their operational efficiency, improve decision-making processes, and ultimately drive growth. For more information about how Visible helps Chiefs of Staff streamline their executive and investor communications, learn more here.

Managing company equity is a crucial part of a founder’s job duty. In the early days of building a business, chances are there will be countless advisors, investors, peers, etc. that help a business. However, most early stage businesses do not have the cashflow to compensate every advisor along the way. Founders need to get crafty with how they compensate their earliest advisors and experts — enter: advisory shares. We always recommend consulting a lawyer before taking further action on advisory shares. Learn more about advisory shares and how you can leverage them for your business below: What Are Advisory Shares? As put by the team at Investopedia, “One common class of stock is advisory shares. Also known as advisor shares, this type of stock is given to business advisors in exchange for their insight and expertise. Often, the advisors who receive this type of stock options reward are company founders or high-level executives. Advisor shares typically vest monthly over a 1-2 year period on a schedule with no cliff and 100% single-trigger acceleration.” Advisor Shares vs. Regular Shares (or Equity) Advisor shares come in different shapes and sizes. There is not a technical definition of advisor shares but is rather any form of equity in a business. Learn more about the characteristics of advisory shares below: Characteristics of Advisory Shares As mentioned above, advisor shares typically vest monthly over a 1-2 year period with no cliff. Advisory shares are typically granted as stock options but not every company grants their shares in the same way. This generally comes in the form of Non-Qualified Stock Options (NSOs). Related Read: The Main Difference Between ISOs and NSOs How Do Advisory Shares Work? While advisory shares can take on different forms, they typically can be boiled down to a few similarities. Of course, these can change depending on your business. Exchanged for advice or expertise Typically offered as NSO stock options Follow a shorter vesting schedule Learn more about how advisory shares typically work below: Implement a Startup Advisor Agreement As put by the team at HubSpot, “A startup advisor agreement is a contract between a startup and its advisor. This agreement outlines the terms of the relationship, including the responsibilities of each party and the compensation the advisor will receive.” There are countless advisor agreement templates online to get you started. The Founder Institute offers a free template called the FAST Agreement. Determine the Vesting Schedule As advisor shares are for advisors that offered their expertise, they are typically granted on a shorter vesting schedule because their value is given over a shorter amount of time. This is typically a 1 or 2 year vesting schedule (as opposed to the 4 year vesting schedule traditionally used for startup employees). Benefits of Advisory Shares Advisory shares come with their own set of pros and cons. Properly maintaining and distributing equity is a critical role of a startup founder so understand the benefits, and drawbacks, of offering advisory shares is a must. Related Resource: 7 Essential Business Startup Resources Learn more about the benefits of offering startup advisory shares below: Access to Real Experts When setting out to build a business, chances are most founders lack expertise in certain areas when it comes to building a business or in their market. However, most early-stage companies are typically strapped for cash and are unable to afford the defacto experts in the space. With advisor shares, startup founders can attract real experts to get guidance and strategic support in the early days in return for shares in the business. Related Resource: Seed Funding for Startups 101: A Complete Guide Better Network Credibility If hiring the right advisor, chances are they will be able to help beyond strategic advice or their expertise. They will be able to expose your business to their network and will be able to make introductions to new business opportunities, partnerships, investors, and potential hires. Cost-Effective Compensation As we previously mentioned, most businesses that benefit most from advisors are unable to offer them a salary or cash compensation. With advisor shares, startup founders are able to offer shares as compensation and conserve thei cash to help with scaling their business and headcount. Drawbacks of Advisory Shares Of course, offering advisor shares is not for everyone. While there are benefits to offering advisor shares, there are certainly drawbacks as well. Weighing the pros and cons and determining what is right for your business is ultimately up to you. We always recommend consulting with a lawyer or counsel when determining how to compensate advisors. Diluted Ownership The biggest drawback for most founders will be the diluted ownership. By offering shares to advisors, you will be diluting the ownership of yourself and existing shareholders. As advisors are fully vested in 1-2 years, they will potentially not be invested in future success as other stakeholders and could be costly when taking into account the diluted ownership. Potential Conflicts of Interest Advisors might not have the same motivators and incentives as your employees and other shareholders. As their ownership is generally a smaller % and their shares vest early, they are potentially not as incentivized for the growth of your company as employees and larger % owners will be. Getting in front of these conversations and making sure you have a good read on any potential advisors before bringing them onboard is a good first step to mitigate potential conflicts. Extra Stakeholder to Manage Chances are most advisors are helping other companies as well. This means that their attention is divided and you will need to ensure you are getting enough value to warrant dilution. This also means that you are responsible for managing a relationship and communication with another stakeholder in your business — what can be burdensome on some founders. The 2 Variations of Advisory Shares Advisory shares are generally offered in 2 variations — restricted stock awards and stock options. Learn more about each option and what they mean below: Restricted Stock Awards As put by the team at Investopedia, “A restricted stock award is similar to an RSU in a number of ways, except for the fact that the award also comes with voting rights. This is because the employee owns the stock immediately once it is awarded. Generally, an RSU represents stock, but in some cases, an employee can elect to receive the cash value of the RSU in lieu of a stock award. This is not the case for restricted stock awards, which cannot be redeemed for cash.” Stock Options As we mentioned, NSOs (Non-Qualified Stock Options) are commonly used for advisor shares. As put by the team at Investopedia, “A non-qualified stock option (NSO) is a type of employee stock option wherein you pay ordinary income tax on the difference between the grant price and the price at which you exercise the option… Non-qualified stock options require payment of income tax of the grant price minus the price of the exercised option.” Who Gets to Issue Advisory Shares? Issuing advisory shares is typically reserved for the founder or CEO of a company. Having a decision-making process and gameplan when issuing advisory shares is important. This might mean offering no shares at all, having an allocated amount of advisor shares from the get go, or something inbetween. Making sure your board of directors and other key stakeholders are on board is crucial to make sure that interest and strategy stays aligned for all stakeholders. How Many Shares Should You Give a Startup Advisor? Managing the balance between sufficient incentives and managing equity dilution is crucial for any business. Determining the number of shares to offer an advisor is subjective to the founder and advisor. When determining the number, a couple of things to keep in mind include: Advisor’s experience Time commitment Expected contribution As put by the team at Silicon Valley Bank, “An advisor may receive between 0.25% and 1% of shares, depending on the stage of the startup and the nature of the advice provided. There are ways to structure such compensation that ensures founders get value for those shares and still retain the flexibility to replace advisors, all without losing equity.” Let Visible Help You Streamline the Investment Management Process Use Visible to manage every part of your fundraising funnel with investor updates, fundraising pipelines, pitch deck sharing, and data rooms. Raise capital, update investors, and engage your team from a single platform. Try Visible free for 14 days. Related resource: Navigating the World of QSBS: Tax Benefits and Eligibility Criteria Explained

Founders are tasked with hundreds of responsibilities when starting a business. On top of hiring, financing, and building their product, early-stage founders are generally responsible for developing initial strategies — this includes the earliest sales and market strategies. In this article, we will look to help you craft a successful SaaS sales strategy. We’ll highlight the elements you will want to think of when you start to build your sales motion. This will help your team to understand how to measure the number of potential customers in your pipeline and the growth potential you might see in your revenue numbers. How are SaaS sales different from other types of sales? Like any sales strategy, it is important to start with the basics when looking at a SaaS sales strategy. At the top of your funnel, you have marketing leads that likely find your brand via content, word of mouth, paid ads, your own product, etc. From here, leads are moved through the funnel. In the middle, SaaS companies can leverage email campaigns, events, product demos, etc. to move leads to the bottom of their funnel. However, as the SaaS buying experience takes place fully online — sales and marketing organizations can be creative with their approach. The online experience allows companies to track more robust data than ever before. Additionally, SaaS products have turned into their own growth levers as well — the ability to manipulate pricing and plans has led to the ability for companies to leverage their own product for growth. Related Resource: How SaaS Companies Can Best Leverage a Product-led Growth Strategy The online presence and emergence of product-led growth have led to new sales strategies unique to SaaS companies. Learn more below: 3 Popular SaaS sales models There are countless ways to structure your Saas sales strategy. For the sake of this post, we’ll focus on 3 of the most popular strategies. Learn more about the self-service model, transactional model, and enterprise sales model below: Related Resource: The SaaS Business Model: How and Why it Works Self-service model The self-service model allows prospects to become customers without communicating with your team. As put by the team at ProductLed, “A SaaS self-serve model is exactly what it sounds like. Rather than rely on a dedicated Sales team to prospect, educate, and close sales, you design a system that allows customers to serve themselves. The quality of the product itself does all the selling.” This strategy is typically best for a strong and simple product that typically has a lower contract size. Transactional sales model The transactional model allows you to create income-generating actions where prospects have to become a customer at that point in time. This requires transactional sales models to have high-volume sales that can be supported by a strong sales and customer support team. Enterprise sales model The enterprise model is a strategy to sell more robust software packages to corporations – you will need baked-in features in a prepackaged manner to sell to a fellow business. Enterprise sales is the model that shares the most similarities with a traditional B2B sales funnel. Inbound vs outbound sales In a Saas sales funnel, you are constantly looking to consistently fill your sales funnel with fresh prospects. Once you have prospects you will look to find which prospects are worthy of being qualified and have a high likelihood of converting so you can spend your time communicating with those high-quality prospects. There are two popular strategies for creating fresh prospects that would be defined as inbound and outbound sales strategies. Inbound sales is when you invest in marketing to create prospects reaching out to you – fresh prospects reaching out to your business to ask about your software product. As put by the team at HubSpot: “Inbound sales organizations use a sales process that is personalized, helpful, and directly focused on prospects’ pain points throughout their buyer’s journey. During inbound sales, buyers move through three key phases: awareness, consideration, and decision (which we’ll discuss further below). While buyers go through these three phases, sales teams go through four different actions that will help them support qualified leads into becoming opportunities and eventually customers: identify, connect, explore, and advise.” An inbound strategy typically works best for SaaS companies that need a greater volume of customers and can nurture them and move them through their funnel at scale (e.g. self-service model) Outbound sales on the other hand are having members of your organization reach out to potential prospects to see if they would be interested in using your service. Outbound sales require highly targeted and proactive pushing of your messaging to customers. Generally, outbound sales require dedicated team members to manually prospect and reach out to potential customers. This means that outbound sales organizations do not naturally scale as well as an inbound sales organizations and will likely require a higher contract value. An enterprise model would rely heavily on Outbound sales, while a self-service business model will rely heavily on Inbound sales. The SaaS Sales Process The best Saas sales strategy will be a hybrid of inbound and outbound sales, but all of them should include a sales funnel. This funnel should have stages that help to qualify your prospects. These stages should be: Step 1: Lead generation This activity is often times a marketing activity that gives you contact or business information to explore the fit further Step 2: Prospecting This is where you develop the bio of who is the contact you are reaching out to within the organization. It is always helpful to prospect for someone who can make a buying decision Step 3: Qualifying In this step, you need to understand whether the prospect has the resources to pay for your product and the problem that your product can solve. This step is often the time for you to ask questions of your prospects Step 4: Demos and presenting This is when you will share the features and capabilities of your product with the qualified prospect. You want to show them the different features and where they can get the most value. Step 5: Closing the deal After your demo or a presenting call, the prospect should be pushed to a point where they need to make a decision on whether to buy your product. Step 6: Nurturing Once someone becomes a customer, you need to make sure to nurture them and grow your product offering with their business. This is the most difficult stage. Make sure to share your new product releases, stay in tune with how they are using your product, and build relationships with your customers. Cultivating a robust sales team To create a sustaining sales team, it is important to hire talented and tenacious people to own your sales funnel. They will need to track conversion numbers, stay organized with their outreach to prospects, and grow your funnel over time. There are three key roles within a Saas sales funnel. Those positions within your organization are: Sales development representatives (also known as business development representatives) These members of your team own lead generation, prospecting, and qualifying potential customers on your sales team. They get paid 40-60k/year depending on geographical location and experience. They should be tasked with outreach and drumming up new business. Account executives Account executives should focus on giving product demos, closing deals, and nurturing existing customers. They should be a bit more buttoned up in their approach and have a commission incentive associated with the # of accounts they manage. Sales managers/VPs Sales managers and Vice presidents of sales should take ownership of the data within your sales pipelines. Numbers like # of new leads, # of new qualified leads, # of new customers, # of churned customers, amount of new revenue, and lead to customer conversion %. Growing these sales numbers each quarter. Measuring these numbers weekly, monthly, and quarterly. Making them visible to the rest of the company regularly. 8 Key Elements of a successful SaaS sales strategy One of the most important elements of building a successful business is having a like-minded team around you to support and work with you. Make sure to align with all your team members and hire people with good work ethics and similar values of your company. A good sales team should be competitive, goal-oriented, and metric-driven. The sales managers and VPs will be really crucial in shaping the team dynamics and culture of your business. Hire great people and the numbers will take care of themselves! We’ve identified 8 elements of a successful sales strategy that every Saas sales strategy should include 1. Solidify your value proposition It is so important to understand thoroughly and communicate your product’s core value proposition. If someone decides to buy your product, they should know how to use the product and how to get the most out of it. 2. Superb communication with prospects Communication is of the utmost importance. Make sure your prospects understand your product and how it will help their business. Inform them of new product updates 3. Strategic trial periods An effective strategy is to give potential customers a free trial of your product to understand your value proposition. You want to make sure not to make this trial period too short or too long. Make it strategic so the prospect will understand the value prop but also be encouraged to make a buying decision. 4. Track the right SaaS metrics Tracking your core metrics is vital to success. See a few of those below: Customer Acquisition Cost – the amount of money it takes to acquire a new customer Customer Lifetime Value – the amount of value a customer provides your company over the course of their relationship with you as a customer. Lead velocity rate – the growth percentage of qualified leads month over month. This will help you understand how quickly you are qualifying your leads Related Resources: Our Ultimate Guide to SaaS Metrics & How To Calculate and Interpret Your SaaS Magic Number 5. Develop a sales playbook Every successful sales management team should develop a playbook on how to deploy their resources and where each team member should spend their time. Playbooks are often thought of in sports terms, but they also work wonders in the business world. They will help you do things efficiently and effectively. 6. Set effective sales goals How many new customers does your business hope to bring in next month? This is an important question and one your whole sales team should understand and work towards! 7. Utilize the right tools to enhance the process Your team should have all the resources at their disposal to communicate effectively and track their metrics. As you build out your strategy and team, be sure to give them all possible resources at their disposal. There are tons of great tools out there for teams to make the most out of their time and have direct methods of communication with customers and one another. 8. Establish an effective customer support program A huge part of an effective sales strategy is welcoming potential customers and making sure your existing customers are not forgotten about. When customers reach out, it is important to talk and listen to their issues. Understand what they are needing so your product can continue to evolve. Make sure anyone getting introduced to your product will also have the information they need to use your product successfully. It might be helpful to include this member of your team in your sales meetings and keep them informed as to messaging and efforts for growth! Generate support for your startup with Visible Developing a successful SaaS sales strategy is not an easy task. It will take a hybrid approach of many of the elements listed in this article and will need attentive members of your team to nurture it and test new things. We created Visible to help founders have a better chance for success. Stay in the loop with the best resources to build and scale your startup with our newsletter, the Visible Weekly — subscribe here. Related resource: Lead Velocity Rate: A Key Metric in the Startup Landscape

Jessica is the co-founder and president of Maad, francophone Africa’s fastest-growing B2B e-commerce player. Jessica and her team adopted Visible in December 2021 to start sending out investor updates for the first time after closing a pre-seed round. Since then the team at Maad has continued to leverage Visible’s suite of fundraising tools such as data rooms and pitch decks. Maad successfully closed its seed round led by Ventures Platform in late 2023. Read more about their recent coverage in TechCrunch here. This case study details why Maad chose Visible and the specific solutions they leveraged to support the successful raise of their seed round. Jessica's Founder Journey—From Airbnb to Empowering Retail Owners in Africa Maad was co-founded by Jessica Long in 2021. Jessica has a demonstrated passion for creating software that adds value operationally. She fostered this passion in her previous work as a software engineer at Airbnb, building systems to support novel machine learning and crowdsourcing technology at Idibon in San Francisco, and leading the development of national digital health platforms in West Africa as the Director of Global Services at Dimagi. Jessica started Maad because she believed that better data tools could transform the business landscape of Senegal and other developing West African countries. After spending two years building out a generalizable tech platform to track field operations of all kinds, she and her cofounders zeroed in on the informal retail market. With 100,000s of small shops sourcing the same products from a patchwork supply network, Jessica saw a big opportunity to connect small shops directly to the agribusinesses supplying them. Maad is now Francophone Africa's fastest-growing B2B e-commerce player. Maad supplies food, beverages, and everyday household products to thousands of small shops. The company is dedicated to empowering traditional retailers in Francophone West Africa. Their product offerings provide traditional retailers with a mobile app that’s a one-stop shop for all their supply needs and Fast-Moving Consumer Goods (FMCG) brands with a complete picture of the fragmented consumer market. The Need to Professionalize Investor Communications After Raising a Pre-seed Round Maad closed a pre-seed round in 2021 led by Launch Africa, Oui Capital, and Alumni Ventures. This was the first time Jessica and her cofounders had ever sent out monthly investor updates. Their first attempt included a few bullet points in an email to which her investors gave her feedback: “You could be doing this more professionally.” Jessica’s early investors explained that monthly updates are often the first thing that new investors will look at to understand the trajectory of a company. “Writing crisp, effective updates was one of the best ways to showcase our company’s growth and development,” - Jessica Long, Co-Founder and President of Maad The team at Maad took this feedback to heart and evaluated several tools for the job. In response to why Jessica chose Visible she shared, “Visible struck us as the best choice, with its emphasis on high-quality email reports.” Jessica highlighted specific features that made Visible stand out: Filterable contact lists that make it easy to manage the email’s audience The ability to add charts and graphs inline The optional live data integration The ability to add photos and GIFs Recipient engagement tracking Maad’s Growing Need for Visible’s Fundraising Solutions Originally Maad’s primary use case for Visible was sending out monthly updates to investors. When Maad started its second fundraise, Visible became its centralized fundraising solution where they also hosted their pitch decks and data rooms as well. “It truly became a home for sharing information with investors about our company.” - Jessica Long, Co-Founder and President of Maad Since first leveraging Visible in December 2021 to update current investors, Maad utilized Visible’s more advanced fundraising solutions and successfully closed their Seed round of $2.3M (in equity) in late 2023. The round was led by Ventures Platform. Read more about the announcement of Maad’s recent financing in TechCrunch here. Visible Impact on Maad’s Investor Engagements Visible has equipped Maad to send high-quality investor updates every month since December 2021. Visible's update engagement tracking allowed Jessica to see how closely prospective investors were following her company, which helped their team prioritize their timespend during the seed stage fundraise. Increasingly, the team at Maad kept all investor-related information assets on the Visible platform including monthly investor updates, pitch decks, and data rooms. This created a clean and consistent place for sharing information and tracking engagement. “Every month we get compliments on the quality of the investor updates we are able to generate with Visible’s platform.” Maad’s Top Four Visible Solutions Jessica shared the key advantages of using the Visible platform are: The beautiful and polished investor updates Thoughtful collaboration and versioning features Engagement tracking Consolidation of all major sources of investor information onto a single platform Below are some examples of some of Maad’s favorite solutions in Visible. 1) The ability to store investor updates all in one place. This makes it easy to review previous updates, track engagement rates, and resend the updates if needed. 2) Fun features like directly embedded GIFs in newsletters allow us to connect with Maad’s supporters with more immediacy. 3) Uploading different pitch decks to the same link is an incredible feature for us. We love the versioning and collaboration this allows us internally, while presenting a unified experience to external collaborators 4) Beautiful graphs, directly configurable on the platform, are one of the most popular features of our monthly updates:

About Airtree Ventures Airtree is a Sydney-based venture capital firm backing founders based in Australia and New Zealand building the iconic companies of tomorrow. The firm was founded in 2014 and is now deploying out of its 4th fund with $1.3 billion in assets under management. Their portfolio includes over 105+ portfolio companies and 250+ founders who have helped create over 17,000 jobs. Airtree’s portfolio includes the region’s breakout technology companies, such as Canva, Go1, Employment Hero, Pet Circle, Immutable, and Linktree. For this case study, we spoke to Dan Lombard who is the Data Lead at Airtree Ventures. Related article: Airtree Ventures already returned its first fund thanks to Canva while maintaining the majority of its stake Fragmented Systems and Processes Prior to Visible Prior to the integration of Visible, Airtree relied heavily on a fragmented system of spreadsheets to manage their portfolio of 105+ companies. Each quarter, four employees were tasked with managing the relationships with the points of contact at 15 to 20 portfolio companies through manual outreach and communications. This reliance on spreadsheets resulted in inefficiencies and potential data loss, as spreadsheets are prone to break when modified. Challenges With Data Accuracy and Scaling Manual Outreach to a Growing Portfolio Before Visible, 80% of Airtree’s portfolio monitoring problem was having clean data and scaling outreach to their portfolio companies. They faced two primary challenges with their former system: Operational Efficiency: Four team members spent significant time manually collecting data from over 100 companies every quarter. The Airtree team members were sending one-off email communications to each company and manually keeping track of who needed to be followed up with at each company which diverted resources from other critical projects they could be working on. Data Integrity and Scalability: Frequent changes to the data in spreadsheets resulted in errors in the sheets and data loss, which caused frustration as there was no way of understanding which changes were made to the sheet and when. This process made it difficult to scale portfolio monitoring operations as Airtree grew. Why Airtree Chose Visible as their Portfolio Monitoring Platform Airtree chose Visible for its robust, scalable, and user-friendly platform. Key factors influencing their choice included: Ease of Use and Customization: Visible's platform offered unparalleled customization and ease of use. Support and Development: Visible’s team actively listened to feedback, offered best practices, and continuously invested in their product, ensuring a partnership that catered to Airtree’s evolving needs. Automation and Integration: Visible excelled in automating portfolio monitoring and offered a frictionless experience for founders. Airtree leveraged the Visible API to seamlessly integrate data into their existing data warehouse system. Airtree’s historical data collection process, previously led by four Airtree team members, is now a streamlined process led only by Dan, who leverages Visible Requests to collect data from their portfolio of 105+ companies. Visible Requests empowers Dan to send customized link-based data requests to each company, automate the email reminder process, and easily keep track of where companies are in the reporting process. View an example Visible Request below. Onboarded to Visible within 24 Hours Visible provided Airtree with an efficient and supported onboarding. When asked about Airtree's onboarding with Visible Dan Lombard shared the following: Visible stood out by enabling a swift and seamless transition that was operational in less than 24 hours, a stark contrast to other providers who estimated a quarter for full implementation. This rapid integration was facilitated by a comprehensive onboarding template provided by Visible. Visible API & Airtree’s Data Infrastructure With the implementation of Visible, Airtree wanted to take a more sophisticated approach to the way they handle their portfolio data with the goal of driving more valuable insights for their team. The approach needed to be automated, integrate with other data sources, and have a singular view accessible for the whole team. This was not possible when their data lived in disparate systems, files, and spreadsheets. Dan Lombard has led the improvement of Airtree's data infrastructure. Now, data sources like Visible and Affinity are piped into Snowflake via recurring AWS Lambda jobs. Airtree leverages the Visible API daily. Dan mentioned that while Airtree collects data quarterly, a daily sync of the data is crucial because Airtree is always onboarding new companies, communicating with their founders, and uploading historical data. “The Visible API gives us this level of daily fidelity and only takes the AWS Lambda job 5 minutes to populate an entire data architecture.” - Dan Lombard, Data Lead at Airtree Ventures Once the data is in their database, Snowflake handles the ETL and entity matching. Airtree then has Streamlit sit on top of Snowflake to query data, provision access, and build out new insights. Advice for Other VC Firms Building Out Their Data Infrastructure Don’t overcomplicate things to start. It is easy to get caught up in the bells and whistles. Dan recommends a bias towards simplicity. Start small and use it as a stepping stone as you build things out. Conclusion Airtree’s adoption of Visible transformed their portfolio management by automating key processes and centralizing data, thus enabling more strategic decision-making and efficient operations. The case of Airtree is a testament to how the right technological partnerships can profoundly impact business efficiency and data management.

It’s common for venture firms to start raising their next fund in the last year of capital deployment, typically years 3-4 of a fund’s life. This poses a sort of chicken-and-egg problem because many of the common fund performance metrics that Limited Partners use to drive allocation decisions only become reliable, and therefore more meaningful, around year six (Source: Cambridge Associates). Farooq Abbasi, founder and General Partner of Preface Ventures, created a Seed Stage Enterprise VC Funding Napkin to help GPS think through alternative fund metrics that help communicate performance outside the traditional indicators that LPs use to measure success for more mature funds. The Seed Stage Enterprise VC Funding Napkin helps answer the question "What is good enough to raise a subsequent fund in the current market conditions". Farooq from Preface Ventures joined us on Tuesday, February 27th for a discussion about the fund performance metrics GPs can use to benchmark and communicate fund performance when it's still 'early'. View the recording below. Webinar Topics The issue with ‘typical’ fund performance metrics for ‘early’ funds Overview of Preface Venture’s Seed Stage Enterprise VC Funding Napkin Deep dive into alternative early performance benchmarks How to keep track of alternative fund performance metrics How to leverage alternative fund performance indicators into your fundraising narrative Inside look into how Preface Ventures keeps LPs up to date Q&A Resources From the Webinar Christoph Janz's What does it take to raise capital, in SaaS, in 2023? Preface Ventures' A GP's View on VC Fund Performance When It's Early Diversity VC About Preface Ventures Preface Ventures is a New York City-based firm started in 2020 led by Farooq Abbasi. Preface invests $500-$2M at the pre-seed and seed stage into startups who are building the Frontier Enterprise structure. Preface has 20 active positions in Fund II and 7 active positions in Fund III. (Learn more)