Venture Capital Consulting

Venture capital is full of noise - narratives, anecdotes, and opinions. Over the past few years, I’ve worked to cut through that by doubling down on data: dissecting the structural traits of this asset class, from illiquidity and vintage diversification to the nuances of fund math. As an LP, digging into private and public datasets has given me a sharper view of how allocation decisions are made - and revealed how little of this analysis is shared for other GPs and LPs to learn from. That’s why I’ll be sharing these insights more consistently through "𝐒𝐢𝐠𝐧𝐚𝐥𝐬 𝐢𝐧 𝐭𝐡𝐞 𝐍𝐨𝐢𝐬𝐞" - my data-driven lens on how LPs approach venture allocation, with a focus on uncovering the insights hidden in the data. Whether zooming in on Canadian venture or zooming out to global trends, my aim is to provide frameworks that GPs and LPs can apply to their own decision-making. So where to start? First post below 👇 𝐏𝐨𝐬𝐭 𝟏 – 𝐖𝐡𝐲 𝐝𝐨 𝐬𝐦𝐚𝐥𝐥𝐞𝐫 𝐕𝐂 𝐟𝐮𝐧𝐝𝐬 𝐨𝐟𝐭𝐞𝐧 𝐩𝐫𝐨𝐝𝐮𝐜𝐞 𝐭𝐡𝐞 𝐬𝐭𝐫𝐨𝐧𝐠𝐞𝐬𝐭 𝐆𝐏–𝐋𝐏 𝐚𝐥𝐢𝐠𝐧𝐦𝐞𝐧𝐭? 𝐓𝐡𝐞 𝐚𝐧𝐬𝐰𝐞𝐫 𝐢𝐬𝐧’𝐭 𝐣𝐮𝐬𝐭 𝐨𝐮𝐭𝐩𝐞𝐫𝐟𝐨𝐫𝐦𝐚𝐧𝐜𝐞 - 𝐢𝐭’𝐬 𝐢𝐧 𝐭𝐡𝐞 𝐞𝐜𝐨𝐧𝐨𝐦𝐢𝐜𝐬. In venture, we’ve all heard that “small funds outperform.” That deserves its own deep dive (coming later 👀), but the real strength of smaller funds often gets overlooked: 𝐭𝐡𝐞 𝐚𝐥𝐢𝐠𝐧𝐦𝐞𝐧𝐭 𝐨𝐟 𝐢𝐧𝐜𝐞𝐧𝐭𝐢𝐯𝐞𝐬 𝐛𝐞𝐭𝐰𝐞𝐞𝐧 𝐆𝐏𝐬 𝐚𝐧𝐝 𝐋𝐏𝐬. With smaller funds, there’s only one path to wealth creation - carried interest. And that’s where alignment is sharpest. My analysis makes this clear. Looking across six real funds with different sizes and partner counts, I calculated the Net TVPI needed for each partner to generate $50M: • Fund A ($1.2B, 8 partners) → 𝟏.𝟓𝐱 Net TVPI • Fund F ($15M, 1 partner) → 𝟏𝟑.𝟓𝐱 Net TVPI - 𝟗𝐱 𝐡𝐢𝐠𝐡𝐞𝐫! This shows why smaller-fund GPs must chase outlier outcomes and bring a level of grit and hustle often absent at larger platforms. Even more telling is comp mix. For Fund A, 60% of the $50M comes from fees - guaranteed regardless of performance. For Fund F, 95% is entirely variable, fully tied to carry. And that’s the key. 𝐋𝐏𝐬 𝐨𝐧𝐥𝐲 𝐠𝐞𝐧𝐞𝐫𝐚𝐭𝐞 𝐰𝐞𝐚𝐥𝐭𝐡 𝐭𝐡𝐫𝐨𝐮𝐠𝐡 𝐜𝐚𝐫𝐫𝐢𝐞𝐝 𝐢𝐧𝐭𝐞𝐫𝐞𝐬𝐭 - and in smaller funds, that’s exactly where GPs focus. 𝐒𝐨, 𝐰𝐡𝐚𝐭 𝐚𝐫𝐞 𝐭𝐡𝐞 𝐊𝐞𝐲 𝐓𝐚𝐤𝐞𝐚𝐰𝐚𝐲𝐬? 𝟏. 𝐑𝐮𝐧 𝐭𝐡𝐞 𝐍𝐮𝐦𝐛𝐞𝐫𝐬: LPs should model net fund performance needed for each partner to earn $10–50M. Low hurdles from large funds or oversized partnerships weaken incentives. 𝟐. 𝐁𝐢𝐠 𝐅𝐮𝐧𝐝𝐬 = 𝐁𝐢𝐠 𝐅𝐞𝐞𝐬, 𝐒𝐦𝐚𝐥𝐥 𝐅𝐮𝐧𝐝𝐬 = 𝐓𝐫𝐮𝐞 𝐀𝐥𝐢𝐠𝐧𝐦𝐞𝐧𝐭: Large funds rely on fees, insulating partners from performance. In smaller funds, carry dominates — creating sharper GP–LP alignment. 𝟑. 𝐂𝐚𝐫𝐫𝐲 𝐢𝐬 𝐭𝐡𝐞 𝐎𝐧𝐥𝐲 𝐏𝐚𝐭𝐡: In small funds, GPs earn meaningful wealth only through carry — the same source of returns for LPs. This is just the start of Signals in the Noise 🤓

Entering a market isn’t guesswork. It’s math. And the equation is simpler than you think. When a new player shows up, incumbents move fast: → Drop prices until rivals run out of cash → Lock up distributors and suppliers → Flood the market with brand spend → Sign long contracts with penalties → Lobby regulators to raise barriers That’s 5 of 10 ways big companies protect their turf. For new entrants, fighting head-to-head rarely works. The smarter play is partnership. Instead of burning years and millions, you can borrow scale, credibility, and access. Here are 5 proven ways to do it: Co-distribution ⤷ Partner with a non-competitor who already sells to your target customers ⤷ You get reach without building your own network. Joint innovation ⤷ Collaborate with an incumbent to launch a new product ⤷ You share costs and inherit their credibility White-label supply ⤷ Sell your product under an incumbent’s brand ⤷ You scale quietly, while learning how the market really works Adjacent alliances ⤷ Enter through a related industry ⤷ Bypass the strongest defences Anchor partnership ⤷ Land one marquee partner ⤷ Their endorsement signals trust and opens doors The question is: how do you know if you have a real chance? Use the Entry Equation. Success Score = (Distribution × Incentive × Differentiation) ÷ (Switching + Regulatory + Capital) Score each factor 1–5 (5=Excellent): • Distribution Access • Incumbent Incentive • Differentiation • Switching Costs • Regulatory Barriers • Capital Intensity Interpretation: 0–5 = Low viability 6–10 = Conditional entry 11–15 = Strong entry Need an example? An EV battery startup partners with a Tier-1 auto supplier. Here's the assessment: • Distribution = 4 • Incentive = 5 • Differentiation = 5 • Switching = 3 • Regulatory = 4 • Capital = 3 Score = (4×5×5) ÷ (3+4+3) = 10 Interpretation → Conditional entry The path forward: reduce regulatory drag or switching pain This is how experienced CEOs think about market entry. Not just, “Can we compete?” But, “Who can we partner with to get through the defences?” Remember: Go-to-market partnerships aren’t a growth lever for new entrants. They’re the only way in. --------------------------- Was this helpful? Get cheatsheets like this each Wednesday. Subscribe to my free newsletter: https://philhsc.com ♻️ Repost this to help a founder or CEO assessing a new market ➕ Follow me, Phil Hayes-St Clair for more like this

20% of UK businesses are founded by women - > 2% get funding. If I were a female founder raising investment in 2026, this is exactly what I would do. 1. Register for SEIS and EIS immediately. These schemes let angel investors reclaim a chunk of their investment through tax relief, and for many angels, it’s the difference between a yes and a no. 2. Use LinkedIn properly. Most angel investors literally list their investments on their profiles. Search “investor”. Filter by industry, location, relevance. Start building relationships before you need the money. This is not networking. This is research. 3. Build your pitch deck around outcomes, not your passion. This is where most founders lose investors. They talk about how much they love the idea and forget to explain: – What problem it solves – Who pays for it – What the return looks like Lead with the outcome. Always. 4. DM people who’ve already done it. Raising investment isn’t some secret club. If someone’s raised before, you can find it on platforms like Crunchbase. Message them. Ask for advice. Build rapport. Then ask for introductions to their angels. That’s how doors open. Raising investment isn’t the only way to build a business. But if you’re a woman building something that does need capital, the system isn’t exactly designed to make it easy. So make it easier for yourself. Practical beats perfect. Relationships beat cold pitches. And visibility will ALWAYS beat waiting to be “ready”. Was this helpful? 💜 If we haven't met before, hi - my name's Amelia. I built a $4million revenue business off the back of my personal brand, now I post content about how you can do it, too. I've just dropped 52 videos detailing everything I did to get from 0 - 250k followers and $0- $4mil in revenue off LinkedIn alone. You can grab them here: https://lnkd.in/eauwCzGb

In many organisations, governance is something that gets added once strategy is set, structures are in place, and execution is underway. It becomes a layer of review rather than a core design input. That sequence creates predictable problems. When governance is treated as downstream, accountability is unclear, decision rights are contested, and oversight becomes reactive. Boards and senior teams find themselves responding to issues that were designed in earlier not caused by individual failure, but by structural omission. Effective governance works in the opposite direction. It is embedded early, shaping how authority is allocated, how information moves, and how risk is surfaced and managed. Done well, it enables rather than constrains decision-making. At senior levels, this distinction matters. As complexity increases, the cost of retrofitting governance rises quickly and the ability to correct course diminishes. Governance is not a compliance exercise. It is part of how organisations think, decide, and perform.

The biggest equity lessons I’ve learnt from working with 1,000+ founders and investors 👇🏾 After years supporting founders through Diversity-X and Impact Lawyers, a pattern keeps repeating itself: Equity problems rarely start when you issue the shares. They show up later, usually right in the middle of a fundraise. Here are the quick takeaways founders tell me they wish they’d heard earlier: 1. If no one owns your equity framework, it will get messy The strongest companies keep it simple: clarity, consistency, manager-level understanding, and a plan for when the pool needs topping up. If it can’t fit on one page, you don’t have a framework. 2. Dilution isn’t scary when you plan it Raise what you actually need. Manage burn. Fundraise once you’ve de-risked the business. Founders who do this stay in control. 3. Your option pool is your hiring engine Patterns I see most: Seed: 10–15% Post-A: ~10–12% Post-B: ~6–8% Review the pool before fundraising, not during investor negotiations. 4. Your first 10 hires set the precedent for the next 100 Their grants become the internal benchmark. Clear ranges stop chaos later. 5. After 10–12 people, percentages stop being useful Switch to a value-based model tied to salary and current valuation. Candidates want clarity, not decimals. 6. Vesting, leavers and exercise windows are where trust is won or lost Skip these and you’ll feel it in later rounds — and in due diligence. 💬 Final Thought Equity is a strategic tool, not just paperwork. It shapes hiring, retention, and fundraising. 📖 I’ve published the full, detailed article on Substack — you can read it here: 👉🏾 http://bit.ly/48AtX1U If you want help sense-checking your cap table or building an equity plan your team actually understands, drop me a message or email me at kevin.withane@impactlawyers.co.uk . Always happy to help founders build with confidence.

Having exited my first startup for $30m+, there is one thing I wish more founders knew about exiting You do not decide your exit when the offer arrives. You decide it years earlier in the boring moments. Most founders think the exit story starts with a banker deck or an inbound email from a big logo. In reality it starts when you're still fighting for product market fit and barely sleeping: • Every exit is built on a clean story. If your metrics, cap table and contracts are messy, you have already discounted your price. • Buyers do not buy potential. They buy proof. Predictable revenue, clear cohorts, low churn, real focus. Not vibes. • Strategic exits start as partnerships. If you want BigCo to acquire you one day, start by helping one of their teams hit a target this quarter. • Your board/advisors can get you the exit you trained them for. If you only ever talk vanity metrics, do not be shocked when they optimise for the wrong outcome. • You need a second brain ready long before you need a second bidder. Data room, FAQs, key risks. The speed you answer questions changes how serious you look. • Optionality is an asset. Multiple potential acquirers, a credible stay independent plan, calm energy. Desperation is expensive. • The culture you build shows up in due diligence. High churn, chaotic comms, no documentation. Buyers read that as risk, even if your top line looks great. An exit is rarely a miracle moment. It is usually just the day the market finally notices how disciplined you have been for years.

I send over 2,000 investor outreach messages a month, here’s what actually works… Fundraising isn’t just a numbers game—it’s a relationship game. Founders often push for a quick “no” because it’s easier than building a genuine relationship. Whilst fundraising and sales have a lot in common, treating investors like a sales prospect will never work. Here’s what I’ve learned: 1️⃣ Targeting matters – Spray and pray is over. Every message needs intent. You should be able to explain why you’re reaching out to that specific investor and how they align with your vision. 2️⃣ Genuine conversations beat pitches – Numbers are important, but real conversations win. Investors can sense when you're just pushing for a deal. Build relationships first. The trust will follow. 3️⃣ Content is king – Your message needs to be clear, concise, and exciting. Forget the fluff. Make sure you’re showcasing the unique opportunity you’re offering in a way that grabs attention from the first line. 4️⃣ Focus on value, not the ask – Investors don’t want to feel like a cash machine. Show them why this deal matters and how it aligns with their interests, rather than just asking for their money. Relationships win funding. Build those, and the deals will follow. #Fundraising #Investment #Founder #PitchDeck #AngelInvestor #VC #Mentality #Outreach

What happens when a project has no governance? 📉 Chaos. Confusion. And almost always—failure. Effective project governance is more than just structure—it’s the engine of accountability and alignment. Without it, even the best-planned initiatives can drift off course. Governance defines who makes decisions, how often, and with what authority. At its core, it comes down to two critical groups: 🧭 1. The Steering Committee Chaired by the executive sponsor, and driven by the project manager, this group meets regularly to: ✅ Monitor progress ✅ Resolve escalated issues ✅ Approve key changes (budget, scope, timeline) ✅ Keep the project aligned with strategic goals 💡 Tip: For strategic, high-priority initiatives—meet more frequently. In one project I supported (a merger between two major European banks), our CEO chaired daily 5:00 PM steering meetings. That level of commitment sent a clear message: 📌 This project is mission-critical. 🤝 2. The Project Core Team This is your day-to-day engine room—where planning, delivery, and collaboration happen. They work closely with the project manager to keep everything on track. 🔁 Together, these groups create rhythm, oversight, and—most importantly—momentum. Want to elevate your project’s success rate? Start by getting governance right. #ProjectEconomy #ProjectManagement #ContinuousLearning 🎯💡

Chatting with a founder today raising £250K generated some interesting points about. I thought it might be useful to share some takeaways: ⚡ Angels aren’t VCs – and they’re not all the same Unlike institutional investors, angels can vary a lot in terms of their activity, experience, and value. These days, lots of people have “angel investor” on their LinkedIn or Twitter bios, but not all of them are genuine or worth your time. As a founder, your time is precious, so do your homework—platforms like Beauhurst, Crunchbase, or the UKBAA members directory can help you figure out if someone’s really active or just dabbling. Check their portfolio to see if they’re serious. 👉 Location matters for angels It’s easy to overlook, but where an angel is based can make a difference. If your goal is to connect with top-tier venture funds, having angels who are well-connected and "on the circuit" in London (or your home city) can boost your chances of getting the right introductions. An angel from a smaller, less-connected network may not bring the same leverage. 🎯 Match your angel to your market Many angels are sector-specific, and while some might be open to anything exciting, targeting those who know your market will give you the best chance of not just investment but value-adding expertise. 🚀 Build trust early Trust is a critical factor for angel investors, and they’ll be asking themselves key questions like: ➡️ Does their background highlight their resilience and problem-solving ability to navigate future challenges? ➡️Does this founder deeply understand their market and business model? ➡️Have they demonstrated strong execution skills and a clear plan to scale? ➡️Are their financial projections realistic, and do they show a clear path to ROI? ➡️Is there evidence of traction or market validation ? To build trust, focus on the details that matter: be prepared, show mastery of your numbers, and provide evidence of market fit. Be transparent about risks and challenges, but pair this with a credible plan for how you’ll address them. Build multiple trust points by following through on commitments, proactively offering references or testimonials, and being open to constructive feedback. Investors are more likely to back founders who demonstrate professionalism, competence, and integrity from the outset. ⏩ Leverage networks Angels often invest with other angels or alongside funds, so finding clusters of well-connected people is key. Your goal should be to identify the lead domino—the first investor who can bring others in. A round tends to gain momentum faster when the angels already know and trust each other. ⚠️ Not all money is equal Sometimes a smaller ticket from an experienced, well-connected angel can bring you far more value than a big cheque from someone inexperienced or hands-off. Hope this sparks some ideas! If you want to chat more about any of these points, just let me know. #angelinvesting #startups #funding #founders #newableadvice

Most digital councils look important on the org chart. In reality, many are ceremonial rubber‑stamp forums with excellent catering and zero impact. If a governing council doesn’t have three things, it will not enable real digital innovation: 1️⃣ Autonomy: the right to decide, not just “recommend” If every decision has to bounce between functional heads and the C‑suite, you don’t have governance – you have a bureaucracy. A serious council can: →Approve investments up to a clear threshold →Kill or pivot projects that aren’t working →Reallocate resources between teams No autonomy = no speed. Just more PowerPoints. 2️⃣ Accountability: Whose neck is on the line? With autonomy comes responsibility. The council must be the single point of authority for digital transformation – whether the work sits in finance, sales, IT or marketing. That means: → Defining what success looks like up front → Reviewing a balanced scorecard and milestones in every meeting → Assigning named owners to corrective actions If it’s everyone’s responsibility, it’s no one’s responsibility. 3. Structure: small enough to decide, big enough to be taken seriously! There is a simple pattern: → The bigger the council, the slower the decisions and the fuzzier the accountability. Keep it: → Lean in size → Cross‑functional enough to avoid silos → Empowered to decide in the room, without “taking it offline” to ten other executives Otherwise, you get groupthink, time‑boxed monologues, and “let’s revisit this next month”. If a steering committee can’t: ❌ Say “yes” and “no” to money, ❌ Name who owns outcomes, and ❌ Make decisions in the room, …then it’s not a governance body. It’s a very expensive calendar invite.