🗳️ Monday Poll Results

Every Monday, we gather insights from our community through a LinkedIn poll. Sometimes, the poll decides which company to feature in our upcoming Tear-up series, and other times, it's all about market trends and company-related topics.

This week’s Poll

We took into account your valuable feedback regarding potential bias in our company selection for polls and the Stackrank.

With approximately 1000 deck submissions annually, we are committed to refining our selection process to efficiently spotlight the most promising ventures.

In our continuous effort to better cater to diverse investment interests, we sought to understand whether our community would appreciate a Tear-up series focusing on companies that may not fit the conventional 'Venture Scale' model but align more closely with personal passions and specific investment interests.

Here’s what they thought:

Let's consider an example scenario involving FTN Motion (listed in Column P of the Stackrank). While this business may not align perfectly with the typical Venture Scale criteria due to slightly lower margins, high upfront costs, and a challenging competitive landscape, it's undeniably an exciting company with significant potential:

• 2600 pre-registrations to purchase their bikes.

• Improving gross margins.

• Exceptional brand and branding.

• Strong EV/ESG appeal.

So, if you're passionate about motorbikes, electric vehicles, or similar interests, and you're seeking an investment opportunity with a higher likelihood of, say, 10x returns rather than the potential for 1000x, exploring FTN Motion in our Stackrank could provide valuable insights and perhaps even an investment opportunity that resonates with your personal interests.

FYI - the deal is listed on Equitise.

 😍 Tear-up Series

Xailient Final Tear-up 🚀

Exciting news! We've wrapped up our Xailient Tear-up series and consolidated all the findings for you below.

For new members, Tear-ups are the community-driven due diligence process we conducted on selected companies from our Stackrank. We analyse the company's product, business model and future growth prospects with experts, founders, and our community. The goal is to provide our community members with a solid understanding of the investment opportunity, enabling them to proceed with their own due diligence.

We organise our Tear-up series into five stages, each focusing on different aspects of the venture. This approach allows us to prioritise key information and progressively dive deeper into our analysis as our interest and confidence in a particular company grows.

1. Hype Reel Video: We start with a Hype Reel Video, giving you an initial glimpse of the venture.

2. Deck Review: Next, we assess the startup's pitch deck, delving further into its strategic vision.

3. Founder Interview: We sit down with the founders themselves, exploring their backgrounds, motivations, and vision for the company.

4. Expert Interview: Field experts share their insights, providing valuable perspectives on the venture's potential.

5. Community Session: We facilitate a community-led DD session where everyone can contribute their thoughts on the business and raise any questions.

At the end of this process, we gather all our findings into our 'Stackrank.' This serves as a comprehensive due diligence guide, answering your key questions about the company. It covers essential aspects such as the business model, funding history, and past performance, equipping you with foundational information for your independent due diligence.

🌐 Xailient Tear-up

Introducing Xailient: Revolutionising Edge AI

The spotlight of this Tear-up is Xailient, a deep-tech company specialising in developing edge AI tools for camera providers. One crucial lesson we've learned through this Tear-up is the importance of involving individuals from various domains to gain a comprehensive perspective on a company. In a multifaceted sector like Xailient's, no single person can possess all the necessary knowledge. This is why, given the highly technical nature of this venture, we've relied on the expertise of technical specialists. Massive thank you to the 20 community members who have contributed their insights to this Tear-up. We’d also like to shout out the experts, Jordan Duffy and Steve Allen, for their invaluable input.

Key Insights

Based on our findings, we recommend that your extended due diligence on Xailient should include a deeper dive into Xailient's IP moat and differentiation, as well as a comprehensive examination of their sales strategy to gain a better understanding of the velocity and targets.

Currently, Xailient is in the process of raising an extension round to demonstrate its go-to-market and product-market fit, laying the groundwork for a substantial Series A round scheduled for late 2024. If you're interested in obtaining more information or access to this opportunity, feel free to reach out to us at [email protected].

Tear-up

Deal Information

Here we provide an overview of Xailient, focusing on critical aspects such as their business model, product, and deal details - Hype Reel Video. 

Go-No-Go Information

In this section, we've simplified the due diligence process by condensing the most critical data required for your ongoing DD. We've conducted a review of Xailient’s pitch deck, where we unpack elements of Xailient's business model, growth strategy, and market fit - Pitch Deck Review. 

Founder Interview

We interviewed Xailient Founder Lars Oleson. In this interview, Lars addresses some of the key questions from the community and provides further insights into the company’s vision and strategy - Founder Interview.

Expert Insights

We've consulted AI experts and experienced angel investors to better understand Xailient's market positioning. These professionals bring years of experience and deep knowledge, offering informed views on how Xailient stands out - Expert Insights.

Community Review

Listen to what 20 CVC members think about Xailient. They offer direct and varied opinions on its prospects and challenges - Community DD Video. 

See responses to some of the key questions discussed during this community session here: Community Session - Founder Feedback

Summary

The insights gathered suggest Xailient is a promising Seed-stage Venture deal. If the company successfully enters the market with its security and compliance-focused approach at a swift pace, it has the potential to become the default Edge AI solution for camera chipsets worldwide.

While the Stackrank is majorly green, there are some key points that warrant further exploration. To continue your due diligence on this company, CVC recommends a more in-depth investigation into Xailient's IP advantages and unique selling points, as well as a comprehensive analysis of their sales strategy, including velocity and target markets.

Key links:

• Xailient Tear-up Stackrank

• Xailient Gdrive

• Xailient Deck

Credits for this Tear-up go to:

Jess Pattison, Christian Thaler-Wolski, Alycia Purcell, Isabella Jolly, Carl "CC" Bischoff, Manushree Bahukhandi, Gavin Preston, Yash Varma, Alessio Puricelli, Lauren Jarrett, Jordan Duffy,  Simon Scarf , Vicki Stirling & Haris Qureshi

😍 Want to contribute to our next Tear-up?

We’re still looking for people to join our next tear-up on Sonnant and Grow it Local.

Expert DD

We’re after industry experts and investment professionals to access their insights on specific investment opportunities. If you're a top founder, team member, or investor in any of the following areas, please reach out to [email protected].

• Grow It Local: Agritech, Education & Community.

• Sonnant: Qualitative/Quantitative Data in Sound/Audio, Large Radio/Music Distribution Companies, B2B SaaS Businesses.

Community DD

Are you interested in participating in a Community DD session? Get involved!

❓ How does it work❓

We provide everyone with access to the Stackrank, where they submit their own assessments. We then aggregate all the Stackrank assessments and allow each person to highlight 1-2 key items they'd like to discuss. We wrap it up with a comprehensive Q&A session.

❓What do the Community-DD Crew get❓

For their participation, they receive priority access to contribute or invest in any deal we discover, along with credits and an invitation to join our contributor WhatsApp group for venture deal insights and Ask Me Anything (AMA) sessions.

🦄 STACKRANK ADDITIONS

We’ve added two new companies to the CVC Stackrank:

Grow it local 🌱

Fostering community, sustainability, and tech-driven education, Grow It Local champions local food growth. With 30k+ members and $500k+ annual revenue in just three years, they're expanding both nationally and internationally.

🌍 Country: Aus

🎯 Type: Educational organisation

🎲 The Bet: Can this model replicate in other countries? Can it significantly extend customer lifetime value?

🌟 The Wow: Boasting 30k+ members, an exceptional team, and an incredibly loyal community.

Zolve 💰

Zolve empowers newcomers to the U.S. financial landscape, aiming to simplify complexities within the existing system. With global aspirations and solid backing, they're well-positioned for global success.

🌍 Country: US

🎯 Type: Neobank

🎲 The Bet: Can it achieve global scalability by leveraging its strong foothold and outperforming other neobanks?

🌟 The Wow: Impressive traction, reputable backers, and a top-notch team driving the vision forward.

📖 Weekly learning

During my journey as an investor, I've faced multiple challenges, each of which I've come to realise can be attributed to one of four key factors.

The Hard-Earned Lessons of Investing: Volume 1

👥 Founder Scuttlebutt: The crucial insights gained (or missed) about the people behind the business. For instance, in the case of Onqlave (Startup) (lost 65%) - an Antler company where the co-founders (CEO type and CTO type) met each other at the accelerator. I liked the CEO type a lot (and still do), but hadn't spent enough time with the CTO type. The result? Founder disagreement led to shutting down. Tip: engage in more conversations and build relationships before making investment decisions.

📊 Business Relevance: The importance of understanding and caring about the business's nature and operations. Take Uthermic (Startup) (lost 100%), for example, a company innovating in the self-managed heating and cooling space, like lotions that can keep you at body temperature in the snow. I had absolutely no idea about this market, and it seemed too far-fetched for me to bother looking into. The end result? Nine months later, the product was years ahead of its time, and my investment was gone. Tip: spend time talking to customers and potential customers - consult people you know in the industry you’re considering for investment.

💰 Investment Pressure: The consequences of yielding to external pressures in investment decisions. Consider Knosys (ASX) (lost 40%), where someone with a reputation and interest in a company was likely to get on the phone and start pumping up an investment. In essence, they were pumping for a reason. The end result? Certain contracts fell through, growth slowed, and I sold back to the likely pumper at a loss. Tip: take three days off to ensure your conviction remains the same when calm as it was when hyped.

⏰ Timing the Investment: The critical role of timing in the success or failure of an investment. Reflecting on Bravura Solutions (ASX) (lost 65%), where investments kept dropping, despite good fundamentals. The end result? Too much Buffet, not enough Bill. Tip: think about your personal strike price and exit sinking ships when necessary.

📣 GET IN TOUCH 

🎖Calling all current and future angels

Access global, pre-vetted, VC-quality deal flow and supercharged Due Diligence: pop your name down here.

🎯Calling all pre-seed/seed Ventures

Submit your decks for a free public or private review to support your capital-raising or improvement efforts: pop your name down here.

✨ VALUE ADDS 

🗝 Experienced Investor Certificate (EIC)

Not all of us can invest in every deal type globally and that's because we don't all have $2.5m in net assets or have earned $250k/pa for the last 3 years.

Some of us however love venture and know lots about it. If that sounds like you, let me know and I can hook you up with an (EIC) form that allows you (if you pass the test) to invest in all kinds of deals (including through syndicates).

Choose the EIC link here.

Since posting opportunities for accessing some of the investment community roles through Carry, I've had a number of questions come through about how to calculate it.

Please find an example calculator here.

Often people think Venture is uber-risky or out of their depth. It's not true, anyone can do it - you just need a model to get you going. Check out the Venture portfolio model attached - and reach out if you need more context!

Grab your model here.

At the Community VC, we believe investing should be accessible to everyone, not just those in the know. We believe everyone deserves the opportunity to invest and contribute to vetted ventures that move the world forward.

Jock 

Please do not take this as Financial advice or a guide of what any outcome will be. This isn't financial advice, nothing in this email is, I am not guaranteeing or recommending an investment or outcome in anything. I am simply just listing opportunities I believe should be accessible to everyone.