Welcome to the June Edition of Soapbox!

That’s right! It’s officially summer 🥳 Bring the sun, bring the deal flow, and bring on weekend patio happy hours. There’s a lot that happened in the first month of the new season so here’s the rundown. 🏃🏼‍♀️

Roaring Kitty is back! You probably remember the GameStop stock surge of 2021 brought on by Roaring Kitty mobilizing Redditors to buy the stock. Well, he’s back. Shares kicked off trading on Monday above $40 each, soaring more than 70% from Friday, though they dipped a bit later. The excitement started when a Reddit account linked to Roaring Kitty (aka Keith Gill) shared a screenshot showing he owns 5M GameStop shares, nearly 2% of the company, and worth over $100M 🌈

The beef was brewing between Drake and Kendrick this month as the pair both dropped various diss tracks about each other. ⤵️

The US Department of Justice filed a lawsuit against Live Nation this month, alleging that the company used illegal tactics to maintain a monopoly over the live music industry. Live Nation released a statement on their website calling the suit “absurd.” Live Nation, the parent company of Ticketmaster, came into the spotlight early last year when ticket sales for Taylor Swift’s Eras Tour went live and were a hot mess. The company also had an extensive data breach this week, with the personal details of 560M customers being held hostage by hackers. YIKES 😬 Change your passwords folks.

Summer TV and movie season is officially upon us! Catch us watching the new Bridgerton season that just dropped, Challengers starring Zendaya, and counting down the days till Season 3 of The Bear hits Hulu. 🐻

Here’s what we’re looking forward to this month:

• Pride Month! 🏳️‍🌈

• Juneteenth

• Father’s Day 👨 Get those gifts soon!

Soapbox of the Month

Your Guide to Corporate VC: Is It the Right Path for You?

Written by Emily

Read and share the FULL VERSION of this Soapbox moment on Medium.

Ever thought about where you fit best in the VC ecosystem? With various types of venture capital funds that exist today, it’s crucial to understand where your career goals align as you’re breaking into VC. From the dynamic pace of early-stage funds to the strategic depth of corporate venture capital (CVC), the world of VC is vast and varied. In this article, we’ll explore why working in corporate VC might be the perfect choice for you, along with insights into the benefits of different types of VC funds.

Let’s dig in to the pros and cons of working at a CVC and see if it’s a fit for you.

The Perks

• No LPs! Some CVCs have separate funds that raise outside capital, but many invest off of the corporate balance sheet. Without the need for limited partners, this removes the pressure of managing LP relations. Additionally, investing off the balance sheet allows for “patient capital,” according to Jacob Kruse at Delta Dental of Iowa’s CVC arm. “Of course, we want quick results and a large return, but we’re willing to embrace a longer time horizon for companies we believe in, especially if we’re also customers.” This also leads me to my next point.

• No fundraising! One of the significant advantages of working in CVC is the lack of fundraising pressure. This allows you to focus more on identifying and nurturing promising startups rather than constantly seeking capital.

• Access to in-house subject matter experts: CVCs provide access to industry experts within the company who can help with your due diligence efforts and portfolio support. This can greatly enhance the quality of investment decisions and overall success.

• Diverse investment opportunities: In CVC, the goal is not just to find unicorns but to identify solid investments that align with corporate strategic initiatives. CVCs look for investments that can also become strategic partners or future mergers and acquisitions. This approach broadens the scope of potential relationships and benefits beyond just financial returns. The collaborative mindset in corporate venture focuses on finding ways to work together rather than just seeking the highest returns, fostering a more supportive environment.

• Better employee benefits: CVC roles often come with superior benefits compared to smaller funds with less capital and resources. This can include better health insurance, retirement plans, and other perks that enhance job satisfaction and security.

• Corporate exposure: CVC is especially beneficial for those early in their careers, providing a comprehensive learning experience that includes both corporate and startup environments. This dual exposure helps build a versatile skill set. Working in CVC gives you a deep understanding of corporate life and operations. This experience can be valuable whether you continue in VC or move to a different career path later on. Additionally, unlike many entry-level jobs, CVC roles often involve direct interaction with high-level executives. This provides excellent networking opportunities and insights into corporate strategy.

• Career advancement opportunities: It’s incredibly difficult to land an analyst job at a fund with a clear pathway to becoming a partner. CVC roles might offer better paths for career progression. You can upskill, receive promotions, or move to different parts of the company, providing flexibility and growth potential.

Now let’s take a look at some of the drawbacks of working at a CVC. When considering some of the disadvantages, be sure to ask questions in interviews to understand how CVCs might handle some of these drawbacks. Remember that not all CVCs are built the same.

The Cons

• No carry: Unlike traditional VC funds, CVC roles often do not include carried interest, or “carry.” This can be a significant drawback for those looking to maximize their earnings based on the success of their investments.

• Slower pace compared to early-stage VC: CVCs can move at a slower pace, making it hard to compete in deals that require quick closures. The bureaucratic nature of large corporations can delay decision-making and hinder timely investments.

• Limited exposure to fundraising dynamics: Working in CVC may provide less exposure to the intricacies of fund math and the fundraising process. This can limit your understanding of essential VC functions and dynamics.

• Passing on great opportunities: CVCs often have to pass on promising opportunities that do not fit within the overall corporate strategy or thesis. This can be frustrating, especially when you see high potential in those opportunities.

• Corporate innovation cuts during tough times: When markets are bad, corporate innovation and venture investing are typically some of the first areas to be cut. Companies may struggle to see the value in a high-risk investment strategy that takes decades to yield returns.

• Challenges in gaining support and advocacy: It can be difficult to gain support and advocacy within a corporate structure. Corporates are often not as familiar with the VC mindset, leading to a steep learning curve and pushback on deals due to a lack of understanding of VC philosophy. This isn’t always the case, so be sure to ask about this topic during interviews.

Jumping into the world of venture capital can take you down a lot of different paths, each with its own set of perks and challenges. CVC is great if you’re looking for stability, strategic insights, and a solid learning environment, especially when you’re just starting out. But, like anything, it has its downsides.

It’s all about finding what fits you best. Knowing the ins and outs of corporate VC can help you decide if it’s the right move for your career goals. Whether you’re drawn to the fast-paced excitement of early-stage funds or the strategic play of CVC, there’s a lot to choose from. So, take a good look at what each type offers and go for what feels right for you!

CAREER 👩‍💼💼

If you read our last Monthly Report, you may have noticed that we have been reading The Young VC’s Handbook by Sakib Jamal. It’s a crowd-sourced book with actionable advice from young VCs across 50 different firms and a MUST READ for early career VCs.

This book does a great job at covering all of the important topics and concepts you’ll face in the first year or two of your career, especially as an analyst through principal.

We wanted to highlight a couple of our favorite sections that cover the MOST important parts of your career:

• Week 3: Art of the First Call

  • Master your fund’s elevator pitch, learn how to identify stellar founders, and learn how to talk about deal flow!!

• Week 4: Due Diligence

  • Know how to think about market sizing, competition, and other key metrics

• Week 5: Memos & Winning Buy-In Internally

  • Dare we say that this might be one of the most important skills you will learn to build a successful career in venture. Learn how to build conviction around an investment and sell it to your team!

• Week 6: Term Sheet & Deal Structuring

  • You need to understand the basics of VC math and term sheets in order to make smart investments. Invest time into learning this!

• Week 10, Day 4: Productizing the job - what is the VC tech stack?

  • Having a great tech stack is going to help you out immensely. Try to automate where you can. Invest the time now so that you don’t have to do it later as you get busier.

There’s a ton of great content out there for building your career in VC, but this is a great comprehensive breakdown (and in book format! ❤️❤️❤️)

CULTURE 🌈

Meagan Loyst's recent LinkedIn post got us excited about nostalgia trends again. We've been obsessed with this idea lately, and we're convinced that society is inching towards a tipping point...

Could it soon be "cool" to be offline and disconnected? As Meagan pointed out, Gen Z is bringing back nostalgic trends—think flip phones and digital cameras making a comeback on nights out. This pushback against a hyper-connected world is also popping up with trends like flip phones, private stories, and “The Monthly R.E.P.O.R.T.”

Enter the “de-influencers” telling us to quit overspending and step back from online shopping sprees. Thought leaders and podcast hosts are opening up about how overconsumption and access to social media fuels our generation's anxiety and depression. You’ve seen phrases like “the attention economy” and how it’s ruining our livelihoods and wellbeing. At some point, the pendulum is going to swing the other way again, right? I guess not, if Zuck and Bezos have anything to do with it… God help us all.

Here’s what we imagine for a more “disconnected” future 🔮

• 🧑‍🤝‍🧑 “small circle” features on social media that help you engage with much smaller and more niche audiences - like close friends and family.

• 🛑 More parents banning phones or social media until late teenage years

• 📖 More book clubs or dinner parties and other niche small groups to make friends and develop connection

• 🔍 Maybe a new social media platform that follows a different model than what we’re used to. Apps that highlight our experiences, interests, and hobbies, in a new way.

CAPITAL 💸

Despite a rough fundraising environment for vc funds, a few Tier-One VC firms are still raising big funds!

According to the Financial Times, General Catalyst is nearly wrapping up a $6B fund. Meanwhile, Andreessen Horowitz announced it raised $7.2B to be allocated across five different funds. If General Catalyst hits its target, the two firms will have pulled in a combined $13.2B, making up about 44% of all LP capital committed to US VC funds this year.

There’s been lots of conversation around investing in emerging managers alongside the dialogue of big funds continuing to eat up market share. According to Pitchbook, “The share of US fund closings by “emerging” managers—defined as GPs with three or fewer successful fund launches—has shrunk to 44.7% of total fund count and 15.7% of total capital raised, down from 55.0% and 23.4%, respectively, for the 10 years ending in 2019.”

Our take: The numbers don’t lie. LPs are most definitely reeling back the amount of capital being deployed in emerging managers despite online narratives. As a GP “without a track record,” other elements like operating experience, geographic differentiation, thesis differentiation, etc., rise in importance. We think that as small funds consolidate and larger funds eat up LP dollars, the quality of emerging managers will increase. Hopefully, this will lead to smaller funds that are easily returned 3x+ over for LPs and switched back to emerging managers' favor.

From Our Feed to Yours

Tweets, Memes, and other things from our feed that gave us a laugh.

 https://x.com/netcapgirl/status/1797667623930671544

Thanks for supporting Soapbox!!! Have something you want us to talk about, or want to connect? Drop us a note at [email protected] 

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