Mike Shapiro

🚀 Early-Stage VC Is Shifting: Bigger Seed Rounds, But Fewer Graduates 🚀 I've been following the latest Aumni data closely, and the trends in early-stage venture capital are becoming increasingly pronounced: Seed deal sizes are climbing—the top quartile is now surpassing $7M. The number of deals is contracting: We're seeing fewer seed rounds, and an even steeper drop in the number of startups progressing to Series A. Graduation rates from Seed to Series A have sharply fallen—from 41% for companies seeded in Q3 2020 to just 12% in Q1 2023. There’s been a slight uptick, but it’s still far below historic norms. It's clear to me: the environment is more selective and demanding than ever. Startups may secure bigger funding rounds, but only if they meet increasingly high benchmarks. Progressing to the next stage is taking longer, and the “spray and pray” approach is quickly becoming a thing of the past. 🔮 My Prediction: In this environment, founders who can balance bold vision with operational excellence will pull ahead. At Jet Ventures, we're betting on teams who leverage knowledge, data, and AI in their respective domains and laser-focused on execution—especially those building innovative solutions in industrial and tech-heavy sectors. Going forward: Demonstrable product-market fit and clear, tangible progress will set the top startups apart. VCs with real operator experience and industry expertise—like our team at Jet Ventures—are in the best position to support and guide the next generation of champions, particularly in Central Europe. For both founders and investors, it’s a time for disciplined execution and outsized ambition. #VentureCapital #Startups #SeedStage #SeriesA #InvestmentTrends #JetVentures #VCInsights https://lnkd.in/eHHcXyUi

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CoLaborator Capital Backstop™ System's Owners & Operators Focus. Last week I shared a post introducing the CoLaborator Capital Backstop™ System and the idea of creating a more collaborative approach to growth and acquisitions. A few people asked a good question afterward: “What does this actually mean for operators and business owners?” Here’s the reality we keep seeing across manufacturing, logistics, and distribution: Great businesses often reach a point where the next stage of growth becomes difficult to pursue alone. Sometimes it’s because: • expansion capital is limited • acquisitions require additional partners • leadership bandwidth becomes stretched • succession planning starts entering the conversation • strategic opportunities appear that are bigger than one company can pursue independently At the same time, there are many operators, searchers, and investors actively looking to partner with strong companies in these industries. The challenge isn’t opportunity. The challenge is connecting the right people in the right structure at the right time. That’s the reason we began developing the CoLaborator Capital Backstop™ concept. The goal isn’t to act like a broker or intermediary. Instead, the idea is to build a collaboration platform where operators, owners, and acquisition partners can explore things like: • strategic partnerships • tuck-in acquisitions • roll-up participation • growth capital opportunities • succession pathways that preserve leadership continuity We are currently spending a lot of time speaking with leaders in: Manufacturing Logistics Distribution Industrial Services If you’re an operator or owner in one of these industries, I’d genuinely enjoy hearing about what you’re building and where you see the next phase of growth going. Sometimes the most valuable thing is simply starting the conversation early. — Virgil Andry Founder & CEO CoLaborator, Inc. thecolaborator.com #manufacturing #logistics #supplychain #entrepreneurship #partnerships #businessdevelopment

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An emerging VC manager's fundraising lessons... the first two funds are a grind. Now, we’re on our third fund, it feels like we’re almost over the hump, but fundraising never gets easy for most of us. I want to congratulate the emerging VC firms presenting at this year’s RAISE Global conference. As former RAISE presenters, and (soon-to-graduate) emerging managers, we thought we’d share this LP Translator, a lighthearted guide to decoding what LPs really mean during the fundraising process. Fellow GPs, which ones did I miss? 👇 The LP Translator 📣 "Let’s stay in touch.” Translation: We’re not interested. “We want to see your track record develop.” Translation: Either we don't believe in your strategy, or we’re focused on managers with more buzz. “We’re not allocating to new managers right now.” Translation: We’re not allocating to you right now. "Show us your deals so we can get to know you.” Translation: We’d like free co-invests if you get something hot. “We need to see more DPI before we commit.” Translation: We don’t really understand VC, but we’re pretending to. “We’re fully allocated for this year; check in early next year.” Translation: Next year we’ll still be fully allocated (just not to you). “Call us before final close.”  Translation: I’m too polite to say no at this time, so I’m kicking the can down the road. “Your fund is too small.”  Translation: Okay, that one might actually be true (for some LPs). “We went through your data room and want to meet face-to-face.” Translation: We’re genuinely interested, keep going! “Can you send us your LPA for signature?” Translation: Let’s go! 🚀 -------------------------- Fundraising is a long game, longer than we ever expected. We're now seeing how LP relationships are built across several funds, not several months. If they’re investing time to learn about you and your strategy, that’s your best signal of real interest. #emergingmanager #venturecapital #LP #RAISEGLOBAL

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Excited to share that Inspired Capital is leading Remark’s $16M Series A. We’re joined by our friends at Spero Ventures, Shine Capital, Stripe, Neo, and Visible Ventures. Despite trillions spent on e-commerce, the single most effective driver of sales — the in-store expert — has never been replicated online. Remark changes that. Their AI personas, trained by over 60,000 human product experts, embed directly into brand storefronts to turn passive browsing into confident buying. I first met Theo last year at a small dinner I hosted on the future of commerce. His take on blending human insight with AI to unlock authentic shopping experiences was one of the most thoughtful I’d heard. As we got to know the founding team, it became clear that their ambition was to redesign today’s commerce infrastructure — and that we needed to be along for the ride. Thrilled to welcome Theo Satloff 🍊, Carl-Philip M., Ian Patterson 🍊, and the entire Remark team to the Inspired portfolio. TechCrunch: https://lnkd.in/ewFxNwjt

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Growth and profitability are not opposing forces. If anything, they're sequential. Once your unit economics work - every additional customer can spread fixed costs thinner, every transaction can make ops more efficient, and every bit of volume can give you better terms with suppliers. Solving for fundamentals will ensure growth makes you profitable, and doesn't become the thing that keeps you from it. Shreyans wrote a great piece on it, link in comments.

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Regular listeners of Acquiring Minds know that while we celebrate fast growth and big numbers, we also champion long-termism, going slow to go fast, and success factors that go beyond EBITDA and IRR. So we were excited for today's interview with Brendan Duebner. Brendan's vision for his business is not to grow as big as possible. Instead his target is a certain, modest size: 20 to 40 people. This number is akin to the tribes of prehistory, or Army platoons. It's a number where mutual dependence, shared purpose, and cohesion more naturally occur. All properties sorely lacking in modern life. Now, Brendan is also a capitalist. Building wealth is certainly part of his project as well. But it is neither paramount, nor unbounded. He seems to already perceive something that many guests do not perceive before they get into their businesses, but only later learn: That there is deep gratification in the impact you can have on your employees as owner of a business. Brendan bought a very small business — just $300k of SDE, 4 employees — and we talk about how his long-term vision influences his thoughts on size. We also unpack his deal structure; listen closely there to learn how structure can mitigate the risk in the acquisition of such a small business. Here he is, Brendan Duebner, owner of IT Total Care. 👉 link to interview in comments below

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Middle market deal activity continues to tell a very clear story: where you operate matters just as much as how you perform. Business services are leading volume, averaging ~6.2x EBITDA. Valuation is no longer just about size or profitability, it’s about positioning within a broader platform strategy. Companies that fit into consolidation themes or operate in resilient, non-cyclical sectors are seeing outsized premiums. At Minerva Valuations, we’re seeing this play out in real time across mandates. Let’s talk! #MergersAndAcquisitions #BusinessValuation #LowerMiddleMarket #RollUps #MinervaValuations

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Proud to share a big milestone for SuperCircle - congrats to the team on their $24M Series A led by Foundry ventures! Retail’s waste problem has become unavoidable. Returns, excess inventory, and unsellables now cost U.S. retailers $50B+ annually, and regulation is forcing brands to finally account for what happens after products fall out of the supply chain. Their full-stack, AI-powered platform sits inside the mess — factories, warehouses, stores, returns — turning waste from a cost center into a value generator. Today they work with 75+ brands and have already diverted 6M+ textiles from landfill. Congrats to Founders Chloe Marie Songer, Stuart Ahlum and Phong Nguyen and the entire SuperCircle team!!

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So excited to announce this partnership with Marie Rocha & Realist Lab. I have known Marie for over a decade and the work she’s doing for entrepreneurs. She’s been at the forefront of building the next wave of founders and I’m excited to share What VCs Won't Say with the community. Also, big shoutout to the True Ventures team for supporting Realist Lab and I in this effort to educate more founders. Puneet Agarwal

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At Provest Equity Partners, we focus on building enduring platforms at the intersection of industrial scale, advanced technology, and responsible innovation. Our work with Advanced Process Solutions (APS) reinforced a core belief: value is created when operational rigor meets mission-critical manufacturing. That same philosophy continues to guide our portfolio construction as we expand into businesses enabling more efficient, lower-impact production models across industrial and energy-adjacent markets. We are now preparing to onboard our next platform investment—one that reflects where long-term capital is increasingly converging: materials, manufacturing, and energy-enabled technologies that deliver both commercial durability and structural relevance for the future economy. As operator-investors, we commit capital patiently and partner deeply with management teams to scale responsibly, allocate capital prudently, and compound value over time. We’re excited about the road ahead and appreciative of the continued trust from our LPs and partners. More to come. #ProvestEquity #OperatorInvestor #GrowthEquity #IndustrialTechnology #AdvancedManufacturing #SustainableInnovation #EnergyTransition #PlatformInvesting #LongTermCapital #PrivateMarkets

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We at StandUp Ventures are thrilled to be partnering with Maeghan and Michael in Velix's pre-seed round alongside Luge Capital and Accelia Capital! Velix is building the financial operating system for third-party logistics providers (the companies that make sure the stuff you buy online actually shows up at your door 📦 ). The back office of a 3PL is chaos. Carrier invoices can run hundreds of pages. Reconciliation that takes days. Every week. Discrepancies routinely written off because investigating them costs more than they're worth. It's spreadsheets and VLOOKUPs all the way down. Velix changes that. Automating reconciliation, flagging discrepancies with root cause, and turning write-offs into recovered revenue. Beyond the product, we've been so impressed by how intentionally Maeghan and Mike are building Velix. Deep expertise paired with genuine humility, rigorous customer discovery, and a maturity around company-building that's rare at this stage. Check out our investment thesis in the comments 👇 🚀

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One of my agentic commerce predictions for 2026 in this recent Forbes piece: Matt Nichols, General Partner at Commerce Ventures, notes that the mechanics are already in motion. Looking ahead, he predicts that this year, "Agentic commerce transaction volume reaches meaningful levels as consumers advance from research to buying on AI platforms. 2026 will be the year that transactions are completed in these platforms." To this prediction, Nichols adds another: retailers will be forced to build "super-feeds" specifically for AI platforms. “These data feeds may involve monetary transactions that could include payments to AI platforms or payments to the retailer/brand (depending on balance of power).” https://lnkd.in/g65RAerA

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Excited to announce Timber Grove Ventures' investment in Jampack AI Operational complexity has quietly destroyed some of the most culturally significant consumer brands. I’ve seen it firsthand, growing up in a family-owned food business and later investing in iconic consumer brands. Consumer demand is meaningless if operations cannot support it. Jampack AI changes that. Their agentic workflows automate wholesale operations end to end, giving brands the infrastructure they need to scale and endure. We’re proud to back Matteo Rossant, Rezi Tsulukidze, and the entire Jampack team in their Seed round alongside Maveron. If you’re a high-growth consumer brand navigating operational complexity, I’d love to connect. Press release here: https://lnkd.in/ea54Cb4M

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As founders scale, financial leadership needs evolve just as fast as product or team strategy. In this article, Jason Anglin does a great job outlining when a startup needs a fractional Director of Finance vs. a fractional CFO. And why getting that choice right can save both time and capital. Worth a read for founders approaching their next growth stage.

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🔔Announcing the 2025 Vertical SaaS 50!🔔 Today, Avid Ventures, Headline, and Bain Capital Ventures recognize 50 new emerging vertical SaaS companies. 🏭 This year, over a third of the honorees are solving problems in the physical world including Caspian, DocUnlock, and Revenue Vessel in logistics, Complement, DiploAI, and Forgepoint in manufacturing, Ichi in construction, and GridStrong, Lumora, and Strobe Power in electricity/utilities. 📝 As in prior years, several honorees are building in the broader professional service landscape including &AI, Crosby, and PointOne in legal, Mako AI in financial services, and Foundation, Novella, and Strala in insurance. 🩺 Most notably, we've seen an increase in healthcare companies like Charta Health, Ferry Health and RoVR as well as Zoomlogi in pharma, Corner Health and Duet in nurse practioner practices, ExaCare AI in senior care, Onos Health in behavioral health, Grove AI in clinical trials, and Lassie and Rondah AI in dental. If you are building a vertical SaaS company or have recommendations for our 2026 list please reach out - we'd love to hear from you!

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Access changes everything. Lowering the Jetstream Venture Fund minimum to $5,000 creates a new entry point for people who want exposure to high-growth companies. Excited to see where this goes. Full details in the press release below.

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HealthVC x Lusha: Unlocking Smarter Fundraising and Sales Workflows We’re thrilled to announce our newest partnership: HealthVC has teamed up with Lusha to bring next-gen data and prospecting tools to founders, fund managers, and operators across our community. Lusha recently launched a powerful suite of AI-powered features that redefine how go-to-market teams research, prospect, and convert. Now those capabilities are coming to HealthVC Pro subscribers. ✨ With this partnership, you’ll be able to: Surface real-time, accurate, and compliant B2B contact data Use AI Prospecting Chat to instantly uncover new investor or customer leads Tap into CRM-triggered recommendations to stay one step ahead Turn insight into action with Sales Streaming, Lusha’s smarter, connected selling framework. But Lusha’s superpower isn’t just the AI; it’s that the AI sits on top of best-in-class data. That means every signal, every recommendation, and every lead is not just fast, it’s trustworthy. At HealthVC, we’re building more than a newsletter; we’re building the operating system for venture, and this partnership helps our members move faster, pitch smarter, and close better. Available now to all HealthVC subscribers, link in comments.

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From the beginning, we believed Lumana was building much more than a smarter surveillance tool. Lumana's platform reflects the next evolution in video intelligence — physical AI. This approach enables systems to go beyond basic detection capabilities to understanding context, infer intent, and deliver real-time insights that improve safety and operations at scale. Further, we decided to take the longer and more difficult direction of building a whole new generation and fully featured Video Management System (VMS). With the company’s $40M Series A, led by our friend Peter Wagner from Wing Venture Capital and our seed partners from SCAPITALVC, we’re doubling down on a platform that’s already proving its value in the real world. We are serving now close to ten thousands enterprise cameras in production! Founders like Sagi Ben Moshe bring a rare mix of vision and execution to the table. From our earliest conversations as an EIR at Norwest, it was clear that Lumana had the potential to reshape how organizations use video. Congratulations to the team on this well-deserved milestone. https://lnkd.in/gwHdaGPZ

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