EverythingStartups Weekly

For funds, founders, and startup & VC enthusiasts.

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EverythingStartups
February 14, 2025

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The Venture Capital Apocalypse…Is It Here? 🟣

A post by carried no interest that went viral this past week laid it out bluntly: venture capital is in crisis mode. The long-held assumptions that propped up the asset class are crumbling, and the data is brutal.

Is it really an “apocalypse”? You can decide that for yourself, but let’s take a look at the main key points from his post.

(you can see the charts he uses to prove his point in the post itself).

Too Many Orphaned Software Companies

The venture capital asset class is at a breaking point. Orphaned (or zombie) VC-backed software companies are everywhere, and the long tail M&A outcomes that drive venture returns are vanishing.

How We Got Here

It started with rising interest rates. As rates climbed, public market valuations dropped, and private equity investors grew more skeptical. This led to an early decline in M&A activity, the only reliable way for VCs to realize returns.

What happened next?

  • M&A dried up as public markets prioritized profits over speculative growth.

  • Acquisitions that did happen in 2021 started to fail.

  • Exit values broke from their long-term trend. For decades, VC exits followed a predictable upward trajectory. Now, there's a massive gap between expected acquisition prices and actuals, especially in software.

  • Exit multiples remain stubbornly low. Whether it's growth-stage software companies or the "Rule of 40" cohort, valuations are painful. In private equity, I'm seeing some brutal adjustments—ones that are tough for founders to stomach.

The Consequences

For VCs, this is dire. The entire asset class relies on those rare, high-multiple exits to deliver returns. But when those outcomes disappear, it triggers a brutal chain reaction:

1️⃣ VCs invested at sky-high valuations.
2️⃣ VC-backed software acquisitions are plummeting.
3️⃣ Down rounds are skyrocketing.

The result? LPs aren’t getting their money back. Venture firms are struggling to generate distributions, and unless something changes, this funding cycle could be one of the worst in recent history.

Is It Really Though? - Opposing Views

On the other hand, we have VCs who think this is the golden era of VC. Joseph. F, a General Partner at Emergence Capital, believes that finding high growth startups has never been easier.

Here’s what he has to say:

  • Finding high-growth startups has never been easier. Thanks to better data and software, VCs can spot winners faster.

  • Startups are scaling at record speed. Hitting $4M ARR in a year is becoming the norm. Bolt shot from $0 to $20M ARR in two months, while Cursor (Anysphere) hit $100M ARR in just two years.

  • But actually getting into deals has never been harder. With every VC (and their AI-powered associates) throwing term sheets, it's a brutal fight for allocation.

VC’s Great Bifurcation

With ZIRP-era fundraising gone, the industry is splitting into two camps:

1️⃣ Specialists (e.g., Emergence Capital): Betting early on specific stages, sectors, or strategies. They need strong conviction before traction kicks in, but if they’re right, the upside is massive.

2️⃣ Capital Accumulators: Playing the index game, backing every winner regardless of price. They sit back, deploy across an index, and ride the wave of AI-powered hypergrowth.

The Best Time to Be a VC (or a Founder)

2024–2029 will be the golden era of venture investing. Every software category will be rebuilt with AI, and the winners will scale faster than ever before.

Yes, VC will eventually change, maybe even disappear after AGI, but for now, the game is better than ever. So stop saying venture capital is dead. Don’t hate the VC, hate the game.

Final verdict if VC is dead or not: It’s always about perspective.

PS: Looking to raise for your VC fund?

Read more here on the top criteria LPs use to evaluate VC funds (sourced from conversations with over 100 LPs in 2024.)

 
This Week in VC Marketing 🟣

It’s tough out there, and the competition isn’t about die down anytime soon. VCs need a strong brand as much as founders, and it’s not just us saying that for fun.

So we made a one-pager on how to make the most out of your content so that it starts working for you. Organic content is a long-term game, but once you’ve built up your assets and get the momentum, you’ll see it was worth the effort. All of the top-tier VC brands use the strategies and channels outlined below, now it’s your turn!

PS: founders are also wondering….

 
Linkedin Post Analysis: Why They Went Viral 🟣

Insider thoughts from our team on why certain posts go viral. Use these tips for your own posts!

Here’s our expert thoughts:

Why It Works

✅ It starts with a contrarian hook. The first line challenges the audience by asking, "Why is no one talking about this?" This creates intrigue and signals that the post will reveal an overlooked insight.

✅ It breaks down a viral success in a fresh way. Many people assume Duolingo’s social media success comes from its owl mascot or pop culture references, but the post flips the narrative, arguing that the real reason is the lack of bureaucratic red tape.

✅ It uses repetition for emphasis. The phrase "Read that again." forces the reader to pause and absorb the key point: the people making the content are the decision-makers.

✅ It contrasts winners vs. losers. The comparison between Duolingo’s fast-moving team and bureaucratic competitors makes the argument sharper and easier to digest. Bullet points highlight the inefficiencies of traditional corporate marketing.

✅ It speaks directly to a common fear. The post acknowledges that brands avoid risk because of the fear of making mistakes. But it flips that logic: playing it too safe is actually more dangerous. The phrase “Fear is expensive” is a powerful mic-drop moment.

✅ It ends with a clear takeaway. "The best marketing happens when you hire good people and get out of their way." This simple but impactful conclusion ties everything together.

The Template

Why is no one talking about why [topic] actually works?

It's not [common assumption]. It's not [another common assumption]. It's not even [unexpected factor people think matters].

It's because [unexpected insight].

[Short, punchy sentence emphasizing the key point].

[Examples that contrast success vs. failure].

Believe it or not, I get it. [Acknowledge common fear].

But you know what's scarier? [Flipping the fear into a bigger risk].

You can't [desired outcome] by [common mistake].

[Mic-drop statement reinforcing the lesson].

No try crafting your own using this template 😉 


VC Internships Galore 🟣

🚨 We’ll soon be adding VC jobs in the USA & Europe.

Spring MBA Intern - Workshop Venture Partners
Location: Boston
Apply here 

Venture Capital Fellowship - Vencapital
Location: San Francisco
Apply here 

NYC Summer Internship - Illuminate Financial
Location: New York
Apply here 

Venture Capital Investor Accelerator - Venture University
Location: Boston
Apply here 

2026 Summer Analyst Intern (M&A) - Lincoln International
Location: San Francisco
Apply here 


For the Founders: 27 Instant VC Rejection Signals 🟣

VCs don’t reject you after deep due diligence.

They reject you in under 2 minutes. Why?

VCs use signals to eliminate startups FAST.

Here are 27 instant rejection signals:

  • You make empty claims. No numbers, no proof = no credibility.

  • You ask for an NDA before sharing your deck. Signals inexperience.

  • Your pitch deck has an outdated date. Signals you’ve been fundraising too long.

  • Your market size (SAM) is over $100B. Too broad, VCs assume your numbers are wrong.

  • Your market is too small (SAM < $1B). No VC-scale exit potential.

  • “We have no competition.”

  • Founders own less than 50% after Series A. Low ownership = weak long-term incentives.

  • Dead equity on your cap table. Bad early deals = no room for employees or future rounds.

  • Your market size is expressed in volume, not value. VCs think in $$, not in units.

  • You’re not a Delaware C-Corp (or VC-friendly entity). Legal structure matters.

  • No technical co-founder. No CTO? No funding (for tech startups).

  • You want to sell to “everyone.” No clear ICP = no focus = no investment.

  • You talk about exits too early. If you’re pre-seed, focus on building, not selling.

  • Your deck is full of jargon. “Disruption,” “transformation,” “game-changer” = auto-reject.

  • You exaggerate traction. If investors dig and find out, you’re done.

  • You’re using a Gmail/Hotmail email. Get a professional domain email.

  • You can’t estimate CAC/LTV. If you don’t know your unit economics, you’re not ready.

  • You’re slow to reply to emails. Speed = execution. Slow response = weak founder.

  • Your GTM strategy is just a list of channels. No clear funnel = no go.

  • Your round terms are off-market. Investors expect valuations in a certain range.

  • You’re raising for less than 18 months or more than 24 months of runway. Too little = risky, too much = over-optimistic.

  • Talking “equity” and “valuation” at pre-seed. Pre-seed rounds = SAFEs, not priced equity.

  • You can’t handle rejection. VCs talk, don’t burn bridges.

  • You’re building in a cold market. Some sectors just aren’t getting funded right now.

  • No “unfair advantage.” If anyone can copy you, why should VCs bet on you?

  • You’re a Forbes 30 Under 30. 🚩 Investors know PR ≠ success.

  • Your deck is circulating without investor engagement. If no one's biting, something's off.

What actually makes a VC say YES?

These 3 super-signals:

  1. Track record of the founding team

  2. Traction (real user growth, revenue, retention)

  3. Who else is investing? (Big names = instant credibility)

 
VC & Startup Favorites + News 🟣

Latest tidbits, resources, and social gems from the ecosystem.

 


Top Pre-Seed to Series A funding rounds of the week 🟣

Top 10 pre-seed to Series A funding rounds of the week:

⚫ Femtech ⚫

1. Coral, a startup that provides support for women experiencing perimenopause and menopause, raised a $2.9 million seed round.

→ Investors: Brightspark, Diagram, The51
→ Founded by: Anna Chif, Fiona Lake Waslander, and John McCalla

⚫ Food ⚫

2. Edacious, a platform for analyzing nutrient content in whole foods, raised an $8.1 million seed round.

→ Investors: Tin Shed Ventures, Nest Family Office, and others
→ Founded by: Eric Smith

⚫ AI & Data Tools ⚫

3. Gaia Dynamics, startup helping with product classification and tariff calculation, raised a $1.5 million pre-seed round.

→ Investors: AI Fund, Zenda VC
→ Founded by: Emil Stefanutti

4. Index, a startup offering planning tools for product managers and engineering teams, raised a $2.2 million seed round.

→ Investors: Bain Capital Ventures, Blackbird Ventures, BOND, Y Combinator
→ Founded by: Simon Kubica and Christian Iacullo

⚫ E-commerce ⚫

5. MarketLeap, a startup for e-commerce logistics and fulfillment management, raised an $8 million Series A round.

→ Investors: Smedvig Ventures, Expon Capital, Motier Ventures
→ Founded by: Mamoun Benkirane and Mekki Mouaddeb

⚫ Design Tools ⚫

6. Mattoboard, a platform for 3D mood boards for interior designers and architects, raised a $2 million round.

→ Investors: Acrobator Ventures, Blue Field Capital, and others
→ Founded by: Guy Adam Ailion, George Hart, and Sabina Khilnani

⚫ Gaming ⚫

7. PHȲND, a free cloud gaming platform for smart TVs and devices, raised a $10 million seed round.

→ Investors: Wellington Management, Bessemer Venture Partners, and others
→ Founded by: André Swanston and Michelle Swanston

⚫ Sports & Media ⚫

8. ScorePlay, a platform for sports organizations to manage and distribute media content, raised a $13 million Series A round.

→ Investors: 20VC, Seven Seven Six, Giannis Antetokounmpo
→ Founded by: Victorien Tixier and Xavier Green

⚫ Energy & ClimateTech ⚫

9. Nido, a startup simplifying heat pump system installation and certification, raised a $5.2 million seed round.

→ Investors: Iberdrola, Ship2B Ventures, and others
→ Founded by: German Peralta, Julien Poitout, and Pedro Pablo Aparicio

⚫ Fintech ⚫

10. Vigil, a platform automating post-issue processing for annuity and life insurance carriers, raised a $1.3 million pre-seed round.

→ Investors: M25, Nationwide Ventures, and others
→ Founded by: Mason Entingh and Reis Renneker

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