Hey GoingVC Friends,​
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Picture this: a founder, armed with an innovative idea, and a VC, equipped with the capital and connections, embarking on a journey together. Their relationship, if nurtured properly, can transform this journey into a story of mutual growth and triumph.

To turn this potential into reality, VCs must first respect the founders' autonomy, understanding that they are the captains of their ship. Aligning on values and expectations from the outset creates a solid foundation, much like agreeing on a map before a long voyage. Clear and open communication acts as the compass, guiding both parties through stormy seas and calm waters alike.

Building trust is akin to forging a strong anchor, essential for weathering any unexpected storms. Early support and genuine interest in the founder's vision can lay the groundwork for a partnership based on mutual respect and shared goals. Leveraging their extensive networks, VCs can open doors to new opportunities, while understanding the unique challenges founders face allows them to offer tailored guidance.

For VCs, providing not just capital but also strategic insights and operational support can be the wind that propels the startup forward. This collaborative spirit, characterized by continuous feedback and transparent interactions, ensures that both founders and VCs are navigating towards the same horizon.

Want to learn 21 ways VCs can build these strong, enduring relationships with founders? Dive into the full post to uncover the secrets that can turn a simple investment into a story of shared success and growth.

VC Term of the Week

A hurdle rate is the minimum rate of return that an investor expects to achieve from an investment before they consider it worthwhile. It serves as a benchmark for evaluating potential investments and ensuring they meet or exceed this threshold.

Imagine you are an investor deciding whether to fund a new ice cream shop. To compensate for the risk involved, you determine that you need to earn at least a 10% return on your investment. This 10% return is your hurdle rate.

You consider factors like the riskiness of the ice cream business, alternative investment opportunities, and the cost of capital, and set your hurdle rate at 10%. The ice cream shop owner presents a business plan projecting returns of 12% per year. Since 12% is higher than your 10% hurdle rate, the investment meets your criteria, making it a viable option. However, if the shop's projected return was only 8%, it would fall below your hurdle rate, and you might decide not to invest because it doesn't meet your minimum required return.

The hurdle rate ensures that you are making investments that align with your financial goals and risk tolerance. It helps you filter out less promising opportunities and focus on those with the potential for adequate returns.

GoingVC Research: How Transport-Tech is Revolutionizing Travel & Mobility

Tired of the daily grind of driving in the U.S.? With vast distances and aging infrastructure, transporting goods and people can feel like an endless headache—inefficient, expensive, and often dangerous. This reality hits hard, especially in suburban America, where long commutes are the norm. Did you know that after housing, transportation is the second-highest cost for Americans, with drivers spending an average of $8,000 annually?

But there’s hope on the horizon. Innovation, fueled by venture capital, is transforming transportation through a burgeoning industry known as transporttech. This revolution is leveraging artificial intelligence and advanced technologies to make travel faster, safer, and more efficient. From ride-sharing giants like Uber to electric vehicle pioneers like Tesla, transport-tech is reimagining how we move.

Curious about how AI and transport-tech are reshaping the future of travel? Check out the shortened blog version of the research article. Then, join the GoingVC Research Library and dive SUPER deep into how these advancements are making transportation smarter and more sustainable.

VC Job of the Week

Celestica is looking for a manager of Strategic Investments. This role includes conducting strategic investments in early-stage technology companies, particularly in the green energy sector, and developing relationships within the venture ecosystem. Ideal candidates should have a minimum of seven years of experience, including at least two years in investment banking, venture capital, or private equity, along with strong financial analysis, communication skills, and a passion for entrepreneurship and new technologies.

Investment Operations Specialist @ Belltower Fund Group (remote)

That's all for this week!