Allied Venture Partners

Hello Partners,

As a current or prospective partner, this newsletter provides exclusive insights into our investment strategy, portfolio companies, and industry trends.

Thank you again for your continued trust and support,

Matt Wilson, MBA

Founder & Managing Director | Allied Venture Partners

Team Updates

• I’m pleased to welcome Melinda Chu and Brendan Hill as Venture Scouts to help with deal sourcing from strategic geographies across North America.

• Jeremy Jones from AngelList Advisors has also joined to manage our back-office and fund administration.

New Deals

• We shared our latest investment opportunity, Lotly, with Allied LPs, co-syndicating with N49P.

• Lotly is a groundbreaking fintech platform that democratizes access to Canadian residential real estate while unlocking a new $13B asset class for investors.

• Access the deal page here via your LP dashboard.

Portfolio News

• Rook signed two new enterprise customers in July with a strategic focus on Digital Health & Insurance Tech companies.

• GroWrk continues to be one of our top-performing companies, growing 48% QoQ and achieving all-time-high eight-figure revenues.

• League of Play has launched its new platform and is hosting its next event on September 17th, sponsored by Major League Pickleball.

• RoundlyX grew subscriber LTV by 621% YoY thanks to the introduction of several new premium features.

• Roq.ad raised a fresh round of funding at a considerable markup to our initial entry valuation.

Industry Insights

The venture capital market has continued to shift in recent months as valuation multiples have compressed across all stages of startup investing. This compression has been particularly acute at the late stage, where the number of new unicorns (i.e. private companies valued at over $1B) has declined sharply.

Whereas companies could raise large, high-priced rounds at 20x revenue multiples or more just two years ago, the multiples sought by late-stage investors today are often less than half of that. Companies that may have garnered $1B valuations on a $10M revenue run rate in 2021 are now seeing offers for only $200M-$300M at the same stage. This resetting of valuations is bringing the market back to earth after the overheated post-pandemic bubble.

At Allied, valuation discipline has always been a core value. However, given the current normalization of multiples, entry price matters more than ever. For instance, as later-stage capital becomes more conservative, the prices we pay at Pre-seed through Series A are even more critical in generating top-quartile venture returns.

The days of growth at all costs are over. However, for focused teams building attractive solutions while remaining mindful of capital efficiency, there is still plenty of room for exponential value creation. As early investors, we must be careful not to overextend on entry price, no matter how exciting the opportunity seems.

In this environment, my strategy is to maintain pricing discipline, support our portfolio companies in reaching milestones efficiently, and target follow-on financing at multiples the market will support. The easy money days may be over, but by investing intelligently, I believe ample opportunities remain to back visionary founders building disruptive companies.

Can you help us grow our social channels? Please follow us on Twitter and LinkedIn