September 2024
Dear ,
Welcome to our second edition of Visible Hands-On Updates!We’re here to keep you informed of what’s ahead as coalesce aligned partners for Fund II.A question we get often is what differentiates you. Embedded in VH is a focus on1.) Preseed where we gain first-check favorable economics2.) Diverse founding teams3.) Hands-on strategic supportOur mission is to support entrepreneurs with innovative solutions and strong execution skills, backing ventures that have the potential to redefine industry standards. By doing so, we aim to deliver substantial long-term value to our stakeholders while fueling innovation and driving our generation forward
We are generalist investors but see massive opportunity in three verticals that will be redefined in an “empowered economy” where people seek to have agency in their decisions, which helps them feel secure in their finances, their health, and their environment. These sectors stand at the forefront of innovation, addressing critical global challenges while offering significant growth prospects for investors.
Finances Vertical
Overview and Market Dynamics
The fintech sector has experienced extraordinary growth over the past decade, with investors pouring over $370 billion into startups. This substantial influx of capital has not only fueled innovation but has also led to the emergence of numerous companies operating at scale, with significant room for further expansion. The fintech revolution has reshaped traditional financial services, creating new markets and opportunities across various subsectors.
VH's Perspective on the Fintech Sector
We believe the fintech sector is crucial for fostering an "empowered economy" by enhancing growth and improving consumer experiences. While pre-seed investments in this space involve high risks, they also offer the potential for substantial returns. We see the sector's ability to redefine industry standards as it has done over the past decade. Consumers and businesses can access capital and financial resources faster and easier. We believe that there is a new generation of entrepreneurs who will build startups that will make our experience more efficient and safer.
Market Overview and Focus Areas
The climate tech sector has emerged as a critical area for innovation and investment, driven by the urgent need to address global environmental challenges. Our primary focus within this vertical encompasses three key areas:
Climate Upskilling: Addressing the growing demand for skilled labor in the renewable energy sector.
Climate Data Analytics: Developing software solutions for environmental data aggregation and analysis.
Energy Management Systems (EMS): Creating systems to optimize energy use in commercial and industrial buildings.
VH's Perspective on the Climate Tech SectorWe view the climate tech sector as offering a favorable risk-return profile, primarily due to the scalability of software solutions and the increasing demand driven by both regulatory requirements and a growing focus on sustainability. The sector presents abundant pre-seed investment opportunities, particularly in areas such as AI-driven analytics, blockchain-based carbon trading platforms, and IoT-enabled energy management systems. Recent legislation has created an even greater need and incentive for climate innovators to venture into entrepreneurship, providing us with opportunities to get in early on promising deals as these companies scale up with the market.
Sector Overview and Key Focus Areas
The digital health sector stands at the intersection of technology and healthcare, promising to revolutionize patient care, improve operational efficiency, and address some of healthcare's most pressing challenges. Our focus within this vertical centers on four key areas:
AI-Driven Operational Efficiency: Streamlining non-clinical work to reduce administrative burdens in healthcare settings.
Next-Generation Remote Care: Improving follow-up and monitoring of remote patients post-discharge.
Comprehensive Weight Management: Developing holistic platforms that support long-term behavior change and multimodal obesity care.
Mental Health Innovation: Expanding access to and improving the effectiveness of mental health services.
VH's Perspective on Digital Health Sector
While we recognize the challenges in the digital health sector, including pilot purgatory, regulatory hurdles, and a fragmented healthcare system, we also see significant opportunities. The potential for value creation, addressing pressing healthcare challenges, and improving patient outcomes make this an attractive space for investment.
Our investment strategy focuses on diverse founding teams, a strong revenue mix including enterprise clients, products that create fundamental behavior changes, and scalable solutions with clear ROI. We're particularly interested in the NYC ecosystem for digital health investments, capitalizing on the city's prominence as a hub for health tech unicorns.
Despite the sector's difficulties, we believe there's a timely and emerging opportunity for startups to catalyze real value for incumbents through AI-driven innovation. By carefully navigating the complex landscape and focusing on solutions that address core healthcare challenges, we aim to position ourselves at the forefront of the digital health revolution.We’re excited about this next chapter and the high-quality founders we are meeting in this market. We would love for you to be part of this exciting journey. Let’s schedule a time to connect and discuss how you can join us in shaping the future through Fund II.Be well,The Visible Hands Team
SOURCING SPOTLIGHT: SEEN NYC
We're launching an annual summit with Tech: NYCWe are excited to launch a partnership with Tech: NYC to bridge the gap between overlooked NYC-based founders who are raising and prospective investors. This partnership will be in the form of an annual summit, entitled “SEEN,” where we highlight the top 50 founders currently raising in NYC and connect them with the rest of the local tech ecosystem. We'll also be using SEEN as an additional pipeline builder for sourcing future investments for Fund II. The inaugural SEEN event will be in the form of a smaller, intimate half-day summit to kick things off, and will be taking place in NYC on November 20th at the EY Offices in Chelsea.
VISIBLE HANDS IN THE NEWS
Yasmin Cruz Ferrine was featured in an interview by Fidelity for Startups also known as Fidelity Private Shares with Kristen Craft.
Daniel Acheampong was a guest speaker on a panel at Brown Advisory with Betty Francisco (Boston Impact Initiative) and Nader Motamedy (Safar Partners).
Justin Kang moderated a virtual discussion for the Engine Accelerator.
Both Yasmin and Daniel attended Blck VC events in Charlotte and Martha’s Vineyard.
Daniel attended the Westbound Summit in Healdsburg, CA
Other VH posts you should check out:
Yasmin Cruz Ferrine on Digital Health Trends She’s Falling ForHannah Zinn on the Top Questions We Hear from FoundersJustin Kang on Corporations & Advancing an Inclusive Innovation Economy
LPs IN OUR CORNER
We are deeply grateful to our existing Limited Partners who have already committed to Visible Hands Fund II. We'd like to extend special recognition to Bob Mason and Stuart Levinson for their continued support and engagement. We look forward to continuing our partnership with you to invest in the next generation of billion-dollar businesses. Again, feel free to schedule time with us or reply directly to this email with any questions.
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