Michalis Gkontas

Firstly, this isn't a post about Europe vs US. They're different beasts at different stages of development… However, as a European VC, it's critical to be connected to the US VC market. If you are, on average, you'll get bigger markups for your portfolio by taking advantage of the UK/US arbitrage among other things. Two examples of this are Lawhive and StackOne from our portfolio. Both have founders who've moved to the US and both have raised from GV (Google Ventures) with deep US ties of course. Same with companies like Mimica (Khosla Ventures), Carwow (Bessemer Venture Partners, Accel) and many more. You need to be able to pick the phone up to tier 1 US VCs and get them to meet your portfolio. So when Adam Shuaib, PhD, Millan Suri and I went to SF a few weeks back, we tried to cover as much ground as we could, meeting about 40 of the tier 1 US funds like Founders Fund, Greenoaks, Sequoia Capital, Thrive Capital, Andreessen Horowitz…. It takes time to build this network but the rewards are great. As you can see, we also went surfing.

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What happened in mental health this week? ⏺️ Ash by Slingshot AI launched their AI-powered therapy service Ash, and closed an extension of their Series A funding round, bringing their total raise to $93M. ⏺️ AbsoluteCare raised $135M to fund their market expansion. The company provides integrated care, including physical, behavioural and social care and has a strong emphasis on value-based payment models. ⏺️ Kooth Digital Health released their half-year trading and operational update, including progress on their California contract, which appears set to meet registration targets. ⏺️ Coinbase Co-Founder Fred Ehrsam raised $100M for a BCI neurotech startup called Nudge. ⏺️ Talkspace partnered with Tia Health to integrate mental health care services into primary care for women, expanding Talkspace's specialised women's health services. ⏺️ Elon Musk's Grok launched two new AI 'companions', including a sexualized anime bot that is available for users as young as 12. Just what we needed… ⏺️ Headstream Innovation announced their 2025 Accelerator cohort of early-stage founders building tech to support young people's mental well-being. I know a few of the businesses in this cohort and think they have a lot of potential. I will be following this cohort closely. ⏺️ In the UK, NICE recommended Limbic and Wysa's Digital Referral Assistant as digital 'front door' technologies for NHS Talking Therapies assessments for anxiety and depression. ⏺️ Clerkenwell Health, the site for the UK's first sponsored LSD trial, announced that they screened the first participant for MindMed's Phase 3 study of MM120. ⏺️ Ember Mental Health announced their 2025-26 cohort, selecting 15 community-based mental health initiatives which they will support. The program received over 1,800 applications, which is wild, and frankly, I love seeing support being provided to community initiatives like these. ⏺️ Winslow Strong announced The Consciousness Foundation, a public charity aimed at advancing scientific understanding of consciousness and fostering consciousness development, including awakening, healing, and inner development. This is very relevant to our recent post on Spirit Tech - the space seems to be gaining some momentum. ⏺️ Penda Health's real-world study found that their LLM clinical copilot reduced diagnostic errors by 16% and treatment errors by 13% across 39,849 live patient visits at 15 clinics. Whilst this was focused on primary care, it points to the kind of impact that may exist when these kinds of LLMs are applied to mental health. __ 📩 Like this? I send it as a weekly email (including links and even sometimes irrelevant personal stories about my life) to thousands of mental health operators. Sign up for free here > https://lnkd.in/g9xgMW4r 👉 Follow me Steve Duke, for more insights on the #mentalhealth industry.

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What are the chances your startup will get acquired? Around 1.2% it appears Latest insights from Carta and Peter Walker show a decent increase on prior years Consider though, that this is from the US which is by far the most active venture market For other markets, the stats are def way worse ⏯️ Key insight: it's never too early to pursue an acquisition - deals happened all the way from pre-seed to series E

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What's going on in the venture capital market? While we see very large, highly valued rounds for AI companies, many founders struggle to secure funding at all. 😳 I see 4 founder profiles in the market: 1️⃣ Serial founders or scale-up executives → They raise big rounds (+20m valuations) led by Tier1 VCs. 2️⃣ Founders with traction (100-200k ARR) → They usually find a pre-seed lead after multiple VC talks and then fill rounds quickly on average valuations. Only works for VC Cases. 3️⃣ Founders with little traction but competitive markets → They struggle with endless VC conversations that often lead nowhere. Better off raising angel rounds or bootstrapping. 4️⃣ Software founders bootstrapping → They build MVPs, start selling, and skip early rounds altogether—or wait for better momentum. What are pre-seed investors looking for in 2025? 👉 Proprietary data sources 👉 Strong domain knowledge (vertical SaaS is a win!) 👉 Real customer traction 👉 Deep-tech with a clear edge Fundraising strategy matters more than ever. Here’s what works: • Cluster VCs - don’t pitch your dream fund first. • Use early NOs as free feedback to improve your story. • One term sheet creates momentum - then the round fills up fast. What has been your experience raising in this market❓ #fundraising #venturecapital #investments 📸 Fabian Klima

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So much of the VC world is measured in numbers, but not everything. There are certain non-financial metrics that are just as vital to success. To Henri Pierre-Jacques, GP of Harlem Capital, venture is a people’s business. Whether you’re investing in founders, building trust with LPs, or selling into enterprises, at the end of the day, it’s still a person on the other side of the table. In the latest episode of High Stakes, we get to the heart of how we should be thinking about success in VC: beyond the spreadsheet.

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Every VC website says "value-add." Most have never operated and are selling help they can't actually deliver. After 100+ investments, here's what real value looks like (and how to spot the BS). Last week, a founder asked me: "What value do you actually add beyond the check?" Fair question. I've heard every VC claim they're "value-add." Most aren't. The Marketing BS: "Access to our network" = We'll send one intro email, maybe "Strategic guidance" = We'll give opinions on things we don't understand "Operational support" = We'll suggest you hire a recruiter "Brand value" = We have a nice logo for your website I've watched founders waste months chasing these empty promises. What Actually Matters: After backing 100+ companies, here's the only "value-add" that counts: 1. Speed of Decision The best VCs get back to you in 48 hours, not 4 weeks. Time killed waiting for answers is time not building. One of my founders needed emergency bridge funding. Decision in 3 hours. Money wired same day. That's value. 2. Useful Introductions (With Context) Not "Hey, you two should meet." But: "Sarah, meet John. He solved the exact payment processing problem you're facing at scale. He's expecting your call Tuesday at 2pm." Context. Relevance. Follow-through. 3. Pattern Recognition That Saves You Money "I've seen this movie 5 times. Here's what killed the others..." When I tell founders not to hire a VP of Sales before product-market fit, I'm saving them $400K and 6 months of pain. 4. Being There When Things Break Every VC loves you when you're up and to the right. Real value shows up during layoffs, failed product launches, and co-founder breakups. 3am calls. Emergency board meetings. Actual support when everything's on fire. 5. Getting Out of the Way The most underrated value-add: knowing when to stop giving advice. Your company. Your vision. Your execution. The best VCs amplify, not override. The Litmus Test: Ask any VC: "What specific help did you provide your last 3 portfolio companies?" If they talk about their "platform team" or "exclusive events," run. If they name specific introductions, saved costs, or crisis moments they helped navigate - that's real. The Truth: Most "value-add" is BS because most VCs have never operated. They're selling a product they don't understand. The real value isn't in the services they list on their website. It's in the scars they earned building and failing themselves. I tell every founder the same thing: Judge VCs by their actions in your worst moments, not their promises in pitch meetings. What's the most valuable thing an investor has ever done for you (beyond writing a check)? #VentureCapital #Startups #Fundraising #RealTalk #Founders

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