News
The Shearwater team like to share our thoughts and updates on our LinkedIn profile. Please follow us there. Below are some of our previous posts.
We’ve had a small name change: welcome Shearwater Capital
Shearwater Growth Equity is no-more. Welcome Shearwater Capital. Here’s why we changed.
Is a SAFE the same as priced round with a full full ratchet?
SAFEs can sometimes have unintended consequences. Especially when it comes to founder dilution.
$0 to $100m ARR in 3 years? Most likely a spreadsheet error
The lies of small numbers are magnified when put into a spreadsheet. If you end-up with $100m revenue in your start-up’s business plan, it’s almost certainly more wrong that it should be 🙂
Why we don’t sign NDAs
Like most VCs, Shearwater doesn’t sign NDAs. Here’s our explanation on why.
Not all gross margins are the same
We look closely at gross margins (GM) at Shearwater – here’s why.
A portfolio company moves into Shearwater Drive
In one of life’s serendipitous moments, our most recent portfolio company Diffuse Energy has moved into a new office…on Shearwater Drive. Has to be a good sign!
The first Shearwater Growth Equity founder’s dinner for 2020
The first founder’s dinner for 2020.
Why we’re happy to receive cold-contacts at Shearwater
The standard line in venture is that the only way to get a meeting is via a warm-intro. Don’t bother with cold-contacting a VC, it’s said. We’re not fans of this approach, and here’s why.
The S&P shows staying on top is getting harder and harder for incumbents
In 1964, the typical S&P 500 company was in the list for 33 comfortable years. By 2016, this had reduced to 24 years. And it’s forecast to shrink to just 12 years by 2027. The pace is innovation and disruption has literally never been faster.
Playground XYZ came 8th in the Deloitte Fast 50
Playground XYZ came 8th in the Deloitte Fast 50 – what a great company to be involved with.
The fuel that startups run on is uncertainty
The fuel that startups run on is uncertainty. Large companies tend to value waiting for higher fidelity information before entering a market. This is your opportunity.
The courage of the anti-portfolio
Bessemer Venture Partners, one of the oldest firms in the industry, celebrate their anti-portfolio: all the great deals they said no to. It makes for great reading.
Why unicorns aren’t always true unicorns
You set the valuation, I’ll set the terms. The catch that often comes with achieving unicorn status.
Venture equity versus venture capital
A different way to venture.
The natural movement of a business is to be operating at profit
The first principle with any business is that natural movement is to be operating at profit
WeWork’s IPO and the power of preference shares
Much the chatter surrounding the IPO of the We Company (aka WeWork) relates to the eye-watering valuation being sought. Yet recently there’s speculation that the IPO may end up closer to $20 billion, as opposed to the the $47 billion valuation SoftBank offered when they invested $5 billion in January 2019.
Mega-rounds now account for nearly half of the venture dollar flow
Why mega-rounds are so dominant in venture investment.
How to assess a potential investor
A founder can change every aspect of their business except their shareholders. Anyone who has had a difficult shareholder knows the real truth in this statement. So founders should be equally thorough in
When SAFES aren’t all that safe
In late 2013 Y Combinator released its innovative Simple Agreement for Future Equity (SAFE) investment instrument. The purpose of the SAFE was to allow pricing to be deferred in an early investment round, as early stage companies are somewhat difficult to value. YC wanted to take some of the benefits from Convertible Notes (which are debt) and make them available in equity form. Thus the SAFE was born.
Your ESOP plan requires wise management and clear thinking
At Shearwater we often say to founders that if there’s strong demand for your round, that’s the best time to raise *less*. The demand lets you tap into extra funds later, when the valuation of your business is likely to be higher.

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