VNTR Capital News April 28, 2024 – News, Events, VC Reads
Venture Capital, Web3, and Private Equity – April 28 News, Events, and VC Reads
Hello friends,
Happy Sunday!
VNTR Capital Newsletter is delivered to 80k+ investors weekly to share the latest news, events, and articles from the global VC and startup ecosystem.
Scroll down for VNTR Capital Community News, Upcoming Events, and VC News/Reads.
VNTR CAPITAL COMMUNITY NEWS
Spotlight
Conference Partnerships: We partner with top Tech conferences globally to provide a place for active investment decision-makers to meet each other at VNTR Roundtables. VNTR community can benefit from discounted/complimentary tickets to the Dubai FinTech Summit, Viva Technology, GITEX Africa, CC Forum Paris, Mansion House Summit, and more.
VNTR Chapters: VNTR already has a presence in 20+ regions! We launched the Bangkok/Thailand chapter and VNTR Baltics in the past two weeks. We are launching chapters in Auckland/New Zealand, Vienna/Austria, Austin/Texas, Zurich/Zug, Madrid, Brussels/Belgium and Monaco. We are growing our chapter's network by partnering with local Chapter Directors and Venture Partners who join our team to unite the global VC community, connect investors, and provide a safe place to collaborate and co-invest. Join us to launch a chapter in your city/region. Please reach out to Olya to learn more.
VNTR Rally Dubai: We had an amazing experience with VNTR Club members at the VNTR Rally road trip from Dubai to RAK to Fujairah on April 19-21. Perfect Concierge supported the rally with sports car rentals (use VNTR to activate your Perfect account). Our next VNTR Club lifestyle experience dates will be announced soon. We are planning a road trip and a sailing experience in Europe. Learn about VNTR Club membership.
VNTR Corporate Membership: 4 new members joined us at VNTR Corporate Membership to provide value to VNTR members and portfolio companies (Stellar, Perfect, Paypolitan, Synexis). In May, we will accept only two new Corporate Members. Please reach out to Lukas to secure your spot.
VNTR Expert Sessions: VNTR Club members host workshops, fireside chats, and masterclasses to share their knowledge and expertise with VNTR community members:
May 9: Frederico Kessler, Partner at FunFair Ventures, will talk about Gaming Investment Trends
Recordings from VNTR Expert Sessions are available to VNTR Club members at VNTR Acadamy.
Coming 2 weeks:
London: April 30 VNTR Investors Breakfast in London will gather London chapter investors for a private breakfast, during which we will host an Expert Talk on Art Investment with Elizabeth Davydova.
Cascais: May 2 VNTR Investors Dinner in Cascais will gather Portugal chapter investors to meet with visiting VNTR Club Member Gillian Muessig, Managing Director at Mastersfund.
Dubai: May 7 VNTR Investors Roundtable in Dubai during the Dubai FinTech Summit (investors get complimentary passes or VNTR10 10% discount) will bring FinTech investors together and connect with VNTR Dubai chapter members.
Hong Kong: May 8 VNTR Investors Dinner in Hong Kong will gather Hong Kong Chapter investors to meet with visiting Web3 investors during Bitcoin Asia.
Thank you to our Partners:
The Stellar Enterprise Fund is a venture-style fund that expands the open-source Stellar network. We at the Stellar Development Foundation invest in companies transforming the future of everyday financial services through Web3 innovation. We are fierce advocates of blockchain technology potential.
HASH CIB is a crypto-native venture capital firm focusing on early-stage projects across the DeFi, middleware, and infrastructure niches. They aim to disrupt the space and push boundaries, fostering truly open and interconnected blockchain networks. Notable investments in their portfolio include The Graph, Centrifuge, Web3Auth, Space&Time, Shrapnel, and SOLV.
Layer2Labs is a leading team that develops and produces advanced Bitcoin sidechains. Their expertise lies in pushing the boundaries of blockchain technology, crafting innovative solutions that expand the functionalities of the Bitcoin network. Their sidechains prioritize scalability, interoperability, and enhanced features, offering new opportunities for developers, businesses, and users in the Bitcoin ecosystem.
AlpinX is a fintech startup focused on simplifying cryptocurrency for new users. Their ecosystem offers tools for buying, securing, managing, growing, and using cryptocurrency assets with ease. The company's vision is supported by four key products: a centralized exchange (launching Q3-Q4 2024), a full self-custody exchange, an AI-based companion named 'Dahu,' and a Universal Wallet. With a team boasting experience from Fortune-500 companies like Citi, Deutsche Bank, and JP Morgan, along with expertise in Machine Learning and Quantum Physics from prestigious universities like MIT and Harvard, AlpinX is poised to revolutionize the crypto landscape for newcomers.
Upcoming VNTR Events:
May 16 VNTR Investors Roundtable Jakarta (World Finance Forum)
May 21 VNTR Investors Roundtable Auckland (New Zealand Techweek)
May 23 VNTR Investors Roundtable Paris (Viva Technology Paris, 30% discount)
May 30 VNTR Investors Roundtable Paris (CC Forum)
June 7 VNTR Investors Roundtable Madrid (South Summit Madrid)
More events available on the VNTR Platform
Reach out to Lukas to sponsor VNTR events or join VNTR Corporate Membership.
Follow us on Social media: Instagram, LinkedIn, Facebook, Flickr, and Twitter.
UPCOMING VC EVENTS
April 29-30 AIM Summit, London, UK
May 2 Mansion House Summit, London, UK (25% Discount using VNTRVIP25)
May 6-7 Dubai FinTech Summit, Dubai, UAE (10% Discount using VNTR10 or investors with IDFS24VNTR registration code)
May 7-9 FinTech Americas, Miami, USA
May 9-10 Bitcoin Asia, Hong Kong
May 9-10 EU Startups Summit, Malta
May 13-15 Podim 2024, Maribor, Slovenia
May 15-16 Next Block Expo
May 15-16 Echelon by E27, Singapore
May 15-16 SusHi Tech Tokyo, Japan
May 15-16 Conf3rence, Dortmund, Germany
May 20-21 SALT iConnections New York, USA
May 21-22 London Blockchain Conference, London, UK
May 20-26 New Zealand Tech Week, Auckland, NZ
May 22-25 Viva Technology, Paris, France (30% Discount using the link)
May 22-24 Beyond Summit, Newport Beach, USA
May 22-24 Latitude59, Tallinn, Estonia
May 22-24 NextTech Week, Tokyo, Japan
May 27-31 CC Forum, Paris, France (20% Discount using CCFPVNTR20VIP, or free using CCFPVNTRSTANDARD)
May 29-30 Dublin Tech Summit, Dublin, Ireland
May 29-31 Consensus, Austin, UAE
May 29 -31 Gitex Africa, Morocco (Complimentary for approved investors, 25% Discount using COMNSGA25)
June 3-9 NY Tech Week, New York, USA
June 5-6 Blockchain Expo, Santa Clara, USA
June 5-7 South Summit, Madrid, Spain
June 5-11 WEB3FEST, Zurich/Zug, Switzerland
June 10-14 London Tech Week, London, UK
June 15-16 DeGameFi, Tbilisi, Georgia
June 17-21 Cannes Lions, Cannes, France
June 17-20 Collision Conf, Toronto, Canada
June 26-27 FinTech Summit Africa, Johannesburg, South Africa
If you would like to submit VC-related events, please respond to this email or Telegram @byuric
Check out VNTR Capital upcoming events
VC Reads and News
View curated VC news and articles on the VNTR Platform
How do crypto whales protect their identities?
These crypto whales are individuals or entities with significant holdings of digital assets, often in the form of Bitcoin (BTC), Ether (ETH) or other major cryptocurrencies. Tracking whale wallets on a blockchain explorer has historically been incredibly helpful in understanding market sentiments. Whale actions, from large transactions to strategic moves, can cause ripples throughout the entire crypto ecosystem. Crypto whales emerged alongside the rise of cryptocurrencies, particularly Bitcoin, in the early 2010s. Many early adopters and investors accumulated substantial amounts of digital assets when prices were relatively low. As the value of cryptocurrencies soared, these holdings turned them into whales within the crypto realm. Some whales also gained their status through large-scale investments or mining activities.
The Week’s 10 Biggest Funding Rounds: Xaira And Other AI Startups Have Huge Week
After a slowdown in big rounds last week, investors were back at it again dishing out nine-figure rounds. This week’s theme was definitely AI, as many of the largest rounds went to startups using AI in coding or biotech.
Big Winners and Bold Concentration: Unveiling the Secret Portfolio Returns of Leading Venture Funds
An exclusive inside look into how funds who have returned more than 10X to LPs make and lose money.
The overwhelming response led me to reach out to some of our own Limited Partners (LPs) to pull some updated data on the Power Law in VC and shine some light on the differences between Good Funds they’ve looked at (3.53X MOIC average) vs. Great (17.95X MOIC average, all over 10X) funds. This dataset incorporated returns data from more than 5,700 companies and more than 150 mature VC funds.
Andreessen Horowitz’s $7.2B new funds for a ‘new era’
What is worth $11 billion and wants to go to Mars to collect rocks? NASA’s mission to Mars to collect rocks that was expected to cost $11 billion and take ages. So, the U.S. space agency is throwing the doors open to get more input, and that means that startups are looking at an opportunity that is truly out of this world.
But that’s not the only thing going on. Today’s Equity episode is focused on all things startups, which means we also got to chat through Two Chairs’ recent and massive Series C, Quilt’s heat pump work and fundraise, and several IPO updates. Here’s hoping that after Ibotta and Rubrik get out the door, more IPOs follow.
The Mixed State Of Startup Funding In 2024, In 11 Charts
Startup investors kept a tight hold on their wallets in the first quarter of 2024, Crunchbase data shows. There were big exceptions — some AI, healthcare, energy and robotics startups, among others, received massive investments — but overall the tone was cautious as the year got started.
To break it down further, let’s look at 11 charts based on recent Crunchbase data that show the state of the startup world in early 2024.
State of Pre-Seed: Q1 2024
Fundraising for pre-seed companies stayed robust in Q1 2024, dominated by SAFEs and convertible notes; valuation caps remained flat.
SAFEs have eaten more of the early-stage market: SAFEs are now the preferred investment instrument for all rounds under $3 million.
Valuation caps stayed flat in Q1: The SAFE round valuation caps have shifted less frequently than the full priced round valuations.
Small checks made an impact: 41% of checks in SAFE rounds under $1 million were below $25,000.
Global VC Investment Falls To Lowest Level In Nearly Five Years: KPMG Report
Global venture capital (VC) investment fell slightly from $83.8 billion across 9,458 deals in Q4’23 to $75.9 billion across 7,520 deals in Q1’24 amid geopolitical tensions, the extended drought in exits among VC-backed companies, and a continued pullback in investment at later deal stages. The level of VC investment in Q1’24 was the lowest since Q2’19, while the number of VC deals was the lowest since Q2’16, according to the Q1’24 edition of KPMG Private Enterprise’s Venture Pulse—a quarterly report that shines a spotlight on VC investment trends globally across key jurisdictions around the world. China also saw two $1 billion+ megadeals during the quarter.
The Shrinking Series E: More Senior Startups Raise Smaller Follow-On Rounds
Typically, when a venture-backed startup raises a follow-on round, the size of the investment and the company’s valuation go up as well.
One expects a Series D round, for instance, to be larger than a Series C. Another bump usually occurs should the company secure a Series E.
Lately, however, sequential rounds aren’t always getting bigger, a review of Crunchbase data suggests. Instead, as companies that last raised in a bubblier investment climate a few years ago secure fresh capital, they’re often reporting rounds that are smaller than prior ones.
Venture capital floods into Europe’s cleantech startups
Europe’s cleantech startups are on track to raise record amounts of venture capital this year after Q1 registered the sector’s highest quarterly deal value since Q2 2021. During the first three months of the year, €6.8 billion (about $7.3 billion) was invested in cleantech startups, according to PitchBook’s Q1 2024 European Venture Report—a year-over-year increase of 467%.
IPO Market Insiders ‘Cautiously Optimistic’ That Current Trickle Will Get Stronger
With Microsoft-backed data security firm Rubrik set to enter the public market this week, talk about the rejuvenated IPO market has returned as many wonder who may be next, and when. Rubrik is set to join the likes of chip startup Astera Labs, Walmart-backed Ibotta and online forum host Reddit as one of the bigger IPOs so far this year. Those IPOs came after last year’s second-half offerings by Arm Holdings, Instacart and Klaviyo helped thaw an IPO pipeline that had been frozen for nearly two years. Now the question is whether that small trickle of companies will lead to a more steady stream as the second quarter moves into the third, and if highly anticipated companies like AI-enhanced data analytics company Databricks and fintech giant Stripe enter the market.
Startups are working overtime to reduce the massive climate impact of AI
Depending on who you listen to, super-intelligent computer systems are either going to destroy humanity, or deliver a future of prosperity and abundance; unlock a new era of human artistry, or gut out entire creative industries. The truth is probably somewhere in the messy middle, but one thing that pretty much everyone can agree on is that AI is using a lot of energy, with large generative models needing huge amounts of computing power (known as “compute” in the industry) to crunch vast quantities of data. Last month a report by a group of climate change organisations estimated that AI could lead to an 80% increase in global carbon emissions, and experts are warning that the AI industry’s huge power demands could threaten global energy supplies.
Robots are rising in Europe
2024 has felt more science and less fiction, with investor money flowing into everything from AI-powered robots running automated assembly lines to humanoid machines helping with daily tasks. In Europe, where industrial and manufacturing industries play a key role in many local economies, these AI-supported robots are catching the eye of top investors. German robotics startup RobCo, which makes automated robots for small and mid-sized manufacturers, raised Series A funding from US powerhouse Sequoia Capital in 2022, and earlier this year raised a fresh $43m Series B from fellow American VC Lightspeed Venture Partners; OpenAI-backed Norwegian startup 1X, which makes humanoid robots, raised a whopping $100m in Series B funding in January led by EQT Ventures.
Funding for European VC mega-rounds makes a comeback
Europe’s venture capital mega-rounds are on the rebound, claiming over half of all VC deal value in the first three months of the year. A total of €16.3 billion (about $17.4 billion) was raised by European startups in Q1, according to PitchBook’s Q1 2024 European Venture Report, with mega-rounds—transactions of €100 million or more—accounting for €8.2 billion. Mega-round dealmaking has declined since 2021 as investors grow increasingly cautious about their bets amid the VC downturn. But at its current pace, funding for these deals is set to surpass last year’s total of €19.8 billion.
Market Map: Green industry powers carbon tech’s future
Carbon and emissions technology has largely defied the broader VC downturn: 2023 was a record year for the vertical with $16.5 billion invested, up 15% from $14.3 billion in 2022. Large corporate investors continue to bankroll innovation. The VC arm of oil giant Chevron just closed its biggest fund to date, with $500 million to invest in clean energy startups. And Toyota Ventures, the corporate venture firm associated with the Japanese carmaker, recently raised $150 million for a climate fund. The market map below highlights the industry segment of carbon and emissions technology, which includes startups tackling recycling, extraction and low-emissions production of raw materials and chemicals. Explore the industry segment by clicking on the blue title.
a16z Crypto recommends startup founders ‘never publicly sell tokens’ in US
The crypto arm of venture capital firm Andreessen Horowitz, a16z Crypto, is warning startup founders to stay out of the United States market when conducting token sales. “Public sales of equity and tokens outside the U.S. and private sales of equity and tokens can all be done in a compliant manner without being subject to the registration requirements of securities laws,” wrote Miles Jenning, a16z Crypto’s general counsel and head of decentralization. “Public sales in the U.S. are an own-goal, avoid at all costs.”
A Wake-Up Call For Sustainable AI Data Centers
The AI revolution is here, with the promise to produce breakthroughs that can save and enhance billions of lives. But the brilliant gleam of that potential is preventing us from clearly seeing a huge concern — we may not have enough electricity to power the growing number of AI-focused data centers. AI’s voracious appetite for power is driving an unprecedented demand for electricity. By some estimates, if a data center replaced traditional servers with those designed for AI, the power needed would increase 4x to 5x — equivalent to adding a nuclear power station.
VC investor headcount stalls after years of rapid growth
Turnover at the largest US venture capital firms is rising, a sign that years of unchecked growth among investment teams may finally be at an end. The number of investors at the 500 largest US VC firms by assets under management swelled 77% from 2017 through the end of 2022. But over the past 15 months, that growth slowed to just 2%, according to an analysis for PitchBook by Live Data Technologies, which tracks job change data.
Buyout performance pokes above clouds
Buyouts made a significant turnaround in performance, recovering last year from a turbulent 2022. According to the latest Global PitchBook Benchmarks, buyouts came out on top among fund strategies, with an annual horizon IRR of 8.9% for the first three quarters of 2023, which is the most recent data currently available. It’s a significant change from -0.7% in full-year 2022. On the strategy’s heels was infrastructure with an IRR of 8.3% in 2023 and private debt with 7%. The performance figures take changes in fund net asset value, cash flows and exits throughout the year.
Institutional Digital Assets: The Future of Finance Is Here
A “crypto year” is often said to pack one year of innovation into a time span that would normally take seven. Like dog years. That said, institutions don’t move in crypto years when adopting innovation. They test and slowly build behind the scenes and those projects are starting to bloom just like spring flowers and cherry blossoms.
As Americans Spend More Out Of Pocket On Healthcare, Startups See Opportunity
Americans are spending ever-rising sums of their own money on healthcare. So-called out-of-pocket expenses now top $470 billion annually, per the federal government’s latest accounting. Spending is expected to keep rising too, along with the spread of high-deductible health plans and care providers who don’t accept insurance. While consumers aren’t exactly thrilled about this trend, startup founders and their backers see some very scalable opportunities. In the past couple of years, hundreds of millions of dollars have gone to companies working on things like health savings account platforms, care price comparison apps, and tools for employers offering high deductible plans.
AI Safety for Smart Contracts Is AI Safety for the World
Web3 and blockchain technology go far beyond Bitcoin and NFTs. As businesses become more aware of Web3’s possibilities, one feature will play an important role: smart contracts. Smart contracts enforce an agreement between users in an automated, open and trustworthy way. Written in code and running on-chain, they can be used in place of fragile, high-touch trust relationships requiring extensive paperwork and human ratification.
Investors Re-Engage With Gaming Startups
It’s once again “game on” for gaming startups. After several slow quarters, funding to companies in the gaming space has picked up a bit this year, driven by a resurgence in early-stage dealmaking and optimism around the ability of small studios to churn out hits. In the first quarter of this year, investors put $265 million globally into early-stage rounds for gaming startups, per Crunchbase data. That’s a 65% gain from Q4 2023, and a roughly fourfold increase from Q3, during which investment hit a multiyear low.
Why Asset Tokenization Is Inevitable
Financial markets are undergoing a transformative shift with the advent of tokenization. This movement is not merely a speculative trend among tech enthusiasts, but a fundamental shift in how assets are managed and transacted globally. The tokenization of real-world assets (RWAs) is not just an emerging trend; it is setting the stage for a new era of asset management. The distinction between crypto-native tokens and tokenized RWAs is crucial. Crypto-native tokens, such as bitcoin and ether, are purely digital and serve as both a speculative investment, store of value, and a utility within their own ecosystems. Tokenized RWAs, on the other hand, bridge the digital and traditional financial worlds, effectively bringing liquidity and fractionalization to improve the accessibility of assets that were previously “less liquid.”
Decentralized science can be the next big thing for blockchain utilization
The digital transformation has marked a stepping stone for making scientific research accessible to more researchers worldwide. However, two decades of digitization have shown that preparing and distributing content in a digital format is not enough to lower the barriers to scholarly information. Peer review, a vital process to ensure the quality and accuracy of published academic work, is still notoriously inefficient. The slow and opaque processes lead to delays in publishing new research. On top of that, most researchers from smaller institutions or developing countries have to face an uphill battle in gaining visibility and accessing mainstream scientific platforms.