VNTR Capital News Feb 25, 2024 – News, Events, VC Reads
Venture Capital, Web3, and Private Equity – Feb 25 News, Events, and VC Reads
Hello friends,
Happy Sunday!
VNTR Capital Newsletter is delivered to 70k+ 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
VNTR Syndicate — VNTR was built in order to invest in fast-growing tech startups and funds. We offer a deal-by-deal basis investment opportunities into startups and VC funds as LP via the VNTR Platform. Those keen on becoming part of VNTR Syndicate can easily set up an investor account on VNTR and start co-investing with leading VC funds.
VNTR PRO Expert Sessions — The VNTR PRO Membership is growing, with new benefits being incorporated every week to further empower our Members in their journey as investors and professionals. As part of the VNTR PRO Membership, individuals gain access to exclusive expert sessions hosted by industry leaders, providing invaluable insights into investment trends across various sectors. Discover more VNTR PRO Membership.
VNTR Supercars Rally UAE — We have rescheduled our VNTR PRO Supercars Rally to new dates: April 19-21 in Dubai side event to Token2049 Dubai. We will travel together from Dubai to RAK to Fujairah, enjoy interactive bonding activities, and create strong relationships with VNTR PRO members. Apply to join (limited number of spots available)
VNTR LP Roundtables — Limited Partners are invited to join us at our upcoming events to learn about the trends, new VC funds, investment opportunities and meet other LP peers who are investing in funds. Reach out to Julie to join GP LP programming.
Corporate Membership and Sponsorship — Companies can join the VNTR community on a Corporate Membership and connect with investors and their portfolio companies. Learn about Corporate Membership. Reach out to Lukas to learn more and join.
This week
It is going to be a super active week with 7 offline events in 5 cities
Feb 26 VNTR Investors Roundtable Dubai (AIBC), partners: CryptoOasis
Feb 27 VNTR Investors Roundtable Barcelona (Mobile World Congress)
Feb 28 VNTR Investors Roundtable Doha (Web Summit Qatar), partners: StartupGrind Qatar, Workinton Qatar
Feb 29 VNTR Investors Roundtable Singapore, partners: Marsh Singapore, VC Prestige Club
March 1 VNTR Investors Roundtable Denver (ETH Denver), partners: Synexis, EdgeOf, Cointelegraph Accelerator
March 2 VNTR Investors Cocktail Bucharest (Crypto Expo Europe)
Reach out to lukas@vntr.vc if interested in presenting or sponsoring.
Thank you to our Partners:
Perfect — Book your flights, hotels, and supercars for the VNTR Rally using the Perfect Personal Lifestyle app with premium concierge services. Empower your routine with integrated GPT technology for seamless access to luxury services and an effortless lifestyle. Enjoy personalized assistance with tasks, errands, and reservations, freeing time for what truly matters. Join Perfect using "VNTR" code to get special discounts and VNTR experiences. Use Perfect via iOS, Android, WhatsApp or Telegram.
Synexis — Synexis transforms the startup and investor ecosystem with a cutting-edge blockchain- and AI-powered SaaS platform designed to elevate transparency, enhance visibility, and streamline due diligence and portfolio management. Our platform offers smart dynamic co-founder share distribution, effective commitment management, innovative intellectual property protection, and automated, immutable, timeline-driven reporting. Contact Dr Pavel Vinitsky to learn more.
Upcoming VNTR Events:
March 5 VNTR Investors Roundtable Riyadh (LEAP) partners Let's Disrupt Digital, Nexus Hub
March 6 VNTR LP Roundtable Riyadh (LEAP)
March 6 VNTR Investors Cocktail London
March 11 VNTR Investors Roundtable Austin (SXSW)
March 21 VNTR Investors Roundtable Porto Alegre (South Summit Brazil)
March 27 VNTR Investors Roundtable Hong Kong (Wow Summit HK)
April 10 VNTR Investors Roundtable Paris (Paris Blockchain Week)
April 16 VNTR Investors Roundtable Rio De Janeiro (Web Summit Rio)
April 19 VNTR Investors Roundtable Dubai (Token2049 Dubai)
April 19-21 VNTR Supercars Rally Dubai (Token2049 Dubai)
April 19 VNTR Investors Roundtable Miami (eMerge Americas)
April 24 VNTR Investors Roundtable Bangkok (Money 20/20 Asia)
April 24 VNTR Investors Roundtable Silicon Valley (Startup Grind Conference)
May 7 VNTR Investors Roundtable Dubai (Dubai FinTech Summit)
More events available on the VNTR Platform
Follow us on Social media: Instagram, LinkedIn, Facebook, Flickr, and Twitter.
UPCOMING VC EVENTS
Feb 23-Mar 3 ETH Denver, Denver, USA
Feb 26-29 Mobile World Congress, Barcelona, Spain
Feb 26-29 4YFN, Barcelona, Spain
Feb 27-28 Finovate Europe, London, UK
Feb 28-29 FiNext Dubai, UAE
Feb 28-29 Investopia, Abu Dhabi, UAE
Mar 3-4 Crypto Expo Europe, Bucharest, Romania (Complimentary tickets for VNTR PRO Members, VNTR50 for 50% off to all ticket categories)
Mar 4-7 LEAP, Riyadh, Saudi Arabia
Mar 6-7 MoneyLive Summit London, UK
Mar 6-7 Cloud Expo Europe, London, UK
Mar 8-16 SXSW, Austin, USA
Mar 19-20 CEE VC Summit, Warsaw, Poland
Mar 20 Investor Day, Paris, France
Mar 20-22 South Summit Brazil, Porto Alegre, Brazil (30% Discount using VNTR_30OFF_ATT or 10% Discount using VNTR_10OFF_BUS)
Mar 26-27 Wow Summit, Hong Kong
April 8-12 Paris Blockchain Week, Paris, France (15% Discount using VNTR15, Startup Competition Application)
April 18-19 Token2049, Dubai, UAE
April 18-19 EmergeAmericas, Miami, USA
April 19-21 VNTR Supercars Rally Dubai
April 23-25 Money 20/20 Asia, Bangkok, Thailand
April 23-24 Startup Grind Conference, Redwood City, USA (Startups Exhibition)
May 6-7 Dubai FinTech Summit, Dubai, UAE
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 22-25 Viva Technology, Paris, France
May 27-31 CC Forum, Paris, France
May 29-31 Consensus, Austin, UAE
May 29 -31 Gitex Africa, Morocco
June 5-7 South Summit, Madrid, Spain
June 17-20 Collision Conf, Toronto, Canada
July 10-11 World Business Forum, Singapore
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
Asian Companies Led The Way On New Unicorn Creation In January 2024
Eleven companies joined The Crunchbase Unicorn Board in January 2024 — the first double-digit monthly count in more than a year.
Six of the new unicorns are based in Asia, with three companies from China, and one each from Singapore, Hong Kong and India.
Three U.S.-based companies also joined the board last month, while in Latin America, one company joined from Mexico, and in Europe a single company from the U.K.
Best practical guide on VC fund regulations from Carta
Regulation of the ‘fundraising process’
Regulation of ‘private funds’
Regulation of the ‘fund manager’
ERA Compliance Checklist
Additional Regulatory Considerations
Big LPs secure increasingly bespoke terms amid tight fundraising
Against a challenging fundraising backdrop, large limited partners are using their bargaining power to secure highly tailored investment relationships with fund managers. Funds of one or separately managed accounts are far from a new phenomenon, but large LPs in particular have been returning to the structure as a way to secure more favorable arrangements with GPs. “In the last 12 to 18 months we have seen a marked increase in the number of these arrangements being negotiated,” said Vincent Ip, a partner in law firm Ropes & Gray’s asset management group. “And because the dollar amounts tend to be high, it has been very noticeable.”
The Network Effect: Why VCs Should Set Up An Entrepreneur Collective
Despite 2023 being labeled a “bloodbath” for venture capitalists, the industry remains optimistic with more than half of VCs reporting they plan to raise in the next 12 months. But to gain the confidence of LPs, VCs need to set themselves up for success beyond cash reserves. Although it takes a lot of time and energy, setting up an entrepreneur collective should be on a VC’s 2024 to-do list.
The Week’s 10 Biggest Funding Rounds: Ascend Elements Climbs To The Top
This is a weekly feature that runs down the week’s top 10 announced funding rounds in the U.S. Check out last week’s biggest funding rounds here.
After last week saw 10 rounds of $100 million or more, investors followed up with another strong week that saw a half-dozen startups raise similarly. Also like last week, rounds were split across several verticals, including energy, healthcare and AI. Is the large growth round making a comeback? Or is this a two-week aberration?
Exit values plunge as founders, investors dig in for another tough year
The value of exits for European startups plunged nearly 30% in 2023 amid ongoing macroeconomic uncertainty and a 10-year low in public listings, according to a new report from PitchBook. The average exit for startups in 2023 clocked in at €23m, 28.7% lower than in 2022. Those that did occur were driven by acquisitions rather than public listings, the total value of which was €1.4 billion in 2023, the lowest in 10 years and 90.2% lower than a year earlier. For founders, this tougher exit environment means that management teams will have to extend internal cash runways or take on debt or follow-on rounds in order to survive, Navina Rajan, senior EMEA private capital analyst at PitchBook, tells Sifted.
AI and the Vision Pro Don’t Need a Killer App
If you’ve spent enough time in startups, you’ve likely heard of the concept of the killer app: an application so good that people will buy new, unproven hardware just for the chance to use the software. It is a foundational idea for technology investors and operators that drives a whole host of investing and building activity. Everyone is on the hunt for the one use case so magical, so powerful that makes buying the device worth it.
People are hunting with particular fervor right now as two simultaneous technology revolutions—AI and the Apple Vision Pro—are underway. If a killer app emerges, it’ll determine who gains power in these platform shifts. And because our world is defined by tech companies, it will also determine who is going to have power in our society in the next decade.
But here’s the weird thing: The killer app, when it’s defined as a single app that drives new hardware adoption, is kinda, maybe, bullshit. In my research, there doesn’t appear to be a persistent pattern of this phenomenon. I’ve learned, instead, that whether a device will sell is just as much a question of hardware and developer ecosystem than that of killer application.
Why the VC secondaries market is booming
Olav Ostin, managing partner at investment firm TempoCap, remembers a time a few years ago when secondaries — the sale of stakes in companies or entire VC portfolios — were decidedly unsexy. Now, Ostin says, they’re hot stuff. This week, London-based investment firm Molten Ventures acquired a 19% stake in early-stage VC Seedcamp’s third fund for €8.5m. And it’s unlikely to stop there. “Our dealflow has gone from 1x to 5x,” says Ostin. Around 50% of TempoCap’s investments are secondaries. He says that aside from Seedcamp, several other of Europe’s biggest VCs have already begun making (unannounced) portfolio sales in a bid to generate much-needed liquidity, while plenty of others are thinking about it.
Why VCs Are Betting Robots Will Help Build Your Next Home
If you pass by a construction site today, you’re likely to see humans on the roof, nailing shingles, laying brick or rolling paint. Time-travel a few years into the future, however, and there’s a pretty good chance robots will be sharing the workload. That, at least, is the vision startups and their backers are banking on bringing to fruition. Over the past few years, investors have poured hundreds of millions into startups at the intersection of construction and robotics, Crunchbase data shows.
The mobile S-curve ends, and the AI S-curve begins
There’s never been a bigger contrast between mobile and AI — it’s the end of one technology curve, and the start of the other. It’s been 15 years since the App Store was launched; while the generative AI revolution started merely 18 months ago. Mobile is now dominated by a duopoly of two giants, administering a collection of <100 apps that never seem to leave the charts (and a long tail that doesn’t matter much). This duopoly’s only true opponents are world governments. The brand new AI ecosystem, on the other hand, is in a state of utter chaos with new startups, technologies, and papers launched every week. One generative AI startup looks to be in the lead one week, and a few weeks later, their entire approach is in crisis — just look at AI video, recently! New approaches like open source, new types of hardware, regulation, and much more threaten to upend the stack rank every few quarters — isn’t that existing!?
Want More Runway? Consider Your Infrastructure Costs
As a founder going into a fundraising meeting, the best story you can tell is about growth — ideally exploding user figures with a credible path to revenue or exit. If you haven’t figured out product-market fit yet, you need more time. Until you figure it out, it’s unlikely you’re going to be able to raise. The first place you should look is the place you have the most control: cash going out the door. Most companies start by trying to control staff costs. Layoffs are potentially reasonable if you’ve speculatively hired against an expectation of growth that didn’t materialize. This is what we’re seeing from Big Tech. The typical strategy here is to terminate more staff than you think you should, earlier than you think you should.
EU crypto AML authority to establish HQ in Frankfurt
The European Union’s new Anti-Money Laundering Authority (AMLA) will be headquartered in Frankfurt, the financial capital of Germany. The oversight body will start its work by mid-2025. The AMLA will have the authority to supervise “high-risk and cross-border financial entities” — including crypto firms — if they operate across borders or are considered high-risk. It will coordinate its oversight activities with financial intelligence units and regulators in other EU countries. In a Feb. 22 press release from the Council of the EU and the European Council, Frankfurt was revealed as the city of choice for the new agency’s headquarters. The European Central Bank is also located in the city. The shortlist of alternative locations included Brussels, Dublin, Madrid, Paris, Rome, Riga, Vilnius and Vienna.
Does your VC firm have a head of platform? You might need one
VCs offer their portfolio companies a range of services — known as a platform — which includes hiring or business development help. The idea is to offer startups extensive support pre- and post-investment, and the end goal is ultimately optimising returns. The head of platform is responsible for understanding their fund's objectives and the team’s unique offering to founders as well as building a strategy to deliver on those goals and promises.
How to buy USD Coin (USDC) in the United States
Navigating the crypto market and buying USD Coin in the United States can offer opportunities and pose challenges, particularly to those who have never invested in cryptocurrencies. However, rest assured that purchasing the USDC cryptocurrency is entirely legal and accessible in the United States. Yet, for a seamless crypto experience, it’s essential to understand the nuances before taking the first step.
Reddit files to list IPO on NYSE under the ticker RDDT
Social media company Reddit filed its IPO prospectus with the Securities and Exchange Commission on Thursday after a yearslong run-up. The company plans to trade on the New York Stock Exchange under the ticker symbol “RDDT.”
Its market debut, expected in March, will be the first major tech initial public offering of the year. It’s the first social media IPO since Pinterest
went public in 2019.
Reddit said it had $804 million in annual sales for 2023, up 20% from the $666.7 million it brought in the previous year, according to the filing. The social networking company’s core business is reliant on online advertising sales stemming from its website and mobile app.
The EU’s AI Act and How Companies Can Achieve Compliance
Earlier this month, member states of the European Union unanimously voted in favor of the AI Act, paving the way for its official passage in March or April of this year. Put simply, the Act is akin to Europe’s General Data Protection Regulation (GDPR), passed in 2016, but for artificial intelligence. The regulation imposes requirements on companies designing and/or using AI in the European Union, and backs it up with stiff penalties. Most violations of the act will cost companies €15 million or 3% of annual global turnover, but can go as high as €35 million or 7% of annual global turnover for violations related to AI systems that the act prohibits (e.g., using AI-enabled manipulative techniques, or using biometric data to infer private information).
Private equity funding is playing a greater role in consumer startup funding, particularly as venture capital funding dipped last year. Among startup brands, venture capitalists typically make early investments in promising companies — or sometimes even concepts — predominately based on the potential for big growth. But private equity involves making controlling investments in more established companies and helping sustain profitability.
Early-Stage Unicorn Numbers Tail Off In 2023
It’s getting harder and harder to be a young unicorn in the slowing venture market. With overall unicorn numbers way down — fewer than 100 joined The Crunchbase Unicorn Board in 2023 — the number of new early-stage unicorns has also dropped off significantly. Only 29 unicorns were minted last year after an early-stage funding round — defined as seed, Series A or Series B — an analysis of Crunchbase data shows. That’s the lowest total since 2019 and a 62% decline from 2022, when 77 early-stage unicorns were minted. It’s also a steep 73% drop from 2021, when 107 such unicorns were created.
Eye On AI: So Much For That Funding Slowdown
Before the year started, we pontificated there might be a slowdown in venture dollars and for the first few weeks it was looking like that prediction might be borne out. While the first half of January saw some nice-sized funding rounds for AI startups, extremely big rounds were nonexistent. In fact, there were no rounds of $100 million or more until the month’s waning days (both Rebellions.ai and Kore.ai announced big raises on Jan. 30). Overall, the month saw less than $2.2 billion go to AI startups, per Crunchbase data. That came after a year that saw more than $50 billion invested in the AI space.
Q&A: Hamilton Lane managing director on VC secondaries boom
It seems that everyone in the private markets is focused on getting their hands on one simple asset: cash. This search for distributions is driving many investors to sell their fund interests, portfolios or individual assets. The challenge is there aren’t many buyers. One such prominent secondaries buyer is Hamilton Lane. The private markets heavyweight has been buying secondary assets for more than 23 years and is currently targeting $5 billion for its sixth secondary fund, which would be 28% larger target than its $3.9 billion predecessor vehicle that closed in 2021.
What These Restaurant And Food Tech Investors Are Hungry For In 2024
The continuing surge in food delivery culture has not only transformed the way we enjoy our meals, it has also paved the way for groundbreaking advancements in restaurant operations technology. As consumers and investors taking part in the delivery boom of recent years, we are enthusiastic about the novel technologies that help restaurants better serve and adapt to evolving consumer preferences. In this current era of food and dining, where mobile-based food ordering and omnichannel food operations have become a standard, we, at Chingona Ventures, are hungry for more — more innovation, more efficiency and improved dining experiences for all.
When Bitcoin ETFs Are Right for Investors (and When They're Not)
There’s no doubt that the approval of bitcoin ETFs in January was a historic moment for the U.S. crypto market. It’s impactful from an acceptance as well as an access standpoint. Investors interested in digital assets heaved a big sigh of relief as the SEC finally relented, while financial news reporters can focus on which of the “Newborn Nine” ETFs will gain the top seat in terms of assets under management and volume. This is a sign of progress, something that a dedicated handful of industry leaders have been painstakingly trying to promote over the last several years through letters, repeated application submissions, and even, for a few, lawsuits. The BTC ETF approval feels like a big step in the right direction.
Venture Capital & Free Lunch
Even the best venture funds are wrong much more often than they’re right. Peter Lynch said of public markets investing, “In this business if you’re good, you’re right six times out of ten.” In venture capital, if you’re good, you’re right maybe three times out of ten, possibly twice, probably once, but when you’re right, you’re really right.
Therein lies the beauty.
No asset class’ constituents fail at a higher rate than venture capital’s, yet venture capital’s returns match or exceed all the others’.
For Seed Startups, A Time Of Extended Adolescence And Extra-Large Financings
For some rites of passage — such as learning to drive or casting a vote — the age when one may begin is clear. For other stops on the path from youth to adulthood — like no longer ordering off the kids’ menu or trick-or-treating on Halloween — the delineation is fuzzier. One stops when it feels right. Among startups, maturing out of seed-stage looks much the same. Securing a Series A round marks the closest thing to an official graduation from seed to early stage. But some startups take much more time to get there than others, if they make it at all. These days, startups can remain at seed-stage for quite a long time. They can also score pretty good-sized financings well before getting to Series A.
A Change Is Gonna Come. Right?
In 2017, the #MeToo movement took down some of the most powerful men in entertainment, business and politics, as women everywhere emerged from the shadows to bravely share their stories. A few years later, the murder of George Floyd galvanized millions of people to organize and march for racial justice. Amid the unrest was the hope that a change was going to come. It was this sense of hope that motivated me to quit my suit-and-tie job and take the reins at Chicago:Blend, a nonprofit founded by local venture capitalists to diversify the region’s VC and startup ecosystem.
State of venture investments in India, according to Lightspeed
Over 150 investors, including Singapore’s sovereign fund Temasek and Malaysia’s Khazanah, gathered at Mumbai’s five-star Trident Oberoi hotel on a recent Friday for venture firm Lightspeed India Partners’ “Lift Off” summit. The two-day event aims to spark partnerships by enabling “in a short window, many views, ideas and investments to be shared between nC2 connections (every permutation and combination),” described Karthik Reddy, co-founder of Blume Ventures. The event builds on the success of last year’s inaugural Lift Off, which helped spur deals and networking, including paving the way for Singapore sovereign fund GIC’s investment in business-to-business marketplace Vegrow later in the year.