VNTR Capital News Jan 21, 2024 – News, Events, VC Reads
Venture Capital, Web3, and Private Equity – Jan 21 News, Events, and VC Reads
Hello friends,
Happy Sunday!
VNTR Capital Newsletter is delivered to 65k+ 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
Davos WEF — We are back from Davos, where we hosted 3 engaging sessions to connect the Venture Capital community together:
Jan 16 - VC Luncheon with Casper Labs CEO, Mrinal Manohar and CSR Cliff Sarkin and active investors
Jan 17 - VC Roundtable hosted at The Hub by Casper Labs with presentations by:
Mrinal Manohar, Co-Founder and CEO at Casper Labs
Darlene Hart, Founder and CEO at USTAXFS
Amir Awan, Co-Founder & CSO at Filedgr
Anna Shakola, Head of BD at Cointelegraph Accelerator
Ralf Glabischnig, Founder at Inacta and Crypto Oasis
We had 60+ investor introductions who shared their investment thesis and interests to connect with the most relevant peers.
Jan 18 - VC LP Roundtable hosted at Ahura AI Hub with presentations by:
Igor Ryabenkiy, Founder and GP at AltaIR Capital
George Coelho, Co-Founder and GP, and Christina Ulardic, Partner at Astanor Ventures
Michael Kosic, Founding Partner and GP, Loyal VC
VNTR Supercars Rally UAE — We are 5 weeks away from a 3-day/3-night driving adventure in the UAE from February 29 to March 3. Traverse the stunning landscapes of UAE, navigate through captivating deserts, and conquer scenic mountain routes while behind the wheel of high-performance supercars. Join us for an unforgettable experience, complete with sightseeing stops and immersive moments along the way. Apply to join
VNTR GP membership — We launched a new service for GPs to connect with LPs. We are hosting LP Roundtables in Geneva, Doha, Riyadh, and more. Contact us if you want to join VNTR GP membership services. LPs can join the community and attend our LP Roundtables globally.
Corporate Membership and Sponsorship — The Corporate Membership program is designed to facilitate seamless connections with investors and premium clientele, offering a bespoke solution for your networking and outreach needs. Companies are invited to Apply to schedule a call.
VNTR Chapters — We are building a global network of VNTR Chapters and are actively seeking dynamic Chapter Directors in strategic cities to lead the expansion of the VNTR Capital community. As a Chapter Director, you will serve as a pivotal super connector, playing a vital role in fostering growth and building robust connections within the global Venture Capital community. Apply to join
This week
We hosted 6 offline events, 3 in Davos and:
Barcelona — The Barcelona chapter hosted an engaging roundtable on Jan 15 with a fireside chat with Nick Mitushin, CIO at ABRT VC.
New Delhi — We hosted our 9th roundtable in New Delhi on Jan 18. We will host recurring events to grow the VNTR community and connect to our communities in Bengaluru and Mumbai.
Stockholm — We hosted our first event in Sweden on Jan 18 to connect visiting VNTR PRO member Gillian Muessig to the local VC community.
Thank you to our Partners:
Casper Labs is a leading software and product development firm in the blockchain industry whose founding team authored the popular Casper Network. As the engineers at Casper Labs continue to introduce new features for the Casper codebase, Casper Labs has also developed into a fully-staffed software and solutions firm, offering products and services for enterprises and governments around the world. Casper Labs is proud to be in partnership with some of the world's most prestigious organizations, including SkyBridge Capital, the World Economic Forum, IBM, AWS, the XPRIZE Foundation & Open ExO, the HyperLedger Foundation, and others. Contact Cliff Sarkin, Chief of Strategic Relations, via email to learn more.
Ahura AI is empowering the workforce with tools that sharpen focus, accelerate learning, and turn knowledge into a superpower. For leaders, Gen AI training automates the mundane, freeing them to inspire, coach, and build high-performing teams. Contact Bryan Talebi, CEO and Co-founder, via email to learn more.
USTAXFS is an independent, boutique tax accounting firm established over 35 years ago, with offices in London, Zurich, Geneva, and the Nordics. We specialize in US tax advice, planning and compliance for individuals, funds, trusts and corporations with connections to the US tax system, wherever they may live or operate in the world. Contact Darlene Hart, Founder and CEO, via email to learn more.
Filedgr revolutionizes the way organizations and individuals manage digital ownership and verified data insights. Our innovative data authentication platform offers secure, digital product passports (akin to digital twins), enhancing value across the entire lifecycle of any product in various industries. For the automotive sector, our goal is to enable Filedgr users to boost and credibly demonstrate their vehicles' value, reduce expenses through special deals throughout the vehicle's lifecycle via the Filedgr marketplace (starting with discounted insurance, ending with the next car purchase), and generate real income through data monetization, leveraging the digital vehicle passport. Contact Amir Awan, Co-Founder & CSO, via email to learn more.
Upcoming VNTR Events:
Jan 23 VNTR Investors Breakfast Tel-Aviv (Israel Chapter event)
Jan 25 VNTR Investors Roundtable Melbourne (Australian Open 2024 side event)
Feb 7 VNTR Investors Roundtable London (ICE London side event)
Feb 8 VNTR Investors Roundtable Mexico City (Zonamaco side event)
Feb 27 VNTR Investors Roundtable Barcelona (Mobile World Congress side event)
Feb 27 VNTR Investors Roundtable Doha (Web Summit Qatar side event)
Feb 28 VNTR LP Roundtable Doha (Web Summit Qatar side event)
Feb 29 - March 3 VNTR Investors Supercars Rally UAE
March 1 VNTR Investors Roundtable Denver (ETHDenver side event)
March 5 VNTR Investors Roundtable Riyadh (LEAP side event)
March 6 VNTR LP Roundtable Riyadh (LEAP side event)
March 10 VNTR Investors Roundtable Austin (SXSW side event)
March 21 VNTR Investors Roundtable Porto Alegre (South Summit Brazil side event)
April 10 VNTR Investors Roundtable Paris (Paris Blockchain Week side event)
Additional 50+ VNTR events will be released on the VNTR Platform by the end of January 2024
Follow us on Social media: Instagram, LinkedIn, Facebook, Flickr, and Twitter.
UPCOMING VC EVENTS
Jan 24-26 sTARTUp Day 2024, Tartu, Estonia
Jan 24-25 Asian Financial Forum, Hong Kong
Feb 6-8 ICE London, UK
Feb 20-21 Crypto360, Dubai, UAE
Feb 21-22 Step Conference, Dubai, UAE
Feb 21-22 Catalyst, Lisbon, Portugal
Feb 23-Mar 3 ETH Denver, Denver, USA
Feb 25-28 AIBC, Dubai, UAE
Feb 26-29 Mobile World Congress, Barcelona, Spain
Feb 26-29 4YFN, Barcelona, Spain
Feb 29-Mar 3 VNTR Supercars Rally UAE
Mar 4-7 LEAP, Riyadh, Saudi Arabia
Mar 6-7 MoneyLive Summit London, UK
Mar 8-16 SXSW, Austin, USA
Mar 26-27 Wow Summit, Hong Kong
April 8-12 Paris Blockchain Week, Paris, France
April 18-19 Token2049, Dubai, UAE
April 18-19 EmergeAmericas, Miami, USA
April 23-25 Money 20/20 Asia, Bangkok, Thailand
May 6-7 Dubai FinTech Summit, Dubai, UAE
May 15-16 Next Block Expo
May 15-16 Echelon by E27, Singapore
May 22-25 Viva Technology, Paris, France
May 29-31 Consensus, Austin, UAE
May 29 -31 Gitex Africa, Morocco
June 5-7 South Summit, Madrid, Spain
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
VCs need to start investing, says EIF boss
It’s been a slow 18 months in European venture, with VCs sitting on an increasingly big pot of capital ready to invest once the market looks rosier and their current portfolio companies look healthier. But the biggest backer of European VCs, the European Investment Fund (EIF), expects things will start moving again in the second half of this year. “We have today probably more capital parked in the venture capital fund spectrum than ever before. And yet, the investment activity in 2023 has been very, very slow and actually remains relatively slow [now],” Uli Grabenwarter, director of equity investment at the EIF, tells Sifted in an interview.
Despite AI boost, unicorn creation hits 6-year low
Fewer unicorns were minted in 2023 than any year since 2017 as valuations toppled and VCs took longer to pull the trigger on new startups. Just 45 startups reached a $1 billion valuation, down 87% from 2021's high-water mark of 344 new unicorns, according to the Q4 2023 PitchBook-NVCA Venture Monitor. Among that cohort, generative AI dominated: 44% were AI and machine learning companies. That includes defense-tech startup Shield AI, large language model specialist Adept and deep-learning AI infrastructure developer Lambda.
In Search of Financial Freedom: The Answer Lies With Bitcoin, Not Stablecoins
In recent times, we've witnessed real-world scenarios where stablecoins like Tether's USDT and Circle's USDC have become crucial monetary tools. In Turkey, for instance, where high inflation has spurred citizens to embrace these digital assets as a hedge against an unstable national currency.
Stablecoins promise liberation from the traditional financial systems' constraints, but how well they actually deliver on this promise depends on how one defines freedom. If we measure stablecoins against various definitions of freedom as they appear in political science literature, this new form of money falls short.
The Week’s 10 Biggest Funding Rounds: Quantinuum And Flexport Lock Up Huge Rounds
The second full week of the new year got a big jolt near the end of it with Flexport’s huge raise. That round, combined with an even bigger raise by a quantum computing startup — and along with a handful of $75 million rounds — made it a pretty solid week.
Latin American Startup Funding Fell Again In 2023
A couple of years ago, Latin America was the fastest-growing region in the world for startup investment. Hot companies from Brazil to Mexico were securing large, later-stage rounds to scale up in sectors like real estate, fintech and e-commerce. Not anymore. In 2023, Latin America ranked for the second year in a row among the fastest shrinking regions for venture capital funding. Altogether, companies in South America and Central America pulled in an estimated $2.9 billion in seed through growth stage investment in 2023, per Crunchbase data. That’s a drop of 63% from 2022 and a remarkable 84% decline from 2021, when investment hit record-setting levels. For a sense of how 2023 compared over the longer term, below we charted out annual funding to Latin America, color-coded by stage, for the past 10 years.
General Catalyst eyes VC deal in India push
General Catalyst, one of the largest U.S. venture capital firms, is in talks to acquire an India-focused VC as part of efforts to expand its presence in the fast-growing South Asian startup market, three sources familiar with the matter told TechCrunch. The deal would allow General Catalyst to tap deeper into India’s vibrant technology scene that has lured over $100 billion in startup investments since 2010. General Catalyst has engaged with Venture Highway in recent months for the deal, according to two sources familiar with the matter. The deal with Venture Highway hasn’t finalized, so things including the target fund could change, the sources cautioned, requesting anonymity as the deliberation is private.
Welcome Back to the Unicorn Club, 10 Years Later
It’s been a decade since writing “Welcome to the Unicorn Club,” so it seems a good time to reflect on the wild ride we’ve been on the past ten years.
So much happened, this became a long post! Below we share context and takeaways, then more in depth explanations. For a visual journey, there’s a companion slide deck with lots of pictures. So grab a beverage and settle in for what we hope is a fun, eye opening read.
Gary Gensler approved the ETFs — but now he’s striking back
The Bitcoin spot ETF is the first investment product that will allow investors to get direct exposure to Bitcoin’s price through traditional and regulated investment products. It’s the first investment product linked to Bitcoin that the baby boomer generation is familiar with and can widely feel comfortable investing in. The approval came after a lengthy lawsuit led the D.C. Circuit Court to rule that the SEC had been hypocritical in approving Bitcoin futures ETFs but not spot ETFs. SEC Chairman Gary Gensler made clear his distaste in having to vote for the ETFs in a statement following the vote. (Most ETF approvals, even those that have consistently lost investor funds since approval, have not been accompanied by a statement from the chairman, much less one that recommended against investing in it).
Quantum computing deals hit record count in 2023
While a fully functioning quantum computer may still be years away, investors are showing a growing interest in the nascent tech area that promises to one day allow calculations at tremendous speed and power AI model building. This week, Quantinuum, a company that formed in 2021 through a merger of Honeywell's quantum unit and Cambridge Quantum Computing, raised $300 million at a valuation of $5.3 billion in a deal led by JP Morgan Chase. A record number of companies developing hardware and software for quantum computers raised funding last year despite a decline in total deal value, according to PitchBook data. Investor activity in the area is notable at a time when most prominent tech sectors registered a drop in deal count.
The year of keeping European startups ‘afloat’: 2023’s venture downturn in 4 charts
Last year was clearly a tough year for European VCs and startups — and fresh data shows just how deep the downturn was in 2023. Deal value fell nearly 46% in 2023 from the year prior, with European startups raising €57.1bn compared to €105.1bn in 2022, according to a new PitchBook report on the state of European venture. The number of deals also dropped 20% last year to an estimated 10,797 compared to 2022’s 13,557.
4 charts showcase European VC trends
Those hoping for Europe's venture market to recover in 2023 were disappointed as annual dealmaking totals came in significantly under those of the previous two years. Here's a look at four key trends from PitchBook's 2023 Annual European Venture Report that demonstrate how the downturn impacted deals, exits and fundraising. European VC deal value fell 45.7% year-over-year in 2023, coming in at €57.1 billion. Although a steep decline from previous records, it was still the region's third-highest annual total and higher than the 10-year average, demonstrating long-term structural growth.
Meet the Sequoia scouts currently looking to invest in European startups
At the end of 2020, Sequoia Capital — the US VC firm behind Google, Airbnb, DoorDash, WhatsApp and Instagram — quietly launched its famous scout programme in Europe. The programme, which has been running for over a decade in the US, is an individual investor network in which “scouts” — mostly founders and executives at high-profile companies — are given capital by the VC to invest in early-stage companies. It has led Sequoia to some portfolio champions too; most notably, Stripe.
Thailand opens doors to retail investments in infrastructure-backed digital tokens
Thailand’s Securities and Exchange Commission (SEC) has lifted restrictions on retail investors purchasing digital tokens backed by real estate or infrastructure projects. Previously, retail investors were limited to investing a maximum of 300,000 baht ($8,500) in these tokens. The updated rules, published in the Royal Gazette on Jan. 16, remove this limit, allowing retail investors to invest more freely in the real estate and infrastructure-backed digital token (REIT) market. The SEC's decision to lift the investment limit comes as the country’s cryptocurrency market is gaining momentum. In September 2023, Thailand’s largest bank, KBank, acquired the crypto exchange business Satang, signaling the growing acceptance of digital assets in the Thai financial system.
From Batteries To Building Materials, Green Manufacturing Startups Are Raising Billions
Modern humanity’s carbon-spewing ways probably have their roots in manufacturing. If it’s not the things we mass-produce, then it’s likely the processes used to make them. Or, in many cases, both are to blame for emitting copious quantities of CO₂. Given this state of affairs, it’s not surprising that founders and venture capitalists have taken an interest in greener manufacturing. The space emerged as a popular theme, even amid a toned-down funding climate last year, with more than $10 billion invested globally across the larger rounds, per an analysis of Crunchbase data. The dataset also enabled a closer look at where investment is going. Below, we curated a list of 34 of the larger financings, covering areas from battery recycling to green steel.
How to raise money for your deeptech startup
Deeptech is a challenging frontier where groundbreaking ideas often face prolonged timelines before they reach the market. For European deeptech founders, especially in sectors like medtech where time to markets can easily exceed four years, this can mean facing a common but frustrating response from VCs: “Come back when you’re closer to the market.” This chicken-and-egg problem is quite common in deeptech fundraising: securing funding is tough without market proximity, yet approaching the market is difficult without adequate funding.
Why 2024 Will Be Bitcoin's Year
2024 is already shaping up to be a transformative year for digital assets broadly, and bitcoin particularly. With SEC approval for a spot bitcoin ETF last week and bitcoin’s next halving event scheduled for April, we anticipate key shifts in both the supply and demand. Understanding these shifts is critical to understanding what role digital assets may play in the years ahead as they help to foster worldwide financial accessibility. On the demand side, the SEC’s potential approval of a spot bitcoin ETF should open the door for a significant number of new investors seeking exposure to the price of bitcoin directly in their traditional investment accounts. They can now forego the complexity of dealing with crypto exchanges, and access a familiar investment vehicle — an ETF. This will spark both higher liquidity and greater price stability in bitcoin. Equally importantly, the SEC’s approval represents a significant milestone for bitcoin’s growing legitimacy with established financial institutions.
Aramco expands global venture capital program with $4bn funds injection
Aramco (“the Company”), one of the world’s leading integrated energy and chemicals companies, has allocated an additional $4 billion to its global venture capital arm, Aramco Ventures. It will more than double the capital allotted to Aramco Ventures, increasing its total investment allocation from $3 billion to $7 billion. It will take Aramco’s overall venture capital allocation to $7.5bn, which also includes the $500 million venture capital fund Wa’ed Ventures that focuses on the start-up ecosystem in the Kingdom of Saudi Arabia. The decision reflects the growing significance of Aramco’s venture capital program in enabling the development of disruptive new technologies, creating diversification opportunities for Aramco, and paving the way for collaborations with innovative start-ups.
Homegrown African VCs emerge to fill in the gaps foreign investors cannot
The African startup scene is expanding beyond the traditional markets of Egypt, Kenya, Nigeria and South Africa, with accelerated activity now reported in other regions across the continent. As the market grows, there are calls for more local fund managers to unlock additional capital and support founders. This push arises from the fact that most deals in the continent have in recent years been taken up by foreign VC firms, which accounted for 77% of the total funding in 2022. Without a doubt, the presence of influential, global VC heavyweights like SoftBank, Khosla Ventures and a16z has had a major impact on the overall ecosystem. It has brought international attention to the region, and it’s a signal of value that others have moved to follow.
Cybersecurity Startup Funding Hits 5-Year Low, Drops 50% From 2022
Just two years ago venture funding to cybersecurity was on fire, with more than $23 billion flooding the sector. In 2023, cyber startups saw only about a third of that, as venture funding dipped to its lowest total since 2018. Security companies raised $8.2 billion in 692 venture capital deals last year — per Crunchbase numbers — compared to $16.3 billion in 941 deals in 2022. The drop was exacerbated by Q4 numbers, as startups locked up $1.6 billion — marking the lowest quarter since Q3 2018 when cyber firms raised just $1.3 billion. Only three cyber startups raised rounds above $100 million.
Startup Investors Have Fled The Metaverse
Almost nobody these days is spending much leisure time in the metaverse. Additionally, almost no investors are backing fresh rounds for startups creating the next generation of virtual worlds. That, broadly, is the finding from our latest data dive into venture funding tied to the metaverse, virtual worlds and augmented reality. Investment around these themes hit a multiyear low in 2023, driven by declining support for consumer-focused startups.
VC fund closes stretch to 15 months—longest in a decade
For VC fund managers, 2023 was the year of asking LPs for deadline extensions. Venture firms have, on average, taken longer in 2023 than any other year in recent memory to close their latest funds. The median time to close, 15 months, was a 46% jump from 2021 and the highest rate in at least a decade, according to the Q4 2023 PitchBook-NVCA Venture Monitor. It's a far cry from 2022, when runoff from 2021's capital waterfall brought fundraising cycles to a decade low: 9.3 months for the typical fund.
Startup Radar: VCs on fintech startups you need to know
Venture capital funding for fintech startups has significantly fallen globally since the onset of the downturn, with dealmaking returning to pre-pandemic levels. Last year, $46.3 billion was invested across 3,867 deals, according to PitchBook data, compared to 6,517 rounds worth $88.8 billion in 2022. But VC dealmaking is expected to pick up this year, and fintech startups are likely to see more activity as the market becomes more rational and companies focus increasingly on underlying metrics instead of growth at all costs.
India’s Share of Global VC Funding Falls to 2.9% in CY23, the Lowest in Five Years
In the calendar year 2023 (CY23), India’s share of global venture capital (VC) funding declined to 2.9%, marking the lowest since CY19, with total funding amounting to $7.3 billion. This drop is significant compared to CY22 when it reached $20.6 billion, representing 4.8% of the global figure. The number of new unicorns in India also decreased, contributing only two out of the 71 globally, down from 22 in CY22, the business daily reported. India’s share of total global deals fell to 3.6% in CY23 from 4.2% in CY22. Late-stage funding accounted for 9%, down from 12% the previous year, while mid-stage funding decreased slightly.
How to mobilize generalist VCs for a moonshot idea
Moonshot startups, those daring ideas that promise to reshape our world, are inherently about venturing into uncharted territory, giving us new superpowers and creating new markets. They’re high stakes, high reward, and, more often than not, deeply technical. As someone who navigates these waters, I see firsthand that when securing funding, it’s just as crucial to mobilize generalist VCs as it is to mobilize sector-specific investors for your round. Yes, having sector-specific investors on board is invaluable. But we shouldn’t underestimate the power of the generalist perspective.
PE buyers eye cash-constrained startups for add-ons
More PE firms are examining the opportunity to snap up cheap add-ons for their portfolio companies as the dry spell in venture funding has left many startups hungry for cash. Industry participants say they are seeing PE-backed platform companies bargain-hunting for startups that are experiencing tight liquidity. The target businesses are unable to rely on existing venture backers, who are unwilling to inject new capital to save them, and some have defaulted on their debt obligations. With these target companies in a tight spot, and bankruptcy not typically viewed as a viable option, buyers are able to negotiate big valuation cuts.
New VC in town: “MANG”
Meet MANG (Microsoft, Amazon, Nvidia, Google)
The Demand Side: Investing in Customers
The Supply Side: Digital Tollbooths Printing Cash
What This Means for Entrepreneurs
The Early-Stage Game; Part II
I wrote, in part, about how venture funding for founders and for fund managers had pulled back significantly, and how big of an opportunity that is for both to gain market share in a down economy.
For example, 2,725 VC funds disappeared last year at the same time that Antler was growing itself methodically to becoming one of the most active funds in the world, according to Pitchbook.
I also mentioned why the early-stage game shouldn’t be lumped in with the rest of PE & VC.
While total early-stage deal volume is expected to be 16,000-20,000 per year, there are really only about 5,000 companies started each year around the world that are venture-backed and worth competing for as an early-stage investor. The 4X delta in that number is primarily bad checks and the massive volume of angel investments.