VNTR Capital News July 30, 2023 – News, Events, VC Reads
Venture Capital, Web3, and Private Equity – July 30 News, Events, and VC Reads
Hello friends,
Happy Sunday!
VNTR Capital Newsletter is delivered to 40k+ 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 1-on-1 Speed Networking Event — Grow your co-investors network at the VNTR Investors Speed Networking event on Sep 6 with VNTR members, where you can build valuable new connections. The key to successful investments lies in collaboration with co-investors, and VNTR offers the perfect platform to build new relationships and co-investing. To participate, kindly ensure you have an approved investor account on the VNTR Platform.
VNTR Sponsorship — We plan to host additional 30+ events by the end of 2023. Companies seeking to collaborate with VNTR and engage with investors and their portfolios are welcome to apply for partnership opportunities.
VNTR Chapter Director program — Join the VNTR team to build VNTR Investors Membership in tech hubs globally and build a secure community for VCs, angel investors, family offices, crypto investors, and CVCs. You can learn more about the VNTR Chapter Director role and apply here.
Create your VNTR Platform Account
Last Week
Tokyo — We hosted our first VNTR Roundtable in Tokyo on July 26 as a side event to WebX Asia. (view photos)
Upcoming
VNTR Masterminds — This week, VNTR PRO Members will join 3 Masterminds on Aug 1 and 2. Members will share their progress and challenges to grow faster by getting peer support.
Abuja, Nigeria — Tomorrow, we will host VNTR Investors Luncheon on July 31 in Abuja as a side event to E-Tech Africa.
Santa Cruz Bolivia — We partnered with VCiLAT to host VNTR Roundtable Santa Cruz on Aug 16 at the conference and provide a place for VCs and angels to learn about the current investment trends in LATAM and each other through the roundtable introductions.
Toronto — VNTR Toronto Chapter will host the second roundtable on Aug 16 as a side event to Blockchain Futurist Conference.
Bali — VNTR Bali Chapter will host its first event on Aug 25 to connect investors at Coinfest Asia.
Singapore — Our flagship event in South East Asia is scheduled on Sep 14 in Singapore as a side event to Token2049 and F1 Grand Prix Singapore. This event also signifies the inauguration of the VNTR Singapore Chapter to establish our strong presence in the SEA region.
Thank you to our Partners:
Crypto Hunters is a new futuristic reality adventure TV show and immersive mobile game utilizing augmented reality (AR), with the primary objective of promoting widespread adoption and educating the general public about Crypto, Blockchain, NFTs, and Web3. The show aims to engage large audiences globally and increase their understanding of these concepts through captivating challenges and rewards. Currently, Crypto Hunters is in the process of recruiting 20 candidates (10 teams of 2) who will compete across 10 episodes for a chance to win the grand prize of $1 million. The show intends to reach a staggering audience of 500 million viewers, granting them the opportunity to participate in the immersive AR game associated with Crypto Hunters. Viewers can compete for rewards and cash prizes by engaging in various challenges and games. This synergistic relationship between the show and the game will create an extensive ecosystem and a vibrant community of Crypto Hunters token (CRH) holders. The tokens will serve as a means for community members to partake in games, purchase NFTs, merchandise, and more. With its multi-season format, the show plans to propel the adoption of cryptocurrencies further and foster one of the largest crypto communities globally. Join the Crypto Hunters Telegram community. Contact HK to learn more.
Upcoming VNTR Capital events:
July 31 VNTR Investors Luncheon Abuja Nigeria (During E-Tech Africa Summit)
Aug 1 VNTR Mastermind Group A (Online)
Aug 2 VNTR Mastermind Group B (Online)
Aug 2 VNTR Mastermind Group C (Online)
Aug 16 VNTR Investors Roundtable Santa Cruz, Bolivia (During VCiLat)
Aug 16 VNTR Investors Roundtable Toronto (During Blockchain Futurist Conference)
Aug 25 VNTR Investors Roundtable Bali (During Coinfest Asia)
Sep 6 VNTR Investors Roundtable Seoul (During Korea Blockchain Week)
Sep 14 VNTR Investors Roundtable Singapore (During Token2049)
Sep 20 VNTR Investors Roundtable San Francisco (During TechCrunch Disrupt)
Sep 25 VNTR Investors Roundtable Munich (During Bitz & Pretzels)
RSVP to Upcoming VNTR Capital Events
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UPCOMING VC EVENTS
Aug 16-18 VCiLat, Santa Cruz De La Sierra, Bolivia
Aug 24-25 Coinfest Asia 2023, Bali
Sep 1-5 IFA Berlin. Germany
Sep 4-5 Seamless, Riyadh, Saudi Arabia
Sep 6-7 DLD, Munich, Germany
Sep 12-17 Crypto Valley and Crypto Oasis Festival, Zug / Zurich, Switzerland
Sep 12-14 Dreamforce, San Francisco, USA
Sep 12-19 Berlin Blockchain Week, Berlin, Germany
Sep 12-13 MoneyLive Asia, Singapore
Sep 12-14 Glendale Tech Week, LA, USA
Sep 13-14 Token2049 Asia, Singapore
Sep 18-19 IPEM Paris, France
Sep 19-21 TechCrunch Disrupt 2023
Sep 20-21 DMEXCO, Cologne, Germany
Sep 21-22 Metaverse Summit, Paris, France
Sep 21-23 TechSparks 2023, Bengaluru, India
Sep 24-26 Bits and Pretzels, Munich, Germany
Sep 26-28 Mobile World Congress, Las Vegas, USA
Sep 27-30 Monaco Yacht Show, Monaco
Oct 3-4 CV Summit, Zug, Switzerland
Oct 4-5 Sifted Summit, London, UK
Oct 5-6 Zebu Live, London, UK
Oct 7-8 DeGameFi, Tbilisi, Georgia
Oct 8-9 Wow Summit, Dubai, UAE
Oct 15-18 Expand North Star Dubai Harbour, UAE
Oct 16-20 GITEX Global, Dubai, UAE
Oct 16-22 NY Tech Week, New York, USA
Oct 20-23 Plan B Forum, Lugano, Switzerland
Oct 22-24 Money 20/20, Las Vegas, USA
Oct 24-26 Digital Nigeria, Abuja, Nigeria
Oct 24-25 Blockchain Life 2023, Dubai, UAE
Oct 26-27 World Blockchain Summit, Dubai, UAE
Oct 30-Nov 5 Hong Kong FinTech Week, Hong Kong
Nov 7-10 Nearcon, Lisbon, Portugal
Nov 13-16 Web Summit, Lisbon, Portugal
Nov 13-17 AIBC Europe, Malta
Nov 14-16 SALT iConnections Asia, Singapore
Nov 15-17 Singapore Fintech Festival, Singapore
Nov 30-Dec1 SLUSH, Helsinki, Finland
Dec 4-5 Next Block Expo, Berlin, Germany
Dec 8-10 Art Basel, Miami, USA
If you would like to submit VC-related events, please respond to this email or Telegram @byuric
Follow us on Social media: Instagram, LinkedIn, Facebook, Flickr, and Twitter.
Check out VNTR Capital upcoming events
VC Reads
The Most Valuable US Tech Companies Still Aren’t Buying Startups
Selling your startup to one of the most valuable U.S. technology companies used to be both a popular and mildly realistic path to exit. Not anymore. These days, the most deep-pocketed acquirers seldom snap up venture-backed companies. Their aversion to such deals has intensified in recent quarters, amid a broader slowdown in startup M&A. So far this year, the “Big Five” most valuable U.S. tech companies — Apple, Microsoft, Google, Amazon and Nvidia — have made just five known startup acquisitions, per Crunchbase data. Four of the acquirees were seed-stage companies, and none of the purchase prices were disclosed. Currently, 2023 is on pace to have the smallest number of acquisitions by the Big Five in years.
TOP 30: Europe’s biggest startup hubs in 2023 (by Eu Startups)
Since 2011 we are publishing an annual ranking of Europe’s biggest startup hubs. It’s been quite a while since we released the previous edition of this renowned ranking, so it was about time to do some research and publish an updated edition.
Here Are The Venture Capital Firms That Are Investing Much Less
Tiger, Index & Insight Rank Among Firms That Most Dramatically Slowed Investing Pace. Y Combinator & Sequoia top resilient list.
It can be difficult to know which investors are really open for business.
As the startup slowdown drags into its second year, a number of investors have quietly gone dark, cutting down on their investments and taking long and lazy summer vacations.
Some venture capital funds will never raise another funding round. Venture capital firms die slow deaths.
Crossover funds can be fair-weather friends.
Other firms will live to fight another day, but are being much pickier about what checks they write.
Investment Committee 101: how VCs decide to back a startup
So, you’ve pitched to a VC, they’ve drilled into your business fundamentals and… they like you. Happy days — but you’re not over the finishing line just yet. Now the decision on whether or not to offer you a term sheet goes upstairs, to the investment committee (IC). They’re the difference between bagging that funding round and having to return to the pitching roadshow. But what goes on behind those closed doors? How do they reach a decision? And who makes the final call? To find out, Sifted spoke to VCs from LocalGlobe, Seedcamp and Octopus Ventures. The IC is the group of people at a VC firm who decide whether or not to back a startup. “Broadly, investment committees serve two purposes,” says Alliott Cole, managing director of multi-stage VC Octopus Ventures. “Firstly, to make a decision on whether or not to invest into a business and secondly, to ensure that the process around making this investment dec
ision has been adhered to properly and documented correctly.”
Startup funding: How to start fundraising
Fundraising can supercharge your startup’s growth, but it’s tricky to know when to start the process. Raising funds isn’t as simple as pitching your idea and receiving money; it’s a choice you’ll want to think carefully about.
Each time you take money from investors, you’re giving them a piece of ownership in your company. This dilutes your personal equity (reducing your share of proceeds in an eventual exit) and opens the door to outside feedback and opinions. Investors aren’t just sponsors—they can influence marketing, hiring, and product development, especially if they have a seat on your company’s board of directors.
Bubble of VC funding seems to have burst, says S&P Global
With global fintech funding falling sharply from the heights of 2021, the bubble seems to have burst, according to S&P Global Market Intelligence’s “Global Fintech Funding Trends” report. In 2022, fintech funding dropped by a third to $63 billion, S&P said. The first half of 2023 was even worse, with venture capital funding of fintech startups falling to just $23 billion, 49% lower compared with the first quarter of 2022, it said. “These numbers mask a harsher truth: A small number of large deals, including Stripe’s $6.87 billion round, made the first-half results look better than they probably should,” S&P said. “Financial technology has been called the poster child for the venture capital bubble of 2021. For a period during the worst of the Covid-19 pandemic, the hype cycle churned out fintech companies and fintech-focused venture funds. But the sad thing about bubbles is that they burst,” S&P said.
AI Leads For New Unicorns In June
June’s new unicorn count is down from the 32 new unicorns minted in June 2022 and the 53 new unicorns born in June 2021. Since July 2022, new unicorn counts have fallen drastically and, starting in November, have settled primarily in the single digits. A total of 44 new unicorns joined the board in the first half of 2023. They collectively added $56 billion in value to the board. Over the life of these companies, they’ve raised $11 billion. Compare these new entrants to the first half of 2022, when 151 companies joined, and to H1 2021, when counts soared with 295 companies joining. A quarter of new unicorns this year, 11 companies, are native AI companies. Other trending unicorn sectors include energy companies (totaling seven), health care and biotech (six companies in each), and semiconductor companies (four).
Europe's median VC round swells as investors target larger deals
European venture deals continue to swell as investors focus increasingly on more mature startups and existing portfolio companies. In H1, the median deal size reached €2.1 million (about $2.3 million), according to PitchBook's Q2 2023 European Venture Report, up from €2 million in 2022. As investment in European startups has fallen this year, VC investors are trending toward larger deals. Rounds under €1 million have seen their percentage of overall deal count decline while those over €5 million have increased their share. Furthermore, some 70.4% of European VC deals were follow-on rounds, the highest percentage since 2020. Both venture growth and late-stage rounds have increased their share of deal activity at the expense of the angel and seed stage investments.
Indexing Venture and Other Fool's Errands
It’s a mistake to think of venture like other asset classes.
Firstly, the power law applies to both managers and their portfolios. Trying to index a power law without access to, or knowledge of, the top 1%, will leave you with very mediocre returns.
Secondly, most attempts at indexing are done with what has worked in mind. But what has worked isn’t usually what will work. The market is too efficient and funds swell too quickly. New LPs won’t have the same asymmetry the old ones did.
Avoiding overly efficient markets and concentrating on spaces with asymmetric upside (usually the emerging domains others aren’t investing in) is one of the few ways a fund of funds can justify their fees.
Funding For Drone Delivery Startups Still Flying High Amid VC Downturn
Those who follow the startup world are accustomed to pitches about how our future lives will look. Sometimes it never pans out. Other times, shifts happen surprisingly fast. For consumer drone delivery, the journey from vision to reality hasn’t been the quickest. It was nearly a decade ago that Jeff Bezos first unveiled Amazon’s R&D initiative around drone package delivery. And while drone startups have a long history delivering vital supplies to remote locales, they’re not yet a presence in your typical American suburb. If recent startup funding is any indication, however, we could see the pace of rollouts picking up. So far this year, more than $1.5 billion has gone to companies in the drone space, with a particular focus on delivery, Crunchbase data shows. The largest funding recipient, San Francisco-based Zipline, is making the case that consumer delivery is a concept whose time has come.
Crypto Venture Funding Sees Unexpected Investment Spike With $201.4M Venture Funding Injected Last Week
While it's true that startup funding has been difficult to come by in 2023, that doesn't mean that the well has dried up completely — that's especially true in the crypto space.
Last week, crypto startups raised more than $200 million in venture funding, led by a $54 million raise for metaverse startup Futureverse and a $40 million Series A round for RISC Zero.
The Broken Venture Value Chain
There’s a lot of mis-information being shared about VC performance and how it translates into LP returns.
There’s also a lack of understanding about how the VC ecosystem broke the LP ecosystem over the past few years and why this matters A LOT.
Why are PE firms snatching up asset managers at a record clip?
Private equity is stepping up its buying binge of asset managers. In the first half of this year alone, the industry invested more capital than in any year of the past decade on deals to acquire asset management firms. Through July 20, there were 39 deals totaling $13 billion, already $2.6 billion higher than the previous peak in 2021, according to PitchBook data. For years, asset managers have acquired alternative managers to boost their exposure to alternative investments. More recently, TPG paid $2.7 billion in May to acquire Angelo Gordon, an alternatives manager with $73 billion in assets. That deal included Angelo Gordon's $55 billion in private credit assets, which cover direct lending, corporate credit and structured credit, and its $18 billion real estate platform. The result is TPG, a publicly traded firm, expanding its client base and increasing its total AUM to $208 billion.
Manager Selection in Venture Capital
The Power Law, popularized by investor Peter Thiel and then immortalized into the eponymous book title by author Sebastian Mallaby, drives venture capital returns. Venture capital empirically operates according to this principle, with singular outliers in most portfolios returning more capital than the entire portfolio’s remainder. Those VC managers who wish to outperform are therefore almost entirely beholden to not just the existence of the outlier they back, but to its scale and amplitude.
CBDCs Wrongfully Break Down the Separation Between Money and State
Central banks around the world are accelerating their experiments with issuing digital currency. Whether it’s the New York Fed’s announcement of a successful proof-of-concept, or the Bank of England’s recent completion of the next phase of its digital pound experiment, over 130 countries around the world are toying with issuing central bank digital currency (CBDCs). And why wouldn’t they? Central banks can announce that they are protecting consumers and introducing cost-saving devices by removing private banking middlemen. And, simultaneously, they gain a whole new tool in their policymaking arsenal. Yet however tempting it is to remove these middlemen, the key question is who will stand on the other side of the ledger – to which the only answer is a sprawling and inquisitive government that can track every dollar and cent you spend.
5 key questions climate tech founders should ask impact investors
The world is witnessing an exciting and necessary surge in climate tech startups, with the impact tech sector up by 64% since the end of 2020. And with that increased supply, a new breed of investor has come to the fore: the impact VC. As an impact specialist working within a VC, I’m committed to supporting founders in achieving their ambitious goals and invoking positive change. To help drive more trackable impact investments, here are five key questions that all founders should consider asking impact investors competing for a space on your cap table. First things first, you need to learn the jargon. The recent implementation of the Sustainable Finance Disclosure Regulation (SFDR) in the EU has brought clarity to fund categorizations. It’s important to discern whether the investor is an Article 6, 8, or 9 fund; understand the difference and know what this means for you, as a founder.
Hey, VCs: Here Are 3 Mistakes You’re Making In Pitch Meetings With Immigrant Founders
In the United States, roughly 80% of graduate students studying computer science and electrical engineering are international students. The skills they acquire here, however, are increasingly being taken to countries like Canada, Australia and the United Kingdom, where immigration policies aimed at recruiting talent are more appealing. This should come as no surprise. The chances of winning the H1-B visa lottery are now just 1 in 7. Consequently, less than 25% of international students stay after earning their master’s degree. By overlooking these would-be immigrants, the U.S. is undermining its own potential and jeopardizing its future as a global leader in innovation. I believe fellow venture capitalists are doing the same. Based on my experience investing in immigrant founders, I’ve noticed three mistakes VCs make in pitch meetings that lead to promising founders slipping under their radar.
Sequoia slashes its crypto fund by 66% after industry collapses
Venture capital giant Sequoia Capital reportedly downsized its cryptocurrency fund from $585 million to $200 million, amid a liquidity crunch and a pivot away toward smaller crypto players. According to a July 27 Wall Street Journal report, the tech-focused VC firm told investors in March it would reduce its Sequoia Crypto Fund — along with its ecosystem fund — to better reflect changed market conditions. The cryptocurrency fund will now focus more on backing early-stage startups, given the recent crypto industry turmoil that took away many of the opportunities to back larger companies. Another motive behind the cuts is to lower the capital threshold and thus the barrier to entry for investors to partake in Sequoia’s fund offerings, according to the sources. “We made these changes to sharpen our focus on seed-stage opportunities and to provide liquidity to our limited partners,” Sequoia reportedly said in remarks to the Financial Times. The firm added it had returned more than $15 billion to investors over the past three years.
China addresses investor concerns in meeting with global VC, PE funds
Chinese regulators met with global investors on Friday, according to people familiar with the matter, stepping up the government’s bid to boost market confidence as the country’s economic recovery loses steam. China Securities Regulatory Commission vice chairman Fang Xinghai met with some global venture capital and private equity firms to hear their concerns about investment in the country, the people familiar said. Among those present were Neil Shen, founding partner of HongShan —formerly known as Sequoia Capital China — and an executive from Warburg Pincus. Fang was accompanied by regulators from the securities watchdog and the Asset Management Association of China, the people said.
Alarming Decline In Startup Creation Presents Challenges And Opportunities For Entrepreneurs
In recent years, a concerning trend has emerged in the entrepreneurial landscape: a steep decline in the formation of new startups. Let’s take a closer look at this phenomenon, including potential reasons for the decline and opportunities for future entrepreneurs to leverage this unique situation. Analyzing data from Crunchbase on 27,000 software companies founded between 2020 and July 2023 in the United States, Israel and the European Union, a consistent and concerning decline in new startup formations becomes apparent. From 2020 to 2023 (estimated), the number of new startups formed in the U.S. is on pace to decrease by approximately 86%, dropping from 6,424 to 1,046. Similarly, Israel is on track to witness a decline of around 89%, from 333 to 34 startups. In the EU, the number, as of mid-year, is on pace to decrease from 5,147 to 640 startups, reflecting a decline of about 87%.
Founders and investors say the price still isn't right for most European VC secondaries
It should be a great time for venture secondaries in Europe. Amid a cooldown in funding, some companies have marked down their valuations by as much as 85% from their peak. That ought to mean great deals can be had by buying shares from early investors, founders and employees who want to cash out. But investors say that secondary activity is still sluggish as startup founders remain hesitant to reprice their shares, and investors stay reluctant to invest in anything but the best companies. Only a few, very big investors are getting more interested in the market. “There’s a bifurcation in activity levels between top-performing assets and the middle/bottom of the pack,” says Dany Bidar, principal at Octopus Ventures. “The most in-demand assets are even trading at a premium for the first time this year,” he says, while “the rest of the pack are struggling to even trade at +70% discounts in some instances.”
PE breaks its exits slump, raising rebound hopes
Private equity's paltry flow of exits sprang to life at midyear, ending a yearlong decline and setting up the chance for a rebound. Exit value totaled $87.3 billion in Q2, a 67% jump from the previous quarter and the first sequential quarterly rise in value in 12 months, according to PitchBook's Q2 2023 US PE Breakdown. "It looks like PEs are finally sharpening their pencils and really applying more resources to the sell side," said Tim Clarke, PitchBook lead analyst and co-author of the report. "They're really bearing down on selling—equally as much as buying." Four deals over $1 billion, all announced late in the quarter, helped "stop the bleeding," Clarke said. After a blockbuster year of exiting investments in 2021, firms' asset sales and IPOs waned as public and private valuations both declined. The resulting drop-off in exits surpassed that of the global financial crisis 15 years ago.
Why France Is Emerging as a European Crypto Hub
The introduction of the Markets in Crypto Assets (MiCA) regulation has brought a sense of cohesive direction to the European crypto industry. Where crypto assets had previously existed in a gray area, with firms and investors grappling with varied regulatory frameworks on a country-by-country basis, MiCA now promises widespread harmony. Expected to be fully implemented by the end of 2024, MiCA regulations will influence and drive the dynamics between governments, communities and projects over the next 18 months as the Web3 scene continues to evolve and innovate. In the lead up to MiCA’s full implementation, we can expect to see the EU – and France in particular, for reasons mentioned below – as a core hub of this progressive movement. With Paris recently hosting the sixth annual EthCC, the first since the introduction of MiCA, this year’s iteration also feels especially significant in line with the recent surge in President Macron’s efforts to make France fertile ground for Web3 enterprise.
Venture Capital — We’re Still Not Normal
The distribution of outcomes in U.S. venture is still far from a “normal” distribution. It remains highly right-skewed in that a relatively small number of winners drive returns. Less than 4% of the capital invested into venture-funded companies exiting over the last decade generated a 10X or greater multiple, while thirty-seven percent generated a less than 1X return (i.e., lost money).
Almost 70% of Israeli startups act to shift funds, relocate due to judicial shakeup
Almost 70 percent of Israeli startups are taking active steps to pull money and shift parts of their businesses outside the country due to the uncertainty created around the proposed judicial overhaul, according to a survey by Start-Up Nation Central, which tracks the local tech ecosystem.
The findings of the survey showed that 68% of Israeli startups have started to take “legal and financial steps,” including the withdrawal of cash reserves, moving their headquarters outside of Israel, relocating employees and conducting layoffs. Overall, 78% of the surveyed startup executives reported that government’s controversial plan to weaken the country’s judicial system is “negatively” impacting their operations, and 84% of venture capital investors said it has a negative influence on their portfolio companies.
How-to guide: Pitching in a VC downturn
After years of exuberance, venture capitalists are becoming more selective about where they invest. And many startups have found that raising capital is more difficult. Investors pay more attention to the pitch financials and take longer with their investment decisions. At the same time, many of the same rules apply—with a focus on a startup's long-term prospects and the quality of the founding team. “[The first meeting] is extremely important,” said Techstars CEO Maëlle Gavet. “You should think about it a little bit like a date. You have to make a good first impression. Will it be enough to get married? No. But if you make a really bad first impression, it's gonna be hard to get back on track.” The numbers paint a grim picture for those raising their first round. VC deal count is down nearly 33% globally at midyear 2023, compared with the same period last year, according to PitchBook data.
As pre-seed investors, we often provide guidance to the founders of our companies on questions related to equity compensation for advisors. In this series of articles, we aim to provide a comprehensive guide to these topics. As a founder or advisor, you can use this guide as a reference while discussing equity compensation terms, and we are happy to provide additional assistance if you have further questions. This is the second part of our guide. It covers questions about vesting, termination, 409A valuation, restricted stock awards (RSA), non-qualified stock options (NSO), and 83(b) election.
Global VC investment muted despite surge for generative AI
Venture capital investment declined sharply in the second quarter of 2023, the sixth consecutive pullback for the sector. Globally, US$77.4 billion was invested across 7,783 deals, down from $86.2 billion and 10,121 deals in the previous quarter according to new stats from KPMG Private Enterprise’s Venture Pulse Report. It was the lowest level of quarterly investment since the second quarter of 2020. The usual suspects are subduing sentiment – interest rates, inflation, war in Ukraine and other geopolitical tensions, banking system concerns – although there are some industries that are gaining interest such as generative artificial intelligence. AI investment saw robust investment in Q2, 2023, including a $430 million investment from Google and a $1.3 billion deal from a Microsoft-backed firm. AI’s surge in VC investment is in part because of the multiplier effect that AI offerings could have in driving widespread disruption across industries. Energy and cleantech are also in demand.