VNTR Capital News May 12, 2024 – News, Events, VC Reads
Venture Capital, Web3, and Private Equity – News, Events, and VC Reads
Hello friends,
Happy Sunday!
VNTR Capital Newsletter is delivered to 90k+ 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 LP Roundtable: Limited Partners and Family Offices are invited to the online VNTR LP Roundtable on May 15. You'll learn the fundamental math and other secrets of investing in startups, how to avoid common pitfalls and new ways to think about investing in the right venture funds. You will also learn about the next wave of venture capital opportunities - artificial intelligence companies solving real-world problems. Reach out to Julie to join as LP.
VNTR Club: We are growing the Club membership and accepting a limited number of new VNTR Club members in May to provide excellent onboarding and membership service delivery. Book your onboarding call:
VNTR PRO Club Membership is for private investors, business angels, emerging GPs, and family offices.
VNTR GP Club Membership is for seasoned GPs with a proven track record
VNTR LP Club Membership is for active Limited Partners interested in deploying capital in top-performing VC Funds.
VNTR Corporate Club Membership is for corporate VCs or companies offering services/products to investors, affluent clientele, or portfolio companies.
VNTR Chapters: The VNTR Community welcomes Sam Kamani as the New Zealand VNTR Chapter Director! With a presence in 20+ countries, we are expanding globally, launching new chapters in New Zealand, Austria, Austin Texas, Switzerland, Madrid, Belgium, and Monaco. By joining forces with local Chapter Directors and Venture Partners, we are growing their networks and providing a safe space for investors to collaborate and co-invest. Join us to launch a chapter in your city/region. Please reach out to Olya to learn more.
VNTR Academy: This week, we hosted a VNTR Expert session with Frederico Kessler, Partner at FunFair Venutres, on Investing in the future of Gaming with Blockchain. The recording and presentation are available at VNTR Academy. Join us on May 14 for the VNTR Expert session with Gillian Muessig, Managing Director of Mastersfund: Moneyball - The Evolution of Venture Capital.
VNTR Deals: We created a safe place to share deals on the VNTR platform for VNTR Club members. Members can bring deals for direct co-investment or run a syndicate with VNTR. VNTR Syndicates enable investors to invest in growth-stage companies and top VC funds using small checks starting from $10k. Reach out to Gaurav to join the VNTR Syndicate and co-invest with the VNTR community.
Coming 2 weeks:
Hong Kong: May 15 VNTR Investors Dinner in Hong Kong, hosting visiting VNTR Club member Jana Rubin, Founder at JMR Capital.
Doha: May 15 VNTR Investors Roundtable in Doha during Qatar Economic Forum. Thank you, Workinton Doha, for hosting.
Singapore: May 16 VNTR Investors Roundtable in Singapore during Echelon (VNTR community gets complimentary Starter passes). Thank you, Vision Financial, for hosting.
Cyprus: May 16 VNTR investors Workshop Limassol, hosting VNTR GP Club Member Igor Ryabinkiy, Managing Partner at AltaIR Capital.
Bengaluru: May 16 VNTR Investors Roundtable Bengaluru, chapter meeting hosted at Draper Startup House.
Jakarta: May 17 VNTR Investors Roundtable in Jakarta co-hosted with ICP Indonesia Hub. Thank you, GoWork, for hosting.
Cascais: May 22 VNTR Investors Padel and Networking. This is an exclusive opportunity to meet like-minded Investors during an enjoyable morning event.
Paris: May 23 VNTR Investors Roundtable during Viva Technology. Get a 30% discount on event passes for regular Startup, Attendee, and Investors VivaTech passes.
Tallinn: May 23 VNTR Investors Roundtable during Latitude59 co-hosted with Perfect. Thank you, Admiral Markets, for hosting.
Cannes: May 23 Dunhill Nightcap Cannes - Co-hosted by Dunhill Family Office and Sentience. (Partner event)
Barcelona: May 24 VNTR Investors Breakfast will gather Barcelona chapter members.
Auckland: May 24 VNTR Investors Roundtable during Techweek. Thank you, Gembot, for hosting.
Monaco: May 25 Sunset SuperYacht Soiree trackside at F1 Monaco Grand Prix exclusive event aboard the Silver Dream yacht (use VNTR discount to book last bracelets)
Thank you to our Partners:
Disruptives ICP.Hub is the go-to place in Indonesia for anything related to Web3, leveraging the potential of the Internet Computer to shape a vibrant, progressive blockchain ecosystem. Disruptives serve as the central node for the Internet Computer Protocol in the region, fueling sustainable innovation and nurturing progressive ideas.
Vision Financial is a team of experienced Financial Services Consultants whose vision of the future is to be an organization of trusted, competent professionals who serve clients in risk management and long-term Investment Planning with a proven Roadmap to achieve their Goals and Aspirations.
GoWork is Indonesia's premier provider of premium, flexible workspaces. It offers an unparalleled environment designed to nurture productivity and collaboration.
Gembot is the premium wealth management experience in New Zealand, where investing is made accessible to all without management fees. The platform aims to democratize investing, empower individuals to make informed decisions, and elevate game strategies.
Upcoming VNTR Events:
May 30 VNTR Investors Roundtable Paris (CC Forum)
June 4 VNTR Investors Roundtable Vienna (ViennaUp)
June 5 VNTR Investors Roundtable Amsterdam (Money20/20 Europe)
June 7 VNTR Investors Roundtable Madrid (South Summit Madrid)
June 18 VNTR Investors Roundtable Toronto (Collision)
June 27 VNTR Investors Roundtable Clug (Techsylvania)
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
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 Crypto Expo, Dubai, UAE
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 3-9 ViennaUp, Vienna, Austria
June 4-6 Hamptons Tech Week, USA
June 5-6 Blockchain Expo, Santa Clara, USA
June 5-7 South Summit, Madrid, Spain
June 5-11 Swiss 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
June 26-28 Mobile World Congress, Shanghai, China
July 25-27 Bitcoin2024, Nashville, USA
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
Global VC Funding Isn’t Slowing, But It’s Not Growing Either, April Numbers Show
Global venture capital funding reached just over $22 billion in April 2024 — flat month over month and up a few percentage points year over year — Crunchbase data shows. The slowdown in venture funding has continued despite the AI technology wave that has washed over startups in the past few years. Of the $22 billion invested in startups globally last month, around $2.4 billion, or 11%, went to about 1,000 seed-stage companies. Around 500 early-stage companies raised $9 billion globally in April. And more than 150 companies from Series C onward raised $10.7 billion, representing about 49% of funding last month, Crunchbase data shows. Those amounts are in line with funding at those stages in April 2023.
State of Private Markets: Q1 2024
The startup fundraising market got off to a cautious start in 2024.
At current count, companies on Carta closed 1,064 new funding rounds during the first quarter of the year, down 29% compared with the prior quarter. The decline was sharpest at the early stages of the venture lifecycle: Deal count fell by 33% at the seed stage in Q1 and 36% at Series A.
Instead of new primary funding events, many companies opted to raise bridge rounds. At both seed and Series A, more than 40% of all financings in Q1 were bridge rounds. Series B wasn’t far behind, at 38%.
VCs were still willing to spend big on certain deals. Despite the decrease in round count, total cash invested increased slightly in Q1, reaching $16.3 billion. But when it came to negotiating their valuations, many startups had to settle: 23% of all new rounds in Q1 were down rounds, the highest rate in more than five years.
After experiencing a pandemic-era surge and subsequent correction,the venture market settled into a quieter place in 2023. So far, that relative tranquility has continued into 2024.
The Week’s 10 Biggest Funding Rounds: Wiz Lands A Billion
The week was slower than last as far as startups raising huge mega rounds. Then again it had to be after 13 companies raised more than $100 million last week. Nevertheless, there were still some big raises, including a $1 billion round.
Recovery mode: Mapping Africa’s VC ecosystem
Africa’s venture capital ecosystem has seen deals in decline over the past two years. However, Q1 2024 recorded a modest increase in deal value. The continent weathered a significant drop in dealmaking in 2023 as global economic headwinds and geopolitical uncertainties cooled investor appetite for African startups. A total of $2.1 billion was invested, according to PitchBook data, returning to pre-pandemic levels. While capital raised by African startups in the first three months of the year, $360 million, is below historical standards, it comes in higher than the last two quarters of 2023.
Family offices are looking beyond the stock market for higher returns, new report finds
Large family offices have nearly half their investments in private markets and alternatives, as they move out of the stock market in search of higher returns and lower volatility, according to a new study.
Family offices have 46% of their total portfolio in alternative investments, which includes private equity, real estate, venture capital, hedge funds and private credit, according to the J.P. Morgan Private Bank Global Family Office Report, released Monday. The family offices covered by the survey had 26% of their assets invested in publicly traded stocks.
The study surveyed 190 single family offices around the world, with an average of $1.4 billion in assets.
In Sectors From Diagnostics To Spacetech, More Struggling SPACs Are Going Private
Going public sometimes works out badly. This has been particularly true for companies that took the SPAC route to public markets around the peak of the last boom. Dozens of companies once valued in the billions have seen their valuations wither and their share prices nosedive to penny-stock territory. In response, a growing number are choosing to exit public markets and try their luck once again as private companies. A couple weeks ago, genetic testing provider 23andMe became the latest candidate to try out this route. The company announced that its CEO and founder, Anne Wojcicki, is considering acquiring all the outstanding shares she does not currently own. Her proposal follows more than three years of mostly disastrous performance on Nasdaq, with shares recently valued around 50 cents each.
Which are the most ‘data-driven’ VCs in Europe?
Some investors like to be ‘founder friendly’. Others like to host the best parties. And an increasing number like to say that they’re ‘data driven’ — especially in the age of ChatGPT. Converts will say VC firms that make smart use of data are more efficient, see more deals, screen startups more effectively and make better and less biased investment decisions. Critics will say it’s just another marketing buzzword. Regardless of your stance, the movement is shaping how investors find and do deals. A new report published today from Data-Driven VC surveyed 300+ investors globally and found that 35% said their data tools are responsible for sourcing at least half of their deals.
Former Unicorns Are Bouncing Back From Bankruptcy
For ordinary shareholders, bankruptcy almost always means a total loss. But for the companies that file for bankruptcy reorganization, it’s quite possible to emerge from the process with a bright future ahead. Numerous prominent brands — including General Motors, American Airlines and Six Flags — went through bankruptcy. Today, they’re multibillion-dollar companies. Now it looks like some famous failed unicorns are looking to do the same. Over the past few quarters, at least five have reemerged from the bankruptcy reorganization process, or are close to doing so.
Newchip, Techstars and what happens when startup accelerators fail
Building a startup is hard. Building a company that helps startups is similarly difficult. That’s the takeaway from TechCrunch reporting on Techstars and Newchip. In the case of Newchip, the accelerator appeared to promise a bit more than it could deliver. Mix in a culture that appeared to be turbulent at best, and you have a situation in which an accelerator is in bankruptcy and startups are closing over the potential sale of share warrants. It’s a mess. Techstars is different. It’s been retooling its operations over the past few years. That has led to turnover, and the shuttering of some of its programs. But unlike Newchip, Techstars is solvent, investing and still helping startups do more, more quickly.
VCs and LPs should stop kidding themselves about ‘dual use’ defence tech
Many VCs are telling me how exciting defence tech is these days, and how they’re increasingly looking to invest in companies making technology or services to protect national interests. But if you dig a bit deeper, most of them will add that they aren’t willing to fund companies developing things that could be used offensively — i.e. to attack enemies. Instead, most say they’re investing only in ‘dual-use’ technology — that has both military and commercial applications. But in my view, this ‘dual use’ label is a bit of a cop-out. Almost all of these dual-use technologies could be used to cause harm to people. VCs and their investors, LPs, should stop kidding themselves that they’re able to invest in this area without tackling the moral implications of funding technology used as a weapon.
Pandemic-era winners suffer $1.5tn fall in market value
Fifty corporate winners from the coronavirus pandemic have lost roughly $1.5tn in market value since the end of 2020, as investors turn their backs on many of the stocks that rocketed during early lockdowns.
According to data from S&P Global, technology groups dominate the list of the 50 companies with a market value of more than $10bn that made the biggest percentage gains in 2020.
But these early-pandemic winners have collectively shed more than a third of their total market value, the equivalent of $1.5tn, since the end of 2020, Financial Times calculations based on Bloomberg data found.
Video-conferencing company Zoom, whose shares soared as much as 765 per cent in 2020 as businesses switched to remote working, has been one of the biggest losers. Its stock has fallen about 80 per cent, equivalent to more than a $77bn drop in market value, since the end of that year.
AI And Crypto Funding Up In Q1 Even As VC Funding Plunges
In the times of gloom for venture capital funding, it is the AI and Crypto sectors that have kept the market afloat and investors hopeful with their positive performances. As per latest forecast report by Gartner, Global IT spending is speculated to hit $5 Trillion by the end of 2024. The new expected figure is a straight 8% increase from the previous quarter. Likewise, the first quarter of 2024 has shown a favorable trend for the global economy on macroeconomic terms. As per data provided by the Organisation for Economic Cooperation and Development (OECD), the global economy has shown a slight improvement compared to previous years, with a projected global GDP growth of 3.1%.
Venture fundraising may not recover until end of the decade
Venture capital firms enjoyed a windfall in 2021 and 2022, with assets under management swelling 58% from $2.4 trillion to $3.8 trillion. But one of the principal drivers of that growth, fundraising, isn’t projected to recover to recent highs until well after 2028, according to a recent PitchBook analyst note. VC firms are forecast to raise less than $200 billion in 2024, a 48% decline from 2021 levels. Fundraising is only expected to grow 2.9% annually through 2028, less than half the rate of other private capital strategies including private equity, private debt and real assets funds.
The Fastest Growing Category of Venture Investment in 2024
The fastest growing category of US venture investment in 2024 is AI. Venture capitalists have invested $18.3 billion through the first four months of the year.
At this pace, we should expect AI startups to raise about $55b in 2024.
Market Map: Ecommerce plots a comeback with ‘prepurchase’ startups
Ecommerce is adjusting to a new normal. After the pandemic pushed more consumer habits online, the vertical has cooled down immensely. Hoping to revitalize growth in the space, investors are turning toward startups working in the prepurchase segment, companies creating technologies that connect consumers to new offerings. Many are using generative AI, hoping to create personalized experiences that capture consumers’ attention—and capital. The market map below highlights the prepurchase segment. Explore the industry segment by clicking on the blue title.
VC Funding May Be Down, But Here’s How Impact-Focused Startups Can Score Big
As global startup funding experiences a downturn, with Q1 2024 marking one of the lowest points since 2018, the landscape for entrepreneurs seeking investment has become increasingly challenging. In these uncertain times, investors are placing greater emphasis on startups that offer tangible solutions to pressing societal and environmental issues. As a result, sustainable startups in this climate have a unique opportunity to shine by aligning their missions with the growing demand for impactful investments.
3 Tips To Help You Defy The Odds As An Entrepreneur
Every day, I’m joined by CEOs and entrepreneurs sharing the ups and downs of business building. The biggest question on all of their minds: What do I need to do for my business not just to survive, but thrive? Many founders need help, as 50% of startups do not reach the five-year milestone. A recent post by Bessemer Venture Partners noted that, while all companies will have an initial spark, not all of them can sustain the flame to build ongoing success. Entrepreneurs who can maintain the flame demonstrate the “resilience, perseverance, innovation, and ownership mindset necessary for long-term success.”
The FCC’s Net Neutrality Ruling Is Good News for Web3 Startups
Last month’s FCC vote to restore net neutrality rules is a welcome example of forward-looking, innovation-friendly regulation. Rules aimed at ensuring an open internet are a model for the kind of regulation that champions innovation in the digital era and exemplifies core American values. Other regulators would do well to take note. Opponents of net neutrality like to argue that rules guaranteeing equal access aren’t necessary (go back and watch John Oliver’s reports for an excellent refresher). They claim the old rules were perfectly suited for oversight of the modern internet, even though those rules were written for old-school telephone service.
Chinese venture capitalists warn IPO freeze will hit innovation
Chinese venture capitalists have warned the country's IPO freeze is starving tech startups of funds by keeping market participants locked into existing investments, undermining Beijing's current push to lift innovation in the economy.
Venture capital firms said at the three-day ChinaVenture Investment Conference in Shanghai that they were struggling to recoup investment through the traditional route of initial public offerings.
Florida Startup Funding Has Stopped Shrinking
Florida, and Miami in particular, generated a lot of hype a few years ago as a hot and low-tax hub for startup founders and investors. At the peak in 2022, nearly $9 billion flowed to Sunshine State startups. But the buzz died down shortly after. Last year, Florida companies pulled in less than $2.6 billion in venture funding, with investment contracting much more sharply than the national average, Crunchbase data shows. More recently, it looks like funding has stabilized some. So far this year, Florida startups have closed on just over $950 million, per Crunchbase data. That includes big rounds to companies with focus areas ranging from AI chatbots to endpoint security to remote patient monitoring.
Fertility startups to watch, according to investors
One in six people globally are affected by infertility, underscoring the need to create accessible, affordable and high quality fertility solutions. Many startups in Europe are entering the fray to do just that — and investors are increasingly noticing them. Last week, Ovom raised €4.3m for its AI-powered fertility treatment. In March this year, Elixir Health raised €2m for its care platform for fertility treatment — and in December last year, Freya Biosciences, which develops microbial immunotherapies to relieve chronic inflammation in women, raised a $38m Series A.
The world’s top startup cities
PitchBook’s VC Ecosystem Rankings compare global cities based on the size and maturity of their startup networks. The framework helps founders, operators and investors assess locations when deciding where to expand or invest.
Network effects matter in venture capital: Investors get more than half of their deals through referrals, according to research led by Harvard professor Paul Gompers. So it stands to reason that dealmakers should seek these networks out when deciding where to do business.
The list is based on a scoring system that uses PitchBook’s proprietary data on private companies. Development and growth scores are based on data related to deals, exits fundraising and other factors from the last six years.
Are we in the eye of a golden vintage year?
Institutional investors have heard it time and time again from fund managers: The best vintages can arise from periods of market dislocation. It’s a concept rooted in some historical evidence of higher-than-normal private equity fund multiples for vintages in the years during or following economy-altering events. But is it applicable to the current market?
Deal-Making Involving VC-Backed Startups Picks Up Slightly, But Still Slow
Many in the venture capital and M&A worlds have predicted this year could see a return to more robust deal-making after a slow 2023. There is good reason for some of that optimism — as valuations of venture-backed startups have slowly come down, the IPO market has reopened slightly, and strategic and private equity buyers are loaded with cash. However, the first quarter saw only a slight uptick with 413 deals being completed through March, Crunchbase data shows. That is a 20% increase from Q4 2023 — which saw only 344 deals consummated — but that quarter was also the slowest in years when it came to VC-backed companies being bought.
Crypto Is an Election Issue This Year. Is That a Good Thing?
An online survey conducted by blockchain conglomerate Digital Currency Group found that more than 20% of voters in several swing states consider crypto to be a key issue in the upcoming U.S. elections. The poll is the latest sign that crypto is increasingly becoming an electoral issue, with more and more politicians on both sides of the issue willing to condone or condemn crypto.