VNTR Capital News May 5, 2024 – News, Events, VC Reads
Venture Capital, Web3, and Private Equity – May 5 News, Events, and VC Reads
Hello friends,
Happy Sunday!
VNTR Capital Newsletter is delivered to 80k+ investors weekly to share the latest news, events, and articles from the global VC and startup ecosystem.
Scroll down for VNTR Capital Community News, Upcoming Events, and VC News/Reads.
VNTR CAPITAL COMMUNITY NEWS
Spotlight
VNTR Syndicate: We welcome Natalia Kolupaeva as Investment Director and Gaurav Sharma as Head of Syndicate Membership. We are developing the VNTR Syndicate and co-investment VNTR platform to provide a safe place to share deal flow and access to growth-stage tech companies and top VC funds where private investors can invest with small checks starting from $10k. Reach out to Gaurav to join the VNTR Syndicate and co-invest with the VNTR community.
VNTR Podcast: We are happy to announce that our VNTR Podcast is finally in production! Get ready to engage with industry experts, thought leaders, and allocators. Each episode will contain valuable insights and stories that will keep you counting the days until the next release. Join us in exploring the fascinating world of Venture Capital and capital allocation. Thanks to Carl Szantyr, Founder at Blockstone Capital, the first guest speaker on the podcast, and Niko Leon, for all his valuable help. We will release the first episode next week. Upcoming show guests: Tim Draper, Founding Partner at Draper Associates, and Lou Kerner, Founder at CryptoOracle Collective.
VNTR Chapters: The VNTR Community welcomes Christian Pinneau as the new France VNTR Chapter Director! With a presence in 20+ countries, we are expanding globally, launching new chapters in New Zealand, Austria, 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 GP Club Membership: Introducing new GP Member: Loyal is a global semi-liquid venture fund designed to offer above-average returns while preserving capital through diversification and a unique gate-stage investing process that reduces bias. Partnered with INSEAD, Founder Institute, 900+ advisors, and 200+ investors, we are Loyal to the world with 300+ investments in 60+ countries. We will accept 3 new VNTR GP members in May. Reach out to Julie if you would like to join or connect with Loyal.
VNTR Corporate Club Membership: We will accept only two new Corporate Members in May. VNTR Corporate Membership is designed to meet your company's unique needs. Corporate development teams and CVCs can join for innovation sourcing, accessing global deal flow, building co-investors community or offering services/products to investors and their portfolio companies. Each member enjoys a personalized approach to maximizing results and leveraging our extensive global community of investors. Please reach out to Lukas to customize your membership.
Coming 2 weeks:
Dubai: May 7 VNTR Investors Roundtable in Dubai during the Dubai FinTech Summit (investors can get complimentary passes or use VNTR10 for 10% discount). Thank you, In5 Tech for hosting.
Hong Kong: May 14 VNTR Investors Dinner in Hong Kong, hosting Jana Rubin VNTR Club Member, 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 will gather Singapore Chapter investors to meet during Echelon. Thank you, Vision Financial, for hosting.
Cyprus: May 16 VNTR investors Workshop Limassol, hosting Igor Ryabinkiy, VNTR GP Member, 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.
Thank you to our Partners:
E-PR is a New York-based digital PR agency revolutionizing the industry with its innovative approach tailored for SMBs. E-PR Online offers effective, transparent, and affordable PR solutions by combining smart media strategies with a vast catalog of 17,000+ outlets across 137 countries and leveraging AI for streamlined media selection. Whether you are aiming to launch a new product, announce a milestone, or enhance brand visibility, E-PR Online provides the expertise and resources to amplify your message globally. Contact Irina Proskurina to get started and use VNTR to get a discount.
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 serves as the central node for the Internet Computer Protocol in the region, fueling sustainable innovation and nurturing progressive ideas. Its focus is on empowering the ambitious — entrepreneurs, developers, and blockchain enthusiasts — by providing top-tier incubation programs, essential tools, and resources to transform visionary ideas into reality. Contact Bruno Calabretta to learn more.
In5 is home to hundreds of techpreneur startups. Our tech innovation center is strategically located in the heart of Dubai Internet City and enjoys access to other media and educational hubs. Our startups have raised funding of AED 3 billion since 2013.
The in5 tech startups get access to dedicated facilities including smart labs, private offices, coworking spaces, workshops and top investors. in5 also provides sponsored opportunities for tech startups to showcase themselves alongside international brands at tech events such as GITEX. Contact Mo Rajab to learn more.
Upcoming VNTR Events:
May 23 VNTR Investors Roundtable Paris (Viva Technology Paris, 30% discount)
May 24 VNTR Investors Roundtable Auckland (New Zealand Techweek)
May 30 VNTR Investors Roundtable Paris (CC Forum)
June 4 VNTR Investors Roundtable Vienna (ViennaUp)
June 7 VNTR Investors Roundtable Madrid (South Summit Madrid)
More events available on the VNTR Platform
Reach out to Lukas to sponsor VNTR events or join VNTR Corporate Membership.
Follow us on Social media: Instagram, LinkedIn, Facebook, Flickr, and Twitter.
UPCOMING VC EVENTS
May 6-7 Dubai FinTech Summit, Dubai, UAE (10% Discount using VNTR10 or investors with IDFS24VNTR registration code)
May 7-9 FinTech Americas, Miami, USA
May 9-10 Bitcoin Asia, Hong Kong
May 9-10 EU Startups Summit, Malta
May 13-15 Podim 2024, Maribor, Slovenia
May 15-16 Next Block Expo
May 15-16 Echelon by E27, Singapore
May 15-16 SusHi Tech Tokyo, Japan
May 15-16 Conf3rence, Dortmund, Germany
May 20-21 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 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
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
The Week’s 10 Biggest Funding Rounds: CoreWeave’s $1.1B Raise Leads Huge Week
What a week it’s been if you were a startup looking to raise big. This week, more than a dozen nine-figure rounds were raised by U.S.-based startups — more than any week this year and perhaps last year.
While a big AI round led the way, there were huge raises in energy, quantum computing, neuroscience and other sectors too. Big rounds have seen a pickup this year, and this week is the best example yet. You needed to raise $125 million-plus to make this list.
Secondary deals grow as share of PE exits
Secondary buyouts are having a rebound in their share of private equity exits as managers seek certainty and speed in the sales of their portfolio companies. LPs are demanding that managers be decisive about exiting companies, said Tim Toska, global head of PE at fund administrator Alter Domus, and secondary buyouts can provide liquidity in an efficient manner. PitchBook data shows 30.5% of PE exits in Q1 involved sales to other financial sponsors. This compares to 25.2% in the same period last year. The increase of secondary buyouts as a share of PE exits increased even as both the total value and volume of these deals fell overall.
The legal clause more VCs are adding when funding startups
In the last year or so, venture capital investors have had to get increasingly creative to make money for their investors as startup exits have been few and far between.
The need for liquidity has led VCs to consider secondary sales (selling shares in portfolio companies to other VCs) and look at fund structures like continuation funds — which let VCs hold onto shares of companies after their traditional fund cycle of typically 10 plus two years draws to an end, while enabling their investors, LPs, to get some money back.
Recently, some VCs have also started tweaking funding round documents to give them more flexibility to sell startup stakes in the future.
Insight Partners’ Hinkle: M&A Is The Key To Unlocking Startup Liquidity This Year
The venture capital ecosystem faces a severe liquidity crunch. But although the IPO market shows new signs of life, startup investors should be looking to M&A this year to bring more capital back into the system.
That’s the view from Ryan Hinkle, managing director at New York-based startup investor Insight Partners, one of the most active investment firms in the bull run in private tech companies in 2021 and into the first half of 2022, when the firm announced its $20 billion fund, its largest to date.
VCs Are ‘Knowledge Gatekeeping,’ And It’s Holding Back Diversity
"Despite repeated commitments to “do better,” venture capital continues to be dogged by poor diversity and inclusion: Black investors make up an estimated 4% of venture capitalists in the U.S., and in Europe, women only represent 15% of general partners.
Studies show that people hire and back those who remind them of themselves. This “affinity bias” creates a vicious cycle. With a stark lack of diversity among VCs, is it any surprise that all-male, all-white teams remain vastly more likely to attract funding? To add insult to injury, VCs are unwittingly fueling this status quo through “knowledge gatekeeping” — holding information and power close to their chests. "
Venture Capital pours $2.4B into crypto startups in early 2024
After three consecutive quarters of decline, crypto and blockchain startups have witnessed a significant uptick in venture capital investment.
According to data compiled by Galaxy Research, investors injected $2.49 billion across 603 deals in the first quarter of 2024, representing a 29% increase in funding and a 68% rise in deal count from the previous quarter.
44% of startups score their investors a “1 out of 5” on helpfulness
The economic downturn might be easing up — but founder-investor relations haven’t taken a turn for the better yet. According to a new Sifted survey conducted this month, 71% of startup founders feel like their relationships with their investors have gotten worse, not better. Nearly 44% of respondents said that their relationship with their VCs has gotten worse in the last 12 months, while 27% said it had gotten much worse, according to the survey of 96 founders and senior startup leaders of mostly early-stage companies.
SVB agrees to sell venture capital arm for $340 million
The fire sale of Silicon Valley Bank is nearly complete, a scant 14 months after the lender's spectacular collapse.
Why it matters: This concerns the fate of SVB's venture capital business, called SVB Capital, which still manages around $9.8 billion in assets for limited partners.
SVB Capital wasn't included in the sale of SVB's lending and wealth management units to North Carolina-based bank First Citizens, nor last fall's sale of SVB's securities unit to management.
LPs warm back up to crypto as bitcoin rallies
After a long winter for cryptocurrency, GPs are returning to the LP fundraising market, buoyed by a bitcoin rally and the SEC’s approval of bitcoin exchange-traded funds. Two of the most well-capitalized crypto-focused firms have launched new efforts. Pantera Capital is targeting $1.25 billion for a fund that will invest in early-stage tokens, liquid tokens and startup equity, according to a document on its website. FTX investor Paradigm is in discussions to raise between $750 million and $850 million for its next vehicle, Bloomberg reported.
A new venture capital supergroup is forming
Startups are not shying away from big projects. That’s my takeaway from news that The Browser Company’s Arc browser is now generally available for Windows users, just as Island raised a massive grip of capital for its enterprise-focused browser tool. It’s very encouraging to see startups going after core pieces of technology and not just the apps that sit atop platforms. Of course, Chromium still reigns supreme, but unseating that horse might take a while.
BlackRock Sees Sovereign Wealth Funds, Pensions Coming to Bitcoin ETFs
Don't be fooled by the first break in inflows into spot bitcoin exchange-traded funds (ETFs) after 71 straight days. The current lull is likely to be followed by a new wave from a different type of investor, said Robert Mitchnick, head of digital assets for BlackRock, the world's largest asset-management company. The coming months could see financial institutions such as sovereign wealth funds, pension funds and endowments start to trade in the spot ETFs, Mitchnick said in an interview. The firm is seeing “a re-initiation of the discussion around bitcoin,” which turns on the topic of allocating to bitcoin (BTC) and how to think about it from a portfolio construction perspective.
How America plunders Britain’s tech economy
The UK government tells a confident story about Britain’s tech business acumen. In one 2023 example, a press release from Rishi Sunak invited investment in the tech sector, calling the UK an ‘island of innovation’. In it, he explained that the UK corporation tax rate was the lowest in the G7 and that the UK capital allowance for investors was ‘one of the most generous’ in the OECD. Even better, the UK Treasury offered ‘full-expensing for qualifying business investments in more plant and machinery for three years – a tax cut worth £27 billion’. This is generous, and notably so when in 2023 the UK spent more than £100 billion servicing the interest on state debts. And, viewed in a certain light, the generosity has got results. The PM also claimed that the UK has created 134 ‘tech unicorns’ – companies with a valuation of more than $1 billion.
The Evolving Role Of Corporate Venture Capital In Innovation And Disruption
Corporate Venture Capital (CVC) refers to any corporation actively investing in the startup ecosystem, whether through formal structures or informal arrangements. This trend has seen significant growth not only in India but also globally, with India hosting more than 150 CVCs, including some unicorn startups.
CVCs are gaining popularity as established companies now acknowledge the innovation and disruption that new-age startups can bring, potentially disrupting their industries. Ultimately, their goal is to stay ahead of competitors in the market.
The path to 2025 tax reform begins
Regardless of the outcome of the 2024 elections, tax policy will be a key area of focus as we approach 2025, when many provisions of the Tax Cuts and Jobs Act (TCJA) are set to expire. But the provisions that make their way into the final tax package will be greatly influenced by the political party in charge.
The TCJA, which was passed in 2017, marked the last significant tax reform package to make its way through Congress. To prepare for the upcoming tax policy debate, House Ways and Means Committee Chair Jason Smith established ten “tax teams” composed of committee Republicans to study expiring TCJA provisions, and Senate Finance Committee ranking member Mike Crapo has announced his intention to replicate the House’s initiative. These working groups will begin to research and scope policy proposals to inform the path forward, and committee Democrats will likely support many of the provisions in President Biden’s fiscal year 2025 budget proposal. It will be important that the innovation ecosystem engages earlier and throughout on our key priorities.
Eye On AI: After Q4 Slowdown, AI-Related M&A Picked Back Up In Q1
Nvidia made more AI waves last week when it acquired not one, but two startups in the industry. The chip giant, which has made dozens of investment deals in the AI space, announced it had bought Run:ai for a reported $700 million. It was also reported that it bought Deci AI. The startups help companies develop AI models more cheaply. There’s been plenty of analysis of those deals, but they get us thinking about what the AI market has seen M&A-wise since ChatGPT exploded on the scene a year ago. While everyone normally looks at the funding numbers (which we recently did), how about the numbers where VCs and other investors actually make money?
Bitcoin (BTC) is a decentralized digital currency that stores its records among a distributed set of nodes that collectively represent a public ledger, also known as a blockchain. On the Bitcoin blockchain, private wallet users have a public address while holding a private key that enables them to control assets held within that address. There can only be 21 million BTC in circulation; this is designed and coded within the protocol. Bitcoin’s design is deflationary, where, over a period of time, the scarcity of the asset increases. Bitcoin’s value is partly maintained by a maximum limit on the total amount of Bitcoin that can exist and by periodically decreasing the rewards (via Bitcoin halving) given to miners for bringing new Bitcoin into circulation.
Startup Building: Challenges & Opportunities
In this one-on-one conversation, Ben and Marc discuss how startups can think differently about organizational design and talent deployment, unpack the lore around layoffs, and even tackle the future of customer service. They also reveal some unexpected benefits of nicotine and Ozempic
How the Middle East’s AI ambitions are spurring VC investment
As the global race for AI dominance intensifies, Middle Eastern nations are putting more capital into developing the technology, and startups are reaping the rewards. The region saw a record number of VC deals for generative AI startups in 2023, according to PitchBook data, with 39 rounds closing for a combined $415.1 million. Although funding levels dipped in the first three months of 2024, dealmaking has remained resilient, with deal value registering above historical norms.
Crypto for Advisors: Digital Asset Custody’s Future
Custody of digital assets is evolving, whether it be the technology itself, the plethora of new tokenized investment products, or the risks of leaving assets with service providers like centralized exchanges, whether real or perceived. Colton Dillion, CEO of Hedgehog Technologies, breaks down the evolutions in digital asset custody, focusing on the shift of wealth to self-custody in the space and how advisors must support this shift.
What 20 Years Of Angel Investing Taught Us About Driving Progress For Women Entrepreneurs
Twenty years ago, the landscape of angel investing bore scant traces of female presence, with women representing a mere 5% of all angel investors and 3% of funded companies. Fast-forward to 2022, and the scenario has transformed dramatically, with women now accounting for 40% of angel investors and 31% of angel-funded companies. This shift is not just a numeric increase; it’s a seismic evolution reflecting broader changes in society and the business world.
Building Thought Leadership: A CEO’s Roadmap To Industry Influence
One of the most effective ways to generate brand awareness is for an organization’s executive team, particularly the CEO or founder, to establish a thought leadership profile. A thought leader is someone who has established a profile for offering industry insight, unique perspectives and advice. Thought leaders cement expertise in the public domain, which positively reflects on the individual and the brand they represent. Building a thought leadership profile can prove beneficial for fueling business objectives, regardless of organization size.
AI Funding Stays Strong Despite Few Billion-Dollar Rounds
The slowdown some predicted for AI funding did not play out in the first quarter. Venture funding to AI-related startups actually increased in Q1 2024 compared to Q4 2023, Crunchbase data shows. The first quarter saw $12.2 billion invested in venture-backed AI startups in 1,166 deals. The dollar number represents a modest 4% uptick from last year’s final quarter, which saw $11.7 billion go to similar startups in 1,072 deals.
The Changing Face of Risk in DeFi
Decentralized finance (DeFi) is experiencing renewed momentum. The activity in new ecosystems, and the high yields, resemble the famous 2021 DeFi Summer. The variety of innovative protocols makes it incredibly hard for investors to keep up, while at the same time, the impressive growth raises concerns about risks accumulating in the DeFi ecosystem. You might have heard the doomsday analyses comparing the most successful protocols of this wave, like Ethena or Eigen Layer LRTs, with risk management disasters like Terra, without really providing any credible evidence of the parallels.
The rise of the Chinese AI unicorns doing battle with OpenAI
Four Chinese startups focusing on generative artificial intelligence (AI) have each surpassed $1 billion in valuation as the race to compete with rivals like OpenAI heats up. The new unicorn companies reportedly include Zhipu AI, Moonshot AI, MiniMax and 01.ai. These companies have received support from local investors and are now looking to onboard talent to develop AI products. OpenAI remains in the lead in terms of valuation and tech development. On Feb. 17, the San Francisco-based AI firm inked a deal that increased its valuation to over $80 billion.
NFTs merge art with technology to preserve cultural treasures
In an era where cultural heritage faces threats from conflict, neglect and the ravages of time, integrating technology with art preservation is becoming increasingly vital. Innovative events that merge art with digital technology play a crucial role in safeguarding and revitalizing these cultural assets. These initiatives are pivotal in ensuring that the rich tapestries of our cultural past are preserved, explored and appreciated in contemporary society. By embracing methods such as digitization and the creation of nonfungible tokens (NFTs), such gatherings enhance accessibility and engagement of art for a global audience and protect art from physical degradation and loss.