VNTR Newsletter Nov 3, 2024 – Venture Capital News, Events, VC Reads
Venture Capital, Web3, and Private Equity – News, Events, and VC Reads
Hello friends,
Happy Sunday!
VNTR Newsletter is delivered to 100k+ investors and subscribers weekly to share the latest news, events, and articles from the global VC and startup ecosystem.
Scroll down to discover VNTR Community News, Upcoming Events, and the latest VC News and Reads.
VNTR COMMUNITY NEWS
Spotlight
VNTR Summit Title Sponsor Announcement: Hivello has joined us as a Title sponsor at the VNTR Summit, where Domenic Carosa, Founder at Hivello, will deliver a keynote on the transformative potential of Decentralized Physical Infrastructure Networks (DePINs). Hivello simplifies access to DePIN projects by aggregating them into an intuitive platform. With just a few clicks on the Hivello app, users can effortlessly participate in multiple DePIN networks, overcoming the typical technical barriers. This seamless process empowers users to generate passive income by leveraging their idle computers. For partnership opportunities and to learn more, you can contact Domenic Carosa directly.
VNTR Global Investor Summit on Nov 13 in Lisbon: In just 10 days, we will host the VNTR Global Investor Summit in Lisbon, bringing together over 200 investors and featuring 30+ speakers. Get your complimentary Investor General Pass on VNTR or purchase a VIP Investor Pass, Including the VNTR Club Retreat in Sintra, VIP lounge access, LP and CVC roundtables, and VIP-level matchmaking and introduction services. Book your travel and lifestyle experiences in Lisbon using Perfect (active using VNTR code).
Sponsor VNTR Summit: The last sponsorship spots are available for companies seeking to engage with investors, portfolio companies, and premium clients. Contact Elise for details.
VNTR LP Roundtables: The VNTR GP Club provides GP members exclusive access to an introduction service that connects them with active Limited Partners (LPs) and capital allocators looking to invest in top-tier venture capital funds. GPs interested in joining the VNTR Club can reach out to Robert. Capital allocators are invited to join our upcoming LP Roundtables to connect with other LPs to engage directly with leading GPs and explore new investment opportunities:
VNTR Awards: Join VNTR Awards to recognize excellence within the venture capital community. Please participate by nominating individuals and firms who stand out in the VC ecosystem. Award recipients will be chosen based on global community votes and industry insights. The awards will be presented at the end of VNTR Summit.
VNTR Summit Week side events:
Nov 11 VNTR Chapter Directors Summit (Chapter Directors and Venture Partners)
Nov 11 COREangels Day (20% discount using VNTR)
Nov 14 VNTR Club Retreat Sintra (VIP pass holders, VNTR Club members, and speakers)
VNTR Fund of Funds: We’re proud to have onboarded over 1,000 partners from VC funds worldwide, and we see significant potential in collaborating with top-performing fund managers. To capitalize on this opportunity, we are building the VNTR Fund of Funds team, which will deploy capital into the best fund managers within the VNTR community. We are currently recruiting GPs and Partners to join this dynamic initiative. If you're interested in being part of the VNTR Fund of Funds team, please contact Yuri to explore how you can contribute and participate.
VNTR Podcast: Catch all 17 episodes of the VNTR Podcast, available on YouTube, Spotify, and Apple. Stay informed with our latest insights and discussions featuring industry leaders and experts. Subscribe on your preferred platform to ensure you never miss an episode and keep up with the cutting-edge topics shaping the investment landscape.
New Positions at VNTR: We are expanding our global team with the mission to create the world’s largest VC investor community, club, syndicate, and marketplace:
Head of Sponsorships (Europe)
Marketing Manager (Europe)
Intern (Portugal)
Chapter Directors (Top Tech Hubs, our target is 50+ chapters by the end of 2025)
South East Asia Event Manager (Philippines, Vietnam, Indonesia, Malaysia)
Coming 4 Weeks:
Vienna: Nov 5 VNTR Investor Breakfast during Invest Austria (30% discount using VNTR-30)
Singapore: Nov 7 VNTR Investor Roundtable during Singapore Fintech Festival
Madrid: Nov 7 VNTR Investor Roundtable
Online: Nov 7 VNTR LP Roundtable
Cascais: Nov 11 VNTR Chapter Directors Summit (active VNTR Chapter directors and Venture Partners)
Lisbon: Nov 13 VNTR Global Investor Summit.
Sintra: Nov 14 VNTR Club Retreat Sintra (VIP passes, VNTR Club members and speakers)
Bangkok: Nov 14 VNTR Investor Roundtable during Devcon. (Sponsorship packages)
Houston: Nov 20 VNTR Investor Breakfast
Helsinki: Nov 21 VNTR Investor Roundtable during SLUSH
Tel-Aviv: Nov 25 VNTR Investor Roundtable
London: Nov 28 VNTR investor Luncheon
Thank you to our Partners:
Perfect is a Personal Lifestyle app that helps you Book your flights and hotels and manage your lifestyle. Enjoy personalized assistance with tasks, errands, and reservations, freeing time for what truly matters. Join Perfect using "VNTR" code to get special discounts and VNTR experiences.
Paypolitan offers a user-friendly app that seamlessly integrates your existing bank accounts and digital wallets, allowing you to view your entire financial landscape in one place. With Paypolitan, you can make instant payments using both traditional fiat currency and cryptocurrency within the same app. Additionally, Paypolitan provides instant peer-to-peer loans and staking options, enabling you to maximize your crypto holdings. Paypolitan's white-label integrations can transform any app into a financial product or allow startups to seamlessly connect with over 2,000 banks and 190 wallets through their APIs. Contact Nils Tharandt Ortiz, founder and CEO, to learn more.
Upcoming VNTR Events:
Dec 6 VNTR Investor Roundtable Abu Dhabi (Abu Dhabi F1 Grand Prix)
Dec 11 VNTR Investor Roundtable Abu Dhabi (Abu Dhabi Finance Week)
Jan 15 VNTR Investor Roundtable Bahrain (Chapter Launch)
Jan 21 VENTURE Investor Luncheon Davos (World Economic Forum)
Jan 22 VENTURE Investor Roundtable Davos (World Economic Forum), Sponsorship packages.
More events available on the VNTR Platform
Contact Elise to sponsor VNTR events or join the VNTR Annual Corporate Partnership.
Follow us on Social media: Instagram, LinkedIn, Facebook, Flickr, and X.
UPCOMING VC EVENTS
Nov 6 Invest Austria, Vienna, Austria (30% discount using VNTR-30)
Nov 6-8 Singapore FinTech Festival, Singapore (20% discount using SFFCPVNTR on Delegate Pass)
Nov 7 The Venture Revolution, San Francisco, USA (50% discount using VNTR50)
Nov 11-12 WOW Summit Bangkok, Thailand
Nov 11-14 Web Summit, Lisbon, Portugal
Nov 11-13 SALT iConnections Asia, Singapore
Nov 12-15 Devcon, Bangkok, Thailand
Nov 20-21 Slush, Helsinki, Finland
Dec 3-5 ISPO Munich, Germany
Dec 4-7 CC Forum, Paris, France (VNTR100EXEC complimentary General Admission pass, VNTR20VIP for 20% discount code for a VIP pass)
Dec 9-12 Abu Dhabi Finance Week, UAE
Dec 10-11 World AI Summit, Doha, Qatar
If you would like to submit VC-related events, please get in touch with Yuri or Telegram @byuric
VC Reads and News
View curated VC news and articles on the VNTR Platform
Eye On AI: The Never-Ending AI Valuation Escalation
It’s only been a few weeks since OpenAI announced its long-awaited raise of $6.6 billion at a post-money valuation of $157 billion. The Thrive Capital-led raise nearly doubled the San Francisco-based AI giant’s $80 billion valuation from its secondary offering in February.
The value seemed lofty for a company that loses a lot of money and now has a 46x revenue multiple. But OpenAI is OpenAI. It is ChatGPT and Sam Altman. It is a headline maker, a soap opera and a worry for regulators. It is what ushered in the gold rush to AI that began just a couple years ago and still has yet to let up.
And while there were skeptics of OpenAI’s raise, that gold rush it caused seems ready to push even more AI startups’ valuations to heights rarely seen in venture.
The 10 Biggest Rounds Of October: OpenAI’s Massive Deal Dwarfs All Others
OpenAI led the way last month and it really wasn’t even close. However, there were lots of other big raises — as a startup had to raise more than $200 million to make October’s list as investors were very willing to open their checkbooks for megadeals.
Founders and VCs back a Pan-European C corp, but an ‘EU Inc’ has a rocky road ahead
It’s become a common refrain in political discourse: Europe needs to take radical action to remain competitive. On the long list of potential reforms, one that’s gaining particular traction is a new, EU-wide corporate status for innovative companies.
Known (somewhat obscurely) as the “28th regime,” the innovation is being billed as Europe’s answer to a Delaware C corp and would add to what already exists in the EU’s 27 member states. It is now supported by an entrepreneur and VC-supported grassroots movement that also brought along the much more palatable name of EU Inc — and some unexpected momentum. Launched on October 14, the EU Inc petition has already attracted some 11,000 signatures.
One in every two euros invested in young startups is going to AI
Young startups — those launched in 2023 or 2024 — have raised a total of €3.1bn so far in 2024, according to Sifted data.
More than half (51.5%) of the total funding raised was secured by companies using AI as their core tech — despite AI startups only closing 9.8% of the 686 rounds announced. The three largest deals for startups launched after 2023 are all foundational AI: Mistral (€600m between Series B and debt), Poolside ($500m Series B) and H (formerly Holistic AI, $220m seed round) raised 40% of funding raised by companies founded in 2023 or 2024.
The Week’s 10 Biggest Funding Rounds: Crusoe Energy, Insider And Biotech Raise Big
There may not have been a $1 billion raise this week, but large money deals did abound. Two U.S. startups raised half a billion dollars apiece, and another eight raised $100 million or more, with industries from cybersecurity to biotech to AI represented.
Saudi VCs pour capital into ventures through strategic investments
Saudi venture capital firms are fueling regional innovation through substantial investments and new initiatives.
Aramco Ventures led New York-based industrial internet-of-things monitoring and communications startup Andium’s $21.7 million series B funding round.
Existing backers, including Climate Investment, Intrepid Financial Partners, and individual investors such as former Citadel Chief Investment Officer Thomas Miglis, also participated. The investment brings Andium’s total funding to over $40 million, following its $15 million series A round in 2021.
The newly secured funds will enable Andium to accelerate its global expansion, scale operations in oil and gas regions in the US and the Middle East, reduce technology costs, and bolster its research and development initiatives.
PE sells best assets first in exit value revival
Exit value has ticked up this year, as private equity firms largely traded their most valuable assets first.
The value of PE exits for Q3 has grown by an estimated 50.5% year-over-year, according to PitchBook’s latest US PE Breakdown.
The majority were the result of buyout firms fulfilling liquidity obligations to their LPs, or selling assets guaranteed to grow in any market environmen.
Web3 funding hits $5.4B in 2024
Web3 startups have raised over $5.4 billion in venture capital during the first three quarters of 2024, according to data from Crunchbase’s Web3 tracker.
Capital poured into blockchain-based companies stood at $1.4 billion in the last quarter alone.
Investors are increasingly targeting emerging markets at the intersection of blockchain and artificial intelligence, while projects focused on decentralized blockchain infrastructure have also drawn substantial capital flow recently.
October’s funding highlights include Glow’s $30-million raise to develop a decentralized solar grid and the Nillion Network’s $25-million funding round to advance its decentralized privacy platform.
Roadmap For Exits: How AI Startups Can Break Through
It’s no surprise that the AI market has skyrocketed in recent years, with venture capital investments in artificial intelligence totaling $332 billion since 2019, per Crunchbase data.
However, as AI booms, exit value in the United States is plummeting. M&A for venture-backed companies totals just $47 billion so far in 2024, down from $148 billion in 2021, Crunchbase data shows. At the same time, the IPO market is at a virtual standstill.
European M&A brightens as market conditions improve
Europe’s M&A market delivered a strong performance in the first nine months of the year with the region on track for a 20% year-over-year increase in annual deal value.
As of the end of Q3, the total stood at $803.7 billion, according to PitchBook’s Q3 2024 Global M&A Report.
At the current pace, 2024 would significantly surpass last year; although it would remain far short of 2021’s $1.4 trillion peak. Deal count, on the other hand, is on track for a record year with the total projected to reach almost 19,000 transactions.
In eastern Europe, success keeps breeding success
This week we launched the Sifted 30: Eastern Europe and the Baltics, sponsored by Google for Startups, a ranking of 30 startups with the strongest revenue growth in the region in the past three financial years.
Seventeen eastern European and Baltic countries were considered for the leaderboard. Only six made the cut. While we’d hoped for broader representation, the result isn’t surprising.
The region’s startup scenes are gradually changing for the better — drawing increased interest from budding entrepreneurs and global VCs. But only a few urban hubs have really succeeded in putting their startups on the map.
The US Presidential Election Will Affect Venture Investing. How Much Is The Question
Just like most of America, those in the venture and startup realm will watch the returns of the U.S. presidential election pour in next week with a keen eye on who wins — and what it could mean for big issues in the industry such as M&A, taxes and even crypto.
While the next American president will not solely decide those issues, who is elected likely will have a large say in regulations and tax changes that could have significance on industries ranging from AI to biopharma and from the biggest of Big Tech to a pre-seed startup.
Let’s take a look at some of the biggest issues VCs and founders likely are watching as the presidential election looms only days away.
PE playbook zeroes in on operational value creation
The PE industry is placing a greater emphasis on enhancing the value of portfolio companies by improving their operations—or at least, that’s the message many GPs are trying to convey to their LPs, industry participants tell me.
The concept of value creation has taken on new importance as high interest rates and a tepid exit environment have forced many firms to reinvent the strategies they use to generate returns.
How To Manage Power And Trust In Relationships With Investors And Business Partners
The dynamics of personal relationships can make or break a startup. Even if a founder and investor or business partner start their partnership as the best of friends, myriad hiccups can occur along the way.
Sooner or later, most startups will face a power struggle and founders need to be ready for it. Playing by the rules of the game is paramount; only then can founders carve their own path. It’s akin to a pilot mastering the skies — experience breeds expertise.
Out with a bang? VC predictions for Q4
As you may remember from our deep dive a couple of weeks ago, Q3 was a bit of a dud for VC dealmaking — with investors writing €11.5bn worth of cheques over the summer, compared to the €47.6bn raised from January to June, per Sifted data. Is Q4 going to be similarly sluggish?
According to some VCs, at least, there’s hope for a strong finish to the year.
Bitcoin at 16: Getting Its Driver's License and Entering a New Era
On October 31, Bitcoin turned 16 — the anniversary of Satoshi Nakamoto publishing the whitepaper that changed financial history. At 16, Bitcoin is no longer just a rebellious experiment; it’s entering a critical phase where it’s being tested on a much larger scale. Bitcoin is getting its proverbial driver's license, ready to navigate the open roads of the global financial system. The question is: can it handle the complexities ahead?
Bitcoin has evolved beyond "digital gold." Today, it's a foundational piece of global financial infrastructure. 2024 has seen the rise of Bitcoin Layer 2s, Ordinals, and institutional adoption, which shows we’re at a critical inflection point.
Mid-market deals fare best in boosting profitability
For the last decade, the buyout industry has predominately relied on multiple arbitrage and financial engineering to drive portfolio company value growth, paying little heed to operational improvements.
The era, however, concluded with the onset of high interest rates. Increased financing costs and depressed valuations limited GPs’ ability to derive value and fuel growth through leveraged acquisitions or simply riding an industry tailwind.
Consequently, the notion of margin expansion—improving a portfolio company’s profitability by optimizing operations—has gained momentum. The ability to drive value growth by making portcos more profitable has been at the forefront of discussions about what will drive the next stage of PE strategy.
China’s “entrepreneurship for everyone” era ends as state sets agenda
Venture capital and private equity investment in China fell 38.7% on the year in the first half of 2024, to RMB 196.7 billion (USD 28 billion), according to research company Zero2IPO. Money raised by fund managers also dropped 22.6% to RMB 622.9 billion (USD 88.7 billion).
By comparison, venture capital and private equity investment in the U.S. fell 3% to USD 418.5 billion during the same period, while fund managers raised 3.3% more.