VNTR Newsletter Oct 6, 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 Global Investor Summit on Nov 13 in Lisbon: In just five weeks, we’ll be hosting our most anticipated global gathering of the year, bringing together over 200 investors in Lisbon. This exclusive event is designed to foster learning, connections, and the sharing of insights across the investment landscape. VNTR Summit will feature keynotes, panel discussions, and roundtables, focusing on pivotal themes such as ClimateTech, Impact Investing, AI, Blockchain, Women in VC, and Investments in Portugal. Attendees can participate in GP/LP and CVC roundtables, engage in pre-scheduled one-on-one meetings, and leverage our curated matchmaking services to maximize connections. Don’t miss out on the premier investor event of the year. Secure your early bird ticket today. We are recruiting speakers and panelists to join our programming. Apply as a speaker here.
VNTR Summit Awards: We are pleased to announce that we will host an award ceremony during the VNTR Global Investor Summit. VNTR awards will celebrate excellence within the investment community, recognizing outstanding achievements and contributions from individuals and organizations in the Venture Capital industry. The categories and their respective nominees will be announced soon. Follow us on our Social Media (Instagram, Facebook, LinkedIn & X) for all the latest updates.
Sponsor VNTR Summit: Sponsorship opportunities are available for companies looking to provide value to investors, high-net-worth individuals, and their portfolio companies. Don’t miss this chance to enhance your brand’s visibility and connect with key decision-makers. To explore sponsorship options, apply today or contact Elise directly for more details.
VNTR Podcast: We hosted Ali Jamal, Founding Partner at First Check Ventures, an investment syndicate that invests in early-stage startups in emerging markets like LATAM. Ali shares his path into Venture Capital, how he identifies promising startups, and his vision for the future of technology and innovation. He also offers practical advice for entrepreneurs seeking funding and early-stage investors. Tune in on YouTube, Spotify, and Apple. Stay updated with our latest episodes, and subscribe on your preferred platform to never miss insightful discussions.
Expand North Start and GITEX Global: Join us at our flagship investors gathering during Expand North Star and GITEX Global in Dubai. Investors can claim complimentary investor passes. Book your Travel with Perfect, our global concierge. Join our official side events for investors:
Oct 14 Investor Pitch Day: "Innovate for Tomorrow Challenge 2024" organized by Dubai Holding with VNTR as a media partner.
Oct 15 VNTR Investor Roundtable Dubai. Thank you, In5 Tech, for hosting us. View sponsorship packages
Oct 16 VNTR LP Roundtable Dubai (active Limited Partners, family offices, fund of funds, and capital allocators only). Thank you, Dubai Internet City, for hosting us.
Coming 4 Weeks:
Online: Oct 8 VNTR Speed Networking powered by Airmeet
Madrid: Oct 9 VNTR Investor Roundtable Madrid during Merge Madrid
London: Oct 10 VNTR Investor Breakfast London during Zebu Live
San Francisco: Oct 11 VNTR Investor Roundtable San Francisco during SF Tech Week.
Los Angeles: Oct 16 VNTR Investor Roundtable Los Angeles during Los Angeles Tech Week
Austin: Oct 19 VNTR Investor Brunch Austin during F1 Grand Prix Austin
Toronto: Oct 23 VNTR Investor Breakfast
Mexico City: Oct 22 VNTR Investor Roundtable during Mexico City Tech Week
Toronto: Oct 23 VNTR Investor Breakfast
Hong Kong: Oct 30 VNTR Investor Roundtable during Hong Kong FinTech Week.
Istanbul: Oct 31 VNTR Investor Roundtable during Istanbul Tech Week
Miami: Nov 1 VNTR Investor Roundtable during Fort Lauderdale International Boat Show
Thank you to our Partners:
Quantum EVM is a quantum-safe blockchain that implements post-quantum cryptography and solves existing security flaws in Ethereum. With a team of leading experts and dedicated scientists, Quantum EVM is working towards establishing a complete ecosystem that offers speed, scalability, and security for a sustainable future in the face of advancing quantum computing capabilities.
Camino Network is the Layer 1 blockchain built specifically for the travel industry. Operated by a consortium of industry leaders, Camino transforms the distribution landscape and solves connectivity challenges in the multi-trillion-dollar travel sector.
Upcoming VNTR Events:
Dec 6 VNTR Investors Roundtable Abu Dhabi (Abu Dhabi F1 Grand Prix)
Jan 22 VENTURE Investors Roundtable Davos (World Economic Forum)
More events available on the VNTR Platform
Contact Elise to sponsor VNTR events or join the VNTR Corporate Partnership.
Follow us on Social media: Instagram, LinkedIn, Facebook, Flickr, and X.
UPCOMING VC EVENTS
Oct 7-13 San Francisco Tech Week, USA
Oct 8-12 Merge Madrid, Spain
Oct 10-11 Zebu Live, London, UK (25% discount using VNTRCapital25)
Oct 13-16 Expand North Star, Dubai, UAE (25% discount using VNTRENS25, Complimentary investor passes)
Oct 14-18 GITEX Global, Dubai, UAE (25% discount using VNTRENS25, Complimentary investor passes)
Oct 14-20 Los Angeles Tech Week, USA
Oct 15-17 Meridian by Stellar, London, UK
Oct 21-27 Mexico Tech Week, Mexico City, Mexico
Oct 22-23 Blockchain Life, Dubai, UAE (10% Discount using VNTR)
Oct 28-29 SWITCH, Singapore
Oct 28-Nov 1 Hong Kong FinTech Week, Hong Kong
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 20-21 Slush, Helsinki, Finland
Dec 4-7 CC Forum, Paris, France
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
The Week’s 10 Biggest Funding Rounds: OpenAI On Top — By A Lot
It is no shock to see the company that tops this list — a $6.6 billion raise makes a lot of headlines. However, it was far from the only big round this week, as seven of them topped $100 million — including $500 million for yet another AI company.
The 10 Biggest Rounds Of September: Safe Superintelligence’s $1B Raise Reigns Supreme
Lots of big rounds as summer fades into fall. AI startup Safe Superintelligence’s $1 billion round — for a startup that’s existed for only a few months — easily led the way. However, it wasn’t just AI that got funding in September, as biotech makes up about half the list.
The things nobody told me about launching a VC firm: How to set up a fund structure
When you dream of launching a VC fund, you imagine a frustration-free world where you invest in the companies you choose and work with founders your way.
When you raise your first fund, especially if it’s small and you are solo, most LPs worry about how you will allocate your time, and scale investing and portfolio support. Yet the biggest, most unexpected bottleneck I encountered is around ops — everything from setting up a fund structure to all the processes and providers required to run a fund. Setting up a fund can feel like a Catch-22, with so many entities and jurisdictions that bring interlocking costs, tax and regulatory considerations.
Global Funding Slowed In Q3, Even As AI Continued To Lead
Global venture funding in the third quarter of 2024 reached $66.5 billion, Crunchbase data shows. That’s down 16% quarter over quarter and 15% year over year from the $78 billion invested in Q3 2023.
We are now nine or 10 quarters into the current startup funding decline. This past quarter was the second below the $70 billion mark since the start of the current venture funding downturn, according to Crunchbase data. Outside of Q4 2023 and this past quarter, one would need to go back to 2017 to find another quarter below $70 billion.
But Q3’s numbers don’t necessarily signal a further pullback in venture funding moving forward, as we’ve seen large fundings fluctuate quarter over quarter this year and last, skewing overall numbers.
Work Productivity Hacks & Tips for Today’s Workplace
Gallup’s 2023 State of the Global Workplace report highlights a stark reality: disengaged and burned-out employees are draining 9% of the world’s GDP, resulting in approximately $8.8 trillion in losses. On the other hand, engaged employees are 18% more productive and 23% more profitable. This underscores how closely productivity is tied to profitability and overall organizational health.
Furthermore, data from ActivTrack reveals that increasing focused work by just 5 minutes each day over a typical 5-day work week can significantly boost productivity potential. By implementing effective office productivity tips and office productivity strategies, employees can transform their workday, achieving more in less time. This sense of accomplishment not only enhances individual performance but also fosters a positive, engaged work culture and avoids burnout. Engaged employees contribute to collective success, driving the organization forward.
Blackstone targets $10B for third Asia fund as region’s fundraising picks up
Blackstone is seeking to raise more than $10 billion for its third Asia private equity vehicle as fundraising in the region rebounds.
The $1 trillion-plus asset manager is reported to be in the early stages of marketing the fund, which is set to deploy capital into opportunities within Japan and India, according to Bloomberg. The target represents a significant increase from its predecessor, which raised $6.4 billion in capital.
The fund’s launch comes as fundraising in Asia has regained traction after two years of decline.
Crypto startups secure $691 million in venture capital during September
Venture capital (VC) funds invested over $659 million in crypto startups last month, representing a 3% increase compared to August, according to DefiLlama data.
The blockchain gaming sector grew for the second consecutive month, with VC funds pouring $63 million into blockchain titles, marking a 32% monthly growth.
Nearly half of the money raised by blockchain gaming startups was directed at Balance Games. The project received $30 million from companies such as Animoca, a16z, Aptos Labs, and DWF Labs to combine blockchain and artificial intelligence to create more enjoyable user experiences.
Do startups have a chance vs big tech in the age of AI? History says yes…in due time
Since OpenAI released ChatGPT in Nov 2022, the pace of innovation, adoption, investment and revenue for AI products and infra have grown at an awesome rate - but mostly for tech incumbents, and the best funded tech companies.
The resources and momentum of the early leaders can make founders (and investors) feel like it’s too late, or too hard for new AI startups to win. There’s “OpenAI killed my startup” gestalt, and concern about AI startups being snuffed by a black hole of big tech gravity.
Incumbents Apple, Amazon, Google, Meta, Microsoft and Nvidia are worth an unprecedented $14.5T in combined market cap. OpenAI, Anthropic, Mistral and Perplexity are worth a combined $110B+ (or $170B+ if OpenAI is valued at $150B) and they have raised $20B+.
First Cut—State of Private Markets: Q3 2024
Initial data from Q3 2024 shows median pre-money valuations and cash raised remained steady compared to previous quarters across the U.S. venture ecosystem.
Early can be tantamount to being wrong
Q3 VC funding data is in. There were 1,175 announced seed rounds globally in Q3 2024, down 25% compared to Q3 2023 (or down 48% compared to 2021). Similar patterns were seen at Series A, Series B & Series C (all down c.15% vs Q3 2023).
The data suggests VC is in flux. The venture capital industry is currently holding its breath. Waiting for the excesses of the ZIRP bubble work their way through the system. Waiting for the outcome of the US election. Waiting for exits.
But, more than anything else, the venture capital industry is looking for the next grand narrative. The great hope is AI. AI will wipe away the sins of the 2020/21 bubble and bring back the feelgood factor in the industry.
GV, Salesforce Ventures Top Corporate Venture In Leading Investments
Last week we talked about how corporate venture investments were actually down through the past two years, despite big investments in AI by the likes of Microsoft and Google.
However, that doesn’t mean large U.S. corporations and their venture arms are not leading a lot of rounds — and some big ones at that.
The likes of GV, Salesforce Ventures and M12 top the list so far this year in terms of rounds led or co-led by U.S.-based corporate ventures — including massive bets in AI, healthcare and the cloud.
With Crunchbase data, let’s dive into not just who is investing, but taking the pole position in those deals.
VC Map: UK’s VC market falling back to pre-pandemic levels
After a brief recovery in the second quarter of the year, UK venture capital dealmaking has once again dropped, putting the year on track for its lowest annual total since before the pandemic.
As of the end of Q3, £10.9 billion ($14.5 billion) has been invested across 1,879 deals this year. At the current pace, deal value and count are expected to come in significantly below last year’s total of £15.5 billion invested across 3,138 rounds.
The second quarter of 2024 was the best of the year in terms of deal value—£5.6 billion was raised by UK startups. Q2 deals included autonomous driving startup Wayve’s $1.05 billion SoftBank-led Series C and Hedosophia’s £150 million investment in challenger bank Monzo.
Eye On AI: AI’s Torrid Pace Of Funding Continues
That’s the most obvious takeaway from a quick glance of funding numbers for the just-completed third quarter. In Q3, AI-related startups raised $18.9 billion, per Crunchbase. That is the second-largest quarter for AI funding — behind only Q2, which saw $23.4 billion invested — since the launch of ChatGPT in November 2022.
OpenAI Raises $6.6B At $157B Valuation
OpenAI has announced its long-awaited raise of $6.6 billion at a post-money valuation of $157 billion led by Thrive Capital.
The new round makes the ChatGPT creator one of the most valuable private companies in the world and also included investment from the likes of Altimeter Capital, Fidelity, Khosla Ventures, Microsoft, Nvidia, SoftBank and Abu Dhabi-based MGX. Just this week it was reported SoftBank’s Vision Fund would invest $500 million in the round.
Late last week it was reported Apple was dropping out of the round.
Healthcare services takes up half of European healthcare PE deals
Healthcare services accounted for more than half of the private equity investment in European healthcare year-to-date amid an overall decline in investments in the sector.
While dealmaking for healthcare services has slowed from 2023, it accounts for around 54% of the total PE deal value in the European healthcare sector, up from 46.3% in 2023.
Healthcare services—which includes clinics and outpatient services—saw €10.9 billion (about $12 billion) in deal value across 175 transactions as of Sept. 23.
Fidelity Takes VC Plunge, Raises $250 Million for Tech Investments
The Boston-based asset manager’s latest push into the private asset space — Fidelity Venture Capital Fund I — closed with support from investment advisers, family offices and high-net-worth investors, according to a Wednesday (Oct. 2) press release.
The fund will make minority investments in mid- to late-stage private companies in a range of sectors with a particular focus on the United States in technology, media and telecommunications, the release said.
It has already invested about $31 million in companies including SpaceX and cloud-based infrastructure provider CoreWeave, Bloomberg reported Wednesday.
The Rise of VaaS: How AI Is Redefining SaaS Pricing Models
As AI continues to revolutionize industries, the traditional SaaS pricing model, based on a per-seat or per-user approach, is rapidly becoming outdated.
With AI-driven tools now capable of handling tasks previously done by humans, fewer “seats” are required, making the per-seat model less relevant.
Salesforce has already taken steps in this direction by announcing its new Agentforce platform, which will charge $2 per conversation instead of by user or seat.
3 charts: Startup founders and VCs find more equal footing
After a rough run for startups, the venture market is edging back up—slowly but surely.
Whether you chalk it up to AI or a clearer economic outlook, the landscape is improving for venture-backed companies that a year ago were feeling the squeeze from investors. More players, like asset managers, are returning to the marketplace as startups begin to see a friendlier dealmaking environment. Falling US interest rates have also buoyed investor hopes for a more robust exit market ahead.
The Rise of Index Investing in Crypto
Cryptocurrency has evolved as a global asset class with significant implications for modern investment portfolios. Despite undeniable growth, crypto remains volatile, posing challenges for even seasoned investors. An increasingly popular solution to navigating these risks is crypto index investing. Crypto index funds are products that bundle multiple cryptocurrencies into a single vehicle, offering a diversified, systematic approach to gaining exposure to the digital asset market while mitigating some of its inherent risks.
Carbon Capture, Storage And Transformation Is Still A Popular Funding Theme
If humanity is to prevent more of the inhabited parts of our planet from turning into unlivable hellscapes, we’ll need to stop spewing greenhouse gasses into the atmosphere.
Switching to more eco-friendly energy sources will help, of course. But to slow or stop some of the most dire consequences, the growing consensus is that we’ll also need to massively scale carbon capture and storage.
Funding tallies reflect this mindset. So far this year, startups with business models tied to carbon capture, storage and transformation have closed on nearly $1.2 billion in equity and debt financing, per Crunchbase data. That puts 2024 on track for the second-highest annual tally in five years, as charted below.
Nvidia’s Venture Capital Arm Is Silently Investing Millions Into Healthcare
Nvidia has always sought to invest in valuable innovation. Its decades long dedication to building meaningful products and attempting to revolutionize the hardware industry has largely paid off; from its seminal work in gaming to its latest progress with chips that have been essential to the development of generative AI, the company has been successful without a doubt.
However, although most think of Nvidia as purely a hardware organization, the company is also rapidly investing resources in other arenas— and NVentures, which is the company’s venture capital arm, is leading the charge with numerous investments in healthcare.
Speed vs. Perfection: How Top Entrepreneurs Dominate Winner-Takes-All Markets
Operating with diligence is often a decisive factor in startups’ successes. In some industries, the first to market wins. In others, it’s the company that innovates most consistently or serves customers best. However, in winner-takes-all markets, the rules are different. Moving fast is the name of the game. Few remember Friendster, Google+, Sidecar, Viadeo, or Dailymotion—they were beaten to scale by Facebook, Uber, LinkedIn, and YouTube.
North American Startup Funding Weakened In Q3 As Largest Deal Took Longer To Close
The past quarter was a quirky one for North America startup funding, with a slowdown in some pockets counterbalanced by continued high enthusiasm around artificial intelligence, Crunchbase data shows.
Overall, the number and size of funding rounds to North American startups slowed sequentially in the third quarter based on reported investments. However, the tallies did not include an enormous $6.6 billion financing for OpenAI that was widely reported in Q3 but only officially announced this week.