venturecapital
/venturecapital5897
The home for Farcasters to discuss all things venture capital and early stage finance.
What's one question you have about venture capital?
Are people really buying common shares on Hiive or other secondary markets?
Truly fascinating.
Truly fascinating.
Crowdcube investors could invest up to £5'000 in Revolut in 2016 I believe at £1.68, now valued at ~£662.20 in this summer's secondary sale.
I leave you do the maths. A fantastic story but still a one-off in crowdfunding. https://bmmagazine.co.uk/get-funded/revoluts-earliest-crowdfunders-set-to-pocket-life-changing-returns/?amp
Listen to my latest podcast with Sia from Seedcamp, who pushed the deal inside the VC firm in 2016 and who helped Nik (Revolut's CEO) raise the Series A, that eventually Balderton led. https://www.imd.org/ibyimd/podcasts/capital-conversations/sia-houchangnia-on-building-relationships-that-empower-founders/.
I leave you do the maths. A fantastic story but still a one-off in crowdfunding. https://bmmagazine.co.uk/get-funded/revoluts-earliest-crowdfunders-set-to-pocket-life-changing-returns/?amp
Listen to my latest podcast with Sia from Seedcamp, who pushed the deal inside the VC firm in 2016 and who helped Nik (Revolut's CEO) raise the Series A, that eventually Balderton led. https://www.imd.org/ibyimd/podcasts/capital-conversations/sia-houchangnia-on-building-relationships-that-empower-founders/.
Investors often overlook the next big thing and I have tried to understand why.
Note that this challenge is particularly palpable & relevant at pre-seed.
Threadcast🧵
Note that this challenge is particularly palpable & relevant at pre-seed.
Threadcast🧵
"Radical transparency doesn't mean that you can't be thoughtful about the way you're gonna still deliver that feedback, right?"
Here is why this quote perfectly encapsulates the latest episode of "Capital Conversations", the Venture Capital podcast I've been hosting for IMD since I created it in 2023.
Threadcast🧵
Here is why this quote perfectly encapsulates the latest episode of "Capital Conversations", the Venture Capital podcast I've been hosting for IMD since I created it in 2023.
Threadcast🧵
What's one question you have about venture capital?
Bet on GP teams who care about their LPs
According to the latest Preqin (Oct. 2024), the total ‘dry powder’ in VC funds has jumped to ~ $555.6 billion, with Europe holding $47.2 billion of it.
I suspect 2025 will be massive for deployment in particular in Europe where catch-up w the US is underway, in part led by AI and/or deep tech teams choosing France and Switzerland. Onwards 2025, so bullish on the region.
I suspect 2025 will be massive for deployment in particular in Europe where catch-up w the US is underway, in part led by AI and/or deep tech teams choosing France and Switzerland. Onwards 2025, so bullish on the region.
Are others seeing this? Have any recent projects done this?
I've just read that on linkedin. My comment:
Ideally it's a blend of both, with core allocation to established franchises across cycles and vintages. Because the LP-GP is about long-term human partnerships, there should be a consistent pocket committed to new and emerging managers because EVERY ESTABLISHED VC FIRM WAS AT SOME POINT A FUND I.
https://www.ft.com/content/3a6a1ce4-a5cc-4180-9f2f-2665a7e08b1f?sharetype=blocked
Ideally it's a blend of both, with core allocation to established franchises across cycles and vintages. Because the LP-GP is about long-term human partnerships, there should be a consistent pocket committed to new and emerging managers because EVERY ESTABLISHED VC FIRM WAS AT SOME POINT A FUND I.
https://www.ft.com/content/3a6a1ce4-a5cc-4180-9f2f-2665a7e08b1f?sharetype=blocked
What's one question you have about venture capital?
Update on secondary market rolling 90-day bid/ask ratio:
-accelerating for AI companies
-still at a decade low for non-AI companies
-volume of activity is increasing. But on the margin, there are more (forced?) sellers pushing down the bid/ask ratio for non-AI companies
(These are venture capital backed companies that haven't yet gone public)
-accelerating for AI companies
-still at a decade low for non-AI companies
-volume of activity is increasing. But on the margin, there are more (forced?) sellers pushing down the bid/ask ratio for non-AI companies
(These are venture capital backed companies that haven't yet gone public)
What can Swiss pension funds learn from Yale? 1'500 pension funds in the country, deploying on average... 0.5% in VC 🤨
University endowments in the US, in particular Yale, excel in investing in venture capital to boost their returns. While Swiss pension funds tend to be (much) more cautious, they could draw inspiration from this model to address their own challenges.
Three key ideas to explore:
- align venture capital with long-term liquidity needs
- manage illiquidity through strategic allocation
- adapt governance to maximize VC opportunities.
imd.org/ibyimd/finance/what-pension-funds-could-learn-from-yale ,what do you think?
University endowments in the US, in particular Yale, excel in investing in venture capital to boost their returns. While Swiss pension funds tend to be (much) more cautious, they could draw inspiration from this model to address their own challenges.
Three key ideas to explore:
- align venture capital with long-term liquidity needs
- manage illiquidity through strategic allocation
- adapt governance to maximize VC opportunities.
imd.org/ibyimd/finance/what-pension-funds-could-learn-from-yale ,what do you think?
Later this month, I'll publish an IMD VC podcast episode ("Capital Conversations") with David Clark from VenCap in London, that I recorded in-person @ Slush (major global tech event in Helsinki).
You will be able to listen to it, surrounded by your family, by the firepit ;)
For context, since inception 37 years ago, VenCap has committed $2.9bn to over 450 VC funds (US, Europe, China, India).
We've talked about not timing cycles, top-decile funds do also occur in weak vintages, we challenged the “small funds outperform” rule, etc..
Look for "IMD Capital Conversations" on your fav streaming platforms.
I share this here because I spend a lot of time find unique insights in VC that I'm bringing in an easy to digest format, let me know what you think!
You will be able to listen to it, surrounded by your family, by the firepit ;)
For context, since inception 37 years ago, VenCap has committed $2.9bn to over 450 VC funds (US, Europe, China, India).
We've talked about not timing cycles, top-decile funds do also occur in weak vintages, we challenged the “small funds outperform” rule, etc..
Look for "IMD Capital Conversations" on your fav streaming platforms.
I share this here because I spend a lot of time find unique insights in VC that I'm bringing in an easy to digest format, let me know what you think!
Yes a bit promotional but with insights! ;)
I recently sat down with Nicolas Dufourcq, the CEO @ Bpifrance, in his Paris office, for "Capital Conversations", IMD’s VC podcast (I’ve been running since 2023).
I believe this episode stands out for Nicolas’ passion & commitment to entrepreneurship. And for context, Bpifrance, the French national investment bank, injected.. €63 billion into the French economy in 2023. It has become a cornerstone of the entrepreneurial ecosystem, supporting businesses at every stage of growth.
3 key takeaways imho from this episode:
- resilience in action
- unique ecosystem building
- championing inclusivity
Spotify spoti.fi/414jWbh + Apple Podcasts apple.co/4986iWk
No surprise every month Nicolas receives international delegations from various governments willing to understand how to "replicate" & adapt in their home countries..
I recently sat down with Nicolas Dufourcq, the CEO @ Bpifrance, in his Paris office, for "Capital Conversations", IMD’s VC podcast (I’ve been running since 2023).
I believe this episode stands out for Nicolas’ passion & commitment to entrepreneurship. And for context, Bpifrance, the French national investment bank, injected.. €63 billion into the French economy in 2023. It has become a cornerstone of the entrepreneurial ecosystem, supporting businesses at every stage of growth.
3 key takeaways imho from this episode:
- resilience in action
- unique ecosystem building
- championing inclusivity
Spotify spoti.fi/414jWbh + Apple Podcasts apple.co/4986iWk
No surprise every month Nicolas receives international delegations from various governments willing to understand how to "replicate" & adapt in their home countries..
The flywheel effect is at the very heart of a vc firm’s success, because:
1) exceptional startups attract other exceptional startups,
2) collaborations within the portfolio boost growth and validate the firm’s ecosystem, and
3) success stories fuel the firm’s reputation, bringing in the next generation of transformative ideas.
Be it media, platform, community, you name it, the vc firm should action a flywheel.
Caveat:
For 1), luck absolutely plays an important role in the first few years, even potentially during the first 1-2 fund's cycles.
For 3), flywheel may not happen before fund III (because this is when DPI starts to kick in).
1) exceptional startups attract other exceptional startups,
2) collaborations within the portfolio boost growth and validate the firm’s ecosystem, and
3) success stories fuel the firm’s reputation, bringing in the next generation of transformative ideas.
Be it media, platform, community, you name it, the vc firm should action a flywheel.
Caveat:
For 1), luck absolutely plays an important role in the first few years, even potentially during the first 1-2 fund's cycles.
For 3), flywheel may not happen before fund III (because this is when DPI starts to kick in).
Thoughts on the current cycle*, a 🧵:
1/5 It's speeding up
Attention/liquidity/rotation is moving way faster than previous cycles. It's because we ("smart retail" + funds + tradfi shops) are spread out more.
This is a function of:
-Communications dispersion: Farcaster, CT, Discord/Telegram, Tiktok, Youtube, podcasts, etc
-Chain dispersion: ETH/EVM orbit (including L2s), Solana, Bitcoin L2s, and apparently other places like XRP/Cardano (?!)
The meta shifts quickly, and the ball of hot money is moving fast. It's like a Tasmanian Devil spinning around from one city to another, very quickly.
*starting with BTC exchange arbitrage in 2013, this is my fourth cycle. I've spent a lot of time thinking about previous mistakes, and I've made a lot of them.
1/5 It's speeding up
Attention/liquidity/rotation is moving way faster than previous cycles. It's because we ("smart retail" + funds + tradfi shops) are spread out more.
This is a function of:
-Communications dispersion: Farcaster, CT, Discord/Telegram, Tiktok, Youtube, podcasts, etc
-Chain dispersion: ETH/EVM orbit (including L2s), Solana, Bitcoin L2s, and apparently other places like XRP/Cardano (?!)
The meta shifts quickly, and the ball of hot money is moving fast. It's like a Tasmanian Devil spinning around from one city to another, very quickly.
*starting with BTC exchange arbitrage in 2013, this is my fourth cycle. I've spent a lot of time thinking about previous mistakes, and I've made a lot of them.
Interesting analysis of the "must have" Series A deals going back to 2012.
The top "pickers" are a16z (7), Sequoia (6), Benchmark (5), and Index (4), followed by Accel (2), DST (2), Founders Fund (2), Kleiner Perkins (2), NEA (2), Qualcomm (2), Social Cap (2), and Ribbit (2)
https://x.com/ColeRotman/status/1863422598056648860
The top "pickers" are a16z (7), Sequoia (6), Benchmark (5), and Index (4), followed by Accel (2), DST (2), Founders Fund (2), Kleiner Perkins (2), NEA (2), Qualcomm (2), Social Cap (2), and Ribbit (2)
https://x.com/ColeRotman/status/1863422598056648860
Capital deployment is trending in an encouraging direction.
The late stage financings are carrying it though, and that's out of necessity since IPO market is still cold.
The late stage financings are carrying it though, and that's out of necessity since IPO market is still cold.
Stopping work for 3 months after a big win is the most Europoor thing I’ve ever heard
Pattern matching isn't perfect.
Do you have a framework to identify outliers that have been passed over?
Do you have a framework to identify outliers that have been passed over?
What's one question you have about venture capital?