Michal Bas

WSJ reporting Foundational Model company Mistral is raising $600mm at a $6 Billion Valution. For VCs goes to show Foundational Models are a big boys game with hundreds of millions if not Billion + needed to be raised to be competitive. But I wonder longer term if these are + ev bets or simply a way for the blue chip VC firms who have raised billions for their new AI funds to deploy massive amounts of capital in low-risk low-return bets. The more interesting companies are still worth $50 million or less but; 1. Finding them is hard 2. Check sizes are by definition smaller so for big VCs won't move the needle 3. The risks of failure are extremely high But that is where the highest expected value lies.

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A mentor equips startups with the tools, insights, and confidence to pitch effectively, turning intimidating scenarios into opportunities to win investor trust and support.

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"Europe’s glaring lack of growth capital acts as a serious constraint in an increasingly winner-takes-all world." Meh. Good European companies find growth capital. It ultimately doesn't matter that it isn't usually from European investors. Europe being a highly fragmented market of medium, small, and tiny economies is a much bigger issue...and one that's just not going to be fixed anytime soon. It all too often makes for too slow a slog to get to scale. Europe needs to unify its capital markets, standardise its legal and tax systems, strip away friction points for startups, adopt English as its common language and make sure every child becomes fluent in it, etc. It won't though - at least not anytime soon. https://lnkd.in/es-Vp7gF

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My VC-tech newsletter for the first half of September can be summarized in 5 words - Summer Slump and AI Hype - https://lnkd.in/eHuihDec European VC Market 📉 August was the worst month for European startup funding since April 2017, with only €1.8bn raised across 247 funding rounds. 📈 Despite this, median late venture rounds are growing in size, with the median Series B round size up 40% year on year. Global VC Trends 📉 The number of VC transactions continued to decline in Q2'24, to 4,207 from 4,452 in Q1. 📈 However, aggregate value ticked up to $69.4bn from $61.2bn, boosted by tech deals. 🚨 Exits continued at a very moderate pace, with only 13 VC-backed IPOs in Q2 compared to 44 in Q1 2024. AI Update 🤖 AI features prominently among the 6,868 VC funds currently in market worldwide, aiming to raise a combined $462.6bn. 💰 The US has increased its domination of VC in recent years, with prominent funds like Andreessen Horowitz and Balderton Capital investing heavily in AI (A16Z did close their Miami shop which Khosla shrugged off). Mega-Deals and IPOs 🚀 Safe Superintelligence raised a $1+ billion round at a reported $5 billion valuation, while OpenAI and Coreweave are out to raise unprecedented rounds. 💰 Sequoia Capital bought $861 million worth of Stripe shares. IPO 🔔 Companies like OpenAI, CoreWeave, and Rebellions are reportedly planning IPOs. Come along for much else on how VC valuations shaped up in early Sep, the California AI act, AI eating jobs at your favourite BNPL shop, Paul Graham's awesome new article on 'founder mode'. #VC #Startup #Tech #AI #IPO #VentureCapital #Funding #Innovation

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I'm delighted to announce the launch of the TempoCap Liquidity Indices, which, on a quarterly basis, track the largest European VC-backed exits since January 2020. We are tracking three main types of exits: all cash, cash and shares, and public listings.   We struggled to find this information in a single place or in a comprehensive format, so we decided to compile it ourselves from a range of data sources. Of course, we may have missed some exits, so please don't hesitate to get in touch if we have.   Here are a few notable trends from the data: 🔴 On all cash exits: A limited number of these were above $1 billion in Europe over the last nearly five years - we counted only five. Out of the top 15 cash exits, six were companies from the U.K., four from Germany, three from France, and two from Scandinavia - including the largest, Tink. 14 out of the top 15 exits were to strategics (with only one PE buyer), and 60% of buyers were U.S. companies. The average time to exit from the founding date was ten years. 🔴 On exits for cash and shares: There have been a limited number of these above $1 billion in Europe over the last circa five years, too —we counted only four. The U.K. had five companies out of the top 15, and interestingly, two each came from Poland and Germany, while the largest, Wolt, is Finnish. Again, 60% of buyers were from the U.S. The average time to exit from the founding date is nine years. 🔴 On public listings: Here, all 15 listings were above $1 billion—but some didn't stay above that level post-IPO, and three are no more! Out of the top 15, seven (or nearly half) came from the U.K., three came from Germany, and the largest, UI Path, came from Romania. The average time to IPO from the founding date was 11 years. We have researched various sources to ensure that we have the most accurate information possible, but if you've spotted something that needs to be corrected or a company that needs to be added, please let us know at [email protected].

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🌟 Weekly Funding & Trends Update! 🌟 🔹 PHINXT Robotics in London raised €2.3M led by Sure Valley Ventures and participation by Ada Ventures, HEARTFELT_ and Atlas Ventures, in an oversubscribed round! 🔹 Led by Bert Baeck, Timeseer.AI, a Belgian platform that offers a data reliability & observability platform secured an undisclosed investment from OTB Ventures. 🔹 Swiss startup DemoSquare, which enables public-procedures teams to browse, monitor, analyse, and predict legislation, to help anticipate risks and identify opportunities, gathered €1.28M in pre-seed funding, led by QBIT Capital and participation by early stage investor, HTGF | High-Tech Gründerfonds (HTGF). 🔹 Vilniaus universitetas / Vilnius University startup, Biomatter raised €6.5M from Inventure and UVC Partners for their biotech platform that uses AI to create new enzymes. 🔹 London-based Kennet Partners launched a €266M fund for #B2B SaaS startups. Despite a challenging market environment, early-stage funding remains robust, with #AI and #healthcare sectors consistently attracting substantial investments. European startups are strategically positioning themselves with new funds in technology-driven sectors, preparing for a potential rebound in late-stage investments. #venturefinance #startups #investment #AI #healthcare #B2B #fundingnews

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"Europe's early-stage market continued to see growth in median valuations in the first half of the year, while recovery in price tags for more mature startups has been slower. The overall value of the region's unicorns reached an all-time high, driven in part by AI's momentum, according to our Q2 2024 European VC Valuations Report. Exit valuations have also improved—barring the median for public listings, which have included a negligible number for VC-backed companies. With further rate cuts anticipated this year, the outlook for European VC valuations is expected to continue to improve." MedTech Innovator LSI LSI Europe #LSIalumni #LSIEurope24 American Heart Association Heart Rhythm Society

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📊 US Business Migration on the Rise: 🇪🇺 Europe 🇪🇺 Loses Top Startups in 2024 The trend is emerging in 2024: promising European tech start-ups are increasingly relocating their offices to the United States. 🇺🇸 With venture capital investment flows declining in Europe, many startups are finding better opportunities for growth and development in the U.S., a market that offers a more favourable environment and greater access to funding. 🚀 This should be cause for concern! Key Trends Driving This Shift: 👁️ The U.S. continues to attract startups with its robust venture capital ecosystem, advanced technology infrastructure, and supportive legislative and tax incentives. 🚩 Many European countries are struggling to provide long-term funding and growth opportunities, leading to a "brain drain" of talent and innovative companies. ✈️ Startups from Germany 🇩🇪, Spain 🇪🇸, France 🇫🇷, and other parts of Europe are setting up new HQ's in major US tech hubs. Looking Ahead: As the U.S. continues to solidify its status as the global tech innovation hub, more and more European startups are eyeing a move across the pond to scale up and compete. But, let’s not overlook the friendly neighbour to the North 🇨🇦. Canada should be seen as a serious contender for any European venture or founder contemplating a move. With its supportive ecosystem and growing tech landscape, Canada presents a compelling alternative and often excellent alignment, that warrants closer consideration. Europe needs to step it up to stay competitive and attractive for growth. It’s time for us to innovate and elevate the broader tech ecosystem, particularly funding appetites, if we want to keep talent and startups thriving right here. Stay tuned for more updates on how global startups are navigating these changes! #StartupMigration #TechStartups #VentureCapital #Innovation #USMarket #BusinessGrowth #GlobalExpansion #P2 #ScalingUp

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"Big news" is thrown around a lot. But let's get real for a moment. Check these out. 📍 European VC Atomico presented two new funds, totalling €1.12 billion. This is its largest-ever fundraising. 📍 Outward VC raised €60.5 million in its first close to help early-stage fintech founders break through. 📍 Paris-based VC Wind has raised €30 million from EIF for its new early-stage Article 9 fund. 📍 Belgium-based VIVES Funds Inter-University Fund (IUF) secured an additional €5 million from the Luxembourg Future Fund 2 (LFF 2), bringing its total funding to €75 million. The fund is based in Belgium but is not limited to just Benelux startups. VIVES IUF is a European science-based early-stage fund. It's impressive. It's strategic. It's exciting. It's a move to fuel innovation. To support the next wave of startups. All under the banner of growth and opportunity. So, #founders, let's call it what it is: You're seeing a surge of support. A big one, hopefully. A surge where: → Ambitions are backed. → Innovations are funded. → Ideas are nurtured. → And where success is mutual. A surge that's not just about money, but about a shared vision. To all startups feeling the excitement of this funding boost: 👉 Your ideas are valid. 👉Your passion, your creativity, your hard work deserve recognition. Not hesitation. ♻️ Excited? Share to spread the optimism. Repost and follow for more. 🎤 Need help pitching to investors, reach out. I'm here to help. 💡 Want to exchange ideas? Find me on Instagram @annacmallon #startups #venturecapital #fundraising

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💡 Read CEE SaaS Index Q1 update 💡

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A brief update on Mits Capital. Today, MITS Capital invested in a US drone company that makes low-cost drones in Ukraine—we are now the largest shareholder. Our strategic planning has led us to select the first five companies for our accelerator program in Kyiv. All of them are in the drone supply chain and do not rely on Chinese components. We are also in due diligence with three innovative drone companies that are ready to scale production--their US analogs cost 3-10x as much per unit. We will start fundraising for our venture fund in a couple of weeks. MITS Capital has been invited to a number of important conferences over the next month: -- the London Ukraine Defense Industry Conference, -- a DIU/DIANA conference -- the Berlin Rebuilding Ukraine conference over the next month. Our timing is propitious. The valuations of startups in Ukraine are about 1/10 of similar companies in the US. The US government still prevents banks from financing vendors of war materiel to the Ukrainian government, nor is US/NATO aid directed directly to Ukrainian companies. Ukraine has export and currency controls. These will probably all change in the coming year, creating incredible investment opportunities in the most innovative defense industry in the free world and the lowest cost one.  And new money for Ukraine from Russian assets is in the works. Meanwhile, Ukraine is putting the new aid package to good use and converting about 1000 Russians to “good” status each day. Slava Ukraini! David Bonfili Creighton Holt Monique Brown Ernest (E.J.) Herold Dr. Hans-Jürgen Schraut Richard Fontaine Paul Scharre Dan Rice 🇺🇸 🇺🇦 Michael D. Brasseur Nadiia Stechyshyna Alan H Merbaum Phillip Karber Sri Chandrasekar Ian Winer Brody Howatt Justin Zeefe George Hoyem Christo Artusio Christopher Harvin Ed Keller Todd Thomson Alexander Fleiss Alexander McWhorter Rudy Iberle Timothy D. Otten Ian Miller Matt Abrams Benjamin Richardson Gleb Chuvpilo, CFA Defense One Defense News

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Let's make Europe the best place for innovators. Please sign this petition to create a pan-european legal entity: http://eu-inc.org We have a once in a generation chance to improve Europe for startups. We got 6 weeks until the new comission sets their work agenda for the years to come. Uniting the European startup ecosystems needs to be part of this agenda! The solution is known, it's just one out of hundreds for politicians. It's our job as industry to show how important it is. First co-signatories are people like Stripe CEO, Niklas Zennström from Atomico, Martin Mignot from Index Ventures, Job van der Voort from Remote, Roxanne VARZA from STATION F, Andreas Klinger and many more coming in the next weeks. Hopefully including you! How you can help: - Sign this - Get your friends to sign - Share this in your whatsapp, slack and discord groups - Get this in front of press, newsletters, and influencers https://eu-inc.org Uniting as one ecosystem is the first step - a pan-european ecosystem is the key here. Let's go! #europe #tech #startups #founders

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📢 HealthTech of the Week 2.0 - start now! 🚀 This second edition is not just a platform to showcase exceptional Polish projects combining technology with medicine and mental health. This year, we're going a step further: we want to not only inspire but also support emerging startups on their path to success. The series will feature both Polish and international companies, and offer a different perspective from funds and investors as well. 💡 "The days of Leonardo da Vinci are over" is not only a quote from one of our experts but also a phrase that perfectly captures the realities of the Med and Health Tech industry. Success in this field requires not just innovative ideas but, above all, teamwork and specialization. In the modern world of health technologies, individual skills are not enough – it's all about the team and collective effort towards a common goal. 🎯 The mission for the 2024/2025 project? To showcase the best success stories, share knowledge, experience, and perspectives from both startups and investors and above all, to support communication and the building of recognizable brands. Why are medical and health startups different from other projects? Check out the opening article of the new series. 👇👇 👉EN: https://lnkd.in/dk8WqX9A 👉PL: https://lnkd.in/dWE8fh6m 🔔 Are you interested in innovative medical technologies? Follow our new articles "HealthTech of the Week" series, every Wednesday! #HealthTechofTheWeek #Startups #Innovation #Medicine #Health #NewTechnologies

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💡 European VC Valuations Show Strong Recovery in Q3 2024! 💡 Optimistic news from the Q3 2024 European VC Valuations Report! 📈 Here are some takeaways: 🔹 Valuation Rebound: Median deal values are outpacing 2023 across all stages. Larger rounds signal growing investor confidence. 🔹 Sector Highlights: Fintech leads the pack with high valuations across stages. SaaS sees exceptional growth, while AI & ML shows resilience in early-stage rounds. 🔹 Investor Dynamics: Nontraditional investors (CVCs, PEs) play a crucial role, participating in larger, higher-valued deals. 🔹 Exit Environment: Improved IPO and buyout valuations mark a recovery, but the challenge of European firms listing outside Europe continues. This signals a promising trajectory for 2025, as the ecosystem adapts to stabilizing interest rates and slowing inflation. 🌍 https://lnkd.in/dBmx8Gtf #VCInsights #EuropeanStartups #InvestmentOpportunities #Innovation

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finmid raises $24.7M to help SMBs access loans through platforms like Wolt. Excited to see another German Startup make great strides in the B2B space. This move boosts access to capital for small and medium-sized businesses. Key takeaways: -finmid raised $24.7M in Series A funding -They offer financing through platforms like Wolt -The funding will support hiring and expansion in Europe -finmid's API leverages sales data for pre-approved offers -Both finmid and platforms earn a share of each transaction -finmid plans to enter the Italian market without a local office -Wolt uses finmid tech for cash advances to restaurant partners Kudos to the entire finmid team for building an incredible product. In my opinion, finmid's approach to embedding finance into existing platforms like Wolt is a game-changer for SMBs. By leveraging transaction data, they can offer tailored financial solutions, which enhances accessibility and efficiency. This funding round will undoubtedly help them scale and bring these benefits to more businesses across Europe. P.S. Are you following finmid? Some 'Finmidders' you definitely want to follow are: Max Schertel - Co-Founder Alexander Talkanitsa - Co-Founder Linda Vildava - Chief of Staff Click below to read the full article ⬇

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🔶 End of the venture capital winter? 🔶 Around mid 2022 the VC world took a turn for the worse: winter was coming and the availability to raise fresh capital from new investors fell by a factor of ~10x. Today Crunchbase has released new figures on global AI-Funding and it looks like the ice is beginning to thaw: ignoring outliers funding is on the rise again. But investors have become more selective: more money is flowing to fewer deals. As always your thoughts and comments are highly welcome.

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🚀 Latest Funding and M&A News in the European Startup Scene! The 🇪🇺 European startup ecosystem continues to thrive with exciting funding rounds and investments across various sectors. Here’s a quick roundup of the some significant deals from the past 10 days. If I've missed some notable ones... add them in the comments 👍 Doccla, "Europe's Virtual Hospital" Raises £35M for Expansion: #Healthtech company #Doccla secured a £35 million Series B funding round, led by Lakestar and joined by General Catalyst, Bertelsmann Investments, Elaia, Speedinvest and Giant Ventures. This investment will accelerate its growth and enhance its offerings in digital health. Skarper Secures £4.5M to Electrify Bicycles: Skarper, a British startup, raised £4.5 million to scale its technology that converts regular bicycles into electric ones. Supported by six-time Olympic champion Sir Chris Hoy, led by Adjuvo with participation from Resillion Chairman Yaron Kottler, Starry Group, and Mobilitech Capital. This funding will drive product development and market reach. #Iceland based, Treble Technologies Raises €11M for #SoundTech: Treble, a company specialising in sound simulation and synthetic audio, raised €11 million to scale its platform. This investment highlights the growing interest in innovative audio tech solutions. The round was led by KOMPAS VC with participation from Frumtak Ventures, the European Investment Bank (EIB), Omega Venture Partners, @St. Gobain and L-Acoustics. Steerlab Secures €1.7M for AI Sales #Automation: Paris-based AI startup #Steerlab raised €1.7 million in a pre-seed round to automate sales workflows, showcasing the strength and potential of AI-driven solutions in the European market. The round was led by Dreamcraft Ventures with participation from HEARTFELT_, @Lumière AI Ventures, and STATION F Leo Capital Launches €25M #Nordic Fund: Singapore's Leo Capital has launched a €25 million fund aimed at Nordic B2B startups, reflecting the increasing cross-border investment activity in the #Europeantech ecosystem. Tiptapp goes for €1M debt option from Gilion for Recycling Innovation: Swedish startup #Tiptapp, focused on making recycling easier will use the capital to expand its services and further its environmental impact. These funding activities underscore the diverse and dynamic nature of Europe’s startup scene, particularly in healthtech, AI, sustainability, and niche technology sectors. For startups looking to scale, these trends highlight the importance of innovative solutions and strategic growth. #StartupFunding #VentureCapital #AI #HealthTech #Sustainability #B2B #ScaleUps #P2 #Singapore

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Q3 2024 is in the books and venture funding in Europe is down to its lowest level since Q3 2023 according to Crunchbase. Overall funding is down 39% to $10B in Q3 2024, from $16.6B a year ago. 🇪🇺 By country: - Germany’s funding is the only one that grew reaching $2.4B, a 33% increase - UK, a leader in startup fundraising, saw its funding plunge 43% to $3.2B in Q3 - France slowed to $1.4B. 𖭦 By stage: - Late-stage funding in Europe was $4.2B, down 57% across 71 rounds in Q3 - Early-stage funding was $4.5B, down by 12% across 291 deals - Seed and angel investment was $1.5B, down 17% across 818 deals In comparison, Israeli startups raised $2.33 billion in 99 rounds in Q3 2024, a 32% INCREASE compared to the first 9 months of 2023 (pre-war). It's not all rosey, but a testament that Israeli startups deliver #NOMATTERWHAT. Links to relevant reports in the first comment 👇

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