Tahir Farooqui

"Funding Collapse sends investment in start-ups to six year low" The Times today covering the shocking stats that VenturePath uncovered, with our partner Beauhurst. Great quotes from supporters Michael Moore CEO, BVCA and Julian David CEO, techUK. * UK VC funding at Series A is -44% from last year, and worsening * Q3 24 is down a staggering 57% from Q2, itself down from Q1 * 9 in 10 seed funded startups cannot access Series A VC funding, the next 'rung on the funding ladder' * Just 32 future scaleup companies across the whole of the UK were able to access their first VC funding round in Q3...a 6 year low * Half a billion less capital is going in to UK scaleups at Series A, than just 2 years ago! As the UK scaleup funding gap widens, we are losing ground against other countries, at both startup stage (a position the UK worked hard to achieve, since 2011), and for scaleup support. OECD data: 13th in the world for scaleup support, and that's before Series A funding access dried up. I get that its confusing. Another report (BBB, Nations & Regions) released this week spoke of positive trends in private investment, stating "The data for Q2 2024 shows that investment value has continued to grow". Great, I love to see optimistic data. But under analysis that bundles venture with private equity (later stage), where a few megadeals skew the numbers. Otherwise the exact opposite is true. Our independent research here, for the UK ScaleUp Investment Mission, is laser beam focussed on Series A. The funding round where companies move from the c.1m startups launched each year, through the 2,179 that access seed funding, into the rarefied category of being recognised as future scaleups, attracting Series A funding (£2-10m). The UK venture landscape is currently funding just 248 pa of these companies, and declining. We've been sharing this urgent call for support with the new Government since the day after the election. I've personally met with several Ministers, and spoke to all the relevant Government departments. I will shamelessly repeat loudly what is at stake. UK scaleup funding at Series A has nearly halved in a year, and continues to decline steeply, more than halving in the last quarter. VenturePath developed The UK ScaleUp Investment Mission to convene the scaleup support ecosystem and £7bn of funders to help address this problem, to improve nationwide access to VC investment, and create more venture-backed successes. We have clear support, clear recommendations to reverse this decline in UK scaleup investment, and have made a clear ask of Government for participation in this, to ensure immediate action is taken to create the conditions for success for UK scaleups, ensuring the focus on growth isn't undermined by lack of capital, or equitable access to it. Government decision makers, we'd love your interest, to progress to action. HM Treasury: Rt Hon Rachel Reeves Spencer Livermore James Murray & CC Poppy Gustafsson (welcome to the debate).

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How do you drive value when fundraising? In the absence of a clear guide, many founders and their boards will chart a steady and linear progression in value, supported by revenue or profit growth, starting at the implied valuation of the initial investment and heading towards a target valuation with valuation reference points to validate this approach. In determining the target value it is worth remembering that business values for scaling growing businesses are typically derived by considering three different methodologies - find out more in this article. https://lnkd.in/e4CH-HH7 #fundraising #valuecreation #investments

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Misalignment on exit expectations can lead to value-destroying friction between CEOs, boards, and investors. Regular exit talks - at least once a year -help to: •  clarify strategic objectives and align exit timing •  assess the business’s real value and define a compromise timeline •  review investment agreements and explore alternative exit strategies Regular and proactive exit talks foster trust, prevent wrong decisions, and maximize value for all stakeholders. Practical considerations for such exit talks are included in this article.  #ExitStrategy #ExitReadiness #BoardLeadership #CorporateGovernance https://lnkd.in/e-jsaJA7

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The UK is setting a bold precedent in the Venture Capital (VC) and Private Equity (PE) landscape, redefining access to capital and risk allocation in private markets. The Mansion House Compact represents a monumental change. By unlocking £40 billion of capital into private markets by 2030, this initiative is not just a financial milestone—it's a signal that the UK remains at the forefront of private market investments and is prepared to take calculated risks, including the allocation of pension funds to unlisted assets. This move will push pension funds to view private markets as a mature asset class, embracing a patient capital approach that aligns with long-term growth and innovation. 🌱 Credit where it's due: Jeremy Hunt MP played a pivotal role in making this happen, solidifying the UK's status as a prime destination for PE and VC investments. 🏆 #VentureCapital #PrivateEquity #Investment #UKFinance #Innovation #PensionFunds #CapitalMarkets #Leadership #JeremyHunt

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Throughout the year, Buyouts gathers intel about the most talked about emerging funds in the market from our networks of LPs and fundraisers. Emerging managers, including first-timers, remain of interest even in the tough fundraising markets. In a Probitas Partners survey last year, 75% of 69 institutional investor respondents said they were interested in exploring new firm spin-outs. Only 2% of respondents had no interest in first-time funds. The updated list includes around 45 names of funds in market that have gotten the attention of investors, including Otro Capital, Iron Path Capital, 5th Line Capital Century House Partners, Dynasty Equity, Citation Capital, Broad Sky Partners, Allied Industrial Partners, and Highland Rim Capital. #Venturecapitalists #Emergingfunds #EmergingManagers #Limitedpartners #Generalpartners #Investments #fundraising #Newfunds #Buyouts #LPs #GPs #VCs #Funds

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It's been a busy week for emerging managers. As we start paying more attention to emerging funds in VC, I'm making it my mission to keep track. Want a more detailed analysis? Click on the link at the bottom of the post. I'll be posting every week. Did I miss your fund launch or close? Comment FEATURE in the comment box and send me a invitation request. 🚀 🇫🇷 & 🇬🇧 Noteus Partners Fund I- launching Former Eurazeo partners Yann du Rusquec and Nathalie Kornoff Brüls have announced they are launching Noteus Partners a EUR 600M pan-European Tech Growth fund. 🚀🇫🇷 Deepbright Ventures Fund I (aka Hello Tomorrow)- launching  The France-founded global #deeptech ecosystem is preparing to launch it’s own venture fund. The fund will focus on early-stage deeptech startups, scouting from it’s own deep network of 5,000+ startups 🎉 🇭🇺 Impact Ventures Fund III- closed European Investment Fund (EIF) and Hungary’s state-backed National Capital Holding (NCH) invested EUR 40M into Impact Fund III. This latest fund is 10x in size from it’s previous 2018 vintage (EUR 4M). 🎉🇪🇸 Acurio Ventures Fund III- closed Bilbao-based Acurio Ventures has not only rebranded from All Iron Ventures, but just closed a EUR 150M continuation fund. The fund will invest across 50 follow-on deals in EU-based seed and Series A tech startups, taking between 3%-10% stakes. 🔊🇪🇪 Estonia Defense Fund- extended In May 2024, the government of Estonia announced a EUR 50 million fund that will invest in defense-related or dual-use technologies, managed by SmartCap. It announced yesterday it would double the fund size to EUR 100M. 🎉 🇺🇸 Cerulean Ventures Fund I- closed This USD 10M climate-focused micro-fund founded by Jahed Momand and Matthew Stotts 🌐 has just announced it’s final close. The fund will invest in approximately 40 pre-seed software startups devoted to reducing the human impact on climate change. 🎉 🇺🇸 Avid Ventures Fund II- closed Avid Ventures led by Addie Lerner, a former Principal at General Catalyst has just announced a USD 87M close for it’s second Fund.  Fund II has already completed 5 investments and will back Seed through Series A software and fintech plays, with check sizes starting from USD 500K to USD 2M- with double-down follow-on for select Series B portfolio companies. #venturecapital #emergingmanagers #investmentmanagent #technology Adam Sah Dan Engel Kim Pochon Bob Mason Mohammed AhmedAbduljabar Totonji Myrto Lalacos VC Lab

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British DC pension funds have the opportunity to strengthen returns for pensioners and the UK economy by investing in venture capital. Finance Minister Rachel Reeves has called for a “new economy,” driven by green growth and innovation, and the British Business Bank’s funds and programmes are already supporting this shift by backing emerging companies tackling climate, education and health challenges. But given Britain’s low productivity growth and declining health and physical infrastructure there’s an urgent need for more domestic capital to fuel high-growth UK companies. Yet, incredibly, few British pensions invest in this form of productive capital. According to a recent survey from the British Private Equity & Venture Capital Association (BVCA), a striking 86% of investment in Britain’s innovative firms comes from foreign investors, including many pension funds. Why aren’t British funds benefiting from the financial returns and social impact of UK innovation? With world-class universities, strong research powered by non-dilutive Government funding, and a unique pipeline of talent, the UK has all the ingredients for success, but we need British capital to help scale these breakthroughs and build a resilient economy. With NatWest Cushon, one of Britain’s largest pension master trusts, and Mobius Life, who administer over 700 pensions, we’re working to enable today’s savers to fuel positive change—while staying close to home. Mobius Life’s innovative structures will allow pensioners making tax-free regular contributions to include venture in their default portfolios for the first time. A true democratisation of venture.   Future Planet Capital has proven that with a disciplined, impact-led, profit-first approach, UK pensions can achieve competitive returns while directly supporting society’s most pressing needs. By embracing venture capital, British pensions not only secure future returns but also back Rachel Reeves’s vision for an innovative Britain. We should be the primary investors in our own future, ensuring that the rewards of a thriving UK innovation ecosystem benefit those who have invested here at home. UK Innovation & Science Seed Fund | Midven Rt Hon Rachel Reeves, HM Treasury, Louis Taylor, Matthew Hurn OBE Michael Moore, British Business Bank, NatWest Cushon, Mobius, Timpson Group, British Private Equity & Venture Capital Association (BVCA) Veronica Humble Julius Pursaill Steve Groves Ben Pollard Hugh Cutler Joshun Sandhu, CFA Nat Wei Ruston Smith MBA, FPMI, FCMI, FRSA Richard Dilworth Richard Harpin Paul Abberley David Knox Jerome Engel Priya Guha MBE Jim Wilkinson Patrick S. Chung Richard J. Tomlinson Andrew Mackintosh Nick Bassett Tim Bestwick Dominic Perks #pensionfund #innovation #ukgovernment #ukeconomy

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📝 Zero Carbon Capital's Alex has written up some of our thoughts about #advisors for early stage start-ups - where do you find them, how to get the most out of them and how you should compensate them. We do see start-ups giving shiny-sounding advisors big chunks of equity and then not getting much out of it, so this is definitely something to navigate with care. Read more: https://lnkd.in/eXf2QR3z

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💡 The Real Challenge Begins After Raising Investment: With the Labour Party winning the UK general election, the focus on leadership and strategic decision-making is paramount, not just in politics but in business too. In the final episode with Edward from West Hill Capital, we reflect on the true challenge for entrepreneurs: transitioning from raising capital to effectively delivering results. We explore the importance of strategic allocation and the potential risks if funds are not managed wisely. Thank you for joining us on this journey. Let's continue to drive innovation and growth together. If you're looking to raise investment or need support within your business, let's connect: https://lnkd.in/e8Wf2TTa #Entrepreneurship #InvestmentStrategy #StartupSuccess #DigitalHealth #BusinessGrowth #Leadership #ExecutionMatters #WestHillCapital #InvestorInsights

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🔔Great to be on the panel with The Economist discussing ''A Year of Change'' Thanks to The Economist for having me on the panel with Ana Nicholls (Economist Intelligence: EIU), Simon Bashorun (Investec Wealth & Investment UK) & Anthony Wells (YouGov) where we delved into how potential government shifts could impact growth, taxes, and investment opportunities.  🗒Discussion points included;  - What challenges investors face in Britain’s tax environment. - How would a change in government be likely to affect the economic landscape for individuals, from growth to taxes?  - What tax-saving opportunities should individual #investors look out for? etc. 🔗Link to the panel discussion https://lnkd.in/dZTZm9Rc #Economy #TaxPolicy #Investment #Britain2024

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The financial advice industry is evolving rapidly, with new trends like AI-driven personalization, transparent pricing, and the rise of "finfluencers" reshaping how advice is delivered. This shift forces financial institutions to adapt quickly, offering more accessible and diverse services to meet changing consumer expectations. As these trends continue, the future of financial advice will likely be more inclusive, tech-driven, and tailored to a broader range of investors. #Fintech

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Add to that , change the perspective from raising to genuine relationship building for long term success. Managing the expectations of the Managers is crucial to a successful fundraise , by the intermediaries.

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Global gender parity on Managing Director Level in Private Equity investing roles may take 62 years to achieve....🤯 The pipeline is there BUT....: globally, men in investing roles are about 50% more likely, on average, to be promoted than their female colleagues, a trend that persists across all levels in investing roles...😟 Women in PE cannot just sit and wait for the situation to improve - we need to act now! The opportunity is there: 🎤 Speak up, deliver, and don't be shy to talk about your achievements and successes 🤚 Actively ask for that (long overdue) promotion and be persistent (!) - support and coach other women and pave the way for them 💰 Negotiate your salary (everybody else does...) 🗣️ Be visible - speak at conferences and take a seat on panels - you have a lot to say 👩 Don't only be involved in womens' networks - get out of your comfort zone and actively involve yourselves in networks that are (still) predominantly male. Take a seat at these tables and involve yourselves in these discussions. Empower other women to do the same and facilitate access for them 🤝 Look for male allies and mentors (they are there - we all need to work together to drive change) 🚀 Diverse-owned PE firms outperform benchmarks - build your own diverse team and found your own firm! Be a catalyst for change! Sources: McKinsey & Company: The state of diversity in global private markets 2023 Examining the Returns 2023 - Further Evidence of Diverse-Owned Private Equity Firm Outperformance (National Association of Investment Companies, NAIC)

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A great insight for those interested in learning more about our secondaries activities and venture secondaries in Europe generally.

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Great insights from Adam Agius on what to consider when raising debt for a search fund buyout. Most relevant to the UK market, but a worthwhile read for all searchers. There's more debt capital keen to support search acquisitions than ever before, but approaching it naively can be very costly...

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The British Private Equity & Venture Capital Association (BVCA) Accelerate conference 21 - 22 May is ground zero for the UK and Europe’s smartest investors and founders. With #VentureCapital money harder to find than Taylor Swift concert tickets, #venturedebt is having a moment! My panel on Day 2 moderated by Leon de Bono is a can’t-miss. We’ll unpack how founders can sensibly leverage debt to extend their runway and ease the path to an exit or next round. The seasoned investors joining me (Stephen Fahy & Stephanie Heller (Galantine) have deployed serious capital into some of Europe's biggest scale-ups. Whether you're a founder preparing to raise your next round or an investor, you need this VC alternative in your mental model. See you there. www.bvca.co.uk/accelerate #Fundraising #Venturedebt #venturecapital #acelerate2024 Fuse Capital BAFTA 195 Piccadilly

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Value creation is based on developing and applying value drivers (sometimes called ‘value builders’) that help articulate commercial development and also support higher transaction values. By not drawing on the experience of best practices successfully applied by other businesses, founders can risk leaving money on the table. Find out more about value creation in our blog. https://lnkd.in/exBvk87n #sellyourbusiness #value #money

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Too often people assume that seeking advice or guidance is only for the two extremes: for the very wealthy or for those with financial problems. This misperception needs to change.   Over the past few months, we at SJP have been sharing insights from our Real-Life Advice Report, our largest consumer survey to date exploring the impact of financial advice on people’s lives, and our attitudes to receiving financial advice. Through real life stories and new insights, we’ve uncovered the pivotal role that financial advice plays in improving the nation’s financial wellbeing.    Today, I’m sharing the final chapter with you. Chapter 6 provides insights about what the future of advice could look like, and how we as an industry can support future generations to make better financial decisions. The adviser and client stories we’ve shared in this chapter and the rest of the report have shown both the remarkable and entirely typical ways that financial advice can positively impact lives.   So many more people’s lives and futures could be improved simply by getting access to the support they need.   It’s critical that as an industry, we continue to raise further awareness and break down the barriers preventing people from accessing the advice or guidance that could help them. So, today, I’m resharing my calls to action for our industry:   1.  We need to attract and train more financial advisers to the profession 2.  We must find ways to fill the gap between guidance and full holistic advice, to make support more widely accessible 3.  We need a coordinated campaign across the profession to change perceptions around financial advice   The full report and my concluding thoughts can be found on our website:  https://lnkd.in/e8kcsfC3 #RealLifeAdvice

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