Andreas Munk Holm’s Post

Europe's VC scene is feeling the aftershocks of the tech reset. Here's a breakdown of the data: Funding decline. Total capital raised in European VC funds dropped a significant 39% in 2023 compared to 2022, reaching €17.2 billion. The number of funds itself also saw a steep decline of 51.5%. LPs & GPs hit the brakes. They are taking a more cautious approach. The "spray and pray" days of exuberant investment are over. Focus on sustainability. Investors are prioritizing companies with strong fundamentals and sustainable business models, not just the next hot trend. The VC landscape is recalibrating. Learn how to navigate the effects of the #TechReset. Get insights from The State of European Fundraising Report. https://buff.ly/4boUlfm Delivered to you by EUVC | Isomer Capital | Floww. #EUVC #fundraising #venturecapital #industryreport

The European VC fundraising scene is showing a clear trend: experience matters. Let's unpack some data on this from The State of European Fundraising Report. 1/ Why track record matters. In a cautious market, LPs (investors) are prioritizing established funds with a proven history of success. Experienced firms captured 54.5% of the capital raised in 2023. 2/ New opportunities for LPs. This market shift presents a golden opportunity for LPs to build relationships with top-tier VC firms. Firms they might not have accessed before. 3/ Focus on creating value. Investors are seeking firms that prioritize building real value, not just hype. This is a great long-term trend for the industry. If you are en emerging fund manager, the time to build a strong reputation and track record is now. Focus on building a compelling value proposition and demonstrating a clear path to success to attract investors. Learn how to navigate the effects of the #TechReset. Get insights from The State of European Fundraising Report. ➡️ buff.ly/4aYglgi Delivered to you by EUVC | Isomer Capital | Floww. #EUVC #fundraising #venturecapital #industryreport

While private market LPs are holding out from the market, public sector LPs are more important than ever. Public investors like EIF and KFW are stepping up to support Europe's VC landscape, especially critical during economic uncertainties. We invited David Dana of EIF and Christian Roehle of KFW, as well as Joe Schorge of Isomer Capital and Michael Sidgmore of Broadhaven Venture to have a discussion for The State of European Fundraising Report. Here's why we think their support matters for the ecosystem. Brings stability in uncertain times. Public investors provide crucial support, ensuring promising VC funds get a foothold even in downturns. It's shifting our focus. Their investments are increasingly targeting sustainability, climate tech, and disruptive innovation (deep tech, AI, etc.). It creates a lifeline for emerging funds. Public involvement is often vital for not just the first closing of funds but for their very existence. Learn how to navigate the effects of the #TechReset. Get insights from The State of European Fundraising Report. https://buff.ly/3KJ23W3 Delivered to you by EUVC | Isomer Capital | Floww. #EUVC #fundraising #venturecapital #industryreport

"I think clusters can actually start from their own ecosystems and build relationships when it also comes to financial institutions and banks, and try to support, re-educate and open their mind about creating new instruments that can help the smaller players who are not fit for a VC", - Stamatiki Kritas, Manager Director, Council of European BioRegions - CEBR. Missed yesterday's #EUClustersTalks "Private Capital, Big Impact"? Here are a couple of insights on Europe's cluster financing landscape: 💶The role of private capital is fuelling sustainable growth and long-term success among clusters 📈Europe's venture capital ecosystem is rapidly growing and impacting innovation 🏙Only 10 cities are responsible for 69% of all venture capital flows 🎦Interested in learning more? Head to the #ECCP YouTube channel to watch the full recording: https://lnkd.in/ehHGEEJr

Life sciences venture capital funds are outperforming the market in realised returns, shows our #VCReturns24 report published today 📈 Key findings: 🌱 Green tech investments are gaining momentum, proving more commercially viable 🇬🇧 UK VC returns were above the US and the rest of Europe for older vintages, and are in line with or slightly below for more recent vintages 📉 While UK VC returns have slightly declined in 2023/24, the outlook is positive, with fund managers optimistic about improving exit opportunities.   📖 Get the detailed findings and industry trends in our full report: https://lnkd.in/dW5qFw8i #VentureCapital #InvestmentTrends #VCReturns24

In 2023, governments were the biggest source of VC funds, according to a recent report by Invest Europe. Amy from Sifted raised an interesting point about this. While VC raised less capital recently, public funds like European Investment Fund (EIF), Bpifrance, British Business Bank, or KfW Capital stepped in 🏦 💰 Is this a problem? Yes and no. 🙅♂️ It's a problem when public funds substitute private activities. They've been crucial for building a competitive European VC landscape, but once that's achieved, job well done. There's no need to support areas already saturated with venture capital. 👍 However, it's not a problem as long as there's a public interest. Public funds can act as catalysts for new or underserved themes, such as regions outside the big tech hubs or new sectors. They also play a role in increasing diversity in the ecosystem.

The European VC fundraising scene is showing a clear trend. Experience matters. Let's unpack some data on this! From The State of European Fundraising Report. 1/ Why track record matters. In a cautious market, LPs (investors) are prioritizing established funds with a proven history of success. Experienced firms captured 54.5% of the capital raised in 2023. 2/ New opportunities for LPs. This market shift presents a golden opportunity for LPs to build relationships with top-tier VC firms. Firms they might not have accessed before. 3/ Focus on creating value. Investors are seeking firms that prioritize building real value, not just hype. This is a great long-term trend for the industry. If you are an emerging fund manager, the time to build a strong reputation and track record is now. Focus on building a compelling value proposition and demonstrating a clear path to success to attract investors. Learn how to navigate the effects of the #TechReset. Get insights from The State of European Fundraising Report. https://buff.ly/4boUlfm Delivered to you by EUVC | Isomer Capital | Floww.  #EUVC #fundraising #venturecapital #industryreport

Our VC returns report out today, we've pulled together the latest data from a wide range of VC funds in the UK, US and Europe #venturecapital #VCreturns

#fundingalert 💼Company: bValue Fund 💰Funding: €90Million ⚡Round: Growth Funding 👥Investors: BVG Growth equity investment firm bValue Fund specialises in working with IT and tech-enabled companies in Central and Eastern Europe. The Fund consistently aligns its interests with exceptional founders by investing in two separate strategies: seed and growth. Financial organisations, such as the Polish Development Fund and the European Investment Fund, provide almost half of the funds raised during this phase. Private investors, notably Polish and foreign family offices, provided the remaining funds. Maciek Balsewicz Read more - https://lnkd.in/gNV5bAci To share your startup story write us on - [email protected] #bValue #EasternEurope #PolishDevelopmentFund #funding #fundingnews #startupnews #news #startuprise

A report from Invest Europe which was shared by Sifted shows that European Venture Capital has been outperforming US Venture Capital over 10 and 15 year horizons 📈 Data gathered from Cambridge Associates in the Invest Europe report shows: 🎯European VC yielded 20.77% net IRR (internal rate of return) over 10 years, compared to North American VC’s 18.18%. Over a 15 year period too, European VC has better returns: 16.57% IRR to North American VC’s 16.09% IRR. ❌ The TVPI (total value to paid-in capital) of European VC funds was greater for 'established' funds (on their fifth generation or later) at 2.71 versus 'new' funds (first or second time funds) which sat at 1.65. Read the full article here 🔽 https://bit.ly/4eSFw72 #InvestEurope #Sifted #VentureCapital