Chris Gonzales’ Post

We've raised $1.3B Balderton Capital in new funds across early and growth to continue supporting UK & European technology founders. This is the 8th(!) fundraise I've been part of and have shared some thoughts on why venture matters, how fundraising in Europe has changed and how we differentiate ourselves through conviction here: https://lnkd.in/e2XRcagq

Connect Ventures Fund I Raised at €16M (~£13.9M) Sold 97% for £18.6M Valuing the fund at £19.18M Profit before carry: £5.28M. GPs get £1.06M in carry (20%) Leaving LPs with £18.12M LPs' multiple on invested capital (MOIC) is 1.30x 2.23% ARR Government bonds offered 1-4% So could say return similar to Gove bonds but with "chance" of much higher but also "chance" of much worse. Modelling means quite decent as downside risk is 1x loss but upside could be unlimited.

Yesterday, had the chance to attend the State of Union of VC markets hosted by Allocate Samir Kaji. If you missed attending, here are some notes: SaaS: 1.     Public SaaS multiples were 24x in 2021, and have returned to more normalized levels (6.6x now) 2.     Private SaaS multiples ballooned to 100x in 2021 and are normalizing now (SaaS multiples were 20x in 2017) Unicorns: “60% are “ZIRPicorns” – they raised $ when the interest rates were almost zero and the market was bonkers - Alieen Lee – Cowboy Ventures 60% of the deals in 2021 were funded by just four investors. -         Coatue, Tiger Global, Soft Bank, Insight Partners VC fundraises from LPs: 1.     Fundraising for US VC funds was down 60% YoY from 2022 to 2033 2.     Who hit the most – Emerging Fund managers 3.     First-time fund managers are having a really hard time raising funds 4.     Having said that, capital is flocking to established and bigger funds     - The 5 largest US VC funds have a 45% share of LP capital. 5.     90% of funds are struggling to raise capital and the 10% are oversubscribed within 6 months Companies: 1.     Down rounds have become the norm (Better than shutdowns) a.     At Series D – 25% b.     Series C – 17% c.     Series B, A – 10% SPACs are dead (613 SPACs in 2021 Vs 22 in 2023) Liquidity 1.     M&A has plummeted. 2.     Since the time to raise funds has shrunk from 3 years to 1.5 years during peak funding period, LP calls happened very quickly 3.     Given there are no exits, LPs are sitting on the sidelines waiting for the unlock of liquidity. 4.     Some trends shaping up – Strip sales, GP led Secondaries, LP led Secondaries, Continuation funds In a nutshell, Venture is a cyclical asset class and we are at that inflection point where the next 18-24 months will determine the direction of this asset class. Special thanks to the Allocate team for such an insightful discussion (as always!) #venturecapital #fundraising #emergingmanagers

It's the worst year for fundraising since 2016, due to a lack of exit opportunities. I think we've all seen this coming, but these numbers are substantial. Keep bootstrapping out there, folks! "Globally, venture firms raised $30.4bn from university endowments, foundations and other institutional investors in the first three months of this year, down from $67bn in 2023 and well below the peak year of 2022 when VCs raised $173bn..." “Unless we see meaningful improvements from the exit market we’re expecting fundraising difficulties to linger and that will put downward pressure on dealmaking,” https://lnkd.in/eGmf2GPg

After 2+ years of steady declines, the Series C market is heating up! 📈 Deal count up 14% 💰 Total capital raised increased by 130% 🏷️ Median valuation nearing $200M Check out the latest trends and data to stay ahead in the venture capital game! #VentureCapital #SeriesC #StartupFunding #InvestmentTrends

Many early-stage founders ask me if they should raise money. Here's my perspective: Most businesses don't need to. Raising institutional capital means sacrificing short-term liquidity for a potential long-term payout. It's a trade-off that shouldn't be taken lightly. For some startups, like our fintech Parker, raising venture capital is a necessity and a competitive advantage. But that's not the case for every business. If you're a first-time founder, focus on: → Building a great product → Finding product-market fit → Generating revenue Remember, raising money isn't the goal itself. The goal is to build a successful business that generates revenue.

VC world can be cruel and unforgiving. With LPs more and more pushing for distribution and liquidity, fund managers in the mid-tenure of their fund with zero DPI and TVPI around 1.0 would have much more difficulty to raise new fund. The ability to fundraise is one of the crucial indications and validation of the job for VCs. Key highlights from the article below: Thirteen percent of venture General Partners (GPs) no longer plan to raise another fund due to LP pullback. This rate has doubled since H1 2023 when only 6% of GPs had no plans for another fund. Nearly 44% of venture firms surveyed in mid-2023 had previously postponed their fundraising plans due to concerns about overexposure to the asset class. Many emerging managers entered venture capital in 2019 or 2020 when the LP market supported more funds. However, slow exits in the first half of 2024 have led to challenges in raising second funds without significant cash distributions to LPs. Some venture GPs are now actively participating in the secondaries market to demonstrate returns. Despite the challenges, GPs who secured fresh capital remain optimistic. They expect the 2023 and 2024 vintages to be the strongest return years since 2019. 🚀📈 #VC #VentureCapital #Fundraising #LPs #EmergingManagers #TechInvestment #MarketTrends #CountdownCapital #IndustryInsights #JetVentures #JetInvestment

Exploring the rise in LP defaults, 3+ Ventures steps in, raising $300 million to purchase distressed stakes and inject liquidity into the venture ecosystem. #VentureCapital #LiquidityCrisis #InnovationStrategy

The recent investment in TestResults by Progile marked the end of Spicehaus Partner’s Fund I, bringing the VC into its next chapter. With a fund size of CHF 31 million in Fund I, Spicehaus invested in 20 technology companies. Thanks to the companies’ positive growth trajectory, Spicehaus Partners' first fund has already achieved a net return of +28%. The Spicehaus Swiss Venture Fund II, with a target size of CHF 60 million, will continue to invest in Swiss technology companies that have the potential to scale internationally. Besides the potential and ambition for international growth, the Fund focuses on fast-growing technology companies in the B2B software space that have launched their products in the market and acquired their first paying customers. Aiming for 5-10 annual investments, Fund II targets a portfolio of around 25 companies. Dr. Teddy Amberg Daniel Andres Spicehaus Partners AG #venturecapital #fundraising https://lnkd.in/erPJkhXk

Rohit Krishna wanted nothing but to break into the PE/VC world, after he qualified as a CA in 2011. Unfortunately, many funds turned him down for being too young. Fast forward to 2017 – he co-launched WEH Ventures with a Fund 1 of ₹20 Crores. It wasn't exactly easy to convince the investors. By 2020, they raised a Fund 2 at ₹100 Crores, with Rohit stepping into the role of General Partner. Want to build a career in a VC or start your own fund? Here is his advice. #venturecapital #finance #charteredaccountant