David Cruz e Silva 🎙’s Post

Palo Oslo & The European NASDAQ: Strategic Transformation Will Win. Phill Robinson's article in Sifted this morning discussing a European NASDAQ is more than a call for an economic initiative; it's a call for a cultural and strategic shift. This isn’t just about growth; it's about positioning Europe at the forefront of the next digital era. Groundbreaking Tech = Geopolitical Strength. Although there are some significant hurdles to navigate (lack of a single digital market, regulations and a lack of R&D investment in Europe when compared to US - to name a few major/minor challenges). If not now, When? Some thought below: 1. Innovation-First Culture: We need to position Europe as the place to build the future, not as a sandbox/launchpad to the US. What matters most isn't just the local necessity for tech advancements, but the atmosphere and environment it will create. 2. Palo Alto - What about Palo Oslo? We’re missing this kind of rapidly expanding tech hub that has driven the sharp increase in U.S. stock values. Apologies for the dire semi-pun. 3. Global Leader: With its own tech hub, Europe could lead on critical issues like digital privacy, sustainable technology, and ethical artificial intelligence - a chance to set global standards. https://lnkd.in/dD42F3Uy #Scaleups #Startups #Tech

The pulse of European VC in the last week 📈 Here’s what’s making waves.👇 🦄 Europe's Unicorn Drought Ends: DataSnipper's leap to unicorn status marks a cautious optimism for Europe's VC landscape, promising a rebound from 2023's investment slump. 🌍 Brexit Breakthrough: The UK's regulatory olive branch to the European VC scene eases past Brexit tensions, setting a new precedent for cross-border investments. UK's OFR aligns EEA regulations, fostering smoother capital flows. 🏦 Banking Blues: Europe's financial sector lags, with the total market cap of European banks halved since 2007, contrasting with US banks' growth. Regulatory headwinds and economic crises erode the foundation for European market outperformance. 🌱 Climate Tech Cash-In: Carbon & emissions tech startups in Europe reel in $2.2 billion in Q4 2023. A clear signal that the green revolution is ripe for investment, despite a global slowdown in VC frenzy. 🧬 Biotech IPO Buzz: As tech IPOs quiet down, biotech surges forward, hinting at a sector-specific bull market. CG Oncology and Arrivent Biopharma's successful raises spotlight biotech's resilient appeal amidst tech's IPO drought. 💸 VC Funding Freeze: A stark 42% global drop in VC funding in 2023, with Europe mirroring this trend. Yet, AI & ML investments remain buoyant, signaling a strategic pivot towards tech innovation. 🛡️ Defense Tech's Strategic Shift: Increased interest in European defense tech post-Ukraine invasion opens new venture avenues. The sector's blend of innovation and necessity offers lucrative, yet complex, investment opportunities. 🎨 Fashion Forward with AI: The fashion industry's embrace of generative AI illustrates a cross-sectoral tech adoption, marrying creativity with computational power. 🧠 Neuralink's Neuro-Novelty: The spotlight on brain-computer interfaces, led by Neuralink's advancements, energizes the bio-tech investment sphere, blending medical marvels with venture capital interest. 📉 LSE's Listing Lament: A 25% decrease in companies on the LSE over a decade underscores the UK's challenge in maintaining its financial market's attractiveness amidst global competition. Continue reading in the comments section. 🔽 #venturecapital #artificialinteligence #privateequity

May 1 2024 - 10 Notable Articles To Read Article: How GE Created $200 Billion in Market Value by Breaking Into Pieces Takeaway: GE has created $100B in value by repaying debt, effectively transferring value from debt holders to shareholders. Source: Barron's Link: https://lnkd.in/dWhed5Wx Article: Why One Analyst Says NVIDIA Stock Is a ‘No Brainer’ Takeaway: The company's increasing budgets for capital expenditures on AI infrastructure are a cause for optimism. Source: Barrons Link: https://lnkd.in/du3r5S6s Article: Bezos Seeks to Revamp Meat Alternatives in Climate Push Takeaway: The Bezos Earth Fund is allocating $60 million to invest in alternative proteins. Source: Bloomberg Link: https://lnkd.in/dHC_iV7G Article: Change Healthcare hackers broke in using stolen credentials — and no MFA, says UHG CEO Takeaway: Hackers exploited credentials that lacked multi-factor authentication to remotely access the system, underscoring the urgent need for investments in cybersecurity. Source: TechCrunch Link: https://lnkd.in/dMSkCWA6 Article: Japanese government spent $35bn to prop up yen, BoJ figures suggest Takeaway: This appears to have been an official intervention to prevent further depreciation of the Japanese yen. Source: Financial Times Link: https://lnkd.in/djHgyhwA Article: Investment firm Intuition comes out of stealth with €15M fund Takeaway: The new fund will focus on investing in startups that are centered around consumer and cultural engagement across Europe and the U.S. Source: Tech.eu Link: https://lnkd.in/dEw_vZRi Article: BlackRock to Get $5 Billion From PIF to Boost Presence in Saudi Arabia Takeaway: The new entity, BlackRock Riyadh Investment Management, will focus on investing in the Middle East, specifically targeting the growth of Saudi Arabia's capital markets. Source: Bloomberg News Link: https://lnkd.in/dmgygiXd Article: McDonald’s Seeks to Make Menu More Affordable for Inflation-Weary Consumers Takeaway: As consumers reduce their spending, McDonald's needs to adjust its strategy to emphasize affordability. Source: The Wall Street Journal Link: https://lnkd.in/dSstWZKv Article: Walmart to Shutter All Health Clinics, End Virtual Care Over ‘Lack of Profitability’ Takeaway: The company will shut down all 51 of its healthcare clinics and discontinue virtual care services due to unprofitability and unsustainable rising operating costs. Source: The Information Link: https://lnkd.in/dmb5Smid Article: Workplace browser Island doubles valuation to $3B in 6 months Takeaway: Island, an enterprise browser company, raised $175M in a Series D funding round led by Coatue and Sequoia Capital. Source: PitchBook Link: https://lnkd.in/d-zYbmWD   #news #research #business

October 04 2024 – 5 Notable Articles To Read Article: Brookfield: $2.4B For Catalytic Transition Fund Raised Takeaway: Brookfield Asset Management has secured an initial $2.4B for the Catalytic Transition Fund, marking a key step toward its goal of raising $5B for investments in clean energy and transition assets in emerging markets. Source: Pulse 2.0 Link: https://lnkd.in/dHQyiUfH Article: Hollywood and Big Tech spar over fateful new AI rules Takeaway: The legislation, SB 1047, would mandate that AI companies ensure their products are not misused to cause mass destruction, or else face legal consequences and fines. By signing the bill, Governor Newsom would effectively set national AI development standards, given that California is home to industry giants like OpenAI, Alphabet, and Meta. Source: Morning Brew Link: https://lnkd.in/dAXc9ZeZ Article: European Investment Bank (EIB) Investment Bank lends Nexi Group €220M Takeaway: Europe's largest paytech states that the projects funded by EIB financing align with its ESG goals, focusing on digital payment innovation, job creation for young people and in disadvantaged areas, and improving environmental sustainability through data center optimization and cloud usage. Source: Finextra Link: https://lnkd.in/dgq-pTw2 Article: ‘We’re building the UK’s first $1T company’ — Amazon Alexa creator’s new startup Takeaway: Unlikely AI aims to achieve this by developing an enterprise AI platform that integrates many of the machine learning techniques behind large language models (LLMs) with the reliability of traditional software, ensuring fewer mistakes. Source: Sifted Link: https://lnkd.in/dxfg7nqC Article: Ninety One makes final close European private credit fund at €150M Takeaway: The fund seeks to offer "customized asset-based private credit solutions to underserved non-sponsored borrowers in Europe’s mid-market sector." Recent deals include directly originated bilateral loan facilities for a founder-owned German renewable energy company, a privately-held UK waste recycling firm, and a family-owned Swiss consumer products business. Source: Funds Europe Link: https://lnkd.in/dQFEZrft #news #business #research #ai

Fragmented Financial System Stymies EU Innovation Europe’s tech sector is struggling under the weight of a fragmented financial landscape. While the US thrives on a robust venture capital network, Europe’s bank-centric system and restrictive regulations stifle innovation. Startups face a maze of national barriers, limiting their access to essential funding and hampering their ability to scale. To break free from this quagmire, recent proposals from the IMF suggest the EU must undertake comprehensive reforms. Market integration, enhanced tax incentives, and robust public financial support are critical. The IMF’s recent blog “Europe Can Better Support Venture Capital to Boost Growth and Productivity. Reforms could increase investment in high-tech startups that power innovation“ outlines these steps as essential to rejuvenating Europe’s venture capital landscape: 🔗“https://lnkd.in/dF48icjT Yet, these measures alone will not suffice. Europe must also streamline regulations, bolster intellectual property protections, and improve digital infrastructure to truly ignite a renaissance in its high-tech sector. Only through a multifaceted approach can Europe hope to rival the innovation-driven growth seen in other global markets. #VentureCapital #EUReform #Innovation #TechStartups #MarketIntegration #IMF #EconomicGrowth #DigitalInfrastructure #RegulatoryReform #IntellectualProperty - - - - - - - - 🗞I'm Panagiota Stamos, Editor of "the future of money" newsletter, sharing updates on digital finance and AI regulations on LinkedIn before our launch—connect with me Panagiota Stamos Psichis for a sneak peek and to be the first to know when our inaugural issue is out! 🤝 Subscribe: “https://lnkd.in/dpP4mKVu

𝐓𝐡𝐞 𝐃𝐞𝐚𝐭𝐡 𝐨𝐟 𝐕𝐚𝐥𝐮𝐞 𝐈𝐧𝐯𝐞𝐬𝐭𝐢𝐧𝐠... 𝐎𝐫 𝐈𝐬 𝐈𝐭? 𝐀 𝐒𝐡𝐨𝐜𝐤𝐢𝐧𝐠 𝐓𝐚𝐥𝐞 𝐨𝐟 𝐓𝐰𝐨 𝐌𝐚𝐫𝐤𝐞𝐭𝐬 In my decades-long journey in investment management, I've witnessed firsthand the ebb and flow of various investment strategies, particularly the enduring debate between value and growth investing. The recent performance divergence between these two strategies in the US and international markets, as shown by the 50% drawdown of the value factor in the US from 2009 to 2020, has sparked intense discussions and raised questions about the future of value investing. During the early 2010s, when the US value factor experienced a significant decline, I found myself advising clients who were growing increasingly skeptical of value-oriented approaches. The appeal of high-flying tech stocks, fueled by advancements in #cloudcomputing, was hard to resist. It was a challenging period, as my decades of experience told me that value investing had historically proven its resilience over the long term, but the short-term data painted a different picture. As the #AI boom accelerated in 2023, the value factor in the US further declined by 11%, adding another layer of complexity to the situation. The rise of companies like OpenAI and the rapid adoption of AI technologies seemed to validate the concerns of those who believed that value investing was losing its edge in the face of unprecedented technological innovation. However, my experience and analysis of international markets offered a different perspective. In stark contrast to the US, the value factor in developed markets outside the US had increased by 36% since March 2020, demonstrating a steady and consistent rise even during the AI era. I recall a conversation with a European client who was curious about the diverging trends. Drawing upon my experience, I explained that the US market, with its concentration of tech giants, was likely experiencing a temporary distortion due to the rapid adoption of disruptive technologies. Meanwhile, international markets, with their more diversified economies, were proving to be fertile ground for value investors. This insight led us to rebalance the client's portfolio, increasing exposure to international value stocks while maintaining a core allocation to US equities. This decision proved to be prescient, as the international value component of the portfolio significantly outperformed the US component over the following years. Looking ahead, the key question is how quickly the US market will adapt to the rise of AI and other disruptive technologies. History suggests that markets eventually find a balance, and as competitors emerge and industries adapt, the value factor could regain its footing in the US. The underperformance of value in the US is a reminder of the disruptive power of technological innovation, while the outperformance of value in international markets underscores its enduring relevance.

The H1 2024 SVB State of the Markets report by #siliconvalleybank highights reasons for optimism in the innovation economy, as it recovers from the venture slowdown. The report explores the recent surge in AI investment and its implications for the startup ecosystem.

Part 1 of 4 This is where I’ll be today! Not my usual sustainable conferenc - in fact not a sustainable investment conference at all. This will be the complete antidote to last week’s Good Money Week, but possibly less hypocritical than FT’s Moral Money? We will see. But why am I going? Seems to me that this is happening whether we like it or not and I’d rather know what’s happening on the dark side of our industry. No point building a sustainable investment case when you know nothing about the alternatives. Thats what makes us IFAs rather than RFAs - R for restricted, of course. However, I can reassure any of our investors reading this, that we won’t be investing in any arms manufacturing or weapons suppliers any time soon. Our investment philosophy remains sound! Im looking forward to some ‘interesting’ and robust conversations today…I’ll let you know how it goes 😊 Rebecca Kowalski FPFS, Sustainable Finance specialist Alan Whittle MSc FPFS Dr Raj Thamotheram Ed Gillespie

Kudos to Eli, Pardo, and Josh on an excellently researched report on the state of the innovation economy. Lots of rich data for those in the industry.

The SVB State of the Markets report is always insightful and informative.