Justin Hopkins’ Post

Newest VER blog discusses “Innovations in Europe”. Clearly more innovations are made in the United States than in Europe. As it is, US technological giants lead the tech race, the venture capital market is stronger and tech IPOs take place in the United States. From the standpoint of an institutional investor, European innovations have not for a long time been as attractive investments as in the United States. According to the latest statistics, European venture capital funds have outperformed US funds over the past 10 years, returning over 20 percent per annum according to Invest Europe assocation. This fact can be used to create a roadmap for to increase the attractiveness of European growth companies from institutional investor perspective at the various stages of development. A pre-condition for a sound market is a multi-tiered, highly functional capital market infrastructure. Innovation market infrastructure is a chain of layers which consist of stock exchange and equity market, benchmark indices and investment products by which investors are attracted to invest. The good investment returns are the solid basis for interest. Link to newest VER blog “Innovations in Europe”: https://lnkd.in/dgCkzU5T)

Thanks for the insights Timo Löyttyniemi 🙏 My take: this comes down to fragmented European market both for stock exchanges and capital markets compared to super-aggregating US ones. Thanks for pointing out the BlackRock-Preqin deal. Like Nasdaq FirstNorth, perhaps they could be convinced to have ”First North private markets” for Nordics, since we at least try to generate solid capital markets compared to rest of Europe. The problem of Finland is lack of private capital, largely due to our high taxation approach and inheritance taxes, which are clear deviations to OECD.

**Bringing you up to speed with some more summer highlights from the Lawrence National Centre (LNC)** Navigating the Economic Landscape of AI through Venture Capital 🔍 How will venture capital and economic policy shape the future of AI in Canada? At the LNC's 2024 AI Symposium, top VC leaders explored the critical role of economic strategies in driving AI innovation. 📊 Moderator Blake Goldring, C.M., O.Ont., CFA, Executive Chairman of AGF Management Ltd. and LNC’s advisory council member, emphasized the need for visionary leadership to invest in uncertain conditions: “You have to see exactly where the markets are going to be in the future, what great innovations are going to be.” Esteemed panelists included, Janet Bannister, Founder and Managing Partner of Staircase Ventures; Richard Black, Managing Partner of First Ascent Ventures; and Rick Nathan, Senior Managing Director of Kensington Capital Partners. They delved into several important topics, including the changing landscape of VC funding, the resilience of Canada’s AI sector, potential impacts of the new rules on capital gains, and the strategic role of venture capital in fostering growth in the AI sector. Whether you're involved in policy, economics, or technology, this article provides crucial insights into the intersection of economic policy and AI investment. 💼 🔗 Read the full article: https://lnkd.in/giFhS6Nv Ivey Business School at Western University Romel Mostafa Renee Hueston #AIPolicy #VentureCapital #EconomicGrowth #Innovation #TechInvesting #CanadaAI

Insights from the CB Insights State of CVC Q2 2024 Report The latest CB Insights State of CVC Q2 2024 Report reveals significant trends and shifts in the corporate venture capital (CVC) landscape. Here are some key takeaways that highlight the evolving dynamics of funding and investment: Key Highlights: 🚀 CVC-backed Funding Growth: In Q2 2024, global CVC-backed funding reached $15.6 billion, with over half of this amount coming from mega-rounds exceeding $100 million. This indicates a robust interest in high-potential startups. 📉 Sector Performance: While overall funding saw a decline, sectors like digital health faced a notable drop of 57% QoQ, reaching its lowest level since Q4 2017. In contrast, fintech and retail tech also experienced declines, emphasizing the challenges faced by companies not focused on AI. 📊 Increasing Deal Sizes: The average deal size for CVC-backed investments increased by 27% compared to 2023, now averaging $26.6 million. This growth is attributed to significant investments in startups like Scale and Wiz, each securing $1 billion in funding. 🇺🇸 Regional Insights: The US continues to dominate late-stage deals, accounting for 58% of the total, driven by sustained economic growth and low unemployment. Meanwhile, CVC-backed funding in China plummeted to $0.2 billion, reflecting ongoing economic and regulatory challenges. 🔮 Future Outlook: As the venture market evolves, companies that are not explicitly focused on AI may find it increasingly difficult to secure funding. This shift underscores the importance of innovation and adaptability in the current investment climate. The findings from the Q2 2024 report illustrate a complex and rapidly changing landscape for corporate venture capital. As investors recalibrate their strategies, the emphasis on AI and high-value deals is becoming more pronounced. To thrive in the competitive market, startups and investors must stay agile and responsive to these trends. Let’s discuss how these insights can inform our approach to investment and innovation in the coming months! #CorporateVentureCapital #InvestmentTrends #Fintech #DigitalHealth #AI #CBInsights #Innovation #StartupEcosystem Vuyo Mpako, Anthony S Mwithiga, MSCI, Peter Ndiang'ui, Robert Ochieng, Jack Ngare

⚫ Venture Pulse Q4 2023 The Q4'23 edition of Venture Pulse by KPMG Private Enterprise provides an insightful analysis of the venture capital (VC) market's performance in the face of a tumultuous year. 2023 witnessed significant headwinds, including geopolitical tensions, economic uncertainties, high inflation rates, and a challenging exit environment, which collectively imposed a cautious stance among investors globally. ⚫ Despite these adversities, the report uncovers the resilience of certain sectors, notably artificial intelligence (AI), cleantech, health, and biotech, which continued to attract investor attention amidst the broader market slowdown. ⚫ The year marked a notable decline in both global VC investment and deal numbers, reaching levels not observed since before the unprecedented highs of 2021. This downturn was particularly pronounced in the final quarter of the year, highlighting the impact of ongoing economic and geopolitical uncertainties on investor confidence. ⚫ Notwithstanding, the quarter saw significant investments in AI startups, emphasizing the sector's burgeoning potential and investor interest in cutting-edge technologies. ⚫ As we move into 2024, the report sets a cautious tone for the immediate future of VC investment, with expectations of continued moderation in the face of market uncertainties. ⚫ However, it also suggests potential areas of opportunity, particularly in sectors that have demonstrated resilience or growth potential amidst the downturn. ⚫ The emphasis on AI and cleantech investments, alongside a keen interest in startups focusing on sustainability and innovative technological solutions, underscores the evolving landscape of venture capital investment and the strategic shifts investors are making in response to global challenges. ⚫ This comprehensive analysis serves as a valuable resource for understanding the intricate dynamics of the VC market, offering both a retrospective look at the year's challenges and forward-looking insights into emerging trends and opportunities. 👏 Special Thanks to KPMG for this awesome Report, also it's contributors and authors: Conor Moore Francois Chadwick Lindsay Hull #angelinvestor #angelinvestors #funding #startup

🌐 The Venture Capital Landscape is Evolving: Key Trends to Watch for Q1 2025 🚀 The venture capital (VC) industry stands at a transformative point, shaped by rapid shifts and growth. As we look ahead to Q1 2025, here are the trends reshaping VC, driven by technological breakthroughs, economic factors, and a focus on sustainability. 1. AI’s Expanding Influence 🤖 AI is taking center stage, now accounting for a third of all U.S. VC investments in Q3 2024, according to PitchBook. Notably, one high-profile AI deal represented 20% of total VC funding, underlining the sector’s immense potential. 2 .Sustainable & Ethical Investments on the Rise 🌍 Despite economic uncertainties, there’s optimism that the “VC winter” may be easing. More investors are prioritizing sustainable, ethical companies, recognizing their resilience and long-term impact. 3. Deep Tech Takes the Spotlight 🔬 From advanced materials to biotechnology and quantum computing, deep tech is attracting interest as these companies tackle complex challenges and offer groundbreaking solutions. 4. Quality Over Quantity 📉 VCs are strategically shifting from high volumes to high-value investments, focusing on fewer but more impactful deals. This refined approach emphasizes long-term growth and reduces risk. 5. Global Expansion Amid Geopolitical Tensions 🌏 Cross-border investments are on the rise, expanding the global reach of venture capital despite geopolitical hurdles. This trend highlights VC’s role in fostering international innovation and collaboration. The VC space is ever-dynamic, with these emerging trends offering new insights and opportunities. Staying informed empowers investors to navigate these shifts and make strategic decisions for the future. Ready to connect with top startups and investors driving these trends? Register on Let’s Connect today and explore the opportunities shaping the future of venture capital. #VentureCapital #VCTrends #SustainableInvesting #AI #DeepTech #GlobalInvestment #LetsConnect

Is the funding spring here? Veteran investors to spill the beans beyond hype and uncertainty at ET Soonicorns Summit 2024 The future of venture capital (VC) funding is under scrutiny as industry experts gather at the ET Soonicorns Summit 2024 to discuss emerging trends and challenges. Despite a rocky landscape in recent years, there are signs of potential recovery in 2024. Key insights include: - Moderation and Recovery: After a significant decline in VC funding in 2023, some experts predict a rebound in 2024, particularly in sectors like healthcare, information technology, and fintech. Late-stage startups may attract more significant investments, especially in tech-driven areas. - Economic Challenges: High interest rates and inflation continue to constrain funding, leading to heightened scrutiny from investors. Many startups are facing a "mass extinction" scenario, with a backlog of companies seeking late-stage funding amidst low IPO activity. - Emerging Themes: Investors are increasingly focusing on sustainable and socially responsible ventures, with particular interest in GreenTech and AI solutions. This shift reflects a broader trend towards profitability and resilience among startups. Overall, while challenges remain, the VC landscape is adapting, and there is cautious optimism for a more favorable funding environment in the near future. Top sectors expected to see the most VC funding in 2024 In 2024, several sectors are poised to attract significant venture capital (VC) funding, reflecting ongoing technological advancements and market demands. Key sectors expected to see the most VC funding include: 1. Energy: With a strong focus on sustainable and efficient technologies, the energy sector is anticipated to draw substantial investments as the demand for cleaner energy solutions grows. 2. Telecommunications: The evolution driven by 5G, IoT, and enhanced connectivity will keep telecommunications appealing to investors. 3. Industrial Processes: Innovations aimed at improving efficiency and sustainability in manufacturing and resource utilization are likely to attract funding. 4. Pharmaceuticals: The sector is expected to continue its growth, particularly in personalized medicine and new treatments, addressing global health challenges. 5. Biotechnology: With applications in health, agriculture, and environmental issues, biotechnology remains a hotbed for investment due to its innovative potential. 6. Oil & Gas: Despite the shift towards renewables, this sector will still receive significant funding, particularly for cleaner extraction technologies. 7. Media and Entertainment: The demand for innovative content and platforms will drive investments in this sector, reflecting changing consumption patterns. 8. Chemistry: Investments in sustainable materials and innovative chemical processes are expected to grow, aligning with environmental goals.

2023 was another challenging year for founders, with many of the 2022 macro challenges persisting. • Difficult Fundraising Environment Founder sentiment about fundraising conditions over the past 12 months is grim. 80% of founder respondents to the State of European Tech survey (https://lnkd.in/dS5wwJhW) say that it has become even harder to raise venture capital. Just 7% of respondents stated that conditions had eased. • Round Volumes Drifting Back To Pre-2021 Levels The investment activity has decelerated, which is reflected in a decreased count of disclosed investment rounds. Rounds involving investment amounts of $5M or less continue to represent the overwhelming majority of all activity, equating to 73% of all rounds in 2023. Over the past three years, $5M+ rounds have accounted for around 24-27% of all activity. A decade ago in 2014, that share stood at just over one-tenth (11%). • Adjusting Expectations Most founders highlighted the impact of challenging fundraising conditions on most aspects of their process. The most notable impacts cited were extended process timelines, the need to lower valuation expectations, reducing round sizes or taking more dilution than hoped. • The Average Time Between Rounds Is The Same Companies that have had to elongate the time between their funding rounds have yet to come back to the market to raise capital in sufficient volume to impact the overall numbers. As of Q3 2023, the median time between rounds for growth-stage companies has remained an average of 23 months between consecutive rounds. • An Upward Trend in Bridge Rounds 2023 saw the highest share of bridge rounds across all stages globally since 2019. Bridge rounds are more common at the earliest stages of a startup's fundraising journey when they serve to buy more time to find product-market fit. This is also reflected in the data, with Seed stage (38%) and Series A (39%) seeing the highest share of extension rounds in 2023. • Round Sizes on the Rise Round sizes are back in line with the longer-term, 5-10 year averages for the growth stages. At Seed and Series A, median round sizes have also seen a period of stabilisation following rapid increases during 2020 and 2021, but remain elevated at levels significantly above 5-10 year averages. Growth stage founders have to achieve more with less capital for an extended period, despite the ongoing inflationary pressures on wages that elevate talent costs. --------- QLA is a media-tech-enabled consulting company. Want access to exclusive dealflow? More info: https://qla.fund

Did you know how significantly global venture capital investment declined from 2022 to 2023? 😳 How can we address global challenges when there's less fuel for innovation? ⛽ While there is still a lot of catching up to do, especially in Europe and Germany, as outlined in our latest Redstone studies about pension funds and universities, I see at least a few positive signs: 1. Positive Investment Trends: Recent global investment trends are encouraging. Q1/23 vs. Q1/24 showed nearly 10% growth. 💪 2. Inflation Rates: The global inflation rate, which peaked at over 8% in 2022, is now down to 5.8% and is forecasted to drop to more moderate levels. This will unlock more capital for innovative projects. 💡 3. Hope in Underserved Regions: Despite the rapid decline in most regions, there are promising signs in underserved areas. E.g. my colleague Mohamed F. is supporting the African ecosystem and working on institutionalizing more investments there. 🤩 4. AI as a Key Investment Trend: AI is emerging with the potential to drive significant positive change. While chips haven't yet reached the level of human brains, this milestone will soon be achieved. If you will, it marks a new chapter for the Earth. 🌍 5. Support for Startups: In Germany, I see many promising startups that deserve better support from investors and policymakers. Positive changes are slowly taking shape, driven by initiatives such as the Startup-Verband, where dedicated individuals like my good friend Videesha Boeckle are driving political change. 🙏 So, what's your take? Is the glass half empty or half full? 🥛 Bettine Schmitz, Katia Yakovleva, Robert Hinsch, Lars Haerle, Michael Brehm, Götz Gleichmann, Mickaël Bellaïche, Philipp Werner, Jessica Frydling, Daniel Dillinger, Stefano Gurciullo, Sebastian Becker, Jörg Binnenbrücker, Franz Tschimben, Eva Ogriseg, Harald Oberrauch, Federico Leis, Dr. Annika von Mutius, Dr. Larissa Leitner, Sherin Maruhn, Stanislas Lot cc: Dealroom.co, thank you for providing the data.

"Innovators tell us that they want expertise in their sector above everything else. And that means that there is a substantial advantage for venture capitalists (VCs) who can show their knowledge of an industry vertical. That could be through their in-house team, their portfolio companies or their thought leadership. Yet very few VCs tick this simple box. We conducted a survey of a dozen European VCs designated as “prominent” by startup data provider Dealroom - two-thirds do not clearly define their industry vertical. Three-quarters fail to highlight their in-house experts and advisors who could support a portfolio company in scaling their HR or other function. For every A16Z, there are scores, if not hundreds, of investors. That means competition to fund innovators, but also, a confusing landscape. If investors want to attract more innovators, they could start by making it clear who they are actually trying to invest in." World Economic Forum #Innovators #investors #WEF #VC #Engagement #Tech