venture-capital

Venture Capital (78)

impact-investment

Impact Investment (20)

corporate

Corporate (1)

family-office

Family Office (1)

asset-management

Asset Management (18)

portfolio-management

Portfolio Management (3)

endowment

Endowment

foundation

Foundation

equity

Equity

venture-debt

Venture Debt (1)

revenue-based-sharing

Revenue Based Sharing

invoice-factoring

Invoice Factoring

crypto

Crypto

startups

Startups (69)

funds

Funds (2)

limited-partner

Limited Partner (2)

co-investment

Co-Investment

technology

Technology (5)

artificial-intelligence

Artificial Intelligence (10)

deep-tech

Deep Tech (2)

climate-tech

Climate Tech (2)

How to?1. How to build and scale a product company?Building a company is a straightforward science, and we've laid it all out for you here. The real power lies in flawless execution. Dive in, master it, and execute relentlessly.<a href="https://www.newnex.io/blogs/startups/building-and-scaling-a-product-company-insights-from-top-founders-and-investors" rel="noopener noreferrer" target="_blank">Read here</a>2. Please don't take venture capital. This is a thought-provoking and beautifully crafted piece that challenges startups to reflect on their suitability for venture capital. If achieving $100 million in revenue or 100 million users within five years isn't within reach, it's worth reconsidering whether pursuing venture capital funding aligns with your goals.<a href="https://ehandbook.com/please-dont-take-venture-capital-7d0cc9b473ed" rel="noopener noreferrer" target="_blank">Read here</a> Pitch Decks:1. Sequoia Capital's pitch-deck template <a href="https://www.slideshare.net/slideshow/sequoia-capital-pitchdecktemplate/46231251" rel="noopener noreferrer" target="_blank">Click here</a>2. Airbnb: Airbnb's early pitch deck is renowned for its clarity and effectiveness, helping the company raise $600,000 in 2008. <a href="https://www.slideshare.net/PitchDeckExamples/original-airbnb-pitch-deck-2008" rel="noopener noreferrer" target="_blank">Click here</a>3. Uber: Uber's initial pitch deck, presented under the name "UberCab," was instrumental in raising $200,000 in 2009.&nbsp;<a href="https://www.slideshare.net/slideshow/uber-pitch-deck/79089661" rel="noopener noreferrer" target="_blank">Click here</a> Reports:1. <a href="https://www.investeurope.eu/media/g3yobbcs/soet2024_report.pdf" rel="noopener noreferrer" target="_blank">State of European Tech, 2024, by Atomico</a> Relevant Books:1. <a href="https://www.amazon.co.uk/Zero-One-Notes-Startups-Future/dp/0804139296" rel="noopener noreferrer" target="_blank">Zero to One, Peter Thiel </a>2. <a href="https://www.amazon.co.uk/Hard-Thing-About-Things-Building/dp/0062273205" rel="noopener noreferrer" target="_blank">Hard Things About Hard Things, Ben Horowitz</a> ----Want to recommend relevant resources? leave us a comment here or send us a message on X - <a href="http://www.x.com/newnexhq" rel="noopener noreferrer" target="_blank" style="background-color: rgb(255, 255, 204);">www.x.com/newnexhq</a>---Join the Future of Venture Capital Investing with Newnex <a href="https://www.newnex.io/edit/blogs/www.newnex.io" rel="noopener noreferrer" target="_blank">Newnex</a> is the exclusive network designed for startups, venture capitalists (VCs), and limited partners (LPs) to fundraise and invest through trusted references. Our mission is to democratize access to institutional venture capital while maintaining quality. We aim to bring together 5,000+ VC and LP firms and 100,000 venture-scale startups on a trusted, reference-only platform for seamless private deal-making.

Startups and Venture Capital resources and sane advise

Europe's venture capital (VC) ecosystem is playing a crucial role in fostering innovation and economic growth across the continent. Over the past decade, VC funds have invested €143.6 billion into more than 26,100 startups, significantly contributing to job creation and economic development. The impact of VC-backed companies on employment is substantial:- Companies supported by VC now employ over 1 million people in Europe- VC-backed firms achieved an 18% job creation rate in 2022, far surpassing the overall European job creation rate of 2%- Private equity and VC-backed companies added 7.2% more jobs in 2022, more than 3.5 times the overall European growth rate- The industry supported 10.9 million workers across the continent at the end of 2022, equating to 5% of the continent's workforce The European VC landscape has shown resilience and growth:- Venture capital investment into European startups reached $63 billion in 2023, invested across over 10,000 funding rounds- Europe's share of global venture capital increased from ~5% two decades ago to 20% in 2023- European VC funds have achieved net returns greater than 20% annually over a 10-year horizon, outperforming many global benchmarks European VC is driving innovation in key sectors:- Fintech, biotech, energy, and environment are major focus areas- €23 billion has been invested by VC in biotech and healthcare since 2014- The Information &amp; Communications Technology (ICT) sector added 13.8% more jobs in 2022, highlighting the industry's growth Despite progress, Europe faces challenges in scaling up its VC ecosystem:- The EU is lagging behind the US in productivity growth and R&amp;D investment- Many successful EU startups move elsewhere for financing, causing the EU to lose out on growth benefits and positive spillovers- The European Innovation Council (EIC) Fund provides equity to startups, but only until their early-growth phase, with investments capped at €15 million To address these challenges and further boost innovation, experts recommend:- Reducing regulatory frictions, especially those deterring pension funds and insurers from investing in VC- Implementing well-designed tax incentives for R&amp;D investments- Consolidating stock markets and reforming insolvency regimes- Giving public financial institutions like the European Investment Fund a more active role in kickstarting VC markets As Eric de Montgolfier, CEO of Invest Europe, states, "With the right support and incentives, [the VC industry] can go much further. That will drive more innovation, more world-leading start-ups, and multiply the rewards for all of Europe." By continuing to nurture its VC ecosystem, Europe can enhance its competitiveness, drive innovation, and ensure its position as a global leader in emerging technologies and sustainable solutions.

European VC funds have invested €143.6 billion into more than 26,100 startups

Building a successful product company and scaling it effectively is a challenging journey that requires strategic thinking, adaptability, and relentless execution. Drawing from the wisdom of renowned startup founders, investors, and thought leaders like Peter Thiel, here's a comprehensive guide on how to build and scale a product company. <ol><li>Start with a unique vision</li><li>Build something people want</li><li>Focus on Product-Market Fit</li><li>Launch early and iterate</li><li>Build a strong team</li><li>Embrace "Doing things that don't scale"</li><li>Develop a clear business vision</li><li>Focus on Growth</li><li>Build scalable systems and processes</li><li>Master distribution</li><li>Sequence markets correctly</li><li>Maintain financial discipline</li><li>Foster a culture of innovation</li><li>Stay focused</li></ol> Start with a Unique VisionPeter Thiel emphasizes the importance of starting with a contrarian truth. Ask yourself, "What important truth do very few people agree with you on?" This unique insight should form the foundation of your product company. Aim to create something truly innovative rather than making incremental improvements to existing products. Build Something People WantSam Altman's first piece of advice is simple yet crucial: make something people want. This involves talking to potential customers, identifying real pain points, and developing a solution that addresses these needs effectively. Focus on Product-Market FitBefore scaling, ensure you've achieved product-market fit. This means your product solves a real problem, customers are willing to pay for it, and there's a large enough market to support growth. Launch Early and IterateMichael Seibel of Y Combinator advises founders to launch their products as soon as possible. Don't wait for perfection; instead, release a minimum viable product (MVP), gather user feedback, and iterate rapidly based on this feedback. Build a Strong TeamA great team is critical for success. When building your team, hire smart, effective people committed to your vision, look for individuals who can grow with the company, and create a culture that rewards output and innovation. Embrace "Doing Things That Don't Scale"In the early stages, focus on activities that don't scale but provide valuable insights. Personally engage with customers, provide exceptional customer service, and manually perform tasks that you'll automate later. Develop a Clear Business VisionArticulate a clear, compelling vision for your company. This will guide decision-making, attract talent and investors, and keep the team aligned and motivated. Focus on GrowthSam Altman notes that "growth solves (nearly) all problems." To drive growth, set aggressive but achievable growth targets, monitor key metrics closely, and experiment with different growth strategies. Build Scalable Systems and ProcessesAs you grow, invest in scalable systems and processes. Standardize procedures across departments, invest in the right tools and technologies, and automate repeatable tasks. Master DistributionPeter Thiel emphasizes the importance of distribution. Don't fall into the "Field of Dreams" trap of thinking a great product will sell itself. Develop a robust sales and marketing strategy, focus on customer lifetime value (CLV) exceeding customer acquisition cost (CAC), and experiment with different distribution channels. Sequence Markets CorrectlyStart by dominating a small, specific market before expanding. Identify a niche market with few competitors, become the go-to solution in that market, and gradually expand to adjacent markets. Maintain Financial DisciplineAs you scale, maintain financial discipline. Keep burn rate low until you're sure everything is working, raise slightly more money than you think you need, and be frugal and focus on sustainable growth. Foster a Culture of InnovationEncourage ongoing innovation within your company. Create an environment where new ideas are welcomed, allow time for experimentation, and learn from failures and iterate quickly. Stay FocusedAvoid the temptation to pursue too many opportunities at once. Set clear priorities, say no to distractions, and execute relentlessly on your core mission. Case Study: Superhuman's Engine for Product-Market FitSuperhuman, a popular email client, provides an excellent case study on how to systematically achieve product-market fit (PMF). Here's how they approached it: The ProblemSuperhuman needed a way to measure and improve their product-market fit. They wanted to move beyond gut feelings and create a data-driven approach to product development. The SolutionRahul Vohra, Superhuman's founder and CEO, developed a framework to quantify and systematically increase product-market fit. Here's how they did it: 1. Measure PMF Score: Used Sean Ellis' question: "How would you feel if you could no longer use the product?" Calculated the percentage of users who answered "very disappointed" and aimed for the 40% benchmark Ellis identified as indicating PMF. 2. Segment Users: Divided users into "very disappointed," "somewhat disappointed," and "not disappointed" groups. Focused on understanding and expanding the "very disappointed" group. 3. Analyze Feedback: Asked follow-up questions to understand what users loved and what could be improved. Identified the product's main benefit and who it served best. 4. Build a Roadmap: Prioritized features and improvements based on user feedback. Focused on enhancing the core benefit for the target audience. 5. Repeat and Refine: Continuously measured PMF score and iterated on the product. Gradually improved the score from 22% to 58%. ResultsSuperhuman's systematic approach led to significant improvements: - PMF score increased from 22% to 58%- Clearer understanding of target users and core benefits- More focused product development efforts- Strong foundation for sustainable growth Key Takeaways1. Quantify product-market fit using a consistent metric2. Segment users and focus on your most enthusiastic cohort3. Continuously gather and analyze user feedback4. Build a roadmap that enhances core benefits for target users5. Iterate and measure progress regularly Building and scaling a product company is a challenging but rewarding journey. By following these insights from successful founders and investors, and learning from case studies like Superhuman, you'll be better equipped to navigate the complexities of startup growth and increase your chances of building a thriving, innovative company. Remember, the key is to start with a unique vision, build something people want, focus relentlessly on product-market fit, and continuously iterate based on user feedback and market demands.---Join the Future of Venture Capital Investing with Newnex <a href="https://www.newnex.io/edit/blogs/www.newnex.io" rel="noopener noreferrer" target="_blank">Newnex</a> is redefining venture capital by fostering collaborative and private investing and fundraising between VCs (GPs), Limited Partners (LPs), and Startups. Newnex simplifies syndication and co-investment for institutional investors, with a mission to connect 5,000+ VC and LP firms and 100,000 venture scale startups on a trusted platform for seamless, reference-only private deal-making. Join Newnex for free <a href="http://www.newnex.io/" rel="noopener noreferrer" target="_blank">www.newnex.io</a>

Building and Scaling a Product Company: Insights from Top Founders and Investors

Fuel Ventures, a leading UK venture capital fund, has successfully closed a £20 million investment round backed by prominent Chinese investors, including the Shijingshan Industrial Fund and Zhongguancun Development Group. This significant deal highlights the UK's growing appeal as a destination for Asian capital and paves the way for enhanced collaboration between the UK and China's thriving tech ecosystems. 1. The deal reflects increasing Chinese interest in the UK's tech scene, Europe's largest and the world's third most significant technology ecosystem. 2. Fuel Ventures aims to guide investments into UK startups in cutting-edge fields such as fintech, AI, and SaaS. 3. The partnership aligns with Beijing's efforts to introduce advanced technologies into China. 4. It provides UK and European founders access to China's vast consumer market while offering Chinese investors exposure to innovative European technologies and business models. Mark Pearson, founder of Fuel Ventures, emphasized the importance of this UK-China partnership, stating it's part of a broader trend towards international collaboration. He noted that this move mirrors the recent flow of capital from the US to the UK following political shifts. Jing Jing Xu, Managing Director at Fuel Ventures Asia, highlighted the UK's appeal to Chinese investors, citing the country's strong educational framework and vibrant tech sector. She pointed out that over 154,000 Chinese students studied in the UK last year, representing an 80% increase over the past decade. The investment not only enhances Fuel Ventures' attractiveness to entrepreneurs with global ambitions but also enables startups to access both Western and Eastern markets, facilitating their path to long-term, international success. This deal marks a significant step in strengthening the ties between the UK and China's tech ecosystems, potentially opening new avenues for growth and innovation in both countries.---Join the Future of Venture Capital Investing with Newnex <a href="https://www.newnex.io/edit/blogs/www.newnex.io" rel="noopener noreferrer" target="_blank">Newnex</a> is redefining venture capital by fostering collaborative and private investing and fundraising between VCs (GPs), Limited Partners (LPs), and Startups. Newnex simplifies syndication and co-investment for institutional investors, with a mission to connect 5,000+ VC and LP firms and 100,000 venture scale startups on a trusted platform for seamless, reference-only private deal-making. Join Newnex for free <a href="http://www.newnex.io/" rel="noopener noreferrer" target="_blank">www.newnex.io</a>---Join SEINET - the exclusive network for tech and science product and industry leaders. SignUp Free <a href="http://www.startupeuropeindia.net/" rel="noopener noreferrer" target="_blank">www.startupeuropeindia.net</a>

Fuel Ventures Secures £20M Chinese Investment, Strengthening UK-China Tech Ties

Italy has implemented a new competition law tying tax breaks on investment returns for first and second pillar pension funds to specific allocations in venture capital funds. The law, which came into effect on December 19, 2024, aims to encourage investments in the real economy while balancing the protection of pension schemes' financial strength. Key points:1. Tax exemptions apply if venture capital fund allocations reach 5% of qualified investments in 2025 and 10% from 2026 onwards. 2. Pension schemes can invest up to 10% of assets in equities through various vehicles, including venture capital funds in Italy, the EU, and the EEA. 3. The law covers both qualified investments and long-term savings plans (PIR). 4. Tax exemptions require holding qualified investments for at least five years. 5. Adepp, the Italian association of pension funds for professionals, welcomed the changes as a balanced approach. 6. A safeguard clause allows retroactive tax benefits for investments in innovative start-ups made before the law's enactment. This new legislation represents a compromise between encouraging investment in start-ups and maintaining the financial stability of pension schemes, while also addressing concerns about the developing nature of Italy's venture capital market. ---Join the Future of Venture Capital Investing with Newnex <a href="https://www.newnex.io/edit/blogs/www.newnex.io" rel="noopener noreferrer" target="_blank">Newnex</a> is redefining venture capital by fostering collaborative and private investing and fundraising between VCs (GPs), Limited Partners (LPs), and Startups. Newnex simplifies syndication and co-investment for institutional investors, with a mission to connect 5,000+ VC and LP firms and 100,000 venture scale startups on a trusted platform for seamless, reference-only private deal-making. Join Newnex for free <a href="http://www.newnex.io/" rel="noopener noreferrer" target="_blank">www.newnex.io</a>

Italy Introduces New Tax Incentives for Pension Fund Investments in Venture Capital

OpenAI's "12 Days of OpenAI" event showcased a range of new features and models, enhancing their AI offerings across various domains. Here's a summary of the key launches and their potential applications: o1 Model ReleaseThe full version of the o1 reasoning model was made available to ChatGPT Plus and Pro subscribers. This model offers improved performance across various prompts, including math and science, with fewer mistakes and faster processing. It also introduced multi-modal reasoning capabilities, allowing users to input and analyze images alongside text. ChatGPT Pro SubscriptionA new tier of ChatGPT subscription was introduced at $200 per month, offering unlimited access to OpenAI's best models and features, including o1-mini, GPT-4o, and Advanced Mode. This tier is designed for power users who require extensive AI capabilities for complex tasks. Reinforcement Fine-Tuning Research Program ExpansionOpenAI expanded access to its Reinforcement Fine-Tuning program, allowing developers and organizations to customize models for specific, complex tasks. This feature is particularly useful for research institutes, universities, and enterprises working on specialized AI applications. Sora Video GeneratorThe long-awaited Sora video generation model was officially released, capable of producing 20-second clips at 1080p resolution. While the initial reception was mixed, this tool opens up possibilities for content creators and marketers to generate short-form video content. Canvas ImprovementsThe Canvas feature was integrated directly into the GPT-4o model and made available to users across all tiers. It now supports running Python code within the Canvas space and allows for the construction of custom GPTs, enhancing its utility for developers and data analysts. Apple Intelligence IntegrationChatGPT was integrated into Apple Intelligence, specifically Siri, allowing iOS users to access the chatbot directly through their devices. This integration brings advanced AI capabilities to Apple's ecosystem, potentially enhancing the user experience for iOS users. Advanced Voice Mode EnhancementsThe conversational chatbot model gained the ability to view the world through a mobile device's camera or via screen sharing. This feature enables users to ask questions about their surroundings without manual description or photo uploads. Additionally, a seasonal Santa Claus voice was added to Advanced Voice Mode. Projects for ChatGPTA new smart folder system called "Projects" was introduced, allowing users to better organize their chat histories and uploaded documents by subject. This feature improves workflow management for users working on multiple AI-assisted tasks or projects. ChatGPT Search for All UsersThe ChatGPT Search function, which allows the AI to search the internet and synthesize information into conversational answers, was made available to all logged-in users regardless of subscription tier. This feature competes with similar offerings from other AI companies and enhances ChatGPT's utility as a general-purpose information tool. API Access to o1 ModelSelect developers were granted access to the full version of the o1 reasoning model through the API, along with real-time API updates and a new model customization technique called Preference Fine-Tuning. New SDKs for Go and Java were also released, expanding the development options for AI integration. 1-800-ChatGPT Phone ServiceOpenAI launched a phone service allowing users to access ChatGPT's Advanced Voice Mode through a toll-free number, even from landlines or basic mobile phones. This service aims to make AI assistance accessible to those without internet access or smartphones. Expanded Coding App IntegrationChatGPT's ability to interface directly with popular coding applications was significantly expanded, allowing it to pull code snippets from a wider range of apps and IDEs. This feature also extends to conventional text programs like Apple Notes and Notion, enhancing productivity for developers and writers alike. o3 and o3-mini Models PreviewOpenAI teased its upcoming o3 and o3-mini reasoning models, which reportedly offer superior performance on challenging math, science, and coding benchmark tests compared to their predecessors. These models are currently in safety testing and red teaming trials, with no specific release date announced for general users.

12 Days of OpenAI: Key Features and Use Cases

Aviva Investors, the asset management arm of insurance giant Aviva, has received regulatory approval to launch a £250 million venture capital fund focused on climate technology startups. The fund, named Climate Transition Venture Capital Fund, aims to invest in early-stage companies developing innovative solutions to combat climate change.&nbsp;&nbsp; The initiative is being spearheaded by Mark Versey, CEO of Aviva Investors, who has been instrumental in driving the firm’s sustainability-focused agenda. Daniel McHugh, Chief Investment Officer for Real Assets, is playing a key role in shaping the fund’s strategy, leveraging his expertise in sustainable investments. Mirza Baig, Chief Sustainable Investing Officer, is also contributing to the fund by ensuring it adheres to strict environmental, social, and governance (ESG) principles.&nbsp;&nbsp; The Climate Transition Venture Capital Fund will target investments in areas such as clean energy, sustainable transport, and carbon removal technologies. This aligns with Aviva’s broader commitment to achieve net-zero carbon emissions by 2040. Mark Versey emphasized the fund’s importance in supporting the transition to a low-carbon economy while fostering innovation in climate-focused ventures.&nbsp;&nbsp; This move reflects the growing trend of institutional investors allocating capital to climate technology and reinforces Aviva’s leadership in sustainable investing.OpenAI has taken a bold step in making artificial intelligence more accessible by integrating ChatGPT with WhatsApp and launching a phone service. This move brings the popular AI chatbot to billions of users through familiar communication channels. WhatsApp users can now chat with ChatGPT by simply adding a designated phone number to their contacts. To get started, open WhatsApp, add a new contact with the number +1 800-242-8478 (which spells out 800-CHATGPT). Save the contact as "ChatGPT" or any preferred name, and you're ready to start a conversation. For those in the United States, OpenAI has introduced a toll-free number (1-800-ChatGPT) that allows voice conversations with the AI assistant. This service offers 15 minutes of free interaction per month for anyone dialing from a US number, making AI engagement as simple as making a phone call. While the WhatsApp version comes with some limitations - it only supports text conversations, has a knowledge cutoff date of September 2021, and can't be added to group chats - it provides a straightforward way for users to experience AI without needing to create an OpenAI account. To use ChatGPT on WhatsApp effectively, keep your messages clear and concise for better responses. You can ask follow-up questions or request clarifications in the same chat thread. Remember that there may be daily message limits, although the service is free to use. This expansion is part of OpenAI's broader strategy to reduce barriers to AI adoption and showcase its potential to a wider audience. By leveraging familiar platforms like WhatsApp and traditional phone calls, OpenAI aims to make AI technology more approachable and less intimidating to the average user. As AI continues to evolve and integrate into our daily lives, initiatives like this play a crucial role in democratizing access to advanced technologies. While the current offering is described as experimental, it represents a significant step towards making AI a more common and accessible tool for people around the world.---Join the Future of Venture Capital Investing with Newnex <a href="https://www.newnex.io/edit/blogs/www.newnex.io" rel="noopener noreferrer" target="_blank">Newnex</a> is redefining venture capital by fostering collaborative and private investing and fundraising between VCs (GPs), Limited Partners (LPs), and Startups. Newnex simplifies syndication and co-investment for institutional investors, with a mission to connect 5,000+ VC and LP firms and 100,000 venture scale startups on a trusted platform for seamless, reference-only private deal-making. Join Newnex for free <a href="http://www.newnex.io/" rel="noopener noreferrer" target="_blank">www.newnex.io</a>

Aviva Investors to launch £250m Venture Capital Fund for Climate Tech Startups

Kazakhstan is taking a bold step into the world of venture capital with the announcement of a new Fund of Venture Capital Funds. Prime Minister Olzhas Bektenov revealed the ambitious plan during a meeting with venture capital experts, business leaders, and international partners on December 19, 2024. The fund aims to attract $1 billion in private investment over the medium term, positioning Kazakhstan as a major player in the global tech ecosystem. Already, large Kazakh businesses have pledged over $100 million as initial capital, demonstrating strong domestic support for the initiative. Zhaslan Madiyev, the Minister of Digital Development, Innovation, and Aerospace Industry, highlighted Kazakhstan's dominance in the Central Asian venture capital scene, accounting for over 70% of the region's deals. The country has seen a remarkable sixfold increase in venture capital volume over the past five years, reaching $80 million. The fund's strategy focuses on investing in leading global, regional, and Kazakh venture funds, ensuring diversification and access to critical technologies. Key areas of interest include artificial intelligence, digital health, and other cutting-edge tech sectors. With the global AI market projected to reach $827 billion by 2030, the fund is well-positioned to capitalize on this growth. Prime Minister Bektenov emphasized the importance of creating an environment that retains local talent, supports startups at all stages, and attracts global expertise to Kazakhstan. This initiative opens doors for entrepreneurs, investors, and tech professionals looking to tap into the burgeoning Central Asian market. As Kazakhstan sets its sights on becoming a regional hub for innovation and technology, this new venture capital fund could be the catalyst that transforms the country's economic landscape and attracts international attention to its growing tech ecosystem. read more ... <a href="https://astanatimes.com/2024/12/kazakhstan-to-establish-1-billion-venture-capital-fund-backed-by-private-investment" rel="noopener noreferrer" target="_blank">https://astanatimes.com/2024/12/kazakhstan-to-establish-1-billion-venture-capital-fund-backed-by-private-investment/</a>OpenAI has taken a bold step in making artificial intelligence more accessible by integrating ChatGPT with WhatsApp and launching a phone service. This move brings the popular AI chatbot to billions of users through familiar communication channels. WhatsApp users can now chat with ChatGPT by simply adding a designated phone number to their contacts. To get started, open WhatsApp, add a new contact with the number +1 800-242-8478 (which spells out 800-CHATGPT). Save the contact as "ChatGPT" or any preferred name, and you're ready to start a conversation. For those in the United States, OpenAI has introduced a toll-free number (1-800-ChatGPT) that allows voice conversations with the AI assistant. This service offers 15 minutes of free interaction per month for anyone dialing from a US number, making AI engagement as simple as making a phone call. While the WhatsApp version comes with some limitations - it only supports text conversations, has a knowledge cutoff date of September 2021, and can't be added to group chats - it provides a straightforward way for users to experience AI without needing to create an OpenAI account. To use ChatGPT on WhatsApp effectively, keep your messages clear and concise for better responses. You can ask follow-up questions or request clarifications in the same chat thread. Remember that there may be daily message limits, although the service is free to use. This expansion is part of OpenAI's broader strategy to reduce barriers to AI adoption and showcase its potential to a wider audience. By leveraging familiar platforms like WhatsApp and traditional phone calls, OpenAI aims to make AI technology more approachable and less intimidating to the average user. As AI continues to evolve and integrate into our daily lives, initiatives like this play a crucial role in democratizing access to advanced technologies. While the current offering is described as experimental, it represents a significant step towards making AI a more common and accessible tool for people around the world.---Join the Future of Venture Capital Investing with Newnex <a href="https://www.newnex.io/edit/blogs/www.newnex.io" rel="noopener noreferrer" target="_blank">Newnex</a> is redefining venture capital by fostering collaborative and private investing and fundraising between VCs (GPs), Limited Partners (LPs), and Startups. Newnex simplifies syndication and co-investment for institutional investors, with a mission to connect 5,000+ VC and LP firms and 100,000 venture scale startups on a trusted platform for seamless, reference-only private deal-making. Join Newnex for free <a href="http://www.newnex.io/" rel="noopener noreferrer" target="_blank">www.newnex.io</a>

Kazakhstan’s $1 Billion Venture Capital Fund: A Game-Changer for Tech Innovation

As 2024 draws to a close, we find ourselves reflecting on an incredible year marked by growth, challenges, and countless reasons to be thankful.This year at Newnex has been a critical year. Together with your unwavering support, we’ve brought our vision to life, welcoming over 60 VC and LP firms into our trusted network. Your trust and collaboration have propelled us forward, helping us begin the journey of shaping the future of venture capital investing. Key Milestones of 2024This year has been a journey of achievements:<ul><li>Growth &amp; Impact: We launched Newnex and expanded our verified network, empowering firms to transact privately through trusted connections.</li><li>Innovation &amp; Progress: We launched new features and refined our platform, ensuring seamless experiences and creating meaningful connections.</li><li>Collaboration &amp; Feedback: Your ideas, feedback, and energy have been at the heart of our progress, guiding our mission to make venture capital smarter and more connected.</li></ul>In an ever-evolving landscape of tech and venture capital, we’re building the future with a digital-first approach that respects the institutional rigor required in equity investing. Together, we are pioneering a new era for the industry. Our Gratitude<ul><li>To our members: Thank you for believing in us and being a vital part of the Newnex community. Your engagement and trust fuel our purpose.</li><li>To our partners: Your collaboration and shared vision have been essential in achieving our milestones. We’re honored to grow alongside you.</li><li>To our team: Your dedication, creativity, and passion are the driving forces behind our success. You inspire us every day.</li></ul> Looking Ahead to 2025As we step into 2025, we are filled with excitement for the opportunities ahead. Our commitment to innovation, collaboration, and serving our community remains stronger than ever. We can’t wait to unveil what’s in store as we continue to build a platform that empowers and connects. Warm Wishes for the HolidaysFrom all of us at Newnex, we wish you and your loved ones a joyful and peaceful holiday season. May your Christmas be filled with warmth and happiness, and may 2025 bring you success, growth, and new opportunities.Thank you for being an essential part of our journey. Here’s to a future of shared success!With gratitude and best wishes, Praveen &amp; The Newnex Team<a href="http://www.newnex.io/praveen" rel="noopener noreferrer" target="_blank">www.newnex.io/praveen</a>

Newnex wishes you a Merry Christmas and a Happy New Year

SandboxAQ, an enterprise SaaS company at the forefront of AI and quantum technology, has recently secured over $300 million in funding, propelling its valuation to an impressive $5.6 billion. This significant investment underscores the growing interest in quantum-inspired AI solutions across various industries and positions SandboxAQ as a leader in the emerging field of AI and quantum technologies. Founded by serial entrepreneur Jack D. Hidary in 2016 while at Alphabet Inc., SandboxAQ emerged as an independent entity in March 2022. The company's core focus lies in developing Large Quantitative Models (LQMs), which differ from traditional Large Language Models by using equations to generate data, offering a more efficient and accurate method for solving complex scientific and business problems. SandboxAQ's technology stack addresses critical challenges across multiple sectors, including healthcare, energy, chemicals, aerospace, defense, and cybersecurity. The company's key focus areas include: 1. AQBioSim: Accelerating drug discovery for neurodegenerative diseases.2. AQChemSim: Advancing materials science, particularly in battery design and chemical manufacturing.3. CardiAQ: A magnetocardiography (MCG) device for more precise cardiac diagnostics.4. AQNav: A real-time AI magnetic navigation system providing an alternative to GPS in denied environments. The recent funding round attracted a mix of prominent investment firms and individual investors, including Fred Alger Management, LLC, T. Rowe Price Associates, Inc., Mumtalakat, Parkway Venture Capital, Breyer Capital, Rizvi Traverse, S32, US Innovative Technology Fund, Guggenheim Investments, and Section 32. Notable individual investors include Eric Schmidt (former Google CEO), Marc Benioff (Salesforce CEO), David Siegel (Two Sigma co-founder), and Yann LeCun (AI scientist and Turing Award winner). Eric Schmidt, who serves as the chairman of SandboxAQ's board, emphasized the importance of LQMs in maximizing the return on investment from AI for leading global enterprises. Jim Breyer of Breyer Capital highlighted the significant growth potential and opportunity for LQMs across various industries, describing SandboxAQ as a "generation-defining company." SandboxAQ has established partnerships with several high-profile organizations, including Accenture, Deloitte, Vodafone Business, Softbank Mobile, Mount Sinai Health System, and the US Air Force. These collaborations aim to expand the company's customer base and drive innovation in quantum-inspired AI solutions. The company's team consists of 55 engineers, scientists, and technologists from diverse fields such as physics, chemistry, AI, neuroscience, cryptography, and mathematics. This multidisciplinary approach allows SandboxAQ to develop practical solutions for a broad range of use cases, including post-quantum cryptography modules to enable global companies to transition to a more secure cyber architecture. As the world enters what SandboxAQ calls the "third quantum revolution," the company is positioning itself at the forefront of AI and quantum software development. By addressing significant business and scientific challenges, SandboxAQ aims to transform industries and drive innovation in critical areas such as drug discovery, clean energy, and data security. With its recent funding and strong backing from industry leaders, SandboxAQ is well-positioned to accelerate the development of its LQMs and AI applications, recruit top talent, and expand its impact across various sectors. As the company continues to grow and innovate, it is poised to play a crucial role in shaping the future of AI and quantum technologies, potentially revolutionizing how businesses and governments approach complex computational challenges.

SandboxAQ: Pioneering the Next Era of AI and Quantum Technologies

In a stunning display of investor confidence, Databricks has secured a record-breaking $10 billion funding round, valuing the company at an impressive $62 billion. This unprecedented raise not only cements Databricks' position as a leader in the data analytics and AI space but also signals a significant shift in the tech investment landscape. Founded in 2013 by a team of data scientists and engineers from the University of California, Berkeley, Databricks has developed a unified data analytics platform that simplifies data engineering, collaborative data science, and machine learning. The company’s Lakehouse architecture combines the best features of data lakes and data warehouses, enabling organizations to process and analyze large datasets efficiently. With a customer base exceeding 10,000, including industry giants like Block and Shell, Databricks has demonstrated substantial growth and influence in the AI and data analytics sectors. The Funding RoundThe recent funding round, led by Thrive Capital with participation from Andreessen Horowitz, Insight Partners, and Iconiq Growth, is notable not only for its size but also for its strategic timing. The $10 billion investment is the largest U.S. venture capital deal of 2024 and second largest ever, only after SpaceX's, reflecting robust investor confidence in Databricks’ business model and growth trajectory. The capital is earmarked for several key initiatives: •	Employee Stock Option Liquidity: A portion of the funds will provide liquidity for employee stock options, enhancing talent retention and attraction by offering financial rewards to existing and prospective employees.•	Product Development: Investment in new AI products will enable Databricks to expand its offerings and maintain a competitive edge in the fast-paced AI industry.•	Acquisitions: The funding provides the financial flexibility to pursue strategic acquisitions, further broadening Databricks’ technological capabilities and market reach.•	International Expansion: With plans to extend its global footprint, Databricks aims to tap into emerging markets and diversify its revenue streams. Databricks is on track to achieve $3 billion in annual revenue by January and anticipates positive free cash flow, indicating a sustainable and profitable business model. Databricks' Market PositionIn the competitive landscape of data analytics and AI, Databricks faces formidable rivals, including Snowflake, Amazon Web Services (AWS), Google Cloud BigQuery, Microsoft, and MongoDB. Each competitor offers distinct solutions in data storage, processing, and analysis: •	Snowflake: Specializes in cloud-based data warehousing, providing scalable storage and analytics services.•	AWS: Offers a comprehensive suite of cloud services, including data storage and machine learning tools.•	Google Cloud BigQuery: Focuses on large-scale data analysis with a fully managed, serverless data warehouse.•	Microsoft: Provides integrated cloud services and AI solutions through its Azure platform.•	MongoDB: Delivers a general-purpose, document-based, distributed database built for modern application developers. Databricks differentiates itself through its Lakehouse architecture, which seamlessly integrates data engineering, data science, and machine learning into a single platform. This unified approach simplifies workflows and accelerates innovation, offering a compelling value proposition to enterprises seeking comprehensive AI solutions. The AI-Driven Market LandscapeThe AI market is experiencing explosive growth, with projections suggesting it will reach $1.81 trillion by 2030, growing at a CAGR of 37.3%. This growth is driven by increasing practical applications of AI technology across industries. Databricks is well-positioned to capitalize on this trend. As George Mathew notes, "Where is this high-quality data coming from? For the enterprise, it's going to come from a place like Databricks". The company's ability to provide high-quality data for AI and machine learning applications gives it a significant advantage in the evolving market. The FutureThe massive funding round provides Databricks with substantial resources to fuel its growth and innovation. The company can now accelerate its product development, expand its global presence, and potentially make strategic acquisitions to strengthen its market position. This funding also validates Databricks' strategy of focusing on AI-driven data analytics. As businesses increasingly rely on AI for decision-making and operations, Databricks is poised to play a crucial role in providing the necessary data infrastructure and tools.The substantial funding and strategic investments position Databricks favorably to capitalize on several emerging trends in the AI and data analytics markets: •	Generative AI: With the acquisition of MosaicML, Databricks has enhanced its capabilities in generative AI, enabling customers to build and deploy sophisticated AI models.•	Data Democratization: By simplifying data access and analysis, Databricks empowers a broader range of users within organizations to leverage data-driven insights, fostering a culture of innovation.•	Industry-Specific Solutions: Tailoring AI applications to specific industries allows Databricks to address unique challenges and opportunities across various sectors, enhancing its market appeal.•	Global Expansion: Entering new international markets diversifies revenue streams and mitigates risks associated with regional economic fluctuations. The raise may also accelerate Databricks' path to an IPO. While the company has the financial flexibility to choose its timing, the strong investor interest could push it towards going public sooner rather than later. Databricks' $10 billion funding round is more than just a financial milestone; it's a testament to the growing importance of AI-driven data analytics in the business world. As companies across industries seek to harness the power of their data through AI and machine learning, Databricks is positioning itself as the go-to platform for these critical needs. The company's journey from a big data tool provider to an AI-powered analytics leader showcases its ability to innovate and adapt. With this substantial funding, Databricks is well-equipped to shape the future of enterprise AI and data analytics, potentially redefining how businesses leverage their data in the AI era. As the AI market continues its rapid expansion, Databricks' success story serves as a beacon for the transformative potential of AI in enterprise technology. The coming years will likely see Databricks playing an increasingly central role in driving AI adoption and innovation across the business landscape. ---Join the Future of Venture Capital Investing with Newnex <a href="https://www.newnex.io/edit/blogs/www.newnex.io" rel="noopener noreferrer" target="_blank">Newnex</a> is redefining venture capital by fostering collaborative and private investing and fundraising between VCs (GPs), Limited Partners (LPs), and Startups. Newnex simplifies syndication and co-investment for institutional investors, with a mission to connect 5,000+ VC and LP firms and 100,000 venture scale startups on a trusted platform for seamless, reference-only private deal-making. Join Newnex for free <a href="http://www.newnex.io/" rel="noopener noreferrer" target="_blank">www.newnex.io</a>

DataBricks - generational AI company raised $10billion, second largest VC round ever

United States Cala Health, a San Mateo-based bioelectronic medicine company providing medical devices for managing chronic health conditions, raised $50 million. Founded by Kate Rosenbluth, Scott Delp, and Serena Wong, the company is backed by investors including Action Potential Venture Capital, Google Ventures, and Lux Capital. The funding was announced on December 16, 2024. LambdaTest, a San Francisco-based provider of cloud-based tools for cross-browser testing, secured $38 million. Founded by Asad Khan, Jay Singh, and Mayank Bhola, the company's investors include Avataar Venture Partners and Qualcomm Ventures. The announcement was made on December 16, 2024. RapidCanvas, an Austin-based no-code auto AI platform, raised $16 million. Founded by Kedar Samant, Rahul Pangam, and Uttam Phalnikar, the company is backed by Accel, Peak XV Partners, and Valley Capital Partners. The funding was disclosed on December 16, 2024. Silent Push, a Reston-based threat intelligence solution, secured $10 million. Founded by Ken Bagnall, the company's investors include StepStone Group and Ten Eleven Ventures. The announcement was made on December 16, 2024. Sublime Security, a Washington-based AI-powered email security platform, raised $60 million. Founded by Ian Thiel and Joshua Kamdjou, the company is backed by Citi Ventures, Index Ventures, and IVP. The funding was announced on December 16, 2024. Twelve Labs, a San Francisco-based multimodal AI platform for video foundation models, secured $30 million. Founded by Aiden Lee, Dave Chung, Jae Lee, SJ Kim, and Soyoung Lee, the company's investors include Databricks Ventures and Snowflake Ventures. The announcement was made on December 16, 2024. Vapi, a San Francisco-based AI services provider for group meetings, raised $20 million. Founded by John Dearsley and Nikhil Gupta, the company is backed by Abstract, Bessemer Venture Partners, and Y Combinator. The funding was disclosed on December 16, 2024. Ask Sage, a Bentonville-based GPT-driven AI assistant for government teams and corporations, secured $17 million. Founded by Nicolas Chaillan, the company's investors include Mucker Capital and Sapphire Ventures. The announcement was made on December 16, 2024. Aampe, a San Francisco-based mobile app engagement and personalization infrastructure provider, raised $18 million. Founded by Paul Meinshausen, the company is backed by Theory Ventures and Z47. The funding was announced on December 16, 2024. Electrified Thermal Solutions, a Medford-based company focused on decarbonizing industry through renewable heat solutions, secured $19 million. Founded by Daniel Stack and Joey Kabel, the company's investors include Clean Energy Ventures and EDP Ventures. The announcement was made on December 16, 2024. Azimuth AI, a Folsom-based embedded silicon product company for edge computing applications, raised $11.5 million. Founded by Praveen Yasarapu and Sridevi Badiga, the company is backed by AUM Ventures, Cyient, and Moneta Ventures. The funding was disclosed on December 16, 2024. United Kingdom Embeddable, a London-based startup, secured €6 million from OpenOcean. The funding announcement was made on December 16, 2024. Europe Perciv AI, a Dutch startup transforming radar perception for autonomous systems, raised €2.5 million. The funding announcement was made on December 16, 2024. Askel.ai, a Tallinn-based startup, secured €380,000 in a pre-seed funding round led by Superangel. The announcement was made on December 16, 2024.

$299 million Startup Funding Announcements 

BlackRock's annual Private Markets Outlook for 2025 highlights key trends and opportunities across various asset classes in the rapidly expanding private markets sector. The report projects significant growth, with the industry expected to expand from $13 trillion today to over $20 trillion by 2030. Private Debt- Continues to grow as a sizable and scalable asset class- Currently accounts for 10% of the $16.4 trillion alternative investment universe- Opportunities in asset-backed finance and global expansion, particularly in Europe and Asia-Pacific Infrastructure and AI- AI driving transformative shifts across industries- Investment opportunities across the entire AI value chain, including data centers and power infrastructure- AI data center capex expected to exceed $1.5 trillion by 2030 Private Equity- Resurgence in deal activity, jumping 21% in 2024 and exceeding pre-pandemic averages by 45%- Opportunities in healthcare, AI-driven LBOs, and the middle market- Increased focus on returning capital to investors Real Estate- Poised for growth after a challenging two-year downturn- Opportunities aligned with long-term structural trends such as aging demographics and demand for energy-efficient buildings- Asia-Pacific region offers compelling cyclical and structural opportunities BlackRock emphasizes that this new era of growth in private markets will be characterized by elevated investment activity, increased exits, lower financing costs, and growing demand for long-term capital. The firm expects all client segments, especially retail wealth, to increase their allocations to private markets as they seek long-dated, profitable assets. <a href="https://www.marketscreener.com/quote/stock/BLACKROCK-INC-176512022/news/BlackRock-2025-Private-Markets-Outlook-A-New-Era-of-Growth-48598644" rel="noopener noreferrer" target="_blank">https://www.marketscreener.com/quote/stock/BLACKROCK-INC-176512022/news/BlackRock-2025-Private-Markets-Outlook-A-New-Era-of-Growth-48598644/</a>

BlackRock 2025 Private Markets Outlook: $7 trillion growth projected

As 2024 draws to a close, the private equity landscape is showcasing a unique convergence of challenges and opportunities. Schroders Capital's Q4 2024 Private Equity Lens provides a view of the market dynamics, highlighting key trends, performance metrics, and areas of growth potential. 1. A Shift in Fundraising DynamicsPrivate equity fundraising in 2024 has seen a significant correction, with a cautious approach defining the market. While aggregate fundraising levels remain below the peaks of 2021–2022, this slowdown signals reduced competition and more attractive entry valuations. For investors, this environment creates fertile ground for identifying high-potential assets at reasonable prices.<ul><li>Fundraising activity reflects a healthy moderation, positioning the market for steady returns in 2025.</li><li>A recalibration in expectations could foster greater discipline in deal selection and portfolio construction.</li></ul> 2. Steady Deal Activity with an AI-Led UpsurgeDespite global economic headwinds, private equity deal-making has maintained momentum. Notably, the venture capital segment is experiencing a resurgence, driven by high-valuation rounds in artificial intelligence (AI). This trend underscores the sector's capacity for innovation and adaptation in a fast-evolving market.<ul><li>AI-related investments have propelled Series C valuations to approach 2021 highs.</li><li>Small- and mid-cap buyouts are trading at attractive discounts, providing a significant value proposition for investors.</li></ul> 3. Exit Markets StabilizingExit activity has begun to stabilize, particularly in sponsor-to-sponsor deals, even as trade sales struggle to regain momentum. This shift is accompanied by record secondary market activity, as Limited Partners (LPs) seek liquidity amid weaker exit conditions.<ul><li>Stabilization in exit markets provides reassurance for fund managers and investors.</li><li>The secondary market is poised to achieve $140 billion in deal volume by year-end, reflecting its role as a vital liquidity avenue.</li></ul> 4. Buyout Multiples and ValuationsThe recalibration of buyout multiples offers a favorable backdrop for investors. Small- and mid-sized buyouts are priced significantly lower than large-cap counterparts and public equities, creating a compelling case for allocation to this segment.<ul><li>Average entry EV/EBITDA for small- and mid-sized buyouts stands at 7.7x, a notable discount compared to large buyouts at 12.1x.</li></ul> 5. Resilience in Private Equity PerformancePrivate equity funds have demonstrated robust resilience, with buyout and venture capital funds returning to positive performance territory. This stability contrasts sharply with broader economic volatility, reinforcing private equity's appeal as a long-term asset class.<ul><li>Buyout funds have delivered steady, positive returns since 2022.</li><li>Venture capital funds have rebounded from the lows of 2022, driven by sectoral innovation.</li></ul> 6. The Role of Liquidity in a Challenging MarketThe heightened activity in the secondary market underscores the importance of liquidity for LPs navigating a constrained exit environment. With record volumes anticipated in 2024, this segment is expected to remain pivotal in private equity strategies. Preparing for a Promising 2025As private equity activity stabilizes, the industry is primed for growth opportunities in 2025. From recalibrated valuations to AI-driven innovation, the market offers fertile ground for informed investors. By navigating these dynamics strategically, stakeholders can capitalize on the evolving private equity landscape. This article leverages data and insights from Schroders Capital's Q4 2024 report, offering a forward-looking perspective on the trends shaping the private equity sector. For those positioned to act decisively, the next wave of growth is within reach. Download the Report here: <a href="https://www.schroders.com/en/malta/professional/insights/schroders-capital-private-equity-lens-q4-2024" rel="noopener noreferrer" target="_blank">https://www.schroders.com/en/malta/professional/insights/schroders-capital-private-equity-lens-q4-2024/</a>

Unlocking Opportunities in Private Equity: Insights from Schroders Capital Q4 2024 Report

In the rapidly changing world of finance and investing, a striking new trend is redefining traditional valuation models and investment strategies. I call it the "meme premium," a variable that's revolutionizing how we perceive market dynamics in the age of social media virality and cultural trends. Understanding the Meme PremiumI conceptualize the meme premium as the additional value or attention a company, product, or individual receives due to their viral popularity or meme status. This premium manifests in various ways, from inflated stock prices to accelerated product adoption and enhanced brand recognition. It's a testament to the growing influence of internet culture on real-world financial outcomes. The GameStop Saga: Meme Premium in ActionThe clearest example of the meme premium at work is the GameStop (GME) stock frenzy of early 2021. In a matter of days, GME's stock price surged from around $20 to a peak of $483, primarily driven by a coordinated effort from retail investors on the Reddit forum r/WallStreetBets. This unprecedented event not only caught Wall Street off guard but also demonstrated the collective power of internet communities in influencing market dynamics. Since then, other companies like AMC Entertainment, BlackBerry, and Bed Bath &amp; Beyond have experienced similar meme-driven price surges. As of November 2024, Palantir Technologies (PLTR) topped the list of best-performing meme stocks with a one-year return of 180.80%. These events have highlighted the growing influence of retail investors and the power of social media in shaping market trends. Quantifying the Meme PremiumWhile the concept of meme premium is relatively new, its effects are tangible and measurable. For instance, the Destiny Tech100 fund, which offers retail investors access to private tech companies, experienced a staggering 1,961% premium to its net asset value shortly after its debut. Despite having a portfolio worth only $52.6 million, the fund's market capitalization soared to almost $1.1 billion, demonstrating the power of the meme premium in action. The Elon Musk EffectNo discussion of the meme premium would be complete without mentioning Elon Musk, the CEO of Tesla and SpaceX. Musk's social media presence, particularly on X (formerly Twitter), has had a significant impact on Tesla's stock price and various other companies. His tweets have influenced stock prices of companies. Elon Musk's tweets have had a significant impact on stock prices and cryptocurrency markets, often causing dramatic fluctuations. Here are some notable examples: Lockheed Martin and Defense StocksOn November 26, 2024, Elon Musk criticized Lockheed Martin's F-35 fighter jet program on X (formerly Twitter), leading to a 3.8% drop in Lockheed's stock, wiping out nearly $5 billion in market value. His comments also affected other defense stocks like Northrop Grumman and RTX. Etsy SurgeOn January 26, 2021, Musk tweeted about purchasing an item on Etsy for his dog. This simple tweet caused Etsy's stock to surge in early morning trading, demonstrating the market's sensitivity to his social media activity. Dogecoin VolatilityMusk's tweets have frequently influenced the price of Dogecoin. For instance, on May 24, 2021, his tweet encouraging development ideas for Dogecoin led to a nearly 5% spike in its value against Bitcoin. His ongoing support and tweets about Dogecoin have often resulted in significant price movements. These instances highlight the considerable influence Musk wields over financial markets through his social media presence and meme posts and stocks. Implications for Venture Capital and InvestingThe rise of the meme premium poses both opportunities and challenges for venture capitalists and investors: 1. Shifting Valuation Metrics: Traditional valuation methods may need to be reconsidered to account for the potential meme premium a company might command. VCs and investors must now factor in a company's potential for viral popularity alongside traditional financial metrics. 2. Increased Volatility: Meme-driven investments tend to be highly volatile, requiring investors to have a higher risk tolerance and potentially shorter investment horizons. This volatility can lead to both spectacular gains and devastating losses in short periods. 3. New Marketing Strategies: Companies might increasingly focus on building a meme-worthy brand or cultivating a CEO with a strong social media presence to capture the meme premium. This shift could change how startups approach marketing and public relations. 4. Democratization of Investing: The meme stock phenomenon has led to increased retail investor participation, potentially democratizing access to high-growth investment opportunities. Platforms like Newnex, which connect institutional VCs and LPs to syndicate deals, may play a crucial role in bridging the gap between traditional investing and this new paradigm. The Role of Social Media and Retail Investors The meme premium was largely driven by retail investors coordinating through social media platforms. These investors often see themselves as underdogs taking on the financial establishment, using platforms like Reddit to discuss stocks, share research, and coordinate investment strategies. This collective action can lead to significant price movements, challenging the dominance of institutional investors. As meme culture continues to permeate every aspect of our digital lives, its influence on financial markets and venture capital is likely to grow. The meme premium represents a new frontier in valuation and investment strategy, one that blends traditional financial analysis with an understanding of internet culture and social dynamics. While the long-term permeability of meme-driven investments remains to be seen, it's clear that in today's market, the power of memes cannot be ignored. As we move forward, successful investors and venture capitalists will need to navigate this new landscape, balancing fundamental analysis with an appreciation for the cultural forces that are creating and sustaining a meme premium. In this evolving financial ecosystem, recognizing and adapting to the reality of the meme premium, investors are required to update to thrive in this new era of finance, where viral popularity can be just as important as traditional financial metrics. ---Join the Future of Venture Investing with Newnex<a href="https://www.newnex.io/edit/blogs/www.newnex.io" rel="noopener noreferrer" target="_blank">Newnex</a> is redefining venture capital by fostering seamless collaboration between General Partners (GPs), Limited Partners (LPs), and startups. Designed for institutional investors, our platform streamlines syndication and co-investment across both direct and LP deals. With a mission to unite over 5,000 VC and LP firms on a single, unified platform, Newnex enables effortless private deal-making based on reference-only transactions. Join Newnex for free <a href="http://www.newnex.io/" rel="noopener noreferrer" target="_blank">www.newnex.io</a>

The Meme Premium: How Internet Culture is Reshaping Venture Capital and Market Valuations

Venture capital (VC) firms are increasingly turning to secondary markets as a solution to long-standing liquidity challenges, aiming to improve distributions and enhance investor returns. This strategic pivot represents a shift from traditional reliance on IPOs and acquisitions toward private sales of startup shares, which offer greater flexibility in a volatile financial landscape. The Rise of Secondary Markets in Venture CapitalSecondary markets have seen significant growth in their role within venture capital. In 2020, VC transactions accounted for just 5% of the secondary market. By 2024, this share climbed to 14%, signaling an industry-wide shift. Secondary transactions primarily involve selling stakes in growth-stage companies, providing quicker liquidity and diversifying exit strategies. Why Venture Capital Needs Secondary MarketsVenture capital returns have been underperforming in recent years. In Q2 2024, the sector posted a return of -1.55%, lagging behind benchmarks like the S&amp;P 500 and Nasdaq Composite. Historically, VC outperformed the market with a 25-year average annual return of 18.96%, but that margin has shrunk over the past 15-, 10-, 5-, and 3-year periods.This underperformance has intensified pressure from LPs for better liquidity and results. Key metrics like the Distributions to Paid-In Capital (DPI) ratio have declined since 2021, exacerbated by a stagnant IPO market and heightened regulatory scrutiny of mergers and acquisitions. How Secondary Markets Create LiquiditySecondary markets enable venture capital firms to monetize their investments without waiting for public exits. Strategies such as sponsor-to-sponsor transactions, where one VC firm sells stakes to another, help avoid the high-risk “IPO-or-bust” model. This approach offers more control over exit timing and aligns VC practices with private equity-style fund management.Secondary funds often raise billions to acquire stakes in mature, high-growth companies. This portfolio diversification not only addresses liquidity challenges but also delivers stable distributions to LPs. Secondary market investments are proving to be an effective strategy, with many funds achieving strong returns despite a challenging environment. Challenges in the Secondary MarketWhile secondary markets offer significant benefits, they also come with challenges:<ul><li>Valuation Complexity: Accurately pricing startup shares can be difficult due to market volatility and limited financial transparency.</li><li>Discounts on Transactions: Secondary market deals are often executed at a discount, which can impact overall returns.</li></ul>Despite these hurdles, the growing emphasis on liquidity, fund management, and LP distributions is driving innovation in the secondary market space. The Future of Venture Capital: Adapting to ChangeThe adoption of secondary markets signifies a new era for venture capital, marked by active portfolio management and diversified exit strategies. As traditional paths like IPOs become less reliable, secondary transactions provide a viable alternative for maintaining liquidity and maximizing investor returns.By leveraging secondary markets, venture capital firms can stay competitive in an ever-evolving financial landscape. This innovative approach ensures sustained value creation for investors while addressing the liquidity and return challenges of modern VC investing. ---Join the Future of Venture Investing with Newnex<a href="https://www.newnex.io/edit/blogs/www.newnex.io" rel="noopener noreferrer" target="_blank">Newnex</a> is redefining venture capital by fostering seamless collaboration between General Partners (GPs), Limited Partners (LPs), and startups. Designed for institutional investors, our platform streamlines syndication and co-investment across both direct and LP deals. With a mission to unite over 5,000 VC and LP firms on a single, unified platform, Newnex enables effortless private deal-making based on reference-only transactions. Join Newnex for free <a href="http://www.newnex.io/" rel="noopener noreferrer" target="_blank">www.newnex.io</a>

How Venture Capital Firms Are Leveraging Secondary Markets for Liquidity and Higher Returns

In the world of startups, venture capital often seems like the holy grail. However, a growing number of entrepreneurs are choosing a different path: bootstrapping. This approach, which involves building a business without external funding, offers unique advantages and challenges. The Power of Self-Funding Bootstrapping allows entrepreneurs to maintain complete control over their company's direction, culture, and values. This autonomy can be invaluable, especially when the founder's vision doesn't align with typical investor expectations. Many successful companies have bootstrapped their way to significant acquisitions, retaining 100% ownership until the exit. Strategies for Success Focus on Revenue: Successful bootstrapped businesses often generate revenue quickly and solve immediate, painful problems for customers willing to pay. Some platforms build their business models around immediate monetization by taking a small cut of each transaction. Niche Domination: Start by focusing on a specific, underserved segment of your target market. Many successful companies began with a narrow focus before expanding to serve a broader audience. Creative Problem-Solving: Limited resources force bootstrapped startups to find innovative solutions. Some companies have found success by focusing on doing a few things exceptionally well, resulting in products known for their simplicity and ease of use. Building a Strong Team Attracting talent without high salaries can be challenging, but many bootstrapped companies have found success by offering non-monetary benefits. Some startups attract talent by openly sharing the company's revenue, salaries, and equity distribution. Defining Your Own Success Bootstrapping allows entrepreneurs to define success on their own terms. Whether it's building a profitable lifestyle business, creating a company with positive impact, or eventually selling for a significant sum, the bootstrap path offers flexibility and control. In conclusion, while bootstrapping may not be suitable for every business, it offers a viable alternative to the venture capital route, allowing entrepreneurs to build resilient, profitable companies while maintaining their vision and independence.

Bootstrapping: The Path to Business Success Without Venture Capital

Atomico published <a href="https://www.stateofeuropeantech.com/keynote" rel="noopener noreferrer" target="_blank">The State of European Tech 2024</a> report, a comprehensive overview of the European tech ecosystem's growth, challenges, and future prospects over the past decade. Europe's tech ecosystem has experienced remarkable growth over the past decade, according to the State of European Tech 2024 report. Since 2015, the continent's tech talent pool has expanded sevenfold, while total investment volume has increased tenfold, reaching approximately $45 billion in 2024. The number of companies valued at over $1 billion has grown from 72 in early 2015 to 358 in 2024, demonstrating Europe's ability to nurture startups from inception to IPO. The report highlights significant improvements in the entrepreneurial culture. A majority of experienced founders note positive changes in various aspects of the tech landscape, with 79% seeing improvement in access to capital and 77% noting better availability of talent. However, challenges remain. The report identifies a $375 billion growth stage funding gap compared to the US. There's also a concerning trend of European founders considering starting their companies in the US, with 23% indicating they would do so today, although 72% would still choose to stay in Europe. The report outlines six key areas for improvement, including addressing the low 0.007% share of European pension funds invested in European VCs. Initiatives such as the Tibi initiative, WIN-Initiative, and Mansion House Compact are emerging to tackle these challenges. The European tech ecosystem is increasingly focused on solving major global challenges. Notably, 11% of US tech companies have European founders, while only 6% of European tech companies have US founders, indicating a flow of talent from Europe to the US. Looking ahead, the report sets ambitious goals for the next decade, including the creation of over 15 million new tech jobs, the emergence of trillion-dollar companies, and an added ecosystem value exceeding $5 trillion. These projections underscore the potential for continued growth and innovation in European tech, provided the identified challenges are effectively addressed. As the ecosystem matures, the emphasis on sustainable growth, equal access to opportunities, and strategic policy initiatives will be crucial in realizing the full potential of European tech. The next decade promises to be transformative, with the potential to reshape Europe's economic landscape and its role in global innovation. In summary: • Europe's tech talent pool has grown 7x since 2015 • Total investment volume increased 10x in 10 years, reaching ~$45B in 2024 • Number of $1B+ valued companies in Europe grew from 72 in 2015 to 358 in 2024 • 79% of experienced founders see improvement in access to capital • 77% note better availability of talent • $375B growth stage funding gap compared to the US • 23% of European founders would start their company in the US today • 72% of European founders would still choose to stay in Europe • Only 0.007% of European pension funds are invested in European VCs • 11% of US tech companies have European founders, while 6% of European tech companies have US founders • Key initiatives addressing challenges: Tibi initiative, WIN-Initiative, Mansion House Compact • Goals for the next decade:&nbsp;- Creation of 15M+ new tech jobs&nbsp;- Emergence of trillion-dollar companies&nbsp;- Added ecosystem value of $5T+ • Focus on solving major global challenges and creating role models across sectors and countries

The State of European Tech 2024: A Decade of Growth and Future Potential

The European Union’s ambition to lead in green tech and innovation has hit a wall with the troubles facing two of its most prominent startups: Northvolt, the battery manufacturing giant, and Lilium, the electric vertical take-off and landing (eVTOL) pioneer. Both companies have been hailed as symbols of Europe's technological progress, receiving substantial public funding and private investments. Yet, they are now grappling with financial crises that expose the fragile foundation of Europe’s tech ambitions. What Went Wrong at Northvolt?Northvolt, once poised to challenge China's dominance in battery production, has stumbled under the weight of its own aspirations. Despite raising over $15 billion from investors including Volkswagen and JPMorgan, the company is struggling to deliver commercially viable results. Commercial Failures:1. Unrealistic Scaling Goals:&nbsp;&nbsp;&nbsp;Northvolt aimed to rapidly scale up production at its flagship gigafactory in Skellefteå, Sweden. However, the company underestimated the complexities of ramping up manufacturing at scale, leading to production delays and quality issues.&nbsp; 2. Missed Market Expectations:&nbsp;&nbsp;Automotive giants like BMW and Volvo expected high-quality, cost-competitive batteries. Northvolt’s inability to deliver on time forced customers to cancel contracts, such as BMW’s $2 billion order, which significantly impacted the company’s financial stability.a 3. Cost Challenges:&nbsp;&nbsp;&nbsp;Competing with cheaper Asian manufacturers, particularly those in China, proved a daunting challenge. Northvolt's batteries were more expensive to produce due to high labor costs, energy costs in Europe, and inefficiencies in scaling production. 4. Lack of Diversified Revenue Streams:&nbsp;&nbsp;Unlike competitors that serve multiple sectors, Northvolt remained overly reliant on the automotive industry, making it vulnerable to fluctuations in demand or customer pullouts. What Went Wrong at Lilium?Lilium’s ambitious vision of eVTOL air taxis captivated investors and governments alike, but its commercial strategy fell short in several critical areas. The company’s failure to secure funding and its decision to file for insolvency have highlighted deeper issues in its business model. Commercial Failures:1. Unrealistic Product Timelines:&nbsp;&nbsp;Lilium promised to bring its eVTOL aircraft to market quickly, but the complexities of certification and technological hurdles slowed progress. This delay eroded investor confidence and put the company at odds with its funding needs. 2. High Development Costs:The development of eVTOL aircraft is extraordinarily capital-intensive, requiring billions of euros in funding. Despite raising a total of approximately $375 million from eight funding rounds, including significant investments from Tencent, Atomico, and Earlybird, Lilium faced mounting operational and development costs that far outpaced its available resources. 3. Limited Market Demand:&nbsp;&nbsp;The concept of urban air mobility remains speculative. Despite initial hype, practical challenges—such as infrastructure requirements, air traffic control integration, and regulatory hurdles—cast doubt on the market’s near-term viability. This uncertainty discouraged potential customers and investors. 4. Unproven Technology:&nbsp;&nbsp;Lilium’s reliance on a unique ducted fan design for its aircraft raised technical and efficiency questions. Many industry observers were skeptical about whether the technology could meet the range, speed, and payload requirements to make the business commercially viable. Public Funding ReceivedBoth companies were bolstered by substantial public funds intended to drive innovation and sustain Europe’s technological edge: Northvolt:&nbsp;- $1 billion from the European Investment Bank.&nbsp;- €902 million approved by the European Commission for a German battery plant.&nbsp;- SEK 625 million (€55 million) in Swedish government grants.&nbsp;- Investments from Swedish pension funds, totaling SEK 5.8 billion (€513 million). Lilium:&nbsp;- Initially approved for a €220 million funding commitment from the French government, contingent on production facilities in France.&nbsp;- The company’s German funding request for €100 million was ultimately denied. Key Private InvestorsBoth startups attracted significant venture capital investments, often from funds backed by public money:- Northvolt: Backed by Volkswagen, Goldman Sachs, and EIT InnoEnergy, the EU-backed energy innovation fund.- Lilium: Received funding from Atomico, which itself benefits from support by the European Investment Fund (EIF). The Broader European ContextThe struggles of Northvolt and Lilium highlight systemic issues in Europe’s ability to support its tech sector: 1. Funding Gaps: Europe lags significantly behind the U.S. in venture capital funding. In 2023, European startups attracted $45 billion, compared to $120 billion in the U.S. 2. Policy Deficiencies: Unlike the U.S.’s Inflation Reduction Act, which provides robust incentives for clean energy, Europe’s support systems lack clarity and scale. Bureaucratic hurdles and slow approval processes hinder the ability to respond quickly to market needs.﻿The crises at Northvolt and Lilium underscore the need for Europe to rethink its tech funding strategies. While public money has flowed into promising ventures, it has not been matched by sustained private investment or a supportive ecosystem for growth. Both companies' failures point to larger structural issues, including the difficulty of scaling complex technologies, the high costs of operating in Europe, and limited market readiness for futuristic products.

European Tech Dream Stumbles: What Went Wrong with Northvolt and Lilium, Their Public Funding, and the Broader Context

Europe stands at a critical juncture, facing significant challenges to its economic competitiveness and future prosperity. A new report outlines a comprehensive strategy to reignite sustainable growth and innovation across the European Union. We, at Newnex, are summarising the salient points of the report as a quick overview. The EU has long prided itself on combining economic integration with social inclusion and environmental protection. However, persistent slow growth and lagging productivity compared to the United States and China are threatening Europe's ability to maintain its high living standards and ambitious goals. Three key transformations are identified as crucial for Europe's future: 1. Accelerating innovation and finding new growth enginesEurope is being squeezed between weakening foreign demand and rising competition from China, while also falling behind in advanced technologies. Only four of the world's top 50 tech companies are European, and the EU's share of global tech revenues has declined. Urgent action is needed to boost innovation, particularly in breakthrough technologies like artificial intelligence. 2. Reducing energy costs while continuing decarbonizationDespite recent price declines, European companies still face electricity prices 2-3 times higher than in the US, and natural gas prices 4-5 times higher. The transition to clean energy presents both challenges and opportunities for European competitiveness. 3. Increasing security and reducing dependenciesRising geopolitical risks and vulnerabilities in critical supply chains necessitate a more coordinated European approach to economic security and strategic autonomy. The report identifies three main barriers hindering Europe's progress: 1. Lack of focus: Despite articulating common objectives, the EU often fails to set clear priorities or follow through with coordinated policy actions. 2. Inefficient use of common resources: Large collective spending power is diluted across multiple national and EU instruments, reducing impact. 3. Insufficient coordination: The EU's slow and fragmented policymaking process struggles to produce the coordinated, multi-faceted responses needed in today's complex global environment. To address these challenges, the report proposes a new industrial strategy focusing on: 1. Closing the Innovation Gap&nbsp;&nbsp;- Europe must focus on advanced technologies to close its innovation gap with the U.S. and China, particularly in AI and digital technologies.&nbsp;&nbsp;- Encouraging R&amp;D and supporting new tech companies can drive innovation, shifting away from the static industrial structures currently hindering growth.&nbsp;&nbsp;- To attract talent and financing, Europe must streamline regulatory burdens and improve its capital markets. 2. A Joint Decarbonization and Competitiveness Plan&nbsp;&nbsp;- The EU’s high energy costs impact its industries' competitiveness, making a coordinated decarbonization strategy essential.&nbsp;&nbsp;- While Europe leads in clean technologies, competition from countries like China pressures the EU to maintain its edge.&nbsp;&nbsp;- Addressing energy security and promoting clean technology can reduce dependencies on external energy sources and support growth. 3. Enhancing Security and Reducing Dependencies&nbsp;&nbsp;&nbsp;- Europe's dependency on external supplies for critical resources (e.g., rare earths from China) is a vulnerability in a volatile geopolitical climate.&nbsp;&nbsp;- Building a "foreign economic policy" within the EU to secure strategic resources and invest in defense industries is essential for sustainable growth. 4. Overcoming Barriers&nbsp;&nbsp;- Fragmented policies and lack of focus weaken Europe’s competitiveness. Coordinated efforts are needed across innovation, defense, and trade.&nbsp;&nbsp;- Reducing regulatory burdens for SMEs and enabling high-growth companies to scale within Europe will help retain talent and capital. 5. Financing Investments&nbsp;&nbsp;- To fund necessary transitions in technology, energy, and defense, Europe must increase investment rates and mobilize both private and public resources.&nbsp;&nbsp;- Initiatives like the Capital Markets Union can channel household savings into productive investments, providing financial backing for Europe's transformation. 6. Strengthening Governance&nbsp;&nbsp;- Reforms to the EU’s governance model are critical for effective policy coordination. Streamlined decision-making will allow the EU to tackle cross-border challenges more efficiently.&nbsp;&nbsp;- Embracing flexibility in policy implementation and reducing unnecessary regulations can empower industries while maintaining social cohesion. The strategy emphasizes the need for coordinated action across multiple policy areas, from fiscal incentives to trade policies and foreign economic strategies. It also calls for a rigorous application of the subsidiarity principle, reducing regulatory burdens where appropriate. Crucially, the report underscores that raising productivity is fundamental to creating the fiscal space needed for public investment in key European public goods. Some degree of joint funding for breakthrough innovation, defense procurement, and cross-border infrastructure may be necessary to maximize productivity and competitiveness. While acknowledging the difficult timing and potential trade-offs involved, the report argues that procrastination is no longer an option. Europe must move forward with reforms to preserve its welfare, environment, and freedom. With unity and democratic backing, the EU can find the strength to implement the necessary changes and secure a competitive, prosperous future for all Europeans. For Europe to secure its competitive position on the global stage, it must embrace an ambitious strategy rooted in innovation, sustainability, and strategic autonomy. Through focused investments and coordinated policies, Europe can drive productivity and protect its social and economic values amidst the challenges ahead. <a href="https://commission.europa.eu/document/download/97e481fd-2dc3-412d-be4c-f152a8232961_en?filename=The%20future%20of%20European%20competitiveness%20_%20A%20competitiveness%20strategy%20for%20Europe.pdf" rel="noopener noreferrer" target="_blank">Link to the full report</a>

A Summary of the "The Future of European Competitiveness" report by Mario Draghi

We've all heard the classic advice on founding and scaling a startup: find the right co-founders, raise venture capital, and build key relationships early to ease fundraising, recruitment, and growth. But the truth is that scaling a startup often means confronting the hard realities of life. Not everyone has a co-founder—or a good one. For every productive co-founder relationship, there are plenty that don’t work out. Some co-founders may lack motivation, some may struggle to execute, and others face personal challenges that impact their work. The fact is, startups are built by people, and people are complex. So, instead of viewing scaling purely as a growth exercise, think of it as a process of stakeholder risk mitigation. Anticipate potential risks: the impact of a mismatched co-founder, the fallout from a poor hire, or a venture capitalist's hesitation to invest. Think from their perspectives. Identify what each stakeholder risks in joining your journey, then actively propose strategies to mitigate those risks. Make it easy for them to say "yes" by demonstrating that you've considered and addressed the challenges. In other words, scale by thinking for others. When thinking about risk mitigation in practical terms, especially when scaling a startup, it’s essential to recognize the motivations and risk tolerance of each stakeholder. Here’s how this approach can work across different areas: 1. Hiring: Startups often lack the brand prestige, competitive salaries, and stability of established companies. But by understanding a candidate’s motivations—whether they’re seeking autonomy, creative input, rapid growth, or financial gain—you can tailor a compelling offer that aligns with these drivers. For instance, if they’re motivated by independence, offer a clear pathway to lead initiatives. If it’s monetary, structure a competitive equity package or performance-based incentives. Once you secure the hire, document what persuaded them to join. This ensures you stay aligned with their motivations over time, promoting longevity and satisfaction in the role. 2. Selecting or Compensating for a Co-Founder: Many entrepreneurs partner with friends or acquaintances as co-founders, often due to shared interests or life circumstances. But the reality is that not all co-founders are equally invested in the startup's risks and rewards, and not everyone will handle the journey’s inevitable challenges. If you don’t have a co-founder, it doesn’t mean scaling is off the table; it means building additional layers of support. Start by hiring a strong second-in-command, someone like a “Sheryl Sandberg” to your “Mark Zuckerberg,” who can bring stability and help balance the load. This structure reduces reliance on a single person, making the company more resilient and attractive to investors. 3. Securing Venture Capital: Venture capitalists face a high degree of risk, particularly with team-related uncertainties. Their biggest concern is often not just the product or market risk but the risk within the founding team itself. This is why VCs tend to prefer companies with co-founders, as it provides continuity if something happens to one founder. If you're a solo founder, address this by demonstrating a well-rounded, capable team that can maintain momentum if you’re unavailable. Offer solutions that de-risk their investment: show a reliable operational plan, clarify succession strategies, and present a capable, diversified team. Doing so not only increases your chances of fundraising success but reassures VCs that you’ve anticipated and mitigated key risks, making you a stronger investment choice. <blockquote>Adopting a mindset of risk mitigation —thinking from others’ perspectives and addressing their potential concerns—can take you far in building a successful, resilient company. This approach doesn’t just apply to hiring or securing investment; it’s invaluable for securing clients, expanding into new markets, and ultimately planning for a successful exit.&nbsp;</blockquote> Exit strategy, in particular, deserves a separate conversation. But the essence is this: by creating pathways for various exit opportunities, you increase the company’s value and flexibility. Sometimes, you can position your company as an asset to potential acquirers by showing them that acquiring you will make them stronger than going it alone. When this value is evident, an exit becomes not just possible but almost inevitable. In short, by focusing on risk mitigation and strategically aligning with others’ goals, you can build a foundation for growth, resilience, and the eventual realization of the company’s full potential.

For Resilient Startup Scaling, Embrace Stakeholder Risk Mitigation

Venture capital (VC) is a powerful funding source for startups with high growth potential. As a founder, understanding how VC works and how decisions are made is crucial for navigating the fundraising landscape and scaling your business. How Venture Capital WorksVenture capital firms invest money into promising startups in exchange for equity. These firms raise funds from limited partners (LPs), such as wealthy individuals, pension funds, and institutions. The VC firm then deploys this capital across a portfolio of startups, aiming to generate significant returns. The Investment Process1. Pitch and Due Diligence: Founders present their business to VC firms, often through warm introductions. If interested, the VC conducts thorough due diligence on the startup.2. Term Sheet: Upon deciding to invest, the VC presents a term sheet outlining investment terms, including valuation and equity stake.3. Funding Rounds: Startups typically go through multiple funding rounds (Seed, Series A, B, C, etc.) as they grow, with each round involving larger investments.4. Board Seats: VCs often take board seats to actively guide the company's strategic direction.5. Exit: VCs target a profitable exit, often through acquisition or IPO, ideally within 5 to 10 years. However, many companies take longer to reach this stage, which is accepted (tolerated) as long as the startup maintains strong growth. A clear path to exit is a critical factor in deal assessment, helping VCs gain the confidence needed to invest. What VCs Look For- Large market opportunity- Scalable business model- Strong founding team- Traction and growth metrics- Competitive advantage Pros and Cons for FoundersPros:- Access to significant capital- Expertise and networks- Credibility boostCons:- Dilution of ownership- Pressure to grow rapidly- Loss of some control Stages of VC Funding- Pre-seed: Very early stage, often for product development- Seed: Initial funding to get operations off the ground- Series A, B, C: Progressive rounds for scaling and expansion Venture Capital Decision-Making ProcessThe VC decision-making process is a structured approach that firms use to evaluate potential investments. Understanding this process can help founders better prepare and navigate their fundraising journey. Discovery PhaseIn this initial stage, VCs become aware of potential investment opportunities through various channels:- Warm introductions from trusted sources- Attending startup events and pitch competitions- Inbound applications or cold outreach from founders- Proactive research and tracking of promising startupsVCs often use tools and databases to monitor startups' growth metrics and industry trends. As a founder, making yourself visible in the startup ecosystem and building relationships early can be beneficial. Capture PhaseOnce a startup is on a VC's radar, it enters their tracking system:- The startup's information is added to the VC firm's Customer Relationship Management (CRM) system- Associates or analysts gather initial data about the company- Some firms may begin engaging with the startup by sharing relevant research or insightsFounders should ensure that the information they share is accurate and consistent across various platforms. Shameless Plug for Newnex:Newnex is an all-in-one platform where VCs can efficiently receive deals, engage with founders, and seamlessly refer opportunities to other VCs. By moving beyond traditional, siloed CRM systems, Newnex fosters a truly collaborative and connected experience. Our ambition is to shape the future of institutional investing, empowering VCs, LPs, and founders with a streamlined, future-ready approach to deal-making. Initial ReviewAt this stage, junior members of the VC firm (often associates or analysts) conduct a preliminary assessment:- They review the startup's pitch deck and available information- They may have initial conversations with the founding team- The goal is to determine if the opportunity aligns with the firm's investment thesis and warrants further investigationIt's important for founders to engage professionally with all team members, as these junior staff often play a crucial role in championing deals internally. Deep DiveIf a startup passes the initial review, the VC firm conducts a more thorough analysis:- A partner or senior team member typically leads this phase- They examine the startup's metrics, competitive landscape, and key areas of interest in detail- The team may conduct customer references, market research, and financial analysis- This process often results in an internal investment memo summarizing all findingsFounders should be prepared to provide detailed information and facilitate any due diligence requests during this phase. Investment Committee PresentationThe final decision-making stage involves presenting the investment opportunity to the firm's investment committee:- The lead partner or deal team presents the startup to the committee- They discuss the opportunity, potential risks, and expected returns- The committee may ask for additional information or clarificationThe exact decision-making process varies among firms. Some use a voting system, while others rely on consensus or give certain partners veto power. Decision and Term SheetBased on the investment committee's decision, the VC firm will:- Decline to invest and communicate their reasons to the founder- Express interest in investing and issue a term sheet outlining proposed investment terms- Request additional information or time to make a decisionIf a term sheet is issued, this initiates the negotiation phase, leading to the final investment agreement if both parties reach mutually acceptable terms. Post-Investment InvolvementAfter investing, VCs typically:- Take a board seat or observer rights- Provide ongoing support and guidance to the startup- Monitor the company's progress and help with future fundraising rounds Timeline:The timeline for deal-making can range widely, from as short as 3-4 weeks to over a year. For highly sought-after startup deals, where multiple investors are actively aligning to make it happen, deals might close in as little as four weeks. However, the typical timeline for a solid deal is usually around 4-6 months. For deals that may not be a perfect fit or lack clear growth indicators, the process could extend beyond a year. Founders should begin engaging with potential investors early—well before officially launching their fundraising efforts—to keep them informed and foster interest ahead of the formal process. Understanding these basics and the decision-making process can help founders approach VC funding strategically, aligning it with their startup's growth trajectory and long-term vision. It's important to note that while this outlines a typical process, each VC firm may have its own unique variations and criteria for decision-making. By being well-prepared and informed, founders can increase their chances of securing venture capital funding and building successful partnerships with investors.---<a href="https://newnex.io/praveen" rel="noopener noreferrer" target="_blank">Praveen Paranjothi </a>founded Newnex after&nbsp;investing over $500 million in LP and direct venture capital across top-tier firms such as the European Investment Fund, Siemens Pensions, and serving on 15+ boards across Europe, Israel, the US, and India. His vision: to bring greater efficiency to institutional venture capital investing. If public markets can operate seamlessly, so can private markets—and that’s the mission behind Newnex. We invite startups, VCs, LPs, CVCs, and family offices to join us in shaping the future of institutional investing: <a href="http://www.newnex.io" rel="noopener noreferrer" target="_blank">www.newnex.io</a> Read more about <a href="https://www.newnex.io/blogs/venture-capital/what-is-philanthropic-venture-capital-aka-venture-philanthropy" rel="noopener noreferrer" target="_blank">Venture Philanthropy</a>, maybe that's an interesting instrument for your startup.

Venture Capital: An Essential Guide for Startup Founders Raising from VCs

Philanthropic venture capital is an innovative funding approach that combines principles from traditional venture capital with philanthropic goals. This model aims to support and accelerate the development of solutions to pressing social and medical challenges, particularly in areas where traditional funding sources may be limited or risk-averse. Key Features of Philanthropic Venture Capital 1. Patient Capital: Unlike traditional venture capital, philanthropic VC offers longer investment horizons, often aligning with the extended timelines required for drug development or complex social interventions.2. Focus on Social Impact: While financial returns are considered, the primary goal is to create significant social or medical impact rather than maximizing profits.3. Expertise and Resources: Philanthropic VCs often provide strategic guidance, access to networks, and specialized knowledge in addition to financial support.4. Risk Tolerance: These funds are typically more willing to invest in high-risk, early-stage ventures that have the potential for substantial societal benefits.5. Non-Dilutive Funding: In some cases, philanthropic VC can offer non-dilutive funding, allowing startups to retain more control over their ventures. Advantages of Philanthropic Venture Capital - Bridging Funding Gaps: It addresses critical funding shortages, especially in areas like early-stage drug discovery or social enterprises.- Attracting Additional Investment: The involvement of a philanthropic VC can signal credibility and attract larger investors.- Specialized Knowledge: Many philanthropic VCs focus on specific areas (e.g., multiple myeloma research), providing deep domain expertise.- Long-Term Vision: The extended investment horizons allow for the pursuit of ambitious, transformative projects. Philanthropic venture capital has been successfully applied in various sectors: - Healthcare: The Cystic Fibrosis Foundation's investment in drug development led to breakthrough treatments.- Education: Funds like the NewSchools Venture Fund have supported educational initiatives.- Social Enterprises: Organizations like the Robin Hood Foundation invest in poverty-fighting initiatives. While philanthropic venture capital offers many benefits, it's not without challenges: - Measuring Impact: Defining and quantifying social returns can be complex.- Potential Conflicts: Balancing financial sustainability with social mission can create tensions.- Scalability Concerns: Some critics argue that this model may not be easily scalable to address large-scale social issues. Philanthropic venture capital represents a powerful tool for driving innovation and social change, particularly in areas underserved by traditional funding mechanisms. By combining financial resources with strategic support and a focus on long-term impact, this model has the potential to accelerate the development of critical solutions in healthcare, education, and other vital sectors.

What is Philanthropic Venture Capital aka Venture Philanthropy

At Newnex, we are constantly focused on finding ways to support startups and investors in scaling both businesses and investments successfully. To help with this, we’ve created a comprehensive checklist designed to guide startup founders through the various stages of growth: pre-seed, seed, Series A, and Series B. Each stage comes with its own unique set of priorities, and this checklist offers a clear, structured roadmap to help founders and investors stay focused on the specific goals that matter most at each stage of scaling. It's a practical tool to ensure a single-minded focus on driving growth and achieving sustainable success. Pre-Seed Stage (Idea Validation &amp; Early Traction) 1. Foundational Setup&nbsp;&nbsp;- Establish the core founding team (complementary skills, shared vision).&nbsp;&nbsp;- Validate problem-solution fit with potential customers.&nbsp;&nbsp;- Create a minimum viable product (MVP) to test market demand.&nbsp;&nbsp;- Legal structure: Incorporate the company, set up equity distribution (cap table). 2. Customer Discovery&nbsp;&nbsp;- Identify the target market and early adopters.&nbsp;&nbsp;- Conduct user interviews and surveys to validate the core assumptions.&nbsp;&nbsp;- Define key value proposition and core product features.&nbsp;&nbsp;3. Market Research &amp; Product Testing&nbsp;&nbsp;- Research competitors and market dynamics.&nbsp;&nbsp;- Gather feedback through MVP iterations.&nbsp;&nbsp;- Develop a go-to-market strategy (initial channels, messaging). 4. Financial Planning&nbsp;&nbsp;- Set up basic accounting and financial tracking.&nbsp;&nbsp;- Establish a low burn rate; bootstrap as much as possible.&nbsp;&nbsp;- Secure pre-seed funding through friends, family, and angels. 5. Hiring &amp; Culture&nbsp;&nbsp;- Hire the initial core team (keep it lean).&nbsp;&nbsp;- Set the foundation of your company culture, values, and mission.&nbsp;&nbsp;6. Metrics to Focus On&nbsp;&nbsp;- Customer validation metrics (number of early users, feedback).&nbsp;&nbsp;- Product-market fit signals (high engagement, repeat users).&nbsp;&nbsp;- Basic financial metrics (burn rate, runway). Seed Stage (Product-Market Fit &amp; Early Growth) 1. Product-Market Fit&nbsp;&nbsp;- Continue iterating on the product based on customer feedback.&nbsp;&nbsp;- Refine your value proposition and product to fit the market’s needs.&nbsp;&nbsp;- Increase product adoption and retention with your target users. 2. Revenue &amp; Monetization&nbsp;&nbsp;- Develop early revenue models and pricing strategy.&nbsp;&nbsp;- Test your monetization channels (paid subscriptions, freemium, etc.).&nbsp;&nbsp;- Start tracking your customer acquisition cost (CAC) and lifetime value (LTV). 3. Team Expansion&nbsp;&nbsp;- Begin hiring additional team members (marketing, sales, product, engineering).&nbsp;&nbsp;- Solidify company culture and onboarding processes.&nbsp;&nbsp;- Build a core leadership team to delegate key functions (marketing, product, sales). 4. Marketing &amp; Distribution&nbsp;&nbsp;- Scale go-to-market strategies that are working (ads, SEO, content marketing, partnerships).&nbsp;&nbsp;- Focus on customer acquisition and building brand awareness.&nbsp;&nbsp;- Build out early marketing and sales teams. 5. Investor Relations&nbsp;&nbsp;- Develop and maintain relationships with potential investors for future rounds.&nbsp;&nbsp;- Prepare your pitch and fundraising materials (deck, financials, roadmap).&nbsp;&nbsp;- Raise seed funding, ensuring you have enough runway (12–18 months). 6. Metrics to Focus On&nbsp;&nbsp;- User growth and engagement (acquisition, activation, retention).&nbsp;&nbsp;- Key financial metrics (runway, CAC, LTV).&nbsp;&nbsp;- Product stickiness (user retention, daily/weekly/monthly active users). Series A Stage (Scaling Product &amp; Expanding Market) 1. Scaling Operations&nbsp;&nbsp;- Focus on scaling product development and operational processes.&nbsp;&nbsp;- Invest in backend infrastructure to handle increased customer demand.&nbsp;&nbsp;- Refine and improve the core product based on deeper customer data insights. 2. Customer Acquisition &amp; Growth&nbsp;&nbsp;- Expand your customer acquisition channels (ads, partnerships, outbound sales).&nbsp;&nbsp;- Focus on automating and optimizing the sales process.&nbsp;&nbsp;- Develop sophisticated user onboarding and customer success strategies. 3. Revenue Growth &amp; Unit Economics&nbsp;&nbsp;- Double down on monetization strategies and optimize revenue streams.&nbsp;&nbsp;- Focus on improving unit economics (reduce CAC, improve LTV).&nbsp;&nbsp;- Expand pricing strategies to capture more value from different customer segments. 4. Team &amp; Culture Expansion&nbsp;&nbsp;- Hire for scaling teams: operations, engineering, marketing, customer support.&nbsp;&nbsp;- Develop clear organizational structures and management hierarchies.&nbsp;&nbsp;- Focus on leadership development and building middle management layers. 5. Brand Building &amp; Market Positioning&nbsp;&nbsp;- Invest in brand development (PR, content marketing, social proof).&nbsp;&nbsp;- Build a strong narrative around your brand and mission.&nbsp;&nbsp;- Penetrate new markets or expand offerings to new geographies. 6. Fundraising &amp; Investor Communication&nbsp;&nbsp;- Raise Series A funding (target 18–24 months runway).&nbsp;&nbsp;- Keep communication clear and regular with current and prospective investors.&nbsp;&nbsp;- Align funding with clear scaling goals (new hires, product growth, market expansion). 7. Metrics to Focus On&nbsp;&nbsp;- Revenue growth (MRR, ARR).&nbsp;&nbsp;- Customer acquisition efficiency (CAC payback period).&nbsp;&nbsp;- Churn rate and user retention.&nbsp;&nbsp;- Profitability (gross margins, burn multiple). Series B Stage (Rapid Growth &amp; Market Leadership) 1. Aggressive Scaling&nbsp;&nbsp;- Focus on high growth by scaling product development, customer acquisition, and sales teams.&nbsp;&nbsp;- Build infrastructure for large-scale operations (systems, security, compliance).&nbsp;&nbsp;- Prepare for international expansion or diversification of product offerings. 2. Operational Efficiency&nbsp;&nbsp;- Streamline processes and increase operational efficiency (automation, tooling, data-driven processes).&nbsp;&nbsp;- Build out leadership and management teams to manage growing headcount.&nbsp;&nbsp;- Optimize supply chains, manufacturing (if applicable), and backend scalability. 3. Revenue Expansion&nbsp;&nbsp;- Explore additional revenue streams, upsell/cross-sell opportunities.&nbsp;&nbsp;- Implement advanced sales and marketing strategies (ABM, influencer marketing, partnerships).&nbsp;&nbsp;- Focus on increasing gross margins and scaling customer success. 4. Product Differentiation &amp; Innovation&nbsp;&nbsp;- Invest in research and development to maintain product leadership.&nbsp;&nbsp;- Innovate with new features or complementary products that expand market share.&nbsp;&nbsp;- Expand product-market fit in secondary markets. 5. Fundraising &amp; Financial Strategy&nbsp;&nbsp;- Raise Series B funding (with a focus on fueling rapid growth).&nbsp;&nbsp;- Strengthen financial reporting, forecasting, and compliance (move towards audits, potential exit/IPO preparation).&nbsp;&nbsp;- Build relationships with growth-stage investors. 6. Metrics to Focus On&nbsp;&nbsp;- Revenue growth (high double-digit or triple-digit year-on-year growth).&nbsp;&nbsp;- Profitability and path to breakeven.&nbsp;&nbsp;- Expansion of LTV (new product features, cross-sell/upsell).&nbsp;&nbsp;- Reduction of churn rate.&nbsp;&nbsp;- Team productivity and engagement (scaling culture). Each checklist emphasizes the key focus areas for every stage of funding, helping founders prioritize product-market fit, growth, and operational efficiency as they navigate the startup journey. If you think we've overlooked anything important, we welcome your comment and feedback!

The Startup Scaling Checklist: A Framework for Founders from Founding to Series-B stages

GP-led transactions have emerged as a transformative force in the venture capital and private equity secondary market, offering innovative liquidity solutions for fund managers and investors alike. These transactions, initiated by general partners (GPs), have grown from a niche approach to a mainstream practice, accounting for nearly half of all secondary transactions in recent years. Understanding GP-Led Transactions GP-led transactions typically involve the transfer of assets from an existing fund to a new vehicle managed by the same GP. This process allows GPs to retain control of high-potential assets while offering liquidity options to existing limited partners (LPs). Market Growth and Trends The GP-led segment has experienced remarkable growth, expanding from just $5 billion in volume in 2013 to $48 billion in 2022. This growth has continued, with GP-led deals accounting for approximately half of all secondary deal volume since 2020. The market's transformation suggests further acceleration in the near to medium term, as these transactions have effectively transferred secondary portfolio management responsibility from LPs to GPs. Economics for GPs GP-led transactions offer several economic benefits for general partners: 1. Extended Asset Management: GPs can retain control of high-potential assets beyond the original fund's lifespan, potentially increasing overall returns. 2. Fee Structure Reset: GPs can negotiate new fee structures for the continuation vehicle, often including:&nbsp;&nbsp;- Management fees typically ranging from 0.50% to 1.25%, lower than traditional primary funds.&nbsp;&nbsp;- Tiered carried interest structures, where full carry (usually 20%) is achieved only after certain performance hurdles are met. 3. Carried Interest Crystallization: GPs often roll over 100% of their crystallized carry from the existing fund into the new structure, aligning their interests with new investors. 4. Additional Capital Commitment: GPs frequently make new commitments to the continuation vehicle, typically 3-5% of the purchase price, further demonstrating alignment. 5. Ratchet Mechanisms: Many continuation funds implement ratchet mechanisms with different hurdles before the GP can begin to realize carry, enhancing alignment and potential upside. 6. Market Timing Flexibility: GPs gain the ability to maximize value by choosing the optimal time to exit investments. The Economics for New LPs New LPs investing in GP-led transactions often find attractive opportunities: 1. Access to High-Quality Assets: These deals frequently involve "trophy assets" that GPs want to retain, offering new LPs exposure to premium investments. 2. Potential Pricing Advantage: While pricing varies, new LPs may invest at a slight discount to the fund's fair market value (FMV) or Total Value to Paid-In (TVPI) multiple. This discount, typically ranging from 0-10%, reflects the concentrated nature of the investment and the need to incentivize new capital. 3. Attractive Risk-Reward Profile: New investors benefit from the GP's existing knowledge of the asset, potentially reducing risk while maintaining upside potential. 4. Immediate Exposure: Unlike primary fund investments, GP-led deals offer immediate and concentrated exposure to specific assets or portfolios. 5. Favorable Terms: New LPs often negotiate more investor-friendly terms compared to the original fund, including lower management fees and performance-based carry structures. Some investor-friendly benefits for New LPs include: 1. Lower Management Fees: Management fees in continuation funds are generally lower than in primary funds, typically ranging from 0.50% to 1.25%. 2. Performance-Based Carry Structures: Instead of the standard 20% carry, GP-led transactions often use tiered carry structures where the GP doesn't achieve full carry unless certain performance hurdles are met. 3. GP Commitment: GPs often roll over 100% of their crystallized carry from the existing fund into the new structure and make significant new commitments (typically 3-5% of the purchase price), demonstrating alignment with new investors. 4. Ratchet Mechanisms: Many continuation funds implement ratchet mechanisms with different hurdles before the GP can begin to realize carry, further enhancing alignment. 5. Enhanced Transparency: New LPs gain access to in-depth portfolio information beyond a fund's regular reporting, allowing for deep direct-style diligence of the assets. 6. Immediate Exposure: Unlike primary fund investments, GP-led deals offer immediate and concentrated exposure to specific assets or portfolios. 7. Governance Rights: New lead investors may negotiate for enhanced governance rights or input on key decisions related to the portfolio companies. 8. Deferral Options: In some cases, buyers may negotiate delayed payment methods, typically spreading payments over 6-12 months, which can enhance IRR. 9. Status Quo Option: Some deals offer a status quo option, enabling existing LPs to retain their legacy distribution waterfall without committing to new arrangements. These are some investor-friendly terms that are designed to align interests between the GP and new investors, provide enhanced economics for new LPs, and ensure continued focus on value creation in the underlying assets. Challenges for Existing LPs While GP-led transactions offer benefits, they also present challenges for existing LPs: 1. Liquidity vs. Upside Potential: LPs must decide whether to cash out or roll over their investment. This decision can be complex, potentially constraining their ability to fully realize anticipated returns. 2. Valuation Concerns: Ensuring fair valuation is crucial. LPs may worry about whether the transaction price truly reflects the asset's value. 3. Alignment of Interests: There's a potential conflict of interest as GPs act as both buyers and sellers. LPs must scrutinize the GP's motivations and commitment to the new vehicle. 4. Fee Structure Changes: Rolling over into the new vehicle may involve new fee arrangements, potentially impacting long-term returns. 5. Due Diligence Burden: LPs choosing to roll over may need to conduct additional due diligence on the new vehicle, incurring extra costs and time. 6. Limited Negotiation Power: Individual LPs may have limited ability to influence transaction terms, especially in larger funds. Market Dynamics and Trends 1. Growing Popularity: GP-led transactions have become a key liquidity management tool, driven by innovation and slowdowns in traditional exit routes like IPOs and M&amp;A. 2. Dry Powder Imbalance: The market currently faces a supply-demand disparity, with more GP-led opportunities than available capital, allowing buyers to be highly selective. 3. Focus on Quality: High-quality assets and well-structured deals attract significant attention, while challenging transactions struggle to close. 4. Importance of GP Commitment: Successful deals often involve GPs rolling over 100% of their crystallized carry and making substantial new commitments, typically 3-5% of the purchase price. 5.Regulatory Scrutiny: Increasing transaction volumes have led to calls for greater transparency and potential regulatory oversight, including proposals for fairness opinions and prompt notification of deals. Recent Examples 1. Lexington Capital Partners and Lightspeed Venture Partners: Lexington participated in a multi-asset transaction involving Lightspeed Venture Partners, acquiring stakes in multiple Lightspeed funds. 2. Coller Capital and Abry Partners: In August 2024, Coller Capital led a $1.6 billion GP-led credit transaction with Abry Partners, creating the largest credit continuation vehicle to date. Industry Focus and Preferences Buyers in the GP-led market show a preference for mature business models and industries with limited cyclical exposure. Buyouts compose 86% of GP-led market share, with healthcare, business services, industrials, and tech dominating interest. Capital-intensive industries have generally struggled to gain traction in these transactions. GP-led transactions have revolutionized the private equity secondary market, offering new avenues for liquidity and investment. While they present attractive opportunities for GPs to extend asset management and for new LPs to access high-quality assets, existing LPs face complex decisions that can impact their investment outcomes. As the market evolves, balancing the interests of all parties involved will be crucial for the continued growth and acceptance of these innovative structures. For both new and existing LPs, careful due diligence, a clear understanding of the underlying assets, and a thorough evaluation of the GP's track record and alignment are essential when considering participation in GP-led transactions. As these deals continue to reshape the private equity landscape, they offer both opportunities and challenges that investors must navigate with care and expertise. The future of GP-led transactions looks promising, with continued growth expected as they become an established part of the private equity ecosystem. However, success in this market will depend on maintaining high standards of transparency, alignment, and value creation for all stakeholders involved.

The Rise of GP-Led Transactions: Revolutionizing Private Equity Liquidity

Newnex’s latest edition of Top Tech and Venture Capital News provides a comprehensive overview of significant events in the technology and investment space. <ul><li>Venture Capital has an exit problem <a href="https://techcrunch.com/2024/07/04/spains-exposure-to-climate-change-helps-madrid-based-vc-seaya-close-e300m-climate-tech-fund/" rel="noopener noreferrer" target="_blank">Read more</a></li><li>OpenAI Launches Advanced Voice Mode for ChatGPT: OpenAI has begun rolling out its Advanced Voice Mode, offering hyper-realistic audio responses to a select group of ChatGPT Plus users, with a wider release planned for fall 2024. <a href="https://www.newnex.io/feed/openai-launches-advanced-voice-mode-for-chatgpt-a-new-era-of-hyper-realistic-audio-responses" rel="noopener noreferrer" target="_blank">Read more</a></li><li>Tech Giants Face AI Investment Challenges: Despite stock market penalties, tech companies argue that the risks of underinvesting in AI are greater than overinvesting. <a href="https://www.newnex.io/feed/ai-this-sums-it-up-the-risk-of-underinvesting-is-dramatically-greater-than-the-risk-of-overinvesting" rel="noopener noreferrer" target="_blank">Read more</a></li><li>OpenAI's Valuation Hits $80 Billion: OpenAI has reached an $80 billion valuation following a strategic share sale led by Thrive Capital, reflecting significant interest in AI technologies. <a href="https://www.newnex.io/feed/openai-turns-to-strategic-investments-as-it-reportedly-reaches-80-billion-valuation" rel="noopener noreferrer" target="_blank">Read more</a></li><li>Web3 Startups Secure $1.1 Billion in July: Venture capitalists invested over $1.1 billion across 118 deals in Web3-based startups in July. <a href="https://www.newnex.io/feed/web3-based-startups-raised-more-than-11-billion-from-venture-capitalists-across-118-deals-in-july" rel="noopener noreferrer" target="_blank">Read more</a></li><li>BNP Paribas to Acquire AXA IM: BNP Paribas is set to acquire AXA Investment Managers, including a management buyout of AXA VP. <a href="https://www.newnex.io/feed/bnp-paribas-to-acquire-axa-im-axa-vps-management-buyout" rel="noopener noreferrer" target="_blank">Read more</a></li><li>BendingSpoons Acquires WeTransfer: Italian company BendingSpoons has acquired the file transfer service WeTransfer. <a href="https://www.newnex.io/feed/italys-bendingspoons-acquires-file-transfer-service-wetransfer" rel="noopener noreferrer" target="_blank">Read more</a></li><li>Advancements in Solid-State Battery Technology: New solid-state battery technology promises up to 600 miles on a single charge. <a href="https://www.newnex.io/feed/solid-state-battery-tech-for-600-miles-on-single-charge" rel="noopener noreferrer" target="_blank">Read more</a></li><li>Satellite Milestone: Humanity has launched 10,000 satellites, with Starlink accounting for over 6,500. <a href="https://www.newnex.io/feed/humanity-reached-10k-satellites-of-which-starlink-accounts-for-approximately-two-thirds" rel="noopener noreferrer" target="_blank">Read more</a></li><li>Google Abandons Third-Party Cookie Phase-Out: Google has decided to abandon its plan to phase out third-party cookies in Chrome. <a href="https://www.newnex.io/feed/google-abandons-plan-to-phase-out-third-party-cookies-in-chromegoogle-has-decided-not-to-cancel-and-replace-third-party-cookies-in-its-chrome-browser-" rel="noopener noreferrer" target="_blank">Read more</a></li><li>UK Boosts Quantum Technology Funding: The UK has allocated £100 million to establish five quantum technology hubs across England and Scotland. <a href="https://www.newnex.io/feed/britains-quantum-technology-ambitions-have-received-a-100m-boost-to-establish-five-quantum-technology-hubs-across-england-and-scotland-these-hubs-anno" rel="noopener noreferrer" target="_blank">Read more</a></li><li>India's Private Capital Exits: India saw $25 billion in private capital-backed exits in 2023 and $11.5 billion in the first half of 2024. <a href="https://www.newnex.io/feed/india-saw-25-billion-in-private-capital-backed-exits-in-2023-and-115-billion-in-the-first-half-of-2024-according-to-new-data-from-the-global-private-c" rel="noopener noreferrer" target="_blank">Read more</a></li></ul> Startups fundraising track - we tracked $2.4billion funding rounds between Asia, Israel, Europe and the US. Total $450 million raised by Startups in Asia and Israel:<ul><li>Rapido (India): Ride-hailing startup raised $120 million, entering unicorn club, led by WestBridge.</li><li>Matter Motor (India): EV maker raised $35 million in Series B funding.</li><li>Meragi (India): Wedding services startup raised $9.1 million in Series A led by Accel.</li><li>DeepC (Germany): Radiology AI startup raised €30 million (approximately $33 million).</li><li>Mayhem Studios (India): Mobile gaming studio raised an undisclosed amount from Lumikai.</li><li>DruCare (India): Healthtech startup raised $1.2 million in pre-Series A funding.</li><li>Dezerv (India): Wealthtech startup raised ₹265 crore (approximately $32 million) in Series B funding.</li><li>Immuneel Therapeutics (India): Raised ₹100 crore (around $12 million).</li><li>Timbuckdo (India): On-demand talent platform raised ₹2 crore (approximately $240,000).</li><li>AryaAg (India): Agritech startup raised $29 million.</li><li>Lakera AI (Switzerland): AI safety startup raised $20 million.</li><li>Caldera (Israel): "Rollup-in-a-box" platform raised $15 million from Peter Thiel's venture fund.</li><li>CytoReason (Israel): AI healthcare startup raised $80 million.</li><li>Partior (Singapore): Blockchain settlement startup raised $60 million.</li><li>IVP Semi (India): Chip company raised $5 million.</li></ul> Europe - Total startup funding $387.7 million<ul><li>Flo Health (UK): Women's health app raised over $200 million, achieving unicorn status.</li><li>4D Medicine (UK): Biomaterial startup raised £1.1 million (around $1.4 million).</li><li>Ocula (UK): E-commerce analytics platform raised an undisclosed amount in Series A funding.</li><li>Cognisyc (Romania): Received investment from Early Game Ventures, amount undisclosed.</li><li>Plum (UK): Financial wellness platform raised $10 million.</li><li>Maurten (Sweden): Sports nutrition company raised €20 million (approximately $22 million).</li><li>Kolum (Germany): Raised €21 million (around $23 million) in pre-seed funding.</li><li>LegalFly (Turkey): Legal services AI startup raised $15 million.</li><li>Hero Software (UK): SaaS platform for tradespeople raised $40 million in Series B funding.</li><li>Adam (Czech Republic): Home improvement platform raised €3 million (approximately $3.3 million).</li><li>Soda (Belgium): AI data quality startup raised $14 million.</li><li>Planqc (Germany): Quantum startup raised $54 million.</li><li>Helsing (Germany): Defense startup valued at $5 billion following its latest funding round.</li><li>Switchee (UK): Smart home technology startup raised $5 million.</li></ul> USA startups raised c. $1.6 billion<ul><li>Q Bio (USA): Preventative health scan startup raised an undisclosed amount for new MRI machine development.</li><li>Runway (USA): AI video startup reportedly seeking to raise $450 million.</li><li>Magic (USA): AI coding startup seeking $1.5 billion valuation in new funding round.</li><li>Posh (USA): Event startup raised $22 million.</li><li>Vanta (USA): Internet security startup raised $150 million in Series C funding.</li><li>Monarch Tractor (USA): Autonomous electric tractor company raised $133 million.</li><li>Third Arc (USA): Oncology and immunology startup launched with Series A funding, amount undisclosed.</li><li>Harvey (USA): OpenAI-backed legaltech startup raised $100 million.</li><li>Heeler (USA): Application security company raised $8.5 million.</li><li>Cohere (Canada): AI startup raised $500 million.</li><li>Sentient Labs (USA): AI and crypto startup raised $85 million, led by Peter Thiel.</li><li>Hebbia (USA): AI document search tool raised $130 million.</li></ul> Founders' Speak:An interview with Eleven Labs founder about raising $101 million in 2 years - <a href="https://www.newnex.io/feed/elevenlabs-on-raising-101m-in-two-years" rel="noopener noreferrer" target="_blank">Read more</a> Venture Capital funds launched with $3.6 billion dry-powder <ul><li>Tenzing Fund III has successfully closed with a substantial fund size of £900 million, equivalent to approximately $1.15 billion USD. This fund, based in the UK, focuses on technology investments and marks a significant milestone for Tenzing as it aims to support innovative tech companies. <a href="https://www.insidermedia.com/news/national/tenzing-closes-third-fund-at-900m" rel="noopener noreferrer" target="_blank">Read more</a></li></ul> <ul><li>Trill Impact has launched its inaugural venture fund, raising €90 million (around $98 million USD). This fund targets early-stage companies in Europe that are driven by impact, particularly those addressing global challenges aligned with the UN Sustainable Development Goals. <a href="https://impact-investor.com/trill-impact-closes-venture-fund-after-raising-e90m/" rel="noopener noreferrer" target="_blank">Read more</a></li></ul> <ul><li>Forestay Capital has closed its fifth fund with a total of $220 million, specifically focusing on early-stage technology startups in Israel and Europe <a href="https://www.timesofisrael.com/european-venture-capital-firm-closes-220m-fund-with-focus-on-israeli-startups" rel="noopener noreferrer" target="_blank">Read more</a></li></ul> <ul><li>13books Capital has raised £95 million, which is approximately $121 million USD, to establish a venture capital fund that concentrates on fintech investments. This fund seeks to capitalize on the growing fintech sector. <a href="https://www.cityam.com/13books-capital-raises-121m-for-fintech-venture-capital-fund/" rel="noopener noreferrer" target="_blank">Read more</a></li></ul> <ul><li>venBio has raised $528 million for its fourth fund, focusing on investments in life sciences, which aims to support innovative healthcare solutions. <a href="https://www.fiercebiotech.com/biotech/venture-capital-veteran-venbio-raises-528-million-life-sciences-investment" rel="noopener noreferrer" target="_blank">Read more</a></li></ul> <ul><li>ICONIQ Growth has wrapped up its seventh fund with a remarkable size of $5.75 billion, targeting growth investments in technology across a global landscape. <a href="https://www.iconiqcapital.com/growth/insights/iconiq-growth-raises-5-75b-to-support-the-next-generation-of-exceptional-founders" rel="noopener noreferrer" target="_blank">Read more</a></li></ul> <ul><li>Index Ventures has successfully raised $2.3 billion, which will be allocated to both venture and growth investments in technology startups globally. <a href="https://techcrunch.com/2024/07/09/index-ventures-raises-23-billion-for-new-venture-and-growth-funds/" rel="noopener noreferrer" target="_blank">Read more</a></li></ul> <ul><li>Sovereign's Capital has announced its largest fund ever, closing at $400 million, with a focus on early to growth-stage investments in technology and healthcare sectors across the US and Southeast Asia. <a href="https://www.businesswire.com/news/home/20240710348091/en/Sovereign%E2%80%99s-Capital-Closes-its-Largest-Ever-Venture-Capital-Fund" rel="noopener noreferrer" target="_blank">Read more</a></li></ul> <ul><li>Industry Ventures has raised $900 million to invest in small early-stage VCs and their breakout startups, emphasizing the importance of nurturing emerging talent in the venture capital landscape. <a href="https://techcrunch.com/2024/07/02/industry-ventures-raises-a-900m-fund-for-investing-in-small-early-stage-vcs-and-their-breakout-startups" rel="noopener noreferrer" target="_blank">Read more</a></li></ul> <ul><li>Frumtak Ventures has closed its fourth fund at $87 million, focusing on supporting startups in Iceland. <a href="https://tech.eu/2024/07/10/icelandic-frumtak-ventures-closes-fourth-fund-at-87m/" rel="noopener noreferrer" target="_blank">Read more</a></li></ul> <ul><li>Alpine Space Ventures has raised €170 million (approximately $185 million USD) to target Series A rounds in the space tech sector. <a href="https://www.eu-startups.com/2024/07/alpine-space-ventures-closes-e170-million-fund-to-target-series-a-space-tech-rounds/" rel="noopener noreferrer" target="_blank">Read more</a></li></ul> <ul><li>Carbon Equity has launched a new climate tech fund, raising €60 million (around $65 million USD) to invest in sustainable technologies. <a href=" https://impact-investor.com/carbon-equity-raises-e60m-for-new-climate-tech-fund/" rel="noopener noreferrer" target="_blank">Read more</a></li></ul> <ul><li>J2 Ventures has secured $150 million to propel technology startups that cater to both civilian and government applications. <a href="https://techcrunch.com/2024/07/04/j2-ventures-focused-on-military-healthcare-grabs-150m-for-its-second-fund/" rel="noopener noreferrer" target="_blank">Read more</a></li></ul> <ul><li>Seaya Andromeda has closed a climate tech fund with a total of €300 million (approximately $327 million USD), focusing on investments in environmentally sustainable technologies. <a href="https://techcrunch.com/2024/07/04/spains-exposure-to-climate-change-helps-madrid-based-vc-seaya-close-e300m-climate-tech-fund/" rel="noopener noreferrer" target="_blank">Read more</a></li></ul> Learning: <ul><li>16 Leadership Lessons from Amazon - <a href="https://www.newnex.io/feed/16-leadership-lessons-from-amazon-" rel="noopener noreferrer" target="_blank">Read more</a></li></ul>----<a href="https://newnex.io" rel="noopener noreferrer" target="_blank">Newnex is an exclusive platform</a> designed for institutional investors for private venture capital syndications (GP-GP) and co-investments (GP-LP). Join the exclusive global network of VCs, Family Offices, LPs, and Asset Owners for confidential deal-making.

Newnex Venture Insights - Latest tech and venture capital news

Namma Yatri, the open-source ridesharing app, has reportedly secured $11 million in pre-Series A funding! 💰Google joins as an investor, part of its $10 billion India commitment<ul><li>Round co-led by Blume Ventures and Antler</li><li>Operates on ONDC, India's initiative to democratize e-commerce</li><li>Completed 46 million+ rides across multiple Indian cities</li><li>What sets Namma Yatri apart? 🤔</li><li>No commission fees, unlike Uber and Ola. </li><li>Small monthly fee from driver partners</li></ul>Founded by Magizhan Selvan and Shan M S to address driver frustrations, Namma Yatri is an innovative open-source ride-sharing startup based in Bengaluru, India. Launched in 2022, the app connects customers with auto-rickshaw and cab drivers without charging any commission fees. Instead, it sustains itself through a small monthly fee paid by its driver partners, making it a unique player in the ride-sharing market dominated by Uber and Ola, which charge drivers 25-30% commission per ride.The startup was incubated by Juspay, a SoftBank-backed financial services company, and later spun off into a separate entity called Moving Tech.Namma Yatri operates on the Open Network for Digital Commerce (ONDC), an interoperable platform backed by the Indian government to democratize e-commerce.The app has facilitated over 46 million rides across more than half a dozen Indian cities, including Bengaluru and Hyderabad. Recently, Namma Yatri raised $11 million in a pre-Series A funding round co-led by Blume Ventures and Antler, with participation from Google, which aligns with Google's broader $10 billion investment commitment in India.Moving Tech’s co-founders, Magizhan Selvan and Shan M S, have emphasized empathy and a differentiated approach in their business model, focusing on addressing the frustrations of drivers within the existing ride-sharing ecosystem. The new funding will be used to expand Namma Yatri's engineering and R&amp;D teams and to explore additional transportation options, including buses. Namma Yatri is a testament to the potential of open-source solutions in transforming traditional business models and improving livelihoods in the gig economy.

Google invests in Indian open source Uber competitor - Namma Yatri

OpenAI has launched GPT-4o mini, a cost-efficient small language model designed to enhance accessibility and affordability for various applications.&nbsp; ﻿Key Highlights and Features of GPT-4o Mini 1. Performance<ul><li>GPT-4o mini outperforms GPT-4 in chat preferences, as reflected in the LMSYS leaderboard.</li><li>It achieves an impressive score of 82% on the MMLU benchmark.</li></ul> 2. Cost-Efficiency<ul><li>The model is priced at 15 cents per million input tokens and 60 cents per million output tokens.</li><li>This pricing makes it significantly cheaper than previous models, including being 60% less expensive than GPT-3.5 Turbo.</li></ul> 3. Capabilities<ul><li>GPT-4o mini supports both text and vision in its API.</li><li>It features a large context window of 128K tokens and includes knowledge up to October 2023.</li></ul> 4. Benchmark Performance<ul><li>The model surpasses GPT-3.5 Turbo and other small models on various academic benchmarks, excelling in textual intelligence and multimodal reasoning.</li></ul> 5. Safety Measures<ul><li>Built-in safety features help filter out undesirable content.</li><li>The model uses reinforcement learning with human feedback (RLHF) to align with OpenAI's safety policies.</li></ul> 6. Availability<ul><li>GPT-4o mini is available through the Assistants API, Chat Completions API, and Batch API.</li><li>It is accessible to ChatGPT Free, Plus, and Team users, replacing GPT-3.5.</li></ul> 7. Future Developments<ul><li>OpenAI plans to continue enhancing model capabilities while further reducing costs, aiming for seamless integration of AI into applications and websites.</li></ul> This launch marks a significant advancement in making powerful AI models more accessible and affordable for developers and users. Read more: <a href="https://openai.com/index/gpt-4o-mini-advancing-cost-efficient-intelligence" rel="noopener noreferrer" target="_blank">https://openai.com/index/gpt-4o-mini-advancing-cost-efficient-intelligence/</a>

GPT-4o mini launched, cheaper access for startups and small businesses

Pension funds, the silent guardians of people's retirements, manage a staggering $76 trillion globally, with a whopping $4.6 trillion entrusted to them in the UK alone. How these vast sums are invested impacts the comfort and security of retirees. In this context, we drive into two key questions that shape pension investment strategies:<ol><li>Should pension funds prioritize local economic growth, or focus solely on maximizing returns?</li><li>And how do alternative investments like private equity stack up against traditional investment options?</li></ol> Balancing Returns and Local ImpactLet's start with the basics. The fiduciary duty of a pension fund is to generate the best possible returns to ensure retirees can maintain a comfortable standard of living after they stop working. Governments may advocate for investing in local economies, citing tax breaks offered to pension funds. However, when it comes to investment decisions, maximizing returns for pensioners must be the top priority. Without delving into the politics of it, local investments are attractive if they deliver strong growth potential. There are arguments put-forward by entrepreneurs that pension funds must invest locally, <a href="https://www.theguardian.com/business/article/2024/jul/12/british-chipmaker-graphcore-bought-by-japans-softbank" rel="noopener noreferrer" target="_blank">most recently by the founder of Graphcore</a>. This distills down to: Should the responsibility of driving economic growth fall on the shoulders of pensioners through their investments, or should retirees simply benefit from the economic growth generated by the broader economy? Exploring Alternatives UK FTSE 100 has historically delivered around 7% nominal returns compared that of 16.5% 5-year annualized returns of S&amp;P 500. UK Equities barely keeps pace with inflation, essentially eroding the purchasing power of retirees' savings. Pension funds are said to have averaged under<a href="https://getpenfold.com/news/pension-interest-rates" rel="noopener noreferrer" target="_blank"> 7%</a>. Alternative investments such as private equity (PE) has traditionally been generating<a href="https://www.klarphos.com/news-insights/a-simple-case-for-alternative-investments-to-enhance-portfolio-returns#:~:text=The%20study%20found%20that%20private,funds%20had%20an%20approximate%20historical" rel="noopener noreferrer" target="_blank"> 15-24% annualized returns</a> historically. Added to that the tailwind behind alternative investing makes it almost mandatory to have strong alternatives exposure. A breakdown of key advantages to add alternatives exposure:<ul><li>Diversification: Traditional equity markets are consolidating, meaning there are fewer publicly traded companies to invest in (listed equities have come down from 8000 in 1990s to less than 3700 today). Alternatives offer diversification, spreading risk and providing access to value creation in the private sector. Companies are staying private for longer periods, and a lot of the value creation is happening in private markets.</li></ul> <ul><li>Riding the Digital Wave: Many industries are undergoing a digital transformation, and a significant portion of the value generated from this shift resides in private markets. By incorporating alternatives, pension funds can gain exposure to these high-growth areas.</li></ul> <ul><li>Non-Correlation: Studies suggest that alternative asset classes have a low correlation with traditional investments.. This means that when traditional markets experience a downturn, alternatives may hold steady, further enhancing the overall resilience of a pension fund's portfolio. There is an alternative argument however that the private markets simply delay downsizing their valuations. But what matters ultimately is the returns upon exit, something to watch out for.</li></ul> Learning from the Pack:North American pension funds have been at the forefront of incorporating alternatives into their investment strategies. European funds are slowly opening up and developing expertise in selecting skilled fund managers and accessing the most promising markets for alternative investments. While maximizing returns remains paramount, strategically incorporating alternatives offers pension funds a powerful tool to fulfill their core mission: securing a comfortable future for retirees. However, navigating the alternatives industry is no easy task. There is much work to be done both from pensions funds and the alternatives industry overall. Alternative industry is famously complex, lacks transparency, has high fees, boasts of limited liquidity, and is ridden with regulatory restrictions. In addition, market timing is crucial as performance can vary significantly with economic conditions. By carefully selecting managers and diversifying with alternatives, pension funds can unlock higher returns, achieve better portfolio balance, and tap into the growth potential of the private sector. This, in turn, can translate to a better financial future for generations of retirees. References:<a href="https://www.theguardian.com/business/article/2024/jul/12/british-chipmaker-graphcore-bought-by-japans-softbank" rel="noopener noreferrer" target="_blank">Talent drain in the UK if pension funds don't invest locally</a><a href="https://getpenfold.com/news/pension-interest-rates" rel="noopener noreferrer" target="_blank">How pension interest rates work?</a><a href="https://www.klarphos.com/news-insights/a-simple-case-for-alternative-investments-to-enhance-portfolio-returns#:~:text=The%20study%20found%20that%20private,funds%20had%20an%20approximate%20historical" rel="noopener noreferrer" target="_blank">An aerial view of major alternative asset classes</a><a href="https://ifs.org.uk/publications/challenges-uk-pension-system-case-pensions-review" rel="noopener noreferrer" target="_blank">The case for UK pensions review</a><a href="https://ifs.org.uk/publications/challenges-uk-pension-system-case-pensions-review" rel="noopener noreferrer" target="_blank">Should pension funds invest in UK growth?</a><a href="https://www.hamiltonlane.com/en-us/insight/staying-private-longer#:~:text=There%20is%20growing%20evidence%20that,the%20sphere%20of%20public%20markets." rel="noopener noreferrer" target="_blank">Staying private longer leads to opportunity</a><a href="https://www.hamiltonlane.com/en-us/insight/staying-private-longer#:~:text=There%20is%20growing%20evidence%20that,the%20sphere%20of%20public%20markets." rel="noopener noreferrer" target="_blank">2024 pension updates from UK Spring budget</a>

Should pension funds invest in PE/VC?

At Newnex, we have compiled a list of essential startup events to help you plan effectively: February<ul><li><a href="https://www.4yfn.com/" rel="noopener noreferrer" target="_blank">4YFN - MWC</a>: Barcelona, Spain (26-29 Feb)</li></ul> March<ul><li><a href="https://hello-tomorrow.org/global-summit/" rel="noopener noreferrer" target="_blank">Hello Tomorrow Global Summit</a>: Paris, France (21-22 Mar)</li></ul> May<ul><li><a href="https://www.eu-startups.com/eu-startups-summit-2024/" rel="noopener noreferrer" target="_blank">EU Startup Summit</a>: Malta (9-10 May)</li><li><a href="https://tech.eu/event/2024/summit-london/" rel="noopener noreferrer" target="_blank">Tech EU Summit</a>: London, UK (16-17 May)</li><li><a href="https://www.gitex-europe.com/" rel="noopener noreferrer" target="_blank">GITEX Europe</a>: Berlin, Germany (21-23 May)</li><li><a href="https://latitude59.ee/" rel="noopener noreferrer" target="_blank">Latitude 59</a>: Tallinn, Estonia (22-24 May)</li><li><a href="https://vivatechnology.com/" rel="noopener noreferrer" target="_blank">Viva Tech</a>: Paris, France (23-24 May)</li></ul> June<ul><li><a href="https://viennaup.com/" rel="noopener noreferrer" target="_blank">Vienna Startup Festival</a>: Vienna, Austria (3-9 Jun)</li><li><a href="https://www.southsummit.io/" rel="noopener noreferrer" target="_blank">South Summit</a>: Madrid, Spain (5-7 Jun)</li><li><a href="https://londontechweek.com/" rel="noopener noreferrer" target="_blank">London Tech Week</a>: London, UK (10-14 Jun)</li><li><a href="https://thenextweb.com/conference" rel="noopener noreferrer" target="_blank">TNW Conference</a>: Amsterdam, Netherlands (20-21 Jun)</li></ul> September<ul><li><a href="https://techbbq.dk/" rel="noopener noreferrer" target="_blank">TECHBBQ</a>: Copenhagen, Denmark (11-12 Sep)</li></ul> November<ul><li><a href="https://websummit.com/" rel="noopener noreferrer" target="_blank">Web Summit:</a> Lisbon, Portugal (11-14 Nov)</li><li><a href="https://slush.org/" rel="noopener noreferrer" target="_blank">Slush</a>: Helsinki, Finland (20-21 Nov)</li></ul> Contact: <a href="mailto:events@newnex.io" rel="noopener noreferrer" target="_blank">events@newnex.io</a> to be included in the list.