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The European VC
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The go-to podcast for everything European Venture | Hosted by David Cruz e Silva & Andreas Munk Holm
theemergingvc.substack.com
theemergingvc.substack.com
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Giano Capital's Alberto Chalon on a deep dive in how to master the sell-side of secondaries
Nov 20, 202400:54:32Tap to summarizeIn this episode of the EUVC podcast, Andreas talks with Alberto Chalon, founding GP of Giano Capital and an expert with a decade of experience in venture secondaries.Andreas and Alberto dive deep into the sell-side of venture secondaries, exploring the fundamentals that drive the market, the motivations of key players, and the nuances of preparing for a sale. Alberto shares his sophisticated approach to buyer processes, using a quantitative scorecard, and provides a practical guide for sellers navigating valuation, pricing, and legal challenges. Their conversation also addresses the current dynamics and trends shaping the secondaries market, offering a comprehensive look at what it takes to succeed.At Giano Capital, Alberto specializes in secondaries, drawing on his extensive experience to drive value for both buyers and sellers. This episode is packed with real-world insights and practical examples, making it an essential listen for anyone looking to understand or engage in the world of venture secondaries.Watch it here or add it to your episodes on Apple or Spotify 🎧 chapters for easy navigation available on the Spotify/Apple episode.100% Automated, 100% Accurate Portfolio IntelligencePrivate funds spend ~4 hrs on avg. analyzing every single PortCo update. That's 800 hrs per year for a fund with 50 startups in their portfolio (50 PortCos x 4 updates/year x 4 hrs)!How about 0 hours?Synaptic’s PortfolioIQ is your single source of truth for portfolio data, auto-updated from decks, excels, forms and emails. ZERO work for you or your PortCos.✍️ Show notesUnderstanding the Secondaries Market Background on what leads to a Secondaries market – why people may want to sellBackground on the Secondaries Market:* Over the last 20 years, exit timelines have extended significantly.* In the early 2000s, companies could go public quickly with little revenue, often leading to premature exits.* Today, the average exit for a company is 12-16 years, often waiting to reach $100 million+ in revenue.* The IPO market has slowed down, making secondaries more important for liquidity.* Even when IPOs are possible, companies prefer to exit later as “bigger is better” in terms of valuations.Opportunity in Europe vs. U.S.:* U.S. investors are more aggressive, leading to an earlier boom in the secondaries market.* Europe, as usual, lags behind the U.S. by 5-7 years in secondaries activity.* In Europe, there is a growing need for secondaries as companies take longer to exit, and liquidity is required.Types of Sellers in the Secondaries Market:* Founders and Employees:* These sellers may have been with the company for 7-10+ years and have significant paper wealth.* They seek to monetize up to 20% of their holdings for personal reasons like buying property or funding their children's education.* Selling a portion of their stake keeps them motivated while providing some financial security.* Early-Stage Investors (Business Angels, Seed Investors, VCs):* These investors are looking to generate liquidity after holding their stakes for several years.* VCs, in particular, are under pressure to show DPI (Distributions to Paid-In Capital) to raise new funds.* Business angels want to cash out their investments to fund new ventures, which aligns with their role as early-stage supporters.The Role of Intermediaries:* In the U.S., intermediaries (like brokers) often handle deals, though they might not provide full support.* In Europe, large banks (Goldman Sachs, Morgan Stanley) or M&A boutiques sometimes manage secondaries, especially in deals over $30-$50 million.* For smaller deals, direct interaction between the buyer and the seller, like Giano Capital’s approach, is more common.US vs Europe - what to keep in mind Mindset is very different, most US investors are more risk takersMindset Differences:* US Investors: Generally more willing to take risks, which drives more aggressive investment strategies and early adoption of secondary transactions.* European Investors: Tend to be more conservative and risk-averse, with slower adoption of secondary markets, trailing the US by about 5-7 years.Regulatory and Market Structure:* US Market: The ecosystem in the US allows for more fluid transactions due to transparency and access to information.* Public filings and accessible data on private companies allow investors to make informed decisions more easily.* European Market: Private companies maintain more confidentiality.* Investors need to work harder to get access to founders, management teams, and financial data, requiring a more relationship-driven approach.* This limitation slows down secondaries and makes the process more complex compared to the US market.Access to Information:* In the US, investors can often rely on public data and readily available information on private companies to make decisions.* In Europe, due diligence relies heavily on personal access to management, cap tables, and private company information, often requiring direct conversations and strong networks to get the necessary data.Cultural Approach to Growth and Exits:* US: Investors focus more on rapid growth and taking companies public earlier in their lifecycle, even before reaching high revenue milestones.* Europe: Companies tend to stay private longer, often waiting until they reach $100 million+ in revenue before considering an exit. This extended timeline provides more opportunities for secondary transactions in later stages.Key Players and StakeholdersTypes of Sellers: Categories and Motivations* Employees & Founders:* Motivation: Over time, these stakeholders accumulate value in their equity but often need liquidity for personal reasons.* Impact: Selling part of their equity allows founders to stay committed to the business, while managing personal financial risk. This enables them to support their family or buy property, keeping them motivated for the long run.* Early Stage Investors:* Business Angels (BAs):* Motivation: BAs have typically already seen large returns on their investment. They are often eager to exit after having added all the value they can.* Impact: Happy to clear their position, take the rewards, and move on to the next project.* Seed and Round A Investors:* Motivation: These investors usually need to secure liquidity well before the final exit to maintain credibility.* Impact: To successfully raise a follow-up fund, they need to show a healthy DPI (Distributions to Paid-In Capital), requiring partial liquidity events.Role of Intermediaries for Sellers:* Types of Intermediaries:* US Market: Filled with brokers who facilitate both supply and demand in secondary transactions.* Europe: Fewer intermediaries; here, banks and M&A boutiques (like Goldman Sachs or Deutsche Bank) handle secondary deals in a manner similar to primary transactions, but only when there’s a formal process in place.* Impact of Intermediaries:* For smaller, off-market secondaries, it’s more common for the deal to happen without an intermediary’s help. The process is more relationship-driven, and sellers often need to be prepared to manage the sale directly.Buyer Process:* Approach of a Sophisticated Buyer:* Treating Secondaries Like Primaries: A serious buyer treats a secondary transaction with the same level of due diligence as a primary investment. Sellers should expect to share just as much information.* Key Information: Buyers will request detailed financials like the P&L, budgets, and 3-year plans, which will be fed into their decision-making scorecard.Alberto’s Process:* Quantitative (Scorecard):* Giano Capital uses a 14-step scorecard focused on essential KPIs: CAC, profit margins, revenue growth, etc.* Screening: In the past year, they screened 100 companies and invested in only 3, while keeping others for potential future deals.* More Quantitative Detail:* Giano Capital engages with the most strategic managers (CFO, CMO, and CEO) to deeply understand the company’s numbers and future trajectory.* Forecast Reliability: A major focus is on testing how reliable the company’...
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Prosus Ventures' Sandeep Bakshi on the evolution of the European marketplace landscape
Nov 19, 202400:51:07Tap to summarizeIn this episode of the EUVC podcast, Andreas talks with Sandeep Bakshi, Head of European Investments at Prosus Ventures.Andreas and Sandeep discuss the evolving dynamics of early-stage investing across Europe and beyond, sharing insights into how Prosus Ventures identifies opportunities in a global landscape. Sandeep offers his perspective on navigating the European VC scene, reflecting on the unique challenges and opportunities facing founders today. The conversation also covers the role of strategic capital in scaling startups, with a focus on the sectors and trends shaping the next decade.At Prosus Ventures, Sandeep oversees a diverse portfolio targeting early-stage companies around the world. With notable investments such as Delivery Hero, iFood, OLX, Bilt Rewards, Corti, Superside, Avant Arte, and Oxford Ionics, Prosus Ventures continues to drive innovation by backing transformative startups across various sectors and geographies.Watch it here or add it to your episodes on Apple or Spotify 🎧 chapters for easy navigation available on the Spotify/Apple episode.100% Automated, 100% Accurate Portfolio IntelligencePrivate funds spend ~4 hrs on avg. analyzing every single PortCo update. That's 800 hrs per year for a fund with 50 startups in their portfolio (50 PortCos x 4 updates/year x 4 hrs)!How about 0 hours?Synaptic’s PortfolioIQ is your single source of truth for portfolio data, auto-updated from decks, excels, forms and emails. ZERO work for you or your PortCos.✍️ Show notesThe evolution of the marketplace landscape & what role AI started to play in this?* Over the past decade, digital marketplaces have evolved from simplistic online shopping platforms to highly sophisticated ecosystems. Initially, their success was driven by scale and convenience, but the shift towards AI integration has redefined user experiences and operational efficiencies.* Operational efficiencies: AI allows marketplaces to automate processes like customer service, fraud detection, and content moderation. Generative AI helps streamline listing creation by auto-generating product descriptions and handling inquiries, reducing costs while improving accuracy. Example with iFood who has embedded AI throughout its operations the last few years:* We’re seeing this with several of our food delivery investments. For iFood for example: For customers, AI provides personalized food recommendations and enhances customer support through chatbots, improving overall user experience. For drivers, AI optimizes delivery routes and schedules, allowing drivers to navigate efficiently and respond dynamically to demand.* For the Overall Platform: AI-driven demand forecasting and fraud detection enhance operational efficiency and security. For marketing and ad: 30% reduction in customer reacquisition costs, by deploying 75% of its advertising budget using AI strategies.* Success metrics: Prosus's iFood has hit a milestone of delivering more than 100 million orders in August. That is a more than 30% increase year-over-year. Cost to deliver have been reduced by 16%. All while customer satisfaction increased.* AI in Search and Discovery: Traditional keyword-based searches have evolved into more sophisticated systems powered by AI. Semantic, image, and voice searches now make product discovery seamless, improving user engagement and retention. Example with OLX.* Personalization: AI-based recommendation engines tailor product suggestions based on user behavior, preferences, and historical data. This enables marketplaces to create personalized shopping journeys, boosting user satisfaction and conversion rates.How is Europe’s marketplace landscape evolving compared to other regions like India or US?* We’re seeing European marketplaces prioritize sustainability and trust, while India focuses on growth and accessibility, and the U.S. on innovation and specialization. The EU is the world's largest exporter of manufactured goods and services, and is the biggest export market for around 80 countries.* India is an interesting market and one we’ve been investing in for more than a decade. Its e-commerce landscape has expanded rapidly due to a variety of factors - mobile-first access to the internet helped the market leapfrog traditional pace of internet (broadband) penetration, and there has been a strong government push to promote digital payments and building supporting infrastructure including highways and logistics support networks.* We’re seeing the blending of traditional commerce with digital solutions. Mobile-first platforms are critical here, as many consumers access the internet via smartphones, and companies are innovating to meet local needs, offering everything from hyperlocal delivery to vernacular language support. This model is democratizing access for small businesses, allowing them to reach new customers. For example, A huge proportion of shopping in India is done through mom-and-pop shops - 4.5mn mom and pop shops in the country.* Another interesting trend is the rise of social commerce. Consumers are not just buying products; they’re engaging with brands and sellers via platforms like WhatsApp and Instagram. WhatsApp has one of the highest market shares in India, and the same for Instagram.How exactly is AI reshaping shopping habits and enhancing user engagement in these digital platforms?* AI has fundamentally transformed how users interact with digital marketplaces, enhancing personalization and streamlining the user experience. We’re again excited about agents.* Agents - Conversational AI and Virtual Assistants**:** Chatbots and virtual assistants provide real-time support, helping users with product discovery and offering personalized recommendations. This is probably the area of fastest development in AI, agents can operate on both the buyer and seller side.* Search Innovation: AI has advanced search functionality, allowing users to search via natural language, voice, or images. This capability makes the shopping process more intuitive and boosts engagement, especially in sectors like real estate, where visual search and interactive tours are becoming more common.* Better recommendations: AI-powered systems analyze user behavior and preferences to deliver curated shopping experiences. This level of personalization not only improves user engagement but also leads to higher conversion rates.Where do you see the most promising investment opportunities in Europe’s AI-driven marketplaces?Operational efficiencies. For example, Photoroom supports European marketplaces by enabling sellers to enhance product images using AI. For instance, on food delivery platforms or shopping platforms like Zalando or Vinted, sellers can quickly remove backgrounds, create uniform product visuals, and batch-edit photos. This streamlined image editing improves the quality of product listings, making them more attractive to buyers, boosts sales and allows businesses to scale their operations efficiently. For food delivery, last mile delivery and logistics operations are seeing strong growth.How do you see the future of AI-driven marketplaces in Europe? What should investors be on the lookout for?* Localized AI Solutions: Europe’s fragmented regulatory landscape will require AI solutions tailored to specific legal and cultural contexts. Companies that can navigate this complexity while leveraging AI for personalization and compliance will have a competitive advantage.* Immersive Shopping Experiences with Extended Reality: AI-powered extended reality devices are likely to create immersive shopping environments, particularly in sectors like real estate and automotive. Virtual tours and 3D product views could significantly enhance user interaction with digital marketplaces.* Trust and Transparency: AI tools focused on fraud detection, price transparency, and secure transactions will be essential in maintaining consumer trust. As AI-driven fraud becomes more sophisticated, robust AI security measures will be crucial for success.* Again, Autonomous Shopping Agents: AI-driven agents capable of performing shopping tasks autonomously—such as finding the best prices, making purchases, and handling negotiations—could disrupt traditional marketplace models, creating new, streamlined shopping experiences.The Person Behind* Always treat everyone you meet with respect.* Every meeting is an opportunity to learn something, and you can learn something new from anyone.3 biggest learnings in venture* Everyone we talk to is human. Reiterating - treating everyone with grace and respect pays the biggest dividends.* The team is the most important factor to business success.* Even the rocket ship companies have their ups and downs, be even keeled during both pha...
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Dawn Capital's Evgenia Plotnikova on navigating today's exciting AI landscape
Nov 15, 202400:25:08Tap to summarizeHello and welcome back to 'At The Cap Table”, a podcast series here at EUVC, where we explore the journeys and insights of some of the most influential leaders in venture capital. Today, we’re thrilled to have Evgenia Plotnikova, General Partner at London HQ’d Dawn Capital. From her start in investment banking during the financial crisis to her role now in VC, she talks about the challenges, successes, and what it takes to thrive in an ever-evolving industry. We dive into her work at Dawn, what it means to be a B2B software specialist, and her thoughts on navigating today's exciting AI landscape. Let's get into it!Watch it here or add it to your episodes on Apple or Spotify 🎧 chapters for easy navigation available on the Spotify/Apple episode.✍️ Show notesBuilding Dawn Capital: Principles and GrowthDawn Capital, as Evgenia highlights, has always stuck to its core focus: B2B software. Founded back in 2006, before software became a mainstream obsession, Dawn carved a niche that has since proven crucial to its success. The key differentiators include:* Specialization from the Start: Unlike many funds, Dawn committed early to its focus on B2B software. This niche has allowed them to deeply understand their founders' challenges and deliver better support.* A Team Culture of Growth: Dawn operates as a true meritocracy. Evgenia herself was promoted from principal to general partner, and this “grow from within” culture helps the firm attract and retain incredible talent.Hard Truths About Venture ExitsEvgenia doesn’t shy away from the realities of venture, especially the exit process. Despite the hype, exits are often harder than they seem, especially when dealing with multi-round investments and high valuation expectations. She shares an important caution for founders:* The VC Treadmill: Once you’re on it—raising from seed to Series A, B, C, etc.—it’s hard to get off. And each round is a "betting the farm" decision, one that founders should be mindful of.* Raising with Prudence: Success shouldn’t just be defined by valuation but by customer love, real revenue growth, and a sustainable community. “Valuations are paper true, but not always reality true,” Evgenia wisely notes.Lessons in AI and Staying GroundedWith AI being the buzzword of the moment, Evgenia shares her view on the balance between seizing opportunities and staying true to fundamentals:* AI or Die?: Evgenia jokes about the "AI or die" mentality that seems to be sweeping the tech world. However, she insists on avoiding "AI for the sake of AI" and instead focusing on how it genuinely improves technology stacks and user experiences.* Sticking to Fundamentals: Just like during the cloud boom or early days of social, technology should solve a real problem, not just be trendy.Career Mentorship and Personal GrowthEvgenia attributes much of her growth to the mentorship culture at Dawn. Venture capital is, in her words, an "apprenticeship job," and she feels fortunate to have had supportive partners who allowed her to be true to herself while pushing her to excel. This authentic leadership style has helped her relate to a wide variety of founders and add value at the board level.Resilience and OptimismShe also emphasizes the need for resilience in venture:* Grit and Perseverance: The long timelines inherent in venture mean that investors, just like founders, need to persist through difficult periods without losing enthusiasm or optimism.* Optimism Amid Hype: While there is undeniable hype around technologies like AI, Evgenia keeps an eye on fundamentals, always returning to the core metrics that define real business health.If Not Venture, Then What?If Evgenia hadn’t chosen venture capital, she would have pursued a career in diplomacy. Originally passionate about political science, she once imagined herself influencing global affairs through diplomatic channels. Ironically, she finds that VC also allows her to have a significant impact—through funding innovative companies, supporting cutting-edge tech, and ultimately shaping the economic landscape in ways she hadn’t initially imagined.Tactyc is the leading forecasting and scenario-planning software for venture capital funds, combining portfolio construction, portfolio management, forecasting, and reporting into a unified platform.🤗 Join the EUVC CommunityLooking for niche, high-quality experiences that prioritize depth over breadth? Consider joining our community focused on delivering content tailored to the experienced VC. Here’s what you can look forward to as a member:* Exclusive Access & Discounts: Priority access to masterclasses with leading GPs & LPs, available on a first-come, first-served basis.* On-Demand Content: A platform with sessions you can access anytime, anywhere complete with presentations, templates and other resources.* Interactive AMAs: Engage directly with top GPs and LPs in exclusive small group sessions — entirely free for community members.🧠 Upcoming EUVC masterclassesAdvanced small-group sessions that take you from good to great. Lectured by leading GPs, LPs & Experts.✍🏻 EUVC Masterclass | Marketing & VC Fund NarrativeYour brand is everything. It’s what sets you apart, helps you win the best deals, attract LPs, and ultimately drive your growth. For emerging fund managers, building a credible brand and establishing the right marketing foundations early on are game-changers. Yet, many don’t know where to begin.Your fund’s narrative is what makes the difference between an LP glancing at your deck or deciding they’re ready to write a check. It’s your brand that makes LPs feel confident they’re partnering with someone who knows how to make magic happen.We’re planning a masterclass on building strong marketing foundations with a top industry leader. If enough people show interest, we’ll make it happen.✍🏻 EUVC Masterclass | Benchmarketing for GPs & LPsJoin us for an in-depth session on VC Fund Terms & KPIs: Mastering Metrics for Fund Success. This workshop will focus on the key performance indicators (KPIs) that drive VC fund performance and the critical timing for measuring these metrics. You’ll gain insights into what matters most to Limited Partners (LPs) and what General Partners (GPs) should focus on internally for effective fund management.The session will also cover how to set up a comprehensive dashboard, including portfolio tracking, to streamline your reporting and ensure your fund’s success.Special offer: Join the EUVC Community for 25€ per month and get 100€ off while enjoying access to on-demand masterclasses, tools & templates and monthly AMAs with leading GPs, LPs & experts.🏔️ EUVC Nordic Getaway on June 5 - 8, 2025🗓️ The VC Conferences You Can’t MissThere are some events that just have to be on the calendar. Here’s our list, hit us up if you’re going, we’d love to meet!GoWest | 📆 28 - 30 January 2025 | 🌍 Gothenburg, SwedenGITEX Europe 2025 | 📆 23 - 25 May 2025 | 🌍 Berlin, Germany This is a public episode. If you’d like to discuss this with other subscribers or get access to bonus episodes, visit www.eu.vc/subscribe
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AI Startups' Revenue, EU Startup Passport Launch, German Government Collapse, and Google's AI Coding Surge – with Dan Bowyer
Nov 14, 202400:27:43Tap to summarizeWelcome to a new episode of the EUVC podcast, where we’ll cover recent news and movements in the European tech landscape with Dan Bowyer and Mads Jensen from SuperSeed.Watch it here or add it to your episodes on Apple or Spotify 🎧 chapters for easy navigation available on the Spotify/Apple episode.✍️ Show NotesAI Startups Making Real MoneyAI startups are gaining traction faster than ever, with the average time to hit $1M in revenue being 11 months—significantly faster than SaaS at 15 months. Highlighting this success is Cursor's impressive leap from $4M ARR to $4M MRR in under a year. Dan and Mads discuss how OpenAI's soaring revenue, nearly reaching $4 billion, is further proof that AI is generating tangible financial value and not just hype.* Faster Revenue Milestones: AI startups are reaching $1 million in revenue within an average of 11 months, significantly faster than SaaS companies, which take around 15 months.* OpenAI’s Growth: OpenAI has notably achieved $4 billion in revenue, showcasing the impressive financial potential of AI technology.* Increased Automation: AI now writes over 25% of Google's code, reflecting a broader trend towards automation in software development, which is reshaping the industry's landscape.COP29 - none of the big wigs are thereThe climate conference COP 29 turned out to be underwhelming this year with major leaders absent, including Xi Jinping, Joe Biden, and Putin. Mads reflects on the consequences, emphasizing that Europe can’t rely on these big global events alone for change. Instead, European nations must take a lead role in climate action.* Lack of High-Level Participation: The absence of leaders from key countries like the US, China, and Russia has weakened the perceived legitimacy of COP 29, with many dismissing it as a symbolic event rather than a platform for concrete action.* UK’s Aggressive Emission Targets: In contrast, the UK, under Starmer, has set ambitious emission reduction targets—aiming for an 81% cut by 2035. This demonstrates that local leadership may be crucial in spearheading climate initiatives when global cooperation falls short.* Questions of Effectiveness: With fewer influential leaders involved, the effectiveness of COP 29 in fostering meaningful change is in doubt, emphasizing the need for regional and national leaders to take more decisive actions.The new EU Startup passportUrsula von der Leyen has announced the EU Startup Passport, also called the 28th regime, which aims to simplify regulations for startups across the EU, creating a unified regulatory framework. The key motivations and anticipated impacts are:* Regulatory Simplification: Startups often face difficulty in navigating the varying laws across the 27 EU member states. The 28th regime aims to create a single, standardized set of rules, providing startups with a consistent framework regardless of location.* Increased Competitiveness: By reducing bureaucratic hurdles, startups can focus more on growth and innovation, ultimately making the European market more attractive compared to other regions such as the US, which has a more unified commercial environment.* Support for Smaller Startups: Unlike large corporations that have teams to navigate complex legislative differences, smaller startups struggle to expand across borders due to resource limitations. The EU Startup Passport aims to level the playing field, allowing smaller entities to benefit from easier access to all member states.* Next Step for the Single Market: This initiative is seen as a crucial evolution of the EU's single market, promoting growth, fostering innovation, and encouraging startups to take advantage of the European ecosystem in a way that has previously been difficult due to fragmented regulations.German Government has collapsedThe collapse of the German coalition government due to disagreements over Ukraine and domestic reforms has led to significant political instability. The key issues and potential impacts are:* Political Instability: The collapse has introduced uncertainty, which may create short-term challenges for governance and policy-making in Germany.* Opportunities for European Reforms: This turmoil could pave the way for broader European reforms, potentially creating momentum for improving energy, trade, and economic policies.* Implications for EU Leadership: Germany, as a major EU power, plays a critical role in driving the bloc's initiatives. A more reform-minded government could potentially lead to significant positive changes for Europe.AI Now Writes Over 25% of Code at GoogleAI Now Writes Over 25% of Code at Google. Google's use of AI to write code marks a significant shift towards automation in the tech industry. The key insights and potential impacts are:* Automation in Software Development: Over 25% of Google's code is now written by AI, which is reshaping the role of software engineers and how code is developed in large tech companies.* Increased Productivity: The use of AI for coding is enhancing productivity, allowing developers to focus on more complex tasks while AI handles repetitive or foundational code work.* Future of Engineering Roles: This trend could lead to a shift in software engineering roles, with a greater emphasis on creative problem-solving and system-level design as AI handles more of the routine coding tasks.Google Confirms Jarvis AI Is Real by Accidentally Leaking ItGoogle Confirms Jarvis AI Is Real: Google accidentally confirmed the existence of Jarvis AI through a leak, raising questions about the capabilities of this previously unknown project. The key insights and potential impacts are:* Confirmation of Jarvis AI: The accidental leak reveals that Google is working on a powerful AI known as Jarvis, suggesting advancements in AI development that were not previously public.* Implications for AI Capabilities: The existence of Jarvis could point towards highly sophisticated AI capabilities that may significantly enhance productivity and integration across Google's services.* Future AI Applications: This leak indicates that Google may be preparing for the launch of new AI-driven products or services, potentially setting new benchmarks for what AI can accomplish in the tech industry.Artificial Intelligence, Scientific Discovery, and Product InnovationArtificial Intelligence, Scientific Discovery, and Product Innovation: The report by Aidan Toner-Rodgers at MIT explores how AI is transforming scientific research and innovation. The key insights and potential impacts are:* AI-Powered Idea Generation: AI automates 57% of idea-generation tasks, freeing scientists to focus on evaluating AI-suggested compounds rather than repetitive exploration.* Reduction of Low-Value Research: By minimizing the pursuit of low-value or dead-end research directions, AI helps researchers concentrate on more promising opportunities.* Increased Discovery and Innovation: AI-assisted researchers have experienced a 44% increase in material discoveries, leading to a 39% rise in patent filings and a 17% boost in product prototypes that incorporate these newly discovered materials.🧠 Upcoming EUVC masterclassesAdvanced small-group sessions that take you from good to great. Lectured by leading GPs, LPs & Experts.✍🏻 EUVC Masterclass | Marketing & VC Fund NarrativeYour brand is everything. It’s what sets you apart, helps you win the best deals, attract LPs, and ultimately drive your growth. For emerging fund managers, building a credible brand and establishing the right marketing foundations early on are game-changers. Yet, many don’t know where to begin.Your fund’s narrative is what makes the difference between an LP glancing at your deck or deciding they’re ready to write a check. It’s your brand that makes LPs feel confident they’re partnering with someone who knows how to make magic happen.We’re planning a masterclass on building strong marketing foundations with a top industry leader. If enough people show interest, we’ll make it happen.✍🏻 EUVC Masterclass | <a target="_blank" href="https://airtable.com/app3F8k6Eu...
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This Week in European Tech with Dan Bowyer, The Agrifoodtech Effect, and more
Nov 14, 202400:27:43Tap to summarizeAnother packed newsletter for you. Let’s get into it.* 🎧 Podcast with Dan Bowyer & Mads Jensen on AI Startups' Revenue, EU Startup Passport Launch, German Government Collapse, and Google's AI Coding Surge* 📝 The Agrifoodtech Effect 🍽️ - Transforming Gastronomy with Cutting-Edge TechnologyWe’ve got some standout submissions on the community insights platform to share, plus upcoming workshops in the EUVC community you won’t want to miss.* 📝 Living a new life and playing the long game: A conversation with Lomax Ward* 📝 Making fashion sustainable with a specialized fund, interview w. Michael Kleindl (Collateral Good)To get featured, go here.Join EUVC community for access to exclusive masterclasses, small group LP AMAs, and an ever increasing repository of tools.AI Startups' Revenue, EU Startup Passport Launch, German Government Collapse, and Google's AI Coding Surge – with Dan BowyerWelcome to a new episode of the EUVC podcast, where we’ll cover recent news and movements in the European tech landscape with Dan Bowyer and Mads Jensen from SuperSeed.Watch it here or add it to your episodes on Apple or Spotify 🎧 chapters for easy navigation available on the Spotify/Apple episode.✍️ Show NotesAI Startups Making Real MoneyAI startups are gaining traction faster than ever, with the average time to hit $1M in revenue being 11 months—significantly faster than SaaS at 15 months. Highlighting this success is Cursor's impressive leap from $4M ARR to $4M MRR in under a year. Dan and Mads discuss how OpenAI's soaring revenue, nearly reaching $4 billion, is further proof that AI is generating tangible financial value and not just hype.* Faster Revenue Milestones: AI startups are reaching $1 million in revenue within an average of 11 months, significantly faster than SaaS companies, which take around 15 months.* OpenAI’s Growth: OpenAI has notably achieved $4 billion in revenue, showcasing the impressive financial potential of AI technology.* Increased Automation: AI now writes over 25% of Google's code, reflecting a broader trend towards automation in software development, which is reshaping the industry's landscape.COP29 - none of the big wigs are thereThe climate conference COP 29 turned out to be underwhelming this year with major leaders absent, including Xi Jinping, Joe Biden, and Putin. Mads reflects on the consequences, emphasizing that Europe can’t rely on these big global events alone for change. Instead, European nations must take a lead role in climate action.* Lack of High-Level Participation: The absence of leaders from key countries like the US, China, and Russia has weakened the perceived legitimacy of COP 29, with many dismissing it as a symbolic event rather than a platform for concrete action.* UK’s Aggressive Emission Targets: In contrast, the UK, under Starmer, has set ambitious emission reduction targets—aiming for an 81% cut by 2035. This demonstrates that local leadership may be crucial in spearheading climate initiatives when global cooperation falls short.* Questions of Effectiveness: With fewer influential leaders involved, the effectiveness of COP 29 in fostering meaningful change is in doubt, emphasizing the need for regional and national leaders to take more decisive actions.The new EU Startup passportUrsula von der Leyen has announced the EU Startup Passport, also called the 28th regime, which aims to simplify regulations for startups across the EU, creating a unified regulatory framework. The key motivations and anticipated impacts are:* Regulatory Simplification: Startups often face difficulty in navigating the varying laws across the 27 EU member states. The 28th regime aims to create a single, standardized set of rules, providing startups with a consistent framework regardless of location.* Increased Competitiveness: By reducing bureaucratic hurdles, startups can focus more on growth and innovation, ultimately making the European market more attractive compared to other regions such as the US, which has a more unified commercial environment.* Support for Smaller Startups: Unlike large corporations that have teams to navigate complex legislative differences, smaller startups struggle to expand across borders due to resource limitations. The EU Startup Passport aims to level the playing field, allowing smaller entities to benefit from easier access to all member states.* Next Step for the Single Market: This initiative is seen as a crucial evolution of the EU's single market, promoting growth, fostering innovation, and encouraging startups to take advantage of the European ecosystem in a way that has previously been difficult due to fragmented regulations.German Government has collapsedThe collapse of the German coalition government due to disagreements over Ukraine and domestic reforms has led to significant political instability. The key issues and potential impacts are:* Political Instability: The collapse has introduced uncertainty, which may create short-term challenges for governance and policy-making in Germany.* Opportunities for European Reforms: This turmoil could pave the way for broader European reforms, potentially creating momentum for improving energy, trade, and economic policies.* Implications for EU Leadership: Germany, as a major EU power, plays a critical role in driving the bloc's initiatives. A more reform-minded government could potentially lead to significant positive changes for Europe.AI Now Writes Over 25% of Code at GoogleAI Now Writes Over 25% of Code at Google. Google's use of AI to write code marks a significant shift towards automation in the tech industry. The key insights and potential impacts are:* Automation in Software Development: Over 25% of Google's code is now written by AI, which is reshaping the role of software engineers and how code is developed in large tech companies.* Increased Productivity: The use of AI for coding is enhancing productivity, allowing developers to focus on more complex tasks while AI handles repetitive or foundational code work.* Future of Engineering Roles: This trend could lead to a shift in software engineering roles, with a greater emphasis on creative problem-solving and system-level design as AI handles more of the routine coding tasks.Google Confirms Jarvis AI Is Real by Accidentally Leaking ItGoogle Confirms Jarvis AI Is Real: Google accidentally confirmed the existence of Jarvis AI through a leak, raising questions about the capabilities of this previously unknown project. The key insights and potential impacts are:* Confirmation of Jarvis AI: The accidental leak reveals that Google is working on a powerful AI known as Jarvis, suggesting advancements in AI development that were not previously public.* Implications for AI Capabilities: The existence of Jarvis could point towards highly sophisticated AI capabilities that may significantly enhance productivity and integration across Google's services.* Future AI Applications: This leak indicates that Google may be preparing for the launch of new AI-driven products or services, potentially setting new benchmarks for what AI can accomplish in the tech industry.Artificial Intelligence, Scientific Discovery, and Product InnovationArtificial Intelligence, Scientific Discovery, and Product Innovation: The report by Aidan Toner-Rodgers at MIT explores how AI is transforming scientific research and innovation. The key insights and potential impacts are:* AI-Powered Idea Generation: AI automates 57% of idea-generation tasks, freeing scientists to focus on evaluating AI-suggested compounds rather than repetitive exploration.* Reduction of Low-Value Research: By minimizing the pursuit of low-...
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Material10’s Maitham Mohamed on revolutionizing in-game economies & the future of gaming
Nov 13, 202401:04:59Tap to summarizeIn this episode of the EUVC podcast, Andreas speaks with Maitham Mohamed, CEO of Material10.Andreas and Maitham explore the rapid evolution of the gaming industry, discussing innovative business models and unique approaches to monetization that are reshaping consumer engagement worldwide. Maitham shares his journey to founding Material10 in 2022, highlighting his mission to revolutionize mass-market gaming with a free-to-play model that aims to drive sustained player engagement while building a new revenue framework.At Material10, Maitham leads a lean team of 10 from the company’s headquarters in the United Kingdom, backed by €2.5 million in funding. With a focus on the global mass-market gaming audience, Material10 is positioning itself as a disruptive player in the gaming space, delivering immersive experiences that appeal to a broad demographic and challenging traditional B2C models.Watch it here or add it to your episodes on Apple or Spotify 🎧 chapters for easy navigation available on the Spotify/Apple episode.✍️ Show notesWhat inspired you to start Material10?* My background is all over the place but i started my company when i was about 19yo. For me, it all started during COVID which was supposed to be when i did my A-levels (entry style exam for university) and because of COVID, Boris Johnson decided to cancel them and gave everyone “generated grades”. Effectively they had an algo based on what they think you might’ve gotten based on some inputs including how you did on your mock exams. I was pretty unserious through the year and my whole thing was pulling through in the last moment, but this time it fully got cancelled and i didn’t get into the university i was supposed to go to.* After that, i thought my life was over bcos i didn’t get into one of those “target universities” that you needed to go to for investment banking, which is where everyone in London wants to go to. Ended up using that as motivation to grind very hard and somehow managed to start working at a boutique investment bank in London. Did that for a bit before realising investment banking probably wasn’t for me. Moved into big tech, was a Product Manager at Amazon — great people but the work was too granular and felt too zoomed in. I had always been working on side projects and that’s when i started to take startups more seriously, ended up working at this DeFi protocol called OlympusDAO which was creating these radically new economic systems, something i was always fascinated with. That ended up going from zero to $4B+ in a year, this was during the crazy crypto cycle around 2021. It was an incredible experience for me, both for learning and getting quite deep into crypto / startups. Then ended up working with this Series A, Web3 gaming startup before moving on and starting Material10.* Material10 started bcos of my addiction to FIFA Ultimate Team when i was young. I used to be a semi-pro esports player many years ago, mainly competing in local tournaments in London. Everyone wanted the best players — Ronaldo, Messi, Neymar, Kaka, etc, and so did i. You mainly got these from either opening these packs where you had a random probability of getting good players, or through buying it on the marketplace through FIFA coins.* For both options, you needed to spend ALOT of money. My parents had already bought me the base game for £50-60 and there was no way they were going to give me 100s to blow on opening packs (or loot boxes as they’re known in gaming). Lucky for me, FIFA had a vibrant ingame economy where players used to trade millions of items with each other. I ended up just trading the markets to make the coins i needed — you could literally apply fairly sophisticated strategies to these markets and scrape FIFA coins from flips, arbitrages, thematic investments, etc. Somehow ended up trading my way to having millions of coins to buy my favourite player (which at the time was Neymar). There was also these shady grey markets where you could sell these coins for real money too.* This all led me to starting Material10, where what we’re doing is based on the premise of integrating these grey markets into the actual game will lead to something incredibly powerful. There are these grey markets that exist all across many popular multiplayer games and there’s an estimated $10-20B of grey market trading, players REALLY seem to be able to do this within games.What’s one thing most people misunderstand about Material10?* We’re working on a fresh unique video game and also a new business model powered by a player-driven open economy. Many people like both but feel maybe there’s too many risk to having this unique business model / economy AND having a fresh game. To some extent, i agree but they’re fundamentally inseparable.* The types of games that have the capacity to have these deep ingame economies with billions of dollars in trading volume, will be competitive multiplayer games that are sometimes dubbed ‘forever games’ e.g. Fortnite, World of Warcraft, CSGO, etc. Those games are called “forever games” for a reason — something like 92% of ALL playtime every year goes to old games.* If you want to have a competitive chance at creating one of these games, even for the sake of creating these vibrant economies, the game you make needs to be fundamentally fresh and unique. We’ve seen many attempts, just this year, to create these big competitive multiplayer games and almost all have failed because they were only iteratively unique — few tweaks, maybe a new gimmick or so, but nothing that pushes game design / the core gameplay experience fundamentally. They don’t survive long enough for the economy / business model to even matter.* Good example of this is Concord, they spent around $200-400M to create a new hero shooter, nothing that unique / special but very high production value. They shut the game down and refunded everyone, i believe in less than 2 weeks after launch. That is insane.Was there a specific 'aha moment' that led to founding Material10?* I was sold on the idea of having open economies in video games from the literal first 10 seconds of hearing about it bcos of my background in gaming (FIFA, etc).* But the inflection point after learning about web3 / open economy gaming and then deciding i personally need to start a gaming company was when i tried to find these games to play (because i was so excited that this concept is a real thing) — and to my dismay, all the games that incorporated this concept were terrible from a gameplay standpoint.What big problem are you solving, and why does it matter right now?* We want to create the most sticky game ever. We now live in the “brain rot” era where it’s insanely hard to first, win attention, then to keep it. People increasingly have low attention spans, low focus and there’s a need for constant dopamine.* It has espc manifested in gaming where players want high dopamine games with frequent reward cycles. It’s why we’ve seen the decline of RTS games, reduced session lengths of overall games & shorter / no cutscenes in RPG games now.* Most of the top competitive multiplayer games (”forever games”) are from the pre brain rot era and whilst players love these games, there is an opportunity to create a new shooter experience that adheres to the modern player needs.How is your solution different from existing solutions? Why hasn’t someone else done this?* We’re working on a competitive multiplayer shooter game. Competitive multiplayer live service games are the only ones in gaming that tend to have power law venture outcomes e.g. League of Legends from Riot, Clash of Clans / Clash Royale from Supercell, etc. Mainly bcos they’re infinitely replayable bcos players playing against each other is the content itself, no two game sessions are the same (if the game is designed well).* The game we’re working on is called Project Fallen — it’s a new type of shooter game, 1v1 — me vs you. Both players control 5 squads, each made up of x1 commander & x4 soldiers. Both players start with their squads at opposite sides of the map and storm across the map trying to kill each other to capture parts of the map to extract resources from it.* The very core & addictive element of it is this ability to hotswap between your squads in third-person shooter mode. You can easily jump from Squad 1 to Squad 2 to Squad 3, very rapidly.* It essentially creates a very high action, intense gameplay experience where you’re constantly jumping between squads depending on where you’re needed the most. Maybe you’re jumping between a heavy squad with grenade launchers clearing the left flank, before moving into a sniper squad trying to clear a pathway for another squad.* The idea is to have no boring moments.* Beyond that, we’re also leveraging web3 — the way i think about web3 in this context is like pouring gasoline on a fire.* As i mentioned previously, there are these multi-billion dollar grey markets that exist in gaming. Players want to trade ingame items with each other for real money. Whilst there are some basic tools to try integrate them on web2 tech, web3 is really what can really make it work.* We’re going to have this completely player-driven economy, everything from cosmetics to power items. There’s only one game that has really done this, which is EVE Online, it’s a space simulation game that has been around for almost 25 years. B...
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Future of work & learning VC Emerge launches oversubscribed Fund II at $73M
Nov 12, 202401:10:20Tap to summarizeIn this episode of the EUVC podcast, Andreas sits down with Jan Lynn-Matern, Founder and General Partner at Emerge, a global pre-seed fund backed by over 100 leading operators in the future of work and learning. Jan shares Emerge’s mission to democratize access to opportunity for early-stage founders, providing not just capital but deep expertise and a community of seasoned professionals.Together, Andreas and Jan dive into how AI is transforming work and education. They discuss Emerge’s investment philosophy and focus on impact, the importance of nurturing curiosity from a young age, and Jan's insights on the European market and its dynamics. Jan sheds light on the evolving landscape of education, the challenges and opportunities posed by generative AI, and how these shifts are redefining job markets. The conversation explores the critical need for adaptability and upskilling within organizations to keep up with technological change and how AI could become a powerful tool for enhancing learning and career development.This episode offers a nuanced look at Jan’s journey, Emerge’s investment approach, and the unique role AI plays in reshaping the future of work, learning, and access to opportunity.Watch it here or add it to your episodes on Apple or Spotify 🎧 chapters for easy navigation available on the Spotify/Apple episode.✍️ Show notesWhy we are here — Emerge ManifestoEmerge is a $73m pre-seed fund backed by 100+ of the world’s best future of work and learning operators. AI is fundamentally reshaping how we learn, find and do our jobs, and the companies that harness this shift will define the future. Our vision is to democratise access to opportunity by being a catalytic partner for early-stage founders focused on this seismic shift.We were the first specialist future of work and learning investor in Europe. Over the past decade, we have made 80+ investments in companies now valued at over $2b and impacting more than 31M people worldwide.The reason we do what we do is because we got lucky. We’re the kids of immigrants, refugees and working-class parents, and we were lucky to receive world-class education and training that gave us access to career opportunities our parents could only dream of.Now we are on a mission to support the most important transition the world will see this century. The opportunity to live up to your full potential should not be a privilege but a right for everyone.What we offer foundersOur mission is to be the best first cheque for foundersWe have designed a three-pronged value proposition for pre-seed founders: we write big cheques, early; we match you with world-class operators to enable you to move faster; and we’re in your corner during future fundraises.* 1) We write big cheques, early: The most important thing early on is to act fast and make bold moves, but you can only do so if you don’t have to worry about fundraising. Unlike most pre-seed investors, we are unafraid to write significant cheques ($500k — $2.5m) into pre-revenue, often pre-product companies — to enable you to focus on building.“Emerge’s process was fast and they took a high conviction bet on us very early on. With our first institutional round, that was exactly what we were looking for. Together with the incredible support of their VPs, we knew Emerge was the perfect fit for us.” — Richard Weiqi Zhang, co-founder at Solvely Labs, which develops AI agents for learning* 2) We match you with world-class operators: You will learn from those who have been in your shoes and have built 50 of the top 100 future of work and learning companies in the world. We match you with mentors, advisors and even independent board members from our community of 100+ Venture Partners, spanning every future of work and learning category, to accelerate your path to product-market fit and Series A. Every company we invest in directly benefits from this community and our resulting portfolio NPS is a stunning 90.“Being able to rely on some of the world’s leading entrepreneurs in our industry for detailed advice on topics such as product expansion, positioning and pricing has massively accelerated our learning. Getting Emerge as a pre-seed investor was like getting a one year headstart on our competitors.” — Dominik Mate Kovacs, founder and CEO of Colossyan, the global AI video company* 3) We’re in your corner during subsequent fundraises: When the time is right, we move mountains to raise your next round. As of today, an incredible 80% of our fund investments have gone on to raise up-rounds following our initial investment, raising from the likes of Index, Maveron, Lakestar, Partech, Iconiq, Earlybird, Localglobe, First Round and Founder Collective.“Emerge were our first investor at pre-seed and have introduced us to the lead investor of every subsequent round, inclusive of our Series B. They have been so crucial to our success.” — Ben Drury, co-founder and CEO of Yoto, the global early years consumer brandIn short, we are the market experts you need to help you go from startup to IPO.➡ Building a company transforming the future of work or learning? Get in touch! The easiest way to do so is to send us your deck via our simple Typeform, here.What are we looking for?When we say early, we mean early. While traction is always helpful, we primarily look for founders who we believe can change the world, pursuing big ideas in market categories we believe in.* Founders who will change the world: We look for founding teams with the propensity to think big, the ability to move fast and the skills to create value. Throughout our investment process, we build a detailed picture of your founding team — how you think and execute, and how you have challenged the status quo.* Big ideas in market categories we believe in: We are a thesis-driven investor. As market experts, we think as deeply about the market opportunities founders are pursuing as they do. We deeply understand every area we invest in, with strong confidence that our specialist knowledge can add value. Read the ‘request for startups’ section of this manifesto to learn about our current interest areas. Our thesis constantly evolves and this document is not updated in real-time, so if your idea is not represented in the list but you are building something exciting in this space, get in touch with us anyway.If we are convinced these two factors are in place, we are ready to partner with you, no matter how early you are on product or traction.Our investment process, from the founders’ perspective* Get in touch: The easiest way to get in touch is to send us your deck via this link.* Exploration: If we see a fit, we will arrange a first call with one of our investment team, often followed by a demo walk-through.* Monday Meeting: The next stage is to present to all three Partners at a Monday Meeting, after which we give you a strong indication of how likely we are to make an offer and you will start meeting some of our Venture Partners as potential matches. This can be as soon as one week after our first call.* Investment Committee: The final stage is our investment committee meeting, in advance of which we will work collaboratively with you to build a deeper analysis of the opportunity.* Term sheet: 2–4 weeks after our first call, you receive a term sheet from us and get matched with the best Venture Partners for your journey.Our investment thesisA new worldWill robots steal our jobs? The short answer is: yes, they might, but if we can adapt, we’ll get a better one.AI is changing everything — it’s a general purpose technology, so it affects every aspect of how we live, learn and work. Some parts of our jobs will be automated, some augmented and the rest will be performed by people who can work most effectively alongside AI. These changes are bigger than anything we’ve seen since the Industrial Revolution.In addition, AI will add more to global GDP by 2030 than the current output of the United Kingdom. That growth will create plenty of good jobs (up to 50 million), many of which will be in new types of occupations that haven’t even existed before.In a nutsh...
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Election Drama, Big Tech’s AI Monopoly, Buffett’s Cash Strategy, Starmer’s Slow Reforms, and Founder Burnout – with Dan Bowyer
Nov 8, 202400:33:02Tap to summarizeWelcome to a new episode of the EUVC podcast, where we’ll cover recent news and movements in the European tech landscape with Dan Bowyer and Mads Jensen from SuperSeed.Watch it here or add it to your episodes on Apple or Spotify 🎧 chapters for easy navigation available on the Spotify/Apple episode.100% Automated, 100% Accurate Portfolio IntelligencePrivate funds spend ~4 hrs on avg. analyzing every single PortCo update. That's 800 hrs per year for a fund with 50 startups in their portfolio (50 PortCos x 4 updates/year x 4 hrs)!How about 0 hours?Synaptic’s PortfolioIQ is your single source of truth for portfolio data, auto-updated from decks, excels, forms and emails. ZERO work for you or your PortCos.✍️ Show Notes U.S. Election Drama & Its Global ImpactThe episode kicks off with a discussion on the upcoming U.S. election and its implications for tech, M&A, and the venture ecosystem. Dan and Mads dive into election stakes, predicting outcomes in key swing states, and the influence on global markets.* Geopolitical Impact: The outcome of the U.S. election is likely to shape global geopolitical dynamics, influencing U.S. involvement in Ukraine, the Middle East, and broader international relations. Mads highlights how these events could ripple into tech and finance, potentially impacting inflation and market stability.* Tech M&A Hopes: Under Trump, a more business-friendly stance could emerge, particularly regarding tech mergers. Policies easing restrictions on tech M&A would likely open more liquidity options for startups, fostering exit opportunities and enhancing deal flow in the venture space.* Election Drama and Market Uncertainty: With nearly half of U.S. voters casting ballots early, Dan and Mads comment on the close polling and potential for a highly contested result. They discuss how this uncertainty fuels volatility in global markets, keeping investors on edge and impacting VC sentiment in the U.S. and Europe.* Implications for Tech Policy: Beyond M&A, tech policies may face significant changes post-election. Depending on the administration, regulatory perspectives on Big Tech, immigration policies affecting tech talent, and spending on innovation and defense technology could all shift dramatically, impacting both the U.S. and European tech ecosystems.The CHIPS Act & Strategic ConcernsDan and Mads examine Noah Smith’s perspective on the CHIPS Act, a bipartisan initiative that’s bolstered U.S. semiconductor manufacturing, fueling job growth and competitiveness in a critical sector.* U.S. Semiconductor Leadership: The CHIPS Act has established the U.S. as a global leader in semiconductor production, driven by streamlined regulations and robust federal funding. This support has attracted significant private investment, multiplying the initial government outlay and ensuring U.S. dominance in semiconductor technology.* Economic & Strategic Impact: With over $280 billion in funding, including $52 billion for semiconductor research and manufacturing incentives, the CHIPS Act aims to strengthen the domestic supply chain. The long-term impact extends beyond tech, affecting sectors like defense, automotive, and consumer electronics, while creating thousands of high-skilled jobs across the U.S.* Europe’s Efforts to Compete: Europe’s CHIP Act seeks to emulate the U.S. success by allocating €11 billion for semiconductor projects, aiming to drive private investment and reduce dependency on non-European suppliers. However, Europe faces challenges, including slower regulatory processes and limited central funding, which hamper its ability to keep pace.* Collaborative Initiatives & Potential Gaps: While U.S. semiconductor initiatives have accelerated due to federal coordination, Europe’s approach relies on individual nations to fund and execute projects, often leading to delays. Dan and Mads suggest that a unified European strategy with faster approval processes and greater cross-country support will be essential if Europe wants to close the gap with the U.S..Warren Buffett’s Strategic Sell-Off: Cashing Up for Future OpportunitiesWarren Buffett has been making headlines with Berkshire Hathaway’s substantial sales, especially in Apple, resulting in a record $325 billion in cash reserves. The timing and motivations are multifaceted:* Market Valuation Concerns: Buffett is cautious about current high stock valuations, making it challenging to find value-driven investments. Selling now allows Berkshire to wait for better opportunities if markets correct.* Tax Strategy: With the possibility of future tax increases, Buffett's recent sales capitalize on the current corporate tax rate of 21%. Selling Apple stock, in particular, could result in a tax bill of $20 billion but offers tax advantages at today’s rates.* Portfolio Balance: Apple’s significant position (nearly 50% of Berkshire's portfolio) presented a concentration risk. This sell-off helps diversify holdings and balance the portfolio’s risk exposure.* Preparedness for Economic Downturns: By bolstering cash reserves, Berkshire is positioned to deploy capital if an economic downturn or market volatility creates value opportunities.Buffett’s conservative and strategic approach suggests a readiness to invest in new opportunities while mitigating current risks, echoing his long-held value-focused investing principles.Starmer’s Vision for Reform: Promises and ProgressLabour leader Keir Starmer has outlined ambitious reform plans for the UK, yet many question where tangible actions meet the rhetoric. The discussion covers the expectations and gaps in his administration’s approach:* A Push for Stability First: Starmer's emphasis on stability over immediate investment aims to repair structural issues, like filling the fiscal gap and addressing NHS deficits, before making significant new investments. While this resonates with some, others find it lacks the urgency needed for immediate economic stimulation.* Investment Frameworks & Private Sector Frustration: The government’s approach to major projects, like the third runway at Heathrow, is a litmus test of its commitment to attracting private capital. There’s a pressing need for regulatory clarity and expedited approvals to reassure investors. As it stands, the government’s slow movement has left investors skeptical about the UK’s readiness to “go back to building and growing”.* Labour’s Connection to Business Realities: Starmer’s administration is criticized for lacking direct business experience among key decision-makers, which affects their understanding of wealth creation and economic growth dynamics. Without this, policies risk being overly bureaucratic or distant from the needs of the private sector.Will big tech enjoy all the gains from the AI boom?With AI continuing to reshape industries, the conversation centers around whether big tech companies will consolidate their grip on AI-driven gains, or if there’s room for broader participation.* AI Boom and Market Dominance: Since OpenAI’s ChatGPT launched in late 2022, AI has propelled trillions in market cap for tech giants. Companies like Microsoft, Google, and Meta are poised to capitalize on their scale, deep resources, and proprietary models, making it challenging for new entrants to compete.* OpenAI’s Competitive Edge: OpenAI's rapid iteration and product quality—backed by Microsoft—are setting a high bar. This progress has spurred companies like Google to revisit and reinforce their own AI strategies, as competition heats up across the board.* Europe’s Role in AI and Semiconductors: The discussion highlights that for Europe to participate meaningfully in the AI boom, investments in semiconductor manufacturing are critical. Existing players like ARM and ASML offer a base, but more robust funding and policy support are needed to support Europe’s tech independence and prevent over-reliance on big U.S. playersBalderton Capital’s Report on Founder Mental Health: Burnout on the RiseBalderton Capital’s latest founder wellbeing survey sheds light on the growing mental health challenges facing startup founders, with burnout rates escalating across the ecosystem.* Burnout as a Major Issue: The survey reveals that over two-thirds of founders now identify burnout from stress as a significant issue, marking an increase from 62% last year. The findings underscore the intense pressures of the startup journey, exacerbated by financial stress, high expectations, and an uncertain market.* Factors Driving Founder Stress: Financial uncertainty is one of the leading stressors, with 42% of founders attributing burnout to financial strain amid down rounds and capital constraints. The mental toll appears even more pronounced for older founders, who tend to face addit...
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Robin Capital's Robin Haak on the solo GP path and being a founder-led VC in Europe
Nov 7, 202400:51:16Tap to summarizeIn this episode of the EUVC podcast, Andreas is joined by Robin Haak, the solo GP behind Robin Capital, to share his unique journey through venture capital and entrepreneurship.Robin opens up about his extraordinary path, from building a coffee shop in Bhutan to fighting Muay Thai in Thailand, and how these experiences shaped his investing philosophy. Andreas and Robin discuss the realities of being a solo GP in Europe, the challenges of fundraising, and the importance of community-driven LP relationships. Robin shares why he chose the solo GP route after co-built Revaia, a €250 million growth fund, and why staying small and boutique matters to him.This episode goes beyond the typical investment talk. It dives deep into what drives Robin, the principles behind his investments, and the personal journey that shaped him into the investor he is today. Robin’s story is one of resilience, growth, and a deep desire to serve founders in ways that go beyond just financial backing.Watch it here or add it to your episodes on Apple or Spotify 🎧 chapters for easy navigation available on the Spotify/Apple episode.100% Automated, 100% Accurate Portfolio IntelligencePrivate funds spend ~4 hrs on avg. analyzing every single PortCo update. That's 800 hrs per year for a fund with 50 startups in their portfolio (50 PortCos x 4 updates/year x 4 hrs)!How about 0 hours?Synaptic’s PortfolioIQ is your single source of truth for portfolio data, auto-updated from decks, excels, forms and emails. ZERO work for you or your PortCos.✍️ Show notesEmbrace the Journey: Lessons from Robin HaakRobin Haak, a solo GP at Robin Capital, joins us in this episode to share his remarkable journey, both as an investor and as a human being. From traversing the globe with an 8kg backpack to buying a coffee shop in Bhutan, Robin’s experiences are far from ordinary and have shaped the way he approaches venture capital today.Robin’s spiritual journey included everything from taking the Trans-Siberian train to Mongolia, trekking the mountains of Peru with shamans, to practicing Muay Thai in Thailand. He’s walked the Camino de Santiago three times and explored spiritual teachings like Zen meditation, Kabbalah, and Tibetan practices. These experiences have profoundly influenced his values and his perspective on investing.Read this in-depth piece on Robin’s travels and his incredible journey in Bhutan. To stay in the loop, sign up for Robin’s newsletter at Robincap.com.The Professional Arc: From Corporate Career to Solo GPRobin began his career in the corporate world at Axel Springer, donning a suit and tie and working 100-hour weeks. He worked in Mergers and Acquisitions, reviewing opportunities such as GetYourGuide, Lieferando, and more. However, since Axel Springer focused on late-stage investments, he couldn’t pursue earlier-stage opportunities. When the chance to build the Axel Springer Plug and Play Accelerator arose, he joined as a co-founder.Afterward, he became a founder himself, building tech companies from scratch, including Jobspotting, which utilized machine learning and AI to reach 3 million users across 12 countries. The AI company Jobspotting became profitable, and Robin, along with his co-founders and team, exited to the San Francisco-based company SmartRecruiters, an Applicant Tracking Suite. Robin became a shareholder and Managing Director, partially relocating to the U.S. and taking on responsibilities in global GTM and Operations, including fundraising for Series D and E with Insight Partners and Silverlake. During his time, SmartRecruiters grew from $4 million to $35 million in ARR and has since become a profitable centaur with $100 million in ARR.Robin Capital: Building the Firm Around ValuesRobin Capital is built on authenticity, collaboration, and a deep understanding of founders' needs. With a €10 million target for Fund I and a focus on B2B SaaS, Robin aims to invest in 35 companies, with a heavy focus on mid-market and enterprise sales. He’s already made 24 investments and is on the fundraising trail for Fund II, all while embracing the solo GP model to maintain a highly personalized and flexible approach.The firm is more than just Robin; it’s backed by a network of 100 operators and four Venture Partners, including two unicorn founders and a manager of €800 billion AUM firm. Robin Capital's focus remains on Europe—50% DACH, 40% broader Europe, and 10% YOLO investments, all in B2B SaaS, where Robin’s expertise can make the most impact.Why Europe Needs Robin CapitalOnly 8% of VCs in Europe are former founders or operators, and even fewer have gone from €20 million ARR to a successful exit. Robin brings a unique perspective to the European VC ecosystem, combining founder experience, operational know-how, and a history of institutional investing. He aspires to be the kind of investor he needed most during his darkest times as a founder—someone who can help not just with funding but also with sanity, support, and a deep understanding of the challenges founders face.Personal Philosophy: Serve, Support, and Grow TogetherRobin didn’t just decide to be a solo GP; he chose to build a venture product uniquely focused on supporting founders. For Robin, investing isn’t about competition; it’s about collaboration and community. He deliberately keeps Robin Capital small, boutique, and personalized to ensure he wakes up every day with a sole purpose: to serve the founders he works with.He often says, "I want to be the person I needed most in my darkest times," and it’s not just a tagline—it’s his driving force. Whether it’s taking a late-night call to discuss a struggling founder’s worries or being a true partner in growth, Robin is committed to walking the walk.The Importance of Community and Lifetime RelationshipsRobin speaks about the value of lifetime relationships, drawing inspiration from mentors like Saeed Amidi at Plug and Play, who taught him that treating everyone like family can lead to lifelong collaboration. Robin’s approach to venture capital goes beyond traditional metrics, focusing on fostering trust, community, and the belief that venture capital should be a long-term, human-centric endeavor.Top Tips from Robin Haak* Embrace the Pain: Whether it’s fighting Muay Thai in Thailand or trekking to Bhutan’s remote monasteries, Robin believes in embracing challenges head-on. For founders, that means facing the hardships of startup life and fundraising, but doing it with resilience.* Build for the Long Term: Venture is about long-term relationships. Whether with LPs, founders, or fellow GPs, Robin emphasizes the importance of thinking in terms of decades, not years.* Stay Authentic: As a solo GP, Robin believes in being unapologetically himself. He wants to build a firm and a product that reflect his values and strengths—not following a cookie-cutter model but one that is deeply rooted in his personal journey and mission.Some things are made for platforms - music, cabs & pizzas. But fund solutions aren’t one of them. Their individual client focus and regulation-first approach is your guarantee for flexible solutions accommodative to a broad range of deal and client specifics. The kicker? Prices that match any of the shelf-products in the market.🤗 Join the EUVC CommunityLooking for niche, high-quality experiences that prioritize depth over breadth? Consider joining our community focused on delivering content tailored to the experienced VC. Here’s what you can look forward to as a member:* Exclusive Access & Discounts: Priority access to masterclasses with leading GPs & LPs, available on a first-come, first-served basis.* On-Demand Content: A platform with sessions you can access anytime, anywhere complete with presentations, templates and other resources.* Interactive AMAs: Engage directly with top GPs and LPs in exclusive small group sessions — entirely free for community members.🧠 Upcoming EUVC masterclassesAdvanced small-group sessions that take you from good to great. Lectured by leading GPs, LPs & Experts.✍🏻 EUVC Masterclass | Marketing & VC Fund NarrativeYour brand is everything. It’s what sets you apart, helps you win the best deals, attract LPs, and ultimately drive your growth. For emerging fund managers, building a credible brand and establishing the right marketing foundations early on are game-changers. Yet, many don’t know where to begin.Your fund’s narrative is what makes the difference between an LP glancing at your deck or deciding they’re ready to write a check. It’s your brand that makes LPs feel confident they’re partnering with someone who knows how to make magic happen.We’re planning a masterclass on building strong marketing foundations with a top industry leader. If enough people show interest, we’ll make...
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Revolutionising Customer Engagement via WhatsApp: A conversation with Tarek Khalil and Mohamed Elbadwihi, co-founders of Rasayel [Startups in Focus - Seedcamp Podcast]
Nov 6, 202400:45:59Tap to summarizeIn the ever-evolving landscape of business communication, platforms like WhatsApp are no longer just messaging apps but have transformed into powerful platforms enabling businesses to connect with their customers in groundbreaking ways.The latest episode of Startups in Focus features Carlos Espinal and Felix Martinez from Seedcamp, dive deep into this topic with Tarek Khalil and Mohamed Elbadwihi, co-founders of Rasayel, exploring how they are leveraging WhatsApp to redefine business communication.WhatsApp isn’t just a simple messaging app anymore. With over 2.7 billion active users exchanging 100 billion messages and 100 million voice calls daily, it’s become an indispensable communications tool. The platform’s ubiquity offers businesses the opportunity to follow where customers naturally communicate, creating seamless touchpoints that bridge personal and professional interactions.Key topics of discussion:* the evolution of WhatsApp as a platform and its impact on business communication, driven by its mass usage and business demand, highlighting the complexities of compliance and global usage variations;* the strategic choice of focusing on WhatsApp due to its global prevalence and trusted infrastructure; * the potential of building a billion-dollar company on platforms like WhatsApp, drawing parallels with Salesforce and Shopify;* how to navigate platform risks.🤗 Join the EUVC CommunityLooking for niche, high-quality experiences that prioritize depth over breadth? Consider joining our community focused on delivering content tailored to the experienced VC. Here’s what you can look forward to as a member:* Exclusive Access & Discounts: Priority access to masterclasses with leading GPs & LPs, available on a first-come, first-served basis.* On-Demand Content: A platform with sessions you can access anytime, anywhere complete with presentations, templates and other resources.* Interactive AMAs: Engage directly with top GPs and LPs in exclusive small group sessions — entirely free for community members.🧠 Upcoming EUVC masterclassesAdvanced small-group sessions that take you from good to great. Lectured by leading GPs, LPs & Experts.✍🏻 EUVC Masterclass | Marketing & VC Fund NarrativeYour brand is everything. It’s what sets you apart, helps you win the best deals, attract LPs, and ultimately drive your growth. For emerging fund managers, building a credible brand and establishing the right marketing foundations early on are game-changers. Yet, many don’t know where to begin.Your fund’s narrative is what makes the difference between an LP glancing at your deck or deciding they’re ready to write a check. It’s your brand that makes LPs feel confident they’re partnering with someone who knows how to make magic happen.We’re planning a masterclass on building strong marketing foundations with a top industry leader. If enough people show interest, we’ll make it happen.✍🏻 EUVC Masterclass | Benchmarketing for GPs & LPsJoin us for an in-depth session on VC Fund Terms & KPIs: Mastering Metrics for Fund Success. This workshop will focus on the key performance indicators (KPIs) that drive VC fund performance and the critical timing for measuring these metrics. You’ll gain insights into what matters most to Limited Partners (LPs) and what General Partners (GPs) should focus on internally for effective fund management.The session will also cover how to set up a comprehensive dashboard, including portfolio tracking, to streamline your reporting and ensure your fund’s success.Special offer: Join the EUVC Community for 25€ per month and get 100€ off while enjoying access to on-demand masterclasses, tools & templates and monthly AMAs with leading GPs, LPs & experts.🏔️ EUVC Nordic Getaway on June 5 - 8, 2025🗓️ The VC Conferences You Can’t MissThere are some events that just have to be on the calendar. Here’s our list, hit us up if you’re going, we’d love to meet!culttech summit | 📆 5-6 November | Vienna, AustriaGoWest | 📆 28 - 30 January 2025 | 🌍 Gothenburg, SwedenGITEX Europe 2025 | 📆 23 - 25 May 2025 | 🌍 Berlin, Germany This is a public episode. If you’d like to discuss this with other subscribers or get access to bonus episodes, visit www.eu.vc/subscribe
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