EUVC Newsletter | 02.09.2024
Welcome to our community-sourced newsletter featuring the latest submissions to the eu.vc insights platform — the platform that collects & amplifies the best long-form pieces from the EUVC community.
This week, we feature submissions from Northzone, Eka Ventures, Common Magic, Eleven Ventures, and many more legendary European firms.
Click here to submit your own articles, events or projects 📥
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How to build a high-functioning board as a founder: culture is what matters
by Tom McGinn, General Counsel of Northzone.
Why it matters: Building an effective board is crucial for startup success, yet many founders and investors find board meetings draining rather than energizing. This piece offers valuable insights on how founders can cultivate a board culture that drives strategic direction and creates engaged, supportive stakeholders.
For VCs and LPs, understanding how to contribute to and evaluate board effectiveness is key to protecting and growing their investments. With 45% of European boards lacking female representation, the article's call for diversity underscores the need for change in board composition practices.
AI’s #1 use case? Fraud
by Richard Anton, Co-Founder and General Partner of Oxx.
Why it matters: AI's rapid integration into cybercrime is escalating the stakes for both criminals and cybersecurity companies. With 560,000 attacks per day in the UK and global cybercrime costs projected to hit $13.82 trillion by 2028, the race is on for cybersecurity firms to stay ahead.
This surge opens massive opportunities for tech companies offering AI-powered solutions, like Darktrace and SEON, to thrive. For investors, the escalating demand for advanced cybersecurity creates a lucrative landscape—if they can spot the next big innovation in this high-stakes game.
Joining forces with biology to close the critical mineral gap
by Dr. Isabella Fandrych, General Partner at Nucleus Capital. | Originally published on Medium.
Why it matters: The global energy transition hinges on a steady supply of critical minerals like lithium and copper, yet traditional extraction methods are struggling to keep up. Enter bio-mining—a revolutionary approach leveraging biology to unlock these vital resources more efficiently and sustainably.
With AI-driven innovations in direct lithium extraction and bio-leaching, startups are poised to bridge the supply gap, transforming mining from an environmental burden to a keystone of decarbonization. For VCs, this signals a massive opportunity to back the next wave of sustainable tech in mining.
Leo Capital breaks new ground in Europe with the first close of its Nordic fund
by Henry Goodwin, Partner at Leo Capital.
Why it matters: Leo Capital’s €25M Nordic Fund marks the firm’s first European venture, spotlighting Finland and the Nordics as hotbeds for B2B innovation. With a proven playbook of leveraging Indian tech talent for US expansion, Leo Capital is poised to supercharge Nordic startups in their global ambitions.
In a challenging funding environment, their capital-efficient strategies could help Nordic founders follow in the footsteps of giants like Nokia and Spotify. For VCs, this move highlights the growing appeal of the Nordics as a strategic hub for B2B SaaS investments.
The founder-investor relationship – how to make it work
by Roberta Tihomirova, Head of Marketing at Eleven Ventures. | Originally published on Eleven Ventures.
Why it matters: The founder-investor relationship is a critical factor in startup success, yet it's often fraught with tension and misunderstandings. For VCs and LPs, understanding how to support founders effectively can lead to better investment outcomes and stronger reputations in the startup ecosystem.
For founders, learning to leverage their investors' expertise and networks while maintaining control of their vision is crucial for scaling their businesses. This piece offers practical advice for both parties to align their values, communicate openly, and resolve conflicts constructively, ultimately contributing to a more collaborative and successful startup environment.
Memes and mimeticism; reflections on venture capital one year in
by Sarah Drinkwater, solo GP at Common Magic. | Originally published on Medium.
Why it matters: Sarah’s reflections highlight a critical tension in venture capital: the need to discover truly innovative ideas while ensuring investee companies remain attractive for follow-on funding.
Her observations on mimeticism in VC underscore the importance of independent thought in an increasingly conformist industry. For VCs and LPs, these insights are valuable in crafting distinctive fund strategies that balance innovation with market expectations.
Too hot to handle? Heat’s impact on our health and (Olympic) performance
by Estia Ryan, Principal & Head of Research at Eka Ventures. | Originally published on Eka Ventures Newsletter.
Why it matters: As global temperatures rise, the health and performance impacts of extreme heat are becoming increasingly significant. The 2024 Paris Olympics highlighted how even elite athletes are not immune, with temperatures now 1°C hotter than in 1924.
Rising heat events, like the deadly "35°C + 75% humidity" scenario, could see annual occurrences double, disproportionately affecting low-income and ethnic groups. For VCs, the message is clear: the need for innovation in climate adaptation is not just urgent but inevitable.
The big comparison: European versus Silicon Valley on the Investment and Funding Landscape
by Elsa Hyland, angel investor. | Originally published on deb.
Why it matters: The gap between Silicon Valley and the European startup ecosystem is glaring, especially in risk tolerance, funding scale, and commercialization speed. Silicon Valley's bold "fail fast" mentality and massive funding rounds contrast sharply with Europe's more cautious approach.
Europe is seeing growth, particularly in climate tech, but needs to adopt some of Silicon Valley's strategies—like supportive board structures and aggressive knowledge sharing—to remain competitive on the global stage. The message for European VCs: embrace higher risk and innovation to stay in the game.
Grit vs Stubbornness in AECS Startups: A Fine Line
by Patric Hellermann, General Partner at Foundamental. | Originally published on Foundamental
Why it matters: In AECS (Architecture, Engineering, Construction, and Sustainability) ventures, the line between grit and stubbornness is razor-thin. Founders often struggle to differentiate between persistence and being stuck in a failing strategy, especially in a niche-heavy industry like AECS.
The challenge? Navigating this complexity without falling into the trap of endlessly pivoting without real customer validation. For VCs, it's crucial to align with founders on learning from actual customer actions—not just their words. In AECS, knowing when to adapt or quit can make or break a venture.
Listen to the podcast episode here.
by Michael Sidgmore, Co-founder & Partner at Broadhaven Ventures. | Originally published on Alt Goes Mainstream.
Why it matters: Alternatives are increasingly seen as the “fast river” for wealth advisors looking to differentiate and attract clients. Gregg Sommer of Mercer and Neil Blundell of CAIS dive into how private markets can reshape wealth management portfolios.
They highlight the critical role of due diligence, the rise of evergreen funds, and the importance of customizing alternative investments. As advisors look to navigate generational wealth transfers and evolving market trends, alternatives offer a powerful tool to enhance portfolio diversification and resilience.
Listen to the podcast episode here.
Choose the bank made for the innovation economy.
HSBC Innovation Banking take a relationship-first approach, bringing passion, dedication & unparalleled international connections to enhance your prospects for success.
