EUVC Newsletter | 04.11.2024
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 Index Ventures, Speedinvest, Teklas Ventures and many more European firms.
Click here to submit your own articles, events or projects 📥
🔍 Survey | Expanding to US? Share your insights for Destination USA guide
by Index Ventures
Why it matters: Index Ventures would like to include your experiences in the updated edition of our popular book Destination USA: Expanding to the US. Whether you've successfully expanded to the US, are in the midst of doing so, or even if things didn’t go as planned, your experiences are invaluable. By sharing your insights, you’ll be helping other founders as they embark on their own US journey.
If you're expanding to the US from another country, complete this survey by November 5th.
📝 Article | Venture Capital Compensation in Europe - Part 1
by EUVC & Luis Llorens Gonzalez, Principal at Plug and Play Tech Center | Originally published on Learning VC💡
Why it matters: This is the first part of a larger deep dive into European VC compensation, sourced from over 350 respondents across 23 countries, reveals the nuanced salary structures in the industry. Key insights include significant salary growth at each career step, with marked increases from Associate to Principal and Principal to General Partner. While junior roles show relative gender balance, senior levels remain male-heavy, with 80% of GPs being male.
Interestingly, female Heads of Platform often have more experience, skewing salary data in their favor at that level. Carry participation is highlighted as a significant incentive, crucial for senior roles.
📝 Article | A startup helping businesses see around corners
by Martin SFP Bryant, Founder of PreSeed Now. | Originally published on PreSeed Now.
Why it matters: Powdr’s innovative software changes the game for financial modeling by automating complex accountancy processes and allowing models to grow with a business. Traditionally reliant on costly consultants for one-time solutions, companies now gain a tool that evolves with them, preventing financial models from "breaking" as operations shift.
With 25 successful implementations so far, including aiding audits, equity raises, and M&A, Powdr is showing traction in the mid-market segment. This startup positions itself as a scalable, strategic partner for firms keen on long-term financial clarity and agility.
📝 Article | How Nicolas Marchais is Shaping the Future of AI in Tech
by Robin Haak, Founder and Managing Partner at Robin Capital interviewing Nicolas Marchais, co-founder & CEO at Phacet.
Why it matters: Phacet, co-founded by Nicolas Marchais, is redefining AI integration for SMEs by offering tailored, enterprise-grade AI tools aimed at optimizing core business operations. Having secured €4M in funding, Phacet stands out for its bespoke AI boot camps and a holistic platform that integrates with existing data systems, simplifying AI deployment and enhancing productivity.
With an oversubscribed funding round (20x) and backing from tech and finance leaders, this venture underscores a growing market need for practical, scalable AI solutions. Marchais' extensive background, including his growth role at Spendesk, solidifies Phacet's potential to lead AI innovation for mid-market enterprises.
🎙Podcast | The Autumn Budget, Arm vs. Nvidia, Volkswagen’s Decline, and Boeing’s Space Division
by Dan Bowyer and Mads Jensen from SuperSeed covering recent news and movements in the European tech landscape.
Why it matters: One of the recent EUVC podcast episode delves into key European tech and economic shifts. Highlights include the UK's "Invest, Invest, Invest" budget, which, despite boosting NHS and R&D funding, may discourage private investment due to higher taxes. Arm's push into AI chip production could challenge Nvidia but risks destabilizing its partnerships.
Volkswagen's second profit warning reveals deeper struggles in the German auto sector amid rising EV competition from China. Lastly, Boeing’s potential Space spin-off could realign its focus while unlocking new growth for the space unit. These discussions reflect crucial trends for VCs navigating tech, automotive, and aerospace landscapes in Europe.
Listen to the podcast episode here.
✍🏻 EUVC Masterclass | VC Fund Terms & KPIs: Mastering Metrics for Fund Success
Join 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.
📝 Article | Why VCs need to master fund modeling
by David Cruz e Silva, an operator turned angel LP and founder of eu.vc
Why it matters: Fund modeling isn't just a spreadsheet exercise—it's the blueprint for a VC fund’s success. Whether managing a $30M or $250M fund, a solid model helps VCs navigate timing, risks, and strategy. It ensures you're chasing outliers while understanding when to exit. Many funds only return 1-2x because they fail at modeling. For VCs, mastering this skill means balancing efficiency, risk, and scaling to deliver those 70x returns. Smaller funds may require fewer hits, but the model must guide every decision, making this crucial for all, not just partners.
📝 Article | Navigating the AI Era: A Survival Guide for B2B SaaS Founders
by Speedinvest. | Originally published on Speedinvest blog.
Why it matters: As AI expands in the tech landscape, B2B SaaS founders face opportunities and pressures. Speedinvest offers pragmatic advice: stay focused amidst the AI hype, leverage AI to improve specific workflows, and deeply understand user needs, as no funding can buy true product-market fit.
The takeaway? Integrating AI is essential, but founders must strategically absorb the tech into their core offerings and enhance user experience without veering off course. The chaotic AI boom is both a challenge and a golden moment for those who execute smartly and maintain relentless focus.
💬 EUVC Community | Exclusive AMA with KfW Capital’s Christian Stiebner
Curious about how one of Europe’s largest LPs, KfW Capital, navigates the venture scene? Join us on November 27th at 13:00 CET for an exclusive AMA with Christian Stiebner, Senior Investment Manager at KfW Capital.
Christian was the first hire at KfW Capital, setting up their operations to invest €500 million annually into the European VC ecosystem. With experience spanning fintech startups, consulting, and private equity, he’s the perfect person to discuss where the industry is heading and the opportunities that lie ahead.
This is a unique chance to ask your questions directly and gain insights that aren’t available elsewhere. Spots are limited, and they’re exclusive to our community members.
📝 Article | Monks and Managers: To The People Of The Desert - Part 1
Benedikt Langer, General Manager at The Sutton Firm. Originally published on Embracing Emergence.
Why it matters: This reflective piece by Benedikt Langer draws parallels between the lives of monks and venture capital managers, emphasizing the deeper calling and sacrifices made by Emerging Managers (EMs). Both monks and managers leave behind comfort to pursue impactful societal roles, fostering education and resilience.
Benedikt recounts his journey from studying monasticism and building a community of 350 VC Associates to developing a thesis for a Fund of Funds focused on first-time EMs. He argues that successful EMs often share an intrinsic calling, akin to monastic dedication, which drives them to shape the future responsibly—highlighting the LP’s role in identifying this vital quality.
📝 Article | What do we mean when we say AI agent?
by Gil Dibner Partner at Angular Ventures. | Originally published on The Angle newsletter
Why it matters: As "AI agent" becomes a buzzword in tech, Gil Dibner dissects its multiple definitions. From anthropomorphic agents (chatbots) to adaptive, learning systems from AI giants, Gil categorizes four main types: anthropomorphic, functional, adaptive, and composable agents. The distinctions help clarify their diverse applications—from visible customer service bots to unseen, self-adjusting workflow tools.
The article emphasizes how startups are using these agent types innovatively in both applications and infrastructure, highlighting the rapid evolution of the space and underscoring the investment potential in agentic tech. He invites more insights to refine these definitions and better navigate this fast-moving landscape.
Why it matters: This podcast episode unpacks the delicate dynamics between General Partners (GPs) and Limited Partners (LPs) in venture capital. Carmen Alfonso Rico from Cocoa Ventures and Evan Finkel from Integra Global Advisors dive into the psychology, fundraising tactics, and gamesmanship that shape these relationships.
Key points include how GPs can balance transparency with strategic pressure, the nuanced challenges of first versus final closes, and the importance of maintaining trust without crossing ethical boundaries. They emphasize the value of integrity and proactive communication for long-term success. This is a must-listen for anyone navigating the venture ecosystem’s relational intricacies.
Listen to the podcast episode here.
📝 Article | Venture Capital Q3 2024: Preqin Quarterly Update
by Ollie Keyser, Senior Associate at Preqin. | Originally published on Preqin.
Why it matters: Global VC fundraising dropped to $26bn in Q3 2024, down from $30bn in Q2, reflecting tightening capital flow amidst a five-year low in exits. Notably, tech and healthcare exits fell, contributing to this slump. Europe’s deal value plummeted by 27%, signaling investor caution.
However, a silver lining comes with the Fed’s recent 50bps rate cut, potentially boosting valuations and market momentum in Q4. Funds in the market remain robust, with 7,216 active funds targeting $484bn, indicating enduring optimism despite recent performance challenges, particularly for the 2021 vintage struggling at a median 2.3% net IRR. This suggests cautious but hopeful prospects ahead for VCs and LPs alike.
💌 Newsletter | Heartcore Insights - Edition #119
by Heartcore Capital | Originally published on Heartcore Insights.
Why it matters: This edition spotlights Jerry Neuman's “The Illusion of Acceleration,” debunking the myth of exponentially faster tech adoption. Neuman highlights that true game-changing tech, like the landline, requires time to mature and pave the way for quicker adoption of follow-up innovations like cell phones.
The message for startups? High utility and ease of use, not hype, drive sustainable adoption. Also featured is EA's strategic success in rebranding its FIFA game as "EA Sports FC," proving that bold moves can outmaneuver even powerful gatekeepers. This edition is a must-read for VCs aiming to align investment strategies with deep tech adoption insights and bold market plays.
📝 Article | Dollar Reserve Discrepency: Europe & U.S. Divergence. Part 2.
by Owen Reynolds from Teklas Ventures, the VC arm of a family office associated with Teklas. | Originally published on EUVC.
Why it matters: Owen delves into how the U.S. dollar's status as the global reserve currency skews its economy towards high-productivity tech and biotech sectors, similar to "Dutch Disease." This unique economic tilt makes U.S. manufacturing uncompetitive, as the dollar’s inflated value—held extensively in foreign reserves—limits sectors unable to justify premium productivity.
The result? U.S. growth centers around tech giants like Apple and Google. While Europe eyes similar tech-driven momentum, it faces distinct challenges. This entrenched dollar-driven advantage explains why U.S. tech dominance can't easily be replicated and sheds light on the broader implications for global economic structures.
✍🏻 EUVC Masterclass | Marketing & VC Fund Narrative
Your 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.
A standardized pan-european ‘EU Inc' corporate structure is essential for European startups. We have 6 weeks until the new EU commissioners start working on their agenda for the coming years.
Please join the many who have already signed and shared the petition, including founders of Stripe, Alan, DeepL, Remote, Rohlik, Supercell, Wise, and investors from Index Ventures, Atomico, and Sequoia.
