EUVC Newsletter | 09.09.2024
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 Speedinvest, Heartcore Capital, Oxx Ventures, Carta, and many more legendary European firms.
Click here to submit your own articles, events or projects 📥
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Why & How Early-Stage Startups Should Start Preparing for IPO Comms Now
by Speedinvest. | Originally published on Speedinvest blog.
Why it matters: Even if an IPO seems light-years away, the sooner startups craft their IPO communication strategy, the better they can control the narrative (avoid being grilled by critical journos later!). Having a strong, consistent equity story early ensures smoother sailing when it's time to go public, affecting valuation, market perception, and investor trust. Speedinvest’s advice?
Start day one—media never forgets. Hire comms pros early or risk costly leaks and narrative mishaps!
Median Seed Financing Surpasses Pandemic Levels
by Arik Oslerne and Nicholas Richards | Originially published on Carta
Why it matters
Seed rounds are poppin' off again with a median of £3.3M in H1 '24—over £800k higher than the pandemic's peak. But before you celebrate, deal volumes are down 54%, which means the money’s just going to fewer, juicier deals. Series B rounds also flex a comeback, with a 40% YoY increase and quicker closures (16 months vs 25 months in H2 '23). However, Series A is still dragging its feet at 653 days to clsose, the longest in 4 years. Overall, the cash flow is hitting fewer, higher-quality targets.
The ESOP Playbook
by Stoil Vasilev, Ivaylo Simov, and Svetozar Georgiev at Eleven Ventures. | Originally published on Eleven Ventures.
Why it matters: For early-stage startups, Employee Stock Ownership Plans (ESOPs) are a strategic tool to attract and retain top talent while conserving cash. The playbook emphasizes equity as a high-risk, high-reward incentive but warns against pitfalls like over-dilution and unclear vesting schedules. With 10-15% equity typically allocated to ESOPs, founders can offer long-term incentives without major cash outlays. For VCs, a well-structured ESOP is key to ensuring motivated employees, aligning interests, and safeguarding company growth—even if it means a little dilution.
A-Level playing field? Educational equity in the UK
by Estia Ryan, Principal & Head of Research at Eka Ventures. | Originally published on Eka Ventures Newsletter.
Why it matters: A-Level results aren’t just grades—they’re the gateway to future earnings, health, and opportunities. This piece shows the deep ties between socioeconomic status and academic success, with students from wealthier backgrounds (thanks to 1-1 tutoring and better resources) getting a head start. The kicker? A-Level success can help halve the earnings gap for disadvantaged students who attend top universities, yet the education-health inequity persists. VCs should care—better education equity means more talent and innovation for future investments.
Beyond TAM | The (Untapped) Power of Branding in Construction Tech
by Patric Hellermann, General Partner at Foundamental. | Originally published on Foundamental
Why it matters: Founders, take notes! Brand power can push construction tech valuations beyond Total Addressable Market (TAM). Companies like Sherwin-Williams and Pidilite have cracked this by turning non-recurring products into recurring revenue machines through strong brands and tech-enabled distribution. The kicker? You don’t need SaaS to get SaaS-like multiples (hello 12x valuations!). VCs, don't sleep on this—niche construction categories and cross-border solutions are ripe for brand-led disruption.
Listen to the podcast episode here.
Latitude59, the largest startup and technology event in the Baltic States, expands to Africa
by Marina Bachmann, Press Officer at Latitude59.
Why it matters: Estonia’s Latitude59 is making waves by expanding its startup magic to Kenya, a rising tech hub in Africa. This satellite event is creating a bridge between Estonia’s thriving startup ecosystem and Kenya’s dynamic entrepreneurial scene. The move opens doors for venture-backed companies to tap into Africa’s booming market, fostering cross-border collaboration and innovation. With Kenya's young, driven entrepreneurs and Latitude59's global platform, this expansion promises fresh opportunities for investors and startups alike.
Making decisions under uncertainty - how mathematics can solve real world problems in B2B SaaS
by Gökçe Ceylan, Principal at Oxx.
Why it matters: In the world of B2B SaaS, even complex mathematical theorems can offer powerful tools for founders. Gökçe Ceylan breaks down how Bayesian statistics, decision trees, and game theory provide strategic clarity. Bayesian stats help align gut instincts with data, decision trees guide buyers through choices, and positive-sum games reframe pricing as a win-win. For VCs and founders, these mathematical frameworks turn abstract theory into practical insights, helping navigate sales, product launches, and pricing negotiations with greater confidence and precision.
AirSeq, rapid DNA air sequencing for biological threat detection and monitoring
by Jannic Meyer, Investment Associate at Project A & Jack Wang, Principal at Project A Ventures. | Originally published in European Resilience Newsletter.
Why it matters:
AirSeq brings real-time DNA air sequencing to the frontlines of biosecurity. Initially targeting agricultural pests, this tech has evolved into a powerhouse for detecting airborne pathogens, with potential uses in pandemic preparedness and environmental monitoring. Backed by DARPA and set for dual-use commercialization, AirSeq promises faster, more accurate threat detection in under 90 minutes—crucial for preventing future COVID-19-scale disasters. VCs monitor this disruptive biosurveillance tech for national security and commercial gold.
Innovative Greece - What's the actual level of innovation in the country?
by The Greek Analyst | Originally published on The Greek Analyst.
Why it matters: Greece has quietly evolved into a growing hub of innovation. While still a "moderate innovator" according to the European Innovation Scoreboard, Greece has made a 35% leap in innovation performance since 2016. With R&D expenditures doubling in the last 15 years, and 73% of companies now classified as innovative, the country is catching up to EU counterparts. Investors should keep an eye on the flourishing regional innovation clusters in Athens, Crete, and Thessaloniki. Greece isn’t just surviving—it’s innovating its way to the top.
✍️ Heartcore Insights - Edition #117
by Heartcore Capital | Originally published on Heartcore Insights.
Why it matters:
Tech-driven mergers and acquisitions (M&A) are transforming traditional industries. Strategies like Growth Buyouts (GBOs) and tech-enabled roll-ups are breathing new life into old-school businesses by integrating cutting-edge technology—leading to higher valuations and operational efficiencies. With examples like sennder and Metropolis Technologies, it's clear that merging tech innovation with established business models is the new playbook for growth. For VCs and founders, the future lies in tech-first M&A strategies to dominate traditional sectors and scale profitably.
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