EUVC Newsletter | 12.08.2024
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 Cape May Wealth, very early Ventures., PT1, and many more legendary European firms.
Click here to submit your own articles, events or projects 📥
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.
Risks (not) worth taking
by Jan Voss, Managing Director at Cape May Wealth | Originally published on Cape May Wealth Weekly.
Why it matters: Jan Voss provides insight into the delicate dance of active management and angel investing. In public markets, he favors beta-oriented investing due to limited dispersion among managers, while highlighting the potential for outsized returns in private markets through careful manager selection. With angel investing, the pitfalls are many—over 22% of startups end up as complete write-offs, and 30% don't return the initial investment—but Voss suggests that embracing these risks can pay off if you have quality deal flow and time.
Meanwhile, tax and legal risks are best avoided; even small oversights can lead to disastrous outcomes, as evidenced by the startup that failed due to a lack of vesting provisions. Ultimately, the key takeaway is to think about risk more holistically, beyond just numbers.
EPDs: as easy as 1, 2, 3?
by Burhan Pisavadi, Investment Manager at PT1 | Originally published on PT1.
Why it matters: The construction industry is under pressure to reduce carbon emissions, driven by regulations like the UK's Golden Thread and France's RE2020. These rules demand precise tracking of materials' carbon footprints, pushing developers to embrace tools like Life Cycle Assessments (LCAs) and Environmental Product Declarations (EPDs).
Startups like One Click LCA are capitalizing on this need, offering solutions to ease compliance. Yet, inconsistencies in LCA methodologies and data reliability raise concerns about their effectiveness. As regulations tighten, the demand for accurate EPDs and innovative tracking solutions is set to grow, offering opportunities for tech-driven advancements in sustainable construction.
Monthly Alt Pulse EP. 11 - Taking the pulse of private markets
by Michael Sidgmore, Co-founder & Partner at Broadhaven Ventures. | Originally published on Alt Goes Mainstream.
Why it matters: Michael Sidgmore and iCapital’s Dan Vene dive into the shifting landscape of private markets and the launch of iCapital Marketplace. As a leading platform, iCapital is at the forefront of channeling investment flows into the alternatives space, offering insights into market trends and fund manager success.
Private markets offer benefits like diversification and potentially higher returns, but evolving views on liquidity and potential market catalysts are influencing a shift from public to private investments.
Listen to the podcast episode here.
Japan Triggers Crypto Correction?
by Denis Vuckovac, Founder and Managing Partner at very early Ventures.
Why it matters: Hold onto your hats, folks—August 5th, 2024, just went down in history as the day Japan's interest rate hike sent global markets into a frenzy. Bitcoin nosedived 26% before the crash, showcasing its hyper-sensitivity to macroeconomic whispers.
Meanwhile, the Yen skyrocketed by 11%, triggering a global sell-off and a record-breaking 12.4% plunge in Japan's Nikkei 225. This isn't just a Japanese horror story; it's a reminder of our globally intertwined financial web. For VCs and LPs, this is a crystal-clear signal: the crypto world is a real-time barometer for economic jitters, even when the rest of the market is asleep.
What I learned after interviewing 100 early-stage VCs globally
by Ashish Kulkarni, Founder of Founders’ Psyche & Research Assistant at INSEAD. | Originally published on Founders’ Psyche
Why it matters: Ashish Kulkarni's study, involving interviews with 103 early-stage VCs, sheds light on the psychological traits VCs value in founders globally. Notable findings include a 51.5% preference for solo founders and openness to cold emails by 69% of VCs, although they rarely lead to investments
Top traits sought in founders are coachability, domain expertise, resilience, past experiences, and communication skills. Conversely, arrogance, unethical behavior, and unrealistic goals raise red flags. Despite the high volume of pitches, the typical investment rate remains at a meager 1%, highlighting the fierce competition among startups for VC attention.
The secret art of announcing a funding round
by Martin SFP Bryant, Founder of PreSeed Now. | Originally published on PreSeed Now
Why it matters: Navigating the tricky waters of announcing a funding round can make or break your startup's media moment. Martin SFP Bryant, with insights from PR guru Cathy White, highlights the do's and don'ts of launching your funding announcement.
The gist? Know your goals (it's not just about landing on TechCrunch, folks) and be strategic with timing —don't compete with August vacations or major news cycles. Journalists love specifics, so flaunt your funding figures and future plans, but keep your investor's ego in check. Tailor your pitch and back up your claims with data, or face PR limbo. Oh, and remember: you don't get to write the articles or demand changes, so be nice and accurate.
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.
