EUVC Newsletter | 15.07.2024
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 World Fund, ESG_VC, AQVC, Norrsken VC, Startup Wise Guys and many more legendary European firms.
Click here to submit your own articles, events or projects 📥
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Research finds net zero not a priority for VCs tackling ESG
by Henry Philipson, Marketing & Comms Director at Beringea | President of ESG_VC | Originally published on ESG_VC.
Why it matters
A recent survey by ESG_VC and Marriott Harrison reveals a shift in VC priorities: 54% of 91 VCs surveyed see 'net zero' as the least important driver for their ESG initiatives. Instead, 48% focus on 'value creation,' followed by regulatory compliance (23%) and LP reporting (15%).
Despite increasing sustainability work, only 29% of VCs have dedicated ESG specialists. However, ESG integration is growing, with 70% including sustainability clauses and 45% diversity clauses in term sheets. This trend highlights a pragmatic approach to ESG, balancing immediate value creation with long-term sustainability goals.
The state of carbon removal
by Craig Douglas, Partner at World Fund and Larissa Skarke, Principal at World Fund | Originally published on World Fund.
Why it matters
Carbon Dioxide Removal (CDR) is crucial to limiting global warming to +1.5°C. Even with zero emissions, we need to remove over 1 GtCO2/year from the atmosphere—equivalent to the mass of all 8 billion humans. The current market, worth €271bn, faces a supply crunch, with only 5-10% of credits removing CO2. High-quality removal credits are in demand, pushed by initiatives like Frontier's $900M purchase commitment and Microsoft's mega purchases.
Key insights
CDR Methods: Afforestation, biochar, soil carbon, enhanced weathering, ocean-based removal, genetic engineering, and direct air capture.
Challenges: High energy consumption, scalability, verification, and permanence.
Opportunities: High-quality credits, innovative verification tech, and marketplaces focusing on traceability and independent quality ratings.
5 reasons robotics is the next multi-decade trend to watch
by Chris Smith, Managing Partner at Playfair. | Originally published on Forbes.
Why it matters
Investors are constantly seeking the next big trend, but distinguishing between hype and long-term opportunity is tricky. Generative AI has recently peaked in hype, with risks of commoditization looming.
Robotics startups, learning from past failures, are now positioned to leverage technological and market shifts to build billion-dollar companies. Investors shifting from 'software-only' approaches are starting to recognize this potential. The term "robot" was coined in 1920, and a century later, the stage is set for their widespread adoption.
Accelerating the sales of a disruptive product
by Bogdan Iordache, solo GP at Underline Ventures. | Originally published on Underline Ventures.
Why it matters
Dominik Mate Kovacs, founder of Colossyan, turned past failures into a success story with a 600% growth in 2023. After the downfall of his first startup, Defudger, he launched Colossyan, an AI-based video generation company, securing $28M in funding by 2024.
Dominik’s hands-on approach to sales, where he believes in founders leading the charge, helped Colossyan secure major clients like Novartis and Paramount. For VCs, this highlights the critical role of founder involvement in early-stage sales and the importance of adapting based on customer feedback and market dynamics.
by Michael Sidgmore, Co-founder & Partner at Broadhaven Ventures. | Originally published on Alt Goes Mainstream.
Why it matters: NewEdge, co-founded by Rob Sechan and Cameron Dawson, has rapidly grown into a significant wealth management platform with over $44B AUM and 300+ financial advisors since its inception in 2020. Combining expertise in wealth management, technology, custody, research, and alternatives, NewEdge represents the evolution of Super RIAs.
Key topics discussed include the importance of alternatives in portfolios, navigating client psyche through market cycles, and maintaining fee discipline. Their insights are crucial for VCs and LPs focusing on the integration of private markets and wealth management, highlighting the transformative potential of sophisticated investment practices in the independent wealth channel.
Listen to the podcast episode here.
How to airdrop in 2024
by Jan Baeriswyl, Founding Partner at very early Ventures. Originally published on very early Ventures.
Why it matters
Airdrop hunting is booming, with influencers and bots leading the charge. Major airdrops like Starknet have sparked debates over distribution fairness. Founders must navigate these waters carefully to avoid pitfalls like adverse selection and speculator sell-offs.
Properly designed airdrops can build strong, committed communities, but missteps lead to PR disasters. For VCs and LPs, understanding these dynamics is key to evaluating new Web3 projects and their growth strategies.
AEC_VC 005: Outcome-as-a-Service
by Patric Hellermann, General Partner at Foundamental. Originally published on the AEC_VC podcast.
Why it matters: Outcome-as-a-Service is transforming the architecture, engineering, construction, and supply chain (AECS) industries. Patric Hellermann highlights how OaaS shifts focus from selling tools to guaranteeing outcomes, aligning provider incentives with customer goals. Unlike traditional SaaS, Outcome-as-a-Service targets larger P&L items, engaging technical front-office purchasers and leveraging human touchpoints for faster adoption.
Successful Outcome-as-a-Service ventures in AECS, like InfraMarket and Metalbook, achieve high margins and early profitability by solving real problems within established procurement processes. This model is poised to build the next generation of legendary AECS firms, making it a game-changer for founders and investors alike.
Listen to the podcast episode here.
7 lessons for startup founders I wish I had known before starting my first company
by Alex Malyshev Co-founder & CEO at SDK.finance via Startup Wise Guys | Originally published on Startup Wise Guys.
Why it matters
Startup life ain't all unicorns and rainbows. Alex Malyshev shares 7 hard-earned lessons from his decade-long journey in FinTech. From choosing the right co-founders (trust is a must!) to nailing your business model and preparing for fierce competition, these insights can save new founders from common pitfalls. For VCs and LPs, understanding these lessons is crucial for spotting resilient startups and guiding founders effectively.
Tools for progress #8
by Matthew Roberts, Founder & Investor of Nodes Ventures and Author of Nodes. | Originally published on Nodes.
Why it matters
Startups are a marathon, not a sprint. Matthew Roberts compiles must-know insights for founders, from effective communication to managing up. Key takeaways include the critical role of grit over talent, the necessity of meaningful growth strategies, and the power of small, autonomous teams. For VCs and LPs, this curated wisdom helps identify resilient startups and support founders in navigating the complex startup ecosystem. Knowledge is power, and this article packs a punch.
What do VC funds need to know about marketing regulations?
by Marius Weber, Founding Partner at AlphaQ VC. | Originally published AQVC newsletter.
Why it matters
Marketing regulations for VC funds is complex! When you're networking at events like SuperVenture, you might be stepping into a legal quagmire without knowing it. This guide by AlphaQ VC and top lawyers deciphers the dos and don'ts. From distinguishing marketing from non-marketing activities to mastering pre-marketing and reverse solicitation, it’s crucial for VCs to stay compliant and avoid hefty fines. For GPs and LPs, this knowledge is essential to protect investments and ensure smooth operations.
Payroll part 1: where the software industry began.
by Thomas Otter, General Partner at Acadian Ventures. | Originally published on Work in Progress by Thomas Otter.
Why it matters
The first business computer, LEO, created in 1951 by Lyons Tea Room, revolutionized payroll processing and birthed enterprise software. This historical insight reminds us how payroll has driven innovation despite remaining relatively stable. Today’s payroll tech faces consolidation and fresh advancements. For VCs and LPs, understanding this history is key to predicting future software trends and spotting groundbreaking startups. Embrace the past to navigate the future!
A guide to finding certainty in tech's unknown future
by Avid Larizadeh Duggan, OBE, is a Senior Managing Director of Teachers’ Venture Growth (TVG). | Originally published on Linkedin.
Why it matters
Avid Larizadeh Duggan reflects on two decades of tech evolution and offers predictions for the next big leap—AI. From commoditization wars to nimble teams, Duggan's insights highlight the importance of adaptable strategies and robust data handling for startups.
The message? Embrace rapid change, focus on capabilities over use cases, and prepare for AI-driven transformation. For VCs and LPs, these foresights are crucial for identifying future-proof investments and guiding startups through the AI revolution.
Looking ahead to sustainable disclosure regulation
by Estia Ryan, Principal & Head of Research at Eka Ventures. | Originally published on Eka Ventures Newsletter.
Why it matters
With the EU’s SFDR and the UK's upcoming SDR, fund reporting on impact and ESG is getting real! The regulations demand detailed sustainability disclosures from investment managers and issuers.
VCs need to understand these timelines and requirements to stay compliant and avoid greenwashing accusations. Early adoption of these frameworks can also enhance transparency and investor trust. For VCs and LPs, grasping these regulatory shifts is crucial for maintaining credibility and competitive edge in a sustainability-driven market.
Dive into Norrsken VC 2023 Impact Report!
by Agate S. Freimane, General Partner at Norrsken VC. | Originally published on Norrsken.
Why it matters
Norrsken VC's 2023 Impact Report reveals that their portfolio companies exceeded 208% of impact targets and avoided 2.6 megatonnes of emissions. With €2.1Bn raised and 2,461 jobs created, the report showcases the tangible social and environmental impacts. VCs and LPs should note the rise of impact investing as it proves beneficial for both financial returns and positive societal outcomes.
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