EUVC Newsletter | 22.07.2024
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 Underline Ventures, Venture Friends, Acadian Ventures, 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.
by Michael Sidgmore, Co-founder & Partner at Broadhaven Ventures. | Originally published on Alt Goes Mainstream.
Why it matters: Peter Barris, a titan of venture capital, spills the beans on transforming NEA into a $25B AUM giant. He talks about his iconic investments like Salesforce.com and WebMD, and why VCs need operating chops to win founders' trust.
In a hypercompetitive VC landscape, Barris' insights on specialization and gut instinct offer a masterclass for GPs and LPs aiming to navigate and dominate the VC space. If you think you’re making good decisions, think again – Peter’s story of a 75x return might make you question your game!
Listen to the podcast episode here.
Payroll Part 2: Present and possible futures, a 2024 update.
by Thomas Otter, General Partner at Acadian Ventures. | Originally published on Work in Progress by Thomas Otter.
Why it matters: Payroll’s evolution is a classic s-curve journey, with many providers still stuck in the pre-cloud era. Moving to native cloud tech is not just a trend; it's a necessity for staying competitive and compliant.
Thomas highlights AI's disruptive potential in payroll, making it crucial for vendors to integrate deep AI capabilities or risk obsolescence. For VCs and LPs, the shift to advanced payroll tech signals massive market opportunities and the potential for explosive growth in regions adopting new regulatory standards.
Read the first part of the series here.
The age of Artisanal Software is over
by David Peterson, Partner at Angular Ventures. | Originally published on The Angle newsletter.
Why it matters: As LLMs make coding more accessible, the era of pricey software development is ending. Now, even non-techies can write code, shrinking the willingness-to-pay for basic software. This democratization will deflate software prices, pushing the bar higher for new products.
VCs should note that niche, expert-level, or infrastructure software will retain value. The future lies in platforms enabling LLM-driven code creation and orchestration. This shift heralds monumental changes, echoing historical tech disruptions where expensive innovations became nearly free.
How to get it right with market sizing, and why it matters?
by Michal Bas, Principal at Venture Friends. | Originally published on Venture Friends.
Why it matters: Founders and VCs often clash over market size, but getting it right is crucial. VCs need to see potential for massive returns, meaning startups must target huge markets.
A €100M fund needs a €1B exit potential to justify investment. For founders, precise market sizing using bottom-up approaches shows deep understanding and strategic thinking. This alignment ensures VCs back ventures poised for "venture-scale" success, avoiding the pitfall of misaligned expectations and underwhelming market opportunities.
Driving enterprise adoption through sales and community
by Bogdan Iordache, solo GP at Underline Ventures. | Originally published on Underline Ventures.
Why it matters: Pavel Dolezal's journey with Keboola, from bootstrapping to securing a $32M Series A, showcases the power of founder-led sales and community building. By leveraging hackathons and focusing on real-world problems, Keboola connected with users and discovered new use cases, propelling its growth.
VCs should note the importance of community engagement and design partners in scaling enterprise solutions, as well as the balance between top-down sales strategies and bottom-up adoption. Pavel’s insights highlight the nuanced art of enterprise sales and the critical need for a predictable sales function to ensure long-term success.
Navigating Corporate Venture Capital: Insights and Reflections
by Jeppe Høier, Corporate Venturing expert, former Partner at Maersk Growth, and CFO at Heartcore Capital | Originally published on Linkedin.
Why it matters: Corporate investments in startups are booming, rising from 1 in 10 in 2010 to 1 in 4 in 2024. While CVCs offer immense value, they come with challenges like misaligned interests and cultural clashes. Founders must navigate these dynamics wisely.
The report "Navigating Corporate Venture Capital" sheds light on these trends and the strategic importance of alignment with corporate investment theses. As CVCs become more influential, understanding their motives and operations is crucial for both startups and VCs aiming to harness their potential.
by Matthew Roberts, Founder & Investor of Nodes Ventures and Author of Nodes. | Originally published on Nodes.
Why it matters: Parenting can provide valuable lessons in leadership, from the power of repetition to connecting emotionally before making requests. As startup leaders, applying these insights can transform management styles and improve team dynamics.
On IPOs, the median revenue for US venture-backed software companies has doubled to $189M, reflecting a trend of startups staying private longer to scale up. Lastly, career growth is often hindered by mindsets like "my work will speak for itself." Adopting proactive strategies and sharing your successes can accelerate advancement. These insights are crucial for founders, operators, and investors aiming for high performance and growth.
A recipe for building an impact VC fund thesis 📋
by August Soliv, Author of Impact Supporters | Originally published on Impact Supporters.
Why it matters: Impact VC funds are gaining traction, but building a successful one requires careful planning and strategic choices. August Soliv outlines a comprehensive recipe, from defining your unique edge to filling market gaps and making core investment decisions.
Whether you're a seasoned GP or new to impact investing, this guide provides a blueprint for aligning your fund with market needs and maximizing impact. For GPs, this means understanding geography, sector focus, investment stages, and more. The goal is to stand out, attract LPs, and drive meaningful change while achieving strong returns.
4 things to consider when selling your startup shares in the secondary market
by Rando Rannus, General Partner at Siena Secondary Fund. | Originally published on Siena Secondary Fund.
Why it matters: With exit timelines stretching to 10-15 years, secondary transactions have become a lifeline for early investors seeking liquidity. Rando Rannus provides essential tips for angel investors considering selling their positions. Key takeaways include the timing of the sale, understanding shareholder agreements, identifying potential buyers, and determining the right price.
As secondary transactions become more common, a systematic approach can help investors manage risk and liquidity, ensuring they don't have too many eggs in one basket. This guide helps investors navigate the increasingly lengthy VC landscape.
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.
