EUVC Newsletter | 29.07.2024
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 Foundamental, Industry Ventures, Underline 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.
The Generalist vs. Specialist investor takes on Constru-Tech in 2024
by Patric Hellermann, General Partner at Foundamental. | Originally published on Foundamental
Why it matters: The construction industry, a $10-12 trillion market, is ripe for technological disruption. With only 0.5% of global VC funding, there’s a huge opportunity for investors.
Patric Hellermann (Foundamental) and Enrico Mellis (Lakestar) explore the dynamics of construction tech, highlighting the unique challenges and opportunities. Specialists have deep industry knowledge, while generalists bring broader perspectives and larger funding capacities. Successful startups like Permit Flow and Ediphi exemplify the sector's potential. The future of constru-tech lies in AI, robotics, and fintech integration, making it a hotbed for innovation and investment.
Thinning the herd: ~50% of unicorns should no longer be unicorns – A VC specialist’s viewpoint
by Justine Huang, Principal at Industry Ventures, and Wiley Miller, Analyst at Industry Ventures. | Originally published on Industry Ventures.
Why it matters: The VC world is undergoing a reality check as many "ZIRPicorns" from the 2021/2022 boom are being "dehorned." With proprietary data on 391 Unicorns, Industry Ventures reveals that over one-fourth of these companies are now valued below $1B, effectively becoming "Horses." This recalibration is driven by revised FMV marks and secondary market valuations.
The shift underscores the overvaluation during the bubble years and highlights that only about half of the current Unicorns truly deserve their status based on revenue and growth metrics. Investors should brace for more realistic valuations and potential opportunities in the secondary market.
Impact investing at the buyout stage, interview with Christian Melby (Summa Equity)
by August Soliv, Author of Impact Supporters | Originally published on Impact Supporters.
Why it matters: Summa Equity is leading the charge in impact investing at the buyout stage, focusing on scaling companies that generate positive societal impacts. Christian Melby, Partner and CIO, highlights Summa’s strategy to invest in SMEs solving global challenges.
With €5bn AUM, Summa’s investments span Resource Efficiency, Changing Demographics, and Tech-Enabled Transformation. By prioritizing growth over financial engineering, Summa aims to inspire more funds into impact investing. The firm’s commitment to impact-weighted accounts (IWAs) ensures transparency, making them a trailblazer in the impact PE landscape.
The aerospace engineer who built a sales machine – Prince Ghosh (Factored Quality)
by Bogdan Iordache, solo GP at Underline Ventures. | Originally published on Underline Ventures.
Why it matters: Prince Ghosh, an aerospace engineer turned entrepreneur, founded Factored Quality to revolutionize global supply chain quality control. His journey from NASA engineer to startup founder showcases the power of personalized, hands-on strategies in early-stage sales.
By leveraging networks, direct outreach, and an iterative approach, Factored Quality supports over 100 global brands. Prince's story highlights the importance of vision, customer feedback, and resilience in building a scalable sales machine. His method proves that understanding and evolving with customer needs is key to startup success.
Wielding writing for high-quality thinking, the importance of urgency, and developing domain expertise
by Matthew Roberts, Founder & Investor of Nodes Ventures and Author of Nodes. | Originally published on Nodes.
Why it matters: Matthew Roberts has collected a wonderful pack of articles and resources on how to provide high-quality writing by taking into account urgency, domain expertise, and other important factors.
Starting with better thinking, how to structure your thoughts critically, and the Red Queen Effect, on to operational tactics, tips and tricks on how to get started with Generative AI, some inspiring articles on angel investing, and more.
🎙Alt Goes Mainstream EP. 98 - with iCapital Chairman & CEO Lawrence Calcano
by Michael Sidgmore, Co-founder & Partner at Broadhaven Ventures. | Originally published on Alt Goes Mainstream.
Why it matters: Over the past few months, I’ve been immersed in conversations with General Partners (GPs) and Limited Partners (LPs). It’s clear that we’ve hit a pivotal moment in private markets where both parties are grappling with navigating the space from both a product and technology perspective.
To shed light on these issues, I invited Lawrence Calcano, Chairman & CEO of iCapital, to return to the show. As the head of the largest platform in this arena, iCapital sits at the nexus of much of the activity between GPs and LPs, offering unique insights into the flows and trends within private markets.
Listen to the podcast episode here.
Energy transition at risk: The imperative to innovate in mining
by Dr. Isabella Fandrych, General Partner at Nucleus Capital. | Originally published on Medium.
Why it matters: The shift to green energy means metals and minerals are now crucial, pushing the demand for materials like lithium and cobalt through the roof.
Geopolitical strains make these 'critical' minerals scarce, rising extraction costs as high-quality ore becomes rare. The future green tech boom could hike mineral demand by 80%, creating a $770B market by 2040. Investors, innovators, and policymakers must find ways to secure these resources sustainably and economically, or risk falling behind in the green transition.
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.
