In this episode of the EUVC podcast, David discusses with Chris Wade, Founding Partner at Isomer Capital the current sentiment in the European venture capital ecosystem.
They touch on topics such as VC sentiment, comparisons to previous years, LP appetite, the potential IPOs of Revolut and Klarna, the rise of AI and semiconductor companies, and the geopolitical and economic uncertainties affecting the industry.
Chris also reflects on the positive and negative developments in 2024 and the importance of humanity prevailing over negative forces.
Watch it here or add it to your episodes on Apple or Spotify 🎧
Tactyc is the leading forecasting and scenario-planning software for venture capital funds, combining portfolio construction, portfolio management, forecasting, and reporting into a unified platform.
Chapters:
01:19 VC Sentiment in 2024
02:36 Comparing 2021 and 2024
04:01 European Venture Capital Landscape
05:00 The Power Law in Venture Capital
11:06 Emerging Managers and AI
13:26 The Importance of Exits
23:58 The Semiconductor Renaissance
27:39 Global Political Climate and Its Impact
30:31 Predictions and Reflections
31:40 Standing by Predictions
32:45 Interest Rates and M&A
34:48 AI's Impact on Venture Capital
38:49 Regulation and Ethics of AI
46:51 Geopolitical Tensions and Defense Tech
57:53 Personal Growth in 2024
01:01:12 The End of Mega Funds Era
✍️ Key Take Aways
VC sentiment in Europe is positive, but it is important to avoid comparing the current market to the anomaly of 2021.
European venture capital is more stable and rational when valuations are reasonable and companies have a chance to survive.
The potential IPOs of Revolut and Klarna could have a positive impact on European venture capital sentiment.
The rise of AI and semiconductor companies is an exciting development in the industry.
Geopolitical and economic uncertainties, as well as wars and hate, are concerning factors that can impact the venture capital ecosystem.
M&A activity is expected to increase as corporates look to acquire startups with new technologies.
The acquiring universe has a significant technology gap that needs to be addressed.
Humanity needs to prevail over negative forces for a positive future. Lowering interest rates could trigger a sea change in M&A activity.
AI is a hot topic in venture capital, with significant investment in generative AI and a 300% increase in capital going into AI in Europe.
Regulation and ethics are important considerations in the development and deployment of AI.
Defense tech, particularly in areas like cybersecurity and sensor technologies, presents significant opportunities for venture capital.
International collaboration in R&D is crucial for technological advancements.
Small funds with upper quartile returns are seen as attractive in the VC industry.
📺 Our virtual events coming up
GP/CVC Roundtable on AI in The Physical World | 📆 Wed, August 14, 2024, 3:00 PM - 4:00 PM (CET) | Register here
AI is flipping industries on their heads, from health to farming. Get the scoop on what’s real and what’s just sci-fi. With a vertically specialized micro VC, a Robotics CVC with major acquisitions behind him and a generalist who just can’t stay away from the space, you’ll be in the know after listening to this conversation 💸
Mastering the sell-side of secondaries | VC Masterclass | 📆 Tue, Sep 3, 2024, 3:00 PM - 4:00 PM (CET) | Register here
This session will delve into the fundamentals of the secondaries market, distinguishing between direct and fund secondaries, and identifying key stakeholders such as employees, founders, LPs, GPs, and intermediaries. Alberto will share his sophisticated buyer process, including his quantitative scorecard approach and detailed due diligence. Learn how to prepare assets for sale, understand valuation techniques, navigate legal and regulatory considerations, and stay ahead of market trends.
Investing and scaling in Portugal and beyond | 📆 Wed, Sep 4, 2024, 3:00 PM - 4:00 PM (CET) | Register here
Delve into key topics such as navigating the Portuguese investment landscape, empowering women-led startups, and scaling businesses beyond borders with global best practices. Learn about pioneering innovation in tech companies and be inspired by real-life success stories of Portuguese scale-ups. Engage directly with industry leaders, gain cutting-edge strategies, and understand how global trends intersect with local opportunities.
GP Roundtable: Leveraging AI in Portfolio Monitoring & Management | 📆 Mon, Sep 9, 2024, 3:00 PM - 4:00 PM (CET) | Register here
This roundtable is a must for GPs looking to get an edge using AI. By tapping into AI-driven analytics and predictive modeling, VCs can unlock hidden trends and streamline their operations. Plus, tackling early risk assessment can save portfolios from tanking 💥. It's about staying ahead in a cutthroat world.
🗓️ The VC Conferences You Can’t Miss
There are some events that just have to be on the calendar. Here’s our list, hit us up if you’re going, we’d love to meet!
Nordic LP Forum & TechBBQ | 📆 11 - 12 September | 🌍 Copenhagen, Denmark
How to Web | | 📆 2-3 October | 🌍 Bucharest, Romania
WVC:E Summit 2024 | | 📆 7-8 October | 🌍 Paris, France
North Star & GITEX Global | 📆 14 - 18 October | 🌍 Dubai, UAE
Invest in Bravery | 📆 21th of October | 🌍 Kyiv, Ukraine
0100 Conference Mediterranean | 📆 28 - 30 October | Milano, Italy
GoWest | 📆 28 - 30 January 2025 | 🌍 Gothenburg, Sweden
GITEX Europe 2025 | 📆 23 - 25 May 2025 | 🌍 Berlin, Germany
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