Robert Ditrych

We are pleased to announce the second edition of the TempoCap Exit Indices, updated to include exit activity during Q3 2024. In these indices, we track the largest VC-backed exits of European companies since 2020: all cash acquisitions, cash and shares (or all share) acquisitions, and public listings. Huge congratulations to the new additions to the indices this quarter – exceptional companies that achieved a large exit in a subdued exit environment: Featurespace – a reported $925m acquisition by Visa (all cash, subject to closing). Featurespace is a leading fraud detection and risk management platform through its adaptive behaviour analytics technology, originally from the University of Cambridge. The platform uses machine learning and artificial intelligence to monitor and detect anomalies in customer behaviour, which helps financial institutions identify and prevent fraudulent transactions in real-time. The company is led by a great CEO, Martina King, that we had the pleasure of meeting several times. One for the anti-portfolio! This is the fifth all cash exit in 2024 in our list, compared to only one in 2023 and none in 2022. Could this be the sign of an M&A recovery? We also notice that Visa has acquired 3 of the top seven exits for cash in Europe (while SAP has acquired two). WeTransfer – a reported $760m acquisition by Bending Spoons (we understand this transaction was a combination of cash and shares). WeTransfer is a file-sharing platform that allows users to easily transfer large files online. It provides a simple and user-friendly interface where users can upload files and share them via a download link, which can be sent through email or shared directly. The company has also expanded its range of creative tools, including Paste for presentations and Collect for organising content. Landvault (Infinite Reality Enterprise (Formerly Landvault)) – a reported $450m acquisition by Infinite Reality (all shares). Landvault is an innovative platform specialising in metaverse development and virtual real estate. The platform allows brands and creators to design and deploy immersive 3D environments, virtual events, and digital products, making it easier for companies to engage with users in the metaverse. As ever, we have researched various public sources to ensure that we have the most accurate information possible, but if you've spotted something that needs to be corrected or a company that needs to be added or removed, please let us know at [email protected]. https://lnkd.in/ePQkVx_p

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Forbes recently published an article titled "Nobody Wants to Work." It’s not about Gazprom or Lukoil’s challenges but about a 1-million-person shortage in Russian retail—a gap that’s impossible to fill without losses. AKORT says retail employs about 3 million people, meaning a 25-30% staff shortage. Stores are closing, and pickup points are only open a few hours a day. Strangely, with such a shortage, more closures should be happening. But for now, let's focus on the broader point. Amusingly, the closure of "Krasnoe and Beloe" stores triggered public outrage, while no one protested when Respublika stores didn’t open on time. Are we a nation of readers or drinkers? The article concludes that workers are moving to industry and logistics. That’s true—geopolitical changes and consumer shifts have driven up wages there. But with 17 years in retail leadership, I believe retail itself is also to blame. In the '90s and 2000s, retail focused too much on growth. We were spoiled by a flood of resumes. Now, there’s just 1.1 resumes per position. We got away with too much: long interviews, stress tests, even bizarre challenges like sending candidates far from Moscow with no money or phones to "test their endurance." I was there, developing retail. After interviews, candidates interned for 2-3 months at 30-40% of a full salary. They’d say, "Pass tests faster to get paid more." I've earned degrees, an MBA, and studied at Skolkovo, but my toughest exams were at Euroset under Chichvarkin—where we memorized tariffs and identified which devices fit specific chargers. But the real issue was pay and deductions. Part-time work, changing commissions, and theft deductions created debt cycles. Top employees earned 100-300 thousand rubles, while others survived on 10-12 thousand. Mobile retail theft was rampant—especially phones and prepaid cards. Most staff had debts of 40-50 thousand, and at Gorbushka, it could reach 300-400 thousand. These debts created a system of servitude. As soon as you paid off one debt, another theft happened. I led a department focused on retention mechanisms and tracking systems. We succeeded, and staff shortages didn’t increase—my KPI. In short, retail dug its own grave. Talented people drove the sector down, making it less attractive. At first, retail hired staff who rose to executives in retail, banking, consulting, and even manufacturing. Then came temporary workers. Later, immigrants with limited Russian, slowing operations. Even they left for food delivery jobs, earning 80-90k. Now, retailers raise wages by 20-25% annually, but it’s like jumping onto a burning train while new planes fly by. When I became CEO in 2014, I saw the issues. My team worked hard to create fairer motivation systems, transparent pay, and predictable wage indexing. We succeeded in some areas, but juggling 3-4 balls isn’t easy—sometimes, one drops.

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How To Handle VC Negotiations: What To Expect And How To Respond https://buff.ly/3ZXGJVt Understanding VC Negotiations: What to Anticipate and How to React effectively is crucial in the world of startups. Being prepared for the dynamics of venture capital discussions can significantly impact the outcome of your business endeavors. By familiarizing yourself with common negotiation tactics, such as valuation strategies and equity distribution, you can navigate these interactions with confidence. Remember, VC negotiations are not just about funding; they are about building strategic partnerships that can propel your company to success. Stay informed and proactive to make the most out of these opportunities. #VC #NegotiationTips

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Our mission is clear: to make top-tier services affordable and accessible to the mid-market. Freelancers were often the only viable option in the past, while consultancies came with high costs and other downsides. Our experience shows that a small integrated team of senior operators delivers the best results. A rapidly growing number of repeat customers agrees. Reach out to learn how we can help you accelerate growth affordably yet through a best-in-class delivery model. #operatingpartner #commercialexcellence #privateequity #freelancer #managementconsultant Mitul Ruparelia Pedro Correia Krishna Chaitanya Simon Blackburn

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🌍 Have you ever wondered why European companies often look beyond Europe for growth capital? 💡 Consider this: Europe’s population is 50% larger than the US, with a GDP only about 20% smaller. European VC funds are outperforming US VC funds in terms of net IRR. Yet, there’s a striking contrast: US VCs have over 5x the capital compared to their European counterparts. In Europe, 1 in 5 Series B rounds (€20-50M) and nearly half of all rounds over €250M are led by US investors. 🚀 The question is, how can European VCs bridge this gap? #VentureCapital #Growth #Investment #Europe #Innovation

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Mistral AI an OpenAI Rival in Europe, which has recently started generating revenue, is in talks to raise capital at a $5 Billion valuation. Details about the specific investors Mistral has engaged with for this new funding round are currently unclear. Among its existing investors are Andreessen Horowitz, Lightspeed Venture Partners, and Microsoft the latter having also invested significantly in OpenAI but with a larger capital commitment. It is clear that this is no longer just an industrial battle but a clash to occupy a strategic area at both continental and global levels. Not having proprietary technology in this sector is equivalent to experiencing a gap similar to what we have recently seen in the energy sector. It means depending on exporting countries, where the price for our productivity depends on third parties. As a country, Italy needs to support our national champions like iGenius, companies that have technology and numbers to compete. #AI #LLM #opensource #future #italy #europe #vc

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"“European startups tend to rely much more on public funding sources or traditional bank loans,” Meyers says. “Atomico’s [report] also reports that VC and limited partnership funders all have a decreased appetite for investing in Europe. This suggests that we have more and more small startups in Europe, but they are fighting over a pool of increasingly sceptical investors,” he says." #sifted #startupfunding #startups #vc #venturecapital #funding #publicfunding #investors #investmentstrategies #investmentmanagement #roi #europe #policy #eu

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📊 US Business Migration on the Rise: 🇪🇺 Europe 🇪🇺 Loses Top Startups in 2024 The trend is emerging in 2024: promising European tech start-ups are increasingly relocating their offices to the United States. 🇺🇸 With venture capital investment flows declining in Europe, many startups are finding better opportunities for growth and development in the U.S., a market that offers a more favourable environment and greater access to funding. 🚀 This should be cause for concern! Key Trends Driving This Shift: 👁️ The U.S. continues to attract startups with its robust venture capital ecosystem, advanced technology infrastructure, and supportive legislative and tax incentives. 🚩 Many European countries are struggling to provide long-term funding and growth opportunities, leading to a "brain drain" of talent and innovative companies. ✈️ Startups from Germany 🇩🇪, Spain 🇪🇸, France 🇫🇷, and other parts of Europe are setting up new HQ's in major US tech hubs. Looking Ahead: As the U.S. continues to solidify its status as the global tech innovation hub, more and more European startups are eyeing a move across the pond to scale up and compete. But, let’s not overlook the friendly neighbour to the North 🇨🇦. Canada should be seen as a serious contender for any European venture or founder contemplating a move. With its supportive ecosystem and growing tech landscape, Canada presents a compelling alternative and often excellent alignment, that warrants closer consideration. Europe needs to step it up to stay competitive and attractive for growth. It’s time for us to innovate and elevate the broader tech ecosystem, particularly funding appetites, if we want to keep talent and startups thriving right here. Stay tuned for more updates on how global startups are navigating these changes! #StartupMigration #TechStartups #VentureCapital #Innovation #USMarket #BusinessGrowth #GlobalExpansion #P2 #ScalingUp

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Family Offices Double Down on Pre-IPO Tech Investments • Family office investments in pre-IPO companies on EquityZen platform surged 121% in 2023 • Appeal: Building venture-like portfolios without VC fees, ability to handpick companies • Broader trend of family offices increasing allocation to alternative assets like private markets As private tech valuations become more attractive, family offices are actively investing in promising pre-IPO companies to gain exposure and customize their portfolios. https://lnkd.in/dwaTVHVf

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The last report released by Invest Europe on the state of the European VC industry contains some great data on the role that VC companies are playing in helping the European economy grow (link in the comments). But I do have to (again) take serious issue with the performance data they use and the claim that European VC has outperformed its US peers over the last decade. Invest Europe uses the Cambridge Associates data when analysing the performance of European venture capital. However, the analysis is only as good as the underlying data and, unfortunately, Cambridge's data on European VC fund performance is extremely limited. According to Pitchbook, there were 2,733 VC funds raised in Europe (including the UK) from 2010 to 2019. However, just 88 of these are included in Cambridge's European benchmarks. That equates to just 3.2% of all the funds raised during the period. In some vintage years, there are just three funds in the Cambridge analysis! In a power law asset class such as venture, a 3.2% sample size will produce conclusions that are, at best, meaningless and, at worst, misleading. The most you can honestly say about this data is that the tiny sample of European funds in the Cambridge data has outperformed the slightly larger, but still small (13.3% of all funds raised) sample of US funds. You cannot extrapolate this data to say European VC funds outperform US ones. We have been investing in European venture funds for over 25 years and there are some outstanding VC firms in the region. If investors want to commit to European VCs, they should do it because they believe that specific firm to be one of the best VC managers globally. Allocating to venture capital based on average performance from a highly limited data set is not a winning strategy.

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Here is an interesting debate for the weekend: Is Europe's growth funding gap a myth? Very clearly, most large European growth rounds are only possible because of non-European investors. It certainly matters that the value from these investments does not accrue to European LPs. #growthcapital #growthPE Anne Sraders Amy Lewin Miriam Partington https://lnkd.in/dphV5r49

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📊 According to the latest figures from PitchBook, valuations of early-stage companies stabilized in all sectors in the first half of 2024, with an increase of 17.3% compared to 2023. In particular, the average size of early-stage deals has increased by 43.9% over the same period. Even if these figures indicate a certain recovery, it is still too early to declare a turning point. ⚠️The reality is, the VC market remains filled with uncertainty. Interest rate developments will play a crucial role, but they're not the only factor at play. Geopolitical tensions, such as the conflict in the Middle East and the ongoing war between Ukraine and Russia, along with the upcoming U.S. elections, add layers of unpredictability. So, how should startups navigate these uncertain times? 💪 More IPOs may be on the horizon, but I'm not optimistic. Until the global situation becomes clearer, startups must stay agile and prepared for whatever comes next. 🌍 #VentureCapital #StartupStrategy #FutureEnergyVentures

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European founders looking for fresh capital often chase deep-pocketed US investors — but recent years have seen them increasingly turning their attention to the other side of the globe. Gulf countries, which have plenty of capital lying in sovereign wealth funds and corporate VCs, are becoming attractive investors for startups and scaleups (and VCs) on the continent. In 2023, total investment from Gulf countries in European startups amounted to $3bn, according to Dealroom data — about 5% of total funding raised in the region. That’s almost a 5x jump from 2018, when the same countries invested just $627m in Europe. #GCC #fundraising #investment #deals #EUstartups #VentureCapitalists #MENA #abudhabi #Dubai #familyoffices #sovereignfunds #VCs #FOs #Funds

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☀️ Summer Update: Freshly announced VC funds - €4bn+ since April! ☀️ The VC market is back, great time to build great companies in Europe! 🚀 Due to PitchBook, "The venture capital market (globally) has already bottomed out, with signs that a gradual rebound is underway." (https://lnkd.in/e7G6cQEH) "The venture industry is more active than any time pre-2021. Q2 venture capital investment in Europe is up 14% on Q1, and 12% year on year, and European startups raised $15.6B in Q2 2024." Dealroom.co (https://lnkd.in/egYHgkNg) Here are a bunch of fresh funds: <100m Funds: 💰 Carbon Equity 🇳🇱 - €60m (https://lnkd.in/e6trwJup) 💰 BlackWood 🇩🇰 - €15m (https://lnkd.in/ed__M4Np) 💰 Italian Founders Fund 🇮🇹 - €50m (https://lnkd.in/ehfZpuF8) 💰 Kfund 🇪🇸 - €70m (https://lnkd.in/eWVGi-xE) 💰 Dreamcraft Ventures 🇩🇰 - €66m (https://lnkd.in/eYaRm7WT) 💰 identity.vc I Backing LGBTQ+ Entrepreneurs 🇩🇪 - €15m (https://lnkd.in/eKTSVPXa) 💰 Openseed VC 🇬🇧 - €9m (https://lnkd.in/e_hPphrY) 💰 Pitchdrive | Early-stage VC 🚀 🇳🇱 - €40m (https://lnkd.in/e6r49mMz) 💰 14Peaks Capital 🇨🇭 - €28m (https://lnkd.in/eBSjW-cw) 💰 Elevator Ventures 🇦🇹 - €70m (https://lnkd.in/eahGkeXM) 💰 BOOOM💥🇩🇪 - €17m (https://lnkd.in/eJqWt2MH) >100m Funds: 💰 13books Capital 🇬🇧 - ￡121 (https://lnkd.in/eXhaydg9) 💰 MiddleGame Ventures 🇱🇺 - €150m (https://lnkd.in/eGd69gSx) 💰 Wind 🇫🇷 - €130m (https://lnkd.in/eeaNHZJm) 💰 Vsquared Ventures 🇩🇪 - €214m (https://lnkd.in/eNFj9rGf) 💰 Suma Capital 🇪🇸 - €125m (https://lnkd.in/efk7QJGk) 💰 Creandum 🇸🇪 - €500m (https://lnkd.in/e7ztHAU9) 💰 ETF Partners 🇬🇧 - €285m (https://lnkd.in/eKPdGPkJ) 💰 Norrsken VC 🇸🇪 - €320m (https://lnkd.in/ewxTh7zD) 💰 Alpine Space Ventures 🇩🇪 - €170m (https://lnkd.in/e3SQQwwf) 💰 Accel 🇬🇧 - €600m (https://lnkd.in/eYewqRqj) 💰 imec.xpand 🇧🇪 - €300m (https://lnkd.in/e-S-TyhW) 💰 Lakestar Early+Growth 🇨🇭- €560m (https://lnkd.in/e_SeFicE) 💰 Armira Growth 🇩🇪 - €200m (https://lnkd.in/efVRktgx) 💰 Index Ventures 🇬🇧 - $2.3bn (https://lnkd.in/eVzF5ncE) Forgot one? Feel free to comment! 👇 Link to Dealroom.co's Q2 Report: https://lnkd.in/eAVxFHGx

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"Europe’s glaring lack of growth capital acts as a serious constraint in an increasingly winner-takes-all world." Meh. Good European companies find growth capital. It ultimately doesn't matter that it isn't usually from European investors. Europe being a highly fragmented market of medium, small, and tiny economies is a much bigger issue...and one that's just not going to be fixed anytime soon. It all too often makes for too slow a slog to get to scale. Europe needs to unify its capital markets, standardise its legal and tax systems, strip away friction points for startups, adopt English as its common language and make sure every child becomes fluent in it, etc. It won't though - at least not anytime soon. https://lnkd.in/es-Vp7gF

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So many top VC voices with 0 VC experience :)

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Board of Directors - insights from "The Essays of Warren Buffett" Buffett’s principles for Boards of Directors emphasize the importance of independence, accountability, and a focus on long-term shareholder value: - Long-Term Focus: Boards should act in the long-term interest of shareholders - Board Composition: Boards with mostly outside directors and select members for business savvy, not prominence or diversity (PE insight: CROs on the Board) - Regular Evaluation: Outside directors should meet without the CEO to assess performance True Independence: Directors must have equity in the company to align with shareholders' interests P.S. This is a very insightful book structuring Warren Buffett's shareholder letters by specific categories - here are the top summary takeaways from the rest of the book: Investment Discipline – Maintain patience and discipline, avoiding speculative investments and market timing Business Quality – Seek businesses with a durable competitive advantage Management – High-quality, trustworthy management & look for managers who think like owners Corporate Governance – Transparent communication and fair treatment of all stakeholders Risk Management – Avoid excessive leverage and maintain a margin of safety to minimize risk and preserve capital Fundamentals – Focus on fundamentals rather than market trends Economic Earnings – Focus on economic earnings and free cash flow rather than accounting profits for a true picture of financial health Long-Term Focus – Long-term investments and value creation vs. short-term gains Capital Allocation – Efficient capital allocation is key - reinvest earnings wisely Market Irrationality – Recognize and capitalize on irrationality as "Mr.Market" can be inefficient in the short term #investing #markets #business #stocks #finance #pe #ceo

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Europe unfortunately is a combination of many individual capital markets, some bigger and some smaller, which is keeping the industry's growth modest and never really challenging the US. #vc #funding #startups #privatefunding #privatecapital #investmentstrategies #growth #deeptech #seed #startupcapital

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Atomico has just announced two new funds totalling c. £1bn to invest in the next generation of European founders. Using a few sensible assumptions, what does this imply for European tech in the next decade? 👉 They've convinced Limited Partners (The investors into VCs), including the largest LP in Europe (the EIF, which is funded by the taxpayer) that their portfolio will exit for at least £40 billion. That's pretty wild when the average exit value in Europe is €23 million and the total value of exits in 2023 was €1.4 billion (albeit not a great year for liquidation events 👀) but does suggest that there is a lot of positivity around the future. 🧐 Whilst Atomico's raise deserves celebration, it does beg the question of whether a venture fund that's raised over £3 billion of capital still needs government money... or whether that money is best spent supporting the next generation of emerging managers. Assumptions 1️⃣ We can expect Atomico to hold around 10% at exit of companies 2️⃣ We can assume they raised from a deck promising at least 4x return 3️⃣ No assumptions were made on their share of unicorn companies, but you can multiply £40 billion by X where X is the number share of exits in Europe captured by the fund.

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