Cecilia Wang

Do not debtonate? Banks are the main targets here. But private lending, which has blossomed recently and is expected to account for around a third of the leveraged loan market, is also coming under fire. The next wave of refinancing and the potential resurgence of deal activity will mean even closer scrutiny? LPs' appetite for this asset class appears to remain positive 

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The UK Venture Capital Financial Returns 2024 report provides a comprehensive assessment of the performance of UK VC funds since 2002. The report draws together data directly sourced from fund managers, from the British Business Bank’s equity programmes, as well as from commercial data providers PitchBook and Preqin. The report contains the following chapters: 🔹 Chapter 1 provides an overview of UK VC financial returns in comparison to the US, and the rest of Europe (ROE), and breaks this down into different vintage year cohorts. 🔹 Chapter 2 explores global VC fund performance in the life sciences and green technology sectors, including how industry returns have evolved over the past twenty years. 🔹 Chapter 3 assesses the performance of VC funds the Bank has invested in through its Enterprise Capital Funds (ECF) programme and through British Patient Capital (BPC). 🔹 Chapter 4 provides an overview of current VC market conditions, covering fund managers’ perspectives on fundraising, competition, valuations and exit opportunities using the results from our UK fund manager survey.

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I couldn’t be prouder to be a Venture Partner at Isomer Capital (aka the best European FoF - at least for me) as we just announced the launch of our pioneering £100m secondaries fund. This fund is dedicated to acquiring stakes from LPs in various VC funds, tapping into a massive and largely unexplored market. 🌟 Key Highlights: - Focused Investment: Primarily targeting stakes in VC funds, with selective investments in private companies. - Robust Funding: Already over 20% funded, thanks to strong support from Nordic family offices and a German foundation. - Market Potential: With a growing number of private tech companies and a VC liquidity crunch, Europe's VC secondaries market is poised for rapid growth. - Track Record: This isn’t Isomer’s first foray into the secondaries market. As a firm we’ve done several secondaries deals with portfolio companies and VC firms, including early-stage VC Seedcamp (in 2021) and mobility giant Bolt (in 2023). - Expert Team: Welcoming the amazing Omolade (Rachel) A., formerly of Coller Capital, as a principal to lead this initiative. 💡 Investment Strategy: - 65-75% of the fund will buy "LP interest" stakes in VC funds. - 15-25% will be directed towards stakes in companies. - Up to 15% reserved for flexible investment opportunities. 📈 Looking Ahead: We're targeting returns of 2-3x, with significant distributions expected in the next 4-7 years. As one of the few players in this space, we're not just participating in the market—we're driving it forward. Read all about it here: https://lnkd.in/dc7sbC3G #VentureCapital #SecondariesFund #EuropeanVC

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John Cronin is an old acquaintance from my Trading days. He is undoubtedly one of the most accomplished and insightful Banking analysts in Europe. I am really enjoying his new blog.. If you are interested in Banking, Finance or Economics this newsletter is a treat. Check it out in the links below. #FinancialsUnshackled #matlab #finance #quantfinance #dataanalytics

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As I promised in my last LinkedIn post to share more updates re regulation, here's a summary of the Bank of England Dear CEO Letter that was published last week. It outlines the findings and recommendations from a thematic review conducted on the recovery planning capabilities of around 70 non-systemic UK banks and building societies. In a nutshell, the letter emphasises: 1. The importance of a robust recovery plan for banks 2. Guidance for improvement based on the thematic review findings. Fleshing this out.. It underscores the importance of robust recovery planning to ensure financial resilience and support the ongoing functioning of the financial sector. Areas for improvement were identified, particularly in the development of recovery scenarios and the calculation of recovery capacity. Key findings👇 1) Recovery Scenarios: Many firms did not use scenarios of sufficient severity, limiting the effectiveness of testing. Recommendations include ensuring scenarios are severe enough to bring the firm close to its point of non-viability (PONV) and providing analysis on how PONV is defined and calculated. 2) Recovery Capacity: Firms are not effectively calculating or showcasing their recovery capacity, reducing the accuracy and reliability of these calculations. Recommendations include understanding and utilizing the correct methodology for calculating recovery capacity and quantifying it in terms of capital and liquidity ratios. For more (fun) on regulation - make sure you're following!! Murat Abur 😁

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TLDR: EIS should be scrapped as a fund structure but retained for Angel investments by individuals. Alex Chalmers has done all the work which in 10 years I've never got around to doing: why 95% of EIS/VCT funds are bad for our tech ecosystem, rip #startups off, and why as a Founder you should push back against their stupid fees or not take their money. https://lnkd.in/dnq9ZScS

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Post-SPV Investment → Stories & Examples of GP decision making impact I've heard stories from LPs in my syndicate of other GPs selling an SPV (as a secondary transaction) they  participated in to another buyer. The LPs were upset because they felt the position was sold too quickly (< 18 months from the investment) which disappointed some LPs and was not in line with their expectations, who believed these positions would be held until a liquidity event. Time will tell if that was a good or bad decision, but it happens, which is part of the reason it’s important to know and trust the Syndicate managers. I’ve seen scenarios where SPV’s were marked up substantially (10x+) with the GP opting to sell a portion of the shares to return 2x-4x capital to LPs while still keeping the majority of the SPV’s capital in the deal for future upside. Every scenario here is different but I generally think this can be good for LPs to realize some capital at a 2x-5x+ while keeping more capital for additional upside. Others may disagree, as the age old adage in venture has been to let your winners ride, but this may no longer be the case given 1) the speed to markups for companies and 2) speed of disruption. To state the obvious, the status and position of the company in these scenarios is extremely important but generally speaking it can be great to realize a return while keeping 50%+ of the SPV’s capital in the company for future upside. A scary example is when GPs who syndicate deals completely leave the ecosystem. If they are not involved and actively making future decisions on pro-rata and/or pay-to-play rounds etc., then who is? Nobody, and that’s the problem as that syndicate might miss out on crucial post-investment decisions/opportunities. Pay-to-Play rounds can be uniquely tough for syndicates. In these scenarios, you typically need to invest additional capital to keep your ownership in the business and these really only happen when the company is in a less than ideal financial / business situation. While the Company’s situation at the moment may not be great, these rounds can wipe out LP investment if they’re not evaluated/managed. They can occasionally be a compelling investment opportunity if capital can solve the company’s problems and/or there’s large warrants etc to participating investors, among other scenarios. The reality is, you never really know as it’s an investment in a company that desperately needs cash, but if the GP does not evaluate and/or bring this opportunity forward to existing (and new LPs) then the SPV manager is essentially forfeiting their ownership in the business and previous LPs in the SPV lose out on their ownership. That being said, completing pay-to-play rounds as a syndicate has proven to be extremely challenging.  -- Powered by Sydecar and Forge, Last Money In Media is the most actionable venture capital newsletter. Written by Zachary Ginsburg and Alex Pattis, global syndicate leaders with 800+ SPVs closed.

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As IPO markets show signs of heating up after a two-year dry spell, the prospect of an exit is on the radar for a significant number of late-stage scale-ups across Europe. There is a serious amount of work and commitment needed from the People team to prep for going public. This can sometimes be under-appreciated and under-documented compared to the more externally visible work of the finance function. And given the confidential nature of any transaction, it can be hard to get the necessary knowledge from your peers. In conjunction with the fantastic Trecilla Lobo and Techspace, we’ve prepared a comprehensive guide to IPO readiness from the People team perspective. Link below 👇

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Starling Bank's Return-to-Office Mandate is Counterproductive! Starling's new CEO, Raman Bhatia, has mandated that hybrid staff return to the office for at least 10 days each month, leading to resignations and unrest. Why enforce an office policy when the infrastructure cannot support it, especially since employees have proven they can work effectively from home? With only about 900 desks for over 3,200 employees, the lack of space makes this mandate impractical, and employees have raised concerns about desk shortages, parking issues, and the impact on their work-life balance. Numerous studies show the benefits of remote and hybrid work models, which improve employee well-being and productivity. Bhatia's claim that in-person work is essential for creativity does not hold when remote teams have been successful without commuting. Given Starling's ongoing challenges, including a £29 million fine from the Financial Conduct Authority, this outdated work model seems misguided. The bank should prioritise fixing the "shockingly lax" controls that landed them in hot water rather than forcing employees into inadequate office spaces. In a digital world, sticking to a rigid office return policy undermines the innovation and flexibility that the bank once embraced. #WorkplaceCulture #RemoteWork #HybridWork #BusinessStrategy

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Fair to say that a lot of people were left scratching their heads in response to the FCA's decision not to act to address the high cost of data following the release of its Wholesale Data Market Study in February. While many observers have complemented the FCA on the depth and detail of the study, the regulator’s decision not to take any action has left some market participants somewhat puzzled. Read what Mike Carrodus, Mike Powell, Suzanne Lock, Rudolf Siebel and myself have to say on the subject in Mike O'Hara's latest article for TradingTech Insight, from A-Team Group, at https://lnkd.in/eMeyV7eR

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Weird read and a bad take overall. The UK isn’t in the same league as the US economically or as a financial market. Get over it. “I find it hard to believe that the UK would not be better off were DeepMind still an independent company.” 🙄 The false hindsight with which some Brits view DeepMind is just bizarre. UK and European VCs wouldn’t/couldn’t fund it. Hell, most hadn’t heard of it when it was acquired (I was at a dinner with about half a dozen European VCs the night the acquisition was announced and none knew the company). Google buying DeepMind was one of the best things that happened to the UK’s AI ecosystem, and one of the best possible outcomes that DeepMind could have hoped for. Who in Europe would’ve injected the countless billions into it that Google has? Nobody. https://lnkd.in/e7z73S-B #vc #venturecapital #startups #entrepreneurs #entrepreneurship #tech #technology #innovation #deeptech #ai #artificialintelligence #deepmind #google #money #business

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Very proud to see the WVC:E dream team - Anisah Osman Britton MBE & Rachel Drapper - alongside long time friend and rockstar Ekaterina Gianelli on stage at TechBBQ discussing "Fixing the Talent Exodus in VC". Key Takeaways: 💰Impact of Consolidation on Culture and Talent: The ongoing consolidation in the VC industry is reshaping company culture, affecting morale, and influencing talent. 🚀Emerging Managers Aren’t Diversifying VC: Despite the rise of emerging managers, the industry remains largely homogenous, with many new managers still coming from the same traditional, non-diverse backgrounds. ⚠️Perceptions of Diversity as High Risk: Many in the VC industry continue to view diverse hires, investments, and business models as "high risk," "too time-consuming," or "too costly," perpetuating a cycle of exclusion. 🚼 Parental Leave Inequality: Inequities in parental leave policies are disproportionately affecting women in venture, creating additional barriers to progression. But there are funds, investors, LPs and organisations (like us!) that are trying to change this!

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❗ The UK Financial Conduct Authority has this morning published its roadmap for cryptoassets, alongside the latest consumer research. ➡️ The main headlines: Q1/Q2 2025: a discussion paper (i.e. early stage policy thinking) covering trading platforms, intermediation, lending, staking (including ownership and disclosure), and prudential reqs. Q1/Q2 2025: a consultation paper (i.e. will contain draft rules) on stablecoins (backing assets and redemption), custody and prudential reqs. Late 2025: broader conduct and firm standards potentially applicable to all crypto firms. Final rules are targeted to be published in 2026. It is not clear when the regime would go live, but the FCA has indicated there would be a gateway readiness period to support firms through authorisation. 🤝 At Crypto Council for Innovation we look forward to working with policymakers in 2025 as we move closer to finalising a UK wide approach to cryptoassets.

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📣 What to do when you lose Product Market Fit... The third blog in my series of "Losing Product Market Fit" is out! Key questions I tackle: If you've lost PMF, how do you get it back? 1️⃣ STOP 2️⃣ SIMPLIFY 3️⃣ SURVIVE Should you always ignore new opportunities? .... if you decide to explore a new opportunity then.... 1️⃣ BE DELIBERATE 2️⃣ RINGFENCE 3️⃣ START AGAIN But, what if you've exhausted your existing market? .... Unlikely unless you're already passed at least $10m in ARR. I hope you enjoy the blog - I'd love anyone's feedback: https://lnkd.in/dQa-dScf #losingproductmarketfit, #productmarketfit, #venturecapital, #saasfounder

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Balderton's €1.3bn raise for European startups sparks debate: Does a bigger VC fund lead to better outcomes? First, consider: 💲 Larger rounds demand bigger funds, but returns get harder at scale 💲 $100M fund needs $1bn exit at 10% ownership for a single 1x return 💲 Most early-stage VCs target 3x returns, investing in 30+ companies 💲Management fees (typically 2%) grow with fund size Plus, the current landscape: Giants like Balderton, Index, and Accel are raising massive funds, while smaller firms stick to sub-$200M and focus on early-stage startups. Many VCs have maintained their previous fund sizes, while others are downsizing or struggling to raise new funds (or even returning un-invested capital to investors, as CRV recently announced they will do). Thus, weigh up the trade-offs: Larger funds (≥$500M): 📈 More firepower, full-cycle support 📉 Risk: Pressure to deploy capital, potentially lower returns Smaller funds (≤$200M): 🔍Agility, focused support, higher potential multiples ❌ Limited late-stage participation The future of European VC may not be one-size-fits-all. As the ecosystem matures, perhaps there's room for both Davids and Goliaths. What's your take? Would you bet on a nimble $150M fund or the muscle of a €1B+ vehicle? Source: Sifted #EuropeanVC #FundStrategy #StartupInvesting PS 🔔 Follow me for strategies and resources for startups and VCs! There's a better, streamlined way to raise capital: 💸https://foundersuite.com/ for startups 💸https://fundingstack.com/ for VCs and investors

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It's the "VC's are risk adverse, biased, stupid & lazy" episode of Transparent VC Podcast (ep in comms). Discussions included: - Some of Simon Thomsen's best ever work covering the recent Budget announcement, and that the Startup Daily awards are now open. A humble request for a new category of Worst Podcast please. - An article by Hugo Mathers of Capital Brief on Build Club, a new accelerator launched by Annie Liao 🇦🇺. We talk about our views on the good, and not so good of accelerators. Times, they are a changin'. - 😱 Rayn 🍇 Ong wanting to talk to the managers of people saying Australian VC is too conservative, and a post by Claire Bristow on a similar theme. - An article by Kate Burgess of Capital Brief interviewing Camille Goldstone-Henry of Xylo Systems overcoming challenges and biases from VCs. We provide some thoughts and different perspectives on some aspects. - A post by Jason M. Lemkin re small signals when a deal is a "maybe", and criticism by David Charlot, PhD, MSEng and defense by Stéphane Nasser. And the usual collection of random charts! Episode in the comms. Aaron Birkby Jack Butler

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Just released UK GDP data for April revealed stable output, defying expectations of a decline. Despite notable drops in industrial production and construction, services output surprisingly increased by 0.2%. This hints at a potentially slower Q2 growth compared to Q1, yet it might surpass the Bank of England's forecasted 0.2% quarterly rise. In the US, attention is focused on the upcoming May CPI report and the Federal Reserve's monetary policy update. Forecasts suggest a deceleration of the headline CPI inflation rate to 0.2% from April's 0.3%, mainly due to lower gasoline prices. The year-on-year rate is anticipated to hold steady at 3.4%, with the 'core' rate likely to remain at 0.3% monthly and slightly dip to 3.5% annually. However, concerns persist regarding high inflation and potential interest rate adjustments. Given recent data, an immediate interest rate cut seems unlikely, with the Fed Funds Target Range expected to remain at 5.25%-5.50%. The Federal Reserve is likely to underline their confidence in inflation returning to target, despite unexpected persistence this year. While 2024 may see interest rate cuts, the statement may be vague on timing. Insights into the Fed's intentions may arise from policymakers' latest forecast updates in the 'dot plot'. The previous majority outlook of three rate cuts for the year may shift to at most two, possibly only one.

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