Philippe Rivard

Taavet Hinrikus and I made the Financial Times Due Diligence email. https://lnkd.in/ez2AuGQx One 'unintended consequence' is that if there is a 45% tax on carry and CGT (raising £40m per year, remember) it for all intents and purposes closes the door on new VCs in the UK. Especially started by teams from non-traditional backgrounds. To meet the GP commit, you need to be already part of the 'wealthy' as you cannot rely on the value you create - nearly half of it will disappear - to fund it. We have both had extremely successful startups which are few and far between. The smaller number of new VCs will therefore more likely increasingly be for people who have inherited the capital or can draw it from their already rich family. Probably not want they have in mind with this policy.

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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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VC world can be cruel and unforgiving. With LPs more and more pushing for distribution and liquidity, fund managers in the mid-tenure of their fund with zero DPI and TVPI around 1.0 would have much more difficulty to raise new fund. The ability to fundraise is one of the crucial indications and validation of the job for VCs. Key highlights from the article below: Thirteen percent of venture General Partners (GPs) no longer plan to raise another fund due to LP pullback. This rate has doubled since H1 2023 when only 6% of GPs had no plans for another fund. Nearly 44% of venture firms surveyed in mid-2023 had previously postponed their fundraising plans due to concerns about overexposure to the asset class. Many emerging managers entered venture capital in 2019 or 2020 when the LP market supported more funds. However, slow exits in the first half of 2024 have led to challenges in raising second funds without significant cash distributions to LPs. Some venture GPs are now actively participating in the secondaries market to demonstrate returns. Despite the challenges, GPs who secured fresh capital remain optimistic. They expect the 2023 and 2024 vintages to be the strongest return years since 2019. 🚀📈 #VC #VentureCapital #Fundraising #LPs #EmergingManagers #TechInvestment #MarketTrends #CountdownCapital #IndustryInsights #JetVentures #JetInvestment‍‍‍‍‍‍

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"Funding Collapse sends investment in start-ups to six year low" The Times today covering the shocking stats that VenturePath uncovered, with our partner Beauhurst. Great quotes from supporters Michael Moore CEO, BVCA and Julian David CEO, techUK. * UK VC funding at Series A is -44% from last year, and worsening * Q3 24 is down a staggering 57% from Q2, itself down from Q1 * 9 in 10 seed funded startups cannot access Series A VC funding, the next 'rung on the funding ladder' * Just 32 future scaleup companies across the whole of the UK were able to access their first VC funding round in Q3...a 6 year low * Half a billion less capital is going in to UK scaleups at Series A, than just 2 years ago! As the UK scaleup funding gap widens, we are losing ground against other countries, at both startup stage (a position the UK worked hard to achieve, since 2011), and for scaleup support. OECD data: 13th in the world for scaleup support, and that's before Series A funding access dried up. I get that its confusing. Another report (BBB, Nations & Regions) released this week spoke of positive trends in private investment, stating "The data for Q2 2024 shows that investment value has continued to grow". Great, I love to see optimistic data. But under analysis that bundles venture with private equity (later stage), where a few megadeals skew the numbers. Otherwise the exact opposite is true. Our independent research here, for the UK ScaleUp Investment Mission, is laser beam focussed on Series A. The funding round where companies move from the c.1m startups launched each year, through the 2,179 that access seed funding, into the rarefied category of being recognised as future scaleups, attracting Series A funding (£2-10m). The UK venture landscape is currently funding just 248 pa of these companies, and declining. We've been sharing this urgent call for support with the new Government since the day after the election. I've personally met with several Ministers, and spoke to all the relevant Government departments. I will shamelessly repeat loudly what is at stake. UK scaleup funding at Series A has nearly halved in a year, and continues to decline steeply, more than halving in the last quarter. VenturePath developed The UK ScaleUp Investment Mission to convene the scaleup support ecosystem and £7bn of funders to help address this problem, to improve nationwide access to VC investment, and create more venture-backed successes. We have clear support, clear recommendations to reverse this decline in UK scaleup investment, and have made a clear ask of Government for participation in this, to ensure immediate action is taken to create the conditions for success for UK scaleups, ensuring the focus on growth isn't undermined by lack of capital, or equitable access to it. Government decision makers, we'd love your interest, to progress to action. HM Treasury: Rt Hon Rachel Reeves Spencer Livermore James Murray & CC Poppy Gustafsson (welcome to the debate).

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Private funds revolve around liquidity events so that they can pay out investors and collect carried interest, so how do GP's actually facilitate those events? You know all of the traditional ways like portfolio companies acquisitions and IPO's, but are you aware of the other not so talked about ways? How about IPO the whole fund? Yes, in most cases you can take the fund public. Sell the fund. Let's say the fund is in year 5 of 10 and is at a 3X. Someone may see the future potential and could buy-out the whole fund at say a 2.85X in cash. Fund merger. Another fund that may have a similar niche wants to join forces so they merge the two into 1. An easier way to get more fees, AUM and much easier than starting over from scratch. Investors and invested GP's get equity in the new fund which may come with perks.

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Great interview with one of the best VCs out there. Lot's of good stuff in this article. One point worth highlighting on the eternal debate whether there is enough growth capital in Europe: great companies will always manage to raise money, no matter where they are based.

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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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An underappreciated factor in UK VC right now, is the number of firms *only* investing in portfolio companies. ** The effect of funds, particularly the larger/later-stage funds, concentrating their funds on portfolio companies has a dramatic effect on the market. Because the new deals to later-stage funds, are likely the portfolio companies of earlier stage funds. And if the former falls/reduces/stops; the earlier stage funds have to devote more capital to their portfolio than was originally modelled. And it gums up the entire system. And it’s currently affecting all levels of funding, from growth down to seed stage funds. #founders #vcfunding #startups ** I’ve used ‘only’ as a catch all for 100% allocation to portfolio (as some funds are) through to significantly increased levels of portfolio funding (as the majority are).

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What should investors expect from the VC industry over the next 3-5 years when it comes to exits and performance? Rick Zullo, on X, has argued that there will be a greater divergence between VC funds, with the most successful ones producing even stronger performance, while the median fund return will reduce. I would agree with this as we are likely to see fewer, but typically larger, exits. It will become more important than ever to have meaningful exposure to the small number of winners that drive VC performance. We saw this divergence in VC fund performance very clearly after the 2008/09 financial crisis. As you can see from the chart below, it was the top-tier, established managers who make up our Core Manager cohort that massively outperformed as the market recovered. We have identified three key factors that we believe materially contributed to this outperformance: 1. Quality of portfolio companies. We know that VC is a power law asset class, but the distribution of returns is even more concentrated after a correction. The number of successful exits falls significantly and the small number of VCs able to back these companies will materially outperform. We usually see the best companies actually improve their competitive positioning during a correction. They become more capital efficient, increase market share and benefit from many of their competitors being unable to survive. 2. Availability of capital. In a downturn, even the very best companies will usually need to raise additional capital. As a VC, if you don't have the capital to support these companies and protect your ownership, then you are in trouble. The best VCs can still raise new funds even in the worst of markets and will have the capital to ensure their best companies survive. 3. Willingness to continue to invest during the most challenging periods. The best managers have the experience of managing through prior downturns as well as the confidence (and the capital) to take advantage of the opportunities that a correction creates. This means that they can double down on their best companies, often at attractive valuations, and also access market leaders they may have missed in prior rounds. We have seen a major flight to quality from LPs to date in 2024, with a small number of VCs responsible for the vast majority of capital raised. Unfortunately, this is shutting the stable door after the horse has bolted. Venture capital is a cyclical asset class - corrections are a feature, not a bug. This means that LPs need to construct a portfolio that not only captures the upside as the market rises, but is also resilient during a downturn.

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🌟 Interesting yet unsurprising findings from the latest VC performance report: 📈 Established European venture capital funds (fund 5+) are delivering 2x the IRR of New (fund 1-2) and Developing (3-4) funds. 🌍 European VC funds consistently outperform their US counterparts, underscoring Europe's strength in the global investment landscape. Read the article at sifted https://lnkd.in/eZYF4THT

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The fundraising market for VC funds is on track for its worst year since 2015. The shortage of IPOs has meant a lack of liquidity to LPs, causing less appetite for new fund commitments. The last two years have felt a bit like a "venture stalemate." Will it change in 2025? My latest article in Forbes includes predictions from leading Limited Partners (LPs) across the US and Europe, including institutions, fund of funds and family offices. Read below (link in comments) to see what they're expecting for venture capital in the year ahead. 🔮 Aakar Vachhani Fairview Capital Hana Yang Allocate Adam Marchick Akkadian Ventures Anu Adebajo Daryn Dodson Dominic Maier AVP Layne Johnson Screendoor Julie Pulda, CFA Ballentine Partners, LLC Albert Azout Level Ventures Charlotte Palmer Mark Schmitz equation January Ventures

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🚀 Unlock the Potential of AI in Deal Sourcing and Screening! 🚀 The 2024 Investment Benchmark Report reveals that European VC firms face fluctuating engagement and deal flow. Top firms leverage data to adapt and thrive, showing a notable 86% uptick in Q4 2023 deals. 🌟 Key Takeaways: Data-Driven Decisions: Firms using multiple data sources outperform peers. Enhanced Network Growth: Proactive outreach leads to more deals. Tech Adoption: AI and automation streamline operations and improve efficiency. Empower your VC strategies with AI for better sourcing, screening, and success! 👉 Try Yuno AI and become an early beta tester. We're seeking feedback to create the best tool for identifying investment opportunities in the private market industry. Read the full report here - https://lnkd.in/ddgiyWxH #VentureCapital #AI #DealSourcing #Investment #TechInnovation

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🚨 EGYM attracts nearly $200 million in primary funding from L Catterton and Meritech at a valuation of over $1 billion 🚨 I'm excited to announce that EGYM / EGYM | DACH / EGYM Wellpass has recently secured nearly $200 million in primary funding from L Catterton and Meritech Capital, valuing the company at over $1 billion. The fundraise last year with Affinity Partners marked a significant achievement for EGYM: we were profitable, debt-free, and maintained a big chunk of the fundraise in the bank, all while experiencing rapid growth. That meant that we no longer relied on investor funds for survival; instead, we could take the time to focus on building relationships with the best possible investors to support EGYM's mission. Phew 😅 that was quite a relief as a founder, and the next round ended up happening much faster than expected. We are a fitness technology company: In my research, I identified L Catterton as the ideal partner for EGYM on the fitness and health side, given that they are the world's largest fitness investor. For the technology piece, Meritech Capital stood out as the best fit, given its deep understanding of SaaS and its success stories with leading companies like Facebook and Salesforce. Therefore, I started reaching out to both firms with the intent of building a long-term relationship, which has turned into a round of funding. I had the pleasure of meeting Marc Magliacano, a Managing Partner in the L Catterton Flagship Fund, and was impressed by his extensive experience in fitness investing. His deep industry knowledge will be invaluable as he joins our board. On the Meritech side, I was equally impressed by Paul Madera, a co-founder of the firm. His sharp questions and focus on the important elements of our business convinced me that he is the right fit for EGYM. The EGYM team has earned the trust of what I consider to be the best possible investor partners for our mission to get to where we are today, and we are much more capitalized than we were planning. However, this trust now comes with even greater responsibility. Our mission to build the leading global platform at the intersection of fitness and health is not just a business goal but a commitment to driving sustainability into the world's largest market—healthcare. We are 120% dedicated to making it happen and are grateful to our existing investors for their continued support. 👋🏻 Welcome aboard, Marc and Paul. 🚀 Let's go, EGYM team!

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Soooo pretty much how French VC has always been. VC firms suing each other. LPs firing GPs. LPs taking funds back. VCs suing entrepreneurs. It's always been a dramatic scene. 🇫🇷 🐓🍷🥖 https://lnkd.in/eK8JbgDA #vc #venrurecapital #startups #entrepreneurs #entrepreneurship #tech #technology #innovation #money #business

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Recently, I had the chance to spearhead fundraise for an exciting deal in similar space (early stage ; GenAI Unicorn) to a few Large VCs / Institutions and the most commonly asked question was why are the AI / LLM startups valued so high. I guess, it can be attributed to a few things - 💡 Future Promise : I am a firm believer in the potential of AI and I can bet the house that it will disrupt almost every industry, from healthcare to finance to transportation to education. As we can't imagine our lives without our phones and internet, the same way, AI will add a layer where we are constantly engaged with it. Beyond a doubt, every industry and profession will undergo seismic changes, thanks to the disruption that AI will unleash. 🤠 Scarcity of Talent : If Hedge Funds think there is a talent WAR out there, they need to smell coffee. Elon Musk mentioned recently in a post that the war for AI Engineers is "craziest talent war I've ever seen". Maybe in times to come, knowhow on AI technologies, the nuts and bolts will become common place and then the talent war will have a new theatre. But today, its demand and supply dynamics at play, where clearly demand is FAR outstripping supply. 🚀 MOAT : Companies developing novel AI algorithms or proprietary techniques / Applications will hold valuable intellectual property. This IP can be protected through patents and other means, creating a competitive advantage and increasing the company's valuation. Add to it the network effect, where the value of their products or services increases as more users or data sources are added to their platform. This creates a virtuous cycle of growth and further increasing the company's valuation. 🕴 Strategic Importance : This morning I was chatting with Llama3 on my WhatsApp regarding weather in Singapore! No day passes by where there is not a new development or a novel use case around AI. Differentiation in the coming times will be in no small part on an enterprise's ability to effectively use AI. 💰 Investor Interest : Well, if you are a VC/ PE investor can you really afford to stay on the sidelines? Take a look at this FT article, "Mistral is in talks to raise €500mn in a deal that would more than double its valuation to at least €5bn". Note, just four months back it raised about €400mn in a round that valued the start-up at €2bn. FOMO? Not suggesting that all valuations are justifiable and that one wouldn't come across a few lemons. The idea was just to expound on the question of why valuations are going through stratosphere. Can there be a chance that valuations become more sane? Maybe. Can there be a chance that we go back to a world without Chat GPTs or Copilot or Claude? Surely, you must be joking! 😜 Nilesh Jasani #AI #Startup #VC #PE #Investment #Valuation #LLM #Unicorn

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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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✨ Breaking: Core Fund V and Opportunity Fund V Announces New Fund.- Core Fund V and Opportunity Fund V VC Airtree has launched a new venture capital investment fund, targeting $650 million. It consists of Core Fund V for early-stage startups at the Seed stage and Opportunity Fund V for backing Airtree's portfolio companies in later-stage, scale-up phases. They plan to invest in a dozen emerging startups annually. https://www.airtree.vc/ Please share to let other #Founders know For the ❤️ of Startups #Fusion42 #Startups#Venturecapital

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Yesterday I had the pleasure of appearing on CNBC to talk about the state of tech in the UK and Europe, touching on the state of IPOs vs PE acquisitions, sectors to watch and where the opportunity lies. Thanks for a great discussion Arabile Gumede! Some thoughts from the interview: Signs of Success: The acquisition of UK tech companies by prestigious private equity firms like Thoma Bravo is a testament to the strength and success of the UK tech sector. It's a clear indicator that UK companies are building substantial value and attracting significant international interest. Vibrant Ecosystem: Despite challenges, the UK and Europe boast a vibrant tech ecosystem, particularly in AI, cybersecurity, and fintech. The market has now stabilised post-pandemic, offering a fertile ground for emerging companies to thrive. Opportunity for scale-up investment: Looking at investment into SaaS companies, Europe is on par with the US in the early stages. It is at the scale-up stage that a divide appears – support and more investment into Europe and the UK’s growth companies will further strengthen the region’s tech scene. Watch a clip from CNBC here: https://lnkd.in/d7J8_FNP #Oxx #UKtech #VC #growth

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🎉 Exciting time with the incredible team at Isomer Capital 🎉 Super thrilled about the news we shared with the world last week. It has us all buzzing with excitement. At Isomer, we've long been dedicated to providing liquidity in the European VC space. And now, we're taking it to the next level with the launch of our dedicated fund. What is it, you ask? A fund that will invest in secondaries at all levels within the European VC ecosystem—LPs, GPs, companies, founders, angels, and even employees. And because there is limited liquidity solutions to LPs that have invested in European VCs, around 70% of our fund will go towards LP stakes. With the support of our Cornerstone investors, we've reached this significant milestone in our journey. But the work has only just begun, which myself and my incredible team have already started smashing through ... first 2 deals closing in a matter of weeks. Watch this space! 😉 #Isomer #VentureCapital #Secondaries #EuropeanVC #Investing #Liquidity #ImpactInvesting #Teamwork #Milestone

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