How VC secondaries affect Tech's growth

What's the state of #venture in Southeast Asia? Unlike the US, where there is comprehensive financing coverage across the venture lifecycle, from a company’s inception all the way to public listing, #SoutheastAsia lacks robust funding support at the late and venture growth stages. The regional VC market saw the influx of large global players during 2019 and 2020 but many of those brand name funds have become less active during and post-pandemic. Success for regional VCs to raise a subsequent fund and/or to grow their fund size is contingent upon cash returns, which so far remained elusive due to low exit activity that we observed during the past 1-2 years. Thank you, The Straits Times, for the feature! https://lnkd.in/ghkRDp7H

The trend of secondary transactions in venture capital is on the rise as M&A activity slows down. With the IPO and M&A markets remaining sluggish, both venture firms and startup founders are increasingly turning to the secondaries market to generate liquidity. This shift is driven by the need for liquidity and the attractive opportunities that secondary deals present in the current market environment https://lnkd.in/gnMPRpCg

#Secondaries | €3.7M in transaction volumes. Up to 3x returns. 1 year and a half. In early-stage and growth-stage investments, liquidity is often the elephant in the room. The allure of a potential 10x return is tantalizing, but traditional venture capital has always required patience—waiting for that long-awaited exit often takes years. Yet, SeedBlink’s secondary market has surpassed €3.7M in transaction volumes—giving investors a chance to exit early, with some seeing returns of 2.5x to 3x. This growth was driven by two distinct types of transactions: Bulletin Board Secondaries & Secondaries in mature scale-ups or pre-IPO companies. This not only benefits investors looking for flexibility but also provides new entrants the opportunity to join exciting deals at various stages of company growth. Read the full article: https://lnkd.in/dRjsKpmB

I recently spoke with 2 founders (one with $10,000,000 AUM & the other with $150,000,000 AUM) to understand their approach to raising capital. Their perspectives couldn’t be more different.

I recently spoke with 2 founders (one with $10,000,000 AUM & the other with $150,000,000 AUM) to understand their approach to raising capital. Their perspectives couldn’t be more different. 𝗙𝗼𝘂𝗻𝗱𝗲𝗿 𝟭 ($10MM AUM): Focuses on early-stage tech startups.
𝗙𝗼𝘂𝗻𝗱𝗲𝗿 𝟮 ($150MM AUM): Specializes in growth-stage investments in established firms. 𝗙𝗼𝘂𝗻𝗱𝗲𝗿 𝟭: Leverages convertible notes & SAFE agreements to raise funds.
𝗙𝗼𝘂𝗻𝗱𝗲𝗿 𝟮: Relies on equity raises, but also strategically uses debt. 𝗙𝗼𝘂𝗻𝗱𝗲𝗿 𝟭: Raised capital from angel investors, focusing on high-growth sectors.
𝗙𝗼𝘂𝗻𝗱𝗲𝗿 𝟮: Raised from institutional LPs and family offices with a focus on diversification. 𝗙𝗼𝘂𝗻𝗱𝗲𝗿 𝟭: Never faced a capital shortfall despite being early-stage.
𝗙𝗼𝘂𝗻𝗱𝗲𝗿 𝟮: Encountered liquidity challenges during market downturns. Both have an impressive track record, but two very different strategies. What stands out to me is that their approaches to AUM growth are radically different: • Founder 1 focuses on tech startups, using highly flexible capital structures. • Founder 2 builds a diversified portfolio with larger equity deals and occasional debt. The flexibility of early-stage funding seems appealing, but I’m also seeing how critical strategic debt and institutional investors are for scaling large AUM. What are your thoughts on capital raising in the current environment? What approach do you prefer? How do you balance risk and growth in capital raising? #CapitalRaising #InvestmentStrategies #AUMGrowth #ZiadSelo

🚀 Andreessen Horowitz raises $7.2B for five funds, the bulk of which will go toward late-stage, or growth, investments. The biggest chunk of new funding is in Andreessen Horowitz’s growth fund, which reeled in $3.75 billion. That money gets invested in later-stage companies that are viewed as closer to going public, or capital-intensive businesses that require big checks. Horowitz said in the post that $1.25 billion will be dedicated to infrastructure, which includes artificial intelligence investments, while $1 billion will go to app investments, $600 million to games and another $600 million to what the firm calls American dynamism, or “founders and companies that support the national interest.” That includes aerospace, defense, education and housing. Andreessen Horowitz's previous investments in real estate startups include Airbnb, Adam Neumann's Flow, and Setpoint.io. Learn more about Andreessen Horowitz's investments in the article below. 👇 https://lnkd.in/d7wSsFGz #realestate #PropTech #venturecapital #latestageinvesting #vc ---- 💡 Follow PropTech Connect for daily Real Estate news and insights.

Good morning from the sunny Silicon Valley! In 2023, the venture capital market saw a 30% YoY drop globally, making the startup landscape challenging. Here are 5 key steps from Forbes to navigate challenging times like these: ▪️ Cut Expenses: Minimize costs, and this includes potential staff downsizing. Focus on the core business and profitable product lines. ▪️ Revise Your Business Plan: Shift to survival mode, halve growth and marketing expectations, and focus on the existing revenue streams. ▪️ Engage with VCs: Understand their current investment criteria, get feedback on your plan, and set and achieve reasonable goals to build credibility. ▪️ Seek Alternative Funding: Explore options like friends and family, angel investors, and venture debt. Focus on equity over debt. ▪️ Think Outside the Box: Consider merging with competitors to form a larger, more attractive business for private equity investors. Check out this article for more tips - https://lnkd.in/gsev3-bD #mergersandacquisitions #venturecapital #innovation #businessstrategy #techlaw #foleyforward #garage2global Foley & Lardner LLP

Considering the 2023 30% YoY drop globally in #venturecapital activity, is merging with competitors to form a larger, more attractive business for private equity investors the way to go? ▪️ Think Outside the Box Check out this post for more tips. #mergersandacquisitions #venturecapital #innovation #businessstrategy #techlaw #mergerandacquisitions André Thiollier

The article from Tech in Asia highlights the challenges faced by venture capital (VC) firms due to a slowdown in IPOs and exits. Here are the key points: 💠 Decline in IPOs and Exits: The number of IPOs and successful exits has decreased, creating difficulties for VCs to realize returns on their investments. 💠 Impact on Fundraising: This decline has made it harder for VCs to raise new funds, as limited partners (LPs) are cautious about committing capital without clear exit opportunities. 💠 Shift in Strategy: VCs are becoming more selective in their investments, focusing on companies with strong fundamentals and clear paths to profitability. 💠 Market Conditions: Economic uncertainties and geopolitical tensions are contributing to the challenging environment for exits. https://lnkd.in/g7MxE_T6

The VC ecosystem in Australia is vast and diverse, with many investors in different focus areas. A commonly asked question is, "Which funding stage or type of funding is right for my business?" 🤔 Investment Associate Abhishek Maran breaks down and clearly explains the various funding stages Australian startups can go through and how to understand the differences between each. https://lnkd.in/gB2VTnbK #startupfunding #VCfunding