Michael Macolino’s Post

Ready to fuel your startup's growth? At #FII8, discover how aramco’s $7.5 billion #VC program is powering #innovation across industries. Learn how to secure #funding, forge game-changing partnerships, and capitalize on sector change. https://bit.ly/4hlfcUp

In a significant deal, Sydney-based data center company AirTrunk has been acquired by U.S. private equity group Blackstone and the CPP Investments | Investissements RPC for over US$16Bn. This acquisition, one of Australia's largest, underscores the growing recognition and value of Australian businesses globally. Learn more via the 🔗 link in the comments. #airtrunk #startup #investment #data #venture #capital #equity #blackstone

🚀 A Decade of Canadian Venture Through Capital Exits 🚀 Check out this insightful piece from RBCx ‘s very own John Rikhtegar , diving into how Canadian venture has evolved over the past ten years through the lens of capital exits. From key trends to lessons learned, it’s a must-read for anyone interested in the future of Canada’s tech ecosystem.

Just finished reading an insightful analysis by John Rikhtegar at RBCx on the Canadian venture capital landscape over the past decade, focusing on capital exited rather than capital invested. This deep dive sheds light on the challenges and successes of our venture ecosystem and provides valuable lessons for the future. Here are my top 5 takeaways: 1️⃣ Liquidity Volatility Challenges the VC Ecosystem Over 50% of Canada's exit value in the past decade occurred in just 2020 and 2021. This surge pulled fund cycles forward as GPs rushed to redeploy record waves of LP capital. Consequently, 2023 and 2024 have seen some of the lowest levels of capital allocated to Canadian venture in years. 2️⃣ The Dominance of Top 50 Exits A staggering 85% of Canada's aggregate exit value came from only 27% of all exits—the Top 50 largest. Achieving such large exit outcomes remains critical for VC investors aiming to build lasting franchises in Canadian venture. 3️⃣ Exit Success Isn't Just About Size There's a misconception that bigger exits equate to greater success. By evaluating exit capital efficiency (exit value relative to total capital raised), we can better assess the profitability to shareholders. Capital-efficient exits often yield higher returns, regardless of their size. 4️⃣ Canada's Exit Growth Outpaces the U.S. While smaller in scale, Canada's exit value and volume have grown faster than the U.S. over the past decade. Given that the U.S. VC market is 30x larger and more mature, this is a healthy sign for Canada's developing ecosystem. 5️⃣ Managing the Exit Value to Fundraised Ratio is Key To continue building a capital-efficient VC ecosystem, Canada must focus on improving its cumulative exit value to capital fundraised ratio. Shrinking the gap between Canada and the U.S. in this ratio is vital as we anticipate exit activity to rebound in the coming years. This analysis aligns closely with Ripple Ventures' strategy. At Ripple Ventures, we prioritize investing early and staying disciplined on entry valuations, all while focusing on capital efficiency. We believe that supporting capital-efficient startups not only drives better returns but also strengthens the overall ecosystem. It's encouraging to see data supporting this approach, emphasizing the importance of disciplined investing and capital efficiency in achieving successful exits. 📖 Read the full analysis below: #VentureCapital #CanadianVC #RBCx #RippleVentures #CapitalEfficiency #StartupEcosystem

As the launch of the Venture Capital Action Plan back in 2013 marked the start of Canada’s journey in intentionally building our venture ecosystem, we now have over a decade worth of data to look back on. But more specifically, though capital invested is a key part of that dataset, our team at RBCx wanted to look at Canadian venture from the ‘other’ side of the equation, and instead, look at capital exited. At the Banff Venture Forum last month, we previewed our analysis, and today have released the first publication of its kind in Canada, exclusively focusing on venture capital exited over the past decade. ⛓️💥How have the record liquidity years in 2020 and 2021 both helped and hindered our ecosystem? ⏳What are the implications of having Canada’s exit track record embody the infamous Power Law? 💰Why should we be careful about correlating exit ‘size’ with exit ‘success’ and instead, consider the implications of capital efficiency? 🆚 How does Canada’s exit track record compare to that of the US? If any of that interests you, I highly suggest the read and welcome any and all feedback. I look forward to this being the first of many publications our team puts out over the next year, bringing further transparency and data to our developing private markets. RBC RBCx Sid Tony Nicole Danielle Matt Ameet Jamie Boris Angela Mike Jonathan Janet Matt Dominic Kathryn Daniel Peter Michelle Kelly Dion Jean-Francois Ian Lauren Kim Jérôme Sean Jill Kristina

Just how healthy is Canada’s venture ecosystem? An exclusive RBCx analysis spotlighting Canadian venture over the past decade helps answer this question from the “other” side of the venture equation—capital exited—rather than the more frequently discussed capital invested. John Rikhtegar, Director, RBCx Capital and the study’s lead author, presented our findings at the 2024 Banff Venture Forum this October. Here, we share his key takeaways. RBCx,

THIS is one of the best analyses I've read on the VC ecosystem as of late. While John Rikhtegar spends the report covering the Canadian ecosystem, I find it as useful - and lots of parallels to the US VC ecosystem and where LP dollars went - for the broader global economy. It's a longer read, but I promise, worth every minute. Some of the notes that stuck out most for me: 1/ 50% of the past decade's exit values were generated in 2020 and 2021. Great liquidity for LPs, but that forced LPs to have an unprecedented amount of capital to redeploy, which made them redeploy quickly to VC, but caused a vacuum and left 2023 and 2024 years far drier for GPs fundraising in market. 2/ From peak in 2021/2022, there's been a 76% drop in exit value in the Canadian ecosystem, 85% drop in Canadian VCs fundraising, and a 77% drop in capital Canadian VCs invest into the ecosystem. 3/ The median exit age of for the top 50 Canadian companies is 12 years. The median time between first financing and its exit for the top 50 is 8 years, leaving a median time of 4 years from a company's founding to their first financing. As such, if a Canadian VC's deployment period is 4 years, it's right to assume as an LP, that you're not going to see the end of the fund till 12 years after you invest. Even if the GP pitches a 10-year fund. 4/ Not all exits are created equal. The top quartile of top 50 exits raised more capital than the lower quartile. The median exit capital efficiency for Canada's top 50 companies for was 7.7X. Meaning the median company exited for $7.70 on every $1 they raised. 5/ Median US exit values are 2X Canada's. That said, Canada is catching up. In the past decade, the US produced $2.6T in exit value, compared to Canada's $56B, only a 46X. Lowest delta on record.

Why is capital efficiency key to building Canadian venture? How does the past decade of Canadian exit value and volume compare to the US? Learn these answers, and more, based on our analysis of the past decade of Canadian venture through the lens of capital exited: https://lnkd.in/eiMAyrHf #RBCxPowersBold #VentureCapital #CDNstartup

Is 2025 going to be the year that VCs finally get some exits? With M&A likely to tick up, The Information identified the VCs most likely to see windfalls based on DETAILED reporting about each investor's ownership stakes. It was more distributed than I thought it would be. https://lnkd.in/gYyHUsZ3

Top developments in the world of private capital this week: ‣ TPG Rise Climate secured USD1.25b for its Global South Initiative, a vehicle focused on private equity investments in high-growth climate opportunities across the Global South. #Global ‣ Helios Investment Partners led a INR8.5b (~USD101.8m) Series D for India-based API infrastructure platform M2P Fintech, at a reported INR65.5b (~USD790m) valuation, with participation from Flourish Ventures and others. #Asia ‣ BTG Pactual acquired US-based multifamily office Greytown Advisors, Inc. #LatinAmerica ‣ Packeta Group, a Czech Republic-based delivery platform backed by CVC and Emma Capital, fully acquired FOXPOST PLC, a Hungary-based parcel locker service provider. #CEE For additional insights and updates in the industry, explore this week's #NewsWatch: https://hubs.la/Q02S1BxX0 #venturecapital #globalmarkets #investments #finance #tech #privatecapital #financenews #startups #privateequity