Annie Case’s Post

According to Pitchbook, the worst M&A and IPO environment in over a decade is forcing many VC firms to consider selling their startup stakes to secondary buyers in order to return capital to LPs. While VCs are exploring all flavors of secondary solutions, continuation funds are gaining more momentum. These vehicles allow existing LPs to sell aging assets to new buyers or roll those investments into the new fund. But despite the massive increase in interest, hardly any VCs or crossover funds are ready to pull the trigger on such transactions. That may change as assets are marked down further. Secondary buyers are asking for a much higher discount than most VCs can stomach. Investors don't expect many more of these deals to start taking place until there's a reset in valuations. #privateequity #venturecapital

What a shock. #vcfund after vc fund have spilled billions of LPs money in a speculation game that was never designed for ROI. People think VC are incredibly smart. They are not. They are only good at guessing who, down the line will buy their bets at a higher valuation. This is an investors nightmare. Learn how to invest yourself if you must. At least you save the 2% management fee. Or work with a syndicate where you get ti pick your deals and can get your name on the cap table. Things are not looking bright for VC right now. Unfortunately this is making life harder for everyone else in the space… https://lnkd.in/esUXTDD8 #capitalraising #unicornstartup #venturecapital

Venture capital trusts (VCTs) in the UK are attracting capital from retail investors, despite a tough fundraising environment for VCs, raising a total of £1.08bn from shareholders in the year to April 30, 2023, a 4% decrease from the previous year. In contrast, ordinary VC firms saw a 50% decrease in funds raised from LPs in the first nine months of 2023 compared to 2022.   VCTs offer tax benefits and the opportunity to invest in fast-growing companies as a long-term source of stable capital for founders, which could be appealing in a capital-constrained environment. '𝐎𝐮𝐫 𝐫𝐞𝐭𝐚𝐢𝐥 𝐢𝐧𝐯𝐞𝐬𝐭𝐨𝐫𝐬 𝐭𝐞𝐧𝐝 𝐭𝐨 𝐢𝐧𝐯𝐞𝐬𝐭 𝐰𝐢𝐭𝐡 𝐮𝐬 𝐟𝐨𝐫 𝐚 𝐥𝐨𝐧𝐠 𝐭𝐢𝐦𝐞 𝐚𝐬 𝐭𝐡𝐞 𝐭𝐚𝐱 𝐢𝐧𝐜𝐞𝐧𝐭𝐢𝐯𝐞 𝐛𝐞𝐜𝐨𝐦𝐞𝐬 𝐯𝐞𝐫𝐲 𝐚𝐭𝐭𝐫𝐚𝐜𝐭𝐢𝐯𝐞 𝐨𝐯𝐞𝐫 𝐭𝐡𝐞 𝐥𝐨𝐧𝐠 𝐭𝐞𝐫𝐦. 𝐓𝐡𝐢𝐬 𝐦𝐞𝐚𝐧𝐬 𝐰𝐞 𝐡𝐚𝐯𝐞 𝐚 𝐯𝐞𝐫𝐲 𝐬𝐭𝐚𝐛𝐥𝐞 𝐢𝐧𝐯𝐞𝐬𝐭𝐨𝐫 𝐛𝐚𝐬𝐞 𝐭𝐡𝐚𝐭 𝐥𝐨𝐨𝐤𝐬 𝐭𝐡𝐫𝐨𝐮𝐠𝐡 𝐭𝐡𝐞 𝐧𝐨𝐢𝐬𝐞 𝐨𝐟 𝐢𝐧𝐝𝐢𝐯𝐢𝐝𝐮𝐚𝐥 𝐲𝐞𝐚𝐫𝐬.” said Will Fraser-Allen, chair of the Venture Capital Trust Association (VCTA) and managing partner of Albion Capital Group LLP. More on Sifted, Amy O'Brien: https://lnkd.in/eaMpuVhm #VCT #funding #venturecapitaltrust

Why join us in the http://eu.vc LP syndicates? You can think of it as having your own personal 50 Cent taking you to the candy shop and showing you all the goodies 🍬🍭 tbh, making a good bet on early stage VCs in Europe isn’t easy. + You need access. To right deals at the right time. And there’s a level of breadth needed as well. I recently read that there’s 550 VC firms in Europe and 48 were newly founded in 2021. I honestly think both numbers are on the low side 🤔 either way, for sure 50% of these firms were raising 1 or 2 funds at some time during the booming 2021.. so good luck spare time LP to make sure you get the best one 😘 + You need skill to diligence. On an investment strategy level, personal & team level, and much much more. Again, good luck spare time LP to get the best one 😆 + You need diversification. Across verticals, geos and vintages. Investing in an early stage VC is definitely more diversified than going direct, but tbh, I’d still want to try and gain exposure to at double digit number of funds (if they’re sub 100M€ early stage funds). As a consequence, a few routes seem to be quite viable: 1) Invest in a fund of fund and enjoy the right (most offer co-investment opportunities, which can be quite amazing). Personally for early stage funds I love Isomer Capital and for access to the Tier-1 VCs in Europe; Pacenotes. But there are definitely also other very exciting alternatives; Multiple, Equation, AlphaQ, Industry Ventures, and the list goes on but these are people I’m starting to ♥. 2) Join the EUVC LP syndicate and enjoy hassle free access to Europe's best VCs as if it was a buffet 🍔🍖🥩🥧 I honestly think that if you want to invest in the up and coming potential outlier funds in Europe, we're a pretty good bet. But I might be biased there 😂 BTW: If you're rich as fuck, you can also reach out to your banker and explore their opportunities, but tbh, many are doing a money grab there 🤷 #euvc #venturecapital #vc #technology #investing ️

New year, new SEIS fund!! To kickstart 2024, we've teamed up with early stage investor Fuel Ventures 🚀 to help further democratise access to SEIS investing and to provide retail investors with tax-efficient diversification in early-stage businesses. Fuel’s mission is to back disruptive and ambitious founders. It has an established track record and across all its funds, as at May 2023, had deployed £130 million+ into over 100 companies. Notable recent exits include ContentCal to Adobe and Capdesk from Carta to Carta. Now, thanks to this partnership and our commitment to bring more people into private market investing , you can participate in Fuel's SEIS fund from £2,000, down from the typical entry point of £20,000. 📈 We continue to work with the best SEIS fund managers in the UK. SEIS funds are part of the government-backed SEIS scheme. This means they offer a generous 50% income tax relief on investments up to £200,000 and 0% capital gains. Please note that the tax benefits of SEIS depend on the individual circumstances of each investor and may be subject to change in future. The waitlist to invest is now open and you can follow the link in the comments to register. 😎

Secondaries funds hit a low point in 2023, but is a rebound afoot? In the evolving landscape of venture capital (VC) secondaries, Hamilton Lane's strategic move to target a $5 billion fund for its sixth secondary fund has sparked significant interest. This initiative reflects a growing confidence in the VC secondaries market, driven by the need for liquidity solutions and portfolio diversification. As Matt Pellini, Hamilton Lane's managing director, highlights, there's a substantial appetite among Limited Partners (LPs) for secondaries, a shift from a decade ago when the concept required more explanation. The appeal of VC secondaries has expanded due to various factors, including the availability of a broader range of assets and an increased understanding of the benefits these transactions offer. The market dynamics have also evolved, with both family offices and large institutions looking for liquidity amidst a backdrop of delayed exits and distributions. Interestingly, the market for secondary transactions has seen fluctuations, with early 2023 witnessing nearly frozen venture asset markets and the widest discounts ever. However, a rebound in the latter half of the year signaled a stabilization in macro conditions and pricing, reinvigorating the GP-led transactions space. Pellini's insights suggest an anticipated uptick in deal activity, notwithstanding the challenges in matching buyers with the volume of deals available. This dive into Hamilton Lane's approach and the broader VC secondaries market offers a fascinating look at how liquidity needs, market dynamics, and investor strategies are intersecting in today's financial landscape. As we look forward to more developments, the conversation around VC secondaries is bound to deepen, with implications for investors, startups, and the broader ecosystem. - Link in comments. - Feel free to engage in the conversation and share your insights :) #VentureCapital #SecondariesMarket #InvestmentTrends #LiquiditySolutions #HamiltonLane

Deal prices are down significantly and there is an abundance of dry powder. Yet, instead of a buying frenzy...VC spending has hit a six-year low. Why? Below, FirstMark Partner Adam Nelson untangles the factors that are leading to the seeming gap in capital supply and venture round momentum. He also shares our approach here at FirstMark as we adapt to the current environment and continue finding and backing the best Series A founders in New York, Europe, and beyond. https://lnkd.in/ewSDwysw

Announcing NVP 17, our newest $3B venture and growth equity fund! With the new fund, our team will continue to collaborate with visionary entrepreneurs and best-in-class founding teams to build the world’s most innovative companies. 🏆 We know a winner when we see one. Over the last 60 years, we’ve invested in more than 700 companies spanning a diverse set of sectors and stages. From minority to majority investments, we’re always looking to partner with growing, capital-efficient businesses, wherever they might be. 💡 Our world-class team is committed to funding the next category-defining companies. Our people, who lead with integrity and passion every day, are what sets Norwest apart. 📈 Since raising NVP 16, the previous $3B fund, our team has made 69 new investments and helped 36 portfolio companies achieve liquidity including Five-Star Business Finance Limited , Spiff (Acquired by Salesforce), Junk King Franchise Systems (acquired by Neighborly®), and more. We’ve also expanded the focus of our healthcare practice to include therapeutics and biotech. 🌲 From our deep operating experience and entrepreneurial backgrounds, we know how great companies are built — and that challenging times provide fertile ground for next-generation businesses. Many thanks to all who have played a part in our shared success. Our deepest gratitude extends to the outstanding entrepreneurs within our portfolio who have entrusted us to join them on the journey of building high-impact companies. https://nvp.co/nvp17

Great article by Zachary Ginsburg and Alex Pattis, offering insight for LPs investing deal by deal in VC. Key takeaways: ☁ Take it slow and have a plan: It's crucial to develop a well-thought-out strategy that enables thoughtful decision-making and long-term sustainability. 📝 Syndicate GPs positioning: Conduct your own due diligence and understand that while GPs are hoping for returns, they also have allocations to fill. 💯 Tier1 VCs Invest in a Large Number of Deals: This something I have personally felt on my journey. Seeing a Tier1 investor leading is exciting. However, it's important to recognize that they have the capacity to make more bets. 📈 TVPI is Not DPI: While a markup is positive, it doesn't guarantee a distribution event. ⛔ VC SPV Investments are Illiquid: The golden rule – invest only what you can afford to lose. Kudos to Zach and Alex for shedding light on this! #VentureCapital #InvestmentTips #LPInsights Full Article: https://lnkd.in/gek4BNv4