Highlights from the Observation Deck #9
Joshua Seerattan
Global Tech & Venture Ecosystem Builder | Principal Sr. Investment Analyst @ Wesley Clover | Web3 North | Candid Capital Podcast Host | VC, Startups & Digital Assets"
This Edition of the Tech Ecosystem Watchtower shares periodic highlights on tech news and research related to the Innovation Economy being followed in the world of Venture Capital & Entrepreneurship.
What I'm Reading
Innovation Highlights:
Decentralized AI: 2024 Summary and Insights
In 2024, decentralized AI startups secured a record $435.7 million in venture capital across 65 deals according to Pitchbook. This surge reflects growing interest in addressing the limitations of centralized AI systems by leveraging decentralized infrastructure, governance, and data sources.
Key Points
Insights
Decentralized AI is reshaping the industry by offering innovative, efficient alternatives to centralized AI systems, paving the way for more secure and cost-effective AI applications.
For more details:
Investment Trend Highlights:
Digital Assets
Happy 100, BTC has reached $100K USD!!
Crypto infrastructure startups to benefit as Bitcoin has risen about 130% this year, and ether recorded a 65% gain. Both jumped more than 50% over the last 30 days following Trump’s victory.
That appreciation, plus soaring trading volumes, are likely tailwinds for infrastructure startups that facilitate trading and custody, according to Pitchbook's Crypto Report.
Further more deal activity for VC sees 5 categories focused in Blockchain Networks, Infrastructure and Web 3
Key Takeaways:
Web3's dominance in this category underscores the growing appetite for decentralized solutions, while infrastructure and developer tools demonstrate critical importance for ecosystem scalability. DeFi and Access face more selective investment, possibly due to regulatory and technical challenges. These trends highlight a maturing crypto VC landscape with a focus on foundational and scalable innovations.
For more details:
Secondaries Fundraising Activity: A Record-Breaking Year in Progress
2024 is shaping up to be a historic year for secondaries fundraising. With $27.9 billion raised across 16 vehicles in Q3 alone, the cumulative total for the year has reached an impressive $88 billion across 72 funds. This momentum places 2024 on track to surpass the previous record of $90.3 billion set in 2020 according to Pitchbook.
While fundraising cycles naturally play a role in this surge, another key driver is the significant uptick in secondaries deal activity. According to the prichbook report, total transaction volume is projected to exceed $140 billion this year, marking a 25% increase over the $112 billion recorded in 2023. This growth is fueled by improved pricing for LP-led secondary deals, encouraging managers to secure capital for deployment in a highly active dealmaking environment.
These figures underscore the growing importance of the secondaries market as a vital component of the broader private equity ecosystem. With secondary managers increasingly well-capitalized, the stage is set for continued expansion in deal volume and innovative structuring opportunities in the space.
领英推荐
Insights:
The record-breaking growth in secondaries fundraising and deal volume suggests an increasingly active market for liquidity. Founders could leverage this by exploring secondary transactions to allow early investors or employees to realize liquidity while retaining control and growth potential for the company.
As LP-led secondaries benefit from improved pricing, startups may see more favorable valuations in secondary transactions. This can be advantageous for founders seeking strategic investors or transitioning existing stakeholders without diluting ownership too heavily.
Strategic Fundraising Paths:
Overall, startup founders should stay informed about secondary market trends as they represent an avenue for strategic liquidity and fundraising that can complement traditional funding methods.
For more details:
Startup & Entrepreneurship Highlights:
Hopper, Wealthsimple, Clio..
Wealthsimple recently became the latest Canadian tech company to capitalize on the booming secondary market, joining the ranks of Clio and Safe Software, which also executed notable secondary transactions this year. With the IPO market largely inaccessible, secondaries are providing much-needed liquidity for companies, investors, and employees alike.
Global secondary transaction volume hit a record $68 billion in H1 2024, according to pitchbook. This trend is reshaping liquidity strategies for private companies as they navigate an extended timeline to public market exits.
Hopper, for example, has previously leveraged secondaries in 2016 and 2020 but has yet to go public, with its leadership signaling no urgency for an IPO. Brightspark partner Sophie Forest, an early backer, noted Hopper’s strong "secondary potential" as a tool to reward employees and early investors if a public exit remains out of reach.
With the secondary market becoming an increasingly logical option in a cool exit environment, founders should view this as a viable path for balancing liquidity needs and maintaining growth momentum. For more on secondaries see the previous section- Investment Insights.
For more details:
Community & Events:
November 13-14: SaaS North Highlights!
The Wesley Clover Investor Private Session brought together around 70 investors to connect and explore opportunities with pre-selected companies leveraging AI to tackle the market. An incredible two days of innovation, networking, and forward-thinking discussions!
Next up holiday themed Events here are a couple spreading holiday cheer !!!!
Candid Capital Podcast Highlights:
December Episode: The Rise of Crypto: Navigating the Digital Asset Landscape
This episode features discussion about the evolution and challenges of digital asset management, the rise of crypto funds, and Bitcoin's potential as a treasury asset. Shaun shares insights on launching crypto funds, achieving returns, governance issues, DAOs, and the environmental impact of Bitcoin. The conversation explores strategies for startups integrating Bitcoin into their treasuries and emphasizes the need for investor education and regulatory clarity to foster innovation in the Canadian crypto space.
Previous Episode: Blueprint for Traction: The Art of Market Engineering
Candid Market Updates-Live Stream Playback:
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Fractional CFO | CPA, CA | Gold Medallist ?? | Passionate about AI Adoption in Finance | Ex-Tata / PepsiCo | Business Mentor | Daily Posts on Finance for Business Owners ????
1 天前Great Insights !! Sharing my Article : How to make a Business Plan that delivers results https://www.dhirubhai.net/feed/update/urn:li:activity:7304254124278063105?utm_source=share&utm_medium=member_desktop&rcm=ACoAAAIYkwQBHjyP2MuWtht00LQjOtHVIP11IU4