Recap, April 4th - May 8th 2022

Recap, April 4th - May 8th 2022

Michael Jackson Michael Jackson

Michael Jackson

Venture Capitalist

发布日期: 2022年5月8日
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Bonsoir! What's the most interesting thing you read this week?

Ok peeps, you know the routine: it's all my LinkedIn posts for the dates indicated.

Ready? Because here it comes!

Margrethe Vestager: "When you turn off that water you say 'Take that Putin!'" ?? ?? ????

Patrice Caine, CEO of Thales: "There are not enough engineers and scientists in France". ????

"The tight supply of experienced talent certainly has been a powerful governor holding back an explosion of startups." ??

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"The biggest threat I see right now is that there’s money that doesn’t come with advice, and I really worry what that does to companies." ??

"In France, where about two-thirds of power comes from électricité de France’s nuclear plants, the electricity component of inflation has risen by 4% in the past 12 months, but by an average of more than 27% in the eurozone generally." ??

"The fact that Europe is waking up to the real threats of war at its door means that you’ll have many, many years of bigger budgets." ??

Web3 inheritance. ??

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"The UK and Estonia are two of the most innovative countries in NATO, and our hosting of DIANA will harness that innovation for the benefit of all allies tackling future military threats." ???? ????

Pretty much every competition slide in a pitch deck. ??

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“Walk before you run…don’t raise a fund first. Raise it second.” ??♂?

"Big problems make room for big returns." ??

Had gone the entirety of 2+ years of Covid times with no major technical issues nor at home commotion disrupting a video call...until both happened yesterday...in the middle of speaking on a conference panel. Oh well, that's life. ??

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Performance numbers for?Oren Zeev’s Zeev Ventures. He’s one big reason why LPs are increasingly interested in solo GP firms. ????

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In SF for the first time since before Covid. ??

Preqin?estimates the global venture capital industry has now surpassed $2 trillion in AUM, an all-time record. ?? ?? ??

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€4.8B raised by 33 new funds in Europe in Q1. No real let up in European VCs fundraising. ?? ??

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"It’s difficult to give an accurate overview of the unrivalled potential for meaningful innovation brewing across Europe’s research labs, which largely remains untapped due to varying – and at times?stifling?– IP ownership rules that can make spinout companies un-investable and hard to scale." ??

“PhotonDelta?has conditionally received a €1.1 billion investment that is aimed at building some 200 startups”. ???? ??

"It is common to have paid consultants or members of a university tech transfer office representing an academic team. This is a red flag for most VCs I know. Don’t do it". ??

"Why hasn’t the UK?grown any giant tech companies? 'I think it’s the absence of networks and connections that really strikes me a lot, compared with certainly West Coast America.'" ????

Jack’s not pulling punches anymore about?Twitter’s board. ??

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“Apple has become a ‘semiconductor juggernaut’. Apple’s spending last year on its internal semiconductors would rank it as the 12th-largest chip company in the world by revenue.” ??

The Dutchies making it rain in their deep tech scene. ?? €5B so far in 28 national projects. That's a lot of tulips. ?? ??

“All the world’s cell production combined represents well under 10% of what we will need in 10 years. Meaning, 90% to 95% of the supply chain does not exist.” ??

“GPs who have some sanctioned LPs have been squeezed into selling their stakes in portfolio companies at 20 cents on the dollar.” ??

"When you only have one swimming pool, you gotta fish out the turds already floating around while simultaneously convincing people to stop dropping new turds." ??

I have to laugh when anyone, journalists or otherwise, think that bubbles can be predicted and called. ???

The Streaming Wars. ??

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Europe can be a pretty damn wonderful place, and there's definitely a bullishness right now in Europe climatetech investing. ???? ?? ?? ?? ??

"UK domiciled VC funds have 28 LPs on average...the median cheque size written by LPs into UK VC funds is c.￡170,000...the makeup of the 28 LPs is, on average, 2x institutions, 1x strategic, 2x fund of funds, 6x family offices and 17x HNWIs...most institutional LPs investing in UK VC funds are based outside the UK." ??

RIP CNN+! ?? ??

“Demand for lithography tools is so strong that ASML, the world's largest maker of scanners, is warning that only 60% of orders for deep ultraviolet (DUV) litho machines can be fulfilled.” ????

Breakdown of the $46.5B in financing committed by Elon Musk and?Morgan Stanley?to buy?Twitter?breaks down as:

- $500M revolver

- $6.5B term loan

- $3B secured bridge loan

- $3B unsecured bridge loan

领英推荐

- $12.5B margin loan

- $21B equity commitment from Musk ??

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"We showed them our own successes as angel investors, as startup founders, as corporate investors, as business managers. None of that counted. They wanted to see a track record for the fund. Without a track record, nobody was investing." ??

The deck for Jared Kushner's Affinity Partners shows fundraising is often more about who you know than, well, anything else. It's a weak deck...but they've raised $3B+. ??

"Some have suggested that we need to completely stop growth to solve climate change. Not so. Only broad-based prosperity coupled with ingenuity will give us the tools necessary to solve the problems created by climate change." ????

"Until regulators can compete with consumer Internet companies on product, creating broad mandates that compile down to product decisions will be wildly ineffective." ??

Matt Levine?on what the board and the bankers do when a company is being bought. ?? The role of service providers is mostly to get a deal done.

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"ASML?has not only shown the world that Moore’s Law is alive and kicking but has firmly established the Dutch position at the table for tech superpowers." ???? ??

Have to wonder just how much the decision to not list in the US was impacted by the founder/investor facing extradition to the US where criminal charges await him. ??

“His biographer, Reinhard Urschel, had asked him what he wanted to do after leaving office. ‘Make money,’ Mr. Schr?der had replied.” ???? ?? ??

"Arm will end up holding less than 20% of the Chinese venture and will treat it as an uncontrolled affiliate for accounting purposes...Arm China will be treated like any other license-paying customer -- rather than a fully controlled subsidiary." ??

Maybe he will. Maybe he won't. The reactions have sure been entertaining though. ??

Funds are judged by the successes, particularly the big successes, and not the failures. Unfortunately most people, including journalists, still don't get that. ????♂?

Would have been great if Masayoshi Son had made cameo appearances à la Stan Lee. ??♂? ?? ??

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If a single event can look like the top of the market it's this crypto conference in the Bahamas. ?? ???? ??

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"Universities can make very bad major shareholders...the notion of universities funding themselves in a meaningful way via licensing or start-up activity is ridiculous and dangerously naive". ????

“In 2021, $3.2B was invested in quantum firms around the world compared to $900M in 2020…in the first quarter of this year, about $700M was invested – a sum similar to the investments in the field between 2015 and 2019 combined”. ?? ?? ????

“There is still a long way to go for the government to become technically literate enough to understand what is happening in the technology space. This creates a massive problem when we talk about helping to create processes and policies for innovation.” ?? ??

“Last year silicon photonics startups raised over $750 million, doubling from 2020. In 2016 that was about $18 million.” ??

To some it all depends on where you're sitting. ??

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“Here’s the thing about life science companies: they are not doing science experiments on Zoom; they need real life space and that is generating a lot of demand in these cities.” ???? ?? ?? ?? ??

Europe's first (and only) truly global digital product. ??

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“This morning one of our traders made an error when inputting a transaction…toppling the main European index by as much as 3% and wiping out €300B at one point.” ?? ?? ??

"EIB report: Access to funding and talent are main challenges for small deep tech companies in EU". ???? ??

"The Doerr School for Sustainability, Stanford’s first new school in 70 years, will be among the largest and best funded. It will launch with 90 faculty members and add 60 more over the next 10 years”. ?? ?? ??

The?European Innovation Council and SMEs Executive Agency (EISMEA)?announcing the fourth (?) delay in its issuing funding. Shameful behavior and insulting to the entrepreneurs who spent their valuable time going through the process. Bureaucrats shouldn’t be playing at VC. ????

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Some of the investors joining Elon Musk in his bid for Twitter: a16z in for $400M, Sequoia $800M, Binance $500M, DFJ $100M, Larry Ellison $1B, and so on. ??

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This is good. Nails so much Bay Area ridiculousness and cringe. ??

This all could just be a regression to the mean. 2020-2021 had lots of anomalous external conditions that weren't going to last forever. ????

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"While reserves can occasionally boost returns, they can, and more frequently do, bring down fund multiples". ?

“Arm executives in Cambridge appear to have been left unaware of the arrangement.” Good grief, Arm has become a total shitshow. ??

"Interim IRR is much too easily manipulated and in some cases incents behavior counter to the long-term benefit of LPs (and GPs)." ??

"In the first three months of 2022, for example, the amount of funding going to private European biotech companies fell steadily compared to the end of 2021. This echoes a fall in cash going to European biotech investors in the first quarter of 2022." ?? ??

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And there it was!

No extras this time because there are so many posts. Will be back to posting weekly next week.

Feel free to?follow me on Twitter.

Have an amazing week!

MJ.

Another Amazing Week Another Amazing Week

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Muhammad M.

Entrepreneur

2 年

??r101%?1?

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Mukul Mohanty

Senior Partner | Private Equity | Venture Capital

2 年

Best series!

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