As we approach the festive season and our last Disruptor for the year, we thought it appropriate to reflect on the last chapter of the VC cycle….

A few observations that we have witnessed and that continue to shape how we approach the sector:

• Humility?- its?important than one never loses sight of?humility on the way up (witness 2021)
• Integrity?- its even more?important that one never trades integrity on the way down (witness 2022)
• Cycles?- are here to stay and just when you think the sun is shining, invariably there are clouds across the horizon, so prepare for both?climates (witness 2021 v 2022)
• Herd Mentality?-?unfortunately the?“Jones’s Theory” is alive and well, which makes?“propensity for surprise” one of the key?barometers for asset price moves (witness Q4 2021 then Q4 2022), and
• Good businesses,?Great founders, Sensible?valuations?will get funded?thorough all climates

We think 2022 can be broken into 3 thirds:

• The?“1st” third?- founders with unrealistic valuations = funding freeze
• The?“2nd”?third?- investors enter a deep freeze = funding freeze
• The?“3rd” third?- both are now meeting in the middle = market reopening

So we are?anticipating?that the?“3rd” third will continue as we progress through 2023, but believe we are still some way off from experiencing another?“Jones’s Theory”.

We would like to?thank our many supporters for their support throughout 2022. We have worked with some?amazing founders,?generous investors and?talented?service providers, all whom have contributed to our success. We wish?you all a safe and happy festive season.

In terms of our?Current Deals, we continue to see strong investor support for great businesses, backed by strong founders, that are priced sensibly.?

Having closed out numerous deals over the last 3 months, we have just launched our last deal for the year:?

PrimeXConnect - We have just opened this raise and have received a good response. PrimeXconnect is a sales and order management platform designed for the red meat industry - inventory, shipping, sales & management. Having built a strong presence in NZ & Australia, they are now launching into the US market. If you have interest in this opportunity, please reach out.