| |
| Hey Insiders, Today we are taking a look at the slump in GIC's five-year returns, the reason behind European VC deals 63.1% YoY slump, and Goodwater Capital's $1B funds. I hope you enjoy today's edition! Karan
p/karan-chafekar | |
| 1 | | 
In the last fiscal year, GIC's five-year nominal rate of return slumped to 3.7%, the lowest level across the last seven years. Meanwhile, the Singaporean sovereign wealth fund reported a 4.6% 20-year real rate of return, its highest over the past eight years. CEO Lim Chow Kiat warned, "We are not out of the woods yet. The consequences of the policy tightening are still being felt in the economy and markets." More: - GIC's outlook for the remainder of 2023 is bleak, with the firm anticipating a global slowdown.
- The firm claimed that its cautious investment approach over the past year helped mitigate the impact of the market correction.
- GIC reportedly has nearly $690B in assets under management.
- 17% of its portfolio is invested in private equity and 13% in real estate.
- Most of its investments are in the U.S., accounting for 38% of its portfolio. Asia, excluding Japan, makes up 23%.
- Despite rising geo-political tensions, GIC plans to continue investing in China, with chief investment officer Jeffery Jaensubhakij adding: "There are some 'China for China' type of investments that still make sense."
|     | |
| 2 | | 
What the numbers say: In Q2 2023, VC funding for European startups declined to its lowest quarterly level since Q3 2016. European startups raked in €10.8B ($11.9B) in the second quarter, lower than the preceding quarter's tally of €13.2B ($14.6B). VC funding deal value dropped by 63.1% YoY in the first half of the year. Relevance: The funding pullback has severely impacted late-stage startup funding. But surprisingly they were able to increase their deal count share from 31.2% in Q1 to 31.8% in Q2. However, early-stage startups continue to nab the largest percentage share of European VC deals, taking in a 35.4% share in the recent quarter. Deal count for angel and seed startups continued its downward trajectory for the fourth consecutive quarter. What happened: U.S. investors reduced their participation in European VC deal-making by 69.2% YoY, joining deals worth €4.6B ($5.1B) in Q2. U.S. investors participated in just 18.7% of European VC deals in the recent quarter, further intensifying the VC funding slump for Europe. Where to see the impact: Q2 witnessed just 11 public listings, down 83.1% YoY. Meanwhile, acquisitions continue to remain the most popular exit route, with 299 such transactions for VC-backed startups concluding in the first half of this year. VC deal-making is not expected to pick up pace until liquidation opportunities improve. | | | |
| A message from our sponsor, NativePath. |  | | Your new secret weapon to reversing signs of aging Collagen, the body's most abundant protein, is crucial in maintaining healthy joints, skin, bones, and hair. Unfortunately, natural collagen production declines with age, causing unwanted signs of aging, including sagging skin, wrinkles, brittle nails, hair, and joint pain. Fortunately, NativePath's Certified Grass-Fed Collagen Powder unlocks the body's potential to combat aging and promote overall wellness. With just two scoops daily, you can feel younger and reverse the signs of aging. Collagen acts as an antioxidant, which helps fight off harmful free radicals and repair previous skin damage, reducing dark spots. With NativePath, you don't have to settle for anything less than nature's best in every bottle. Order now for 55% off your first order of Grass-Fed Collagen Powder! Buy Now | |
|
| 3 | | Burlingame, Calif.-based VC firm Goodwater Capital raised $1B for its fifth early-stage and third growth-stage funds. Nearly 60% of the capital will be deployed into seed and early-stage startups. More: - Goodwater exclusively invests in consumer tech startups overlapping with housing, healthcare, food, financial services, transportation, education, and entertainment.
- The new fund brings the firm's total assets under management to $3.3B.
- Goodwater has backed 79 early- and growth-stage startups to date, including grocery delivery startup Getir, fintech Toss Bank, investment app Stash, neighborhood social platform Karrot, and neo bank Monzo.
- Goodwater successfully exited its investment in Musical.ly when ByteDance acquired it for over $1B in 2017.
- Other notable exits include math app Photomath, which Google acquired for an undisclosed sum; cash-back rewards startup DOSH, acquired by Cardlytics for $275M; and personalized vitamin compare Care/of, which Bayer acquired in 2020.
| | | |
| 4 | | Australian VC firm Main Sequence held the first close of its third fund at AUD $450M ($303M). The fund will back deep tech startups critical to Australia's national interest. Main Sequence expects to back 25 startups between the pre-seed to Series B stages. The firm expects to reach its undisclosed target for the new fund by year-end. More: - Australia's national science agency CSIRO, which founded Main Sequence, will contribute AUD $75M ($50.5M) capital to the new fund as part of its AUD $150M ($101.8M) commitment under the federal Economic Accelerator program.
- Limited partners that contributed capital to the new fund include Temasek, LGT Crestone, Australian Ethical Investment, Morgan Stanley Wealth Fund, and others.
- Main Sequence has over AUD $1B ($0.7B) in Assets under management (AUM).
- The firm has backed 53 startups to date through its AUD $240M ($162M) CSIRO Innovation Fund I in 2018 and AUD $330M ($222.4M) CSIRO Innovation Fund II in 2021.
- Main Sequence counts Regrew, Advanced Navigation, Gilmour Space, Endua, MGA Thermal, and Q-CTRL among its notable portfolio companies.
| | | |
| 5 | | Jackson, Wyo.-based VC firm Prime Movers Lab secured $245M in capital commitments towards its third early-stage fund. The firm will back early-stage startups that are working on advanced breakthroughs across the energy, transportation, infrastructure, manufacturing, human augmentation, and agriculture sectors. More: - The current fund is the firm's fourth overall after its $100M Fund I, $245M Fund II, and $500M Early-Growth Fund.
- The new fund brings the firm's total assets under management to $1.2B.
- Notable portfolio startups include wireless technology provider Tarana Wireless, supersonic aircraft maker Boom Supersonic, commercial spaceflight startup Axiom Space, and satellite network firm E-Space.
- The firm has already backed space infrastructure startup Quantum Space, mental health therapeutics firm Gilgamesh Pharmaceuticals, brain-computer interface maker Paradromics, and robotics company Robust AI with the funds raised towards Fund III.
| | | |
| 6 | | Today's Funding: Biotech - Palo Alto, Calif.-based biopharmaceutical startup Kriya Therapeutics extended its Series C funding round with $150M in additional funding, bringing the total raised under the round to $430M. Patient Square Capital led the funding round.
- Watertown, Mass.-based biotech startup Nexo Therapeutics emerged from stealth mode with a $60M Series A funding. Versant Ventures led the round, joined by New Enterprise Associates and Cormorant Asset Management.
- Gene delivery technology startup VectorBuilder cemented its unicorn status with a $57M Series C funding round led by Legend Capital.
- San Francisco, Calif.-based bioengineering startup Ossium Health nabbed $52M Series C funding led by CPMG. Vivo Capital, First Round Capital, Manta Ray Ventures, Alumni Ventures, and others backed the fundraiser.
- Precision care company Octave Bioscience raised a $30M Series B extension funding round from Novartis, Hikma Ventures, Northpond Ventures, Deerfield Management, and others.
Climate Tech - Dioxycle, a climate tech startup that makes sustainable ethylene from recycled carbon emissions, secured $17M in Series A funding co-led by Lowercarbon Capital and Breakthrough Energy Ventures, with participation from Gigascale Capital.
E-commerce - New York-based e-commerce enablement platform AppHub secured $95M in strategic investment from PSG. Additionally, the firm acquired the AI-powered search and discovery platform Boost.
| | | |
| 7 | | Quick Hits: - Invest in Virtuix before they ship their VR treadmills to their waitlist, a $100M opportunity. This opportunity ends on 8/10.*
- VC firm Andreessen Horowitz is reportedly liquidating nearly $7M worth of MakerDAO's MKR governance tokens. The move comes as the token's prices reached a one-year high of $1,200 following the announcement of a new buyback scheme.
- British VC firm Balderton Capital hired Leah Sutton as chief portfolio talent officer to support portfolio startups recruitment, culture, and organizational strategies.
- 10 Northwest Arkansas startups nabbed $91M since the start of this year, per Axios. At this pace, funding for the region will likely match last year's tally of $200M.
- Thales Group acquired cybersecurity firm Imperva from PE firm Thoma Bravo for $3.6B.
- Discover how collagen helps reduce loose skin, deep wrinkles, and dark spots.*
*This is sponsored content. | | | |
| Upcoming Events | | JUL
31 | | #TwoCents Discussion Community Challenge | | | | | | | AUG
2 | | Join Vanta and VioletX and find out how growing startups should navigate the complex compliance space.* | | | | | | | OCT
16 | | Meet Our Fund 5, Building and Investing in AI | | | | | | | NOV
7 | | Join us for Strategic Marketing 2023 and meet 300+ CMOs and senior marketing leaders from the world's biggest brands.* | | | | | | * This is a sponsored event | | | |
Term of the Day Customer relationship management: Customer relationship management (CRM) is a strategy for managing a company's interactions with its customers or potential customers. Question of the Week What's your stance on unpaid internships: valuable experience or exploitation? Join the conversation |
INSIDE VENTURE CAPITAL LEADERBOARD (30 DAYS) |
 | Analyst | | Karan Chafekar is a Management Consultant, Business enthusiast, and Licensed Pilot. | | This newsletter was edited by Eduardo Garcia | |
| |
| |
|
| |
Comments
Post a Comment