Digital Horizon VC

Today we’re excited to announce that we are now Launchbay Capital! With a strategy for success that is rooted in investment discipline, rigorous data analysis and active portfolio management, Launchbay Capital better reflects our firm’s evolution into a multi-stage, data-platform driven fund manager. We’re also pleased to announce the first close of a new $100m VC secondary fund that focuses on creating liquidity in growth stage, venture-backed technology companies with potential exits in three to four years. Read more here: https://lnkd.in/dMuHfH4x Join LinkedIn page:  https://lnkd.in/dHHHjzGa

The European startup ecosystem is catching up. Several key factors contribute to this, aspecialy in the current environment 📈📈📈 👉Less Bubbles: European Entrepreneurs have to prove economics earlier European entrepreneurs face a more challenging fund raising environment, where they often need to prove the economics of their ventures at an earlier stage. This emphasis on sustainable business models results in a more grounded and realistic approach to entrepreneurship. 👉More Mature Founders: European venture is on average older The European startup ecosystem benefits from a higher proportion of experienced and mature founders. These individuals bring a wealth of knowledge, industry expertise, and a broader network. 👉Patience as a Virtue: A more patient approach to venture Unlike the "overnight billionaire" drive often associated with the US, European entrepreneurs tend to exhibit more patience. This emphasis on long-term success aligns with the understanding that building sustainable businesses takes time 👉Migratory Talent: Attracting international professionals Europe has become a magnet for migratory talent, attracting skilled professionals from around the world. This influx of diverse expertise and perspectives enriches the European ecosystem, fostering innovation and collaboration across borders. 👉Product Focus: Less emphasis on pure marketing The European market's fragmentation and diverse cultural landscapes make scaling across different countries more challenging. As a result, European entrepreneurs often invest more time and effort in polishing their products, ensuring they meet the specific needs and preferences of each market. Challenges to Overcome: ☝️Conservative Investor Base: Preservation over Multiplication The European investor is much more conservative, prioritizing the preservation of generational wealth over high-risk, high-reward investments. The LP ecosystem is small and government money dominated. ☝️Scaling Difficulties Europe is a fragmented market with different cultural and regulatory landscapes. It is startups originated in “mid-size”, 50 million counties, which have more problems with scaling, rather than the small sub 10 million economies, where business are build day one to go global. ☝️Work-Life Balance Culture: Balancing Business with Personal Life While Europe prides itself on a strong work-life balance culture, this can sometimes be at odds with the demands of building a business from scratch. 📈The European ecosystem is catching up, leveraging its unique advantages. As the ecosystem continues to evolve it still struggles on the funding side, as European investors risk appetite remains very low in comparison to US and emerging economies. #venturecapital #euvc#

Top Segments in September's Secondary Markets redefining the paradigm that secondary deals have to sell at massive discounts 📈 📈 📈 👉 Here’s a snapshot: 1. AI-LLM: The Thrill Ride 🎢 OpenAI - projected at a whopping 200+% premium Cohere - estimated 40% premium Anthropic - soaring with an estimated 400+% premium Behind the numbers: Investors are anchoring their decisions on the skyrocketing growth rates of product usage. A recent Databricks report paints the picture: a 1310% growth in companies utilizing SaaS LLM APIs from November 2022 to May 2023. Astonishingly, there's a 411% YoY surge in organizations taking more models live. Leading the charge in growth is dbt, boasting 206% YoY growth by customer count. The current buzz? Fresh investment rounds for OpenAI and Anthropic: OpenAI is looking to do a tender offer at a $80-90bn valuation and same for Anthropic. However, it's worth noting that some secondary platforms haven’t updated pricing and report modest premiums for this sector. With our live market pricing tool, it’s evident that the market remains volatile. 2. Space: Opening Up the Final Frontier 🌌 SpaceX - charting the stars with an estimated 20% premium. Anduril Industries - not far behind with an estimated 15% premium. Fueling the Excitement: Fundamentally, groundbreaking achievements in space experiments combined with budding space agencies globally. PitchBook data reveals that VC investments in space-tech startups, especially outside the US and China, are on the rise, now making up over a quarter of the worldwide total. According to Michael Mealling of Starbridge Venture Capital, nations like India are easing foreign investment laws, pulling in more funds into their space sectors. Countries with emerging space agencies are actively collaborating with the private sector. In the short term, there is an ongoing tender offer for SpaceX at $81 that influences secondaries prices. 3. Business Applications: Riding the Wave of Sustainable Revenue Growth 🌊 Ramp - estimated 12% premium Introhive and Gong are other companies to watch The Inside Scoop: These companies are spotlighted for their consistently high Launchbay scores, indicating robust and steady revenue growth. 4. Payments: A Blend of Profitability and Prudent Valuations ⚖ Stripe - Striding ahead with an estimated 20% premium Klarna - Steady at an estimated 5% premium. The Big Picture: Companies that have recently faced downrounds yet demonstrate solid profitability scores in Launchbay are getting attention. These firms have pragmatic plans to leverage their market position for innovative revenue streams. Klarna has reported a profitable month in the second quarter ahead of target and continued growth ahead of e-commerce. 👍 Engage with a like or share if you'd like to see more insights from the market!

*The rise of secondaries in Tech* Join us in Dubai later this month for a panel discussion during #SuperReturn Middle East

#fintech state of mind