Daniel Nikic’s Post

Vsquared VC: New Fund II Raised💰 Vsquared Ventures has successfully closed its Fund II at €214m to invest in early-stage deeptech startups across Europe. The fund significantly exceeded its initial target of €165m, reflecting the growing momentum and understanding of deeptech's importance in Europe. Founding partner Thomas Oehl attributes this success to the increasing recognition of deeptech's potential.🌟 The fund will invest between €500k and €5m in approximately 25 companies, reserving two-thirds of the fund for follow-on investments. The portfolio already includes notable startups: cylib, Synthara AG, and NEURA Robotics.🤖 🔎The new fund will focus on six key themes: AI and next-gen software, energy transition, new computing and sensing, space, tech bio, and robotics and manufacturing. Oehl emphasizes that Vsquared aims to be the first institutional investor in these deeptech startups, positioning itself as a leading supporter of innovative technologies.🦸♂️ Vsquared's latest fund is primarily backed by European LPs, including Novo Holdings, the NATO Innovation Fund (NIF), the Export and Investment Fund of Denmark, the European Investment Fund (EIF), and Germany’s KfW Capital . This deliberate choice showcases Vsquared as a pan-European fund. The fund also includes founders as LPs, such as Simon Bolz of Klara, and Dr. Oliver Trinchera and Dr. Alexander Huettenbrink, co-founders of KINEXON.💵 GP Lise Rechsteiner, PhD notes a significant shift in the perception of deeptech investments over the past few years. "Two or three years ago, you had to explain a lot why you were doing deeptech investments, and that has completely changed. There is no question around that anymore," she says. Rechsteiner emphasizes that Europe's strength in deeptech is underpinned by its high-quality universities, scientific research, and graduate talent. Rechsteiner highlights several emerging deeptech hubs outside the traditional powerhouses of Munich, London, Paris, and Stockholm. She sees Vilnius as strong in cybersecurity and tech bio, and Copenhagen emerging as a hub for quantum and biomanufacturing.🏦 Despite the immense opportunity for Europe to build deeptech champions, Rechsteiner points out challenges such as fragmentation in the European IPO market. Unlike the centralized Nasdaq in the US, Europe's decentralized IPO markets create a fragmented investor base, making it difficult for not-yet-profitable companies. "Getting rid of hurdles and trying to really see Europe as a united region would be amazing," Rechsteiner concludes. 🌍✨ ✅ Looking to raise capital for your #VCfund and increase the international pool of your LPs?   🤝 Need warm #LP introductions?   📝 Selling #secondaries to increase liquidity?   🧐 Looking for co-investments (Series A/Series B)?   ▶G+QUANT's link for inquiries and fund decks: https://lnkd.in/gjC_EuTE   #Deeptech #VentureCapital #EuropeanInnovation #Startups #TechInvesting

Slightly late this week due to #SXSW but just in time as a spicy weekend brunch read. 🥂 Picking up from where we left off last week, #DeepTech has become increasingly popular for venture capital funding. When faced with these new exciting opportunities, are VCs equipped to tell what’s science from science fiction? This week’s “Science Fair” digs into the science-savviness of the most science-y of them all, Deep Tech VCs. Let’s just say even I was surprised 😶 Read more here: https://lnkd.in/dmgSdeZ2 (If you like content like this, please subscribe to our free newsletter directly & follow Skeleton Key on LinkedIn!) #VentureCapital #ScienceTech #startups #deeptechstartups

Co-investing is something we do a lot. There are a few reasons for this strategy, which we've outlined in this article: https://lnkd.in/dcxQ2YfE, but just quickly: ▪ for the deep tech company we're investing in - co-investment not only gives them access to capital but also a broader set of skills, experience and global networks. This collective expertise can be invaluable in guiding the company's strategy, connecting it to industry leaders, and overcoming technical challenges. ▪ for us it co-investing with other specialist VC firms helps to reduce the inherent risks associated with deep tech investments but also increases our visibility and access to the stream of opportunities. This is particularly exciting because an ever-growing number of scientific and engineering innovations are emerging from both laboratories and garage-based ventures that are capable of solving some very complex societal issues. #deeptech #venturecapital #startup

Just published a deep dive exploring the “tidal waves” sweeping over the VC landscape. I examine how various macro trends + rapid advancements in AI are reshaping the venture & startup ecosystem, which include: 1) The impact of increasing fund sizes on returns (and why a $500M fund might need to generate $17.5B in exit value to 3X). 2) Novel strategies in which data science and AI can be applied in the VC investment process. 3) How VC, traditionally a “cottage industry”, is becoming more high-frequency I also share some predictions on where the industry might be headed: 1) How Solo GPs and smaller/nimbler firms could harness AI to rival much larger investment platforms. 2) The transformation of VC into a more traditional asset class (but with a twist!) 3) The potential re-emergence of ‘calm funds’ in a world of capital-efficient, AI-native startups 4) The changing role of CVCs and cloud hyperscalers in startup investing, and why massive funding rounds in foundation model startups probably won’t continue Check it out below!

My cofounder and I frequently speculate about how tech trends impact various industries. His impromptu analysis yielded some interesting results and thought experiments on changes that might occur in venture capital. Check out his latest article below.

At Bank of America’s recent Triangle Innovation Summit, Intel Capital’s Mark Rostick spoke with QHP Capital’s Michael Sorensen and Triangle Tweener Fund’s 🐧 Scot Wingo about how investor priorities and goals have changed in a post-pandemic environment. Mark shared investors are looking for startups that embody efficiency and resiliency, and that the U.S. venture capital ecosystem has the unique ability to “reinvent itself” after a downturn.  Read more of his insights from the panel here: https://bit.ly/47dIYnw #Startups #VentureCapital #Innovation

How did the global decline in quantum investments impact European startups? Many sources highlight a significant decrease in venture capital flowing into quantum startups, representing a 50% decrease globally. This decline can be attributed to the overall reduction in venture funding observed in 2023, especially within the tech sector. Additionally, the rise of other fields, such as AI, has captured investors' attention, potentially channeling funds away from the quantum sector, which still awaits practical applications. The most substantial decline occurred in the United States, where investment numbers plummeted by approximately 80%. But what is the situation in Europe? Our data indicates a decrease in investment numbers across the quarters of 2022 and 2023 - from 270$ mln to 157$ mln. Nevertheless, the disparity is not as striking as in the US. What made Europe's quantum investment stage so much more resilient? One explanation could be Europe's cultivation of a collaborative culture among its quantum stakeholders, linking researchers, entrepreneurs, investors, policymakers, and end-users. Platforms and networks, such as the European Quantum Industry Consortium (QuIC), facilitate knowledge exchange, resource sharing, and the dissemination of best practices within the quantum community. It's important to note that funding rounds rarely progress linearly and do not adhere to arbitrary financial timelines; they often occur in clusters. Consequently, comparing two random quarters from different years may not accurately reflect ongoing trends or predict future investment patterns. What are your insights or observations on Europe's favorable investment climate in the quantum sector? Within the Qu-Test and Qu-Pilot projects, we are diligently tracking all global investments and deals in the quantum technology sector. Our goal is to regularly share updates, so stay tuned for more valuable insights to quantum founders, investors, and professionals alike. Keep an eye on further insights! AMIRES Institut d'Optique Graduate School Sonnenberg Harrison Partnerschaft mbB TNO VTT Rudolf Fryček Robert Harrison Audrey Durand Roman Pašek Mika Prunnila Clara I. Osorio Tamayo Gabriele Bulgarini Weronika Słomińska

🌟FCF DeepTech – Insight of the Month🌟   Venture Capital DeepTech Activity Comparison Europe vs. US 2021-2023:  📊 Deal activity in US and EU developed in parallel in 2021 with US showing the first signs of a downturn in 2022 and both geographies seeing a significant drop of deal activity in 2023    🌍 In Europe in ‘21 and ‘22, deal count figures developed on the same level across the year with the total number of closed transactions and total deal volume changing only slightly between both years (-1.2% and -0.3%, respectively). However, the current year ‘23 shows a clear downturn in both terms (-37% to 4,275 deals and -34% to €25.7bn volume vs. ’21*).   🌎In the US both deal count and deal volume declined subsequently across 2021 to 2023. Total deal count dropped from 8,757 to 7,963 in ’22 (-9.1%) to 6,015 in ’23 (-32% vs. ’21*). Funding volume raised went down from €117.4bn to €90.4bn in ’22 (-23%) to €77.4bn in’23 (-34% vs. ’21*).    ❄️ This indicates that the VC winter was already present in 2022 in the US and continued in 2023, whereas Europe was affected by the VC plunge in 2023 only. However, in relative terms both regions were impacted similarly by the VC winter when comparing ’23 vs. ’21 yearly figures (EU vs. US – deal count: -37% vs. -32% – deal volume: -34% vs. -34%*).   📈 Since ’21, the Top 3 most active investors in Europe were Innovate UK (467), Plug and Play Europe (332), and European Innovation Council and SMEs Executive Agency (EISMEA) (293). The Top 3 ranking of the most active investors in the US comprises Y Combinator (674), National Science Foundation (NSF) Foundation (621), and Plug and Play Tech Center (544).    🔗 To receive more information about FCF DeepTech, pls. follow the link in the first comment.   (*2023 figures comprise data from 1st Jan to 15th Dec. Changes until year end to be expected to diminish declines compared to previous years)   #fcffoxcorporatefinance #financingspecialist #corporatefinance #deeptech #vc #capital #vcinvestor #VentureCapital #dach #dachinvestor #investments #EU #Eufinancing #Europeaninvestor  

Congratulations to the following quantum or quantum-related companies for securing funding in November 2023: 👉 Oxford Quantum Circuits (OQC) raised $100 million in its Series B funding round, with SBI Investment leading the round, supported by investors - Oxford Science Enterprises (OSE), UTEC - The University of Tokyo Edge Capital Partners (UTEC), and Lansdowne Partners. 👉 Photonic Inc. raised an investment round of $100 million from British Columbia Investment Management Corporation (BCI), Microsoft Corporation, the UK government’s National Security Strategic Investment Fund (NSSIF), Inovia Capital, and Amadeus Capital Partners. The funding will be put towards the continual development of scalable, fault-tolerant, and unified quantum computers and networking platforms based on photonically linked silicon spin qubits. 👉 Quandela raised $53.5 million in a Series B funding round to manufacture photonic quantum computers and sell them to industrial customers. The funding was a mix of equity and debt, co-led by French VC Serena, Crédit Mutuel Innovation, and the European Innovation Council (EIC), with the support of the French government through the France 2030 Plan. 👉 QuantumDiamonds raised $8.8 million in seed funding. The funding round was led by venture capital firms IQ Capital and Earlybird Venture Capital, with additional investment from other firms and angel investors. The funding will be used to scale up the company's commercialization and expand its quantum engineering team. 👉 Nu Quantum secured $8.5 million in a pre-series A funding round led by Amadeus Capital Partners and IQ Capital. The round also saw participation from existing investors Ahren Innovation Capital, Seraphim Capital, University of Cambridge, and Martlet Capital, as well as new investors Presidio Ventures backed by Sumitomo Corporation, the National Security Strategic Investment Fund (NSSIF), and Deeptech Labs. This funding will enable accelerated product rollout and expand partnerships. 👉 Entropica Labs raised $4.7 million in a Series A funding round led by Italian Deep Tech venture capital firm LIFTT and existing investor Wavemaker Partners. The round also saw participation from SEEDS Capital, the investment arm of Enterprise Singapore, California-based CerraCap Ventures, Singapore University of Technology and Design (SUTD) Venture Holdings, and previous seed investors, Elev8.vc. 👉 QSimulate closed a $2.5 million financing round to boost businesses in Europe and Asia. The round was led by quantum technology investment firm 2xN, along with UTokyo Innovation Platform Co., Ltd. and Kyoto University Innovation Capital Co., Ltd. The investment supports QSimulate's mission of revolutionizing drug design and material science using quantum simulations. ✅ Quantum or quantum-related companies raised at least $278 million in venture capital during the month of November. 💻 All data sourced from our intelligence platform. Sign up now at: https://lnkd.in/edAasKi2

Defying the downturn: Discover the sectors thriving amidst a VC slump! A review of venture capital activity in 2023 reveals that in the midst of a more general slump, generative AI and cleantech sectors have demonstrated robust growth. It serves as a reminder that adversity often breeds innovation and resilience. Entrepreneurs who have the foresight and bravery to navigate through challenging economic climates often find themselves emerging stronger, having identified and seized upon opportunities that may not be as apparent during boom periods. This transitional period could very well be a prime time for entrepreneurs to build and consolidate their ventures. For an in-depth exploration of this theme, I recommend reading the following article on Silicon Angle. #investment #innovation #ai #cleantech https://lnkd.in/e4sNT-pM