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The doom and gloom of the VC world
The venture capital market is facing a significant downturn. Octopus Ventures recently laid off 16% of its investment team after failing to meet its fundraising target, closing at £100m instead of the £300m they aimed for. Similarly, Stride VC announced a few months earlier that they won’t be raising their next fund. These events signal serious challenges not just for European VCs but globally as well.
Limited Partners (LPs), who typically invest about 5% of their assets into the venture sector, are shifting their money into safer investments like bonds and real estate. This shift is a continuation of the VC market downturn that began in 2022, pushing down startup valuations and increasing investor expectations, especially for Series A and later-stage companies. Fundraises are smaller, and the gaps between them are longer.
It's a tough market correction. Last year, high-valuation startups were hit hard; this year, it's affecting VCs. However, early-stage startups (pre-seed/seed), especially those backed by angel investors, seem less impacted. The upcoming elections in the UK and the US might shift dynamics, but the outcomes are yet to be seen.
Despite these challenges, there are positive developments. Launchbay Capital recently announced closing a £100m fund focused on late-stage Series A investments and bridge rounds.
Interestingly, a substantial portion of the raised VC funds in the US came from a single fund. A16z (Andreessen Horowitz) accounted for 80% of all LP funding in Q1 2024, highlighting a significant concentration of investment power in a few hands.
Additionally, global PE and VC funding slowed in the first half of 2024, with a notable increase in secondary deals. This trend indicates a market adapting to new realities, seeking liquidity, and looking for exits in alternative ways.
In conclusion, even though the VC market is hitting some tough spots, this shake-up might actually be a good thing in the long run. We're likely to see better quality startups and stronger VCs coming out of this. It's like the market is doing a bit of self-care, which should lead to a healthier and more sustainable investment scene.
So, while things might be rocky now, there's some good stuff on the horizon. Keep your chin up and keep pushing!
FEATURED EVENT🔥
Rare Founders
Investor & founder conference + Demo Day (Season 1 Episode 2)
This October 14th, 2024, we’re bringing you the 2nd episode of Rare Founders Demo Day: same place, same format, all new experience. London’s Largest Demo Day is back!
Last time, we welcomed almost 800 guests throughout the day, and the feedback was wildly supportive.
So, are you going to be joining us? Grab your super-early-bird tickets here while they last! (Sale end on the 14th of July).
Founders interested in pitching, click here to hear more when applications open.
If you’re an investor, we’re looking for investor partners once again to help make this happen; click here to learn more about that and apply.
Over the next few weeks, we’ll be announcing the partners, sponsors, and more that are making all of this possible. If you want to be one of them, drop a line to [email protected]
Thanks for being a part of this journey to reshape the startup ecosystem!
In-person event
14 October 2024, Mayfair, London
MORE RARE FOUNDERS EVENTS🔥
Rare Founders
Startup Run
Bi-weekly 5k running events for anyone in the startup ecosystem, followed by networking drinks in the nearby pub. Same time same, place.
In-person event
Green Park, London, W1J 9DZ, UK
Thu 11 July, 18:00 - 22:00 BST
Rare Founders
Open mic pitching and Networking
This time, we are adding a bit of a twist to our open mic pitching and networking event. A partner from a UK-based VC will join us to share what he learned during his trip to the US and after meeting with 35 VC funds. This event is going to be super popular, so grab your ticket now.
In-person event
Blue Marlin Ibiza London, 45 Curtain Road, London, EC2A 3PT, UK
Tue 30 July, 18:00 - 23:00 BST
OTHER EVENTS❤️
FemaleInvest
Introduction to Investing w. Deborah Meaden
Join this one-off webinar with top entrepreneur and leading business figure, Deborah Meaden, who’s ready to share her top tips on investing. You don’t have to be rich or experienced to get started.
Online event
Mon 8 July, 17:30 - 18:30 BST
SeedLegals
Are down rounds the new bridge round for founders?
The current fundraising market is hugely challenging - so, what can you do if you have missed the targets you set at your last round and are struggling? Join this webinar to learn if down round is an option for you.
Online event
Tue 9 July, 12:30 - 13:30 BST
This Week in Fintech
Fintech Breakfast
Join this no-agenda event to make new Fintech friends over breakfast. Alongside incredible conversations, there will be complementary barista coffee, pastries w/Gail’s, bagels, fresh juices and fruits.
In-person event
Shoreditch area, London, UK
Tue 9 July, 8:30 - 10:30 BST
Equitas
People/ HR Tech Breakfast
Come, network, meet interesting people and share war stories, opportunities and challenges. There were founders who hired people from past breakfasts, angel investments made and partnerships leading to clients started. This event is for People/HR teach founders only.
In-person event
sYp, 19 Bevis Marks, London, EC3A 7JA, UK
Wed 10 July, 8:30-10:30 BST
AI Forge
Cohort Three Demo Day
AI Forge invites you to their third demo day showcasing their third cohort of AI founders poised to complete their Pre-Seed investment round.
In-person event
x+why, 1 Great Cumberland Pl, London, W1H 7AL, UK
Thu 11 July, 18:00 - 21:00 BST
GoodTech Ventures
Summer Founder Mixer
Join this event to mingle with like-minded visionaries, swap stories, and spark inspiration! This isn't just another networking event; it's a chance to forge meaningful relationships, explore synergies, and elevate your impact in the social tech space.
In-person event
The University of Chicago Booth, School of Business, One Bartholomew Close Barts Square, London, EC1A 7BL, UK
Thu 11 July, 16:00 - 19:00 BST
UKBAA
Introduction to Investing in Access Space – AI
Join this webinar to learn about investing in space startups and what role AI plays in the context of space.
Online event
Thu 11 July, 10:00 - 11:10 BST
SeedLegals
Improve your Investability in the eyes of investors
Join this online Masterclass on what Investability means to Investors and how to align your pitch to them in order to increase your chances of fundraising success.
Online event
Thu 11 July, 15:00 - 16:00 BST
UKBAA
Are secondary markets a pathway to Liquidity for Early-Stage Investors?
With first-time funding rounds at an all-time low, early-stage investors are increasingly seeking exits so that they can recycle capital back into the UK’s high-potential innovators. However, finding an exit to access liquidity can be challenging in today’s landscape. Join this webinar to learn what liquid secondary markets are and how they work.
Online event
Fri 12 July, 11:00 - 12:00 BST
PARTNER OPPORTUNITIES❤️
invntz
“Champions of the Earth” Hackathon - Applications are open now!
THEY ARE RECRUITING FOR 100+ INDIVIDUALS TO JOIN ONE OF (4) CLIMATE-TECH CHALLENGE GROUPS.
AI + Search + Ecommerce Team
AI + Resale & Product Digitisation Team
AI + Sustainability + Decarbonisation Impact Team
Go-to-Market + On-Boarding + Launch Team
Applications close: Friday 19th July
Jumpstart
The BIG Startup 5K
Ever heard of the JP Morgan 5K? Well, our friends at Jumpstart thought it was about time startups gave the big corporates a ‘run’ for their money.
So, on the 6th of August, Jumpstart is planning on pulling off the ultimate startup 5K, aiming to bring together 1000 people from the startup ecosystem to Battersea Park for a 5K fun-run + plenty of post-run fun.
Use the code "RAREFOUNDERS20" at checkout for 20% off!
Intercom for Startups
Join Intercom’s Early Stage Program to receive a 90% discount.
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Vasily Alekseenko Rare Founders
Rare Founders - building the bridge between founders and investors via regular in-person and online events, meetups, conferences.
