🕶️ Boutique VCs: the future of investing?

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Happy Tuesday!

Discover OpenAI's new flagship model, learn why Indian startups are moving back from the US, and explore how European VCs are increasingly relying on government funds 💸 😲

Plus, get insights into how emerging VCs are planning to survive in a -very - competitive landscape 🥊

Don't miss our webinar on 'Budgeting a Startup Funding Round'—we hope you’ll find it handy 🧮 😎

Enjoy your reading! 👇

Six bullets of updates

  1. 🗣️ OpenAI’s GPT-4o reasons using texts, speech, and video. It is enhanced performing in around 50 languages.

  2. 🏡 Groww becomes part of the initial wave of Indian startups relocating their headquarters from the US back to their home country.

  3.  📈 In 2023, European venture capitalists are growing dependent on government funding sources.

  4. 🏎️ Although electric vehicle demand may be showing signs of weakening, investors seem enthusiastic about introducing a Chinese luxury EV brand.  

  5. 🤓 Exploring Bill Gates' European startup portfolio reveals his diverse investment interests.

  6. 🤳 Instagram broadens its creator marketplace's reach by introducing it to 10 additional countries.

In a tough competition, VCs are rewarding innovation

Emerging Venture Capital (VC) funds must get creative and elegant as the field becomes increasingly crowded and competitive. According to PitchBook, smaller VC funds are fighting for just 16% of all the capital that limited partner investors will allocate to venture capital.

This competitive landscape has forced some firms to reduce their fund targets, secure partnerships with larger multi-stage firms, or risk missing out on business opportunities. Newer funds specialize in specific industries, offering expertise and innovation that larger firms may lack.

That said, not all emerging funds will survive. Natural selection is expected, with those possessing "staying power" strengthening due to reduced competition. This will make these emerging managers even more valuable to larger firms seeking to write more extensive checks in later stages.

The world of VC is undoubtedly not for the faint-hearted, but for those with the right mix of determination, innovation, and the ability to spot the next big thing, the rewards could be monumental.

Startup Events and Deadlines

  1. Beloved Tech Brands: San Francisco | May 15 | San Francisco 

  2. Financial Modeling Course | May 20 - 24 | Bootcamp

  3. Propel24 | May 21 | Conference

  4. How to close a Funding Round (it’s not just the pitch deck) | June 4 | Webinar

  5. SaaStr Europa (London) | June 6 | Conference

Invest before this company becomes a household name

What if you had the opportunity to invest in the biggest electronics products before they launched into big box retail, would you?

Ring changed doorbells and Nest changed thermostats. Early investors in these companies earned massive returns, but the opportunity to invest was limited to a select, wealthy few. Not anymore. RYSE has just launched in 100+ Best Buy stores, and you're in luck — you can still invest at only $1.50/share before their name becomes known nationwide.

They have patented the only mass market shade automation device, and their exclusive deal with Best Buy resembles that which led Ring and Nest to their billion-dollar buyouts.

These companies just raised money

  1. 🇮🇳 Raising $275M, Meesho, an Indian social commerce platform boasting 150M transacting users, advances its growth trajectory.

  2. 🏦 Monzo, the UK challenger bank, secures an additional $190M as it eyes expansion into the US market.

  3. 💂‍♀️ London's Fintech Farm secures $32M to help banks in emerging markets build digital tools; the next stop is India!

  4. 🍲 Pepper, a B2B food e-commerce startup, secures $30M in funding led by ICONIQ Growth amidst its robust growth.

  5. 🍃 Following a $20M Series A funding round, Insempra, a German company, intends to develop eco-friendly lipid production methods.

  6. ☁️ Analyzing Cloudsmith's $15M Series A pitch deck offers insights into its strategic approach.

April wasn't a good month for European startups

Early-stage startups in Europe faced a significant drop in fundraising. That month, the numbers stood at €1.4 billion spread across 312 pre-seed, seed, and Series A rounds. This represents a decline compared to March when €1.5 billion was spent across 381 rounds.

In this scenario, the UK remained at the top, attracting €314M, down from March's €470M. France and Germany followed on the list, with funding inflows of €272M (down from €301M) and €211M (up from €148M), respectively.

Among sectors, the boost in Healthtech is particularly notable, especially in drug discovery and biotechnology. Will May be a better month? For those interested in delving deeper, we recommend Sifted's analysis on the topic.

Investor Data Room Checklist

An investor data room is a storage space, digital or physical, where companies store information relevant to due diligence. We've compiled a FREE Template/Checklist of all the items your data room should include and resources and tools for obtaining them. 

Budgeting a Startup Funding Round

Watch or rewatch this webinar designed to revolutionize your financial modeling skills. In the video, Caya shares the secrets of driver-based modeling so you can elevate your business's financial strategy to new heights. 😎 Subscribe for more!