Michal Benedykcinski

Big things on the horizon, we are motivated and blessed to be at the dawn of a new age for the internet. Read more about our journey below or listen to the podcast: https://lnkd.in/eJeNhvVa

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Interesting data and good work from Carta in their inaugural VC fund performance report analyzing benchmarks for more than 1800 funds across six recent vintages - https://lnkd.in/e5R_dhXp Take a look at the pace of investments. As expected, capital deployment has slowed since the 2020 peak, with 2022 funds only using 43% of their capital after 24 months, down from 60% in 2020. This trend seems broadly consistent across private company and fund investing, with GPs and their LPs being more cautious and selective with capital allocation. Raising capital is tough today. Full stop. It's easy to focus on that, but I'd encourage us all to instead consider and focus on what is less talked about - that this cautious approach has created a large amount of available capital aka "dry powder," dedicated and ready to support special founders. The best founders are aware of private market dynamics, which impact the time needed to raise rounds and the milestones they must hit to successfully do that, but their primary focus is always the mission and the customers they serve. They are committed to building products to solve their customers' problems regardless of what us investors think. Building generational companies is never easy, but many have been and will continue to be built in tough markets. I try to take a similar approach in supporting founders. That doesn't mean ignoring market conditions, which can greatly impact my investment decisions and outcomes, but like focused founders, I know it makes more sense to dedicate my limited daily energy to what I can control. That means finding and supporting founders who are transforming or creating markets and doing everything I can to help them win, no matter what the market is doing. I hope to collaborate with many doing the same. Have a great week and see you out there! Note: These thoughts and opinions are solely mine and and mine alone. They do not reflect and are not associated with any company I am part of.

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Breaking news 🚀 $2B+ AUM! On May 21, 2024, we launched the Venture Investment Committee at Techosystem, and I am thrilled to announce that I was elected its Head! Thank you to all the members who entrusted me with this role. We collectively manage over $2B+ in assets! Interested in UA tech or want to join us? Don't hesitate to DM me! 🙌 The committee was initiated by the following members 🫶🏻: ⭐️ Investment funds: BRISE Capital, Flyer One Ventures, Geek Ventures, Horizon Capital, SID Venture Partners, Sigma Software Labs, SMOK Ventures, SMRK VC, UVentures, ZAS Ventures; ⭐️ Accelerators and incubators: CfE Accelerator UCU, Mission Possible, Startup Wise Guys, Vacuum Deep Tech Acceleration, YEP Accelerator, Innovation Hub of Zhytomyr Polytechnics; ⭐️ Physical persons: Yaroslav Krempovych, Yaroslav Yakovenko; ⭐️ Other companies: Kooperativ, Molfar. 📌 The Committee's mission is to enhance venture capital investment in Ukraine. Emerging from a dedicated working group, we have developed an investor database, conducted market research, launched an equity crowdfunding platform, and implemented a matching grants tool. We are also focused on raising awareness among venture capital stakeholders by creating programs to train angel investors. Looking forward to driving growth and innovation together!

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"Small funds may have more incentive to produce higher returns The alignment of incentives between GP and LP varies drastically based on fund size. Managers of smaller funds who have invested substantial personal capital demonstrate an unwavering commitment to lucrative returns, while managers at the helm of colossal funds, buoyed by significant management fees, may exhibit a diminishing drive. This constitutes an almost incontrovertible structural benefit of managing a small VC fund. Furthermore, fund managers of established funds may, over time, raise larger subsequent funds and grow more risk averse. This can present a sub-optimal outcome for their LPs and, by virtue, manifests a bad omen for VC investing." https://lnkd.in/gHKgea4e

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Markets talk. We listen. We've from heard from capital allocators (#VC, #PrivateEquity, #FamilyOffices....even #VentureStudios, #Incubators and #Accelerators) that due diligence is a bottleneck to deal flow. It's time-consuming, expensive and often, subjective. We've launched #VentureIQ by the 9point8 Collective to directly address this problem. VentureIQ is an AI-enabled diligence solution that provides rapid scale diligence reports with exceptional fidelity and demonstrable cost efficiency - all within a single business day. We're in our soft launch, now. So, if you want to gain back valuable time and expose the long tail of deal flow diligence, shoot me a DM or visit VentureIQ.ai.

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⛳ Emerging fund managers pulse check. PitchBook tracks over 10,000 funds that are raising money, with 45% being emerging fund managers (defined as firms with less than 3 funds). Despite a dip in available capital—down to 16% from the pre-pandemic 23%—these managers are finding creative ways to stay competitive, like partnering with larger firms. 💼 Joanna Drake (founder turned investor) shared how "wildly different" it is raising a fund versus for a startup. One key datapoint she shared on the fund side was how little feedback you get along the way (and the years you can wait for it). The “long-winded and challenging process to raise capital” inspired Drake and Ben Black to create RAISE Global, a community for emerging fund managers and the “forward-thinking LPs” who back them. (A decade later, several hundred emerging managers with AUM under $200m are on the platform) They've found the newest emerging managers are more diverse and geographically dispersed than Silicon valley, and more were able to crack the ceiling and raise larger $100m funds (although this is still a small % of the market, requiring partnership with larger funds at the late stage). ▶ And not a hugely surprising datapoint: A lot of action is in the sub $49 million range, where roughly 50% of emerging managers are raising. Theresa Sorrentino Hajer, Head of U.S. venture capital research at Cambridge Associates warns that past success isn't actually a strong indicator on it's own to assess emerging managers. We've had a valuation reset. And newer managers with investments during the 2019-2021 "party days", need to build relevant track record and play to their strengths. A lot of emerging managers are specializing (70% who applied for Raise had a thematic focus), and betting on getting in as early as possible in the startup's lifecycle (Raise: 31% at accelerator/ pre-seed stages, and 47% at seed stage). “Emerging managers have to compete on a different dimension,” Nick Moran from New Stack Ventures. You're no longer just dealing with capital. Emerging VC's need to be as innovative and nimble as the startups they invest in, having a unique thesis and insights. They also play a role at the top of the deal-flow funnel: helping larger firms find promising companies, so finding a thesis, sector or philosophy aligned partner at a larger firm is helpful. Onwards! #EmergingManager #Startups #VC

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https://lnkd.in/eZHyRyup Era Ventures, a NYC-based venture capital firm focused on investing in a broad range of business model innovations to catalyze positive change in the built world, launched its inaugural $88m fund. LPs include one of the country’s leading Ivy League Endowments, ICG Advisors, New York Presbyterian Hospital, The Ashforth Company, BentallGreenOak (BGO), Continental General Insurance Company (CGIC), Pelwood Holdings, First American, Bain Capital Ventures, Fenwick & West LLP, and others. Founded by industry veteran Managing Partner Clelia Warburg Peters, and also led by Partner Raja Ghawi, Era Ventures will deploy capital across multiple stages and a full spectrum of sector-focused innovations, from enablement technologies that improve existing processes to disruptive platforms that reshape the industry. The firm has identified seven core business models driving change, including but not limited to SaaS and AI, marketplaces, embedded fintech, and hardtech ventures leveraging new technologies to optimize physical assets, and will actively invest across all of these categories. Fund I has already backed founders across multiple stages: Marketplaces and tech-enabled services: Honey Homes, a digital handyman subscription service provider. Latii, a cross-border construction-materials marketplace. Welcome Homes, a platform to manage and build custom homes online. Ostrich, a next-generation real estate listing service in the UK. Fintech: Shepherd, an embedded insurance platform designed for the construction industry. Truehold, a single-family rental company that combines home sales and rental leases. Homeward, an embedded financial platform powering residential real estate transactions. Hardtech: PassiveLogic, an AI-enabled platform for autonomous buildings. ViaBot, a Robotics-as-a-Service facility management platform. Vertical AI and SaaS:  Indigo, an AI-powered platform to facilitate residential real estate transactions. Peters has been a leading investor in the PropTech space since its early days — first as a co-founder of MetaProp, one of the original, strategically backed PropTech funds, and then as a Venture Partner at Bain Capital Ventures, a generalist venture firm.

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I had an interesting chat with Yuke Xie from the South China Morning Post SCMP recently on the evolving investment strategies of Middle Eastern institutions and family offices.    Traditionally centered on the US and Europe, these investors and institutions are now turning their attention to the dynamic economies of #SoutheastAsia.    Looking forward, I foresee Southeast Asia maturing significantly as an investment hub, driven by its vibrant entrepreneurial ecosystem and fast-growing middle class. I believe Southeast Asia could well become a third pillar of international diversification for Middle Eastern investment, and #healthcare could potentially be a focal point.    Exciting times lie ahead for our SEA team of investment professional & operators, and we are currently raising a Southeast Asia-focused healthcare growth capital fund to capitalize on this growth.   Read more about it in the following link:

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Space tech-focused investment firm Seraphim Space Space launched its second VC fund, SSV II, to back early-stage startups in the global space tech market. The fund aims to build a portfolio of 30 startups, investing in seed and Series A stages. The latest fund's target size is larger than its predecessor's, which closed at £70M ($90M) in 2017. The fund's investment themes include AI applications for space data, in-orbit computing, space-enabled communications, and microgravity for science. Eutelsat is one of the limited partners that contributed to the latest fund. Seraphim Space aims to stand out with its track record, having returned three times the original investment from its first fund. The first fund's returns were driven by five exits, including Siemens' acquisition of UltraSOC and four IPOs of Arqit, AST SpaceMobile, Nightingale, and Spire Global. The British firm listed its growth fund Seraphim Space Investment Trust (SSIT) on the London Stock Exchange in July 2021, getting about £250M (~$300M) in gross proceeds. The fund's market cap touched an all-time low of £130M ($162M) in July 2023. The market for space tech is expected to grow significantly, with the World Economic Forum and McKinsey estimating it could be worth $1.8R by 2035.

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The recently published Institutional Investor Digital Asset Study from Fidelity Investments certainly has some eye opening stats to browse through. Cudos to the team for a clear and concise overview. What stuck out most was the top reason investors cited for their change of view on the space... 💡 increased understanding 💡 This is still a new asset class, demonstrably so in the United States where acceptance has been slow. Increased education and understanding is paramount. Anyone with questions, reach out, always happy to answer incoming messages. Some other interesting tidbits: 1) Price volatility remains one of the largest barriers to entry [more thoughts to share here but at a later date...] 2) 30% of respondents saw digital assets as their own, unique asset class [interesting, what is your allocation to it?] 3) US investors remain the least accepting of digital assets [I think this really goes back to the first point of the post, increased understanding and truly think the tide is turning] If you are curious about the space, here to help through it. As someone who spent a decade working with fintechs and financial companies I get the skepticism. As an investor however, skate to where the puck is going, not where it has been the past twenty years #digitalassets #crypto #blockchain Full Survey (link below) https://lnkd.in/g7h2_Bq8

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Really enjoyed my conversation with Johnny Wu on the AAAIM High Emerging Leaders in Investment podcast. AAAIM is doing so much important work in highlighting the disparity and challenges Asian Americans face in the finance and investing world. Being an emerging fund manager, I am seeing it firsthand myself now. Their studies have found substantial AAPI underrepresentation at the ownership level – only 2.4% of firms, 1.8% of funds, and .3% of AUM in the US are AAPI-owned. When looking at AAPI women in particular, a staggeringly low .01% of US AUM is managed by AAPI women. This is all despite the fact that AAPI-owned funds outperform non-AAPI-owned funds across most asset classes on a capital-weighted average basis. Nearly half of AAPI-owned PE funds appear in the top performance quartile; over 50% of AAPI-owned VC funds achieve top quartile performance as well. AAPI-owned hedge funds yield monthly returns of .50%, significantly outpacing the .19% monthly returns of their non-AAPI-owned counterparts. I look forward to meeting other Asian American investment managers at AAAIM Elevate next week in Los Angeles to discuss these challenges and how we can overcome them as a community.

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This morning Counterpart Ventures and SVB released the 2024 State of CVC benchmarking report in parallel with our #Counter V conference, the premier CVC gathering around. Thanks to Allie Garfinkle for the shout-out Fortune #TermSheet. Love the headline ;) This is the 4th year we published this unique report with our friends from SVB. Big themes over the years below:   2021 report: Debunks several classic myths about CVC.  2022 report: CVCs demonstrate resilience in a volatile market. 2023 report: Sobering outlook as CVC investment pace tightens. But moves in lockstep with traditional VC track (market contraction) 2024 report: Enhanced scrutiny and parental (HQ) oversight of CVCs. "Hey Parents, Leave those CVCs Alone!" While CVC autonomy and latitude to invest more like a traditional VC must be earned, we believe the right structure and executive sponsorship sets up a CVC for success. Thank you to the SVB team who cranks with us behind the scenes to make this report happen: Mark Gallagher, Charlie Walker, Eli Oftedal, Jake Ledbetter, CFA, Anjalika Komatireddy Counterpart team co-authors: Mikey Kailis and Abbie Wolf. cc: Joe Saijo and Tanvi Narain https://lnkd.in/giMmxgkC

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🚨 Important Update for the VC Community! 🚨 The SEC just made a significant move that could redefine the venture capital landscape, particularly for smaller firms. 💥 Here's what you need to know: 1. Asset Threshold Raised: The SEC has increased the asset threshold from $10 million to $12 million. This change means that more venture capital firms can now operate without the need for heavy regulatory registration. It’s a substantial relief for smaller and emerging VCs, allowing them to focus more on what matters—investing in the next big idea. 2. Implications for Emerging Managers: This regulatory shift is a huge win for emerging managers. By easing compliance burdens, it opens the door for more diverse and innovative investors to enter the market. This diversity in capital sources is crucial for fostering a more dynamic and inclusive startup ecosystem. 3. Benefits for Early-Stage Startups: With more VCs able to participate without stringent regulatory hurdles, early-stage startups stand to benefit. Increased access to capital means more opportunities for innovative ideas to get the funding they need to scale. This could be a pivotal moment for entrepreneurs looking to make their mark. 4. Long-Term Impact: This adjustment by the SEC could lead to a new wave of entrepreneurial success. By lowering barriers and widening access, we might see a surge in groundbreaking innovations, with more startups getting the support they need to thrive. #VentureCapital #Entrepreneurship #Startups #Innovation #InvestmentStrategy #EmergingManagers #RegulatoryChanges #SEC #CapitalRaising #TechNews #SmallBusiness #StartupFunding #VCTrends #FinancialRegulation #InclusiveInvesting #TechCrunch

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Risk, Investing & Texas Hold'em Poker Great WSJ article - https://lnkd.in/eysPGr-x Insights from playing Texas Hold'em as a trader or investor (i.e. to be clear, this is not about gambling but about playing and learning): - Thinking in probabilities: learn to think in probabilistic terms, continuously updating your view based on new information - Decision-making: poker enhances your ability to think clearly and make quick decisions, even when the outcome is uncertain - Calculated risk-taking: learn to assess probabilities and make decisions with incomplete information #finance #risk #poker #pe #privateequity #business #ceo

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Juniper Square recently released their look back at the state of venture in Q2 2024, and the data is interesting. 👉 The liquidity drought continues to stifle fundraising, with $37.4B committed to 255 funds YTD. 👉 In the current climate, established managers are securing 77% of fund value YTD, the highest concentration in the last decade.  👉 Over 63% of capital raised in 2024 so far is in funds of $500M+, the second-highest percentage in the last decade. 👉 Q2 reflects an uptick in US venture deal momentum, with quarterly deal count climbing to the highest level since Q2 2022. 👉 Q2 data shows a third consecutive upward quarter in both exit value and the total number of exits.  👉 Q2 hit a 9-quarter high in total number of exits, and the total exit value recorded was the second-best quarter since Q1 2022. The data shows that the landscape is especially competitive for emerging managers. When it comes to generating returns though, a fresh perspective can help find the most interesting deals. I wrote a bit about this last week, if you’re curious to dig into stats on unicorns at the seed stage, and the funds they’re raising from. You can check out the full report from Juniper Square here: https://lnkd.in/eN6VnY-k #emergingmanagers #stateofvc

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PE - Hedge Funds Hit by Lack of PE Exits (and one way that PE firms can boost exits) Financial Times: https://lnkd.in/edACss_X FYI - one way to get more PE exits is for the PE fund to have a domain expertise GTM and have deep knowledge on how to increase the Revenue Growth of portfolio companies which boosts cash, profits and margins. --- #pe #privateequity #business

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Seed VCs are turning to new ‘pro rata’ funds that help them compete with the big firms Alpha Partners, SignalRank and now SaaS Ventures help seed VCs pay for shares when big VCs try to price — or push — them out Lee Edwards, partner at Root VC, has a saying at his firm that “pro rata rights are earned, not given.” That may be a bit of a stretch since pro rata refers to a term that VCs put in their term sheets that gives them the right to buy more shares in a portfolio company during consequent funding rounds to maintain an ownership percentage and avoid dilution. Still, while these rights are not exactly “earned,” they can be expensive. One of the latest trends in VC investing these days are funds dedicated to helping seed VCs exercise their pro rata rights. https://lnkd.in/dRM3RvdA By Christine Hall

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Series A or B wondering when to bring in a VP of Finance or CFO? It’s a crucial decision that can shape the future of your company. At this stage, financial leadership is not just about managing numbers but also scaling processes, securing funding, and driving strategic growth. My colleague Paul breaks down key signs that it’s time to hire and indicators for choosing between VP of Finance and a CFO #FinanceLeadership #CFO #StartupGrowth #SeriesA #SeriesB #NextGenLeadership

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