Jan Hammer’s Post

Just reading, that Index Ventures has raised $2.3bn for their new fund… (BTW Jan Hammer invested in #Adyen, which became I think his best Investment) When I read this kind of funding news, I am always wondering why the Dutch 🇳🇱 were able • to build big global banks, at least in the past (like #ABNAMRO, #ING and #Rabobank used to be) • to build big multinationals like #Shell, #Unilever, #Philips etc. • to build complex chipmakers like #ASML and even became leading in such a challenging industry. • to create new companies like #Booking or #Adyen But why were the Dutch not able to build a company like Index Ventures, despite our history of being • financiers and merchants; with a DNA of selling and buying, than producing (#Philips and its spinnoff #ASML seen as exeption to the rule?) • and despite the enormous amount of pensionfund money (#ABP, #PGGM etc.) which seems to me a #competitiveadvantage in comparison to other countries… What are the reasons for having missed this opportunity? Why were we not able to build a fund like #IndexVentures? Because of London, being the Financial center? (But Index started in Geneva) Because of regulation? And if those Dutch pensionfunds would allocate substantial amounts, like the Nationaal Groeifonds, would it still be possible to create something simular? A penny for your thoughts; Constantijn Van Oranje-Nassau, Maurice van Tilburg - Glimne 🏳️🌈 , Rinke Zonneveld, Willem Schramade Or Jan Hammer or those from the sector itself? #nlgroeit, nlgroeit #InvestNL, NLinvest #groeifonds, Nationaal Groeifonds #SuperReturn

Big news from Index Ventures! We’ve raised $2.3bn in new funds—an $800m venture fund and a $1.5 billion growth fund. Across nearly three decades of investing, this latest announcement is possible because of a strong foundation built by exceptional entrepreneurs, incredible LPs, and a team of investors, strategists, and operators all deeply committed to our craft. 108 Index-backed companies have reached a valuation of $1 billion or more, 23 have surpassed a $10 billion valuation, and 57 became publicly traded companies. I look forward to seeing what the next generation of entrepreneurs will create. I can only imagine it will be even better than what I can envision today :) https://lnkd.in/gDxiN8ig

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

Check out this article from Carta on venture deal terms featuring some quotes from yours truly.

The times are a changing ... and so are the deal terms; read more below.

🚀 Exciting News from Alpha Partners! 🚀 We're thrilled to announce that our Managing Partner, Steve Brotman, has been featured in TechCrunch's latest article discussing the growing trend of pro rata rights funds. 🎉 Maintaining your stake in a winning startup is more crucial than ever. Alpha Partners is leading the charge by helping early-stage VCs secure their pro rata rights and avoid dilution. With our new fund raising over $150 million, we're committed to empowering our partners to double down on their most promising investments. 💪 Check out the full article on TechCrunch to see how Alpha Partners and other industry leaders are changing the game for seed VCs: https://lnkd.in/etVc4vsF Stay tuned for more updates as we continue to innovate and support the venture capital community! 🌟 #VentureCapital #ProRataRights #AlphaPartners #TechCrunch #StartupInvesting #VC #Innovation #EarlyStageVC #InvestmentStrategy

When to sell? Venture capital isn’t just about picking the right horses. It’s also about helping them jump over dozens of hurdles, watching them win a bunch of races — and knowing when to stop betting on them and cash in the winnings. How exactly to do that last part is a matter of some debate among Europe’s seed funds these days. Oliver Holle, managing partner of Vienna-based seed investor Speedinvest told Amy Lewin earlier this year he wished his firm had “sold more” when up rounds were bountiful. (His portfolio includes unicorns like wefox and GoStudent.) “We’d settle on selling 20 or 30% of our shares, or say ‘Let’s make sure we at least have our money back’. In hindsight, that’s not good enough,” Holle said. How do you get more value from your investment? Follow a successful #businesstransformation recipe, focus on building disruptive #digitalbusinessmodels. #designsmarterbusiness #transformyourbiz https://lnkd.in/ekuyJsv9

"A data-driven approach enables a focus on fundamentals, limiting bias and improving fund returns. A recent Berkley study found that data-driven VCs invest in a third more women founders and are less likely to anchor on signals like university attended that, like markups, look good on paper but don’t necessarily correlate to business performance." Haley Bryant of Hustle Fund shares her perspective on the value that venture investors can extract from data, and the wider benefit to our entrepreneurial ecosystem, in "The data revolution in venture capital" ➡️ https://lnkd.in/ecXkcTvY Also featured in this article: • Dr. Abe Othman of AngelList's Early-Stage Quant Fund • Jamesin Seidel of Chapter One • Lan Xuezhao & Wilson Kyi of Basis Set • Kaushik Subramanian of EQT Ventures • Jake Kupperman of Level Ventures  • Francesco Corea, PhD of Greycroft • Jonathan Hsu of Tribe Capital • Rob Kniaz of Hoxton Ventures • Damian C. of Koble • Max Ruderman of Harmonic • Alex Chee of Termina • Andrea Wang of General Catalyst #Fundraising #VC #Startups

Investors want cash returns not "funny money" IRRs. What's HOT: DPI, or distribution to paid-in capital, which measures the return multiple on the money paid into a VC or PE fund. What NOT: Unrealized "value" in equity investments that are likely underwater if marked to market. Most VCs are lamenting that they didn't sell more of their stakes in 2020 through 2022. They are now offloading investments at steep discounts in an attempt to keep their LPs from jumping ship permanently. “We are all learning that we should have been much more diligent, had a look at hardcore revenue multiples, taken more of an investment banker mindset. We should’ve sold more.” The exit path [of selling into a subsequent round at a much higher valuation] is now “gone, pretty much” — leaving inbound or outbound M&A as the primary way for VCs to get exits. Thoughts? #VC #venturecapital #startups #innovation #technology

Speedinvest closed a fourth fund at $350 million to invest in early stage startup. In a remarkable achievement within the #VC landscape, specifically in this environment, Vienna-based #Speedinvest has successfully closed its fourth early-stage fund, Speedinvest 4, at an impressive €350 million (approximately $380 million). This accomplishment not only surpasses its initial target of €300 million ($325 million) but also highlights the firm's growing influence and commitment to fostering innovation across Europe and beyond. The final close, bolstered by €50 million from new institutional investors such as Aviva, PwC Deutschland, Bitburger Digital, ODDO BHF, and Abeille Assurances Ventures, reflects a broadening investor base. Noteworthy long-term backers like the European Investment Fund (EIF), alongside newcomers including Generali, have played a pivotal role in reaching this milestone. The fund has attracted a diverse group of supporters, ranging from government funds and banks to insurance companies, pension funds, and prominent family offices. Intriguingly, founders from Speedinvest’s portfolio companies, which include notable names like Bitpanda, GoStudent, Billie, and Yokoy, have also invested in Speedinvest 4, underscoring a robust ecosystem of mutual support and belief in the firm's vision. Speedinvest intends to utilize these funds to bolster its portfolio, supporting the global scaling efforts of early-stage startups across Europe. With investments already flowing into diverse sectors such as #fintech in France, SaaS in the UK, and deep tech in Germany, Speedinvest's influence spans a wide array of industries. The firm's total assets under management have now exceeded the €1 billion mark, establishing it as a significant player in the venture capital domain. The article on TechCrunch in the first comment. Want to stay up to date with the market? Here my newsletter: - Linkedin: https://t.ly/s541W   - Substack: https://lnkd.in/dzfGJzmW