Investors in limbo, US vs EU in open banking, marketplaces strategy and all about Corona.
#23
This is the 23rd edition of Sunday CET, a weekly curation of what we found interesting in the European investment tech landscape.
Writing this from NYC, just returned from a one week spent in the Bay Area.
The past days have evolved dramatically on the investment ecosystem from here as the Coronavirus started to be taken more seriously across the ocean and put almost everything in limbo.
Most investors canceled their trips and started to get meetings online only - but, in spite of what they claim as being business as (un)usual, it is mostly related to deals already sourced and/or existing in the pipeline. No fresh meat, just minimum exposure, obsessive peer talking and twitter checking. It is all about the social distance and staying up to date.
The investment business is about real meetings and building relationships and this process is on hold now until we get to a market status quo and predictibility.
And even though there is a lot of money to be deployed, it will take a while until things will resume to normal as they will get much worse before it will get better.
Probably we will reach to a new normal - if you put away the Twitter/social media chatter (VCs usually are different than what they say and pose online like) and talk to the real people, it is very likely that the way business is done will change and this is just the start of it.
The fundamentals like supply and demand are not that much changed since the end of last year, uncertainty and unexpected developments are what matters.
And, especially since a lot of governmental involvement ($, policy etc) will be in play, a better case scenario looks like a rather short-term situation which will rebound as soon as things get under control.
A worse case scenario, based on modelling or on early evidence of what is happening today in Italy and Spain, indicates that we’re looking to a crisis of enormous proportions.
There are many unknowns and collateral effects and, more importantly, it is way too early to anticipate and plan, situation is pretty much fluid on day-to-day basis.
On the other side, founders already see their revenues affected, both in b2b and in b2c, with a few notable exceptions - video tools, voice and gesture-based software, health sensors/software/businesses etc.
There are already layoffs, uncertainty and an unstable global macro situation. Companies dependent on consumer spending are more affected - they will lose money as consumer attention is already elsewhere. This also applies to second degree players - i.e. b2b2c.
Not least important, if we’re to look for an upside, this is a a very good opportunity for a builder to keep her head down and focus on what is important, as times like these are the best to develop a new company. There’s also a strong case for a spike in the natality rate. And the divorce one too. :D
More money in the market
🇳🇱 LSP announced that it has held its final close of LSP 6, a life sciences investment fund in Europe, at the $600 million hard cap.
🇪🇸 Alantra and Enagas have partnered to launch a €150 million fund named Clima Energy Transition Fund, targeting late and growth stage companies operating in the green hydrogen, biogas, energy efficiency, decarbonization, sustainable mobility and digitalization for energy transition segments.
🇵🇹 Portuguese VC firm Indico closes €54 million fund to invest in early-stage Iberian startups
🇫🇮 Sparkmind announced a €40 million initial close for its maiden venture capital fund focused on the EdTech sector in the Nordic region.
🇪🇸 The Italian firm Gellify has acquired the Spanish company Biba Venture Partners for €1.75M and will start operating in Spain by creating a new €15-20 million investment fund operational in 2021 to invest in the Spanish entrepreneurial ecosystem.
🇬🇧 Imperial College London has launched a fund to invest in early-stage, high-growth, knowledge-intensive companies spun out of the world top ten university.
Bonus:
🇪🇺 Luciana Lixandru from Accel becomes the first general partner based in Europe for Sequoia. She will start in September.
Interesting bets
🇧🇪 developer of mobile and microlearning software | €1.8 million | Limburg investment company, the Concentra Media Group
🇫🇮 developer of a transfer pricing digital platform | €4.2 million | Global Founders Capital, Icebreaker.vc
🇩🇪 enterprise loyalty program software-as-a-service provider | €5 million | Hi inov, BayBG Bayerische Beteiligungsgesellschaft, Senovo, UVC Partners
🇸🇪 cloud-based content management for the technical documentation market | Alfvén & Didrikson
🇨🇭 AI-based software to fully automate expense and credit card processes | CHF 1.7M | Swisscom, SIX
🇬🇧 urban air mobility infrastructure (UAM) provider and drone delivery operator | £6 million | Irelandia Aviation, Deutsche Bahn Digital Ventures, Groupe ADP, Levitate Capital
🇬🇧 social enterprise startup focused on the Over 50s | £3 million | QED Investors, 1818 Venture Capital, angel investors
🇬🇧 a confidential platform for the reporting of workplace harassment | £1.35 million | Praetura Ventures, GC Angels
🇬🇧 consumer marketplace for legally certified cannabis products | £500k | ENEXIS, angels
🇬🇧 food waste app | QVentures
Research, data, observations
🇪🇺 Family-owned industrial firms that have thrived for generations are now fighting digital disruption
🇬🇧 The Antibiotic crisis: why the resistance from investors?
🇫🇷 US. vs. Europe: two visions of Open Banking and their impact on the market structure
🇮🇱 A Coronavirus guide for early-stage enterprise tech companies - the email sent out to all the Angular Ventures portfolio founders and CEOs
🇩🇪 A strategic analysis after evaluating multiple service marketplaces
🇬🇧 Hiring: the metrics that matter
🇬🇧 From January, new EU migrants will now have to pay £620 per person per year (currently free) - so charge of almost £2,500 a year for a family of 4 on top of other fees and charges (via)
🇪🇺 The European Commission is calling for startups and SMEs with technologies and innovations that could help in treating, testing, monitoring or other aspects of the Coronavirus outbreak to apply urgently to the next round of funding from the European Innovation Council. A budget of €164m
🇪🇸 GetYourGuide founder called industry veterans from competition for crisis tips.
Bonus:
how many meetings are necessary for raising $1M? Twitter crowd chimes in.
if in B2B:
1/ Enterprise default planning seems to be: pause new sales rep hiring, amp BDR lead gen and rebuild marketing funnel for digital first, rethink product to be frictionless install/POC; for those flush with $$ - selectively hire engineers, consider some small acquisitions
2/ less leads, less reps, longer sales cycles will impact revenue back half of year depending on sales ramp time (6 mos avg) and if this continues will impact first half 2021 as wellAs traditional sports leagues are postponed or cancelled, some thoughts on the esports market
Awesome DB w/ YOY change in diners via OpenTable restaurants’ seated diners across all channels: online, phone, and walk-in
Coronavirus and the Remote Work Experiment No One Asked For (by Automattic CEO Matt Mullenweg)
Google’s resources on how to stay connected and productive while working remotely.
Corona stuff
Real time tracking w/ all govt responses | Norway | Iceland | Ireland | NYC | Italy
Epidemiological models show Europe faces Italy-like surges within weeks - Italy is about two weeks ahead of Britain and the rest of Europe.
UK govt actually has a Coronavirus strategy different than those used in other countries.
Or no… it is the most insane in history! (alternate opinion)
EU expects 70% of Europe’s population to be affected by coronavirus
Paolo blogs from quarantine in London.
A list with what Italians can and cannot do these days because of the quarantine
Spain went all in Wuhan style, not like Italy.
To comply with coronavirus restrictions, Poland's Catholic church wants to increase the number of masses to ensure each is attended by fewer people. Closing churches (as has happened in Italy) is "unimaginable" as they "heal illnesses of the soul".
Alibaba says AI can identify coronavirus infections with 96% accuracy within 20 seconds via computerized tomography scans
We are building an app and a site for people all over the world to self-report COVID-19/Coronavirus suspected infections. This is unpaid work - here’s how you can help
The Danes wish to know more about the coronavirus - they need help
The Dos and Don’ts of “Social Distancing” - experts weigh in on whether you should cancel your dates, dinner parties, and gym sessions.
The kids are turning to “Cloud Clubbing” / “Pelaton for discotheque” setups
Why you must act now (very good background reading)
Travels with the coronavirus through Asia by Bruno Maçães, a former Europe minister for Portugal.
While it feels like the Coronavirus Outbreak is to blame for large scale shifts in work, business, education & society, most have been happening in slow motion for some time. They are just accelerated in the face of a a crisis. Here are a few examples.
Fuck coronavirus - who has a bill coming up that they’re not sure they’re gonna be able to pay, send me your bill and your venmo - fascinating thread
Happy Sunday! Be safe and stay sane!
Thanks for reading 🙌
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Created every Sunday by @drnovac. Please share it with people who may find it interesting - thanks!