Negotiation. 'Ecosystem' #46
A weekly guide on tech news and early stage fundraising. Aiming to open access to the venture industry for less networked founders and junior VCs.
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Hello and welcome back to ‘Ecosystem’, issue 46!
I really did miss you; as well as putting together this newsletter with the key tech news and VC updates for you! Appreciate you coming back and excited to hear your feedback once you read through (‘hit reply’ and let me know!). Brace yourself for an issue full of *filtered* content - a digest over the past ~3 weeks. 😊
Those who follow this project more closely may know that I joined the inaugural cohort of the Newton Venture Program, a joint venture by Senderwood Group (LocalGlobe & Latitude) and London Business School (as of this month, Silicon Valley Bank has become a founding partner too) designed to upskill the venture capital sector by educating the investors of tomorrow.*
It has been a truly insightful experience, with lectures/sessions hosted by top global VCs including Luciana Lixandru (Sequoia), Scott Kupor (A16Z), Christoph Janz (Point Nine Capital) on topics spanning from venture legals to sourcing deals. Hands down, my favourite module to date was taught by the program’s executive director (and former LBS negotiation professor) Lisa Shu on well.. negotiation (‘winning deals’) - with tips on how to not only ‘carve the pie’, but use a negotiation as an opportunity to enlarge it (a win-win outcome is more probable than you may imagine!). Think about the issues at stake when negotiating -> and aim for having more than one. If this is a topic of interest, do follow her on Twitter for insights (and check out the last section of this page for her advice on negotiating a term sheet like a pro!). A good book (albeit widespread knowledge->common recommendation!) to start with on the theme is ‘Never Split the Difference’ by FBI Hostage Negotiator Chris Voss.
*My participation in the program is sponsored by Community hub Phoenix Court Works and forward-thinking Manchester-based real estate developer and investment manager CERT Property.
But back to the newsletter, in this issue you will learn:
Which 24 year old podcaster just raised $140M in fresh VC capital to fund early and growth stage companies?
Which new accelerator program to join if raising a seed round in Europe (powered by Softbank, in partnership with Speedinvest)?
How to ace your term sheet negotiation?
Who are the UK-based investors recognised in the Queen's Birthday Honours List?
How a seed stage VC evaluates companies? A look inside an investor’s mental map
Would you like to contribute to the growth of the ‘Ecosystem’ project? More here.
See you for another newsletter in July! 💙
Ecosystem Updates
Trending. SoftBank partners with SpeedInvest on a European accelerator program to back seed stage underrepresented founders (Silicon Canals). Find out how to apply here (deadline: 7 July!). Top Swedish VC firm Creandum (early backer of iZettle and Spotify) gets one of the youngest partners in Europe - 31-year-old investor Peter Specht (Tech.eu). Plus another young star in VC land - from content creator to capital allocator - 24-year-old Harry Stebbings raises fresh $140M in pair of funds (for early stage and for growth) from MIT and Rothschild-backed RIT Capital Partners (FT). More VC money for early stage founders across the Atlantic, Reddit Co-Founder Alexis Ohanian secures $150M for his fund (which features 100% gender equal investor team!) via Bloomberg. Are there really ‘no successful tech companies in Europe’? A few years after his infamous comment, PayPal co-founder and billionaire Peter Thiel joins a Nordic $100M tech fund as strategic partner and investor (Sifted). One of Europe’s top investors Balderton, launches a new $680M “early growth” fund with plans to inject between $25M and $50M per company (Techcrunch). The UK gains ‘Unicorn’ nest status - the country now has 100 tech companies are valued at $1bn+, more than rest of Europe combined (City AM).
Tech giant Amazon faces the biggest-yet EU privacy fine for data breach at $425M (WSJ). A similar formal competition investigation into the company’s use of data may follow from the UK (Reuters). Want optimal employee productivity? Why you may like to consider a five-hour-working day company policy (Wired).
Massive rounds. Swedish success stories - Lithium-ion battery maker Northvolt gets one of Europe’s largest cash injections at $2.75BN to fuel the transition to a decarbonized, electrified future (Reuters) and buy now pay later startup Klarna becomes the continent’s second most valuable fintech as it bags $639M at a whopping $45.6B valuation (47.3% higher than the company’s valuation in March this year when it raised $1BN!) via TechCrunch. More from Germany - Munich-based mobility scale-up FlixMobility raises over $650M (in a mix of equity and debt financing) at a valuation of $3BN (Tech.Eu) and Berlin-based insurtech Wefox bags a $650M Series C round led by Target Global (Reuters). Across the Pond, AI-powered defense start-up Anduril Industries (founded by unicorn serial entrepreneur Palmer Luckey) lands a $450M round at a $4.6BN valuation (Techcrunch). From the UK, Beamrey, the first company to bring predictive marketing and data science into recruitment, secures $138M in a series C funding (HCM Tech Report).
Scoop: Having raised only a seed round, London-based property management platform Lofti makes serious hires - including Revolut, Plum and FXPro team members (Tech.eu).
Acquisitions. European internet giant Prosus (and one of the continent’s most valuable companies!) buys Stack Overflow, an online community for software developers in a $1.8BN deal (WSJ). More tech news from the Nordics - Swedish customer engagement unicorn (and Twilio competitor!) Sinch snaps up Australian-born messaging platform MessageMedia for ~1.3BN (Techcrunch). E-commerce firm Etsy to acquire Gen Z-focused fashion resale app Depop for $1.62BN (CNBC). As even the largest players struggle to turn a profit in the fast-growing but fragmented second-hand fashion space; will more resale consolidation to follow? (Business of Fashion). JPMorgan buys investment platform Nutmeg as part of its expansion into the UK retail banking and investment market (Reuters).
Sustainability. Will the corporate rush towards carbon labelling (showing the environmental costs of our daily habits as consumers) help tackle the climate crisis? (The Washington Post). How can a VC firm incorporate ESG factors to achieve better (and more responsible!) investing? An overview by my colleague Klara Ritter on the steps we’ve taken at PropTech1. Plus if you are a Prop/ConTech founder, apply now for our next virtual office hours, taking place on 29 July 2021. Outlook, trends and players to note in the sustainable urban mobility space in Southeast Europe (50% of the region’s population lives in cities!) via The Recursive. And eight early stage purpose-driven companies you should know about - pre-screened in Shaper Impact Capital’s June newsletter.
Wins for women. Massive congratulations to Reshma Sohoni (Co-founder, Seedcamp**) and Priya Guha (Venture Partner, Merian Ventures; Member, Innovate UK Council) for being recognised in the Queens Birthday Honours list for the impact they’ve had on tech innovation in the country. 👏 Another female-led company goes public! Well done to genetic testing company 23andMe founder and CEO Anne Wojcicki for a successful Nasdaq listing (following a merger with a Richard Branson SPAC) via CNBC. More about her journey to becoming a tech self-made billionaire (Forbes).
Why are so few women investing and what can be done to accelerate financial gender equality? 👏👏 to the ladies behind Female Invest for helping 40K+ women take matters into their own hands by learning how to invest (check our their newest #BeatTheGap campaign + survey).
**Seedcamp’s co-founder Carlos Espinal was also featured on the list.
Funder
“When you have to put your assumptions on paper they can tell the story of your market knowledge for you. If you estimate CAC, churn, growth, engagement etc. in a sound way that gives comfort to an investor."
Beata Klein (Associate, Creandum) shares why VCs ask for a financial plan at early stage venture
How and when to build a marketing team at a start-up? Insights from Elaia’s Marc Rougier and Elnaz Giboulot
Founder/Operator
When and how can a European tech company best prep for a US expansion? Following a 600% revenue growth during the pandemic year, David Boutellier (Head of Europe, Kaia Health) on the start-up’s transatlantic tale
Girls in Charge Co-Founders Maggie Chen and Nikita Wad explain the importance of equipping young women with confidence and the skills they need to succeed in business/life in Startups Magazine latest issue (19) - p.46
Twitter Highlight(s)
Chantelle Marcelle, Head of Growth, PromoPrep
Semil Shah, General Partner, Haystack
Start-up of the week
Mining-free sustainable tech-powered jewellery
Juwelina Paris is a tech-enabled jewellery company that redefines the product category by offering an affordable and sustainable alternative. The female-led start-up leverages tech using lab-made stones, leading to the complete removal of mining as part of the supply chain. Get the luxury gems, minus the (environmental) damage.
Tweet @JuwelinaParis to share they were featured in ‘Ecosystem’!
Do reach out to me if working on a product advancing one or more of the United Nations Sustainable Development Goals.
Start-up Go-to Resources
Is it time to leave your start-up? How should founders know when the time to step down has come? - Insights from three former founders including Amit Gudka (Previously Co-founder, Bulb)
Raising a seed round? A visual illustration of the decision-making process of your *future* investor (Rob Go, Co-Founder and Partner at NextView)
How to negotiate your term sheet like a pro
The Dos and don'ts of beta testing (and raising) off a testflight
Valuations - or negotiating the economic terms of a VC deal by Fred Wilson (Founder and Partner, Union Square Ventures)
What are the qualities of a great founder - and how to become one? - tips from Reid Hoffman (video lecture and transcript)
Navigating the PMF journey - a mental framework as described by Bessemer Venture Partners' Adam Fisher
The MVP framework - measuring and proving user retention
Fundraising 101 : what do early stage investors look for, what makes a business VC-backable and how to approach fundraising - tips from Reshma Sohoni (Co-Founder and Partner, Seedcamp)
What is a pre-seed round and how to raise one?
Thank you for reading another ‘Ecosystem’ newsletter! What feedback do you have for me (likes/dislikes)? I would greatly appreciate if you share this with contacts (founders, tech operators & investors) who may find the content helpful🖤 Connect with me on Twitter