Radu Ionescu

Out of some 42,000 startups, 288 have been bought so far in 2024.  The old adage that startups are bought, not sold seems to be holding true. I enjoyed speaking with Peter Walker, Head of Insights Carta, on The Lonely Office to talk about the "Startup Gamble: What are Your Odds?" I've been following his posts for a while and I love the way he stitches together startup insights and advice with a data driven perspective using the Carta database. And I believe I'm not the only one who finds his insights valuable. So we thought we'd bring him on to speak about the best cities to raise angel and pre-seed money (it's no longer just SF and NY), the most common exit periods for startups, and why the VC phrase "lifestyle startup" is a term that needs to be phased out. Check in below for more discussion.

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Traffic - A new cartoon that illustrates how Google's adoption of AI in their search business is having an unintended consequence on small companies that depend on web traffic. Google search attracts 106Bn visits a month, 4x the next four search engines combined, with a market share of 88%. Global research by DataReportal shows that 'find information' is the most common aim for using the internet, across all generations. Historically, there are concerns that the playing pitch is skewed towards Google’s interests, reflected by anti-trust cases in the US and Europe about monopoly pricing. However, the rollout of Google Gemini and search algorithm updates has extended concerns deeper into the core product offering. Gemini is the company's AI-powered search and answer engine, which is designed to stop spammy results from auto-generated content (you know, that page that is basically an ad). This has meant many search results are either being addressed by Gemini itself or are sent to human content review sites Reddit, Inc. or Quora. Google says the upside is "45% less low-quality, unoriginal content in search results,” but many sites with their own original content have gone through a near extinction event. Analytics tool Semrush suggests that the website for New York Magazine lost 32% of its Google Search traffic in the past six months. Most impacted are companies that were trying to follow Google’s recommendations on creating their own independent content (e.g. blogs, videos), but no longer are top of the search result lists. For example, Gisele Navarro, the founder of HouseFresh, an air purifying product distribution remarked that the changes “decimated us. Suddenly the search terms that used to bring up HouseFresh were sending people to big lifestyle magazines that clearly don't even test the products. The articles are full of information that I know is wrong." #googlegemini #webtraffic #seo

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EU still has lot to do, in particular when it comes to the flow of money. This capital markets union just might be the last chance to fix it... #eu #moneyflow #singlemarket #economy #investment #startup #financing #risktaking #innovation #scaleup #growthfunding #growthcapital #investors #investmentstrategies

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The average number of planned market entries seems to drop after a certain amount raised (European tech companies). I'd welcome suggestions as to why that might be the case! Two hypotheses: - Founders that have raised more know how difficult it can be - Prior investment was used to expand already to a target market (not mutually exclusive) #internationalexpansion #fdi #capitalraising #startups #fundraising #founders #venturecapital #investors #vc #vcfunding #technology

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myidea.ro/masterclassess - 101 insights about funding and a few seats available tomorrow - for entrepreneurs raising money & for new angels looking to manage the risk of investing for sustainable maximum returns

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Europe’s tech sector makes up only 7.5% of our public markets, while the US tech industry dominates with 31.7%. We’re falling behind. This is nothing new. But AI is making it even more OBVIOUS. Our startups are trapped in a fragmented system of 20+ legal frameworks, making it nearly impossible to scale. While American and Asian companies surge forward, Europe struggles with red tape and complexity. But it doesn’t have to be this way. What’s holding us back? It’s not a lack of talent — Europe has some of the brightest minds It’s not a lack of funding — venture capital is pouring in The real issue is legal fragmentation 🧩 In the US, one office can reach 330 million people. In Europe, startups must navigate a maze of taxes, laws, and regulations across multiple countries, stalling growth and innovation. The solution? >> Unite Europe << A pan-European strategy would allow startups to scale across borders without hurdles. Like a single framework that removes these barriers and frees our tech ecosystem to thrive. Imagine a Europe where the next trillion-dollar company emerges from Berlin or Lisbon, creating jobs and driving innovation. We can make this a reality. Let’s unite, simplify, and build a single tech ecosystem across Europe. ________ If that topic is of interest, Google it. Lots of really great initiatives out there. My heart goes to the “EU Inc” movement 👊 (amazing job here Andreas Klinger) If you’re interested, they just launched a petition. It’s worth a read: https:/eu-inc.org The moment is here. Let’s seize it. 🇪🇺

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Europe's tech market has some catching up to do. #eu #techmarket #technology #techcompanies #marketvalue #financing #growthcapital #scaleups #commercialisation

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"We need government funding in Europe as most European VC teams won't be able to raise a new fund without the support of public LPs." They shouldn't be raising a new fund then! If a VC team received public money on preferential terms for fund 1 and in four years haven't proven to private investors they can run a fund, why should public investors keep supporting them? I'm not against government funding of VCs, but... 1. Let's find more emerging managers with smaller funds--$5-10m first-time funds run by lean teams, ex founders, single GPs--and see how they do on the free market later. 2. Let's keep funding those who have proven they can raise a second, third fund privately, showed good performance and maintained a great reputation among entrepreneurs. Let's not support mediocre managers, Europe doesn't need more of those, we have more than enough! #venturecapital #limitedpartners #gp #lp #fundraising #investments

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Building a vibrant startup ecosystem isn't just about funding or facilities - it's about creating a community where founders believe, commit, and achieve. 2024 marked significant milestones in Malta's startup journey: • Successfully organized Startup Festival Malta 2024 with record international participation • Launched dealroom.co integration to improve startup visibility and investor connections • Advanced support across digitalgames, fintech, DLT, edtech, and medtech sectors • Celebrated Malta Enterprise's 20th anniversary while pushing innovation forward • Expanded practical support for founders from diverse backgrounds Three moments that captured our ecosystem's evolution: "We will continue striving to provide the strongest platform for you to StartinMalta and launch to the world." On Startup Festival's success in bringing our community together https://lnkd.in/dHV59Fps "Malta as a new spiritual home of a well sought after Edtech accelerator" From our Web Summit Masterclass on Malta's evolution as a startup destination https://lnkd.in/dvFhDvJB "It's tough - but help IS available." On providing practical support to emerging founders https://lnkd.in/dMVawVYd Looking ahead: 2025 will focus on scaling our ecosystem support, deepening international connections, and continuing to position Malta as Europe's premier testbed for innovative startups. Up to €1.5M in repayable advances remains available for the right ventures. To every founder who chose to #StartinMalta: Your courage to build here strengthens our entire ecosystem. Malta Enterprise StartinMalta #ecosystem #startup #innovation #Malta #LinkedInRewind #2024wrapped -- Get your 2024 LinkedIn Rewind! Go to coauthor.studio

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Perplexity is a crazy company. They are going after a $200bn search market competing Google They are going after a $70bn podcast market competing Spotify with https://lnkd.in/diwMJ9vR They are going after a $40bn creator market competing Medium with https://lnkd.in/dn62QY7U They are going after a $10bn market for internal company search So is it a lack of focus? Or is it just crazy how much you can do, if you multiply your execution speed with AI agents? Aravind Srinivas

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Last week - the CEO of Klarna, a large European fintech startup - posted about how they used Gen AI to save millions of dollars on marketing costs. There was a massive backlash from artists who accused him of being proud of making hundreds of marketers jobless. He eventually deleted the post but the related press release is still on their website - you can see the relevant portion below. In the (now deleted) post - he also wondered about the impact of AI on creative industries: "But it makes me think, what will happen to the hugely talented marketing and creative industries? There is of course still a need for super great, super creative massive campaigns but a lot of the daily work of creative businesses can be done far quicker, more easily and at a fraction of the cost using AI." While it might sound unpopular to a certain section - it is true for better or worse. AI will effectively make an average content creator redundant, but enable the best creators to create more output. As a brand - you will realise in the near future that a high-quality content creator is not much more expensive than an average one - with AI being the productivity multiplier for the top 1%.

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FirstPartyCapital has been tracking European adtech exits since 2021. During this time we have seen nearly 50 noteworthy deals, totalling over $10bn!! Roughly 1/3 of the companies were purchased by PE firms, with MiQ leading the way when it partnered with Bridgepoint at a $900M valuation. The majority of the transactions were trade sales in the $50-200M range, with Teads as the $1bn outlier. There have only been a handful of IPOs, including Azerion which listed with an enterprise value of $1.4bn. Hopefully we will see a few FPC portfolio companies joining the list in 2025! Comment below if you'd like a copy of our M&A tracker. #adtech #liquidityevents #exits #IPO #tradesale #mergersandacquisitions #europe

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On Wednesday, Index Ventures announced its new $2.3bn fund dedicated to taking advantage of recent breakthroughs in artificial intelligence, which the firm believes will ultimately reshape entire economies. Index, which invested in European poster child Mistral AI last year valued last month at $6.2bn (almost 24x of the price Index paid in 2023), also claims that over half of its recent investments have been in AI. Index is not alone. Other big VC players are eyeing AI opportunity with large funds - Andreessen Horowitz closed a $7.2bn fund in April, and General Catalyst is said to be closing its new $6bn in the coming weeks. - Established funds are on a roll. With fewer startups around, high-performing companies are even more sought after, especially those leveraging AI. For many small VCs, exercising their pro-rata rights in subsequent funding rounds of their ‘winners’ is a way to keep in the game. However, this can be challenging when a big-name fund, which drives up valuations and wants to take a significant share of the follow-on round, is involved. Many small VCs just can't afford to participate in these subsequent rounds and drop out. As a result, there seems to be a wave of new pro-rata-targeted funds that help early-stage investors exercise their pro-rata rights by funding them, typically for a 10% fee forming. (check: Alpha Partners or SignalRank) With fewer growth-stage deals and scarce capital for early-stage funds (check this week's Analysis story), an abnormally high number of VCs are unable to fund their pro-rata rights. Will pro-rata funds provide a new opportunity for early-stage funds to drive returns? #venaturecapital #femalefoundry #femalefoundrynewsletter

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Spotify went from $13m to $13b in annual revenue in 15 years. Their CFO said it was due to these 4 growth strategies: (In particular, they noted, from 2020 onwards.) 1. Freemium Model Expansion Spotify continues to leverage its freemium model to attract users, with free users being supported by advertisements. This model has been critical in converting free users to paid subscribers, driving user engagement and retention. 2. Diversification and Acquisitions Spotify has made strategic acquisitions to diversify its offerings beyond music. This includes investments in podcasting through purchases of companies like Gimlet and Anchor, and expanding into audiobooks. These moves have not only brought in new types of content but also new revenue streams. 3. Advertising Innovations Advertising has become a significant growth driver for Spotify. The company has enhanced its advertising technologies, such as Streaming Ad Insertion (SAI) and the Spotify Audience Network, to better target and measure ad effectiveness. These innovations have tripled Spotify's ad revenue since 2018 and created new opportunities for advertisers. 4. Global Partnerships Spotify has entered into partnerships, such as the one with WPP, to integrate deeper insights and create more relevant advertising strategies. This partnership aims to leverage Spotify's extensive user data to enhance ad engagement and effectiveness. * * * * * * * They now have: → 550+ million Monthly Active Users → 230+ million paid subscribers → A valuation of $25–35 billion They are still losing money, but now less than ever. Their aim is to dominate the audio space long-term. They're certainly on track to achieving that. I give insights like this every week in my newsletter: The Growth Mindset. Subscribe using the link below. https://lnkd.in/gwnJ28jy Repost this to help your network & follow me Adam Graham for more content like this.

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Rankings don't mean much...and it's Pitchbook...but PitchBook lists only one EU city in the top 20 of its 'world’s top startup cities' ranking...and that's Berlin in the 20th slot. https://lnkd.in/ezCmFaf8 #vc #venturecapital #startups #entrepreneurs #entrepreneurship #tech #technology #innovation #money #business

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"Timing" in startups is closely related with the "market research". Corporations spend millions perfecting their timing before considering any R&D or launch, while we as founders often trust our gut. That simple feeling, which we call the "aha moment", actually consumes or ruins 99% of founders lives now. :) Yes, I know, you can't really learn or get this experience anywhere, timing is not the one, team, idea, business plan, investment blah, blah, blah... Whatever. But this is also part of the output, right? That is why people tell a thousands times to ship it as fast as possible. You're doing millions of dollars of market research just only on your own, guided by nothing but your gut. Don't beat yourself up too much. #startup #entrepreneur #entrepreneurship #timing #marketresearch

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I had the pleasure of co-hosting a roundtable with two amazing investors, Noa Shamay from Cardumen Capital and Miriam Shtilman Lavsovski from Tal Ventures, as part of Fusion’s pre-seed fundraising conference. My main takeaway? There are no rules when it comes to pre-seed rounds. Forget the clickbait headlines—each startup is unique, and so is every round of funding. Here’s what I shared: 💡No cookie-cutter solutions – Every startup and every round is unique. Forget those “10 things you need to do” lists (and yes, I am aware of the irony of it being the first thing on this list - but stand by it!). Do your research and customize your approach. 💡Understand investor strategies – Investors have different playbooks. You’ll come across two types: ➡️➡️Pre-seed-focused investors like Fusion VC, who have clear criteria and look to invest in a lot of different startups with smaller checks. ➡️➡️Occasional pre-seed investors, who invest in pre-seed on a case-by-case basis. Figuring out why they’ve invested in certain pre-seed rounds might take some detective work—talking to other founders who raised pre-seed funding from them is a great start. 💡Investment thesis matters – Each investor has a thesis driving their decisions. If you can connect your pitch to their pre-seed thesis, you’ll be one step ahead. Figure out why they would do a pre-seed round and not a seed round - what significant milestones can be reached with the pre-seed funding? What advantages does the investor gain in terms of position or access in the company to compensate for the risk of pre-seed funding? 💡Prepare to fundraise – The best advice? Lean on your network. Like everything else in the Israeli Eco-system - use your network. people love to help. talk to founders who have raised funding from the investors you’re targeting, or to other investors who invested alongside them. Like everything else in managing your startup - plan out the best pipeline, process and pivot for you fundraise. this isn’t pivoting your company (at least not necessarily) but pivoting your presentation. work in bulks of around 5 investors, and try to start with at least 5 investors you’re not really interested to raise money from. after every bulk of investors, go over the feedback, find trends, and pivot your presentation. Let me know what you think in the comments! 👇 One last thing that stood out was a serious lack of female founders in the crowd, and that needs to change. If you’re a female founder, let’s grab coffee and chat about your company. And if your company isn’t in cybersecurity or enterprise software, don’t worry - let me be one of those 5 investors you don’t really want to raise money from. Let’s close the gap and fund more women led startups 💥 (shout out to Marina S. who is killing it and is a bright example of why this is not about doing good but about making good money). #PreSeedFunding #FundraisingStrategies #WomenEntrepreneurs

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