Dec 5, 2018 Pauliina Alanen
There’s been a trend that VCs are raising bigger and bigger funds. According to Rebecca Kaden, with these megafunds, it comes down to what they choose not to do, rather than what they do. When your fund is that big, you have to be involved in the bigger companies. On the contrary, if you have a small fund, it’s more about the verticals and types of investment that you choose to do, also referring to her own fund Union Square Ventures, where she’s been the first female partner since March this year.
As investors have adopted the “bigger is better” mentality, entrepreneurs have raised more money per round, starting from seed and continuing across the following stages. According to our VC panel today on Founder Stage, the mega-rounds could permit startups to stay private longer, partly simply because private money available has increased. The investing in tech has been booming over the last years.
Especially early stage investing happens more and more towards the individual rather than towards the company. According to Alice Bentinck this is prevalent particularly in Europe. In Europe, there’s need to put more infrastructure around the funding ecosystem. Alice’s fund Entrepreneur First has been experimenting with new ways of capital, for instance providing entrepreneurs 2000€ per month for a couple of months. This, she said, permits them to invest into the team, rather than into the product. As their youngest companies are just 14 weeks old, they are making their bet on the super talented individuals.
Rebecca Kaden highlighted the importance of timing and finding the right intersection for the technology and market mind-set. Nowadays, VCs are less likely to invest just when the technology is there, but they would like to wait to see the adoption in the market to begin as well. The panel also discussed the shift in thinking about profitability: profitability has become a word meaning not growing fast enough. However, the role of “growth at all cost” has changed to focus more on “at what expense”.
Beezer said she couldn’t help but ask about Brexit from the only Londoner of the panel, Alice Bentinck. “It’s very sad, but today, the British VCs are still looking pretty good.” she commented. Her own VC Entrepreneur First just opened offices to Paris and Berlin. According to Alice, a VC in Europe needs to look at the whole of Europe, not just not just London or Paris. So far it’s fairly hard to predict how the actual Brexit will look like.
It’s in the nature of regulations to always lag and be a bit behind of the upcoming trends. Therefore, as it was discussed a new phenomenon will likely hit a regulatory issue at some point. Rebecca Lynn would prefer entrepreneurs to be proactive and bring the regulators along with you. Alice brought up an interesting way the city of London is collaborating with entrepreneurs: they have built a sort of a sandbox feature for early stage companies to speak to regulators directly.
It was discussed that the majority of entrepreneurs simply need money. Having choices of VCis often a luxury. According to Rebecca Kaden having a partner who is more likely to be a long term partner can really be a make-or-break thing in these unpredictable times. Lynn highlighted the importance of aligning philosophically. She mentioned that investors and entrepreneurs tend to divide into two different camps, either breaking things at any cost, or taking account the network effects and bigger picture. How people react in the most stressful times is quite indicative of the investor’s and entrepreneur’s philosophy.
The panel concluded to this thought: Be smart about where you spend, knowing that you got the model right first is key.
Another Slush, another experience – no two events are alike. Through its program, setting and production, Slush Tokyo sets the tone for action at Tokyo Big Sight West Hall 1. In 2 days the lazer lights will be switched on and the gates will be opened – welcome to Slush Tokyo 2019. From an empty […]
So you’ve already purchased your tickets for #slushtokyo19. Now what? Here’s a top tip: grab your badge early at our pre-registration hubs around the city. Don’t feel like it? Here are 3 reasons why we think you should. SIDE EVENT ENTRY. With your badge beautifully slung around your neck, our team will know you’re an official […]
The annual pitch training event especially curated with everything that a startup needs is back. Quick Facts: When is it? On Feb 16, 2019, Saturday. What time? 12:00 – 20:00 BUT doors are only open from 11:30-12:30 so don’t be late! Where will it be? At this cool place called Accenture Innovation Hub (Sumitomo Fudosan Azabu Juban […]
The official Slush Tokyo startup side event is back again this year! Slush Tokyo and Amazon Web Service Japan will co-host the “Startup Day” on the 21st February, 2019 Slush Tokyo, the biggest startup event in Japan happening on 22~23rd February, will be partnering with Amazon Web Service to launch the official side event “Startup […]
Welcome to the land of the rising sun. Do not fret. Coming to Japan won’t just be a treat for your tech hungry mind. We promise you, this city will keep you safe, drive you nuts and feed you well. On a normal day, the Slush Tokyo team can usually be found running around the […]
It is not secret that Slush Tokyo has been a hub for meeting local and international players in the startup scene. In 2018, 600 startups and 200 registered investors pre-booked over 511 meetings that were held during the two days of Slush Tokyo through our Matchmaking Tool with 2,193 requests and 511 walk-ins. This year, […]
MEET THE SLUSH GLOBAL TEAM (JAPAN, FINLAND, CHINA, AND SINGAPORE), LEARN ABOUT DIFFERENT TECH SCENES, GET EXCLUSIVE STORIES AND MORE. The Global Gathering focuses on giving the media a bigger look at the startup scene and a peek into how Slush plays a part in it. The event will highlight the different goals, achievements […]
This year, there will be two programs giving startups a chance to speak on stage. The annual Slush Tokyo Pitch Contest where startups bring their A-game as they compete for the final winning spot and the new ShowTech Time which give startups the chance to pitch to their target customers. Pitch Contest Successful Applicants […]
In the spirit of “Call For Action”, we have rebranded and revamped the Dialogue Stage to be a kick-off point for attendees as an avenue to start or help your journey. After getting inspired from successful founder stories, we don’t want you to leave just inspired; we want you to leave with something you can […]
Read the most comprehensive data-driven analysis of European technology
We collect cookies to make your experience here smoother.