đ Hi, Iâm Andre and welcome to my weekly newsletter, Data-driven VC. Every Tuesday, I publish âInsightsâ to digest the most relevant startup research & reports, and every Thursday, I publish âEssaysâ that cover hands-on insights about data-driven innovation & AI in VC. Follow along to understand how startup investing becomes more data-driven, why it matters, and what it means for you.
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Happy Easter & welcome to our monthly wrap-up episode where weâll cover Marchâs most relevant content at the intersection of VC, startups, data, AI & productivity. I read it all so you donât need to - here we gođ
INTERESTING RESEARCH & REPORTSđ
Carta European Ecosystem Study: This new study provides valuable insight into round sizes and time between rounds, informing founders what to expect in their fundraising journey. Check out the full analysis by Arik Oslerne and his team here.
âď¸ KEY TAKEAWAY: While the timelines for progressing from one fundraising stage to the next have stretched, the amounts being raised paint a picture of a resilient and adapting startup ecosystem. The consolidation in deal volume suggests a more competitive landscape, yet the increased capital for those who secure funding signals strong investor confidence, particularly in emerging technologies like AI.
Multiple Compression - Understanding Valuation Multiples Throughout Funding Rounds: Michael Hoâs analysis shows that valuation multiples naturally decrease with each subsequent funding round.
âď¸ KEY TAKEAWAY: Understanding these patterns is crucial for startups aiming to navigate the fundraising landscape effectively. The initial high valuation multiples are not just a testament to a company's potential but also a reminder of the steep growth expectations embedded in venture capital.
INSPIRING TECH IN VC CONTENTđĄ
âHow venture capitalists are using AI to invest more effectivelyâ post by Vital Laptenok from Flyer One Ventures here, exploring how future VC firms need 1-2 people and can still make millions by automating tasks like sourcing, screening, classifying, and monitoring startups
âFrom Data to Decision: How Investment Tech Shapes PE/VC and Professional Servicesâ post by Simon Ludwigs here, sharing an overview of investment tech providers across sourcing, screening, due diligence, portfolio & fund management, and more
âUnveiling Company Culture Through AI: A Revolutionary Approach to Organizational Health Assessmentsâ deep dive by Armin Catovic from EQT here, describing how they built an LLM-powered organizational health assessment app
âThe Importance (and Shortcomings) of a Data-Driven Approach in Venture Capitalâ article by Kyle Thorpe from Pattern Ventures here, describing what LPs can learn from GPs and how LPs can leverage data-driven approaches to get in front of the ârightâ funds for the right reasons (and hopefully at the right time)
âInvestors Have Got Your Number: Navigating The Data-Driven Shift In Venture Capitalâ article in Forbes by Dougles B. Laney here, exploring why the VC industry is undergoing a massive tech disruption, and what investors can do to keep up
OTHER RESOURCESđď¸
I joined Jeppe Høier in an interview about âAI-Driven Insights for Strategic Investmentsâ here, transferring my experience from traditional VC to Corporate VC (CVC) with concrete âAI in VCâ examples and use cases
I joined Solenne Niedercorn in her Finscale podcast here to discuss âThe impact of tech, LLMs, and AI on the investment industryâ
EVENTSđ
đĽExcited to announce our first virtual Data-driven VC Summit 2024 on May 5-8th with 20+ speakers from leading institutions like Lightspeed, ICONIQ, EQT, Moonfire, Stanford, UCL, and more - details heređĽ
âTECH IN VCâ JOBSđŠâđť
đĽSenior Software Engineer @Earlybird VC in Munich or Berlin heređĽ
đĽSoftware Engineer Intern @Earlybird VC in Munich or Berlin heređĽ
Program leader Shared Startup Data in Netherlands here
Tech Lead @All Iron Ventures in Bilbao here
Analytics Engineer @Dawn Capital in London here
ML master student @EQT in Stockholm here
Data Engineer @Ethereal Ventures remote here
Senior Data Engineer @Growth Equity Firm in the Bay Area here
Data Scientist Internship @Invest NL in Amsterdam here
Head of Product @Seven Seven Six Ventures remote here
Analytics Engineer @Tidemark Capital in San Francisco Bay Area here
THIS MONTHâS DATA-DRIVEN VC EPISODESâŽď¸
Essays
Insights
âRound Dilutions, User vs. Revenue Retention, SAFE vs. Convertible, SaaS IPO Playbook & Moreâ
â2024 Fundraising Guide, Round Size per Stage, Time Between Rounds, Multiple Compression, Founder Fatigue & Moreâ
âHow Successful Founders Scale Their Teams From 0 to 1,000â
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If you have any suggestions, want me to feature an article, research, your tech stack or list a job, hit me up! I would love to include it in my next editionđ.