Are VCs slowly morphing into private equity firms? Secondary funds just topped $64 billion this year, as VCs "reset the clock" on ageing portfolio companies in a race to return cash to investors.
Despite VCs' stormy forecast, this week offered several rays of hope. Funding for EU tech startups grew by 18%, compared to pre-pandemic levels, and Europe's new founder count exceeded that of the US. Moreover, the UK venture capital scene has seen a consistent rise in deal values for three consecutive quarters, reaching a peak of £5.3bn in Q3.
OpenAI investor coup triumphs as Sam Altman reclaims CEO role
Boardroom drama eclipsed the AI investment scene this week as Sam Altman was ousted as OpenAI’s CEO. This follows intense pressure and legal warnings from concerned VC backers looking to stabilise the leadership of the company.
Investors are leveraging AI technology to decode execs’ speeches, extracting investment signals from subtle details like speech rate, pitch, and volume during earnings calls.
The VC downturn persists, but the economy is seeing glimmers of hope — from an upswing in private equity to the unrelenting growth of AI. AI startups brought in nearly £15 billion in global funding in Q3, soaring 27% from last year, and GenAI startups made up 60% of newly minted unicorns.
Male founders & VCs are getting rich from AI. What about women?
Tech VC funding is down 57% year-on-year in the UK. We’re seeing the effects ripple across this week’s news — from the rise of spinouts over IPOs, to the pressure founders are facing to pay investors for taking a board seat.
The VC downturn persists, but the economy is seeing glimmers of hope — from an upswing in private equity to the unrelenting growth of AI. AI startups brought in nearly £15 billion in global funding in Q3, soaring 27% from last year, and GenAI startups made up 60% of newly minted unicorns.
Caution is the name of the game this week, as the FCA reviews private market valuations, VCs warn startups to delay IPOs, and US investors work with government to regulate AI investing.
Caution is the name of the game this week, as the FCA reviews private market valuations, VCs warn startups to delay IPOs, and US investors work with government to regulate AI investing.
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