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The European Long-Term Investment Fund (ELTIF) is one of the EU’s most ambitious innovations in financial markets. Introduced in 2015, ELTIFs were designed to bridge Europe’s chronic investment gap by channeling private capital into infrastructure, real assets, and small and medium-sized enterprises (SMEs). They align with the EU’s Capital Markets Union (CMU) strategy: making European savings work harder for long-term growth. The first generation, ELTIF 1.0, had limited success. But with the launch of ELTIF 2.0 in January 2024, the regime has been revamped to improve flexibility, broaden access, and meet both institutional and retail investor needs. Now, ELTIFs are poised to become a mainstream investment vehicle, combining patient capital, diversification, and regulatory safeguards. This guide breaks down what ELTIFs are, how they work, their benefits and risks, and what the new reforms mean for investors and Europe’s economy.What Are ELTIFs? European Long-Term Investment Funds (ELTIFs) are EU-regulated investment funds governed by Regulation (EU) 2015/760, revised under ELTIF 2.0 in 2024. They are a type of Alternative Investment Fund (AIF) managed by authorized Alternative Investment Fund Managers (AIFMs). ELTIFs channel investor capital into long-term, illiquid assets, such as:<ul><li>Infrastructure projects (renewable energy, transport, digital networks).</li><li>Real estate with social or economic value.</li><li>Private equity in unlisted companies and SMEs.</li><li>Sustainable investments such as green bonds.</li></ul> What sets them apart is that both institutional and retail investors can participate, with ELTIFs benefiting from an EU-wide marketing passport. This pan-European reach democratizes access to private markets while offering regulatory protection.Think of ELTIFs as a hybrid between private equity funds and mutual funds: they invest in long-term projects traditionally reserved for large institutions but are structured under EU regulation to be more widely accessible. Why Were ELTIFs Created?The EU identified three structural problems in European finance:<ol><li>Over-reliance on banks: Unlike the U.S., Europe has historically depended on bank lending, leaving infrastructure and SMEs underfunded.</li><li>Short-termism in markets: Traditional funds and ETFs prioritize daily liquidity and quarterly results, not long-horizon projects.</li><li>Underutilized savings: European households hold more than €14 trillion in savings, much of it in low-yield bank deposits.</li></ol> ELTIFs were designed to address these challenges by:<ul><li>Supporting the real economy: Financing growth companies, infrastructure, and sustainability projects.</li><li>Opening private markets to retail investors: Allowing individuals to diversify beyond stocks and bonds.</li><li>Promoting cross-border investment: Leveraging the EU single market to distribute ELTIFs across member states.</li><li>Aligning with ESG and climate goals: Funding green energy, sustainable real estate, and climate transition.</li></ul> Key Features of ELTIFs1. Regulatory Oversight<ul><li>Supervised by national competent authorities (NCAs).</li><li>Operate under the AIFMD (Alternative Investment Fund Managers Directive).</li><li>Benefit from EU-wide marketing passporting.</li></ul>2. Investment Focus<ul><li>55%+ of NAV in eligible assets (down from 70% under ELTIF 1.0).</li><li>Eligible assets include unlisted companies, listed SMEs (market cap ≤ €1.5 billion), real assets, green bonds, and even global assets.</li><li>Remaining assets can be invested in liquid securities for flexibility.</li></ul>3. Structures<ul><li>Can be closed-ended (fixed maturity) or semi-open with redemption windows.</li><li>Options include fund-of-funds, master-feeder structures, and semi-liquid ELTIFs with secondary matching mechanisms.</li></ul>4. Marketing and Distribution<ul><li>Open to both professional (pension funds, insurers) and retail investors.</li><li>Retail rules simplified under ELTIF 2.0:</li><li class="ql-indent-1">No €10,000 minimum investment.</li><li class="ql-indent-1">No 10% portfolio cap for investors with &lt;€500,000 portfolios.</li><li class="ql-indent-1">Suitability tests aligned with MiFID II.</li></ul>5. Leverage and Diversification<ul><li>Retail ELTIFs: Borrowing up to 50% of NAV.</li><li>Professional ELTIFs: Borrowing up to 100% of NAV, with concentration and diversification limits largely removed.</li></ul> How ELTIFs Work: Mechanisms Explained Investment StrategyELTIF managers target assets with long-term value creation. These could be financing a new data center, developing renewable energy parks, or supporting mid-sized companies preparing to scale.Portfolio Composition<ul><li>Retail ELTIFs must diversify across assets (no more than 20% in a single undertaking).</li><li>Professional ELTIFs can pursue concentrated strategies with full flexibility.</li></ul>Liquidity and RedemptionA major innovation in ELTIF 2.0 is the introduction of redemption flexibility:<ul><li>Periodic redemptions (quarterly or less frequent).</li><li>Notice periods tied to liquidity levels (from 1 month if 40% liquid assets to 12 months if fully illiquid).</li><li>Liquidity management tools (LMTs) such as swing pricing, anti-dilution levies, redemption gates.</li><li>Secondary market matching: Investors can sell their shares via a platform or liquidity window, matched with buyers at NAV.</li></ul> Valuation and Reporting<ul><li>Assets must be valued under robust frameworks aligned with AIFMD.</li><li>Managers must report changes in redemption policies within 3 days to regulators.</li><li>Service providers (administrators, transfer agents, custodians) play a key role in compliance.</li></ul> Benefits of ELTIFsFor Investors<ul><li>Diversification: Access to alternative assets usually unavailable in public markets.</li><li>Return potential: Illiquid assets offer an “illiquidity premium” over liquid securities.</li><li>Regulatory protections: Strong oversight under EU law.</li><li>Retail access: Democratization of private equity and infrastructure investing.</li></ul>For Fund Managers<ul><li>Flexibility: Broader eligible assets, higher leverage limits, semi-liquid structures.</li><li>Scalability: Ability to market across the EU, tapping both retail and institutional pools.</li><li>Alignment with ESG: Many ELTIFs target green, social, and sustainable projects.</li></ul>For the European Economy<ul><li>Capital mobilization for infrastructure, green transition, and innovation.</li><li>SME growth: Providing equity and debt financing to mid-sized companies.</li><li>Job creation and competitiveness across industries.</li></ul> Risks and ChallengesDespite their promise, ELTIFs carry risks:<ul><li>Illiquidity risk: Redemption options are limited; investors must commit long-term.</li><li>Valuation uncertainty: Private assets are harder to price, requiring strong governance.</li><li>Liquidity mismatch: Redemption policies must carefully balance investor needs with illiquid holdings.</li><li>Operational complexity: Semi-liquid funds require sophisticated infrastructure and distribution.</li><li>Regulatory risk: RTS requirements (e.g., liquid asset buffers up to 40%) may reduce returns.</li></ul> ELTIF 1.0 vs ELTIF 2.0 Feature ELTIF 1.0 ELTIF 2.0 (2024) Eligible Assets Narrow (EU-based, strict thresholds) Expanded (global, securitized assets, green bonds, FoFs) Retail Investor Barriers €10,000 minimum; 10% exposure cap Barriers removed; simplified suitability tests Liquidity Locked-in until maturity Redemption windows, matching mechanisms, LMTs Diversification 10% per asset cap Relaxed to 20% (retail); removed for professional funds Leverage 30% NAV 50% (retail), 100% (professional) Market OutlookThe ELTIF market is still young but growing fast. As of 2025:<ul><li>Over 100 ELTIFs authorized across the EU, with Luxembourg leading (62% market share).</li><li>Asset managers are launching semi-liquid ELTIFs, inspired by the success of similar funds in the Nordics and U.S. “retail alts.”</li><li>Surveys suggest strong optimism: nearly 50 market participants in early 2025 expected rising adoption, particularly as retail demand for alternative assets grows.</li></ul> Challenges remain — notably liquidity rules under the RTS, which some managers consider restrictive. Closed-ended ELTIFs with secondary market matching may dominate, while truly open-ended structures could face hurdles.Still, the opportunity is vast: redirecting even a fraction of Europe’s household savings into ELTIFs could unlock hundreds of billions annually for long-term growth and sustainability. Who Should Consider ELTIFs?<ul><li>Retail investors seeking long-term diversification into alternatives.</li><li>High-net-worth individuals comfortable with illiquidity in exchange for higher potential returns.</li><li>Institutional investors looking for regulated, pan-European vehicles to invest in infrastructure and private equity.</li><li>Impact-driven investors interested in green, social, and sustainable projects aligned with EU policy.</li></ul> ELTIFs embody the EU’s ambition to transform idle savings into engines of long-term growth. With ELTIF 2.0, they are now more flexible, accessible, and scalable — opening alternative assets to a broader audience while supporting Europe’s infrastructure, SMEs, and climate goals.For investors, ELTIFs offer an attractive opportunity to diversify, capture illiquidity premiums, and align portfolios with sustainable growth. For the EU, they represent a cornerstone in financing its digital, green, and competitive future. The next few years will be decisive: if asset managers can balance liquidity with performance, and if retail investors embrace patient capital, ELTIFs may well become the mutual funds of Europe’s long-term economy. Disclaimer: This article reflects regulations and market conditions as of August 2025. Investors should seek professional advice before committing to ELTIFs, as they involve complex risks and long-term commitments. Join NENWEX - the verified institutional VC-LP Network to collaborate and syndicate without intermediaries - join and get verified now www.newnex.io

A Comprehensive Guide to European Long-Term Investment Funds (ELTIFs): Unlocking Patient Capital for Europe’s Future

London, UK – The global private markets are gearing up for a significant resurgence in 2025, buoyed by an accelerating innovation supercycle, an improving liquidity landscape, and the potential for favourable policy shifts. This optimistic outlook comes from Adams Street Partners' fifth annual "2025 Global Investor Survey: Navigating Private Markets," which gathered insights from 200 limited partners (LPs) and financial advisors (FAs) across the US, Europe, and APAC. After navigating several years of "tempestuous" conditions, marked by subdued dealmaking, exit activity, and fundraising following an "unsustainable level of exuberance" in 2021, the market is showing clear signs of recovery. A 25% rebound in global private equity and venture capital dealmaking value in 2024 indicates a cautious but growing optimism for steadily improving market conditions in the year ahead and beyond. Investors are increasingly optimistic that a recovery in dealmaking will boost liquidity, which in turn could drive fundraising as reinvested capital increases – a positive flywheel effect. This confidence is underpinned by the strong belief among survey respondents that private markets will outperform public markets over the long term. This outperformance is attributed to factors like lower volatility, superior governance, innovation, and the inherent agility of fast-growing private companies. As Richard Turnill, Senior Bursar at Trinity College Cambridge, notes, private market valuations tend to adjust more slowly and modestly than public market equivalents, making them less susceptible to short-term volatility. Preqin forecasts that private markets could grow from $15 trillion in 2023 to nearly $30 trillion by 2033. Key Drivers Propelling Private Market Growth: <ul><li>The Artificial Intelligence (AI) Revolution:</li><li class="ql-indent-1">AI is identified as a pivotal driver of value creation, standing at the forefront of what could be the most far-reaching technological revolution in history. The survey highlights the expectation of a proliferation of AI-leveraging startups across all economic sectors, significantly boosting labour productivity.</li><li class="ql-indent-1">Early-stage AI-native startups are attracting substantial capital, capturing almost half of the $209 billion in global venture deal value in 2024. Investment in AI and machine learning startups surged by over 50% to $131.5 billion in 2024, accounting for 35.7% of all venture dollars globally.</li><li class="ql-indent-1">Brijesh Jeevarathnam, Partner &amp; Global Head of Fund Investments at Adams Street Partners, notes that this "combination of customer and fast-paced innovation cycle fuels venture capital investments today". Marcus Lindroos, Principal, Primary Investments, reinforces that "Venture capital is an interesting opportunity for investors to capture technological innovation".</li><li class="ql-indent-1">This AI-driven innovation supercycle, coupled with the accelerating digital transformation of the global economy, is expected to underpin growth in private markets in the year ahead.</li></ul> <ul><li>Favourable Policy Changes and Regulatory Environment:</li><li class="ql-indent-1">The prospect of lower interest rates, regulatory streamlining, tax adjustments, and reduced antitrust scrutiny could create a more conducive environment for private market participants.</li><li class="ql-indent-1">A potential relaxation of stringent initial public offering (IPO) application rules may also boost this crucial exit route. Global IPO volumes saw a slight increase to $123 billion in 2024.</li><li class="ql-indent-1">Under a potential US President Donald Trump administration, expectations include reduced regulation and a more lenient approach to mergers and acquisitions (M&amp;A), which could benefit markets by boosting growth and easing compliance burdens. Jason Malinowski, CIO at SCERS, anticipates overall deal volumes in 2025 to fall between 2021 and 2023 levels, partly due to a reduction in the bid-ask spread and more realistic valuation expectations from founders.</li></ul> <ul><li>Pent-Up Demand and Realistic Valuations:</li><li class="ql-indent-1">A plentiful supply of capital, more realistic valuation expectations, and pent-up demand for dealmaking and liquidity are creating highly favourable conditions for private markets investors.</li><li class="ql-indent-1">US private equity managers currently hold an eight-year inventory of companies they are eager to sell. The gradual reawakening of the IPO market is a clear signal that the pent-up demand for dealmaking may be reaching a pivot point.</li><li class="ql-indent-1">Growth equity valuations have stabilised, with a renewed focus on "profitable growth" over a "growth-at-all-costs mentality," according to Brijesh Jeevarathnam.</li></ul> Key Strategies and Sectors Drawing Investor Interest: <ul><li>Private Credit: This asset class has been a strong performer, with Assets Under Management (AUM) reaching a record $1.6 trillion by the end of 2023, accompanied by $520.2 billion in dry powder. Investors are drawn to its attractive relative yields, better pricing, capital structure seniority, and robust credit protections, making it a "compelling risk-return proposition". While direct lending remains a mainstay, specialty finance, opportunistic credit solutions, and Net Asset Value (NAV) lending are seeing significant growth.</li><li>Co-investments: LPs are highly bullish on co-investments, with 88% planning to allocate up to 20% of their capital to this strategy. Valued for their favourable economics, diversification potential, and ability to foster deeper GP relationships, co-investments are seen as an increasingly vital tool for lead sponsors to complete large transactions.</li><li>Secondary Investments: Solidifying its role as a crucial portfolio rebalancing and liquidity management tool, the secondaries market saw transaction volume rise 45% to a record $162 billion in 2024. GP-led deals, particularly continuation vehicles, are gaining traction, offering potential for outsized risk-adjusted returns. Secondary investments also offer a compelling entry point for individual investors, providing access to more mature assets with lower risk, shorter durations, and greater liquidity.</li><li>Venture and Growth Equity: Investor enthusiasm is improving, with 26% of respondents planning to deploy more capital into venture capital this year, representing the largest increase among all strategies. Driven by AI and digital transformation, these areas continue to attract significant investment, with a renewed focus on the quality and sustainability of growth.</li><li>Technology and Healthcare: Consistently identified by 47% of LPs as the most promising sectors for private markets investments in 2025, driven by AI-driven innovation and digital transformation.</li></ul> Challenges and Geopolitical Headwinds: Despite the optimism, investors face significant challenges. Inflation (86%), interest rates (83%), international geopolitical risks (83%), and domestic political instability (74%) are identified as top concerns for LPs. More than 80% of survey respondents expect geopolitical events to impact their investment decision-making, with US-China trade tensions (54%), the Ukraine-Russia war (53%), and US political instability (37%) being key considerations. Potential policy shifts under a US President Donald Trump administration, including higher tariffs, could be inflationary and hinder growth. Furthermore, investor enthusiasm for environmental, social, and governance (ESG)-focused opportunities appears to be waning, with only 31% ranking it among the most attractive opportunities for 2025, down from 46% last year. This shift is partly attributed to ESG becoming politically divisive in some markets, especially parts of the US, and potential policy rollbacks concerning climate action, such as the US withdrawal from the Paris climate agreement in January 2025. However, the broader "energy transition" theme continues to influence investment decisions across various strategies. Geographically, North America and Europe remain top investment preferences for 62% of LPs. China's appeal has declined to 11%, while interest in emerging Asia-Pacific (such as India and Southeast Asia) has risen to 38%. A Strategic Window of Opportunity The outlook for private markets in 2025 is decidedly more optimistic, driven by increased dealmaking and liquidity, which are expected to catalyse a rebound in fundraising across buyout, secondary, co-investment, and private credit strategies. The "unstoppable trend" of AI will continue to drive significant investment in venture and growth equity. As private markets evolve and become more accessible, innovation in product design and new investment structures are anticipated, creating a dynamic landscape ripe with diverse opportunities for growth and value creation. Managers looking to attract new capital will need to demonstrate deep sector and subsector expertise (43%), individual portfolio manager experience (38%), advanced digital analytics and reporting (35%), and an ability to execute large and complex deals (35%). The current environment presents a strategic window of opportunity for astute investors and managers. Read more: <a href="https://www.adamsstreetpartners.com/insights/2025-global-investor-survey" rel="noopener noreferrer" target="_blank">https://www.adamsstreetpartners.com/insights/2025-global-investor-survey/</a>--------Join the verified VC-LP institutional network - where VCs connect directly, no intermediaries - Free to Join <a href="http://www.newnex.io" rel="noopener noreferrer" target="_blank">www.newnex.io</a>

Private Markets Set for Resurgence in 2025, Driven by AI, Liquidity, and Policy Shifts, Global Survey Reveals

Continuation vehicles are becoming important in today’s private investment world. They allow investment managers to keep holding onto their best-performing assets longer, instead of being forced to sell them when their original fund reaches its end. If you’re new to the concept or just want a clear overview, here’s everything you need to know - from what they are to how they get set up and why they matter. What Are Continuation Vehicles?Think of a continuation vehicle as a new investment fund created specifically to take over and hold a company or asset that’s doing well. Usually, VC funds have fixed lifespans - typically 10 years with extensions. However, some assets need more time to reach their full potential. Rather than selling these assets prematurely, managers set up a continuation vehicle so they and investors can keep benefiting from growth. Imagine you’re a VC firm. Your firm owns some stake in a company, but when your fund’s term ends, you’d normally have to sell. Instead, you start a new fund (the continuation vehicle) that buys the stake from your original fund and raises money from new or existing investors willing to stay for the long haul. Why Use Continuation Vehicles?<ul><li>More Time to Grow: Good companies often need extra years to fully mature and create value.</li><li>Investor Flexibility: Some investors may want to exit, while others may want to roll their stakes forward into the new vehicle.</li><li>Strong Commitment: The managers themselves typically invest their own money too, aligning their success with yours.</li></ul> Key Features You Should Know<ul><li>Fees: Most continuation vehicles today charge a low management fee - usually 1% or less per year on invested capital. This is a shift from higher fees, driven by investor demands for fair pricing.</li><li>Performance Bonuses: Managers earn extra rewards if the asset performs well, with carried interest often rising to 30% after hitting certain return milestones.</li><li>Governance: Investors get protections like approval rights, “key person” clauses that protect against sudden departures, and the ability to remove managers for misconduct.</li><li>Follow-On Capital: Many vehicles put aside extra capital (“dry powder”) to fund additional growth activities, like acquisitions or expansion, rather than just holding the asset passively.</li></ul> How Are Continuation Vehicles Set Up?<ol><li>Selecting the Asset: The GP (general partner or manager) identifies a company or group of companies (assets) that has strong growth potential but may need more time.</li><li>Investor Check: The GP gauges who among existing investors wants to stay in (rollover) or cash out.</li><li>Fair Valuation: An independent review ensures the price for transferring the asset to the new vehicle is fair to all parties.</li><li>Forming the Vehicle: A new fund or company is established with agreed terms on fees, duration (usually five years plus extensions), carried interest, and governance rules.</li><li>Aligning Interests: The GP usually invests their own money or rolls over previous earnings, ensuring they have “skin in the game.”</li><li>Governance Protections: Key person triggers, LP removal rights, and lead investors are put in place for oversight.</li><li>Raising Reserves: Capital is raised not only to buy the asset but also to fund follow-on opportunities.</li><li>Launch and Manage: The continuation vehicle launches, and the GP actively manages and grows the investment while keeping investors informed.</li></ol> An example:Picture a venture capital fund backing an UK tech startup. The fund nears its end, but the startup is just hitting profitability and needs more capital and time. Instead of selling, the VC sets up a continuation vehicle, inviting willing investors to roll their stakes or cash out at a fair price. The new vehicle raises extra “dry powder” to fuel further growth. The GP invests personally, management rights and terms are agreed, and the whole group is poised to potentially reap greater rewards over the next five years. What Should Investors Watch For?If you’re considering investing via a continuation vehicle, keep these in mind:<ul><li>Check that management fees are reasonable, ideally 1% or less.</li><li>Look for tiered carried interest that rewards strong performance.</li><li>Ensure the GP has committed their own capital—this shows confidence and alignment.</li><li>Verify governance features like key person clauses and removal rights.</li><li>Confirm there’s reserve capital available for ongoing growth, not just a holding vehicle.</li></ul> Continuation vehicles are about giving great investments the time and resources they need to thrive, while offering flexibility to investors and alignment with managers. They bring transparency, discipline, and opportunity to private markets. As this structure gains popularity, especially in fast-growing markets like India, it’s worth understanding how they work and why they’re becoming a standard tool for serious private investors. Join NEWNEX - the verified VC-LP Network where VCs connect with VCs directly without intermediaries <a href="https://newnex.io/" rel="noopener noreferrer" target="_blank">https://newnex.io</a>

Understanding Continuation Vehicles: A Simple Guide to Structure, Setup, and Benefits for VCs

Venture capital (VC) investment in Europe experienced a modest decline in the second quarter of 2025, reflecting growing investor caution amid an uncertain geopolitical and trade environment. According to recent data, total VC funding dropped from $16.3 billion in Q1 2025 to $14.6 billion in Q2 2025. More notable than the slight dip in investment amounts was the sharper fall in deal volume. The number of deals decreased by over 26%, falling from 2,358 in the first quarter to 1,737 in Q2. This significant reduction highlights investors' more selective approach and reluctance to commit in an increasingly unpredictable market landscape. For entrepreneurs and startups, this trend signals a potential tightening of available capital, particularly affecting early-stage companies that rely heavily on seed and Series A funding rounds. Investors appear to be reserving funding for ventures with robust business models, proven traction, and clearer pathways to profitability.Analysts suggest that the cautious stance stems from multiple factors, including ongoing geopolitical tensions in key regions, volatile trade relations, and concerns over global economic growth. In this environment, venture capitalists are prioritizing risk management, which translates to fewer but potentially larger or higher-quality deals. Despite the slowdown, Europe’s innovation ecosystem remains resilient. Sectors like fintech, green technology, and health tech continue to attract investor attention due to their long-term growth potential and alignment with global sustainability goals.For startups seeking funding, the current climate recommends sharpening business strategies, emphasizing revenue generation, and demonstrating clear differentiation. Founders should also be prepared for longer negotiation processes and potentially more demanding due diligence as investors become more vigilant. ---Join Newnex - The Exclusive VC &amp;LP Institutional Investors Only Platform to Connect, Syndicate, and Co-Invest Directly Without Intermediaries <a href="https://newnex.io/" rel="noopener noreferrer" target="_blank">https://newnex.io</a>

Venture Capital Investment in Europe Experiences Modest Slowdown in Q2 2025

The European Investment Bank (EIB) is poised to invest a substantial €70 billion into Europe's technology sector by 2027. This ambitious initiative, dubbed TechEU, aims to significantly close the innovation gap with the United States and strengthen Europe's position in emerging technologies, including crucial areas such as artificial intelligence (AI) and military drones. TechEU is described as the European Investment Bank Group’s platform dedicated to accelerating innovation across Europe, connecting innovators to funding and expertise to help bring "game-changing technologies to market". It will establish a centralised hub for financing requests from researchers and companies, seeking to streamline and accelerate EU funding processes. EIB President Nadia Calviño has underscored the bank's renewed willingness to embrace risk in its financing strategies, recognising this as pivotal for startups operating in fast-moving markets. A key operational change under TechEU will see the EIB process startup financing applications within six months, a significant improvement from the current 18-month timeframe. Calviño describes this accelerated timeline as a 'gamechanger,' essential for keeping pace with the rapid nature of tech innovation. This substantial investment is also expected to act as a catalyst for much larger private investment. The EIB projects that its backing, through plans to co-invest with private investors, could unlock up to €250 billion for the European tech ecosystem by inspiring confidence and mitigating risk. Beyond innovation, the EIB has explicitly prioritised defence and security within its portfolio, acknowledging the strong synergies between these sectors and technological advancements. The EIB’s dedicated Security and Defence Office serves as a one-stop shop for financial support and expert assistance for businesses and innovators in these critical areas. This approach ensures that investments in defence can stimulate broader technological development, thereby fortifying Europe’s overall technological agenda. Digitalisation and technological innovation are also among the EIB's core priorities. The initiative comes at a time when the current geopolitical landscape, including uncertainties generated by US economic policies, is seen by Calviño as an opportunity for Europe to attract international investors due to its inherent stability and market potential. The European Investment Fund (EIF), as part of the EIB Group, also contributes to the TechEU initiative. The EIF aims to make it easier for Small and Medium-sized Enterprises (SMEs) and infrastructure projects to access finance, thereby contributing to the EIB Group's priorities and the EU's strategic policy objectives. As a large implementing partner for InvestEU, the EIF is aiming to generate approximately €145 billion in investments for businesses. The EIB is awaiting approval for this initiative from the 27 EU finance ministers, which is expected to take place next month. This strategic move by the EIB directly supports broader European Union strategic priorities. The European Commission, as the EU’s main executive body, sets priorities for 2024-2029. Among these are Competitiveness and Security and defence. The EIB's investment in technology and defence directly aligns with these overarching EU goals, demonstrating how European financial institutions contribute to the EU's vision for a stronger, more secure, and technologically advanced Europe.---Join Newnex - The Exclusive VC &amp;LP Institutional Investors Only Platform to Connect, Syndicate, and Co-Invest Directly Without Intermediaries <a href="https://newnex.io/" rel="noopener noreferrer" target="_blank">https://newnex.io</a>

 European Investment Bank is poised to invest €70 billion into Europe's technology sector by 2027.

On August 7, 2025, President Trump issued an executive order encouraging expanded access to private equity and other alternative investments in 401(k) plans. The Order directs the Department of Labor (DOL), in coordination with the Securities and Exchange Commission (SEC) and the Treasury, to facilitate greater availability of these asset classes to 401(k) investors. While the Order does not change ERISA’s substantive requirements, it signals a significant policy shift and opportunity for asset managers. Five Immediate Action Items for Managers, according to Ropes &amp; Gray LLP 1. Act Now, Don’t Wait for Further Guidance:&nbsp;&nbsp;&nbsp;&nbsp;The Order is a call to action for rapid innovation. Managers should begin product development immediately to capitalize on the momentum, remaining flexible to adapt as further guidance emerges. 2. Assess and Build Capabilities:&nbsp;&nbsp;Managers must evaluate their current capabilities and identify what needs to be developed to serve 401(k) investors, such as establishing or partnering with trust companies for collective investment trusts (CITs) and sourcing ongoing investment opportunities. 3. Address Liquidity and Valuation Challenges:&nbsp;&nbsp;401(k) plans have unique liquidity needs. Managers must create products that can handle frequent participant transactions and provide consistent daily net asset value (NAV) reporting, especially when alternatives are included as a sleeve in target date funds (TDFs). 4. Leverage TDF Provider Relationships:&nbsp;&nbsp;&nbsp;Asset managers should form or strengthen relationships with TDF providers or design products that can integrate into multiple TDFs, enabling broader exposure to alternatives for plan participants. 5. Prioritize Fiduciary Compliance:&nbsp;&nbsp;&nbsp;&nbsp;All product structures must ensure ERISA fiduciary compliance at every level, supporting plan fiduciaries in making prudent and well-documented investment decisions. Five Key Takeaways from the Executive Order 1. Affirmative Stance on Alternatives:&nbsp;&nbsp;&nbsp;&nbsp;The Order reframes access to alternatives as an affirmative right for plan participants, urging fiduciaries to consider these options rather than avoid them due to novelty or perceived risk. It may also lead to rescinding prior guidance that discouraged alternatives. 2. Focus on Reducing Litigation Risk:&nbsp;&nbsp;&nbsp;&nbsp;The Order acknowledges litigation risk as a barrier and instructs the DOL to prioritize actions that may curb ERISA litigation, aiming to make plan sponsors more comfortable with offering alternatives. 3. Neutral Approach to Asset Types:*&nbsp;&nbsp;&nbsp;The Order is agnostic regarding types of alternative assets, allowing for a wide range of investments—private funds, real estate, cryptocurrencies (via actively managed vehicles), commodities, infrastructure, and lifetime income products—so long as fiduciary processes are followed. 4. Potential for Safe Harbors:&nbsp;&nbsp;&nbsp;&nbsp;The DOL is directed to consider new safe harbors for offering alternatives, which could provide additional comfort to managers and fiduciaries, though managers are encouraged to move forward without waiting for these to materialize. 5. DOL in the Lead, with SEC and Treasury Support:&nbsp;&nbsp;While the SEC and Treasury are to collaborate, the DOL will take the lead in regulatory guidance, potentially accelerating the process for bringing new alternative products to the 401(k) market. The Order is expected to spur innovation and expand investment options in 401(k) plans, while providing a more supportive regulatory environment for plan sponsors and asset managers considering alternatives. It signals a shift toward broader acceptance of alternative assets in retirement plans, provided fiduciary standards are maintained. Read the full article at Ropes &amp; Gray LLP <a href="https://www.ropesgray.com/en/insights/alerts/2025/08/planning-to-take-advantage-of-executive-order-on-alternatives-in-401k)." rel="noopener noreferrer" target="_blank">https://www.ropesgray.com/en/insights/alerts/2025/08/planning-to-take-advantage-of-executive-order-on-alternatives-in-401k</a> Disclaimer: This article is an analysis intended for informational purposes only and does not constitute investment advice. Join Newnex - The Exclusive VC Institutional Investors Only Platform to Connect, Syndicate, and Co-Invest Directly Without Intermediaries <a href="https://newnex.io/" rel="noopener noreferrer" target="_blank">https://newnex.io</a>

401(k) Pension Plans allowed greater access to Private funds and Crypto - learn more

August 13, 2025 – Korea Investment Partners (KIP), one of South Korea’s leading venture capital and private equity firms, has invested $10 million in SpaceX. While relatively small compared to the multi-billion-dollar rounds the company has attracted in recent years, the move signals growing international participation in the space sector’s most valuable private company. KIP’s entry comes as SpaceX is estimated to be valued at around $400 billion, placing it among the most valuable privately held enterprises in the world. Other Major Investors in SpaceXSpaceX’s investor base combines high-profile institutional backers, strategic technology funds, and early-stage venture capital pioneers:<ul><li>Elon Musk – retains a controlling interest exceeding half the company’s equity, ensuring founder-led strategic direction.</li><li>Founders Fund – long-term backer with a significant early stake.</li><li>Fidelity Investments – one of the largest institutional investors in SpaceX.</li><li>Alphabet (Google) – entered through a joint investment with Fidelity, securing a meaningful share.</li><li>Baillie Gifford – UK-based fund with positions in multiple Musk-led ventures.</li><li>Valor Equity Partners – a growth equity player with early commitments.</li><li>Sequoia Capital – joined in later rounds to bolster capital for scaling operations.</li><li>Draper Fisher Jurvetson – one of the earliest venture supporters of the company.</li><li>Gigafund – dedicated to backing SpaceX and related ventures.</li><li>Vy Capital – significant private investment group with deep ties to Musk’s companies.</li><li>RIT Capital Partners – a London-listed investment trust providing indirect public exposure.</li><li>Select public funds and ETFs – provide fractional indirect access for retail investors.</li></ul> SpaceX Remains a Magnet for CapitalValuation and Market LeadershipSpaceX has reached a valuation rarely seen for a private enterprise, driven by two dominant businesses — Starship, designed for deep-space missions and high-volume cargo transport, and Starlink, its rapidly expanding satellite internet service. Together, these form a vertically integrated aerospace and telecommunications ecosystem with both commercial and governmental demand. Investor Profile and Strategic AdvantagesThe investor mix is deliberately balanced between:<ul><li>Institutional anchors providing stability and long-term commitment.</li><li>Relationship-driven funds with access to secondary markets, enabling liquidity without compromising control.</li><li>Global investors from multiple continents, reflecting the cross-border appeal of the sector.</li><li>Public fund vehicles extending limited access to retail markets.</li></ul>Musk’s controlling stake allows the company to pursue transformative projects without short-term market pressure — an advantage in capital-intensive industries. Commercial MomentumStarship’s rapid development and Starlink’s accelerating subscriber growth are reshaping space economics. Starlink’s recurring subscription model complements the more cyclical, contract-based launch business, creating a dual-engine growth profile. SpaceX’s launch cadence now surpasses all other players in the industry, setting new operational benchmarks. IPO and Liquidity ProspectsWhile an IPO for the parent company is unlikely in the near term, a spin-off of Starlink into a separately listed entity remains a realistic scenario. Such a move could unlock investor access while insulating the core space exploration business from public market volatility. Risks and Headwinds<ul><li>Geopolitical and regulatory oversight due to the dual-use nature of space technologies.</li><li>Capital expenditure demands that require sustained investor confidence.</li><li>Competitive pressure from established aerospace firms and emerging private players.</li></ul> Strategic Patience May Pay OffKIP’s $10 million allocation is as much a statement of alignment with SpaceX’s long-term vision as it is a financial investment. For global investors, SpaceX represents a unique convergence of frontier technology, recurring revenue potential, and national strategic relevance. The company’s ability to retain founder control, attract a diversified global investor base, and execute on ambitious technological roadmaps places it in a category few can match. Over the next decade, the balance between visionary risk-taking and operational discipline will determine whether SpaceX can turn its unmatched technical lead into enduring dominance across both space transport and global communications. Financial Outlook and Scenario AnalysisSpaceX’s forward trajectory can be understood through its two main revenue drivers — Starlink and launch services — alongside emerging opportunities in in-space logistics and planetary exploration. Revenue Projections (2025–2032, USD billions) 2025: $8.25B → 2032: $27B (Base Case)<ul><li>Starlink: ~3.5M subscribers in 2025, growing toward 15M by 2032, with average monthly revenue per user starting at ~$75 and rising in enterprise, aviation, and maritime segments.</li><li>Launch Services: ~130 launches in 2025 generating ~$5B, scaling gradually as Starship enters regular service, enabling heavier payloads at lower cost.</li><li>Other Revenues: Government exploration contracts, lunar infrastructure projects, and commercial in-space servicing expected to expand late in the decade.</li></ul> Scenario Outlook<ul><li>Bull Case: Starship achieves rapid flight cadence by 2029, Starlink surpasses 20M subscribers, and government contracts scale. Revenues could exceed $40B by 2032, pushing valuation toward $800B–$1T.</li><li>Base Case: Balanced Starlink and launch growth, with exploration contracts adding incremental billions. Revenues reach ~$27B by 2032, supporting a valuation of $500B–$650B.</li><li>Bear Case: Technical or regulatory headwinds slow Starlink adoption and delay Starship. Revenues land near $18B by 2032, implying a valuation of $200B–$300B.</li></ul> Key Growth Drivers to Watch<ol><li>Starship’s operational cadence and reusability, which will dictate launch economics.</li><li>Enterprise adoption of Starlink, particularly in high-margin sectors like aviation and defense.</li><li>Multi-year government and defense partnerships that provide stable, large-scale contracts.</li><li>Regulatory access to high-population international markets.</li><li>Timing and structure of a potential Starlink spin-off to unlock value while preserving control.</li></ol> In every scenario, SpaceX’s outlook is anchored by its technological lead and diversified revenue streams. The bull case hinges on flawless execution of Starship and rapid Starlink penetration into enterprise markets. The bear case, while materially lower in value, still leaves SpaceX as one of the most strategically significant companies in aerospace and communications by 2032. Disclaimer: This article is an analysis intended for informational purposes only and does not constitute investment advice. Join Newnex - The Exclusive VC Institutional Investors Only Platform to Connect, Syndicate, and Co-Invest Directly Without Intermediaries <a href="https://newnex.io/" rel="noopener noreferrer" target="_blank">https://newnex.io</a>

Korea Investment Partners Makes Strategic $10 Million Entry into SpaceX

In the first half of 2025, the U.S. venture capital landscape revealed a stark divide, with just 12 firms securing over 50% of all venture capital raised, according to PitchBook’s analysis. This concentration underscores a growing trend where elite, multi-strategy firms dominate fundraising, while smaller and first-time fund managers face significant hurdles. Leading the pack, Founders Fund, co-founded by Peter Thiel, raised an impressive $4.6 billion in new funds, surpassing the combined total of $1.8 billion raised by 44 first-time fund managers, as reported in the Q2 2025 PitchBook-NVCA Venture Monitor. The top 30 firms accounted for 74% of the total capital raised, highlighting the bifurcation between large, established players and smaller, boutique funds. The fundraising environment remains challenging, particularly for new entrants. The median time to raise a venture fund hit a record 15.3 months in 2025, per the PitchBook-NVCA Venture Monitor, reflecting prolonged fundraising timelines. Limited partners (LPs), still overexposed to venture capital due to limited exits over the past two years, are cautious about new commitments, especially to first-time managers.Meanwhile, major players are poised for an even busier second half. Reports indicate that Andreessen Horowitz is in discussions to raise a fund potentially as large as $20 billion, with Khosla Ventures and Menlo Ventures also planning multi-billion-dollar funds, according to the Financial Times. This activity signals continued momentum for the industry’s heavyweights. However, not all is rosy for the venture ecosystem. Even established firms face challenges, as seen with partners like Sequoia’s Matt Miller and NEA’s Vanessa Larco launching their own ventures. These moves reflect confidence in new opportunities but also highlight the difficulty of securing LP support in a market where distributions remain low. Source: PitchBook, Financial Times Newnex Is The Exclusive Institutional Investors Only Platform to Connect, Syndicate, and Co-Invest Directly and Privately - Join for Free <a href="https://newnex.io" rel="noopener noreferrer" target="_blank">https://newnex.io</a>

12 elite VC firms hauled over 50% of the entire funds raised in Q1 2025

Venture capital (VC) investment sits at the heart of global innovation, funding the growth of startups that fuel technological progress and shape economic futures. As of August 2025, the venture capital landscape is being reinvented, driven by sectoral breakthroughs, shifting investor profiles, and a rapidly evolving global context. This article offers a thorough overview of current VC trends, explores the factors behind these changes, and outlines what stakeholders can expect moving forward. The State of Venture Capital in 2025 Venture capital has always been both a mirror and catalyst of broader innovation trends. In recent years, navigating persistent market volatility, recalibrating valuations, and the rise of breakthrough technologies like artificial intelligence have fundamentally changed how, where, and why capital is deployed. As VC adapts to these shifts, both challenges and fresh opportunities are emerging for investors, founders, and the wider ecosystem. Investment Volatility but Growing Optimism: Following a period of correction and cautious investing in 2023 and 2024, global venture activity is gradually regaining pace. Funding volumes rebounded in early 2024 but have remained somewhat volatile, with total global VC investment projected to rise from approximately $301.8 billion in 2024 to about $364.2 billion by the end of 2025. Revival of Exits: The IPO and merger &amp; acquisition (M&amp;A) markets regained momentum in late 2024, with expectations for continued improvement in exit activity throughout 2025. This is streamlining returns for funds and offering stronger incentives for new investments. Disciplined Valuations:ur After over-inflated valuations in the prior cycle, the recent correction has helped reset expectations, creating more realistic investment opportunities and reducing the frequency of down rounds. Sector-Specific Analysis Artificial Intelligence: AI continues to dominate, drawing about one-third of all global venture funding. Investment is concentrating in generative AI solutions, infrastructure tools, and vertical applications, a sign of the sector’s maturity and continued promise.Deep Tech &amp; Robotics: In 2025, <a href="https://govclab.com/2025/04/08/q2-2025-venture-trends-results/)" rel="noopener noreferrer" target="_blank">Deep Tech &amp; Robotics investment</a> has even outpaced AI in some quarters, reflecting growing demand for automation and resilient supply chains.Healthcare &amp; Biotech: Venture activity remains strong in healthcare, particularly in AI-driven diagnostics, digital health platforms, and biotech innovation for personalized medicine.Green Technologies &amp; Cleantech: Despite a dip in 2024, cleantech and green investments are rebounding, aligned with global ESG mandates and accelerated climate goals.Fintech: Financial technology is expanding, particularly in emerging markets, as startups leverage embedded finance and AI-powered compliance tools. Regional DynamicsNorth America remains the foundation of global VC funding, with hubs like Silicon Valley, but also rising centers including Austin and Miami. <a href="https://www.goingvc.com/post/a-year-in-review-the-state-of-venture-capital-in-2024)" rel="noopener noreferrer" target="_blank">U.S. investment</a> continues to focus on AI and green technologies.Europe saw a funding slowdown in 2024 but maintains strengths in AI, fintech, and cleantech, with the UK and Germany as notable innovation hubs.Asia’s overall investment dropped, mostly due to China, but India and Southeast Asia posted resilient growth in areas like fintech and sustainable urban solutions.Latin America is a standout, recording double-digit growth in venture activity, especially in fintech, e-commerce, and healthtech sectors. Investment Stages &amp; Deal Structures Seed and Early-Stage: There is a resurgence of seed and early-stage backing, with average deal sizes increasing by 35% year-over-year, indicating both investor confidence and the emergence of new entrepreneurial talent.Later-Stage: Larger rounds are more selective, with investors increasingly seeking clear paths to profitability.Evolving Deal Terms: More deals feature pay-to-play provisions and ESG terms, while alternative funding models like equity crowdfunding gain traction. Investor Profiles and Capital Sources Family Offices &amp; Sovereign Wealth Funds: These players are fueling much of the new capital, with long-term, innovation-driven mandates—particularly in AI and life sciences.Institutional Investors: Pension and insurance funds are scaling up allocations to VC, diversifying portfolios for higher returns.Corporate Investment: Technology giants are active through venture arms, often driving mega-rounds in AI and infrastructure.Democratic Capital: A trend toward democratization is visible, with more female-led funds and <a href="https://www.allvuesystems.com/resources/top-trends-in-venture-capital/)." rel="noopener noreferrer" target="_blank">diverse limited partners</a> Technological Impact: VC Adopts AI VC firms themselves are increasingly leveraging AI for sourcing deals, conducting due diligence, and portfolio monitoring. This not only boosts efficiency but also levels the playing field for emerging firms. However, it also raises regulatory scrutiny regarding algorithmic transparency and data privacy. Economic and Geopolitical Influences Interest Rate Sensitivity: Higher rates have made investors more cautious, but expected interest rate cuts could fuel renewed activity.Geopolitical Risk: Uncertainty related to global tensions, supply chain disruption, and cybersecurity is influencing where capital flows.Correction and Efficiency: The shakeout of 2022–2024 led to more disciplined investment practices, with a strong focus on capital efficiency and measurable growth. Future OutlookThe next phase of venture capital is likely to be marked by a measured optimism. Expectations for 2025 include a continued resurgence in AI and healthcare, a rebound in cleantech, renewed strength in global IPO and M&amp;A markets, and expanding participation from new geographies and types of investors. Diversification, discipline, and technological leverage will likely define the funds and founders who thrive in this environment. Venture capital in 2025 stands at a crossroads: balancing the promise of new technologies and markets with the realities of economic discipline and global complexity. For stakeholders—whether investors, founders, or policy makers—the key to success will be adaptability, strategic foresight, and a commitment to driving value amid ongoing change.---Newnex — Empowering Institutional Investors to Connect, Syndicate, and Co-Invest Directly - Join Newnex www.newnex.io

Venture Capital Trends in 2025: Navigating Transformation in a Dynamic Landscape

SoftBank Group has kicked off fiscal 2025 with a dramatic upswing, posting a robust net profit of 421.8 billion yen ($2.87 billion) in the first quarter. This surge underscores a remarkable financial turnaround for the Japanese conglomerate, propelled by a bold investment strategy centered on artificial intelligence. AI Investment Surge Powers ResultsAt the heart of SoftBank’s resurgence is a sweeping commitment to artificial intelligence. The group is at the helm of a record-breaking $40 billion funding round for OpenAI, the creator of ChatGPT, pledging $22.5 billion by year’s end. This alone marks one of the largest private technology investments ever, inflating OpenAI’s valuation to $300 billion, with insiders suggesting it could climb as high as $500 billion.Masayoshi Son, SoftBank’s visionary founder, is doubling down on AI infrastructure with initiatives like the $500 billion Stargate project. This ambitious effort aims to construct sprawling data centers across the U.S., positioning SoftBank as the industry’s organizer and a central force in the global AI ecosystem. Strong Performance Across SegmentsSoftBank’s return to profitability is not solely due to new bets; it has also seen strong gains from its stakes in market leaders such as Nvidia and other AI-related ventures. The once-troubled Vision Funds, which had reported cumulative investment losses of $475 million as recently as March, are now showing clear signs of recovery.The company has also taken strategic steps to fuel its investment engine, raising $4.8 billion in July through partial divestment of its T-Mobile stake. According to analysts, SoftBank is well-positioned to leverage asset-backed financings—potentially using equity in other holdings—to secure further capital for its expansion if needed. Cautious Optimism Amid a Volatile MarketDespite its recent success, SoftBank’s journey remains fraught with risk. Its exposure to numerous privately held, and often volatile, tech ventures means profits may continue to fluctuate wildly. The tremendous growth in the AI sector has stoked fears of overheated valuations, yet market sentiment remains largely positive: 13 out of 18 analysts rate the stock a “buy” or “strong buy,” according to LSEG.This quarter’s results mark a pivotal shift from a year ago, with SoftBank notching its second straight quarterly profit—and recently, its first annual profit in four years—thanks to resilient telecommunications income and rising startup valuations. SoftBank’s aggressive bets on AI are paying rich dividends, helping to restore its reputation as a pioneering, risk-embracing investor. Yet, as the global tech landscape races forward, investors and observers alike will be watching to see whether the group’s far-reaching vision translates into enduring, sustainable growth.

SoftBank’s Soaring Q1 2025: AI Bets Pay Off as Profit Surges

Hamilton Lane, a leading global private markets investment firm, has announced the launch of the Hamilton Lane Venture Capital and Growth Fund (HLVCG), a new evergreen investment vehicle registered under the Investment Company Act of 1940. The fund targets accredited U.S. investors, including high-net-worth (HNW) individuals, their wealth advisors, and institutional investors, offering access to private venture capital and growth equity investments focused on disruptive technologies and innovative companies. The HLVCG fund is part of Hamilton Lane’s expanding evergreen platform, which now manages over $10 billion in assets under management (AUM). With $117.8 billion in total AUM and more than 260 relationships spanning over 370 investments in the venture and growth equity space, Hamilton Lane leverages its extensive experience to provide investors with institutional-quality opportunities. The fund emphasizes early capital deployment, flexible liquidity options, and portfolio diversification across vintage year, transaction type, manager, strategy, and geography. “This launch marks a significant step in democratizing access to private markets,” said Steve Brennan, Head of Private Wealth Solutions at Hamilton Lane. “The HLVCG fund allows accredited investors to tap into high-growth sectors like AI and disruptive technologies, which are increasingly shaping the global economy.” The fund’s focus on venture capital and growth equity aligns with Hamilton Lane’s view that these areas, particularly AI-driven innovations, will drive significant value creation in the private markets over the next four to five years. The HLVCG fund builds on Hamilton Lane’s broader evergreen strategy, which includes funds like the Global Private Assets Fund, Private Assets Fund, Senior Credit Opportunities Fund, and recently launched infrastructure and secondary funds. The platform, initiated in 2019, has grown to serve hundreds of investors globally, with a net asset value of approximately $8.1 billion as of August 31, 2024. Market analysts see the launch as a strategic move to capture the growing interest in private markets among retail and HNW investors. Hamilton Lane’s emphasis on innovative investment structures and technology aligns with industry trends, particularly as fundraising faces challenges and competition intensifies. The firm notes that a rebound in exit activity will be critical for sustained fundraising momentum, with the U.S. market expected to remain attractive due to favorable macroeconomic conditions. The HLVCG fund’s minimum investment thresholds and flexible redemption options make it accessible to a broader investor base, though specific details on minimums were not disclosed in the announcement. The launch follows Hamilton Lane’s recent successes, including the $615 million close of its Venture Access Fund in February 2025 and the introduction of infrastructure and secondary evergreen funds earlier this year. As private markets reach an inflection point, Hamilton Lane’s focus on venture capital, growth equity, and innovative structures positions it to meet the evolving demands of investors. The HLVCG fund is poised to capitalize on long-term growth trends, offering a compelling opportunity for those seeking exposure to the dynamic U.S. venture capital landscape. Disclaimer: The views expressed in this article are based on publicly available information and do not constitute investment advice. ----Join Nenwnex — the trusted and verified network for VCs, LPs, and venture-scale startups. Connect, collaborate, and drive reference-based private deal-making and strategic networking. Register on <a href="http://www.newnex.io/" rel="noopener noreferrer" target="_blank">www.newnex.io</a>

Hamilton Lane Launches U.S. Venture Capital and Growth Evergreen Fund

Three decades ago, Venture Capital Trusts (VCTs) were launched with a clear mission: to fuel innovation and entrepreneurship across the UK by connecting private investors with early-stage, high-growth companies. As VCTs celebrate their 30th anniversary in 2025, let’s look at how they’ve changed, the numbers behind their impact, and what the future holds. The Origins and Purpose of VCTsVCTs were introduced to Parliament in 1994 by then-Chancellor Kenneth Clarke. The goal was twofold: to help build a thriving venture capital industry in the UK and to support innovation by making it easier for small, ambitious businesses to access funding. The government offered generous tax incentives—upfront income tax relief of 30% and tax-free dividends—to encourage individuals to invest in these higher-risk ventures. How VCTs Have Grown and ChangedFrom a handful of funds in the mid-1990s, the VCT market has expanded dramatically. Today, there are over 45 active VCTs managing more than £6.3 billion in assets, supporting around 1,600 startups and scale-ups across the country. These companies now employ over 100,000 people, demonstrating the scheme’s significant contribution to job creation and economic growth. VCTs have backed businesses that have become household names, including Zoopla, Graze, and Quantexa. For example, Quantexa—a company using AI to help banks detect financial crime—grew from a small startup in 2017 to a business valued at over £2 billion in 2025, with more than 600 employees. The focus of VCT investment has shifted over the years. While the original aim was broad, today’s VCTs increasingly target technology, healthcare, fintech, and other innovative sectors. This shift mirrors the UK’s emergence as a global leader in these industries. Tax Incentives and Investor AppealVCTs remain attractive to investors, especially those seeking tax-efficient income and diversification. The key benefits include:<ul><li>30% upfront income tax relief on investments up to £200,000 per tax year (if shares are held for at least five years)</li><li>Tax-free dividends</li><li>No capital gains tax on profits from selling VCT shares</li></ul> These incentives, combined with the squeeze on pension allowances and higher dividend taxes, have kept demand high. In 2023/24, VCTs raised £882 million—the third-highest annual fundraising on record. VCTs have weathered economic uncertainty, regulatory changes, and shifting investor expectations. The government’s decision to extend VCT tax reliefs until at least 2035 provides much-needed stability and signals ongoing support for the sector. Looking forward, VCTs are expected to play an even bigger role in supporting the UK’s innovation economy. The focus on funding early-stage tech, health, and climate companies is likely to intensify, especially as the government invests more in research and development and seeks to drive economic growth through entrepreneurship. If you’re considering VCTs, here’s how to get started:<ul><li>Assess your risk tolerance: VCTs invest in early-stage businesses, which can be volatile and carry higher risks.</li><li>Think long-term: To benefit from tax relief, you’ll need to hold VCT shares for at least five years.</li><li>Diversify: Consider spreading your investment across several VCTs to reduce risk and access a broader range of companies.</li><li>Consult a financial adviser: VCTs can be a powerful tool for tax planning and retirement income, but professional advice is key to making the most of them.</li></ul> VCTs have come a long way in 30 years, evolving into a vital part of the UK’s investment landscape. They offer investors a unique way to support the country’s most exciting startups while enjoying significant tax benefits. As the UK continues to champion innovation, VCTs are set to remain at the heart of the nation’s growth story for years to come.

Venture Capital Trusts' turns 30: How VCTs Have Evolved and What’s Next

Michael Novogratz’s Galaxy Ventures Fund I LP is making headlines for beating expectations in a tough market. The fund, which zeroes in on early-stage crypto and blockchain startups—especially those working on payments and stablecoins—is now on track to close with between $175 million and $180 million by the end of June, well above its original $150 million target. The plan is to use this capital to back a portfolio of about 30 startups, offering a much-needed boost to the sector during a period when venture capital for crypto has been hard to come by. Why This Fundraise Stands OutLet’s put the numbers in perspective. The initial close for Galaxy Ventures Fund I was $113 million in June 2024. Since then, the fund has attracted more interest from family offices, high-net-worth individuals, and even Galaxy itself. The fund’s portfolio already includes names like Ethena (synthetic dollars), M^Zero (stablecoin DeFi protocol), Monad (layer-1 blockchain), Plume (tokenized asset chain), and Renzo (Ethereum restaking via EigenLayer). This fundraising success is especially notable because the broader crypto venture capital scene is still recovering from a major pullback. In 2024, VCs invested $11.5 billion in crypto and blockchain startups across 2,153 deals—a slight uptick from $10 billion in 2023, but still far below the $30 billion peak of 2022. In the U.S., crypto VC funding dropped 22% in Q1 2025 to about $1.3 billion, as investors shifted their focus toward artificial intelligence, which absorbed 58% of global VC dollars during the same period. What’s Driving the Shift?Several big trends are shaping the current landscape:<ul><li>AI is dominating VC funding: In Q1 2025, AI startups captured nearly 58% of global venture capital dollars, compared to just 28% a year earlier. In North America, that figure jumps to 70%.</li><li>Crypto VC is rebounding, but unevenly: Global crypto VC funding hit $4.8 billion in Q1 2025—the highest since Q3 2022—but nearly half of that came from a single $2 billion investment in Binance by Abu Dhabi’s MGX, suggesting much of the capital is concentrated in fewer, larger deals.</li><li>Investors are more selective: The days of funding projects based on a white paper alone are over. Founders now need real traction, and deal sizes have shrunk nearly 90% since 2018.</li></ul> Novogratz’s Take on the MarketMike Novogratz remains optimistic about crypto’s long-term potential. He recently described Bitcoin as a “report card on financial stewardship,” suggesting that in times of uncertainty, it acts both as a safe haven and as a long-term bet on a new financial system. However, he also points out that crypto adoption needs a period of calm to truly thrive—adoption doesn’t flourish in chaos, and new buyers tend to retreat during turbulent times. If you’re an entrepreneur or investor in the crypto space, here are a few things to keep in mind:<ul><li>Focus on real-world utility: Projects that make payments cheaper, expand access to financial markets, or build new blockchain infrastructure are more likely to attract funding.</li><li>Be prepared for scrutiny: Investors want to see traction, not just ideas. Demonstrate real progress and utility.</li><li>Watch the AI trend: With so much capital flowing into AI, consider how your project might intersect with or benefit from AI advancements.</li></ul> Imagine you’re building a startup like Ethena, which issues synthetic dollars, or Monad, a new layer-1 blockchain. Galaxy Ventures’ backing provides not just capital, but also access to a network of experts, hands-on product feedback, and brand-building support. This kind of partnership can make a big difference in a competitive and selective funding environment. In short, Galaxy Ventures Fund I’s fundraising success is a bright spot in a cautious market. It signals that while crypto VC isn’t back to its 2022 highs, there’s still strong conviction—and opportunity—for teams building the next wave of blockchain innovation. --Join Newnex – The VC Institutional Network &amp; Co-Investment Platform Connect with authenticated venture capital and LP investors, syndicate deals, and directly and privately co-invest and syndicate via Newnex, the trusted platform for institutional investors.Free Sign-UpVerified Access OnlyStreamlined Syndication &amp; Deal Discovery Start building strategic VC partnerships today at <a href="http://www.newnex.io/" rel="noopener noreferrer" target="_blank">www.newnex.io</a> – Sign up free and get authenticated.

 Galaxy Ventures Fund I LP Surpasses $150M Goal Amid Crypto VC Slowdown

Larry Fink, CEO of BlackRock, has issued a sobering warning about the state of the U.S. economy, suggesting that the country is "very close, if not already in, a recession." His comments come at a time when financial markets are grappling with heightened volatility, and economic indicators are flashing warning signs that have left investors nervous about the future. The Impact of Tariffs on the Economy Fink has attributed much of the economic upheaval to the sweeping tariffs implemented by former President Donald Trump. These policies, which targeted not only geopolitical rivals like China but also long-standing allies, have disrupted global supply chains and contributed to rising costs across several industries. For example, the construction sector has been hit hard, with reports suggesting that the average cost of building a new home could increase by as much as 26% due to tariff-related expenses. These inflationary pressures are further straining already-tight household budgets and heightening the Federal Reserve's policy challenges. As inflation remains elevated, hopes for aggressive interest rate cuts to stimulate economic growth are fading. Market Sentiment: A Wave of Caution The stock market has not been immune to the effects of growing uncertainty. The S&amp;P 500 recently experienced its steepest two-day drop since the COVID-19 crash in March 2020. On top of that, consumer sentiment has plummeted, with April 2025 recording an 11% drop — marking the second-lowest level since 1952.&nbsp; Investor behavior reflects this unease, with BlackRock reporting an all-time high of $950 billion in cash accounts. While the firm saw strong inflows of $84 billion in the first quarter of the year, this cautious approach signals that many investors prefer to hold onto cash during turbulent times rather than risk losses in equity markets. Long-Term Investment Opportunities Amid Uncertainty While the short-term outlook may be gloomy, Fink believes that the market downturn presents an opportunity for patient investors. He explained that the turbulence might be "more of a buying opportunity than a selling opportunity" over the long term. Even as he warned that stocks could see further declines of up to 20%, Fink emphasized the importance of focusing on "megatrends" like artificial intelligence and infrastructure development. AI-related investments, particularly in building the infrastructure required for this transformative technology, continue to offer compelling growth potential. These sectors could serve as refuges for investors seeking to capitalize on long-term economic shifts, even as broader market conditions remain challenging. Navigating the Recession Landscape Larry Fink's warnings underscore the complexity of the current economic environment. With rising inflation, tariffs, and recession fears converging, investors are adopting a cautious approach to protect their portfolios. However, Fink's emphasis on long-term opportunities in key sectors serves as a reminder that periods of uncertainty often give rise to future growth. As the world's largest asset manager, BlackRock's insights are a bellwether for global financial sentiment, and Fink's observations should not be taken lightly. For those willing to weather the storm, this might be a moment to look beyond market volatility and focus on investments aligned with transformative economic trends. --Join Newnex – The VC Institutional Network &amp; Co-Investment Platform Connect with authenticated venture capital and LP investors, syndicate deals, and directly and privately co-invest and syndicate via Newnex, the trusted platform for institutional investors.Free Sign-UpVerified Access OnlyStreamlined Syndication &amp; Deal Discovery Start building strategic VC partnerships today at <a href="http://www.newnex.io" rel="noopener noreferrer" target="_blank">www.newnex.io</a> – Sign up free and get authenticated.

BlackRock's Larry Fink Warns of Recession: Market Sentiment and Investment Outlook

Bessemer Boosts India Focus with $350 Million AI and Startup Fund

Indonesia has officially launched Danantara, a new multi-billion-dollar sovereign wealth fund aimed at managing state assets valued at over $900 billion. Modeled after Singapore's highly successful Temasek, Danantara is designed to consolidate Indonesia's state-owned enterprises (SOEs) and channel investments into key sectors to boost economic growth. This ambitious initiative is part of President Prabowo Subianto's vision to achieve an annual economic growth rate of 8%, a target that has not been met since the 1990s. By leveraging state assets and attracting foreign investment, Danantara seeks to transform Indonesia's economic landscape. Goals and Objectives of Danantara Danantara's primary mission is to accelerate Indonesia's economic development by investing in high-impact projects across diverse industries. The fund will focus on sectors such as: - Renewable energy: Supporting Indonesia's transition to sustainable energy sources.- Advanced manufacturing: Enhancing industrial capabilities and technological innovation.- Downstream industries: Adding value to raw materials and boosting exports.- Food production: Strengthening food security and agricultural productivity.- Artificial intelligence: Investing in cutting-edge technology to drive innovation. President Prabowo has emphasized that Danantara will not only serve as a financial powerhouse but also act as a development tool to promote sustainable and inclusive growth. By investing in these priority areas, the government aims to create jobs, improve infrastructure, and position Indonesia as a leader in global sustainability and technology trends. Funding and Management of Danantara Danantara will kick off with an initial investment of $20 billion in 2025, sourced from state assets, government-owned shares, and budgetary reallocations. Over time, the fund aims to manage more than $900 billion in assets, which would make it one of the world's largest sovereign wealth funds, rivaling established players like Singapore's GIC. However, some experts have raised doubts about the feasibility of reaching this valuation, given that Indonesia's state-owned enterprises were valued at $637.5 billion in 2023. The fund will report directly to President Prabowo and be overseen by a supervisory board. Muliaman Hadad, a former deputy governor of Bank Indonesia, has been appointed to lead Danantara. The government is expected to finalize the regulatory framework for the fund in the coming months to ensure transparency and accountability. Potential Impact on Indonesia's Economy If successful, Danantara could have a transformative impact on Indonesia's economy. By investing in critical sectors, the fund aims to: - Drive economic growth: Support President Prabowo's ambitious 8% annual growth target.- Create jobs: Generate employment opportunities through infrastructure and industrial projects.- Attract foreign investment: Enhance Indonesia's appeal to global investors by showcasing strategic investment opportunities.- Improve efficiency: Consolidate state assets under one entity to improve the management and performance of SOEs. Danantara's focus on renewable energy and advanced manufacturing aligns with global trends, potentially positioning Indonesia as a leader in sustainability and technology. Additionally, the fund's investments could help address long-standing challenges such as infrastructure deficits and reliance on raw material exports. Challenges and Criticisms Facing Danantara Despite the optimism surrounding Danantara, the fund faces several challenges and criticisms: - Asset valuation concerns: Critics have questioned whether Indonesia's state-owned enterprises can realistically reach the $900 billion valuation target, given their 2023 valuation of $637.5 billion.- Political interference: Since Danantara will report directly to the president, there are concerns that the fund could become a tool for political patronage rather than a genuine driver of economic growth.- Public backlash: The government's decision to reallocate $20 billion from the national budget to fund Danantara has sparked protests, particularly among students, who argue that the funds should be used for education and social services.- Transparency and governance: Ensuring transparent management and avoiding mismanagement will be critical to the fund's success. These challenges highlight the need for robust oversight, clear regulations, and public engagement to build trust in Danantara's mission. Can Danantara Transform Indonesia's Economy? Indonesia's launch of Danantara marks a bold step toward transforming its economy and achieving President Prabowo's vision of 8% annual growth. By consolidating state assets and investing in key sectors, Danantara has the potential to drive innovation, create jobs, and attract foreign investment. However, its success will depend on addressing concerns about asset valuation, political interference, and transparency. If Danantara can navigate these challenges, it could play a pivotal role in elevating Indonesia's global economic standing and delivering sustainable growth for its citizens.--Join the Future of Venture Capital Investing with NewnexNewnex is the platform focused on institutional investors where verified startups, VCs, and LPs converge for private fundraising and investment through trusted references. Centralize your fundraising and investment activities and access the global VC network with just a few clicks. Join for free at <a href="http://www.newnex.io/" rel="noopener noreferrer" target="_blank">www.newnex.io</a>&nbsp; We are digitalizing institutional investing to make VC as accessible as public markets while retaining the uniqueness of private markets. The mission is to unify 5,000+ VC/LP firms with 100,000 startups on a trusted platform for reference-only private deal-making.

Indonesia Launches Danantara: A New Sovereign Wealth Fund to Drive Economic Growth

Passive investing has gained significant traction in recent years, offering a straightforward approach to building wealth that consistently outperforms many professional fund managers. This article explores the benefits of passive investing, its performance compared to active management, and how investors can implement this strategy effectively. The Rise of Passive Investing Passive investing involves tracking a market index or benchmark rather than trying to beat it. This approach has grown in popularity due to its simplicity, low costs, and consistent performance. As of 2025, passive funds account for approximately 20% of the investment industry, representing nearly £280 billion in value. Outperforming Professional Managers One of the most compelling arguments for passive investing is its ability to outperform a large percentage of actively managed funds. Recent data shows that over a 15-year period, 92-95% of professional fund managers fail to beat their passive index benchmarks. This statistic highlights the difficulty of consistently outperforming the market through active management. Benefits of Passive Investing 1. Lower Costs Passive funds typically have significantly lower expense ratios compared to actively managed funds. While active funds may charge 1% or more in annual fees, many index funds and ETFs have expense ratios below 0.1%. 2. Broad Diversification By tracking an entire market index, passive funds provide instant diversification across hundreds or thousands of securities. This reduces the risk associated with individual stock selection. 3. Transparency Passive funds are highly transparent, with investors always knowing exactly which securities they own based on the tracked index. 4. Tax Efficiency Due to their low turnover, passive funds tend to generate fewer taxable events, potentially leading to better after-tax returns for investors. 5. Consistency Passive funds aim to match market returns rather than beat them, providing more predictable performance over time. Implementing a Passive Investing Strategy To implement a passive investing strategy effectively, consider the following steps: 1. Choose Your Asset Allocation Determine the right mix of stocks, bonds, and other assets based on your risk tolerance and investment goals. 2. Select Low-Cost Index Funds or ETFs Look for funds with low expense ratios that track broad market indices such as the S&amp;P 500, FTSE All-Share, or global stock market indices. 3. Regularly Rebalance Periodically adjust your portfolio to maintain your target asset allocation as market movements cause it to drift. 4. Stay Disciplined Avoid the temptation to react to short-term market fluctuations. Stick to your long-term investment plan. 5. Consider Tax-Efficient Accounts Utilize tax-advantaged accounts like ISAs or SIPPs to maximize the tax efficiency of your passive investing strategy. Performance Expectations While past performance does not guarantee future results, historical data provides insight into potential returns. Over the long term, the S&amp;P 500 has delivered average annual returns of approximately 10%. However, it's important to note that returns can vary significantly from year to year. For the five years ending in 2024, a typical passive fund tracking the FTSE All-Share index returned around 16.30% annually, outperforming many actively managed funds during the same period. Despite its many advantages, passive investing is not without challenges: 1. Market Inefficiencies In less efficient markets or during periods of high volatility, active management may have opportunities to outperform. 2. Lack of Downside Protection Passive funds will follow the market down during bear markets, potentially leading to significant losses in the short term. 3. Concentration Risk As certain stocks or sectors become more dominant in an index, passive funds may become overly concentrated in these areas. 4. Impact on Market Dynamics The growing popularity of passive investing has raised concerns about its potential impact on market efficiency and price discovery. Passive investing offers a compelling strategy for investors seeking to build long-term wealth while minimizing costs and complexity. By consistently outperforming a large majority of professional fund managers, passive investing has proven its worth as a core investment approach. As with any investment strategy, it's essential to consider your individual financial goals, risk tolerance, and overall portfolio composition. While passive investing can form the foundation of a solid investment plan, some investors may choose to complement it with selective active strategies or alternative investments to achieve their specific objectives. Ultimately, the simplicity, cost-effectiveness, and long-term performance of passive investing make it an attractive option for many investors looking to grow their wealth over time. --Join the Future of Venture Capital Investing with NewnexNewnex is the platform focused on institutional investors where verified startups, VCs, and LPs converge for private fundraising and investment through trusted references. Centralize your fundraising and investment activities and access the global VC network with just a few clicks. Join for free at <a href="http://www.newnex.io/" rel="noopener noreferrer" target="_blank">www.newnex.io</a>&nbsp; We are digitalizing institutional investing to make VC as accessible as public markets while retaining the uniqueness of private markets. The mission is to unify 5,000+ VC/LP firms with 100,000 startups on a trusted platform for reference-only private deal-making.

Passive Investing: A Simple Strategy to Outperform Professional Fund Managers

President Trump's unexpected announcement of new tariffs on Canada, Mexico, and China has sent shockwaves through global financial markets, with US stock futures plummeting and investors bracing for volatility. The move, which includes a 25% levy on imports from Canada and Mexico and a 10% tariff on Chinese goods, has ignited fears of a full-scale trade war and its potential impact on global economic growth. Market Reaction and Economic Concerns As news of the tariffs spread, US stock futures experienced a sharp sell-off. Dow futures sank over 600 points, while S&amp;P 500 and Nasdaq futures also saw significant declines. This dramatic downturn suggests that Wall Street is preparing for a turbulent opening when markets resume trading. The tariffs' reach extends beyond manufactured goods, with a 10% duty applied to energy imports from Canada, further complicating the trade landscape between the two nations. Economists warn of potential consequences, including higher prices for American consumers on goods ranging from groceries to cars, increased inflationary pressures, and a disproportionate negative impact on foreign economies compared to the US. Global Repercussions and Retaliation The international response to Trump's tariffs has been swift and decisive. Canada quickly announced counter-tariffs of 25% on US goods worth over $100 billion, with Canadian provinces taking the additional step of removing US alcohol from shelves. Mexico has promised to announce retaliatory measures, while China vowed to escalate the issue at the World Trade Organization. These immediate reactions from key trading partners highlight the potential for a rapidly escalating trade war, which could have far-reaching consequences for global commerce and diplomatic relations. Cryptocurrency Market Fallout The ripple effects of the tariff announcement have extended to the cryptocurrency market, with Bitcoin plunging below $100,000 for the first time in weeks. The flagship cryptocurrency's drop to $96,821 erased over $600 million from its market cap. This decline was part of a broader crypto market downturn, as investors shifted away from riskier assets amid growing economic uncertainty. Other major cryptocurrencies also suffered losses, with Ethereum and Solana experiencing significant drops. The selloff underscores the cryptocurrency market's vulnerability to geopolitical tensions and macroeconomic factors. Looking Ahead As markets digest the implications of these new tariffs, analysts are closely watching for further developments in global trade relations. The coming days and weeks will be crucial in determining whether these tensions escalate into a full-blown trade war or if diplomatic efforts can lead to a resolution. Investors and businesses alike are advised to stay informed and prepare for potential market volatility as the situation unfolds. The global economic landscape appears poised for significant shifts, with the potential to reshape trade relationships and economic policies for years to come.

The Ripple Effect: Global Markets Reel as Trump's Tariffs Spark Trade War Fears

India is poised for a historic year in its capital markets, with a wave of billion-dollar initial public offerings (IPOs) expected to hit the stock exchanges in 2025. This surge in public listings is set to surpass 2024’s impressive performance, even as economic headwinds and currency fluctuations pose challenges. Mega IPOs to Dominate the Market Investment bankers have identified at least seven companies preparing to launch IPOs valued at $1 billion or more. Among them are high-profile domestic players like online brokerage Groww, fintech giant Pine Labs (backed by PayPal), and eyewear brand Lenskart, which enjoys backing from SoftBank. Additionally, South Korean conglomerate LG is planning to list its Indian subsidiary, adding an international dimension to the listings. This year’s expected IPOs significantly outnumber last year’s three billion-dollar-plus listings, which included Hyundai’s Indian arm and Swiggy, a leading food and grocery delivery service. In 2024, India emerged as Asia’s top IPO market, trailing only the United States in global rankings. Capital Inflows and Market PerformanceAccording to projections from Indian brokerage Motilal Oswal, total equity fundraising through IPOs could surpass $23 billion in 2025, up from $19.6 billion raised across 336 IPOs in 2024. So far, 34 companies have received approvals to raise $4.8 billion, while another 55 companies await regulatory clearance for $11.4 billion in public offerings. “There’s a strong pipeline,” noted Sonia Dasgupta, CEO of the investment banking division at JM Financial, signaling sustained investor interest in Indian markets. Reliance Jio: The Potential Game-ChangerA wildcard in this year’s IPO rush is Reliance Jio, the telecom giant owned by Asia’s richest man, Mukesh Ambani. While Reliance Industries has not provided a definitive timeline for Jio’s public debut, industry insiders speculate that it could take place in the latter half of 2025. If realized, Jio’s IPO could be the biggest of the year. Strong Market Debuts and Domestic Investment SurgeDespite global economic concerns, IPOs in India have generally performed well. A recent study by Bank of Baroda found that 82% of IPOs launched in 2024 saw their stock prices rise post-listing. The strong performance has been fueled by rising domestic investments, as millions of Indian households continue to channel their savings into equity markets. “India is among the most expensive markets,” said Kunal Vora, head of equity research at BNP Paribas, pointing to India’s high price-to-earnings (P/E) multiples of around 20—compared to 14 in other major markets. Local institutional investors have become the backbone of Indian markets, surpassing foreign inflows for the fourth consecutive year. The number of Indians investing in mutual funds has quadrupled from 40 million in 2020 to over 180 million in 2024. This trend has helped sustain India’s high valuations despite global market volatility. Foreign Investment and Economic ChallengesHowever, foreign investors have been pulling back, withdrawing over $30 billion since October 2024. Many global investors remain hesitant due to India’s high stock valuations and broader economic concerns. The Nifty 100 index has dropped 12% since its September 2024 peak, reflecting weak corporate earnings and slowing GDP growth. Although India remains the fastest-growing major economy, GDP growth slowed to 5.4% year-on-year in Q3 2024, marking its lowest rate in nearly two years. The Indian rupee has also weakened against a strong US dollar, particularly following Donald Trump’s return to the US presidency. Cautious Optimism Among PromotersMarket experts note that while many Indian business owners were initially eager to launch IPOs, some are now reconsidering their timelines. Nitin Bhasin, head of institutional equities at Ambit Capital, observed a shift in sentiment: “Many promoters are happy to delay their IPOs by a month or two to gauge market conditions.”Additionally, some major IPOs have struggled post-listing. Hyundai Motor India, for instance, has seen its stock drop 8.7% since its October 2024 debut. Questions have also been raised about the quality of smaller IPOs and whether foreign companies are using the Indian market to withdraw capital rather than reinvest locally. A High-Stakes Year for Indian IPOsWith a robust IPO pipeline and strong domestic investor participation, 2025 is set to be a landmark year for India’s capital markets. However, challenges such as global economic conditions, stock overvaluation, and foreign investor sentiment could influence how these mega listings perform. As the year unfolds, market watchers will keep a close eye on India’s ability to maintain its IPO momentum in the face of economic uncertainty.

India’s IPO Boom in 2025: A Record-Breaking Year for Public Listings

<blockquote>FTV Capital has successfully completed its latest growth equity fundraise, securing $4.05 billion in capital commitments across two complementary funds:</blockquote> 1. FTV VIII: The firm's eighth flagship fund closed oversubscribed at $3.4 billion, surpassing its target and exceeding its predecessor fund FTV VII, which closed at $2.35 billion in March 2022. 2. FTV Ascend I: A new vehicle dedicated to smaller investments, which closed oversubscribed at $651 million. - The new capital allows FTV to support innovative, high-growth companies with equity checks ranging from $20 million to $300 million.- FTV VIII will target investments ranging from $60 million to $300 million.- FTV Ascend I will focus on investments between $20 million and $60 million.- Both funds will make control and minority equity investments in companies across the enterprise and financial technology landscape. FTV Capital's track record:- With this fundraise, FTV has raised over $10.2 billion since its founding in 1998.- The firm has invested over $6.7 billion in 149 portfolio companies.- FTV has realized over $7.4 billion from its investments. - In 2024, FTV deployed a record $1.6 billion and generated over $1.0 billion in realizations.- New investments include Arden, BillingPlatform, Kore.ai, Orbus Software, ParkHub, VALD, and Zema Global.- Significant realizations include Agiloft, Docupace, Egress, and Tango Card. FTV announced several promotions, including: - Karen Derr Gilbert: Expanded role as partner and chief operating officer- Mike Cichowski and Alex Malvone: Named co-heads of FTV Ascend- Brent Fierro and Paul Cabral: Promoted to partners---Join the Future of Venture Capital Investing with NewnexNewnex is the platform focused on institutional investors where verified startups, VCs, and LPs converge for private fundraising and investment through trusted references. Centralize your fundraising and investment activities and access the global VC network with just a few clicks. Join for free at <a href="http://www.newnex.io" rel="noopener noreferrer" target="_blank">www.newnex.io</a>&nbsp; We are digitalizing institutional investing to make VC as accessible as public markets while retaining the uniqueness of private markets. The mission is to unify 5,000+ VC/LP firms with 100,000 startups on a trusted platform for reference-only private deal-making. Disclaimer: The information presented in this article is based on available sources and may not be entirely accurate or up-to-date. We do not guarantee the accuracy of the content, and readers should conduct their own research and consult with financial professionals before making any decisions.

FTV Capital closes $4.05 billion growth fund

<blockquote>Vensana Capital, a Minneapolis-based venture capital firm specializing in medtech investments, has successfully closed its third fund, raising $425 million. This latest fundraising effort brings Vensana's total capital under management to approximately $1 billion.</blockquote> 1. Oversubscribed at its hard cap, indicating strong investor interest2. Focuses on medtech companies at both developmental and commercial stages3. Typically invests $30 million to $35 million per company4. Aims to support startups creating new clinical standards of care and improving healthcare efficiency, accessibility, and cost-effectiveness Vensana's investment strategy has proven successful, as evidenced by:- The acquisition of portfolio company Relievant Medsystems by Boston Scientific for $850 million in 2023- 20% of their investments historically being in Twin Cities-based companies- Supporting companies like CVRx, which has gone public and commercialized an implant for heart failure patients Kirk Nielsen, co-founder and Managing Partner, attributes the efficient fundraising process to investor support and satisfaction with the firm's strategy. He also notes that access to capital remains a challenge for many startups in 2025, highlighting the continued importance of venture capital in the medtech sector.----Join the Future of Venture Capital Investing with NewnexNewnex is the platform focused on institutional investors where verified startups, VCs, and LPs converge for private fundraising and investment through trusted references. Centralize your fundraising and investment activities and access the global VC network with just a few clicks. Join for free at <a href="http://www.newnex.io/" rel="noopener noreferrer" target="_blank">www.newnex.io</a>&nbsp; We are digitalizing institutional investing to make VC as accessible as public markets while retaining the uniqueness of private markets. The mission is to unify 5,000+ VC/LP firms with 100,000 startups on a trusted platform for reference-only private deal-making.---Disclaimer: The information presented in this article is based on available sources and may not be entirely accurate or up-to-date. We do not guarantee the accuracy of the content, and readers should conduct their own research and consult with financial professionals before making any decisions.

Vensana Capital raised $425 million third fund

<blockquote>In a move that's set to reshape the digital pay-TV landscape, Disney and Fubo have announced a groundbreaking merger of their TV streaming services. This strategic alliance will combine Disney's Hulu + Live TV with FuboTV, creating a streaming giant with 6.2 million subscribers and positioning it as the second-largest digital pay-TV provider in North America, just behind YouTube TV's 8 million subscribers.</blockquote> Deal Structure and ManagementUnder the terms of the agreement, Disney will acquire a 70% stake in the combined entity, which will continue to operate under the Fubo publicly traded company name. The current Fubo management team, led by Co-founder and CEO David Gandler, will oversee the operations of the merged business. Both Fubo and Hulu + Live TV will remain available as separate streaming services, offering consumers a choice of platforms. Financial AspectsThe deal includes significant financial commitments from major media players: - Disney, Fox, and Warner Bros. Discovery will make a $220 million aggregate cash payment to Fubo.- Disney will provide Fubo with a $145 million term loan in 2026.- A potential $130 million termination fee is payable to Fubo if the deal fails under certain circumstances. These financial terms highlight the substantial investment and faith major media companies are placing in this streaming consolidation effort. Strategic Impact and New OfferingsThis merger not only consolidates the streaming market but also resolves ongoing litigation between Fubo and Disney regarding the Venu sports streaming service. As part of the agreement, Fubo will create a new Sports &amp; Broadcasting service featuring Disney's networks, including ABC, ESPN, ESPN2, ESPNU, SEC Network, ACC Network, and ESPNEWS. This move is expected to significantly enhance the combined entity's sports content offerings, potentially attracting more subscribers interested in live sports programming. Market ReactionThe announcement of the Disney-Fubo merger sent ripples through the streaming industry, with Fubo's stock price surging nearly 200% in pre-market trading. This dramatic increase reflects investor optimism about the deal's potential to create a formidable player in the digital pay-TV market. However, the merger's completion is subject to several conditions, including regulatory approvals, Fubo shareholder approval, and other customary closing requirements. The market's enthusiastic response underscores the significance of this consolidation in the highly competitive streaming landscape, as investors anticipate the combined entity's enhanced ability to compete with industry giants. As the streaming wars continue to evolve, this merger between Disney and Fubo marks a significant milestone in the industry's consolidation. It remains to be seen how this new powerhouse will reshape the competitive landscape and what innovations it will bring to consumers in the ever-changing world of digital entertainment. --Join the Future of Venture Capital Investing with Newnex Newnex is the platform focused on institutional investors where verified startups, VCs, and LPs converge for private fundraising and investment through trusted references. Centralize your fundraising and investment activities and access the global VC network with just a few clicks. Join for free at <a href="http://www.newnex.io/" rel="noopener noreferrer" target="_blank">www.newnex.io</a> We are digitalizing institutional investing to make VC as accessible as public markets while retaining the uniqueness of private markets. We are on a mission to bring 5,000+ VC/LP firms with 100,000 startups on a trusted, reference-only private deal-making platform.

Disney and Fubo Join Forces in Streaming Powerplay

Europe's venture capital (VC) ecosystem is playing a crucial role in fostering innovation and economic growth across the continent. Over the past decade, VC funds have invested €143.6 billion into more than 26,100 startups, significantly contributing to job creation and economic development. The impact of VC-backed companies on employment is substantial:- Companies supported by VC now employ over 1 million people in Europe- VC-backed firms achieved an 18% job creation rate in 2022, far surpassing the overall European job creation rate of 2%- Private equity and VC-backed companies added 7.2% more jobs in 2022, more than 3.5 times the overall European growth rate- The industry supported 10.9 million workers across the continent at the end of 2022, equating to 5% of the continent's workforce The European VC landscape has shown resilience and growth:- Venture capital investment into European startups reached $63 billion in 2023, invested across over 10,000 funding rounds- Europe's share of global venture capital increased from ~5% two decades ago to 20% in 2023- European VC funds have achieved net returns greater than 20% annually over a 10-year horizon, outperforming many global benchmarks European VC is driving innovation in key sectors:- Fintech, biotech, energy, and environment are major focus areas- €23 billion has been invested by VC in biotech and healthcare since 2014- The Information &amp; Communications Technology (ICT) sector added 13.8% more jobs in 2022, highlighting the industry's growth Despite progress, Europe faces challenges in scaling up its VC ecosystem:- The EU is lagging behind the US in productivity growth and R&amp;D investment- Many successful EU startups move elsewhere for financing, causing the EU to lose out on growth benefits and positive spillovers- The European Innovation Council (EIC) Fund provides equity to startups, but only until their early-growth phase, with investments capped at €15 million To address these challenges and further boost innovation, experts recommend:- Reducing regulatory frictions, especially those deterring pension funds and insurers from investing in VC- Implementing well-designed tax incentives for R&amp;D investments- Consolidating stock markets and reforming insolvency regimes- Giving public financial institutions like the European Investment Fund a more active role in kickstarting VC markets As Eric de Montgolfier, CEO of Invest Europe, states, "With the right support and incentives, [the VC industry] can go much further. That will drive more innovation, more world-leading start-ups, and multiply the rewards for all of Europe." By continuing to nurture its VC ecosystem, Europe can enhance its competitiveness, drive innovation, and ensure its position as a global leader in emerging technologies and sustainable solutions.

European VC funds have invested €143.6 billion into more than 26,100 startups

The Financial Conduct Authority (FCA) has amended investment rules to broaden access to Long-Term Asset Funds (LTAFs), opening new opportunities for retail investors and pension schemes while maintaining safeguards. The changes, effective December 20, 2024, remove barriers that previously limited Non-UCITS Retail Schemes (NURS) from investing in LTAFs. Key amendments include exempting LTAFs from the 15% limit on investments in other collective investment schemes for NURS. This simplification allows NURS to invest in LTAFs without restrictions, potentially increasing retail investor exposure to long-term, illiquid assets such as venture capital, private equity, and infrastructure. Despite easing restrictions, the FCA has retained the 20% cap on a NURS's portfolio exposure to LTAFs. This limit applies globally across holdings in LTAFs, qualified investor schemes, unregulated schemes, and unapproved securities, ensuring diversification and risk management. The changes also introduce new provisions to ensure NURS managers investing in LTAFs can meet redemption obligations, addressing liquidity risks associated with long-term illiquid assets. Sarah Pritchard, Executive Director of Markets at the FCA, emphasized that these rules allow retail investors and pension funds to invest in productive finance while recognizing the risks of long-term investments. For defined contribution pension schemes, the amendments offer greater flexibility to allocate funds into LTAFs, broadening their investment options. The FCA has also aligned third-party valuation requirements for LTAFs with the standards for NURS, streamlining operational processes. These regulatory updates reflect the FCA's commitment to balancing innovation in investment products with robust investor protection. The regulator will continue to monitor the impact of these changes and consider feedback on additional adjustments, such as registration requirements for depositaries and broader access to private market assets. ---Join the Future of Venture Capital Investing with Newnex <a href="https://www.newnex.io/edit/blogs/www.newnex.io" rel="noopener noreferrer" target="_blank">Newnex</a> is redefining venture capital by fostering collaborative and private investing and fundraising between VCs (GPs), Limited Partners (LPs), and Startups. Newnex simplifies syndication and co-investment for institutional investors, with a mission to connect 5,000+ VC and LP firms and 100,000 venture scale startups on a trusted platform for seamless, reference-only private deal-making. Join Newnex for free <a href="http://www.newnex.io/" rel="noopener noreferrer" target="_blank">www.newnex.io</a>---Join SEINET - the exclusive network for tech and science product and industry leaders. SignUp Free <a href="http://www.startupeuropeindia.net/" rel="noopener noreferrer" target="_blank">www.startupeuropeindia.net</a>

FCA Expands LTAF Access for Retail Investors and Pension Schemes

In a significant development in the asset management industry, MetLife Investment Management (MIM) has announced its agreement to acquire PineBridge Investments. This press release details a strategic acquisition that aligns with MetLife's New Frontier strategy, aimed at accelerating growth in asset management. The deal, valued at up to $1.2 billion, will see MIM acquire PineBridge Investments, a global asset manager with approximately $100 billion in assets under management. The transaction structure includes $800 million in cash at closing, with additional payments tied to future performance metrics. This acquisition is expected to substantially boost MIM's assets under management to over $700 billion upon completion. It will also expand MIM's global footprint, with more than half of the acquired client assets held by investors outside the U.S., and about one-third in Asia. Michel Khalaf, MetLife's President and CEO, emphasized that this move "furthers our ambition to accelerate growth in asset management." John McCallion, MetLife's CFO and Head of MIM, highlighted the transaction's potential to enhance MIM's offerings in public and private credit, including a robust leveraged finance platform. The deal will bring new capabilities to MIM, including a collateralized loan obligation platform, multi-asset business, global equity strategies, and direct lending and European real estate businesses. Greg Ehret, CEO of PineBridge, expressed enthusiasm about the merger, stating it would "enhance our capabilities and elevate the value we deliver to clients." Subject to regulatory approvals and customary closing conditions, the transaction is expected to close in 2025. This acquisition marks a pivotal moment for both MIM and PineBridge, potentially reshaping their positions in the global asset management landscape.---Join the Future of Venture Capital Investing with Newnex <a href="https://www.newnex.io/edit/blogs/www.newnex.io" rel="noopener noreferrer" target="_blank">Newnex</a> is redefining venture capital by fostering collaborative and private investing and fundraising between VCs (GPs), Limited Partners (LPs), and Startups. Newnex simplifies syndication and co-investment for institutional investors, with a mission to connect 5,000+ VC and LP firms and 100,000 venture scale startups on a trusted platform for seamless, reference-only private deal-making. Join Newnex for free <a href="http://www.newnex.io/" rel="noopener noreferrer" target="_blank">www.newnex.io</a>---Join SEINET - the exclusive network for tech and science product and industry leaders. SignUp Free <a href="http://www.startupeuropeindia.net/" rel="noopener noreferrer" target="_blank">www.startupeuropeindia.net</a>

MetLife Investment Management to Acquire PineBridge Investments: A Strategic Move in Asset Management

Italy has implemented a new competition law tying tax breaks on investment returns for first and second pillar pension funds to specific allocations in venture capital funds. The law, which came into effect on December 19, 2024, aims to encourage investments in the real economy while balancing the protection of pension schemes' financial strength. Key points:1. Tax exemptions apply if venture capital fund allocations reach 5% of qualified investments in 2025 and 10% from 2026 onwards. 2. Pension schemes can invest up to 10% of assets in equities through various vehicles, including venture capital funds in Italy, the EU, and the EEA. 3. The law covers both qualified investments and long-term savings plans (PIR). 4. Tax exemptions require holding qualified investments for at least five years. 5. Adepp, the Italian association of pension funds for professionals, welcomed the changes as a balanced approach. 6. A safeguard clause allows retroactive tax benefits for investments in innovative start-ups made before the law's enactment. This new legislation represents a compromise between encouraging investment in start-ups and maintaining the financial stability of pension schemes, while also addressing concerns about the developing nature of Italy's venture capital market. ---Join the Future of Venture Capital Investing with Newnex <a href="https://www.newnex.io/edit/blogs/www.newnex.io" rel="noopener noreferrer" target="_blank">Newnex</a> is redefining venture capital by fostering collaborative and private investing and fundraising between VCs (GPs), Limited Partners (LPs), and Startups. Newnex simplifies syndication and co-investment for institutional investors, with a mission to connect 5,000+ VC and LP firms and 100,000 venture scale startups on a trusted platform for seamless, reference-only private deal-making. Join Newnex for free <a href="http://www.newnex.io/" rel="noopener noreferrer" target="_blank">www.newnex.io</a>

Italy Introduces New Tax Incentives for Pension Fund Investments in Venture Capital

Kazakhstan is taking a bold step into the world of venture capital with the announcement of a new Fund of Venture Capital Funds. Prime Minister Olzhas Bektenov revealed the ambitious plan during a meeting with venture capital experts, business leaders, and international partners on December 19, 2024. The fund aims to attract $1 billion in private investment over the medium term, positioning Kazakhstan as a major player in the global tech ecosystem. Already, large Kazakh businesses have pledged over $100 million as initial capital, demonstrating strong domestic support for the initiative. Zhaslan Madiyev, the Minister of Digital Development, Innovation, and Aerospace Industry, highlighted Kazakhstan's dominance in the Central Asian venture capital scene, accounting for over 70% of the region's deals. The country has seen a remarkable sixfold increase in venture capital volume over the past five years, reaching $80 million. The fund's strategy focuses on investing in leading global, regional, and Kazakh venture funds, ensuring diversification and access to critical technologies. Key areas of interest include artificial intelligence, digital health, and other cutting-edge tech sectors. With the global AI market projected to reach $827 billion by 2030, the fund is well-positioned to capitalize on this growth. Prime Minister Bektenov emphasized the importance of creating an environment that retains local talent, supports startups at all stages, and attracts global expertise to Kazakhstan. This initiative opens doors for entrepreneurs, investors, and tech professionals looking to tap into the burgeoning Central Asian market. As Kazakhstan sets its sights on becoming a regional hub for innovation and technology, this new venture capital fund could be the catalyst that transforms the country's economic landscape and attracts international attention to its growing tech ecosystem. read more ... <a href="https://astanatimes.com/2024/12/kazakhstan-to-establish-1-billion-venture-capital-fund-backed-by-private-investment" rel="noopener noreferrer" target="_blank">https://astanatimes.com/2024/12/kazakhstan-to-establish-1-billion-venture-capital-fund-backed-by-private-investment/</a>OpenAI has taken a bold step in making artificial intelligence more accessible by integrating ChatGPT with WhatsApp and launching a phone service. This move brings the popular AI chatbot to billions of users through familiar communication channels. WhatsApp users can now chat with ChatGPT by simply adding a designated phone number to their contacts. To get started, open WhatsApp, add a new contact with the number +1 800-242-8478 (which spells out 800-CHATGPT). Save the contact as "ChatGPT" or any preferred name, and you're ready to start a conversation. For those in the United States, OpenAI has introduced a toll-free number (1-800-ChatGPT) that allows voice conversations with the AI assistant. This service offers 15 minutes of free interaction per month for anyone dialing from a US number, making AI engagement as simple as making a phone call. While the WhatsApp version comes with some limitations - it only supports text conversations, has a knowledge cutoff date of September 2021, and can't be added to group chats - it provides a straightforward way for users to experience AI without needing to create an OpenAI account. To use ChatGPT on WhatsApp effectively, keep your messages clear and concise for better responses. You can ask follow-up questions or request clarifications in the same chat thread. Remember that there may be daily message limits, although the service is free to use. This expansion is part of OpenAI's broader strategy to reduce barriers to AI adoption and showcase its potential to a wider audience. By leveraging familiar platforms like WhatsApp and traditional phone calls, OpenAI aims to make AI technology more approachable and less intimidating to the average user. As AI continues to evolve and integrate into our daily lives, initiatives like this play a crucial role in democratizing access to advanced technologies. While the current offering is described as experimental, it represents a significant step towards making AI a more common and accessible tool for people around the world.---Join the Future of Venture Capital Investing with Newnex <a href="https://www.newnex.io/edit/blogs/www.newnex.io" rel="noopener noreferrer" target="_blank">Newnex</a> is redefining venture capital by fostering collaborative and private investing and fundraising between VCs (GPs), Limited Partners (LPs), and Startups. Newnex simplifies syndication and co-investment for institutional investors, with a mission to connect 5,000+ VC and LP firms and 100,000 venture scale startups on a trusted platform for seamless, reference-only private deal-making. Join Newnex for free <a href="http://www.newnex.io/" rel="noopener noreferrer" target="_blank">www.newnex.io</a>

Kazakhstan’s $1 Billion Venture Capital Fund: A Game-Changer for Tech Innovation

BlackRock's annual Private Markets Outlook for 2025 highlights key trends and opportunities across various asset classes in the rapidly expanding private markets sector. The report projects significant growth, with the industry expected to expand from $13 trillion today to over $20 trillion by 2030. Private Debt- Continues to grow as a sizable and scalable asset class- Currently accounts for 10% of the $16.4 trillion alternative investment universe- Opportunities in asset-backed finance and global expansion, particularly in Europe and Asia-Pacific Infrastructure and AI- AI driving transformative shifts across industries- Investment opportunities across the entire AI value chain, including data centers and power infrastructure- AI data center capex expected to exceed $1.5 trillion by 2030 Private Equity- Resurgence in deal activity, jumping 21% in 2024 and exceeding pre-pandemic averages by 45%- Opportunities in healthcare, AI-driven LBOs, and the middle market- Increased focus on returning capital to investors Real Estate- Poised for growth after a challenging two-year downturn- Opportunities aligned with long-term structural trends such as aging demographics and demand for energy-efficient buildings- Asia-Pacific region offers compelling cyclical and structural opportunities BlackRock emphasizes that this new era of growth in private markets will be characterized by elevated investment activity, increased exits, lower financing costs, and growing demand for long-term capital. The firm expects all client segments, especially retail wealth, to increase their allocations to private markets as they seek long-dated, profitable assets. <a href="https://www.marketscreener.com/quote/stock/BLACKROCK-INC-176512022/news/BlackRock-2025-Private-Markets-Outlook-A-New-Era-of-Growth-48598644" rel="noopener noreferrer" target="_blank">https://www.marketscreener.com/quote/stock/BLACKROCK-INC-176512022/news/BlackRock-2025-Private-Markets-Outlook-A-New-Era-of-Growth-48598644/</a>

BlackRock 2025 Private Markets Outlook: $7 trillion growth projected

As 2024 draws to a close, the private equity landscape is showcasing a unique convergence of challenges and opportunities. Schroders Capital's Q4 2024 Private Equity Lens provides a view of the market dynamics, highlighting key trends, performance metrics, and areas of growth potential. 1. A Shift in Fundraising DynamicsPrivate equity fundraising in 2024 has seen a significant correction, with a cautious approach defining the market. While aggregate fundraising levels remain below the peaks of 2021–2022, this slowdown signals reduced competition and more attractive entry valuations. For investors, this environment creates fertile ground for identifying high-potential assets at reasonable prices.<ul><li>Fundraising activity reflects a healthy moderation, positioning the market for steady returns in 2025.</li><li>A recalibration in expectations could foster greater discipline in deal selection and portfolio construction.</li></ul> 2. Steady Deal Activity with an AI-Led UpsurgeDespite global economic headwinds, private equity deal-making has maintained momentum. Notably, the venture capital segment is experiencing a resurgence, driven by high-valuation rounds in artificial intelligence (AI). This trend underscores the sector's capacity for innovation and adaptation in a fast-evolving market.<ul><li>AI-related investments have propelled Series C valuations to approach 2021 highs.</li><li>Small- and mid-cap buyouts are trading at attractive discounts, providing a significant value proposition for investors.</li></ul> 3. Exit Markets StabilizingExit activity has begun to stabilize, particularly in sponsor-to-sponsor deals, even as trade sales struggle to regain momentum. This shift is accompanied by record secondary market activity, as Limited Partners (LPs) seek liquidity amid weaker exit conditions.<ul><li>Stabilization in exit markets provides reassurance for fund managers and investors.</li><li>The secondary market is poised to achieve $140 billion in deal volume by year-end, reflecting its role as a vital liquidity avenue.</li></ul> 4. Buyout Multiples and ValuationsThe recalibration of buyout multiples offers a favorable backdrop for investors. Small- and mid-sized buyouts are priced significantly lower than large-cap counterparts and public equities, creating a compelling case for allocation to this segment.<ul><li>Average entry EV/EBITDA for small- and mid-sized buyouts stands at 7.7x, a notable discount compared to large buyouts at 12.1x.</li></ul> 5. Resilience in Private Equity PerformancePrivate equity funds have demonstrated robust resilience, with buyout and venture capital funds returning to positive performance territory. This stability contrasts sharply with broader economic volatility, reinforcing private equity's appeal as a long-term asset class.<ul><li>Buyout funds have delivered steady, positive returns since 2022.</li><li>Venture capital funds have rebounded from the lows of 2022, driven by sectoral innovation.</li></ul> 6. The Role of Liquidity in a Challenging MarketThe heightened activity in the secondary market underscores the importance of liquidity for LPs navigating a constrained exit environment. With record volumes anticipated in 2024, this segment is expected to remain pivotal in private equity strategies. Preparing for a Promising 2025As private equity activity stabilizes, the industry is primed for growth opportunities in 2025. From recalibrated valuations to AI-driven innovation, the market offers fertile ground for informed investors. By navigating these dynamics strategically, stakeholders can capitalize on the evolving private equity landscape. This article leverages data and insights from Schroders Capital's Q4 2024 report, offering a forward-looking perspective on the trends shaping the private equity sector. For those positioned to act decisively, the next wave of growth is within reach. Download the Report here: <a href="https://www.schroders.com/en/malta/professional/insights/schroders-capital-private-equity-lens-q4-2024" rel="noopener noreferrer" target="_blank">https://www.schroders.com/en/malta/professional/insights/schroders-capital-private-equity-lens-q4-2024/</a>

Unlocking Opportunities in Private Equity: Insights from Schroders Capital Q4 2024 Report

In the rapidly changing world of finance and investing, a striking new trend is redefining traditional valuation models and investment strategies. I call it the "meme premium," a variable that's revolutionizing how we perceive market dynamics in the age of social media virality and cultural trends. Understanding the Meme PremiumI conceptualize the meme premium as the additional value or attention a company, product, or individual receives due to their viral popularity or meme status. This premium manifests in various ways, from inflated stock prices to accelerated product adoption and enhanced brand recognition. It's a testament to the growing influence of internet culture on real-world financial outcomes. The GameStop Saga: Meme Premium in ActionThe clearest example of the meme premium at work is the GameStop (GME) stock frenzy of early 2021. In a matter of days, GME's stock price surged from around $20 to a peak of $483, primarily driven by a coordinated effort from retail investors on the Reddit forum r/WallStreetBets. This unprecedented event not only caught Wall Street off guard but also demonstrated the collective power of internet communities in influencing market dynamics. Since then, other companies like AMC Entertainment, BlackBerry, and Bed Bath &amp; Beyond have experienced similar meme-driven price surges. As of November 2024, Palantir Technologies (PLTR) topped the list of best-performing meme stocks with a one-year return of 180.80%. These events have highlighted the growing influence of retail investors and the power of social media in shaping market trends. Quantifying the Meme PremiumWhile the concept of meme premium is relatively new, its effects are tangible and measurable. For instance, the Destiny Tech100 fund, which offers retail investors access to private tech companies, experienced a staggering 1,961% premium to its net asset value shortly after its debut. Despite having a portfolio worth only $52.6 million, the fund's market capitalization soared to almost $1.1 billion, demonstrating the power of the meme premium in action. The Elon Musk EffectNo discussion of the meme premium would be complete without mentioning Elon Musk, the CEO of Tesla and SpaceX. Musk's social media presence, particularly on X (formerly Twitter), has had a significant impact on Tesla's stock price and various other companies. His tweets have influenced stock prices of companies. Elon Musk's tweets have had a significant impact on stock prices and cryptocurrency markets, often causing dramatic fluctuations. Here are some notable examples: Lockheed Martin and Defense StocksOn November 26, 2024, Elon Musk criticized Lockheed Martin's F-35 fighter jet program on X (formerly Twitter), leading to a 3.8% drop in Lockheed's stock, wiping out nearly $5 billion in market value. His comments also affected other defense stocks like Northrop Grumman and RTX. Etsy SurgeOn January 26, 2021, Musk tweeted about purchasing an item on Etsy for his dog. This simple tweet caused Etsy's stock to surge in early morning trading, demonstrating the market's sensitivity to his social media activity. Dogecoin VolatilityMusk's tweets have frequently influenced the price of Dogecoin. For instance, on May 24, 2021, his tweet encouraging development ideas for Dogecoin led to a nearly 5% spike in its value against Bitcoin. His ongoing support and tweets about Dogecoin have often resulted in significant price movements. These instances highlight the considerable influence Musk wields over financial markets through his social media presence and meme posts and stocks. Implications for Venture Capital and InvestingThe rise of the meme premium poses both opportunities and challenges for venture capitalists and investors: 1. Shifting Valuation Metrics: Traditional valuation methods may need to be reconsidered to account for the potential meme premium a company might command. VCs and investors must now factor in a company's potential for viral popularity alongside traditional financial metrics. 2. Increased Volatility: Meme-driven investments tend to be highly volatile, requiring investors to have a higher risk tolerance and potentially shorter investment horizons. This volatility can lead to both spectacular gains and devastating losses in short periods. 3. New Marketing Strategies: Companies might increasingly focus on building a meme-worthy brand or cultivating a CEO with a strong social media presence to capture the meme premium. This shift could change how startups approach marketing and public relations. 4. Democratization of Investing: The meme stock phenomenon has led to increased retail investor participation, potentially democratizing access to high-growth investment opportunities. Platforms like Newnex, which connect institutional VCs and LPs to syndicate deals, may play a crucial role in bridging the gap between traditional investing and this new paradigm. The Role of Social Media and Retail Investors The meme premium was largely driven by retail investors coordinating through social media platforms. These investors often see themselves as underdogs taking on the financial establishment, using platforms like Reddit to discuss stocks, share research, and coordinate investment strategies. This collective action can lead to significant price movements, challenging the dominance of institutional investors. As meme culture continues to permeate every aspect of our digital lives, its influence on financial markets and venture capital is likely to grow. The meme premium represents a new frontier in valuation and investment strategy, one that blends traditional financial analysis with an understanding of internet culture and social dynamics. While the long-term permeability of meme-driven investments remains to be seen, it's clear that in today's market, the power of memes cannot be ignored. As we move forward, successful investors and venture capitalists will need to navigate this new landscape, balancing fundamental analysis with an appreciation for the cultural forces that are creating and sustaining a meme premium. In this evolving financial ecosystem, recognizing and adapting to the reality of the meme premium, investors are required to update to thrive in this new era of finance, where viral popularity can be just as important as traditional financial metrics. ---Join the Future of Venture Investing with Newnex<a href="https://www.newnex.io/edit/blogs/www.newnex.io" rel="noopener noreferrer" target="_blank">Newnex</a> is redefining venture capital by fostering seamless collaboration between General Partners (GPs), Limited Partners (LPs), and startups. Designed for institutional investors, our platform streamlines syndication and co-investment across both direct and LP deals. With a mission to unite over 5,000 VC and LP firms on a single, unified platform, Newnex enables effortless private deal-making based on reference-only transactions. Join Newnex for free <a href="http://www.newnex.io/" rel="noopener noreferrer" target="_blank">www.newnex.io</a>