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In a game-changing move for India’s innovation landscape, eight powerhouse U.S. and Indian venture capital (VC) and private equity (PE) firms have launched the India Deep Tech Investment Alliance (IDTA), pledging over $1 billion over the next decade to fuel Indian-domiciled deep tech startups. Unveiled on September 2, 2025, at SEMICON India, this bold coalition aims to supercharge sectors like artificial intelligence (AI), semiconductors, quantum computing, robotics, biotech, and space tech, while cementing U.S.-India tech collaboration. Newnex dives into the details of this historic initiative and what it means for India’s startup ecosystem. The Heavyweights Behind the Alliance The IDTA brings together a stellar lineup of investment firms with deep expertise in backing cutting-edge ventures. The founding members are: - Accel: A global VC titan known for spotting early-stage tech winners, with a strong presence in India’s startup scene.- Blume Ventures: A 14-year veteran of Indian deep tech, backing trailblazers in warehouse automation and satellite tech.- Celesta Capital: The U.S.-based VC leading the charge, with investments in Indian space tech, drones, and AI-driven diagnostics.- Gaja Capital: An Indian PE firm focused on scaling tech-driven businesses with global potential.- Ideaspring Capital: A go-to for early-stage deep tech, championing transformative ideas in AI and robotics.- Premji Invest: The investment arm of Wipro’s Azim Premji, bringing long-term capital to strategic sectors.- Tenacity Ventures: A VC player targeting tech companies blending deep expertise and innovation.- Venture Catalysts: India’s top seed-stage investor and incubator, known for its mentorship and vast network. Leading the alliance is Arun Kumar, Managing Partner at Celesta Capital and former KPMG India CEO, who chairs the IDTA’s Advisory Committee. Joined by reps from Accel, Premji Invest, and Venture Catalysts, the committee will steer the alliance while letting each firm flex its own investment strategy. The IDTA is already eyeing expansion, planning to rope in more global and Indian investors to amplify its impact. Tackling India’s Deep Tech Funding Crunch Deep tech startups—think AI, quantum computing, or biotech—require hefty R&amp;D and time to scale, making them riskier bets than India’s e-commerce or food delivery giants. This funding gap hit the spotlight earlier this year when India’s Commerce Minister sparked debate by calling out startups for chasing quick wins over innovation. Founders fired back, pointing to a lack of capital for deep tech ventures. The IDTA is stepping up to fill this void with patient, long-term capital, perfectly timed with the Indian government’s ₹1 trillion ($11 billion) Research, Development, and Innovation (RDI) scheme from the 2024-25 budget. This scheme pushes startups to incorporate in India to tap incentives, and the IDTA is all in, focusing on Indian-domiciled companies to drive local innovation. “Semiconductors, deep tech, and AI are India’s shot at leading the next global tech wave,” said a Venture Catalysts spokesperson. “With over 3,600 deep tech startups—74% of them AI-driven—and ₹20,000 crore in government backing via the India Semiconductor Mission, the momentum is unstoppable.” What’s on the Table: Investments and Focus Areas The IDTA is zeroing in on early-stage startups (seed to Series B) in high-stakes sectors: - Artificial Intelligence (AI): Dominating India’s deep tech scene, with 74% of startups AI-focused.- Semiconductors: Riding the wave of India’s Semiconductor Mission and its ₹20,000 crore push.- Space Tech: Backing ventures like satellite and launch innovators.- Quantum Computing, Robotics, Biotech, Medical Devices, Energy, and Climate Tech: Solving global challenges with cutting-edge solutions. The alliance’s $1 billion-plus pledge will roll out over five to ten years, with each firm contributing independently while sharing mentorship, global networks, and market access. Beyond funding Indian startups, the IDTA will help U.S. and global portfolio companies break into India’s booming market. “Deep tech is the next big thing, and the U.S.-India corridor is where it’s happening,” said a Celesta Capital leader. “With the RDI scheme as a catalyst, we’re ready to back the next wave of world-changing companies.” Syncing with U.S.-India Tech Goals The IDTA dovetails with the TRUST initiative, launched by U.S. and Indian leaders in February 2025 to boost collaboration in critical technologies. Even with trade tensions like U.S. tariffs on Indian goods, the alliance signals a shared commitment to innovation. Arun Kumar noted, “This is about aligning with both nations’ strategic priorities in emerging tech.” The coalition will also work with policymakers to shape incentives and regulations, ensuring private capital amplifies government efforts like the India Semiconductor Mission. Proven Players, Big Wins The alliance’s members aren’t new to deep tech. Celesta Capital has backed space tech, drone, and AI-diagnostic startups, while Blume Ventures has powered ventures in automation, carbon capture, satellites, and defense optics. Ideaspring Capital and Accel have fueled early-stage innovators with global ambitions. “India’s deep-tech founders are ready to build and export solutions worldwide,” said an Accel partner. “With talent, policy, and capital aligning, the sky’s the limit.” Challenges and the Road Ahead The IDTA’s ambition isn’t without hurdles. Many Indian deep tech startups incorporate in the U.S. for better funding and infrastructure, a trend the alliance hopes to reverse by making India a more attractive hub. Coordinating eight competitive firms demands trust to avoid red tape or clashing priorities. Policy shifts could also shake things up. Still, the IDTA’s blend of pooled capital and individual freedom is a fresh take on cross-border VC collaboration. With mentorship and policy engagement, it’s poised to reshape India’s deep tech landscape. Newnex Takeaway The India Deep Tech Investment Alliance is a bold bet on India’s innovation potential. With Accel, Blume Ventures, Celesta Capital, Gaja Capital, Ideaspring Capital, Premji Invest, Tenacity Ventures, and Venture Catalysts committing over $1 billion, the IDTA is set to bridge the funding gap for India’s 3,600+ deep tech startups. Backed by the government’s RDI scheme and U.S.-India strategic ties, this alliance could make India a global deep tech powerhouse.______ NEWNEX is a verified global network and platform for VCs and Institutional Investors to connect, syndicate and co-invest without intermediaries - directly and privately. Join now <a href="http://www.newnex.io" rel="noopener noreferrer" target="_blank">www.newnex.io</a>

U.S.-India VC Alliance Commits Over $1B to Power India’s Deep Tech Revolution

Despite concerns of a click-based collapse, Google’s ad revenues are rising with AI, even as publishers feel the squeeze In the age of AI-powered search, a paradox has emerged at the heart of the digital ecosystem. While many predicted that generative AI would undermine Google's lucrative ad business by reducing clicks, the tech giant's financial performance suggests the opposite. As Google's ad revenues continue to grow, the broader web, including publishers who provide the content, is experiencing a sharp decline in traffic. This raises a fundamental question about who benefits—and who loses—in an AI-first future. Google’s earnings defy the doomsayersGoogle's Q2 2025 earnings report provided a clear-eyed view of its performance, revealing that AI integration is bolstering, not beating, its advertising business. Parent company Alphabet reported robust results, with ad revenues up 10% year-over-year to $71 billion, exceeding analyst expectations. CEO Sundar Pichai directly attributed this strength to the company's "strategic investments in AI and video".The key to this success lies in Google's ability to monetize its new AI features, such as AI Overviews and AI Mode. Despite the shift toward instant, AI-generated answers, Google claims that AI Overviews generate ad revenue at a comparable rate to traditional search results. It achieves this by conducting controlled experiments and measuring overall business value rather than focusing solely on individual clicks. The rising engagement fueling commercial queriesGoogle reports that its AI-powered features are driving higher user engagement and query volume. In AI Mode, users ask questions that are up to twice as long as standard search queries. This creates new opportunities for advertisers, as the system can identify "faceted" or layered commercial intent within a single, complex question. For instance, a search for "how to fix a green pool" could trigger contextually relevant ads for "pool vacuum cleaners".This automation has proven effective. Early beta tests of "AI Max for Search" have resulted in an average 27% increase in conversions for advertisers, highlighting the shift toward AI-powered targeting solutions. A grim reality for publishersWhile Google thrives, the publishers who create the content that fuels Google's AI are struggling. With AI Overviews providing direct answers, the incentive for users to click on external links has plummeted. A Pew Research Center study of U.S. Google users found that only 1% clicked a link to a page summarized in an AI Overview. For publishers who depend on search traffic for ad revenue, this spells a crisis.Recent data paints a stark picture:<ul><li>Massive traffic loss:&nbsp;U.S. publishers reported an average decline of 10% in search referral traffic during May and June 2025. For non-news brands, the median drop was 14%.</li><li>Dramatic click-through rate declines:&nbsp;A study submitted to the UK's competition watchdog found that when an AI Overview is present, publishers experience a 47.5% drop in click-through rate on desktop.</li><li>Industry revenue at risk:&nbsp;Research suggests the industry could lose up to $2 billion in annual ad revenue from the reduction in traffic caused by AI Overviews.</li></ul> The walled garden expandsGoogle's defense is that it sends "valuable traffic" to publishers and that AI features create new discovery opportunities. But critics, including a U.S. trade association, have accused Google of "trampling" the open web and creating a "walled garden built on monopoly profits". By embedding ads into AI-generated answers and taking revenue without sharing it with the content creators, Google reinforces its own dominant position while starving the ecosystem it relies on. The situation leaves publishers scrambling for alternative revenue strategies, including focusing on direct traffic, building subscriptions, and leveraging other platforms like Google Discover. For Google, however, the ad revenue engine is running stronger than ever. The AI paradox reveals a stark reality: what is a boon for the tech giant may prove to be a bust for the rest of the web.---Join NENWEX - the verified institutional VC-LP Network to collaborate and syndicate without intermediaries - join and get verified now <a href="http://www.newnex.io" rel="noopener noreferrer" target="_blank">www.newnex.io</a>

The AI Paradox: How Google is Thriving While the Web Withers

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

A Milestone Moment for European Investment <blockquote>In a landmark achievement, European private equity and venture capital reached an all-time high of €1.154 trillion in capital under management in 2023, marking a robust 9% growth from the previous year and more than doubling the levels seen in 2017. </blockquote> This milestone, detailed in Invest Europe’s fifth annual Capital Under Management &amp; Dry Powder 2023 report, released on July 25, 2024, underscores a decade of relentless expansion for Europe’s private capital industry. With 2,996 firms steering this colossal sum, the sector is fueling innovation, competitiveness, and sustainability across the continent. But what’s driving this surge, and why should investors, entrepreneurs, and policymakers take notice? A Powerhouse of Investment: €744 Billion in European BusinessesOf the €1.154 trillion under management, €744 billion is already invested in European companies, directly supporting businesses at their original investment cost. This includes €97 billion in venture capital nurturing dynamic startups and €103 billion in growth capital propelling scale-ups and fast-growing enterprises. Buyout firms lead the charge, managing €443 billion of the portfolio, showcasing their pivotal role in transforming established businesses. This capital infusion is not just numbers on a balance sheet—it’s the lifeblood of Europe’s economy, driving job creation, technological innovation, and sustainable growth. Record-Breaking Dry Powder: €410 Billion Ready to DeployPerhaps the most eye-catching figure is the record €410 billion in dry powder—unallocated capital poised for investment—equating to 86% of the total investments made over the past four years. Buyout firms hold the lion’s share at €284 billion, while venture capital and growth capital firms command €53 billion and €43 billion, respectively. This unprecedented war chest signals immense potential for new investments, offering a lifeline to businesses navigating a complex global landscape marked by economic uncertainty, rising interest rates, and geopolitical challenges.Eric de Montgolfier, CEO of Invest Europe, captured the significance: “Dry powder equals opportunity for businesses and investors, as well as Europe’s economy and society. Europe urgently needs more private capital to fund business transformation and the green and digital transitions.” With this firepower, private equity and venture capital are well-positioned to drive Europe’s ambitions in competitiveness, decarbonization, and digitalization. Regional Giants: UK &amp; Ireland Lead, France &amp; Benelux FollowThe UK &amp; Ireland dominate, managing around 50% of both capital under management and dry powder, reinforcing their role as hubs for domestic and pan-European investments. France &amp; Benelux follow as the second-largest region, overseeing €272 billion in capital and €97 billion in dry powder, while the Nordics manage €125 billion in capital and €58 billion in dry powder. This geographic distribution highlights the widespread strength of Europe’s private capital ecosystem, with multiple regions contributing to its dynamism. Who’s Funding the Future? Pension Funds and Sovereign WealthPension funds are a cornerstone of this growth, accounting for 27% of uncalled commitments, a testament to their confidence in private equity’s long-term value. Funds of funds and other asset managers, often channeling smaller pension funds, contribute 18%, while sovereign wealth funds and family offices each represent 13%. This diverse investor base reflects the industry’s broad appeal and its critical role in securing financial futures for millions of European citizens. A Decade of TransformationThe 2023 figures cap a decade of remarkable growth. Since 2012, capital under management has more than doubled, with 2022 alone seeing the industry break the €1 trillion barrier for the first time at €1.004 trillion. Dry powder has also surged, rising from €285 billion in 2021 to €348 billion in 2022, before hitting €410 billion in 2023. This consistent upward trajectory demonstrates the industry’s resilience amid challenges like inflation, high interest rates, and geopolitical uncertainty.Invest Europe’s report emphasizes the sector’s ability to weather storms. “European private equity and venture capital continues to grow strongly and sustainably,” said de Montgolfier. “Record capital under management illustrates the industry’s scale and contribution at a European level, providing investment and expertise for young companies to develop their ideas and grow, and more mature businesses to consolidate their positions and expand internationally.” Why This Matters: Fueling Europe’s FutureThe implications of this growth are profound. Private equity and venture capital are not just financial mechanisms—they are engines of innovation and economic stability. The €97 billion in venture capital is empowering startups to tackle pressing challenges, from climate tech to healthcare innovation. Meanwhile, the €103 billion in growth capital is helping scale-ups become global leaders, while buyout investments are transforming established firms into more competitive, sustainable entities.Moreover, the record dry powder offers a buffer against economic headwinds. As Europe faces the dual transitions of digitalization and decarbonization, this capital provides the flexibility to invest in transformative technologies and business models. From AI-driven startups to renewable energy ventures, private capital is paving the way for a more innovative and sustainable Europe. Challenges and Opportunities AheadDespite the rosy outlook, challenges loom. A recent post on X highlighted a global private equity bottleneck, with firms holding a record 29,000 unsold companies worth $3.6 trillion, while dealmaking slows. While Europe’s dry powder remains robust, the global slowdown underscores the need for strategic deployment to maintain momentum. Investors must navigate a landscape of high valuations, cautious buyers, and macroeconomic pressures to unlock the full potential of their capital.Yet, the opportunities outweigh the risks. The €410 billion in dry powder positions Europe’s private capital industry to seize emerging opportunities, from backing next-generation tech unicorns to supporting traditional industries in their green transition. As Invest Europe’s report notes, this capital is “well-positioned to fuel positive change that drives European growth and competitiveness.” Europe’s private equity and venture capital sector is a said to be performing strongly. For entrepreneurs, it’s an invitation to tap into a vast pool of capital and expertise to scale their visions. And for policymakers, it’s a reminder to foster an environment that encourages private investment to drive Europe’s economic and societal goals. As Europe stands at a crossroads, the private capital industry’s record-breaking growth in 2023 is a beacon of opportunity. With €1.154 trillion under management and €410 billion ready to deploy, the stage is set for a transformative decade. Will Europe’s private equity and venture capital industry continue to rewrite the rules of global investment? The numbers suggest they’re just getting started. Source: <a href="https://www.investeurope.eu/research/activity-data/capital-under-management-dry-powder/" rel="noopener noreferrer" target="_blank">Invest Europe, “Positioned for the Challenge: Capital Under Management &amp; Dry Powder 2023,” published July 25, 2024.</a>

European Private Equity Soars to Record €1.15 Trillion in 2023: A Decade of Unstoppable Growth

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

Elon Musk’s xAI Holdings is reportedly in discussions to raise approximately $20 billion in funding, a move that could value the company at over $120 billion, according to Bloomberg News. This significant capital raise aims to bolster the newly combined artificial intelligence (AI) startup and social media business, following xAI’s acquisition of the X platform in March 2025. The deal marks one of the largest startup funding rounds in history, trailing only OpenAI’s $40 billion raise earlier this year. A Strategic Merger to Unlock PotentialThe funding talks come on the heels of xAI’s all-stock acquisition of X, formerly Twitter, which valued xAI at $80 billion and X at $33 billion, with a total valuation of $45 billion including $12 billion in debt. Musk has emphasized the intertwined futures of the two entities, stating, “This combination will unlock immense potential by blending xAI’s advanced AI capability and expertise with X’s massive reach.” The merger aims to integrate xAI’s AI innovations, such as the Grok chatbot, with X’s vast user base to deliver smarter, more meaningful user experiences. The proposed $20 billion raise could serve multiple purposes, including alleviating X’s substantial debt burden, which incurs $200 million monthly in servicing fees and over $1.3 billion in annual interest expenses. Additionally, the funds would support xAI’s ambitious projects, such as expanding its Memphis-based supercomputer cluster, Colossus, touted as the world’s largest, and further developing AI models to compete with industry leaders like OpenAI and Anthropic. Musk’s Vision for xAI and XLaunched in July 2023, xAI was founded with the mission to “understand the true nature of the universe” and has since positioned itself as a key player in the AI industry. The company’s chatbot, Grok, introduced in 2024 and upgraded to Grok-3 in February 2025, incorporates features like image editing and a websearch function called DeepSearch. By merging with X, xAI gains access to real-time user data, which could enhance its AI training capabilities and accelerate product deployment to a broader audience. Musk’s strategic consolidation of xAI and X reflects his broader vision of creating a synergistic ecosystem where AI and social media amplify each other’s strengths. This move also aligns with his efforts to establish xAI as a formidable rival to OpenAI, a company he co-founded but left in 2018. Earlier this year, Musk led a consortium offering $97.4 billion to acquire OpenAI, underscoring the intensifying competition in the AI space. Investor Confidence and Market ContextThe funding round is expected to attract participation from Musk’s long-standing backers, including venture firms like Andreessen Horowitz, Sequoia Capital, and Valor Equity Partners, as well as Saudi Arabia’s Kingdom Holding. Saudi investor Prince Alwaleed bin Talal, a significant stakeholder in both xAI and X, noted that the merger could elevate the value of his investments to between $4 billion and $5 billion.The AI sector continues to draw massive investor interest, despite some cooling enthusiasm as startups integrate with tech giants like Google and Amazon. xAI’s ability to secure such a substantial raise would signal sustained confidence in Musk’s vision and the potential of AI-driven innovation. If successful, the $20 billion round would rank as the second-largest startup funding event, highlighting the high stakes and transformative potential of the AI industry. The rapid development of xAI’s projects, particularly the Colossus supercomputer, has sparked concerns among environmental and public health advocates in Memphis. Critics cite a lack of community input and oversight, as well as the environmental impact of the natural gas-powered turbines and planned graywater facility. Additionally, Musk’s involvement in the Trump administration’s Department of Government Efficiency has raised questions about his focus on xAI and other ventures, especially as Tesla’s stock has declined over 40% in 2025. Despite these challenges, xAI’s integration with X and its pursuit of substantial funding underscore Musk’s commitment to advancing AI and redefining social media. The outcome of the $20 billion raise will likely shape the trajectory of xAI Holdings and its role in the global AI landscape.----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>

Elon Musk’s xAI Holdings Seeks $20 Billion at $120 Billion Valuation

The UK government has taken a pioneering step in the global race for clean energy by investing £20 million to launch Starmaker One, the country’s first private fusion investment fund. This initiative is designed to accelerate the commercialisation of fusion energy, a technology that could provide limitless, clean power and transform the UK into a global energy leader. What Makes Starmaaker One Unique?Starmaker One is not just another government grant or R&amp;D program. It’s a one-of-a-kind public-private partnership where the government acts as a cornerstone investor in a limited partnership managed by East X Ventures, the venture capital arm of London-based East X. East X Ventures will manage the fund, making investment decisions and supporting early-stage, science-led fusion companies with high-growth potential.Unlike previous investments that often flowed through the British Business Bank or similar vehicles, this £20 million comes directly from the Department for Energy Security &amp; Net Zero’s (DESNZ) Research and Development budget for 2024/2025. The government’s direct involvement is meant to “de-risk” the sector, giving private investors the confidence to contribute much larger sums—potentially raising the fund’s total to between £100 million and £150 million. Here’s how the partnership is structured:<ul><li>The government provides an upfront investment, acting as a cornerstone investor and sharing both the risks and potential returns with private investors.</li><li>East X Ventures, as the fund manager, is responsible for selecting and supporting fusion start-ups and scale-ups, guiding them from breakthrough science to commercial reality.</li><li>The fund’s structure means the government will receive a share of any profits, aligning public and private interests and ensuring taxpayers benefit if the sector thrives.</li></ul> Historically, UK fusion start-ups have struggled to access the capital needed to scale and commercialise their technologies. By investing directly alongside private venture capital, the government is sending a strong signal of confidence in the sector. This approach is the first of its kind for early-stage fusion investment outside the US and is expected to unlock further private capital, create thousands of high-skilled jobs, and keep the UK at the forefront of fusion innovation. What Will Starmaker One Achieve?<ul><li>Help fusion businesses grow and commercialise at scale, supporting innovation in fields like magnetics, robotics, AI, and advanced materials.</li><li>Train the next generation of scientists, engineers, and technicians, especially in regions like Nottinghamshire, Oxfordshire, and South Yorkshire.</li><li>Strengthen UK supply chains and position the country as a major exporter of fusion technology to a global market expected to be worth trillions in the coming decades.</li></ul> The investment in Starmaker One comes on the heels of a record £410 million government commitment to UK fusion research and international collaboration. With breakthroughs in fusion technology happening rapidly worldwide, the UK is determined to stay ahead by ensuring its companies have the funding and support they need to compete. --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.

UK Government invests £20m in £100m Starmaker One, a private fusion investment 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

Vocap Partners, an Atlanta-based venture capital firm, has raised over $100 million to invest in early-growth B2B software companies, with a focus on often-overlooked metro markets across the Midwest, East, and South. Let’s break down what this means for startups, investors, and the broader tech scene. Why Vocap Partners Stands OutVocap isn’t your typical Silicon Valley VC. The firm intentionally seeks out high-potential companies in regions that don’t always get the spotlight. This approach is especially relevant in today’s uncertain economic climate, where smaller, capital-efficient startups in less saturated markets can offer attractive opportunities for growth and returns. Their investment sweet spot:<ul><li>B2B software and healthcare IT companies with proven product-market fit</li><li>Annual recurring revenue between $2-6 million</li><li>Strong, efficient growth (over 30% year-over-year)</li><li>Reasonable cash burn</li><li>Initial checks of $2-7 million, with reserves for follow-on investments</li><li>Target exit timeframe of 3-7 years</li></ul> Vocap isn’t just about writing checks—they get hands-on. CEOs from portfolio companies like Blue Ridge, Harness, XOi, and ketteQ have praised Vocap for their operational support, from helping set up international subsidiaries to recruiting key executives and refining business strategies. For example, ketteQ, a supply chain planning platform, recently raised $9 million in a Series A round led by Vocap, which will help them expand their AI-driven solutions for global brands. What This Means for FoundersIf you’re building a B2B software company in North America—especially outside the coastal tech hubs—Vocap could be a strong partner. They bring not just capital, but also deep operational expertise and a network that can accelerate your growth. Their team, based in Atlanta and Vero Beach, includes seasoned entrepreneurs and investors who actively engage with founders to solve real business challenges. Actionable Recommendations for Startups<ul><li>Focus on sustainable, efficient growth: Vocap values companies that grow fast but don’t burn cash recklessly.</li><li>Build for real industry problems: Their interest lies in startups applying AI and modern software to tangible business challenges.</li><li>Be open to collaboration: Vocap is known for rolling up their sleeves and working alongside founders—leverage that expertise.</li><li>Consider your geography: If you’re in a non-coastal metro, you may have an edge in attracting their attention.</li></ul> Vocap Partners’ latest fund signals a growing trend: major venture capital is flowing into regions and companies that have historically been overlooked. For founders in these markets, it’s a chance to secure not just funding, but a committed partner for scaling up. --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.

Vocap Partners Surpasses $100 Million Fundraising, Targets B2B Tech in Underserved U.S. Markets

Konvoy’s latest quarterly report projects gaming industry to grow to $186 billion by 2026. The report, released in April 2025, dives into the major investment moves, regional trends, and the growing impact of geopolitical tensions on the sector. Key Mergers, Acquisitions, and InvestmentsIn the first quarter of 2025 alone, the industry saw 43 mergers and acquisitions. Two standout deals were Scopely’s $3.5 billion acquisition of Niantic’s gaming division and Modern Times Group’s $620 million purchase of Plarium. These high-profile transactions signal continued consolidation as companies seek to strengthen their portfolios and expand their global reach. Venture capital activity remained robust, with 77 deals recorded in the quarter. While the number of deals dipped by 6% compared to the previous quarter, total venture funding surged to $373 million—a 35% jump. This suggests investors are focusing on fewer, but larger, opportunities. Regional Investment PatternsNorth America remains the dominant force in gaming investment, capturing 53% of all deals in Q1 2025. Asia followed with 33%, while Europe took third place. Notably, regions like Africa, South America, and Australia saw little to no investment activity. Konvoy’s managing partner, Josh Chapman, attributed this to a lack of local funding groups, despite the presence of gaming companies in those areas. He expects North America, Asia, and Europe to continue leading the way in both investment and deal-making. Geopolitical Tensions Shape the IndustryThe report also highlights the growing impact of U.S.-China tensions on the gaming sector. The U.S. has increased scrutiny of Chinese entities, affecting games like Snap and others. This heightened oversight is significant, given China’s major role in the industry. Chapman explained that the friction is partly due to the need for U.S. games to have a local partner or “gatekeeper” in China, while Chinese games face fewer barriers entering the U.S. market. Recent developments, such as Ubisoft’s acceptance of funding from Chinese tech giant Tencent, underscore the complex interplay between business interests and geopolitical concerns. Konvoy’s report suggests the industry’s growth will continue, driven by strategic investments, major acquisitions, and ongoing innovation. However, the sector must also navigate an increasingly complex global landscape, where regulatory and political issues can have far-reaching effects. For investors and companies alike, understanding these dynamics will be key to capitalizing on the opportunities ahead. Access the report here: <a href="https://www.konvoy.vc/reports/gaming-industry-report-q1-2025" rel="noopener noreferrer" target="_blank">https://www.konvoy.vc/reports/gaming-industry-report-q1-2025</a> --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.

Games Industry Set to Hit $186 Billion by 2026: Konvoy Report Highlights Investment Trends and Geopolitical Tensions

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

India's venture capital (VC) ecosystem is experiencing a notable revival, as outlined in the "India Venture Capital Report 2025" by Bain &amp; Company, 2025, in collaboration with the Indian Private Equity and Venture Capital Association (IVCA). The report, themed "Whispers of Spring: Funding winter thaws as India’s investment landscape shows signs of revival," provides a comprehensive analysis of 2024's performance and projections for 2025. This section delves into the detailed findings, offering insights for investors, entrepreneurs, and policymakers, and includes all key data points and trends identified in the report. Funding and Deal Volume Trends in 2024The report reveals that VC funding in 2024 reached $13.7 billion, marking a 1.4 times increase compared to 2023 levels. This surge reflects growing investor confidence, particularly in tech-first sectors, positioning India as the second largest VC destination in the Asia-Pacific region. Deal volumes also saw a substantial uptick, rising from 880 deals in 2023 to 1,270 in 2024, representing a ~45% increase. This expansion highlights a broadening of investment opportunities across various stages. A breakdown of deal sizes shows a clear trend:- Small- and medium-ticket deals, valued at less than $50 million, comprised approximately 95% of all deals and grew by ~1.4 times, indicating strong early-stage activity.- Large deals, worth $50 million or more, nearly doubled, rebounding to pre-pandemic levels, suggesting renewed interest in scaling businesses.- However, the average size of megadeals ($100 million+) fell by 20%, which may reflect a cautious approach to high-value investments amidst global volatility. The report also notes the emergence of 5 unicorns in 2024, up from 2 in 2023, with examples including Zepto, Meesho, and Lenskart. This increase in unicorns amidst a global funding slowdown is an unexpected detail, highlighting India's unique market dynamics. Sector-Wise Performance and Investor ActivitySectoral analysis reveals that tech-first sectors dominated funding, accounting for over 60% of total investments. Consumer tech emerged as a standout, with funding rising 2.3 times to $5.4 billion, driven by rapid customer adoption and profitability paths, particularly in quick commerce within B2C commerce. Software/SaaS funding also saw significant growth, increasing by ~1.2 times to $1.7 billion, with generative AI experiencing a 1.5 times surge, reflecting the global AI boom's impact on India. Fintech continued to be a key area, though specific figures were not detailed, it is part of the tech-first sectors driving the majority of funding. Additionally, BFSI and consumer/retail sectors saw sharp funding growth due to large markets and socioeconomic tailwinds, further diversifying the investment landscape. Investor participation was robust, with private equity (PE) funds, family offices, and corporate VC firms increasing their deal volumes by ~1.8 times from 2023 to 2024. Notable examples include KKR's investment in Rebel Foods. However, fund-raising activity saw a decline, dropping by ~35% to $2.7 billion, the lowest since 2020. This contraction is attributed to cautious capital deployment amidst global economic uncertainties. Notably, maiden funds comprised nearly one-third of VC/growth capital raised, up from ~25% in 2023, indicating a rise in new fund formations targeting themes like sustainability, agriculture, defense, sports, and gaming. Exit Activity and Market LiquidityExit activity in 2024 edged up to $6.8 billion, with public market exits rising significantly, accounting for approximately 76% of total exit value, up from ~55% in 2023. This shift was fueled by a 7x surge in IPO exit values, driven by rising liquidity, recovery in tech stock valuations, and supportive regulatory reforms. This increase in exit activity is a crucial indicator of market maturity, providing liquidity to early investors and encouraging further investments. Policy Reforms and Their ImpactThe report credits several policy reforms for the positive momentum in the VC ecosystem. Key measures include:- Elimination of angel tax, reducing the tax burden on early-stage investments.- Reduced long-term capital gains (LTCG) tax rates, making exits more attractive.- Removal of the National Company Law Tribunal (NCLT) process, simplifying corporate restructuring.- Simplified foreign venture capital investor (FVCI) registrations, easing foreign investment flows. These reforms have created a conducive environment, boosting investor confidence and aligning with the government's broader economic goals. The report suggests that such policy support will continue to drive growth, particularly in emergent sectors. Looking ahead, the report projects a robust 2025 for India's VC landscape. Investors remain confident, with available capital suggesting potential for increased deal activity. Growth-stage investments are expected to rise, reflecting a maturing ecosystem. Emergent sectors such as semiconductors, energy transition, and deep tech are likely to garner greater interest, driven by global trends and India's strategic focus on these areas. In the longer term, the report envisions sustained growth for India's VC ecosystem, supported by strong consumption tailwinds, regulatory advancements, and a rapidly expanding digital backbone. This outlook is particularly relevant for international investors seeking high-growth markets amidst global economic challenges. Read the full report here: <a href="https://www.bain.com/insights/india-venture-capital-report-2025" rel="noopener noreferrer" target="_blank">https://www.bain.com/insights/india-venture-capital-report-2025/</a> ----Join <a href="https://www.newnex.io/blogs/venture-capital/www.newnex.io" rel="noopener noreferrer" target="_blank">Newnex</a> For Free: The Global Institutional Network for VCs, LPs, and venture-scale startups for secure, reference-driven syndication and co-investments.

India's Venture Capital Landscape Set to Surge: Key Insights from Bain & Company’s 2025 Report

In a surprising yet strategic move, Volkswagen Group, the German automotive giant, has emerged as the sole backer of a new venture capital firm called Leitmotif. According to a recent TechCrunch exclusive published on March 11, 2025, Leitmotif has been operating under the radar for the past 16 months, investing in approximately 20 startups with a sharp focus on decarbonization—a mission that aligns with Volkswagen’s broader sustainability goals. This development offers a glimpse into how major industrial players are leveraging innovation to tackle climate challenges while seeking financial returns. Leitmotif’s first fund, backed by a hefty $300 million commitment from Volkswagen, has already deployed about one-third of its capital. The firm’s investments span a diverse range of sectors, including electric vehicle (EV) companies, battery technology, space-related ventures, and even four nuclear fusion startups. This broad approach reflects an ambitious vision to not only reduce carbon emissions but also pioneer groundbreaking technologies that could reshape industries. Volkswagen’s involvement goes beyond mere funding. During a conference on Tuesday, March 11, CEO Oliver Blume emphasized that Leitmotif’s efforts could help the automaker lower its carbon footprint and foster a “circular economy” both within and outside the company. This partnership hints at a symbiotic relationship: Volkswagen gains access to cutting-edge innovations, while Leitmotif’s portfolio companies benefit from the automaker’s vast resources and industry expertise. Leading Leitmotif are managing partners Matt Trevithick and Jens Wiese, the latter of whom previously headed Volkswagen Group’s M&amp;A, Investment Advisory, and Partnerships division. Their goal is clear: build a bridge between Europe’s industrial giants and the U.S.’s thriving innovation ecosystem. Approximately 70% of the fund’s capital is earmarked for U.S.-based startups, with the remaining 30% targeting the European Union. Offices in Palo Alto and Munich will support this transatlantic strategy. The firm’s investment philosophy is twofold. About 70% of its current fund targets startups addressing “today’s known problems” in established, billion-dollar markets—think practical solutions with ready customers. The remaining 30% is reserved for “revolutionary innovation,” betting on technologies that could create entirely new markets by the 2030s. One example from their portfolio is Harbinger, an EV truck startup where Leitmotif co-led a $100 million Series B round in January. Discussions are reportedly underway for Harbinger to collaborate with Volkswagen’s trucking division, showcasing the potential for direct synergy. What makes Leitmotif’s launch particularly noteworthy is its timing. Late 2023, when the firm began its quiet investment spree, was a challenging period for hardware and deep-tech startups due to high interest rates and a cautious funding environment. Trevithick argues this was an advantage: “It’s in down markets when the strong companies separate from the weak.” With other venture firms retreating to protect existing portfolios, Leitmotif seized the opportunity to back promising, underfunded ventures. Looking ahead, Trevithick and Wiese plan to expand Leitmotif’s reach with additional funds focused on robotics and AI—areas Volkswagen may also opt to invest in. For now, the firm remains independent, focused on finishing its debut fund while proving its model of blending profit with purpose. For entrepreneurs and innovators in the decarbonization space, Leitmotif’s emergence signals a new source of capital with a powerful industrial ally. For the public, it’s a reminder that even traditional giants like Volkswagen are adapting to a greener future, one startup at a time. Keep an eye on this stealthy player—it might just redefine how industry and innovation intersect. ----Join <a href="https://www.newnex.io/blogs/venture-capital/www.newnex.io" rel="noopener noreferrer" target="_blank">Newnex</a> For Free: The Global Institutional Network for VCs, LPs, and venture-scale startups for secure, reference-driven syndication and co-investments.

Volkswagen Fuels a New Venture Capital Firm Focused on Decarbonization

The German government has announced a fresh injection of €200 million (approximately $210 million) into its venture capital ecosystem, reinforcing its commitment to fostering innovation and supporting high-growth startups. Unveiled on March 11, 2025, this funding aims to bolster early-stage companies, particularly in cutting-edge fields like artificial intelligence (AI), climate technology, and digital infrastructure. The move builds on Germany’s ongoing efforts to solidify its position as a leading hub for tech innovation in Europe, amid intensifying global competition. Strengthening the Startup EcosystemThis €200 million allocation will be channeled through the KfW Capital, a subsidiary of the state-owned KfW Bank, which has been instrumental in bridging funding gaps for German startups. The funds are earmarked for co-investment with private venture capital firms, targeting seed and Series A rounds. This follows a €400 million commitment in 2024, bringing the government’s total venture capital support to €600 million over two years. Economy Minister Robert Habeck emphasized the strategic intent: “Germany must lead in transformative technologies. This investment ensures our startups have the capital to innovate and scale, keeping us competitive on the global stage.” The focus on AI, green tech, and digital solutions aligns with Germany’s broader economic goals. The country aims to leverage its industrial prowess—evidenced by a 2% surge in industrial output in January 2025, driven by car manufacturing—to transition into a leader in next-generation technologies. Startups in these sectors are seen as critical to addressing climate challenges, enhancing digital infrastructure, and maintaining economic resilience in a shifting global landscape. Germany’s startup scene has been gaining momentum, with Berlin often dubbed the “Silicon Valley of Europe.” In 2024, German startups raised €6.8 billion, a modest rebound from the €6.2 billion in 2023, despite a global venture capital slowdown. However, early-stage funding remains a bottleneck, with many promising companies struggling to secure initial capital compared to counterparts in the U.S. or UK. The government’s latest move addresses this gap, aiming to reduce reliance on foreign investors and nurture homegrown talent. The timing also reflects economic pressures. While industrial production shows signs of stabilization, exports dropped by 2.5% in January 2025, signaling vulnerabilities in Germany’s trade-dependent economy. By bolstering venture capital, the government hopes to diversify growth drivers, betting on tech innovation to offset traditional sector challenges. This shift mirrors a broader policy evolution, with some analysts noting a departure from fiscal conservatism toward debt-financed growth strategies. A Collaborative ApproachThe €200 million will not be deployed in isolation. KfW Capital will partner with private VC firms, amplifying the funds’ impact through matched investments. This public-private model has proven effective in prior initiatives, such as the Future Fund (Zukunftsfonds), launched in 2021 with €10 billion to support tech scale-ups. The new funding is expected to support 30–40 startups, with individual investments ranging from €5 million to €15 million, depending on co-investment agreements.Climate tech, a priority area, could see significant gains. Germany’s push for carbon neutrality by 2045 relies heavily on scalable solutions like renewable energy storage and carbon capture—areas where startups often lack early funding. Similarly, AI ventures, from autonomous systems to data analytics, are poised to benefit, building on Germany’s strong research base and industrial applications. Despite the optimism, hurdles remain. Germany’s venture ecosystem lags behind the U.S. and China in total investment volume, and bureaucratic red tape continues to deter some entrepreneurs. Critics argue that €200 million, while substantial, is a drop in the bucket compared to the billions poured into American or Chinese startups annually. “It’s a step forward, but we need more ambition to truly compete,” said Anna Berger, a Berlin-based VC analyst. Others question whether the focus on early-stage funding adequately supports later-stage scaling, where German firms often lose ground to international rivals. Regulatory complexity also looms large. Startups face lengthy approval processes for subsidies and tax incentives, potentially slowing deployment of the new funds. The government has pledged to streamline these mechanisms, but results remain to be seen. A European ContextGermany’s investment comes amid a broader European push to bolster tech sovereignty. The EU recently allocated €4.6 billion for clean tech and EV batteries in December 2024, signaling a collective effort to counter Chinese dominance in strategic sectors. Germany’s €200 million complements this, reinforcing its role as Europe’s economic engine. Collaborative efforts with VC firms like Munich-based HV Capital, which expanded to the UK in February 2025, could also deepen cross-border innovation ties. As of March 12, 2025, details on specific recipients and timelines are pending, with KfW Capital expected to begin disbursements by Q3 2025. The government projects that this injection could create 5,000–7,000 high-skilled jobs over five years, alongside fostering 10–15 potential “unicorns” (startups valued at over €1 billion). For now, the €200 million signals Germany’s intent to not just keep pace but lead in the global tech race—a bet on innovation to secure its economic future.----Join <a href="https://www.newnex.io/blogs/venture-capital/www.newnex.io" rel="noopener noreferrer" target="_blank">Newnex</a> For Free: The Global Institutional Network for VCs, LPs, and venture-scale startups for secure, reference-driven syndication and co-investments.

German Government Boosts Venture Capital with Additional €200 Million Investment

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

In a bold move to redefine how we interact with information online, Google is doubling down on its artificial intelligence initiatives. According to a recent report from Ars Technica, the tech giant is expanding its AI Overviews feature while simultaneously testing a groundbreaking AI-only search results page. These developments, announced in early March 2025, signal Google’s intent to weave AI even deeper into the fabric of its search engine, potentially transforming the way users access and process information. Google’s AI Overviews, initially introduced as a way to provide concise, AI-generated summaries atop traditional search results, are now set to reach a broader audience. This feature leverages advanced natural language processing to distill complex topics into digestible insights, saving users the effort of sifting through multiple links. The expansion comes as Google refines its algorithms to ensure accuracy and relevance, addressing earlier criticisms of occasional factual missteps in AI-generated content. The move reflects a growing trend in search technology: users increasingly crave instant answers over exhaustive lists of links. By scaling AI Overviews, Google aims to meet this demand, positioning itself as not just a search engine but a knowledge curator. For instance, a query about climate change might soon yield a neatly packaged summary of causes, effects, and current mitigation efforts—drawn from credible sources and presented in Google’s signature clean interface. AI-Only Search: A Glimpse Into the FuturePerhaps more intriguing is Google’s experimentation with AI-only search results. In this test phase, some users will encounter a results page devoid of traditional web links, populated entirely by AI-generated responses tailored to their queries. Imagine asking, “What’s the best way to cook salmon?” and receiving a step-by-step recipe, nutritional breakdown, and cooking tips—all synthesized by AI without a single external URL. This shift raises fascinating questions about the future of the web. Traditional search thrives on linking users to a vast ecosystem of sites, driving traffic to creators and businesses alike. An AI-only approach, however, could keep users within Google’s orbit, relying solely on its interpretation of the world’s knowledge. While still in testing, this concept hints at a potential paradigm shift—one where Google evolves from a gateway to the internet into a self-contained oracle. Balancing Innovation and ResponsibilityGoogle’s AI push isn’t without challenges. The company has faced scrutiny over the reliability of AI-generated content, especially after early rollouts produced occasional errors or biased outputs. To counter this, Google is reportedly fine-tuning its models and incorporating user feedback to enhance trustworthiness. The Ars Technica report notes that the expanded AI Overviews will include clearer citations, linking back to original sources to maintain transparency. Moreover, the AI-only search experiment could disrupt the digital economy. Websites—from news outlets to small blogs—rely on search traffic for visibility. If Google’s AI begins answering questions comprehensively on its own, the incentive to click through might diminish, sparking debates about fair compensation for content creators. What’s Next for Google and AI?As of March 7, 2025, these developments mark a pivotal moment for Google. The expansion of AI Overviews is already underway, with the feature rolling out to more regions and languages. Meanwhile, the AI-only search trial remains a controlled experiment, likely reserved for a subset of users willing to opt in. Google has yet to announce a timeline for a broader rollout, but the company’s track record suggests it will iterate quickly based on data and user response. For now, Google’s AI ambitions underscore a broader industry race to harness artificial intelligence. Competitors like Microsoft, with its AI-infused Bing, and emerging players in the AI search space are watching closely. Users, too, stand to benefit from faster, smarter search experiences—though they’ll need to weigh the convenience against the implications of an AI-mediated internet. In the end, Google’s latest moves reaffirm its mission to “organize the world’s information”—only now, it’s doing so with an AI twist that could redefine what search means in the years ahead.---Join the Venture Capital Institutional Network for VCs, LPs and Venture-Scale Startups <a href="http://www.newnex.io" rel="noopener noreferrer" target="_blank">www.newnex.io</a>

Google Pushes AI Frontiers with Expanded Overviews and AI-Only Search Experiments

Obvious Ventures Seeks $400 Million to Fuel Next Wave of Impactful Startups Obvious Ventures, the venture capital firm co-founded by Twitter’s Evan Williams, is in the process of raising $400 million for its latest fund, according to a recent SEC filing. This initiative underscores the firm’s dedication to supporting startups that aim to generate positive societal and environmental impacts. A Legacy of Purpose-Driven Investments Since its inception, Obvious Ventures has been committed to backing companies that align with its “world positive” investment philosophy. The firm focuses on three primary sectors:	•	Planetary Health: Investing in sustainable solutions that address environmental challenges.	•	Human Health: Supporting innovations that enhance personal well-being and healthcare.	•	Economic Health: Promoting financial tools and services that empower individuals and communities. Notable investments from Obvious Ventures include plant-based meat producer Beyond Meat and AI-driven healthcare provider Virta Health. The move to raise a $400 million fund comes at a time when venture capital firms are increasingly focusing on startups that combine profitability with purpose. Obvious Ventures’ strategy reflects a growing trend of investors seeking to drive meaningful change through their capital allocations. As the fundraising efforts progress, the firm is poised to identify and support the next generation of startups that are not only financially promising but also aligned with creating a positive impact on society and the environment. ----Join <a href="www.newnex.io" rel="noopener noreferrer" target="_blank">Newnex</a> For Free: The premier platform connecting VCs, LPs, and venture-scale startups for secure, reference-driven syndication and co-investments.

Obvious Ventures Seeks $400 Million to Fuel Next Wave of Impactful Startups

Perplexity, the innovative AI-powered search engine developer, has announced the launch of a $50 million venture fund aimed at supporting early-stage startups. This strategic move underscores Perplexity’s commitment to fostering innovation within the AI and technology sectors. Fund Overview The newly established fund is designed to provide seed and pre-seed investments to emerging companies, with a particular focus on those operating within the AI and technology domains. By targeting startups at these critical early stages, Perplexity aims to nurture groundbreaking ideas and technologies that have the potential to reshape industries. Leadership Team At the helm of this venture fund are General Partners Kelly Graziadei and Joanna Lee Shevelenko. Both bring a wealth of experience from their previous roles as co-founders of f7 Ventures, an early-stage investment firm known for backing companies like women’s health startup Midi. Their expertise and proven track record in identifying and supporting promising startups position the fund for success. Strategic Implications This initiative places Perplexity alongside other AI industry leaders who have established similar funds to cultivate the next generation of tech innovators. Notably, while OpenAI operates an investment fund, it does not utilize its own capital for investments. In contrast, Perplexity is leveraging a portion of its own resources, alongside contributions from limited partners, to capitalize its new venture fund. By launching this fund, Perplexity is not only reinforcing its position within the AI and tech ecosystem but also providing essential capital to startups that align with its vision. This move is expected to stimulate innovation, foster strategic partnerships, and contribute to the overall growth and diversification of the technology landscape. As the fund begins to deploy capital, the tech community will be closely monitoring which startups receive backing and how Perplexity’s investment strategy influences the broader AI and technology sectors.---Join <a href="www.newnex.io" rel="noopener noreferrer" target="_blank">Newnex</a>: The Platform For Venture Capital Institutional Investors and Startups for Confidential Syndication and Co-Investment Opportunities.

Perplexity AI launches $50m early-stage 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

President Donald Trump signed an executive order on February 3, 2025, to establish the first United States sovereign wealth fund. This decision marks a change in the country's approach to managing national assets and investing in its future. What is a Sovereign Wealth Fund? A sovereign wealth fund (SWF) is a state-owned investment fund that invests in various financial assets, including stocks, bonds, real estate, and other financial instruments. These funds are established to manage a country's excess reserves, stabilize the national economy, and generate wealth for future generations. The U.S. Sovereign Wealth Fund Initiative The executive order instructs the Secretary of the Treasury and the Secretary of Commerce to develop a plan for creating the fund within 90 days. The fund aims to: - Promote fiscal sustainability- Reduce the tax burden on American families and small businesses- Establish long-term economic security- Enhance U.S. economic and strategic leadership internationally The fund is expected to be operational within 12 months, focusing on monetizing government assets. Specific funding mechanisms are yet to be determined, with tariffs being considered as a potential source. The U.S. sovereign wealth fund may invest in various sectors: 1. Infrastructure projects2. Manufacturing hubs3. Advanced defense capabilities4. Cutting-edge medical research5. Strategic assets like TikTok The fund's creation may reshape America's approach to government investment and provide a new tool for competing in the global technological landscape. The creation of a U.S. sovereign wealth fund faces several challenges: 1. Funding sources: The U.S. has been running deficits for years, unlike oil-rich countries with budget surpluses.2. Political hurdles: The fund's establishment requires Congressional approval.3. Economic concerns: Some experts question the appropriateness of such a fund for a country with trade and budget deficits. The United States would join a list of countries with sovereign wealth funds. Notable examples include: - Norway's Government Pension Fund Global: $1.4 trillion- China Investment Corporation: $1.2 trillion- Abu Dhabi Investment Authority: $829 billion Several U.S. states already have their own funds: - Alaska Permanent Fund: $77.8 billion- Texas Permanent School Fund: $46.5 billion- New Mexico State Investment Council These state-level funds have shown benefits in supporting education and providing dividends to residents. As the Treasury and Commerce Departments develop the plan for the U.S. sovereign wealth fund, questions remain about its structure, governance, and investment strategies. The coming months will be crucial in shaping this initiative that may transform the United States' approach to national investment and economic strategy. The creation of a U.S. sovereign wealth fund represents a shift in economic policy, with implications for the country's financial future and global economic standing. As the plan unfolds, it will likely generate debate and scrutiny from policymakers, economists, and the public.--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 inveting 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; Bringing together 5000 VC/LP firms and 100k+ startups in one unified platform. We are making institutional VC investing as seamless as public markets investing.