Venture Capital Insights

If you benchmark projects on €/kWp, you miss the point. The real metric is €/MWh. In practice, I keep running into the same discussions: How do you compare Project A (say, in Eastern Europe) with Project B (say, in Southern Europe), when grid, construction, O&M or financing have totally different cost profiles? Instead of arguing over individual cost items, there’s a simpler way: look at LCOE (€/MWh). What really matters (short & clear): --> €/kWp = construction indicator, but not a success factor. --> LCOE (€/MWh) captures CAPEX, OPEX, performance (PR/degradation), financing & lifetime. --> A “more expensive” project can deliver cheaper power thanks to higher yield, longer lifetime, or better financing. --> Investors and banks already benchmark on €/MWh, not €/kWp. Number flavor (utility scale, all-in incl. EPC, development, financing): -->Typical Utility Scale DE/CEE (2024): ~560–600 €/kWp all-in -->Project A: 580 €/kWp, PR 80%, WACC 6%, 25 years -> ~49-52 €/MWh -->Project B: 640 €/kWp, PR 87%, WACC 5%, 30 years -> ~40-43 €/MWh --> Same installed capacity, different assumptions –> output beats input. Do you still benchmark projects on €/kWp? Or already on €/MWh? And which 3 variables move your LCOE the most: PR, WACC, O&M, degradation? #AndreasBach #LCOE #SolarPV #ProjectFinance #CleanEnergy

Don't get fooled by the Figma IPO. We are headed for one of the coldest IPO winters in history. Welcome to the IPO Ice Age. Here's why, the impact it will have on the VC ecosystem, and how founders need to prepare: First, here's why the IPO market is collapsing: - IPO Collapse: In 2022, 1,671 companies went public globally. By 2023, that dropped below 400. In 2024, it slipped further to just 300. And in 2025 YTD, only 243 companies have made it to the public markets. - Market headwinds: With new tariffs, weakening dollar and uncertainty around interest rate cuts - CFOs and boards are pressing a pause to new listings - VC Fundraising decline: In 2025 H1, US based VC funds raised $26B across 238 funds, that’s a 34% drop from previous year and the lowest in over a decade. This slowdown will certainly weigh on future startup investments. - Late stage deal decline: Based on the Carta report, there has been a significant decline in the series C and series D ventures from the previous year - these are the companies that were considering going public. - Harsh Public Markets: Public markets are overhyping good assets and over punishing the ones that are missing growth targets.  ——— The Effect of a Weak IPO Market on Venture Investments: - Liquidity Crunch: IPOs are the key channel through which VCs return capital to LPs. With fewer exits, LPs will hesitate to deploy new capital. - Down Rounds: Without IPOs startups will see down rounds and more onerous term sheets such as liquidity preferences, higher ownerships or deals with downward protections. - Rise in Secondary Transactions: In absence of IPOs, secondary market can become more active with higher discounts - Profitability Vs Growth at all cost: Founders and VCs may start to pursue profitability versus growth at all costs. - Decline in Investments: Fewer but higher quality ventures will get funded. Those who survive will build profitable venture that are built to survive. ——— How Founders Should Prepare - Profitability: Focus on profitability and Unit economics early on. - Extend Runway: Stay frugal, cut burn and find ways to reach break even as early as possible. - Diversify Liquidity Options: Explore opportunities outside of an IPO, including strategic partnerships, M&As and secondary transactions - Creative Partnerships: Explore partnerships to accelerate products, GTM, Marketing and funding. Don’t try to do everything yourself - Explore Global Options: If the US IPO and Venture markets slow down, there may still be options to raise funds and revenues globally ——— TAKEAWAY This slowdown is not the end of opportunities. It is simply the end of Shortcuts. In the next few years, we will see the most resilient ventures rise profitably despite the headwinds.

Venture Mindset Rule: Get Outside The Four Walls    In venture capital, the best opportunities rarely come knocking at your office door. The story of Dropbox's $1.2M seed investment, which turned into a $2B return, perfectly illustrates why getting outside matters.    In 2007, Pejman Nozad, an unlikely VC who started as a rug salesman, met Dropbox founders Drew Houston and Arash Ferdowsi not in a corporate office, but at a rug store in Palo Alto. Connecting through Y Combinator's demo days, Nozad's unconventional path led to one of tech's most successful investments.    Why going beyond office walls matters:    1. Echo chambers kill innovation: Research shows that in 300+ large companies, over 85% of innovation leaders focus on internal sources. VCs can't afford this luxury.    2. Great deals hide in unusual places:  – Instagram started with a chance bar meeting  – Warby Parker was discovered through consumer satisfaction scores  – Snapchat was spotted at a kitchen table  – Dropbox emerged from a rug store meeting    3. Hunter vs Fisher mentality:  – Good VCs are like fishermen: they pick up opportunities when they appear  – Great VCs are hunters: they track down exceptional projects proactively    The data backs this up: 90% of VC success comes from sourcing the right deals, and only 10% comes from picking them, according to a16z partner Chris Dixon. 

What Do VCs Look For? Top Metrics Across 10 Industries 🚀📊 Ever wondered what drives a VC’s decision across diverse sectors? Here’s a snapshot of the top 3 metrics that matter most in 10 industries—from crypto to pharma. Report by SlydS- Decks, Fundraise & Strategy 🔹 Manufacturing: • COGS (Cost of Goods Sold) – Profitability starts here. • Production Efficiency – Scalability hinges on this. • Inventory Turnover – Signals strong demand and supply chain health. 🔹 Crypto: • Total Value Locked (TVL) – Trust in the ecosystem. • Daily Active Users (DAU) – Community engagement. • Token Retention Rate – Long-term user belief. 🔹 SaaS: • MRR/ARR – Predictable revenue fuels growth. • Churn Rate – Customer satisfaction indicator. • Net Revenue Retention (NRR) – Upsell potential. 🔹 E-commerce: • LTV/CAC Ratio – Profitability of customer acquisition. • Conversion Rate – Sales efficiency at its core. • Average Order Value (AOV) – Boosts overall revenue. 🔹 Healthcare & Biotech: • Regulatory Approval Rate – Gateway to market. • Time to Market (TTM) – Speed matters. • Patient Outcomes – Long-term credibility. 🔹 Fintech: • Transaction Volume – Platform adoption. • Loan Default Rate – Risk control. • Customer Retention Rate – Long-term viability. 🔹 Clean Energy: • LCOE (Levelized Cost of Energy) – Competitive pricing. • Energy Efficiency – Maximizing ROI. • Carbon Emission Reduction – ESG appeal. 🔹 Pharma R&D: • Pipeline Success Rate – Drug development efficiency. • Market Potential (TAM) – Revenue opportunity. • R&D Efficiency – Capital optimization. 🔹 Consumer Apps: • Engagement Rate – Platform stickiness. • CAC vs. Retention – Profitability metric. • ARPU (Average Revenue Per User) – Monetization strength. 🔹 Logistics & Mobility: • Delivery Fulfillment Rate – Reliability in action. • Cost per Mile – Margin driver. • Fleet Utilization Rate – Asset efficiency. 🎯 Key Insight: Across industries, adoption, efficiency, and retention remain the core pillars VCs look for. Whether it’s a blockchain project or a SaaS startup, scalability and user engagement often tip the scales. Which metric surprised you the most? Drop your thoughts below! 👇 #VentureCapital #Startups #MetricsMatter #Fintech #Crypto #SaaS #Ecommerce #CleanEnergy #Healthcare #Pharma #Logistics #GrowthHacking

I research dozens of VCs and their investment strategies (been called a “Wikipedia on Investors” 😉); this is 1 trend I see emerging in how investors source & find the startups to invest in: Many of the successful VC funds started an accelerator/ incubator/ venture studio arm attached to them. 🔸 a16z operates ‘a16z Talent’ accelerator program. 🔸 500 Startups has the 500 Startups Accelerator. 🔸 Seedcamp runs Seedcamp Accelerator. 🔸 Plug and Play runs programs across multiple sectors. 🔸 SOSV is a VC firm that operates a network of accelerators. In the current VC model, making one single bet out of thousands in hope it will generate substantial returns for the Fund seems almost impossible. In that, early stage venture building programs can be indispensable in allowing the investors to make more informed bets. If you’re raising for the 1st time - this might mean attending a startup program alongside of it! #fundraisingplaybooks #capitalraising #startupfunding

VC's - Recovery Remains a Long Way Off   There have been plenty of warnings about VCs over investing and the massive boom in 2020-22 would end in tears!!   The latest US Q2 results show these risks have not gone away In many ways it’s a perfect storm, a huge investment boom since 2016 was pumped up by Covid stimulus and zero interest rates, VCs couldn’t resist and FOMO prevailed   The quality of ideas was well short and similar to the dotcom boom which imploded in 2000   The first signs of problems emerged in 2021, then interest rates cranked up in 2022 causing contagion, IPO exits are frozen, valuations plunged, and investors retreated – its now a case of survival of the fittest   Globally estimates of the number of VC backed start-up range from 120-145,000   As Pitchbook US figures shows – 50,000 VC backed startup companies is double the number in 2016 – yet new funding is now back to 2017 levels, something has to give… not all VCs or start-ups will survive     Pitchbooks Q2 summary: “Compared to many recent quarters, Q2 was quiet for the venture market”   “Deal counts leveled off, exits and fundraising remained slow, and no major players collapsed, a la Silicon Valley Bank” “That doesn't mean VC is on a stable road to recovery”   “The reset remains in full force. Valuations continued their declines at the later stages, with venture growth seeing the deepest cut. LPs continued to slow-play new commitments, and few S-1s were filed for future IPOs”   “Everything in the market right now seems relatively precarious, as if it were waiting for a recession” “The good news is some of the pressures that have piled onto the markets are letting up — that ebb just hasn't translated into material change in the slowdown” “The venture market shift from growth-at-all-costs to the efficient use and deployment of capital was a major change from the loose financing climate of 2021, and it's likely creating a more sustainable environment”   “The next couple of quarters will be telling for VC”   “Currently, more than 50,000 companies in the US are VC-backed, a figure that doubled from 2016”   “Not all of those can expect a soft landing. Down rounds are beginning to pick up significantly in the data, highlighting both that companies are resigned to the fact that they might have previously raised at too high of a valuation, but also that investors are sticking to their ideals and not falling back into the fast-paced funding environment we just left” “Restaurant chain Cava's IPO was a bright spot of Q2, but that alone likely won't restart the IPO market”   “Too many tech companies are waiting for conditions to improve materially before filing an S-1 showing the losses that have often characterized tech listings in recent years”   “There are now around 800 unicorns in the US, but there have been just two exits in 2023 that have generated a billion-dollar valuation” “VC still has a long way to go” #fintech #vcfunding #unicorns  

🔎 How VCs find the best startups (Hint: It’s not LinkedIn DMs) Ever wonder how VCs actually find those world changing startups? Spoiler: It’s not as simple as posting “I have money, send me your pitch” on LinkedIn and waiting for the magic to happen. Although some investors I've encountered worryingly do seem to think that's how it works... The best startups simply aren’t hunting for random investors, they’re heads down, building. Meanwhile, great VCs are busy hunting them. And the competition is fierce. 💡 So how do they do it? ✔️ Networks, Networks, Networks Top VCs spend months (sometimes years) building relationships before a founder is even raising. It’s all about trust, consistency, and showing up. ✔️ Hard Work & Dedication To quote Floyd Mayweather: “Hard work, dedication.” Great sourcing means having thousands of conversations, attending countless events, and nurturing long-term relationships. No shortcuts. ✔️ Tech + Data Investors are increasingly using machine learning to sift through startup data and spot promising companies early. It’s efficient, but AI has its biases. ✔️ Avoiding the FOMO Trap Sourcing isn’t about reacting to hype; it’s about identifying potential before the hype ever starts. That means knowing the difference between speed and velocity (hint: one has direction, the other doesn’t). The takeaway? Sourcing the best companies is relentless, relationship-driven, and often the unsung foundation of venture investing. #VentureCapital #StartupInvesting #PrivateMarkets #VC #Investing #WealthBuilding #Shuttle

🔔Japanese VCs might be cooler than you think I recently read a piece by Jesper Koll; he is a former Chief Strategist and H of Research at J.P. Morgan and is recognized as a top Japanese economist. This very data-driven piece is "Are start-ups and VC a good investment in Japan?" Here are some insights. 𝟭| 𝗝𝗮𝗽𝗮𝗻𝗲𝘀𝗲 𝗩𝗖𝘀 𝗵𝗮𝗱 𝗮 𝗵𝗶𝗴𝗵𝗲𝗿 𝗻𝗲𝘁 𝗜𝗥𝗥 𝗰𝗼𝗺𝗽𝗮𝗿𝗲𝗱 𝘁𝗼 𝗨𝗦 𝗩𝗖𝘀 In the ten years pre-COVID, the net IRR (internal rate of return) for Japan VC funds was 18% per year, compared to 15% for US VCs, 14% for EU ones, and 13% for Asia. This was achieved also with a similar risk profile - the net IRR standard deviation was basically similar across regions at around 13%. 𝟮| 𝗚𝗹𝗼𝗯𝗮𝗹 𝗩𝗖 𝗳𝘂𝗻𝗱𝗶𝗻𝗴 𝗱𝗿𝗼𝗽𝗽𝗲𝗱 𝘀𝗶𝗻𝗰𝗲 𝘁𝗵𝗲 𝘀𝘁𝗮𝗿𝘁 𝗼𝗳 𝟮𝟬𝟮𝟮, 𝗯𝘂𝘁 𝗝𝗮𝗽𝗮𝗻’𝘀 𝘀𝘁𝗮𝗿𝘁-𝘂𝗽 𝗴𝗿𝗲𝘄 Japanese interest rates are de-coupled from the US and EU ones. Japanese target companies do not face the same fall in net present value of future cash flow as in US and EU. This is why there is a divergence in growth. 𝟯| 𝗧𝗵𝗲 𝗝𝗮𝗽𝗮𝗻𝗲𝘀𝗲 𝗣𝗠 𝗞𝗶𝘀𝗵𝗶𝗱𝗮 𝗶𝘀 𝗺𝗮𝗸𝗶𝗻𝗴 𝘀𝘁𝗿𝘂𝗰𝘁𝘂𝗿𝗮𝗹 𝗰𝗵𝗮𝗻𝗴𝗲𝘀 𝘁𝗼 𝗽𝗿𝗼𝗺𝗼𝘁𝗲 𝗲𝗻𝘁𝗿𝗲𝗽𝗿𝗲𝗻𝗲𝘂𝗿𝘀𝗵𝗶𝗽, 𝘀𝘁𝗮𝗿𝘁𝘂𝗽𝘀, 𝗮𝗻𝗱 𝗩𝗖 𝗰𝗲𝗻𝘁𝗲𝗿𝗲𝗱 𝗶𝗻𝗻𝗼𝘃𝗮𝘁𝗶𝗼𝗻 "100 Unicorns by 2027" is Kishida's new program, promoting de-regulation changes such as encouraging banks to lend against growth prospects rather than hard collateral and credit guarantees by founders. This has also led to a new wave of public-private VC partnerships in Japan. ⛑ A risk would be the government's over-helping; "a key reason why the venture capital model is successful is because it encourages failure. For every unicorn you get, say, 1,000 failures. The model works because it creates a market place where only the best survive. Japan's capitalism is the world's undisputed champion of protecting against failure. The good news is that the rapid growth in both fiduciary and corporate VCs should ensure against “zombie start-ups” becoming a hallmark of ‘new capitalism’." *** Follow for more Japan VC space content! (article: https://lnkd.in/gRRyuBTB)

Here's how the IPO market is currently affecting the state of Venture Capital : Since 2021, we've witnessed a significant decline in Initial Public Offerings (IPOs), shaping the landscape of venture capital in unexpected ways. As venture capitalists, we know that IPOs serve as critical exit opportunities for our portfolio companies, but the scarcity of public offerings is causing a ripple effect across the industry. 🚀 Delayed Exit Paths: The decline in IPOs means our venture-backed companies face prolonged journeys to achieve liquidity events. This impacts our ability to recycle capital and support new innovations. 🔍 The Quest for Alternatives: As traditional IPOs become scarce, venture capitalists are actively exploring alternative exit strategies. Mergers and acquisitions (M&A) are gaining prominence as companies seek strategic partnerships for investor liquidity. 💼 Valuation Challenges: Companies staying private for more extended periods may encounter valuation pressures in the private market. As investors, we must carefully navigate the push for higher valuations to ensure sustainable growth. 💡 Reevaluating Fundraising Strategies: The decline in IPOs is reshaping the fundraising landscape. LP sentiment, investment horizons, and risk appetites are being reevaluated as we adapt to this evolving environment. 🔒 Extended Holding Periods: The scarcity of IPOs necessitates prolonged holding periods for venture capital firms, impacting fund cycles and the deployment of fresh capital. As we navigate the impact of fewer IPOs, our dedication to fostering innovation and propelling the next generation of disruptors remains unwavering. Let's work together to drive positive change and shape the future of venture capital. 🌟 #venturecapital #ipo #fundraising #startups #innovation #entrepreneurship

💡 Most Important Economic Metrics in Solar PV Projects 1️⃣ Core Financial Performance Metrics • Levelized Cost of Energy (LCOE) - Average cost per kWh generated over the project’s lifetime. - The lower the LCOE, the more competitive the project. • Internal Rate of Return (IRR) - Discount rate that makes NPV = 0 - a key profitability metric for investors. - Utility-scale: 10–14% | C&I: 12–20% | Residential: 18–25%. • Net Present Value (NPV) - Difference between discounted inflows and outflows. - NPV > 0 → the project is financially viable. • Payback Period - Time required to recover initial investment. - Typical PV payback: 4–7 years (C&I) 💰 2️⃣ Cost Structure Metrics • CAPEX (Capital Expenditure) - Modules, inverters, BOS, land, construction. • OPEX (Operating Expenditure) - O&M, cleaning, insurance, admin. • Debt-to-Equity Ratio - Defines your financial leverage — typically 70% debt / 30% equity. • DSCR (Debt Service Coverage Ratio) - Cash available for debt service ÷ total debt service. 3️⃣ Revenue & Production Metrics • Annual Energy Yield (MWh/MWp/year) - Energy produced per installed MWp. • Performance Ratio (PR) - Actual vs. theoretical output efficiency. - Typical: 75–85%. • Capacity Utilization Factor (CUF) - Actual generation ÷ (Installed Capacity × 8760h). - Typical: 18–25%. • Tariff or PPA Price - Defines your revenue - fixed or escalating (1–2%/year common in Africa). • Policy & Market Factors - Local content requirements & incentives - Import tariffs / VAT exemptions - Grid connection costs - Currency & inflation risk - Offtaker creditworthiness - National regulations (e.g., SERA’s self-consumption framework in KSA) 💡 Pro Tip: Mastering these metrics turns a technical project into a bankable investment case.