MARKET PULSE #4 – Navigating Sustainable Business Frontiers: Outlook on the Horasis India Meeting 2023

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Scheduled for November 26-27 in Adelaide, Australia, the Horasis India Meeting 2023 is set to converge an array of distinguished business leaders from across the globe. This highly anticipated assembly, a collaborative effort between Horasis, the Government of South Australia, and the Confederation of Indian Industry (CII), aims to foster impactful discussions on cooperation, impact investing, and strategies for sustainable growth. 

Pioneering Circular Economy: A Centerpiece of Discussions 

Among the prominent figures attending is Berthold Baurek-Karlic, the CEO of Venionaire Capital AG. Baurek-Karlic is set to contribute significantly to a central panel discussion focusing on “Designing for Life-Time Circularity.” This critical discourse, centered on circular economy principles, underscores the crucial role of sustainable practices in shaping the contemporary global business landscape. 

Expressing his anticipation, Baurek-Karlic remarked, “The 2023 Horasis India Meeting serves as a pivotal platform for global leaders to steer conversations towards tangible, impactful solutions. Our emphasis on circular economy strategies strongly aligns with the conference’s agenda, presenting a compelling avenue to address pressing global challenges.” 

Charting a Sustainable Future 

The event presents an exclusive opportunity for innovators and entrepreneurs to establish synergistic partnerships and explore new ventures. Leveraging Adelaide as a strategic hub, participants aim to drive investments not only in Australia but also across the expansive Asia-Pacific region. 

Baurek-Karlic emphasized, “It’s a privilege to contribute to the discourse on designing a circular economy. Venionaire, being a crucial part of the InvestCEC project, remains steadfast in spearheading initiatives that echo the values of sustainability and innovation.” Furthermore, Baurek-Karlic will take the opportunity to invite the participants to attend the Word Venture Forum 2024, where there will be a thematic focus on impact and sustainability. The EU’s Directive SFRD also applies to companies or individuals from third countries operating within the EU. It is therefore crucial to have these topics presented internationally. 

 

In conclusion, the 2023 Horasis India Meeting emerges as a catalytic force, nurturing collaborations and discussions that transcend borders, steering the world towards a more sustainable and interconnected global economy. Venionaire takes Venionaire is very proud to send their CEO to this event as a panelist, thus making an active contribution in the conference’s success. 

MARKET PULSE #3 – Content Strategy Guide

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Having a strong online presence is paramount for the success of any startup. In today’s digital age, where consumers turn to the internet for information, entertainment, and solutions, startups must harness the power of the online world to thrive. One of the most effective ways to achieve this is through a well-planned and SEO optimized content strategy. In this comprehensive guide, we will delve into the importance of SEO optimized content and also provide valuable insights to help startups create a smart content strategy that drives visibility, engagement, and growth.

 

We also have a video on our YouTube Channel, in which Amanda Intelli, AI Video Assistant at Venionaire Capital, is diving into the optimal content strategy for startups:

 

1. Understand the Power of SEO:

Search Engine Optimization (SEO) is the holy grail of online visibility. Therefore, by optimizing your website and content for search engines, you increase the likelihood of appearing in top search results. Startups must grasp the significance of SEO and its potential to drive organic traffic to their websites. For this reason, these key facts need to be considered: 

  • According to a study by BrightEdge, organic search drives 53% of all website traffic. This further highlights the critical role of SEO in attracting visitors. 
  • SEO leads have a 14.6% close rate, compared to outbound leads like direct mail or print advertising, which have a 1.7% close rate (Source: HubSpot). This underlines the quality and relevance of traffic that SEO can bring to your startup. 
  • Google processes over 5.6 billion searches per day (Source: Internet Live Stats). This sheer volume of search queries emphasizes the vast potential audience that startups can tap into with SEO optimization.

2. Identify Your Target Audience:

Before diving into content creation, it’s crucial to identify your target audience. Understanding their needs, preferences, and pain points will significantly help you tailor your content to meet their expectations. Here’s why this step is essential: 

  • Research conducted by Neil Patel shows that 47% of consumers view 3-5 pieces of content created by a company before talking to a sales representative. This emphasizes the role of content in nurturing leads and guiding them through the buyer’s journey. 
  • Personalization is key. In fact, according to a report by SmarterHQ, 72% of consumers say they only engage with personalized messaging. Knowing your audience intimately allows you to craft content that resonates on a personal level.

3. Create Valuable and Engaging Content:

To stand out in the crowded digital landscape, startups must provide content that adds value to their audience’s lives. Whether it’s educational blog posts, informative videos, or engaging social media content, focus on delivering high-quality, relevant, and engaging information that addresses your audience’s pain points and solves their problems. Additionally, here are some statistics to reinforce the importance of value-driven content: 

  • Content marketing generates three times as many leads as traditional outbound marketing, but it costs 62% less (Source: DemandMetric). This cost-effectiveness makes content marketing an attractive option for startups with limited budgets. 
  • According to a study by the Content Marketing Institute, 61% of consumers are more likely to buy from companies that provide custom content. This highlights the direct correlation between content personalization and consumer trust.

4. Optimize On-Page Elements:

While writing compelling content is essential, optimizing on-page elements plays a pivotal role in SEO success. Pay attention to meta titles, meta descriptions, headings, and URLs, ensuring they are keyword-rich and concise. Additionally, incorporate internal and external links to strengthen your content’s credibility and relevance. Consider these insights: 

  • Pages with meta descriptions receive 5.8% more clicks than those without (Source: backlinko). Crafting compelling meta descriptions is crucial for attracting clicks from search engine results pages (SERPs). 
  • Internal linking can significantly impact your website’s SEO. According to Backlinko, pages with more internal links tend to rank higher on Google. This emphasizes the importance of an effective internal linking strategy.

5. Embrace Different Content Formats:

Diversify your content formats to cater to different audience preferences. Furthermore, explore blog posts, videos, podcasts, infographics, and social media content to engage with your audience through different mediums. This will not only enhance user experience but also increase your reach and brand visibility. Here’s why content format diversity matters: 

  • Over 3.37 billion internet users consumed video content in 2022, with a projected increase to nearly 3.5 billion by 2023, highlighting the popularity of video marketing. 
  • Video marketing accounted for 82% of global internet traffic in 2022. This certainly underlines the dominance of video as a medium and its importance in reaching a vast online audience. 
  • Infographics are liked and shared on social media three times more than other types of content (Source: zipdo). This underscores the shareability and engagement potential of visual content.

6. Consistency and Frequency:

Consistency is key when it comes to content creation. Therefore, develop a content calendar and stick to a regular posting schedule. As a result, this will help build brand trust, maintain audience engagement, and improve your search engine rankings. Remember, quality content matters, but so does consistent delivery. Consider these facts: 

  • Companies that publish 16 or more blog posts per month get 3.5 times more traffic than those that publish 0-4 monthly posts (Source: HubSpot). This demonstrates the direct correlation between content volume and website traffic. 
  • Social media algorithms favor consistent posting. Platforms like Facebook reward businesses that post regularly by showing their content to a wider audience.

7. Leverage Keyword Research:

Keyword research is the backbone of any successful content strategy. Identify relevant keywords and phrases related to your startup’s niche and incorporate them strategically into your content. This will not only boost your search engine rankings but also attract a highly targeted audience. Consider the following facts: 

  • Long-tail keywords (phrases with three or more words) account for 70% of all web searches (Source: Moz). Hence, targeting long-tail keywords can help startups capture specific and motivated audiences. 
  • Voice search is on the rise, with predictions indicating that by 2024, there will be 8.4 billion voice-enabled digital assistants, and the global voice recognition market will be worth $26.8 billion. This trend has prompted businesses to optimize their websites for voice search and adapt their marketing strategies to changing consumer behaviour. (Source: demandsage)

 8. Promote Your Content:

Creating exceptional content is just the first step; promoting it is equally important. Leverage social media platforms, influencer collaborations, email marketing, and guest blogging to amplify your content’s reach. Engage with your audience, encourage social sharing, and actively participate in relevant online communities. Here’s why content promotion is crucial: 

  • Content promotion can result in a 200% increase in leads (Source: Adobe). This statistic highlights the lead generation potential of effective content distribution. 
  • Collaborating with influencers can be highly effective. Data from influencer marketing platform MuseFind shows that 92% of consumers trust an influencer more than an advertisement or traditional celebrity endorsement

How to start? 

Crafting a smart content strategy rooted in SEO optimization is a crucial growth driver for startups. By understanding the power of SEO, identifying your target audience, and creating valuable content consistently, startups can establish a strong online presence, attract a highly targeted audience, and ultimately drive business growth. Our “Venionaire Growth Punk” experts are happy to help you develop such content strategies, adapt them to your unique startup, and watch as your brand flourishes in the digital realm. 

 

Remember, content is king, and a well-executed content strategy can be the key to unlocking success for your startup! 

 

  1. SEO Power

SEO boosts online visibility. 

It drives 53% of website traffic. 

SEO leads convert at 14.6%. 

Google handles 5.6 billion daily searches. 

 

  1. Target Audience

Understand your audience’s needs. 

47% view 3-5 pieces of content before purchase. 

Personalization is essential (72% engagement). 

 

  1. Valuable Content

Content marketing creates more leads (3x) for less cost (62%). 

Custom content builds trust (61% more likely to buy). 

 

  1. Keyword Research

Long-tail keywords are 70% of web searches. 

Voice search is growing (8.4 billion by 2024). 

 

  1. On-Page Optimization

Meta descriptions boost clicks by 5.8%. 

Internal links improve SEO rankings. 

 

  1. Content Formats

Video consumption is rising (3.5 billion users). 

Video accounts for 82% of internet traffic. 

Infographics are highly shareable. 

 

  1. Consistency

16+ blog posts/month bring 3.5x more traffic. 

Consistent social media posting expands reach. 

 

  1. Content Promotion

Content promotion leads to a 200% lead increase. 

Collaborating with influencers builds trust (92%). 

MARKET PULSE #2 – A Benefit Beyond Borders: The European Venture Sentiment Index

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In the world of venture capital, every decision counts. In this landscape of calculated risks and high stakes, having access to reliable insights is essential. Enter the European Venture Sentiment Index (EVSI), a transformative report that is reshaping how VC investors perceive and navigate the European start-up ecosystem.

A Trusted History: The EVSI’s Origins

The EVSI embarked on its journey in the first quarter of 2020. A period fraught with uncertainty due to the COVID-19 pandemic. It was during these tumultuous times that Venionaire Capital recognized the imperative need for a comprehensive barometer to gauge the health of Europe’s dynamic start-up ecosystem. Since its inception, the EVSI has served as an indispensable resource.  It is providing a clear and informed view of the state of innovation and investment in Europe.

To be more precise, here are 7 things you need to know about the EVSI explained by Amanda Intelli, our Educational Video Expert:

Validity and Expertise: Beyond the Numbers

The EVSI report is the product of a rigorous methodology and profound expertise. Over 4,000 seasoned investors, including business angels, venture fund managers, and family offices, actively participate in the European Venture Sentiment Surveys. Furthermore, the surveys, conducted by Venionaire Capital, employ personal interviews within a focus group and a smaller control group.

The collected data undergoes meticulous scrutiny, resulting in the creation of indices for current sentiment and projected outlook. These indices weigh critical factors, such as investor willingness to invest, perceptions of startup valuations, the quality of deal flow, the level of competition, and other related factors. The outcome is not just data. It’s a robust and actionable dataset that can indicate current and upcoming preferences and behaviours of investors with regards to their investment decisions.

Your Contribution Holds Significance

You may wonder why your participation in the European Venture Sentiment Survey is vital. The answer is clear: your insights are invaluable. As VC investors or Business Angels, your perspectives and experiences within the start-up ecosystem carry substantial weight. By actively participating in the survey, you directly influence the accuracy and relevance of the EVSI, shaping the trajectory of European venture capital.

 

Sign Up for the Newsletter

 

A Benefit Beyond Borders

The influence of the EVSI transcends individual contributions, benefiting the entire European ecosystem:

Investors Gain Precision: The EVSI aligns your perspectives with market sentiments, enabling you to benchmark your outlook against peers across regions and industries. This empowerment leads to more informed investment decisions and enhanced risk management.

Start-ups Flourish: For start-ups, the EVSI is an invaluable compass in the turbulent seas of entrepreneurship. It offers insights crucial for international expansion, fundraising readiness, and strategic decision-making in challenging economic climates.

Industry-Wide Insights: While other indices may have a regional or investor group focus, the EVSI provides a comprehensive view of the European venture landscape. It encompasses diverse economic regions and various start-up sectors, making it a go-to resource for industry-wide insights.

Unlocking the Future of European Venture Capital

In the data-driven world of VC investing, the European Venture Sentiment Index is more than just numbers. It’s a strategic guide and an essential resource for the VC community. By actively contributing to the EVSI, you become part of a movement that is driving innovation and growth within Europe’s start-up ecosystem.

In a Europe-wide, quarterly survey, we assess the current sentiment of venture capital investors and business angels. Furthermore, we assess their current outlook for the coming quarter. Unregulated private investors (such as family offices, high-net-worth individuals, and top-managers), as well as regulated (institutional) investors have a strong impact on the speed of development and disruptiveness of European innovation. On the other hand, European and regional governments have implemented a range of mechanisms, designed to support and foster innovation in specific fields and encourage private co-investments. It is a rather untransparent market, where dynamics of valuations, the climate to raise funds, and only very active investors sense the quality of deal flow in all kinds of stages, regions, and industries.

Join the conversation, share your insights, and embrace the power of informed decisions with the European Venture Sentiment Index.

MARKET PULSE #1 – The Significance of Achieving Product-Market Fit

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In the world of startups, securing Series A funding is a crucial milestone on the path to growth and success. Less than 15% of all startups who received seed capital will take this hurdle and get a chance to accelerate growth, or get on a soonicorn track. However, before professional venture capital funds are willing to invest into your venture, they need to see evidence of a strong product-market fit. In this article, we will explore what product-market fit entails, why it is vital for series A funding, and how you can prove it through suitable metrics.

In this video Amanda Intelli, our AI educational video expert, is also explaining all you need to know about product-market fit:

Understanding Product-Market Fit

Product-market fit can be defined as the sweet spot where your product or service perfectly aligns with the needs and desires of your target market. It is the point where your offering resonates so strongly with customers that they are willing to pay for it, and you have a sustainable competitive advantage.

Why Product-Market Fit is crucial for Series A Funding

  1. Validation: Demonstrating product-market fit validates that your startup has a clear understanding of its target audience and their pain points. Investors are more likely to support ventures that have a proven demand for their product or service.
  2. Scalability: Achieving product-market fit signifies that your startup has identified a scalable business model. Companies that can rapidly grow and penetrate a large market are highly interesting for investors.
  3. Reduced Risk: Startups that have achieved product-market fit are perceived as less risky investments. Evidence of a strong product-market fit suggests that you have reduced the risk of failure or market rejection.

How to proof Product-Market Fit

While product-market fit is often qualitative, there are several metrics that can help you quantify and prove this alignment. Here are a few metrics to consider:

  1. Customer Acquisition Cost (CAC): A low CAC shows that you have found a cost-effective way to acquire customers, implying that your product meets their needs. This is indeed a positive sign for investors.
  2. Customer Retention Rate: A high customer retention rate suggests that your product is delivering long-term value and meeting customer expectations. This demonstrates the stickiness of your offering in the market.
  3. Net Promoter Score (NPS): NPS measures customer satisfaction and loyalty. A high NPS indicates that your product is meeting or exceeding customer expectations, leading to positive word-of-mouth referrals.
  4. Revenue Growth: Consistent and significant revenue growth is a strong indicator of product-market fit. Investors want to see a track record of increasing revenues, signaling a growing customer base and demand.
  5. Market Demand: Conducting customer surveys, focus groups, and analyzing market trends can provide insights into the demand for your product. This data can help validate your product-market fit.

To sum up, achieving product-market fit is a critical step towards qualifying for series A funding. It shows that your startup has identified a target market and developed a product that meets their needs. By utilizing suitable metrics to quantify and prove this alignment, you can instill confidence in investors and increase your chances of securing funding. Remember, product-market fit is an ongoing journey, and continuous feedback from customers will help you adapt and refine your offering to stay ahead in the competitive startup landscape.

If you have any questions or need further guidance on achieving product-market fit, feel free to reach out. We’re here to support you on your entrepreneurial journey!

How to use Multiples for Startup Valuation

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Startup valuations have become an increasingly difficult, as the crisis put pressure on the market. The most critical aspect for the entrepreneurial ecosystem is to back up valuations as solid as possible. A startup’s valuation is the pre-money valuation of equity (including cash on accounts, but without debt) before an investment. It determines how much of the company’s shares will be sold to investors, or how much equity will be given to employees, against dilution. Startup valuations are determined by various factors such as the company’s founders or management team quality, product, technology, scalability, and obviously financial and operational performance, industry trends, as well as competition.

One of the most important factors that determines the value of a startup is the multiple – compare Venture Method, or First Chicago Method. A multiple is a metric that investors use to evaluate a company’s performance and potential for future growth in comparison to peers. Investors usually use multiples to calculate the value of a company based on its revenue or earnings. Typically, the higher the multiple, the more valuable the startup or the higher the price of shares for investors. The larger a company gets the more multiples expand, in order to reflect market and brand power.

There are several sources for startup multiples, including publicly-traded companies in the same industry, investment advisors, and private market data sources.

Publicly-Traded Companies

Publicly-traded companies in the same industry are an excellent source of multiples. They have readily available financial statements, which can provide insight into how much similar companies are worth. Additionally, these companies’ P/E ratios can be used as a benchmark to measure whether a startup is overvalued or undervalued.

Investment Advisors

Experienced investment advisors – just like Venionaire Capital – are another excellent source of multiples. They have access to private market data, proprietary transactional data, industry trends, and information on recent deals. Investment advisors often use an adapted discounted cash flow (DCF) method with a terminal value called “First Chicago Method” to determine startup valuations. This approach factors in the startup’s expected cash flows and uses a (mostly very high) discount rate to calculate the present value of those cash flows.

Private Market Data Sources

Private market data sources are another great source of multiples. Many data sources provide information on comparable companies, recent deals, and valuation trends. Some popular private market data sources include PitchBook, CB Insights, or Bloomberg. While these sources often require quite expensive subscriptions, they provide a lot of information. This can be helpful when determining a startup’s valuation. Our Analysts recommend to use www.dealmatrix.com to calculate startup valuations, and have the results challenged by professional advisors.

In conclusion, determining a startup’s valuation is critical for entrepreneurs, investors, and employees. Multiples are an essential component of startup valuations and provide an excellent benchmark for comparing the performance of similar companies. There are several sources for multiples, including publicly-traded companies, investment advisors, and private market data sources. Entrepreneurs and investors should consider utilizing these sources to make informed decisions about startup valuations.

 

EVSI REPORT Q1 2023 | OUTLOOK FOR Q2 2023 DECREASES

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Q1 2023 was expected to be the continuation of the European economy recovery, as highlighted by the International Monetary Fund report after three macroeconomic events shook European economics (WEF, 2023). The war in Ukraine, rising infl ation, and the energy crisis. Despite signs of recovery in Q4 2022, in Q1 2023 Venture investment was faced with a banking crisis as well, which aff ected several institutions, including vital Silicon Valley Bank and Credit Suisse.

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New Instagram Feature Alert

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In this article, you’ll discover the latest new features that Instagram & Meta will launch in the next weeks.

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Stand Out from the Crowd

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How PR Can Help Start-Up Founders Establish Themselves as Niche Experts

As a start-up founder, certainly one of your primary goals is to establish yourself as an industry expert and a thought leader in your niche. Doing so can help you gain credibility, attract investors, and furthermore differentiate yourself from competitors. But with so many start-ups vying for attention, how can you position yourself as a niche expert? How can you stand out from the crowd? The answer lies in public relations (PR).

PR is certainly an effective tool that can help start-up founders build their personal brand and position themselves as experts in their field. Here are some ways that founders can use PR to establish themselves as niche experts:

  1. Leverage Your Story: Every founder has a unique story that can resonate with the public. Maybe you come from an unusual background, you have a passion for a particular cause or you probably mastered a significant hurdle. Your story can help you connect with your target audience. Work with a PR professional to craft a compelling story that shows your expertise in your niche.
  2. Create Thought Leadership Content: As a founder, you likely have a wealth of knowledge and insights that can benefit your target audience. With this in mind you can create thought leadership content such as blog posts, white papers, and industry reports that provide valuable insights and show your expertise. Share your content on social media, your website, and with relevant media outlets to establish yourself as a go-to resource in your niche.
  3. Participate in Industry Events: Conferences and trade shows are excellent chances to network with other professionals in your field. Thus you can establish yourself as an expert. Consider speaking at events or participating in panels to share your kow-how with others in your niche. Work with a PR professional to secure speaking engagements and to promote your participation in relevant events.
  4. Engage with the Media: The media can help you reach a broader audience and establish yourself as a niche expert. Reach out to relevant journalists and media outlets to share your story and expertise. Offer to provide commentary on industry trends or offer your knowledge for relevant stories. Work with a PR professional to develop a media strategy.  Hence you can build relationships with journalists and media outlets.
  5. Build a Strong Online Presence: Your online presence is obviously crucial in positioning yourself as a niche expert. Create a professional website that shows your expertise and provides valuable resources to your audience. Develop a social media presence that engages with your audience and provides thought leadership content. Consider partnering with influencers and industry experts to broaden your reach and establish yourself as an authority in your field.
Conclusion

All things considered, public relations (PR) are evidently a powerful tool that start-up founders can use to establish themselves as niche experts. Additionally it helps them to differentiate themselves from competitors. By leveraging their unique story, creating thought leadership content, participating in industry events, interact with the media, and building a strong online presence, start-up founders can prove their expertise. Furthermore they can position themselves as thought leaders in their field. Working with a PR professional can help founders develop a strategy that maximizes their visibility and credibility.  Ultimately that leads to higher credibility, investment, and growth opportunities.

How dangerous SVB’ bankruptcy for Europe’s startups?

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How dangerous is SVB’s bankruptcy for Europe’s startups?

It’s the biggest bank failure in the U.S. since the 2008 financial crisis, and the collapse of Silicon Valley Bank (SVB) could yet prove to be a major blow to Europe’s startup ecosystem.

A concatenation of crises in Europe and around the world has been severely impacting our economy for a good three years. The startup or venture capital market is not immune to geopolitical and general economic developments. Historically, however, crises have also had their positive sides. They have often been drivers of innovation. That explains the high investment records and the relatively stable market sentiment (see also: European Venture Sentiment Index). What happens now when the heart of the innovation industry, Silicon Valley Bank (SVB), the most active startup investment bank in the world, suddenly finds itself in trouble due to the rising interest rate environment and poor management? Is this bank critical to the system? Does this bank failure also affect Austrian founders and investors? Was the SVB an isolated case?

SVB’s importance to the innovation sector

SVB was indeed, as FED, FDIC and HM Treasury have stated, in any case not system-critical for the banking sector, but very much so for the innovation sector. Hundreds of thousands of jobs in the technology sector and deposits from over 1,000 venture funds were suddenly at stake. Banks in general seem to be particularly risky at the moment. This week, for example, the rating agency Moody’s changed the short-term rating of the entire U.S. banking sector from “stable” to “negative. Credit Suisse’s credit default swaps – a key indicator of default risk – shot up. In light of this news, we feel very much reminded of 2008. The banking sector is once again in enormous trouble due to high savings volumes, low lending, coupled with the geopolitical crisis, a generally crisis-ridden economy and increased interest rates.

Parallels to 2008?

However, compared to the Lehman Brothers bank failure in 2008, one has to see very clear differences here. Although SVB ranked 16th among all U.S. banks in terms of total assets, it was far smaller than Lehman Brothers. A venture capitalist specializing in the technology industry may be systemically relevant for its niche. But it is of rather minor importance for the global financial system. SVB’s bankruptcy did not cause a global, cross-industry domino effect, as we saw in 2008. It is more likely to be the central banks that are causing the sector to suffer globally.

Experts considered the Silicon Valley Bank as one of the most important financiers for the start-up scene in the USA. But German and Austrian startups are also said to be affected by the insolvency. Worldwide, there is talk of a total of several tens of thousands of affected corporate customers. SVB’s bankruptcy could yet prove to be a major blow to Europe’s startup ecosystem, as it is not clear what HSBC (the new owner of SVB U.K.) will do with the bank. The U.S. bank was very strong and important in our niche, which no one else could or wanted to fill. European banks are risk averse and much more hesitant when it comes to lending to startups, specifically technology companies. They much preferred to finance large real estate developers, but this could be their undoing. The first rumors that Raiffeisen Bank International, which apparently gave credit lines worth billions to Signa Holding, among others, is not doing very well are already making the rounds in Vienna’s financial center.

Impact on European startups and financing bottlenecks

Historically, the innovation sector has generally been more crisis-resistant than liquid stock markets – although not immune to corrections – and has even been spurred on in part by a wave of start-ups based on many releases of talent. What was always needed, however, was venture capital. In this area, the company has recently already had to contend with financing bottlenecks. The loss of SVB has further exacerbated this situation. We now fear that this collapse will discourage other banks even more than before from financing technology companies in the same way.

In the case of our portfolio companies, we have always paid attention to good risk management. Accordingly, SVB’s bankruptcy affected neither them nor our funds. In our crypto fund “Tigris Web3”, we are paying close attention to how the eruptions in the traditional financial sector will play out. Tendentially, our analysts see a great opportunity for decentralized financial providers, provided the stablecoin problem is solved. So-called CBDC (Central Bank Digital Currency) can quickly trigger an upswing in the crypto market. There may be an opportunity in this market even if the traditional financial world wobbles.

 

This article written by Venionaire Capital’s CEO Berthold Baurek-Karlic was originally published as a guest commentary in the Wiener Zeitung. 

 

How wealthy families seek returns

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How wealthy families seek returns

The degree to which family offices are willing to take risks is also influenced by the age of their investments. Family portfolios have recently undergone some changes.

In the previous year, investors had to be skillful to achieve positive returns. Apart from a few outliers like the Brazilian Bovespa, stock indices and government bonds ended the year on a downward trend. With the recent rise in interest rates, the previous upward trend in real estate prices has stalled in several locations. These developments have caused significant changes in the portfolios of family offices, which tend to maintain a low profile.

Liquidating real estate

While family offices’ investment approaches are typically kept confidential, recent investment trends have been observed, according to our Managing Partner (CEO) Berthold Baurek-Karlic, who spoke to the Austrian Newspaper “Die Presse“. “I have witnessed the most rapid divestment from real estate in my entire career. The scale and swiftness of the reduction were astounding”, said our CEO.

Family Offices

Over the past few months, Europe’s family offices have been re-allocating their portfolios in a manner that would be unsuitable for investors seeking rapid returns. “The investors we collaborate with are highly resilient”, notes family office specialist Frank Floessel in an interview with “Die Presse”. “The same goes for investments in venture capital or private equity. These asset classes have lower liquidity and exiting them in the short term often incurs significant discounts.”

Investors with Long-term Perspective

Family offices, however, frequently possess the luxury and fortitude to maintain investments for decades. This is why they are instrumental in supporting investors in nascent businesses, where it is uncertain when and how much profits will be earned. Industries reliant on research, in particular, demand long-term commitment.

Our CEO Baurek-Karlic explains: “We are overseeing a space company that would not have been possible without the support of the public sector and family offices. They may have considerable resources, but at the end of the day, the technological undertaking must be feasible, financially viable, and sustainable.”

Baurek-Karlic and Floessel refrain from mentioning the entrepreneurial families that they advise on asset management. However, the experts stress that various offices have diverse investment strategies. While some prioritize philanthropy, others distance themselves from charitable contributions and patronage.

Legacy Wealth

“There are families that wholeheartedly embrace venture investments, while others adopt a highly conservative investment approach. My differentiating factor there is primarily the age of the wealth,” explains Floessel. “The older the wealth, the greater the probability of a more distant relationship with it.”

You can find the full article (published in German) here.

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