A Decade of Innovation & Digital Transformation: A Look at the Buzzwords and Developments

Over the past 10 years, the world has witnessed a rapid and transformative period of innovation and digital transformation. From groundbreaking technologies to disruptive business models, the last decade has brought forth a multitude of buzzwords and developments that have shaped industries across the globe. In this article, we will delve into some of the most significant advancements and highlight the key buzzwords that have emerged during this transformative period. 

Artificial Intelligence (AI) and Machine Learning

No discussion on digital transformation is complete without mentioning AI and machine learning. These technologies have revolutionized various industries, enabling computers to mimic human intelligence and learn from data. From chatbots and virtual assistants to predictive analytics and autonomous vehicles, AI and machine learning have become essential tools for businesses seeking to gain a competitive edge. 

Internet of Things (IoT)

The IoT refers to the network of physical devices, vehicles, appliances, and other objects embedded with sensors and software that enable them to connect and exchange data. Not only has this interconnectedness paved the way for smart homes, smart cities, and industrial automation. IoT has also played a crucial role in data collection, enabling businesses to gather valuable insights and optimize their operations. 

Cloud Computing

Cloud computing has transformed the way businesses operate and store data. With the ability to access and store data remotely, companies can reduce costs and enhance scalability. Moreover, Cloud-based services offer flexibility, security, and collaboration opportunities, allowing businesses to streamline their operations and focus on their core competencies. 

Big Data and Analytics

The exponential growth of data has given rise to the need for advanced analytics tools and techniques. Big data analytics leverages large datasets to uncover patterns, correlations, and trends, enabling businesses to make data-driven decisions. This has paved the way for personalized marketing, predictive maintenance, and enhanced customer experiences. 

Blockchain Technology

Blockchain technology burst onto the scene with the advent of cryptocurrencies like Bitcoin. However, its potential goes far beyond digital currencies. Blockchain offers a decentralized and transparent approach to record-keeping, enabling secure transactions, supply chain traceability, and smart contracts. Its impact spans industries such as finance, logistics, and healthcare. 

Augmented Reality (AR) and Virtual Reality (VR) 

 AR and VR have transformed the way we interact with digital content and the physical world. AR overlays digital information onto the real world, enhancing experiences in fields like gaming, retail, and education. VR, on the other hand, immerses users in a virtual environment, revolutionizing areas such as training, entertainment, and healthcare. 

The past decade has been a whirlwind of innovation and digital transformation, reshaping industries and revolutionizing the way we live and work. From AI and machine learning to IoT and blockchain, these developments have ushered in a new era of possibilities. As we reflect on the incredible journey of the last 10 years, it’s clear that these buzzwords and advancements will continue to mold the future, presenting both challenges and opportunities for businesses worldwide. Embracing and harnessing these technologies will be crucial for organizations aiming to thrive in an increasingly digital world. 

Join Us at the World Venture Forum 2024 in Kitzbühel 

To celebrate this remarkable decade of progress, exploration, and transformation, we invite you to join us at the 10-year anniversary of the World Venture Forum in 2024, set against the breathtaking backdrop of Kitzbühel. At this prestigious event, thought leaders, innovators, and visionaries from around the globe will gather to dive deeper into these groundbreaking topics, explore emerging trends, and chart the course for the next wave of innovation. Stay tuned for an unforgettable experience that will shape the future of business and technology. See you in Kitzbühel! 

Crypto Markets prepare for movements as SEC Ripple judgement comes closer

The ongoing legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC) has been closely monitored by the cryptocurrency industry and our Tigris Web3 team. This lawsuit is significant because it could determine whether XRP is a security or not, which could have implications for other cryptocurrencies and the markets in general. In the latest development, Ripple has claimed that the SEC suffered a setback in the lawsuit. That could potentially lead to a favorable outcome for Ripple.

Dispute over XRP’s Security Status

Ripple has denied the SEC’s allegations that XRP is a security and has argued that it is a digital currency like Bitcoin and Ethereum. However, the SEC claims that Ripple raised $1.3 billion through unregistered sales of XRP, which is a significant amount. The outcome of this case could have far-reaching consequences for the cryptocurrency industry.

Potential Favorable Outcome for Ripple

Ripple’s claims that the SEC failed to convince the court to obtain internal documents from Ripple regarding XRP’s security status could be significant. The documents in question could provide evidence that Ripple acted in good faith and did not intentionally violate securities laws. This could potentially lead to a favorable outcome for Ripple in the lawsuit. Additionally, Ripple predicted that the summary judgment in the case would be delivered in 2023, which provides some clarity on the timeline for the legal battle. Some experts and advisors of our fund even see a judgment before July very realistic.

Implications for the Cryptocurrency Industry

If the judge rules in favor of Ripple in the summary judgment, it would establish legal precedent that XRP is not a security. This would be a significant win for the cryptocurrency industry as a whole, as it would provide greater clarity on the regulatory status of cryptocurrencies. It could also lead to increased adoption of XRP.

Uncertainty Remains

However, it is important to note that the outcome of the case is still uncertain. The judge could rule in favor of the SEC in the summary judgment, or the case could proceed to trial. Additionally, even if the judge rules in favor of Ripple, the SEC could still appeal the decision. It is likely that the legal battle between Ripple and the SEC will continue for some time. We cannot yet determine the ultimate outcome.

In conclusion, the legal battle between Ripple and the SEC is a significant development in the cryptocurrency industry. The outcome of this case could have implications for the global crypto industry and market. While Ripple’s latest claims could potentially have increased the chances for a more favourable outcome for the company, the situation remains completely uncertain as there are no official statements published yet. The industry – incl. our Tigris Web3 crypto fund management team – will be closely monitoring the case as it unfolds.

How to use Multiples for Startup Valuation

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

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.

New Instagram Feature Alert

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

Layers Of Decentralization

In todays globalized world, centralized web2 players take an ever more important part in our lives. By using the data their users give away eagerly and with consent, they are able to influence which news we read online, which content we consume, which ads trick us into buying things we don’t really need and many other business models. The vision of a decentralized web3 challenges business models of data-driven internet giants. It aims to give back data ownership to individual users. Unfortunately, decentralization in itself does not only bring benefits to users. It also comes with a whole new set of challenges, risks and attack angles.

Exploiting a concept.

Decentralization is occasionally being used as a keyword or concept to cover up projects embedded within a global grey zone of anonymous “DAOs” that are trying to evade any form of legal responsibility for damaging and self-enriching behaviour, or to straight up exploit the lack of legislation to set up and commit fraud. Rug Pulls and deliberately installed backdoors to exploit, hack and steal users assets are unfortunately not an isolated instance in the world of crypto assets.

One of the most famous and blunt cases was the (claimed to be) “decentralized and trustless network” Squid Game Token. Claiming to be part of a bigger soon to be launched blockchain gaming application, it created an immense wave of hype. Even mainstream media fired it up, and eventually it ended up as a massive rug pull when user noticed there was no way to exit from the project and all of a sudden the liquidity pools were drained. But how can such a disaster happen with a “decentralized” and “DAO governed” project?

What is “Decentralization”?

The three main pillars of blockchain technology are immutability, transparency, and decentralization. Even though all of them are in the end equally important to the concept, the decentralization pillar is often misunderstood. Digital assets tend to be (if we count out certain outliers such as Tether or very early stage projects) decentralized. That simply means that a certain number of validators draw a blockchain consensus. That effectively eliminates “centralized” counterparty risk and exploitation by this centralized entity.

Despite most commonly known digital assets formally being decentralized, there are big differences in their level of decentralization. Decentralized Autonomous Organisations (DAOs) serve as a backbone for the decentralized economy. They receive a lot of attention in the sphere of decentralization and decentralized governance. Decentralized Autonomous Organisations have formed more or less naturally and gained attention as a response to very high counterparty risk in the poorly regulated and supervised digital asset ecosystem. A good example of counterparty risk that has caused a sizeable financial woe to investors is the recent case of FTX. In this case customer assets were either gambled away or seized in bankruptcy proceedings.

What the concept of DAO is trying to do differently is that it allows full transparency over the whole project. That includes treasury of foundations, staked assets, assets bonded in smart contracts, and self-custodianship over personal assets. You can interact with open and transparent protocols. You can also commit to changing and improving the product. However, the private keys remain under your control.

Centralization risk of Decentralized Autonomous Organizations

Even though DAOs are here to reduce counter-party risk and create trustless networks managed by an open and transparent governing body, sadly cases like Squid Game Token are still happening due to their close connection with the projects and the lack of decentralization at their core. Decentralized Autonomous Organizations function on a basis of vote proposals and voting to apply changes on the blockchain. The more assets an individual has staked, the more votes the individual has. As DAO functions on the Proof of Stake mechanism. One or a few stakeholders can highly centralize the voting power by making the whole protocol centralized in its core.

In case DAO governs the protocol, but de facto has highly centralized voting power on a single entity, the entity can run changes however they see fit. Liquidity pools can be drained, rewards can be locked, and tokenomics proposals can be rigged in the favor of the controlling group.

Not every ‘relatively centralized’ DAO intends to engage in fraudulent behavior

The main problem with a high level of decentralization is, besides the fragmented thus slower network, the cost to run the network. Decentralization requires a higher number of validators. They will need a financial incentive to run the hardware, as well as stake themselves or in delegated PoS attract (aka share financial incentives with) a significant sum of assets to become qualified validators. The cost is a primary reason why a lot of projects opt for a more centralized type of governance until the project gains sufficient traction and becomes self-sustaining with a larger number of validators. Once the project has sufficient traction and revenue generation, it is financially feasible to keep the high number of validators content and committed to the project.

The best alpha potential lies with early-stage projects. These projects tend to be more centralized due to limitations in sharing financial incentives with many validators. Therefore, filtering out good and harmful projects is crucial.

In the beginning of the project, high level decentralisation allows the team to fix the issues and add features far faster than it would otherwise while operating much leaner. But there is always this risk of things going in the wrong direction. The path between an “efficient” early stage, and centralization being too high of a risk can be very narrow.

The way one can reduce this specific potential risks is to perform a strict due diligence process. This process consists of deep research of numerous parts of the project. KYC of the team behind the project, genesis token supply distribution, governance functionality design, decentralization ramp up roadmap, tokenomics proposals, governance proposals, initial asset distribution plan, and many more. Anybody carrying out this type of DD could have easily avoided falling into a trap such as Squid Game Token.

Do you want to know more about our internal approach to research and how the fund operates and analyze? Hit us up!

Author: David Teufel

Becoming a chart topper with ChatGPT? We just released the very first AI song!

Becoming a chart topper with ChatGPT? We just released the very first AI song!

Stand Out from the Crowd

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?

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. 

 

The promises of Web3: Decentralized finance & NFTS – exploring the future of internet

The promises of Web3: Decentralized finance & NFTS – exploring the future of internet

The Internet has undoubtedly come a long way since its inception. From static web pages to dynamic content, the evolution of the Internet has been remarkable. Right now, we are witnessing a new wave of innovation with the emergence of Web3. Web3 promises to revolutionize the way we interact with the Internet. In this blog article, Venionaire Capital’s Venture Partner and Internet Pioneer Peter Augustin will explain the differences between Web1, Web2 and its youngest sibling Web3 as well as the promises of the latter. 

We also have a video about the development from Web1 to Web3 with our AI educational video expert, Amanda Intelli:

Web1 and Web2: Back to the roots 

In Web1, websites were static, and the only information available was what the website owner provided. Thus it was more or less some kind of a digital business card online. There was no possibility for a two-way communication and users could not interact with the website or its content. With the rise of Web2 websites became more dynamic and operators could interact with users. Social Media platforms like Facebook or Twitter enabled user to like, comment and share content. Thanks to the “like button”, suddenly the internet became a more interactive space.  

However, Web2 has its limitations regarding digital property. Emails were not encrypted, and big data companies like Google could access and literally read our data without our consent. Of course, their motive was not spying on us like some kind of secret service, but because our lives are interesting for them from an advertising and marketing perspective. We have all experienced these re-marketing methods, haven’t we? You search for any product online and suddenly you see ads for this kind of product on every site you visit online. That can be kind of annoying.

For the user Web1 and especially Web2 means the loss of ownership of his data. This is, where Web3 comes in. 

Web3: The Promises and Potential of Cryptography 

The next logical step after Web1 and Web2 is Web3 and it promises to eliminate the limitation of its predecessors. Web3 is finally enabling digital ownership through using blockchain encryption technology, commonly known as “crypto” (short for “cryptography”). 

Cryptography is for sure not an invention of our century. It has been around for thousands of years and is based on mathematical principles. For a long time cryptography was used almost exclusively by secret services to communicate securely and safely. With the rise of Web1 and even more Web2, being online became an eventually almost permanent status. The internet found its way into every household and every smartphone. This development finally created the need for public E2EE (end-to-end encryption) and decentralized networks, thus creating an environment in which digital property can be owned, traded and most important protected. Nonetheless, the responsibility for secure storage of the “private key” that grants access to all digital assets lies in the hands of the data owners. Unquestionably they must handle it like their valuables or important documents in a secure location.

Innovations in Web3 Technology: NFTs and Smart Contracts

Bitcoin is well known to the wider public, and also NFTs are a popular example of how Web3 technology can be used. Remember the previous example about Google having access to our emails? One way to keep your emails away from Google’s goggles (pun intended!) would be converting your emails into NFTs. So every single email is a NFT, a non-fungible token that could be stored on decentralized cloud services. 

Another innovation based on Web3 are smart contracts. They have evolved from other projects, like Ethereum. Smart contracts are digital contracts that are processed between participants on the blockchain. One business area that smart contracts have enabled is called “decentralized finance” (DeFi). This is like a digital bank that processes contracts through blockchain technology rather than human processors. The customers use their wallets to interact with this digital bank.  

Challenges of Web3 

The biggest challenge in Web3 will be to make the user experience as simple as possible and the handling as similar as possible to its predecessors. At the same time, it is crucial to highlight the users’ responsibility that comes with holding digital property. Losing your private key (or the seed phrase that you need to recover it), you might lose access to data without any possibility to recover it. Likewise, the use of smart contracts or DeFi is only recommended after thorough code audits. As contracts are binding, they have to be checked before they are concluded – and in Web3 and Smart Contracts “Code is Law”. 

The future of Web3 

Web3 will not only create new professions like custodians, whose responsibility will be to keep private keys safe or code auditors, who check smart contracts for fraudulent content or errors. It has the potential to disrupt industries like banking, insurance and notary services. Real estate transactions could be completely represented on the blockchain using NFTs and Defi and even government agencies might shift use cases to the blockchain. The possibilities are almost endless. 

In Conclusion 

Web3 promises to revolutionize the way we interact with the Internet. Encryption technology enables secure ownership of digital property, and smart contracts enable new business opportunities. However, it is essential to understand the responsibilities that come with holding digital property and to ensure thorough code audits before entering into smart contracts or DeFi. With Web3, new professions will emerge, and industries will be disrupted. The future of the Internet is exciting, and Web3 is at the forefront of this revolution. 

WHERE TO FIND US

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