David Waterhouse’s Post

Trust, but verify: Why investors demand control? At Envex Ventures, and at every other investment company, we trust the founders, but we also want assurances. As Reagan said, trust is important, but so is verification. We use contracts and control to ensure that our expectations are met. But why control? Investors have experienced situations where trust alone is not enough. We want safeguards, especially in unpredictable scenarios. Writing it down doesn't mean we are distrustful. It means clarity. Contracts protect the interests of both parties and clarify expectations. So we trust founders, but we need to check expectations through contracts and control systems. #startup #vc #investor #founder

Defense-focused early and growth stage companies have historically been challenging for both PE and VC investors. The reliance on a few very large customers, with lengthy sales cycles is often a type of risk that many of these investors prefer not to underwrite. However, as technology continues to penetrate deeper into every industrial sector - investors are beginning to embrace these sectors. As detailed in PitchBook today - "A lower-middle-market PE firm in the defense and government sector rapidly secured hundreds of millions of dollars for its latest buyout fund. The swift fundraising haul underscores substantial investor interest in the industry, driven in part by the US government’s increased reliance on the private sector for digital transformation of its operations and technological update of US military forces." Here at Endeavor Colorado, we are deeply engaged with companies active in space-tech and aerospace. Colorado has one of the country's most robust ecosystems in these industries. We often here stories from many of these entrepreneurs about how difficult it is to connect with investors. It is nice to see that perhaps investors are warming to the idea. Endeavor Colorado Zeb King Tegan Stanbach Kathryn Dickson Julia Johansson #privateequity #venturecapital #innovation #entrepreneurship #investing #founders #startups https://lnkd.in/gMKzW5uW

Setting up a new defense-tech fund is not without its challenges, however, not least because the current fundraising environment has been especially difficult for emerging managers. According to PitchBook’s Q3 2024 European Venture Report, almost two-thirds of capital raised by European VCs this year went to experienced firms—defined as those with four or more funds—their highest percentage in a decade. But the sector itself can be an obstacle when raising capital, according to Firlej, particularly when VCs must rely on government agencies as the main source of LP commitments. While attitudes are changing, he said, it’s not happening fast enough. Many LPs still have strict criteria on what they can and cannot invest in even if they are active in the defense sector.

The European Investment Fund (EIF) gets pitched by a lot of VC funds — nearly 700 last year, head of VC investments David Dana tells Sifted. Until recently, very few of those were defence tech or dual use funds; but now that’s changing. At the beginning of 2024, the EIF — the biggest investor in European VCs — announced a €175m pool of money to invest in defence tech, the size of which Dana hopes “will increase in the future”. In June, the EIF clarified that it will be investing in so-called dual use tech — which has both military and commercial applications — but not weapons or ammunition. Since then, VCs have been more eager to pitch the EIF, says Dana: “Most of them were on hold, in a way — waiting for this clarification before submitting a proposal.” He says the EIF is currently considering 8 to 10 defence or dual use funds, as well as a few mid-market private equity funds. (The EIF hasn’t yet made any investments in these funds but expects to do so by the end of the year.)

The European Investment Fund (EIF) gets pitched by a lot of VC funds — nearly 700 last year, head of VC investments David Dana tells Sifted. Until recently, very few of those were defence tech or dual use funds; but now that’s changing. At the beginning of 2024, the EIF — the biggest investor in European VCs — announced a €175m pool of money to invest in defence tech, the size of which Dana hopes “will increase in the future”. In June, the EIF clarified that it will be investing in so-called dual use tech — which has both military and commercial applications — but not weapons or ammunition. Since then, VCs have been more eager to pitch the EIF, says Dana: “Most of them were on hold, in a way — waiting for this clarification before submitting a proposal.” He says the EIF is currently considering 8 to 10 defence or dual use funds, as well as a few mid-market private equity funds. (The EIF hasn’t yet made any investments in these funds but expects to do so by the end of the year.)

The Dutch Ministry of Defence announced a new investment fund to be established, the SecFund (‘Security Fund’). This fund, with a fund capital of 100 million euros, will provide early-stage financing to Dutch start-ups, scale-ups and innovative SMEs that meet the innovation needs of Defence. The fund invests up to a maximum amount of 5 million euros per company. The Ministry of Defence, the provinces, the Ministry of Economic Affairs, the regional development companies and the industry are joining forces for national security, innovative strength and economic growth. Innovative companies in the defence sector experience a threshold in obtaining financing more often than companies in other sectors, according to research by the European Union. This new capital fund will enable dutch startups and scaleups to scale to serial production and help the Dutch ministery of defense to protect dutch and NATO interests. Our company is still bootstrapping but it is good to know that these resources are available. 🦅 🦅🦅 #GuardFromAbove #EvolutionEage #DroneproductionNL https://lnkd.in/edVHVrsb

🚨 News Alert! 💰 Riverside Acceleration Capital just closed a massive $235M fund! How did they pull it off? 🔍 Get the scoop here: https://lnkd.in/esqsF_x6 🤝 Follow Geekflare for more tools and resources like this. #VentureCapital #Funding #TechNews #Startup #Investment #Business #Innovation #Finance

This WSJ article highlights how uninformed investors put their money into two companies, including an offsite construction factory, that maybe they shouldn't have, but what's done is done. #investors #investments Michael Mackin Shawn Landa Ben Hershey Ken Semler Tamara Burch Andrew Lioi Paul Barretto PMP Thomas Coronato Yana Billet https://lnkd.in/gvNXMbww

🌿 Virescent Ventures is thrilled to announce the $100m first close of our second climate technology investment fund with the backing of over 50 investors including cornerstones Westpac and the Clean Energy Finance Corporation!   The transition to a lower-emissions global economy offers unprecedented opportunities for innovation, growth and investment across all sectors – and Australia is uniquely placed to accelerate this transition by being a leader in climate tech. Fund II will build on the success of our first portfolio which has deployed more than $270 million across 34 world-leading Australian climate tech companies. Virescent Ventures is excited to be partnering with Westpac and the CEFC to accelerate our assessment of investment opportunities.   The Australian Financial Review has featured the announcement today – and you can read the story in the comments. Anthony Miller Peter Herbert Michael Chen Christopher Tate Anthony Potts Ian Learmonth Kristin Vaughan Ben Gust Blair Pritchard Alex Oppes Jonathon Cronin Tess Englund Mathew Velcic Sarah Fuller #ClimateTech #NetZero #ClimateAction #NetZero #NetZeroEconomy #ClimateStartUps #Investment #EnergyTransition #Startups #Innovation #Westpac #CEFC

Despite facing a rollercoaster of economic headwinds and global uncertainty over the last few years, VC performance is reportedly stabilising, and fundraising conditions are expected to improve. Investor appetite for innovation and entrepreneurial investments is increasing, with AI, technology and health assets giving the sector a boost. In an article for Guernsey Finance, Carey Olsen Partners Rachel de la Haye and Andrew Tually summarise recent trends in fund structuring and highlight the appeal of Guernsey as a domicile for VC promoters and investors. Read here: https://okt.to/2Hr9Uz #GuernseyFinance #SustainableFinance #Funds