Mid Year Review 2024: European Fundraising Sentiment with Chris Wade, Isomer Capital

An exciting discussion on what makes European venture more stable now, the impact of interest rates on M&A activity, the need for regulation and ethics in AI, defense tech in VC and many more.

Jul 24, 2024

Transcript

In this episode of the EUVC podcast, David discusses with Chris Wade, Founding Partner at Isomer Capital the current sentiment in the European venture capital ecosystem.

They touch on topics such as VC sentiment, comparisons to previous years, LP appetite, the potential IPOs of Revolut and Klarna, the rise of AI and semiconductor companies, and the geopolitical and economic uncertainties affecting the industry.

Chris also reflects on the positive and negative developments in 2024 and the importance of humanity prevailing over negative forces.

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Chapters:

01:19 VC Sentiment in 2024
02:36 Comparing 2021 and 2024
04:01 European Venture Capital Landscape
05:00 The Power Law in Venture Capital
11:06 Emerging Managers and AI
13:26 The Importance of Exits
23:58 The Semiconductor Renaissance
27:39 Global Political Climate and Its Impact
30:31 Predictions and Reflections
31:40 Standing by Predictions
32:45 Interest Rates and M&A
34:48 AI's Impact on Venture Capital
38:49 Regulation and Ethics of AI
46:51 Geopolitical Tensions and Defense Tech
57:53 Personal Growth in 2024
01:01:12 The End of Mega Funds Era

✍️ Key Take Aways

VC sentiment in Europe is positive, but it is important to avoid comparing the current market to the anomaly of 2021.
European venture capital is more stable and rational when valuations are reasonable and companies have a chance to survive.
The potential IPOs of Revolut and Klarna could have a positive impact on European venture capital sentiment.
The rise of AI and semiconductor companies is an exciting development in the industry.
Geopolitical and economic uncertainties, as well as wars and hate, are concerning factors that can impact the venture capital ecosystem.
M&A activity is expected to increase as corporates look to acquire startups with new technologies.
The acquiring universe has a significant technology gap that needs to be addressed.
Humanity needs to prevail over negative forces for a positive future. Lowering interest rates could trigger a sea change in M&A activity.
AI is a hot topic in venture capital, with significant investment in generative AI and a 300% increase in capital going into AI in Europe.
Regulation and ethics are important considerations in the development and deployment of AI.
Defense tech, particularly in areas like cybersecurity and sensor technologies, presents significant opportunities for venture capital.
International collaboration in R&D is crucial for technological advancements.
Small funds with upper quartile returns are seen as attractive in the VC industry.

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