Today we have more great news to share with you!
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1.Ukraine's economy stabilizes after shock of war
After experiencing the shock of war and political turmoil, Ukraine's economy is showing signs of stabilization. The country has implemented structural reforms, attracted foreign investment, and diversified its trade partners, which has helped to increase GDP growth and reduce inflation. Despite facing ongoing challenges such as corruption and energy dependency, Ukraine's economy is slowly but steadily moving towards a more sustainable path, offering hope for a brighter future.
2.Wise and Monzo founders back legal generative AI startup’s $10m Series A
Legaltech startup Robin AI has raised $10.5m in a Series A funding round, led by Plural, the VC fund launched by Wise’s Taavet Hinrikus and Songkick’s Ian Hogarth. Robin AI uses proprietary machine learning models to assist with contract drafting and editing, with supervision from its in-house legal team. The platform claims it can reduce companies' legal fees by up to 75%, and is targeting enterprise customers, including law firm Clifford Chance and impact investor Blue Earth Capital. The funding will be used to acquire LawGeex's book of enterprise customers, expand research and development, and hire 100 employees across sales, legal, and engineering, including the opening of an office in New York.
3.Time for private markets to grow your portfolios
Private markets have grown significantly, offering investors diversification, higher returns, and access to growth. Investing after public market declines has historically been rewarding, but investors must consider risks such as illiquidity. Private equity funds have revised net asset value estimates, but fundraising activity remains high, particularly for value-oriented buyout strategies. Private debt strategies are well-positioned to weather a higher interest rate environment and provide a good source of income and diversification. Distressed and special situation funds offer tactical opportunities to trade mispriced listed credit instruments and provide emergency funding.
4.How the titans of tech investing are staying warm over the VC winter
As the pandemic wanes, the venture capital industry is experiencing a lull in activity, dubbed the "VC winter". However, titans of tech investing such as Sequoia Capital and Andreessen Horowitz are staying active by investing in a diverse range of startups, from fintech to biotech. These big players are also embracing new trends such as SPACs and crypto, and leveraging their extensive networks to discover the next big thing. By adapting to changing market conditions and investing in promising startups, these tech giants are staying warm during the VC winter.
5.Sequoia and a16z invested more in fintech than any other sector in 2022
In 2022, Sequoia Capital and Andreessen Horowitz, two of the biggest names in venture capital, invested more money in fintech than any other sector, according to a new report. The trend is a reflection of the increasing importance of financial technology, which is disrupting traditional financial services and creating new opportunities for innovation. The report also highlights other key investment areas for these firms, including biotech and crypto, as they continue to invest in diverse startups and stay ahead of the curve.
6.Momentum for private debt funds is building
Private debt fundraising is increasing as firms like Crescent Capital and Willow Tree Credit Partners raise funds for non-traditional lending opportunities. This trend is driven by investors seeking higher yields and borrowers seeking more flexible financing options. Private debt funds are targeting a range of sectors, such as healthcare, technology, and real estate, and may continue to grow as the economy recovers.
7.Return of private equity suggests revival of London’s salad days
Private equity dealmaking in the UK is showing signs of life after a slow year. Despite the persistent discount on UK equities, stock markets are cheap and the pound remains weak against the dollar, making the country an attractive market for investment. Recent takeover approaches by US private equity firms to UK-listed companies, Hyve and Wood Group, suggest that private equity groups may be looking to find bargains before cyclical market discounts disappear. While a full revival of the deals market seems unlikely, the improved market conditions may lead to further dealmaking.
8.Why college endowments are betting big on VC and PE
College endowments are increasingly turning to alternative investments, such as venture capital and private equity, in search of higher returns and portfolio diversification. This marks a significant departure from the traditional conservative investments in stocks and bonds. This trend is driven by the potential benefits of alternative investments, including the ability to generate higher returns, mitigate risk, and access to opportunities not available in public markets. However, these institutional investors face significant challenges in navigating the complex landscape of alternative investments.
9.Private equity set for second-half rebound
Private equity is expected to recover from the recent slump in activity that set in around the middle of 2022, according to a new report from Bain. Although interest rates have risen, the report notes that a long-expected recession has yet to materialise and that the buyout industry could recover later this year, with dealmaking rebounding by the summer. Bain’s annual private equity report shows how abruptly the slowdown set in last year, with global buyout deal value falling 35% to $654bn, though both dealmaking and fundraising were strong by long-term standards. The bigger problem for the industry is the exit environment, with buyout exits falling 42% to $565bn.