Venture capital was one of the best asset classes in the world before the dot-com bubble burst. Over the next 10 years, returns plummeted as a result of too much capital in the sector and a lack of public market liquidity.
Then, just as the start-up world was recovering from the tech bubble of the last decade and the negative effects of the ill-considered Sarbanes Oxley legislation, the 2008 financial erupted.
So today, the venture capital community finds itself at a cross roads. While the asset class has been largely abandoned by institutional investors, this disinterest will paradoxically lead to superior returns in the future.
Consider…….
1. Venture capital is no longer be considered a “necessary asset class” to invest in by many limited partners given the sectors insignificant size relative to the financial assets LPs have under management
3. Limited partners, who generally look retrospectively to determine their portfolio allocations, not progressively, have shunned the asset class.
4. But, as a result of this shaking out of the venture capital sector (in terms of #’s of firms and amount of capital raised by those firms) conditions are now actually favorable for sustained long term returns
Taking a data-driven prospective, this presentation argues that the conditions today in the private and public capital markets bode well for superior performance to return to the venture capital asset class this decade. Specifically, therewards accruing to private investors in the leading tech companies of today far exceed what private investors used to earn from their investment in the best companies of previous tech cycles. Several things have changed in the past 5 years or so that have led to this change. This presentation explores what those changes have been.
Avnet, Inc. 2010 Analyst Day & 50th Anniversary Celebration: Dec 15, 2010
Presenters included: Roy Vallee, chairman and chief executive officer; Rick Hamada, president and chief operating officer; Ray Sadowski, senior vice president and chief financial officer; Harley Feldberg, president, Electronics Marketing; and Phil Gallagher, president, Technology Solutions.
Following the analyst day event, Avnet commemorated its 50th anniversary on the New York Stock Exchange by ringing the closing bell.
The monthly newsletter for Mid-America Association of Real Estate Investors. A Real Estate Investing Trade Association based in the Kansas City Metro Area. Find us online at www.MAREInet.com.
Avnet, Inc. 2010 Analyst Day & 50th Anniversary Celebration: Dec 15, 2010
Presenters included: Roy Vallee, chairman and chief executive officer; Rick Hamada, president and chief operating officer; Ray Sadowski, senior vice president and chief financial officer; Harley Feldberg, president, Electronics Marketing; and Phil Gallagher, president, Technology Solutions.
Following the analyst day event, Avnet commemorated its 50th anniversary on the New York Stock Exchange by ringing the closing bell.
The monthly newsletter for Mid-America Association of Real Estate Investors. A Real Estate Investing Trade Association based in the Kansas City Metro Area. Find us online at www.MAREInet.com.
This spreadsheet computes taxation rates for different locations, for different salaries.
Currently included are:
- US / California
- Australia
- UK (old data)
- Sweden (old data)
Computed rates include income taxes, major tax rebates, local taxes (where applicable), retirement tax rebates. In the US it also includes Social Security as a tax (since it's unlike that it's anything but that to anyone under 50 now).
Rates are compared across countries using Purchasing Power Parities.
Note that I created this spreadsheet a while back, and only quickly updated it recently. Therefore, take all figures with a grain of salt, and verify them for yourselves. Suggestions and updates gratefully accepted.
Internet matters: The Net’s sweeping impact on growth,jobs, and prosperity ( ...Julius Trujillo
The Internet contributed 7 percent of growth over the past 15 years and 11 percent over the past five in the G8 as well as South Korea,Sweden, Brazil, China, and India.
Branding and Venture Capital: Key Findings from BIG:VCDeSantis Breindel
The Brand Influence Guide for the Venture Capital Industry (BIG:VC) is the first-ever comprehensive research study on the role of branding in venture capital. This presentation shares all the details on the results, including a breakdown of the key messages, brand behaviors and channels that can empower a VC firm to connect with CEOs and limited partners. Learn more at www.BIG-VC.com
A Frontline Ventures x Point Nine Capital collaboration.
It is no surprise that Germany dominates much of the conversation around European tech — the growth of the startup and venture capital ecosystem has surpassed even the most optimistic of expectations.
As an early-stage software fund in London/Dublin with a pan-European investment view, we are seeing exciting young companies emerging from all over Germany. They are following in the footsteps of already successful global companies like Rocket Internet, Soundcloud, and Auctionata.
Germany’s tech transformation is startling, and seems to only be just beginning. Learn more about:
- funding options for German startups
- notable players in the VC and startup ecosystem
- challenges that lay ahead for German tech
- future opportunities & existing winners
- typical terms offered to startups
- successful exits in Germany so far
This spreadsheet computes taxation rates for different locations, for different salaries.
Currently included are:
- US / California
- Australia
- UK (old data)
- Sweden (old data)
Computed rates include income taxes, major tax rebates, local taxes (where applicable), retirement tax rebates. In the US it also includes Social Security as a tax (since it's unlike that it's anything but that to anyone under 50 now).
Rates are compared across countries using Purchasing Power Parities.
Note that I created this spreadsheet a while back, and only quickly updated it recently. Therefore, take all figures with a grain of salt, and verify them for yourselves. Suggestions and updates gratefully accepted.
Internet matters: The Net’s sweeping impact on growth,jobs, and prosperity ( ...Julius Trujillo
The Internet contributed 7 percent of growth over the past 15 years and 11 percent over the past five in the G8 as well as South Korea,Sweden, Brazil, China, and India.
Branding and Venture Capital: Key Findings from BIG:VCDeSantis Breindel
The Brand Influence Guide for the Venture Capital Industry (BIG:VC) is the first-ever comprehensive research study on the role of branding in venture capital. This presentation shares all the details on the results, including a breakdown of the key messages, brand behaviors and channels that can empower a VC firm to connect with CEOs and limited partners. Learn more at www.BIG-VC.com
A Frontline Ventures x Point Nine Capital collaboration.
It is no surprise that Germany dominates much of the conversation around European tech — the growth of the startup and venture capital ecosystem has surpassed even the most optimistic of expectations.
As an early-stage software fund in London/Dublin with a pan-European investment view, we are seeing exciting young companies emerging from all over Germany. They are following in the footsteps of already successful global companies like Rocket Internet, Soundcloud, and Auctionata.
Germany’s tech transformation is startling, and seems to only be just beginning. Learn more about:
- funding options for German startups
- notable players in the VC and startup ecosystem
- challenges that lay ahead for German tech
- future opportunities & existing winners
- typical terms offered to startups
- successful exits in Germany so far
MASiV focuses on how the most successful software and internet companies use M&A to innovate, grow, and compete. Woodside Capital Partners brings together influential corporate development executives and business unit leaders with CEOs and venture capitalists to talk about current trends in M&A.
Smart TV Buyer Insights Survey 2024 by 91mobiles.pdf91mobiles
91mobiles recently conducted a Smart TV Buyer Insights Survey in which we asked over 3,000 respondents about the TV they own, aspects they look at on a new TV, and their TV buying preferences.
Accelerate your Kubernetes clusters with Varnish CachingThijs Feryn
A presentation about the usage and availability of Varnish on Kubernetes. This talk explores the capabilities of Varnish caching and shows how to use the Varnish Helm chart to deploy it to Kubernetes.
This presentation was delivered at K8SUG Singapore. See https://feryn.eu/presentations/accelerate-your-kubernetes-clusters-with-varnish-caching-k8sug-singapore-28-2024 for more details.
Essentials of Automations: Optimizing FME Workflows with ParametersSafe Software
Are you looking to streamline your workflows and boost your projects’ efficiency? Do you find yourself searching for ways to add flexibility and control over your FME workflows? If so, you’re in the right place.
Join us for an insightful dive into the world of FME parameters, a critical element in optimizing workflow efficiency. This webinar marks the beginning of our three-part “Essentials of Automation” series. This first webinar is designed to equip you with the knowledge and skills to utilize parameters effectively: enhancing the flexibility, maintainability, and user control of your FME projects.
Here’s what you’ll gain:
- Essentials of FME Parameters: Understand the pivotal role of parameters, including Reader/Writer, Transformer, User, and FME Flow categories. Discover how they are the key to unlocking automation and optimization within your workflows.
- Practical Applications in FME Form: Delve into key user parameter types including choice, connections, and file URLs. Allow users to control how a workflow runs, making your workflows more reusable. Learn to import values and deliver the best user experience for your workflows while enhancing accuracy.
- Optimization Strategies in FME Flow: Explore the creation and strategic deployment of parameters in FME Flow, including the use of deployment and geometry parameters, to maximize workflow efficiency.
- Pro Tips for Success: Gain insights on parameterizing connections and leveraging new features like Conditional Visibility for clarity and simplicity.
We’ll wrap up with a glimpse into future webinars, followed by a Q&A session to address your specific questions surrounding this topic.
Don’t miss this opportunity to elevate your FME expertise and drive your projects to new heights of efficiency.
State of ICS and IoT Cyber Threat Landscape Report 2024 previewPrayukth K V
The IoT and OT threat landscape report has been prepared by the Threat Research Team at Sectrio using data from Sectrio, cyber threat intelligence farming facilities spread across over 85 cities around the world. In addition, Sectrio also runs AI-based advanced threat and payload engagement facilities that serve as sinks to attract and engage sophisticated threat actors, and newer malware including new variants and latent threats that are at an earlier stage of development.
The latest edition of the OT/ICS and IoT security Threat Landscape Report 2024 also covers:
State of global ICS asset and network exposure
Sectoral targets and attacks as well as the cost of ransom
Global APT activity, AI usage, actor and tactic profiles, and implications
Rise in volumes of AI-powered cyberattacks
Major cyber events in 2024
Malware and malicious payload trends
Cyberattack types and targets
Vulnerability exploit attempts on CVEs
Attacks on counties – USA
Expansion of bot farms – how, where, and why
In-depth analysis of the cyber threat landscape across North America, South America, Europe, APAC, and the Middle East
Why are attacks on smart factories rising?
Cyber risk predictions
Axis of attacks – Europe
Systemic attacks in the Middle East
Download the full report from here:
https://sectrio.com/resources/ot-threat-landscape-reports/sectrio-releases-ot-ics-and-iot-security-threat-landscape-report-2024/
GDG Cloud Southlake #33: Boule & Rebala: Effective AppSec in SDLC using Deplo...James Anderson
Effective Application Security in Software Delivery lifecycle using Deployment Firewall and DBOM
The modern software delivery process (or the CI/CD process) includes many tools, distributed teams, open-source code, and cloud platforms. Constant focus on speed to release software to market, along with the traditional slow and manual security checks has caused gaps in continuous security as an important piece in the software supply chain. Today organizations feel more susceptible to external and internal cyber threats due to the vast attack surface in their applications supply chain and the lack of end-to-end governance and risk management.
The software team must secure its software delivery process to avoid vulnerability and security breaches. This needs to be achieved with existing tool chains and without extensive rework of the delivery processes. This talk will present strategies and techniques for providing visibility into the true risk of the existing vulnerabilities, preventing the introduction of security issues in the software, resolving vulnerabilities in production environments quickly, and capturing the deployment bill of materials (DBOM).
Speakers:
Bob Boule
Robert Boule is a technology enthusiast with PASSION for technology and making things work along with a knack for helping others understand how things work. He comes with around 20 years of solution engineering experience in application security, software continuous delivery, and SaaS platforms. He is known for his dynamic presentations in CI/CD and application security integrated in software delivery lifecycle.
Gopinath Rebala
Gopinath Rebala is the CTO of OpsMx, where he has overall responsibility for the machine learning and data processing architectures for Secure Software Delivery. Gopi also has a strong connection with our customers, leading design and architecture for strategic implementations. Gopi is a frequent speaker and well-known leader in continuous delivery and integrating security into software delivery.
Epistemic Interaction - tuning interfaces to provide information for AI supportAlan Dix
Paper presented at SYNERGY workshop at AVI 2024, Genoa, Italy. 3rd June 2024
https://alandix.com/academic/papers/synergy2024-epistemic/
As machine learning integrates deeper into human-computer interactions, the concept of epistemic interaction emerges, aiming to refine these interactions to enhance system adaptability. This approach encourages minor, intentional adjustments in user behaviour to enrich the data available for system learning. This paper introduces epistemic interaction within the context of human-system communication, illustrating how deliberate interaction design can improve system understanding and adaptation. Through concrete examples, we demonstrate the potential of epistemic interaction to significantly advance human-computer interaction by leveraging intuitive human communication strategies to inform system design and functionality, offering a novel pathway for enriching user-system engagements.
Elevating Tactical DDD Patterns Through Object CalisthenicsDorra BARTAGUIZ
After immersing yourself in the blue book and its red counterpart, attending DDD-focused conferences, and applying tactical patterns, you're left with a crucial question: How do I ensure my design is effective? Tactical patterns within Domain-Driven Design (DDD) serve as guiding principles for creating clear and manageable domain models. However, achieving success with these patterns requires additional guidance. Interestingly, we've observed that a set of constraints initially designed for training purposes remarkably aligns with effective pattern implementation, offering a more ‘mechanical’ approach. Let's explore together how Object Calisthenics can elevate the design of your tactical DDD patterns, offering concrete help for those venturing into DDD for the first time!
DevOps and Testing slides at DASA ConnectKari Kakkonen
My and Rik Marselis slides at 30.5.2024 DASA Connect conference. We discuss about what is testing, then what is agile testing and finally what is Testing in DevOps. Finally we had lovely workshop with the participants trying to find out different ways to think about quality and testing in different parts of the DevOps infinity loop.
2. RT @MarkTwain The reports of my death have
been greatly exaggerated.
C L E A R S T O N E William Quigley
Managing Director
3. 10 Years ago…
The decade began on a high note… but quickly
evolved into extraordinary difficult times."
C L E A R S T O N E William Quigley
Managing Director
4. Unstable Situation "
Venture Capital Environment - Circa 2000/2001 "
2000 / 2001
Trend Direction…
Valuations
Very high
Falling
Capital availability
Substantial
Beginning to tighten
Fund commitments
$83B & Big Overhang
Shrinking
# of Active Firms
1338
At a high but going down
Tracking index –
NASDAQ
4000
Falling rapidly
Technology spending
Historically High
Dropping quickly
5. VC Fundraising and Performance "
Plummet After a 7X Increase in Capital in Just 4 years
$
90
80
$83
70
60
50
$B
$57
40
$45
30
20
$27
10
$17
$19
$12
$9
0
1996
1997
1998
1999
2000
2001
2002
2003
Source: DowJones VentureSource, NVCA.
6. In the 2000s"
Venture Capital Exits Shifted from IPOs to Less Valuable M&A
VC
Exits:
‘91
–
‘00
VC
Exists:
‘01
–
‘‘09
VC Exits: ‘01 –
09
IPO
12%
M&A
42%
IPO
58%
M&A
88%
Source: NVCA.
12. Much of the recent LP funding to
venture capital has gone into
Cleantech
13. Cleantech Share "
Venture Investments Up 8X
Cleantech investments have crowded-out
other sectors, further decreasing funds
directed towards IT investing.
Source: NVCA.
16. Venture Capital Assets Under Management Are "
Lower Today Than They Were a Decade Ago
300
$262
$270
$277
$253
$253
$254
$255
250
$225
$204
200
$179
150
$B
100
50
0
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
Venture capital investments are now outpacing new funding
commitments by LPs, draining the pool of investable capital."
Source: NVCA.
17. Venture Capital Fundraising As a % of GDP "
Has Rapidly Fallen
$16
$14.1
$14.4
$14.7
1.0%
$13.4
$14.1
$14
$11.1
$11.9
$12.6
0.8%
$12
$10.3
$10.6
$10.0
$10
0.6%
$T
$8
$6
0.4%
$4
0.2%
$2
$0
0.0%
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
Venture Capital fundraising as a % of GDP
has been declining since 2000.
Source: DowJones VentureSource, Bureau of Economic Analysis.
18. Consider…
C L E A R S T O N E William Quigley
Managing Director
21. But After a Long Shake Out, "
Attractive Conditions Ahead…"
• Venture capital fund commitments down for last 3 years
– Positive contra-indicator
• Early stage valuations stable…
– While late stage and IPO valuations growing
• Strong public market appetite for growth stories
– Recent IPOs in the enterprise and consumer
services sectors well received
22. Venture Capital Firms"
Only the Strongest Survived the Post-Bubble Shake-Out
Ac=ve
Informa=on
Technology
Investors
1600
#
of
Ac=ve
Firms
1400
1200
1000
712
514
398
381
800
449
405
416
426
375
313
>3
Deals/yr
600
400
726
724
672
<=3
Deals
626
591
613
597
572
614
572
200
0
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
Active Investors Down"
– 712 active investors in 2000 versus 313 in 2009, a 56% decline."
Average Fund Size Increased"
– $165M in 2000 versus $200MM in 2009."
Source: DowJones VentureSource.
23. Venture-Backed IPOs Will Return to Pre Financial
Crisis Levels in 2011
100
86
80
No. of Venture-Backed OPO’s
80
72
57
57
60
40
20
12
6
0
2005
2006
2007
2008
2009
2010
2011E
A new generation of large market cap tech
companies will increase the field of acquirers.
Source: NVCA and Clearstone analysis.
Selected IPO’s shown in 2011. LinkedIn and Pandora have filed for IPO. Facebook and Groupon IPO are market speculation.
24. VC Environment Today"
Attractive Conditions
Economic Situation"
2011 Trend Direction…
Valuations Moderate Rising in Certain Growth
Markets
Capital availability Adequate Stable
Stable but trending down
Fund commitments $~12B
1/2 of the high &
# of Active Firms ~300
shrinking
Tracking index – Stable with IPO market
2800
NASDAQ open
Good and rising in some
Technology spending Stable
sectors
25. “the
Have you heard the maxim
venture model is
broken” in the last 6
months?
26. That question was really asking
“are VCs being
rewarded for their
work anymore?”
28. More so than earlier tech cycles,
private investors are being
rewarded for potential break out
value at IPO….
Lets look back at the so called
venture capital golden age…..
29. The Golden Age
C L E A R S T O N E William Quigley
Managing Director
30. How were the iconic tech
companies of the past
valued when they
went public?
41. How do the Golden Age
companies compare to
Today’s leading
tech companies?
42. More Value Accruing to Venture Investors, "
Not Public Shareholders
$70
$70
$60
Pre-Money IPO Valuations
$50
Public investors
$40
$40 participated in 99% of the
$B
terminal value of these
$30
companies
$20
$12
$10
$0.23 $0.44 $.065
$0
Cisco Amazon Microsoft VMware Google Facebook
Earlier Tech New Tech
Cycles Cycle
Source: Facebook Pre-Money IPO valuation $70B per
SharesPost private market exchange – February 2011.
43. IPO Valuations Now Exceed the Level "
Reached During the Tech Bubble
$
1200
1000
800
15
$
Millions
600
12
11
400
9
9
9
9
9
8
8
9
8
8
10
9
10
10
7
7
5
200
0
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
Mean
Company
Age
at
IPO
Mean
Pre-‐Money
ValuaKon
Mean pre-money IPO valuations of venture backed companies have
increased at a 16% CAGR since 1990, while company age at IPO
has remained relatively even.
Source: NVCA.
44. So why are early
stage companies
capturing more
value?
45. 3
Things Have
Changed
C L E A R S T O N E William Quigley
Managing Director
46. 1. Internet Growth
Internet Companies Can Reach Critical Mass Faster
% Global Users
2000
vs.
2010
Number
of
Internet
Users
(millions)
22.5
21.4% China*
420.0
124.0
12.2% United
States
239.2
47.1
5.0% Japan
99.1
5.0
4.1% India
81.0
5.0
3.7% Brazil*
72.0
2000
24.0
2010
3.3% Germany
65.1
3.1
3.0% Russia
59.7
15.4
2.6% UK
51.4
8.5
2.3% France
44.6
19.0
2.0% South
Korea
39.4
Source: Internet World Stats. 2010 data as of June 2010
*China figures do not include SAR Hong Kong, SAR Macao and Taiwan. Brazil data for 2009
47. 2. Capital Markets Better Informed
Proliferation of technology specialists in the public markets
Hedge
Fund
Industry
Growth
2.0
12,000
1.6
10,000
8,000
1.2
6,000
0.8
4,000
0.4
2,000
0.0
-‐
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
Number
of
Hedge
Funds
$AUM
Trillions
More hedge funds = more specialized public investors who
understand the growth prospects of tech companies.
Source: Hedge Fund Research.
48. 3. Going Global, Faster
Start-ups Expanding Offshore Earlier in their Lifecycle
$5.7
$1.2
2000
2010
China
GDP
$2.0
$0.6
$1.4
2000
2010
Brazil
GDP
$0.5
2000
2010
India
GDP
Groupon
already
has
35
interna=onal
offices!
$
Trillions
Source: International Monetary Fund.
49. A Venture Capital Revival Is Upon Us
• Conditions are better today for private investors
than they have been in over a decade
• Fewer VC investors are putting capital to work
• Public investors are shifting their allocations back to
emerging growth stories
• This is not a repeat of the dot com and telecom
bubbles circa 1999-2000
• Today’s tech cycle leaders have global reach and
hyper attractive economics
• A new era technology start-up era has emerged
• Companies are scaling faster and accruing value
sooner than ever before
50. So what will drive venture
returns this decade?
• Overallocated to right sectors
• The best funds are sector funds
• IPO market will be healthy
• New sources of liquidity like second market
51. The Venture Capital Model Will Evolve
• Greater liquidity to LPs provided by an increasingly
active secondary position market
• Shortening of the VC investment cycle. Funds will shift
from 5 year investment terms to 3 years
• Growth in sector focused funds
52. Mobile
C L E A R S T O N E William Quigley
Managing Director
53. Mobile is a Burgeoning Market, Driven by
Smartphone Sales and…
Apple
iPhone:
Cumula=ve
Units
Shipped
100
90
80
70
60
Millions
50
40
iPhone
30
20
10
-‐
Source: Apple company filings
54. …Tablet Proliferation
2010
–
2015
Tablet
Sales
and
Users
(Millions)
50
90
80
40
70
Tablet PC
Tablet PC
Users
Sales
60
30
50
40
20
30
10
20
10
0
0
2010
2011
2012
2013
2014
2015
Total
Tablet
PC
Users
(US)
Tablet
PC
Sales
(US)
Source: Forrester
55. Cloud
C L E A R S T O N E William Quigley
Managing Director
56. Mass Adoption of Cloud Computing is
Expected to Help the Market Grow to
$150 Billion by 2013
Cloud
Services
Market
Size
(Billions)
$160
$150
$140
$120
$114
$100
$89
$80
$71
$56
$60
$46
$40
$20
$0
2008
2009
2010
2011
2012
2013
Source: Gartner
57. Mass Adoption of Cloud Computing is
Expected to Help the Market Grow to
$150 Billion by 2013
Percentage
of
PC
Unit
Sales,
US
24%
20%
18%
17%
16%
39%
30%
46%
32%
32%
33%
34%
34%
Desktops
39%
Notebooks/laptops
12%
12%
12%
12%
44%
13%
Netbooks/minis
46%
15%
38%
38%
38%
Tablets
29%
36%
17%
15%
8%
0
0
2008
2009
2010
2011
2012
2013
2014
2015
“With Microsoft, Google, and others investing in consumer cloud
services, we anticipate a virtuous cycle of adoption of tablets
driving adoption of cloud services and vice versa.” -Forrester
Source: Forrester
58. Social
Networking &
Online Games
C L E A R S T O N E William Quigley
Managing Director
60. Social Networks and Online Games Increasingly
Dominate Internet Usage
Share
of
Time
Online:
June
2010
Social
Networks,
23%
Other,
34%
Classified/AucKon,
Online
Games,
3%
10%
MulK-‐category
E-‐mail,
8%
Entertainment,
3%
Soeware
Portals,
4%
Manufacturers,
3%
Instant
Messaging,
4%
Search,
4%
Videos/Movies,
4%
Social networks and online games grew 31% in 2010
and now account for 33% of all time online
Source: Nielsen
61. Presented By:"
William Quigley Managing Director
C L E A R S T O N E