Startup Monday: Latest tech news & VC trends in the global startup ecosystem (Issue 111- November 25)

15 min readNov 25, 2023

Welcome to Startup Monday, my weekly newsletter that recaps the week in the global startup ecosystem. To have this newsletter emailed to you, you can sign up here.

-Narine-

Top startup news to follow this week:

1. Operator- and woman-led VC NP-Hard Ventures raises its debut €12m fund to invest in early-stage startups

In Europe, funds led by former operators are few and far between. Add to that those run by women, and you’re dealing with an even tinier sliver of the VC pie.

But Anke Huiskes, who’s started two angel investing syndicates, worked at several startups and incubated another, is one of the exceptions. Along with her cofounders Micha Hernandez van Leuffen and Paul Veugen (both serial founders), she’s just closed a debut €12m fund for Netherlands-based VC NP-Hard Ventures to invest in early-stage software startups — and they all have operating chops.

Having launched the fund in early 2022, and just this week closed the fund, the trio certainly understands how tough the fundraising environment is. “It was not easy to raise this fund. Like, we didn’t do it in two months,” says Huiskes. But she says that, to their surprise, they ended up raising €2m more than their initial target.

What is NP-Hard Ventures’ strategy?

NP-Hard Ventures will invest average cheques of €250k into 20 more pre-seed startups.
It’s focused on investing in early-stage startups in Europe and the US, with about 25% of the fund allocated to US startups, Huiskes says. Another portion — 25% — will be reserved for follow-on investments.
Huiskes says she also wants to bring some of the sensibilities of the San Francisco tech scene — where she lived for seven years and where her two cofounders have also spent time — to startups in Europe. She wants to impart San Francisco’s “sense of urgency for founders. Like, a lot about the speed of shipping and being a little bit paranoid about competition — to be one step ahead.”
Huiskes is running the fund full time, while her cofounders van Leuffen and Veugen are investing part time.

What kinds of startups does NP-Hard Ventures want to invest in?

Technical founders building software companies for enterprises.
NP-Hard Ventures had its first close of about €5m in May of 2022, says Huiskes, and the firm has already made 15 investments, including Tldraw, which is creating a virtual drawing board for designing software applications; infrastructure-as-code software platform Terraform; and Emidat, which is building a platform to help building materials manufacturers reduce emissions.
But you won’t see NP-Hard Ventures going after “AI” companies — at least not in so many words: “I think every company now has like a slice of AI into it. So I don’t think it’s a separate category anymore,” she says.

2. Leo Ventures Launches 10 Million Venture Capital Fund to Finance Tech Startups

Singapore, Nov. 21, 2023 (GLOBE NEWSWIRE) — Singapore-based venture capital firm, Leo Ventures, emerges as a powerhouse in tech investments, setting the stage for a new era of innovation with a 10 Million fund. As an incubator and accelerator, Leo Ventures is committed to fostering the growth of disruptive projects dedicated to empowering and nurturing visionary entrepreneurs.

Leo Ventures emerges as a powerhouse in tech investments, setting the stage for a new era of innovation with a 10 Million fund

Led by a team of seasoned tech entrepreneurs with decades of collective technology and investing experience, Leo Ventures brings forth a wealth of knowledge and a passion for driving transformative change. Leo Ventures actively assists tech startups in both web2 and web3 across APAC, India, and Middle East regions. In web2, the fund engages with fintech, deep-tech, and ESG Tech, as well as AI and ML, and in web3, it supports projects related to DeFi, L0, L1, infrastructure, payment solutions, and web3 consumer tech projects. The team aims to provide a platform for the visionary, to accelerate their ideas, and make a lasting impact to support those at the forefront of tech & innovation.

Leo Ventures bridges the gap between ideas and reality by providing a robust support system to successful innovators and enabling access to essential resources, seasoned investors, and expert guidance. With their vision inspiring a new wave of developers and creators, the team is set to push the boundaries of what’s possible.

Addressing the fund’s vision and his strong motive, Mr. Kishor stated — “What sets us apart is not just our investments but our commitment to rewriting the playbook. We’re taking a distinct path — prioritizing visionary founders, embracing diverse tech ideas, and actively sculpting success.”

3.Saviu Ventures’ second fund reaches €12 million first close to back Francophone Africa startups

Saviu Ventures, a VC firm targeting startups in Francophone Africa, has made an initial close of €12 million for its second fund with the backing of private investors, including French and Kenyan family offices.

The VC firm aims to close the fund at between €30 million and €50 million to primarily invest in startups within Francophone Africa. It is said to be in talks with other stakeholders including institutional investors to hit the target.

Founded by Benoit Delestre and Samuel Touboul, Saviu Ventures has been active in the Francophone Africa startup ecosystem since 2018, when it began deploying its first €10 million fund.

The VC firm invests in seed stage startups, and is sector agnostic, but, with the current fund, it is keen on fintechs, health-techs and climate-techs, while slowing down on e-mobility, e-commerce and e-logistics.

“We will follow the same strategy of our first fund, where our majority of our investment will go to startups in the Francophone region, but we still keep the opportunity to invest in East, Southern and North Africa startups that are keen on expanding to Francophone Africa,” Delestre told TechCrunch.

Saviu plans to invest between €500,000 and €3 million in 15 to 20 post-revenue startups with its second fund. Delestre and Touboul said the VC firm targets “sustainable companies” and extends business development support to these businesses in addition to the financial investment. The second fund has already backed Waspito, a Cameroonian health-tech; Rubyx, a Senegalese digital lending SaaS provider; and Workpay, a HR-payroll provider.

“We are looking for sustainable businesses. We don’t want to target unicorns because we are not interested in businesses or business models that insist on burning cash. Our belief is in supporting talented entrepreneurs building sustainable businesses,” said Touboul.

4.DoorFeed raises another €7M for its platform allowing large-scale investors to hoover-up family homes

Institutional real estate investors have historically struggled to buy up tonnes of family homes (the so-called ‘Single Family rental sector’) so they can turn us all into rental slaves and lock millions to a rentier economy. A few startups are trying to ease the ‘pain’ of these rapacious harbingers of hyper capitalism.

Immo Capital, a platform for managing residential real estate portfolios, has raised $90.7 million. Bricklane is another platform for rental housing (raised £6 million out of London). And Casafari in Spain/Portugal has raised $20.5 million.

Into this market has launched DoorFeed, founded by James Kirimy, an early Uber UK employee. It has secured a new funding round of €7 million Seed extension round led by Motive Ventures (backed by Private Equity firm Apollo, owners of Yahoo! and thus TechCrunch), with participation of Stride VC and Seedcamp. The firm previously raised a €3.5 million seed led by Stride and Seedcamp in 2021, and a €1.5 million debt financing by BPI France in 2022.

In simple terms, DoorFeed provides the data platform and operations for investment funds to assemble and manage large scale portfolios of apartments and houses. It also allows them to figure out which houses have a bad energy performance, and then renovate them, possibly unlocking ESG credits from governments, it claims.

It makes money via a sourcing fee and renovation management fee, as well as an annual property and asset management fee.

Looking at the market independently, these companies are clearly onto something that would make a hedge fund manager blush.

Investment in European living assets exceeded all other real estate asset classes in the second quarter at €10.6 billion, according to JLL, and 20% of the market is buy-to-let investors.

5. 819 Capital Partners launches with a €60M asset portfolio, investing in deep-tech startups addressing societal challenges

Deventer and Amsterdam-based 819 Capital Partners, an investment firm specialising in venture capital, private equity, and corporate finance, have recently announced their launch.

The venture capital firm aims to invest in industries impacted by an aging population, sustainability, and digitalisation.

“Our mission is to drive innovation, growth, and value creation through a diverse portfolio of investments, which have a positive impact on key sectors,” says VC.

819 Capital Partners prioritises healthcare, technology, and leisure sectors, recognising their significance in improving well-being.

6. India’s Pocket FM closes in on $80 million funding after revenue tops $160 million

Audio entertainment startup Pocket FM has topped $160 million in annualized revenue runrate and is inching closer to raising over $80 million in a new funding round, three sources familiar with the matter told TechCrunch.

Lightspeed, an existing investor in Pocket FM, is in late stages of talks to lead the funding round into the Indian startup, the sources said, requesting anonymity as the matter is private. The investment giant is evaluating financing the round from both its India and U.S. arms, one of the sources said. The current deliberations value the startup at nearly $800 million, two of the sources said.

The funding deliberations follow a fast-paced revenue growth at the Indian startup, which offers serialized fiction and non-fiction content spanning genres like romance, self-help and motivation. Its current ARR is over $160 million, two of the sources said, a six-to-seven times increase over a year ago. Pocket FM had publicly set a goal of reaching an ARR of $100 million by 2023-end.

The startup’s expansion into the U.S., and offering customers a non-subscription, pay-as-you-go offering has proven especially successful, according to one of the sources.

Pocket FM — which also counts Tencent and Times Internet as backers and has raised about $93 million to date, according to venture insight platform Tracxn — operates on a freemium model, leveraging long-form episodic storytelling to give users the choice to pay only for content they prefer rather than the entire library.

This approach has allowed the startup to offer free access to episodes every 24 hours, with a fee for additional content. Since early 2022, the platform has employed a micro-transaction model, enabling users to purchase coins in local currency to redeem for episodes beyond the free quota. On average, listeners spend over 110 minutes daily on the platform, according to another person familiar with the matter.

Pocket FM and Lightspeed declined to comment Tuesday evening. Indian outlet Entrackr previously reported some of the funding details.

7. 5 Biotech Stocks Likely to Thrive as Industry Prospects Look Bright

It has been a choppy ride for the biotech industry in 2023 in an uncertain macroeconomic environment. Nevertheless, the economic scenario does look upbeat from here as interest rates aren’t expected to be increased further for the time being. Most companies in the biotech sector posted decent third-quarter results. Moreover, the outlook provided by the companies indicates bright prospects driven by new drug approvals and positive pipeline updates. With the pandemic behind us, it is regular business. Biotech companies are now looking to bolster their product portfolios and pipelines through collaborations and buyouts. Hence, M&A is back in the spotlight. Given the continuous need for innovative medical treatments, irrespective of the state of the economy, the biotech industry can be a haven despite the inherent volatility and uncertain macroeconomic environment.

Biotech companies like Gilead Sciences, Inc. GILD, CRISPR Therapeutics AG CRSP, ACADIA Pharmaceuticals Inc. ACAD, Dynavax DVAX and Ligand Pharmaceuticals Incorporated LGND are poised to outperform the volatile sector.

Industry Description

The Zacks Biomedical and Genetics industry includes biopharmaceutical and biotechnology companies that develop high-profile drugs using path-breaking technology. These biologically processed drugs, which address virology, neuroscience, metabolism and rare diseases, are manufactured using live organisms. As technology becomes paramount to improving global health, the main goal of biotech companies is to use innovative technology to create breakthrough treatments. Quite a few companies in this space are developing vaccines as well as using modern technology. Given the dynamic and evolving nature of technology, the sector is perceived to be riskier than the more stable large-cap pharma or drug industry.

4 Trends Shaping the Future of the Biotech Industry

Innovation, Execution Hold the Key: As only a few companies in this industry have approved drugs in their portfolio, the focus is primarily on the performance of high-profile drugs and pipeline development. Most companies spend millions and billions to create a drug with path-breaking technology, which results in significant research and development expenditure. Hence, it takes several years before a biotech company turns profitable. Additionally, successful commercialization is the key to higher drug uptake, as smaller biotechs generally lack the funds and expertise to reach the targeted population. This, in turn, prompts collaboration deals with either pharma or biotech bigwigs, wherein sales are shared or royalties are received. Moreover, it may take quite a few years for any newly-approved drug to contribute significantly to its company’s top line.

8. Global Agricultural Biotechnology Market Report 2023: Market to Grow by $45 Billion to 2028 — Rising Cultivation of Biotech Crops and Decreasing Availability of Agricultural Land Fueling Growth

The global agricultural biotechnology market was valued at $74.6 billion in 2022 and is expected to reach $119.6 billion by 2028

This comprehensive report provides an up-to-date assessment of the global agricultural biotechnology market, with a specific focus on its product types and end uses. It offers thorough and precise evaluations and forecasts for the worldwide agricultural biotechnology market, followed by a detailed analysis of regions, countries, and key market players.

The global agricultural biotechnology market is categorized by product type, including biotech seeds, biologicals, biotechnology tools, and others. In 2022, the biotech seeds segment claimed the largest market share in the global agricultural biotechnology market. However, the biotechnology tools segment is expected to exhibit the highest growth rate, reaching 9.6%, during the forecast period.

Regarding end use, the global agricultural biotechnology market encompasses plants, animals, and microbes. In 2022, the plants segment dominated the global agricultural biotechnology market. Nonetheless, the animals segment is projected to experience the most rapid growth, with a CAGR of 8.9% during the forecast period.

The agricultural biotechnology market is on the brink of significant expansion, driven by the escalating demand for food, the imperative for sustainable agriculture practices, and advancements in technology. Agricultural biotechnology has the potential to enhance the nutritional content of crops by developing varieties enriched with essential vitamins, minerals, and nutrients.

Agricultural biotechnology is gaining widespread acceptance across various regions due to growing awareness of its potential benefits, including increased crop yields and improved nutritional value.

The report also provides insights into key players within each regional agricultural biotechnology market. It delves into the primary drivers of the global agricultural biotechnology market, regional dynamics, and prevailing industry trends. The report concludes with an extensive focus on the vendor landscape, featuring comprehensive company profiles of major players in the market.

Report Includes

In-depth analysis of global market trends, featuring historical revenue data for 2022, estimated figures for 2023, as well as forecasts for 2028. This analysis includes projections of Compound Annual Growth Rates (CAGRs) spanning through 2028
Evaluation of the current market size and revenue growth prospects specific to research antibodies, accompanied by a comprehensive market share analysis categorized by type, end-user, and geographical region
Discussion on the factors affecting the companies’ market shares, the current strategies of agricultural biotechnology companies, the effect of research funding, and the third-party quality evaluation systems of agricultural biotechnology
Description of emerging technologies, advantages and risks associated with agricultural biotechnology and identification of market drivers, restraints and other forces impacting the global market
Evaluations of the roles that key agricultural biotechnology tools will play in the marketplace, such as next-generation DNA sequencing, biochips, RNA interference, and synthetic biology tools and genome editing tools,
Coverage of new discoveries in agricultural sciences, rapid technological developments in the industry, FDA and international regulations, details of recent regulatory reforms and insights into government initiatives and fundings
Examination of environmental, social, and corporate governance (ESG) developments, a relevant patent analysis; and merger and acquisitions (M&A), venture fundings, and emerging technologies in the global agricultural biotechnology

Detailed profiles of leading market participants, providing a descriptive overview of their respective businesses, including

Agbiome LLC
Agrisoma
Agreliant Genetics LLC
Basf Se
Bayer Ag
Certis Usa LLC
Corteva Inc.
Ceres Biotics Tech S.L.
Eurofins Scientific
Illumina Inc.

9.Pisa-based regtech Aptus.AI raises €3 million to transform compliance activities into business opportunities

Aptus.AI announced a pre-Series A of €3 million. The lead investor in the transaction is Programma 103 by VC P101 Sgr, which was also supported by some business angels and Fin+Tech, the accelerator of CDP Venture Capital, which followed this round after also participating in the previous one.

The Italian regtech transforms compliance activities from a mere obligation and cost center into a lever to generate business opportunities by changing the way large organizations and companies, starting with banks and insurance companies, access, consult, and utilize the immense volume of legal documents.

Aptus.AI serves as a compelling example of a startup that adeptly translates vision into action. Established in 2018 in Pisa by Andrea Tesei and Lorenzo De Mattei, following the development phase of their proprietary technology culminating in the Daitomic platform — a transformative tool converting legal documents into interactive, machine-readable versions — the company is poised to launch its inaugural pilot application in the latter half of 2021.

Andrea Tesei, co-founder and CEO of Aptus.AI, said: “We are very proud to count an important player like P101 among our investors and equally grateful to the Fin+Tech accelerator of CDP Venture Capital, which has been decisive in our growth, renewing and reinforcing its confidence along with other shareholders who have supported us from the beginning. We are determined to uphold the Italian flag in a sector like regtech, which is proving increasingly important and strategic internationally, enabling large organizations to develop their offerings rapidly and correctly, thus remaining competitive and benefiting end consumers and the socio-economic fabric. By combining AI for data extraction with generative AI, our solution can achieve a very high level of precision in responses even for a complex and nuanced field like the legal one, with extraordinary positive impacts.”

Aptus.AI’s application proves instrumental, not only revolutionizing the landscape of compliance management but also reshaping the perception of its potential impact on business operations. An important result on which the company builds the seed round that allows it in 2022 to consolidate the offering with a holistic solution capable of meeting the needs of the most complex financial institutions: from swift and targeted consultation of regulations, to the comparison of a law in all its evolutions, the creation of personalized and multilingual “legal inventories” for navigating specific regulatory environments, and even simulations of impacts by anticipating analyses of future regulatory trends, among other features.

Giuseppe Donvito, Partner of P101, commented: “At P101, we are excited to join forces with the Aptus.AI team. This represents P101’s first investment in the dynamic RegTech market, a rapidly expanding sector. The transaction arises from the trust we have in the team and the significant interest shown by major banking and insurance institutions in Aptus.AI’s product, thanks to the high level of Artificial Intelligence technologies developed by Andrea and Lorenzo, leveraging their studies in Computer Science and Generative AI at the University of Pisa. We are confident that the company will quickly achieve a leadership position in the compliance and risk management sector. It is an honor for us to contribute from the outset to the growth of Aptus.AI, providing our continuous support to shape the future of this innovative venture and consolidate its prominent position on the international stage.”

10. London-based fintech Crezco raises €11 million to offer SMEs on-platform bill payments using open banking

Crezco, a UK fintech company using open banking to make B2B invoice and bill payments as convenient as B2C card payments, has secured €11 million in Series A funding from MMC Ventures and fintech-focused 13books capital to enable further growth. Additionally, its recent agreement with Xero has resulted in the technology partnership being integrated into its bill payment feature which will be launched to UK small businesses at the end of the month.

Underpinned by Crezco’s account-to-account payments API, Xero will be the first major small business cloud accounting software in the UK to offer on-platform bill payments using open banking. The solution will allow small businesses to simply and securely manage, approve and pay their bills without leaving Xero’s platform. To achieve this, Crezco uses open banking, a relatively new technology leveraging account-to-account (A2A) payments.

In their new report, Xero has found that 50 per cent of UK small businesses are worried about their financial future amidst economic uncertainties. By leveraging Crezco’s technology and API, Xero’s new bill payments feature can help small businesses have a more accurate view of their cash flow.

Ralph Rogge, Founder and CEO at Crezco, said: “A2A payments allows Crezco’s partners to move the point of payment from the bank to their platform. This is not just a domestic transfer solution. We connect real-time payments everywhere and it’s one of the most obvious examples of embedded payments.”

Recently a multitude of open banking companies have sprung up, focusing on different market segments and the ability to bypass traditional payment providers’ fees. Founded in 2020, Crezco differentiates themselves by targeting B2B platforms highlighting the improved user experience. It is not about replacing card payment with something cheaper but replacing manual bank transfers with something more convenient.

While there are many payment successes in B2C e-commerce and B2C point-of-sale, B2B payments remains a larger and less addressed market. The total addressable market increases daily, with small businesses continuously moving away from the use of paper invoices, desktop spreadsheets, cash and cheques, and towards digital, cloud-based solutions.

The potential growth opportunities have been recognized by Crezco’s new investors. “The agreement between Xero and Crezco is a great opportunity for open banking to address SME payments in the UK and, over time, internationally”, commented Oliver Richards, Partner at MMC, whose fintech investments include YuLife, Copper and TreasurySpring. “It’s a transformational moment for the company and we’re excited to be backing Ralph and the team at this critical point in their growth.”