Fintech PR
Venture investors conflicted over rising valuations of emerging technology startups
PitchBook, the premier data provider for private and public equity markets, today released the findings from a new survey conducted in partnership with Web Summit, the world’s largest technology event according to the Financial Times. The survey, PitchBook-Web Summit Venture Investor Survey, examines venture capital (VC) investment preferences in emerging technologies like AI, mobility, fintech, blockchain and more, alongside investor sentiment of the current economic climate. According to the findings, VCs are most bullish on AI/ML but have concerns over rising valuations and the rate at which unprofitable technology companies have entered the public markets.
The survey was administered to 264 VC investors at Web Summit and Venture, an invite-only event at the conference gathering leaders from funds like Seedcamp, Blackstone, Union Square Ventures, Lightspeed Venture Partners, Earlybird and more.
“It’s not necessarily surprising VC investors responding to our survey are still prioritizing growth over profitability, given the very nature of venture capital; however, their view that rising valuations are overall negative for the venture industry is a noteworthy shift,” said Steve Bendt, VP of Marketing at PitchBook. “High levels of capital availability and a preference for larger deals across all stages has helped fuel rapid growth and rising valuations. And according to PitchBook data, larger deals and valuations are likely to persist, meaning we have yet to see the full impact of the growth over profitability trend.”
“It’s interesting to see that even with the current questions regarding non-profitable startups, investors are still set on growth as the most important measure. Without any major market correction between private market valuations and public ones, it will continue to drive up the price they’re going to have to pay to invest in early-stage startup,” said Paddy Cosgrave, CEO and founder of Web Summit.
To download this data graphic to learn more about the key findings below, click here.
Opportunity
Venture investment in technology sectors has consistently increased over the last 10 years, making up nearly 40% of total VC investment so far in 2019. Nearly 70% of survey respondents agree investment will continue growing as there is an overabundance of quality investment targets within these sectors. Of the emerging technology sectors attracting venture investment, AI/ML (28%), healthtech (16%) and fintech (13%) were identified by respondents as the categories with the greatest disruption potential over the next five to 10 years. When evaluating investment opportunities in these sectors, almost one third (31%) of respondents cited executive team pedigree as the most important criterion, followed by business model (27%) and disruption potential (23%).
Profitability
Interestingly, only 19% of respondents cited path to profitability as a criterion when evaluating investment opportunities in emerging technology sectors. In fact, 72% strongly agreed or agreed that growth must come before profit for VC-backed emerging technology companies. At the same time, 86% of respondents were very concerned or somewhat concerned about the rate at which unprofitable technology firms have been going public – an outcome of the current environment of easy fundraising to offset high cash burn. According to PitchBook data, nearly 90% of VC-backed IPOs in 2019 were unprofitable at the time of IPO.
Threats
The looming global recession was top of mind for VC investors, with more than half (61%) preparing their fund for a global downturn. However, more broadly, rising valuations were cited as the greatest threat facing the VC-backed emerging technology industry (53%), followed by geopolitical events and regulatory challenges (34%) and competition from corporates and PE investors (13%). Over 86% of respondents agree or strongly agree that growing deals sizes and valuations, especially of emerging technology companies, are negative overall for the venture industry. So far in 2019, median early-stage valuation step-ups have reached 2.14x – a decade high. Download the data graphic here.
SOURCE PitchBook
GENEVA, Nov. 4, 2024 /PRNewswire/ — Swiss private banking group CBH Compagnie Bancaire Helvétique announces the appointment of Enid Yip as the new CEO of its subsidiary CBH Asia. Mrs Yip will also lead the Asia Regional Committee. Based in Hong Kong, CBH Asia is a key part of the Group’s strategic commitment to expand its presence in the region.
Concurrently, Patrick Wong, who has overseen the Asia business since 2017, has been appointed Deputy Chief Executive Officer. Mr Wong will continue to manage Operations, Regulatory and Compliance, and IT, while Mrs Yip will focus on enhancing the firm’s client offering and driving business development in line with the Group’s long-term strategy for Asia. With its entrepreneurial approach and exclusive and bespoke investment offering, CBH Asia offers compelling advantages to clients and relationship managers in the region.
A seasoned executive, Mrs Yip brings over 25 years of experience in successfully growing wealth management institutions in Asia. Most recently she was with LGT. Prior to that, she was a Member of the Board at Bank J. Safra Sarasin, having previously served as their Chief Executive Officer, Asia, overseeing the bank’s expansion in the region. Earlier in her career, Mrs Yip held various senior positions in the private banking industry.
Simon Benhamou, CBH Bank Chief Executive Officer said: “We are delighted to welcome someone of Enid’s calibre to lead CBH Asia. Her extensive experience and strong leadership will be instrumental in furthering our growth in key Asian markets. Our people are our greatest asset and with Enid’s strong commitment to our core values of entrepreneurship and teamwork, we are confident that she will further strengthen CBH Asia’s success. We extend our best wishes to Enid on her appointment.”
Mrs Yip said: “I am delighted to be joining a Group that fosters an environment where we can achieve great results by pursuing excellence with creativity. I am determined to expand CBH’s footprint in the region, building on our established expertise and maintaining our long-term vision of adding value for both clients and stakeholders.”
About CBH | Compagnie Bancaire Helvétique
CBH Compagnie Bancaire Helvétique is a family-owned Swiss banking group founded in 1975. Headquartered in Geneva, the Group currently counts close to 309 professionals in 10 locations around the world. As of December 31st, 2023 client assets totaled CHF 14.3 billion and the Group’s Tier 1 ratio was 43%, placing it among the best capitalized banks in Switzerland compared to its peers.
CBH Group provides wealth management services to private and institutional clients, as well as several complementary business lines, including family office solutions, asset services & structuring, exclusive private markets expertise, and bespoke daily banking and card solutions.
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The November editions of FinTech Magazine & InsurTech Digital includes interviews with leading experts and executives from
LONDON, Nov. 4, 2024 /PRNewswire/ — BizClik, the UK’s fastest-growing publishing company, has released the latest editions of FinTech Magazine and InsurTech Digital These publications are highly regarded by voices within the Financial Sector for their in-depth reports and interviews with prominent figures in the industry.
FinTech Magazine
This month’s edition features an exclusive lead interview with Lloyds Banking Group CIO, Amit Thawani as it undertakes a huge transformation to meet its 27 million customers evolving needs.
“At Lloyds Banking Group it’s all about people. Our people can make a real difference to the UK population who are not prepared for their tomorrow “
The edition also contains extensive interviews with key thought leaders from Coupa, TerraPay and more. Plus the Top 10: Largest Firms involved in Financial Services,
You can visit FinTech Magazine for daily news and analysis of the ever-changing financial industry.
InsurTech Digital
This month’s edition features an exclusive lead interview with Qover CEO Quentin Colmant on how AI will ‘reshape how we create value’
“Each decision has felt monumental, with no guaranteed outcomes, but this unpredictability has been incredibly rewarding”
The edition also contains extensive interviews with key thought leaders from Lloyds Banking Group, Kin Insurance and more. Plus the Top 10: Insurance Products of 2024
You can visit InsurTech Digital for daily news and analysis of the ever-changing financial industry.
About BizClik
BizClik is one of the fastest-growing digital media companies in the UK, host to a growing portfolio of industry-leading global brands and communities.
BizClik’s expanding portfolio includes Technology, AI, FinTech, InsurTech, Supply Chain, Procurement, Energy, Mining, Manufacturing, Healthcare, Mobile, Data Centre, Cyber, and Sustainability.
For more information, please visit our website.
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PARIS, Nov. 4, 2024 /PRNewswire/ — Dechert has advised Poxel (Euronext: POXEL), a clinical-stage biopharmaceutical company, on its non-dilutive financing agreement with OrbiMed for US$50 million. This transaction monetizes a portion of Poxel’s future royalties and sales-based payments from TWYMEEG® sales by Sumitomo Pharma in Japan.
The financing is set to bolster Poxel’s strategic initiatives in rare diseases, reduce its debt and support general corporate purposes. The deal underscores the significant value of TWYMEEG® in Japan and strengthens Poxel’s financial position.
Poxel is listed on Euronext Paris, developing innovative treatments for chronic serious diseases with metabolic pathophysiology, including non-alcoholic steatohepatitis (NASH) and rare metabolic disorders. OrbiMed is a leading healthcare investment firm dedicated to accelerating innovation in the biopharmaceutical industry.
The Dechert team that advised Poxel includes corporate and securities partners Patrick Lyons and David Rosenthal; global finance partner Privat Vigand; intellectual property partner Olivia Bernardeau-Paupe; global finance partner Sarah Milam; tax partner Sabina Comis; and associates Etienne Bimbeau, Pierre-Emmanuel Floc’h, Chloe Lebret, Julie Lecomte, Vianney Toulouse and Yasmin Yavari.
About Dechert
Dechert is a global law firm that advises asset managers, financial institutions and corporations on issues critical to managing their business and their capital – from high-stakes litigation to complex transactions and regulatory matters. We answer questions that seem unsolvable, develop deal structures that are new to the market and protect clients’ rights in extreme situations. Our nearly 1,000 lawyers across 20 offices globally focus on the financial services, private equity, private credit, real estate, life sciences and technology sectors.
View original content:https://www.prnewswire.co.uk/news-releases/dechert-advises-poxel-on-us50-million-non-dilutive-financing-agreement-with-orbimed-302295559.html
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