Traditionally, venture capital has mainly been a people’s business. It’s all about knowing people. As a venture capital fund, you need to find the best founders and be able to convince them that you are the right investor for them but you also need to be able to keep your own investors happy. If you are a founder you need to reach and convince investors to invest in your startup. Moreover, many, if not all deals happen behind closed doors. As one can imagine, the venture capital industry is plagued by information asymmetry. However, the industry is now being reshaped by data. One of the biggest trends seen in the industry is the aggregation of data by database providers. Some of the biggest database providers for VC are Pitchbook and Crunchbase. In these databases, one can find anything from the contact information of startup founders to VC fund’s investment strategies and specific deals. These databases allow founders to find investors and vice versa, but also provide insight into the current dynamics of the industry. Additionally, whereas the stock exchange allows for easy price comparison of similar companies, it was nearly impossible to compare deals before the arrival of these databases. With these databases, both startup founders and VC funds are able to better gauge whether they have come to a good deal or not. While Pitchbook and Crunchbase have been around for quite some time, there are new providers popping up to give an additional edge to VC funds such as Harmonic.ai. These provide additional information by scraping the web such as increases in web traffic, growth in employees on LinkedIn, or incorporation filings. The information was always publicly available, but ease of use clearly gives VC funds the ability to reach more startups. With these databases, both startup founders and VC funds are able to better gauge whether they have come to a good deal or not. Issues within the industry However, the true potential of data within the VC industry still remains untapped. The databases provided by Pitchbook and Crunchbase only provide high-level information with a lack of detail when it comes to deal terms, fund/investment performance, or startup financials. This is of course not unexpected as there is a benefit of the information asymmetry to the VC funds, and this is not helped by the fact that the information in the databases is often self-reported. Another issue with the data is a lack of standardization in the data formats and metrics across the industry. This can be in terminology, where Cost per Acquisition can refer to the total cost incurred to acquire a new customer, but could also refer to the ad spend per click in digital marketing. Furthermore, there is no consistent usage of metrics across VC funds, with some looking at annual recurring revenue, some at monthly recurring revenue, and others that look at neither and only care about burn rate. As a result, trying to combine the data of different VC firms at a higher level of detail would lead to a lot of missing data points as well as incorrect data points. However overcoming these challenges is not going to be easy, as VC funds would have to be open about their investments and cooperate with each other. In addition, the data would need to be aggregated in a way that upholds data privacy when it comes to company-specific data, as no startup would want their private data out in public. Opportunities The biggest opportunity for data within the VC industry is the creation of predictive analytics models for early-stage startup evaluation. With these models, a better understanding would be created of the factors that drive success in startups. This could help VC funds select the best startups to invest in, and also to provide better guidance to help startups become successful. The application of these predictive models would allow for better risk mitigation in this highly risky asset class, turning VC funds into a more attractive investment opportunity. Ultimately, the integration of data-driven approaches in venture capital holds promise not only for investors but also for entrepreneurs and the broader innovation ecosystem, fostering greater opportunities for sustainable growth and value creation. Conclusion All in all, the venture capital industry is undergoing a transformation propelled by the increased availability and utilization of data. While traditional networks and relationships have long dominated the industry, the advent of databases like Pitchbook, Crunchbase, and emerging providers such as Harmonic.ai are providing access to crucial information, reshaping how deals are sourced, evaluated, and executed. However, challenges persist, from information asymmetry and lack of standardization to privacy concerns and the need for greater cooperation among VC firms. While some persist that one’s gut feeling remains unrivalled, when the venture capital community embraces data-driven approaches, it not only enhances its own efficacy but also creates a more robust startup ecosystem poised for sustainable growth and value creation in the years ahead.
Study Tour 2024: Cape Town & Dubai
Capte Town It all started this year on Monday, April 29, we gathered at Tilburg central station, where the bus picked us up around 4 o’clock in the afternoon. With 24 people we were complete and ready to go. The bus took us to Brussels Airport where the journey could really begin. In the evening at 21:45 the plane left for Cape Town! After a long trip, with a change of plane in Dubai, we finally arrived in Cape Town. On the way to the hostel, we could already admire the city in its beautiful evening glory. Once we arrived at the hostel, we checked in and had something to eat. After that, most of us wanted to go to bed right away, as the trip was very tiring after all. Our first full day in Cape Town began in the Victoria & Alfred Waterfront district. Here we had a morning of free time to explore the area, some visited the aquarium, and others went shopping. In the afternoon we wanted to go hiking on Table Mountain, unfortunately there was a fire near the route of the hike, so we had to come up with another plan. We decided to hike up Lion’s Head. This hike was tough but once at the top we had a beautiful view! On Thursday in Cape Town, we spent our day at the University of Cape Town. We were warmly welcomed and after an opening talk, we were also given some information about what studying at University of Cape Town is like. Next, we were given a tour of the entire campus, with its many beautiful buildings and large sports fields, not to mention the beautiful views. After the tour we had a delicious lunch and went back to school. Here several more speakers came by with interesting stories. In the evening there was plenty to do in the city because it was First Thursday; so there is a party in the city every first Thursday of the month. This was a great reason for us to explore the evening life in Cape Town! Friday morning, we started our day with a tour to Robben Island. After a nice boat ride, we were given a bus tour of the island. Our guide here shared many stories with us. Once we were back on the mainland, we had something to eat and went on to the Bo-Kaap district. This neighborhood is known for its beautifully colored houses. After shooting many pictures, we went back to the hostel to freshen up. In the evening, most of the group went to eat at a typical African restaurant called “Mama Africa”. Over the weekend we went on a wine tour, this of course cannot be missed when you are in Cape Town. We also went along the Cape of Good Hope, and visited Boulders Beach where we could see penguins. Of course, the nightlife was also explored further this weekend. Unique opportunity After a great weekend, we went to KPMG Cape Town on Monday morning. Here we had a tour of the office followed by a fun, interesting presentation about the economy in South Africa, as well as “fun facts” and “snack history” of South African culture. After this instructive morning, we had some free time in the afternoon, some went up Table Mountain, one by cable car and the other on foot, unfortunately it was very cloudy when we reached the top. We ended the evening with a delicious dinner. Our Tuesday morning began quietly with some free time. We scored some souvenirs and had a nice lunch. In the afternoon we visited the consulate. Here we had an interesting afternoon where we could ask many questions. In the evening, we all had a last dinner in Cape Town at a delicious tapas restaurant. Our last morning in Cape Town began quite spectacularly for some. Part of the group went skydiving, because how often do you get this opportunity? The same morning, we also visited the Diamond Shop, where we got a tour and could ask all our questions for the research. In the afternoon it was really time to leave Cape Town and we flew to Dubai around 18:00. Dubai Thursday in the early morning we arrived in Dubai, once we arrived at the hotel it was still way too early to check in, so we all went to rest at the pool on the top floor of the hotel. Just recovering after such a restless night. From 2 p.m. we could check in, and the rest of the afternoon everyone did their own thing. In the evening, we divided into smaller groups for dinner and then went to bed in time for a good night’s sleep. Friday morning began with a trip to Mars, a hearty company in the FMCG industry. Once we arrived at Mars, we were welcomed with a delicious breakfast buffet. After this, in addition to a presentation from the company itself, we also received presentations from partners including ING and Dubai Holding. It was certainly an interesting and educational morning. In the afternoon everyone had free time again, a few went out to see some more highlights of the city, but most of the group ended up at the beach, where we were also able to admire the sunset. All in all, it was another successful day. The weekend in Dubai arrived. On Saturday we had planned a visit to the Burj Khalifa, we went all the way to the 125th floor and were able to see a beautiful view here. We also took this day to visit the Dubai Mall and all the craziness that can be experienced here, including a large aquarium. Of course, we also had a chance to admire the fountain show, which takes place right next to the Mall. After an afternoon of walking and shopping, we went back to eating scattered throughout the city. Some of us ate at restaurants around and in the
Realize your ambitions under optimal conditions – Working at Bol
“When we met at the career event I thought: yes, yes, that will do. But it really is the following,” says Jasmijn Giesen (22). “Here they do everything to create the right preconditions for you.” Marijne Jurjus (23) couldn’t agree more. “Definitely! As a starter, I experience all the space I need to discover and learn. A lot is asked of you and a lot is possible.” Even part-time work or parenthood does not stand in the way of a career. Alice van Helden (32): “Good work-life flexibility allows you to shape your career path at Bol Advisors according to your own ambitions.” We sat down with three female employees in Bol Advisers’ audit department to hear what it’s like to work at Bol. Jasmijn has just been employed for six months as a junior assistant auditor. She studied business administration at the RU in Nijmegen, with a master’s degree in Economics (specialization Accounting and Control). Marijne has been working there since September 2023, also as a junior assistant accountant, and after studying Economics, she followed the same master’s degree as Jasmijn. Alice has been in the profession for eight years and is an audit manager. She has also chosen HR duties in her department and developed the buddy program. Different than a Big4 Alice: “I have been working at Bol for four years now, but started at a national office eight years ago. This experience was very valuable, even though the work-life balance there was not always optimal. As a starter, the gap between the theoretical knowledge gained and daily practice was large, so I was mostly navigating instead of really learning. At Bol, I experience a completely different approach. Here, direct communication is encouraged and there is room for asking questions. The work environment is open and collaborative, which has a positive impact on your professional development.” Being able to discover what suits you Jasmijn: “When you’ve just finished your studies, it’s hard to decide what you want. What I like here is that it’s okay that I don’t know everything yet. In fact, they facilitate my search. During the orientation at the career events, I got the feeling that many other companies expect you to already have a plan. At Bol, they work with you to find that plan.” Based on interests and talents, employees are helped to find the right path for themselves. Bol uses various means for this, including a traineeship. Marijne: “As a trainee you can look around in other departments. I work in the assurance department, but as a trainee I also visit the international practice and business controlling. This way I can discover what I find interesting and what suits me best.” “The work environment is open and collaborative, which has a positive impact on your professional development.” Learning from and with each other There is also a boot camp program, in which Jasmijn and Marijne participate. With ten starters, they meet monthly for training sessions. Sometimes person-oriented, sometimes profession-oriented. Marijne: “At the beginning we made the DISC personality analysis. We now know each other’s pitfalls and can help each other with them. Another meeting was about work pressure and time management. Helpful and fun.” They learn from and with each other. Even the term Bol family is mentioned. Alice: “We consciously choose to organize the programs department-wide, so afterwards the threshold is lower to approach each other professionally. Knowing each other leads to better and more efficient cooperation, across the various Bol branches.” Overall, Jasmijn is struck by how driven everyone is. “Colleagues dedicate themselves 100% to customers and the bar is high. That appeals to me enormously.” A personal buddy In the audit department, they also work with a buddy program. Alice: “This means that all (junior) assistants are paired with an audit leader or audit manager, who receives thorough buddy training in return. A buddy provides professional guidance and personal attention. You can choose your own buddy.” Marijne is enthusiastic about this system. “You get valuable feedback and/or professional tips. To give an example: as early as last December, my buddy warned me about the first quarter of this year. That’s also called the busy season; a busy time that can be experienced as intense as a newcomer, especially if you don’t know everything yet. But because of the tips my buddy gave me then, I didn’t experience the first months of 2024 as boring at all. In addition, my buddy is also a kind of confidant. I can discuss everything.” Shaping your own career path Bol encourages professional development and performance, but also has an eye for ‘people’. Alice: “Although accountancy is still predominantly a ‘man’s world’, I do see a growing group of women going for a career in Accountancy. Especially for mothers this can be challenging and sometimes requires a different work-life flexibility. At Bol, we look for the right conditions to combine this.” To move up, you don’t necessarily have to work full-time. You also have career opportunities at Bol on a part-time basis. And more and more men are working part-time as well. Jasmijn: “Choosing part-time does not mean that you are not ambitious. You still have the same goal, but just choose a different path.” What matters is that employees take their own responsibility within the agreed number of hours they work. Marijne: “That also means I can go home earlier on Wednesdays because of my sports course. At least, if work allows it. Friends in a similar position told me that this is not common.” Creating your own space Bol also wants to keep work interesting for non-starters. In the audit practice, they have created “free space” for that purpose. Alice: “For 80% of the time you do your ‘normal’ work. For the other 20% you can take on a different role that allows you to develop yourself in other areas. I chose HR, but that could also be data analysis, or helping to shape developments in the field of sustainability.
Interview Tomas Simons – Managing Partner Waterland Private Equity
Waterland Private Equity is a European investment company founded in 1999 that focuses on supporting growing companies. The company invests in medium-sized companies in various sectors, including healthcare, technology, media, and so on. Waterland provides not only capital, but also operational support and strategic guidance to its portfolio companies to maximize their growth potential. In this interview, we asked Tomas Simons questions about his college days, about Waterland Private Equity and some tips for students. Can you tell us who you are? I’m Tomas Simons, I studied International Business and Corporate Finance in Tilburg. I also took courses for an MPhil at CentER and in between I did an exchange to Canada and Spain. I published a few papers from my thesis. Besides that, I have been a student assistant for 20 hours a week, sometimes I helped with practical lectures, and I also did numerous sorts of data registration for research to support professors. I was also on a council with professors, which was about the curriculum. I was also a member of a student organization for which I organized a trip. After college, I started working at McKinsey. I worked there for a total of 7 years, one year of that being an MBA at INSEAD, which is not unusual to do at McKinsey. At McKinsey I worked in the Sydney office, among others, but when I came back, I thought it would be fun to work in private equity for a change. Those research studies I mentioned were all about private equity. In the early 2000s this was not a term al lot people knew, that’s different now. But that interest has always been there for me. I started at a private equity firm called H2, which were more turnarounds. Later, I started looking a little further and proceeded my career here at Waterland. I am working here for 12 years now. I am responsible for this office together with my fellow partners and in addition I am responsible for the Irish office, a couple of activities in Denmark and I am also head of ESG. Fortunately, we have very smart managers on our portfolio companies. How has your experience at McKinsey helped your current role? The great thing about strategy consultant firms in general, not just at McKinsey, is that they give you a very good problem-solving skillset. It’s a good training ground for your further professional life and, in addition, they provide you with a very good network. They also call you alumnus. I know the community very well and I can always see them and contact them easily. That’s a tremendously nice group to be a part of. So, on different levels it gives you a good preparation for business skills like for example for private equity. But to get into private equity there are several roads you could take. Investment banking is another background that you see a lot and some guys and gals do it right out of college, of course that’s also possible. What are the most important lessons you learned during your college years? I don’t think what I’m about to say makes me popular, but a lot of people think getting 6’s as grades was enough. That’s possible, that depends on your ambitions, but at McKinsey you don’t get in if you have a 6 GPA. I also understand that not everyone has the same ambitions, and it doesn’t come easily to everyone, but the idea that you had to be satisfied with a 6’s was not something I could relate to. But in the end, a study is also just a study. You learn all kinds of things there, but you will have to learn them all over again when you go to work. I remember when I got out of college I thought, “Now I know a lot,” but I realized after one day that I had to start all over again. So, I wouldn’t get too much out of it. In the end, you have to develop yourself and become a broadly rounded person with fun interests and lots of experiences along the way, because that will ultimately benefit you more. So go abroad again, go do something fun again, because before you know it, study time will be over. Above all, try to find something that binds you, bite into it develop fun things around it. How many offices do you have around the world? We are only in Europe, and there we have 11 offices. If you look within the Dutch private equity funds, the funds originally from the Netherlands, Waterland is one of the largest. This is mainly because of our strategic focus on Europe. We now have over 200 employees of which 110 are investment staff and the rest mid and back office, support. We have 14.5 billion euros under management. Last year we raised 4 billion. And just in numbers, you’re talking about 85 portfolio companies throughout Europe, of which there are about 25 in the Netherlands. A few familiar ones, for you; Loetje, Easytoys, Partou (child care), but we are mostly in B2B services. Our platforms (companies), as we call it, are mostly in Europe. Often in the countries where we have offices as well such that we are close to them. But it could be possible that those companies invest in America. Portfolio companies also have investments in the US. For example, one of the portfolio companies from Denmark, which I’m working with now train dressage horses. Actually, many Olympic dressage horses come from that company and they also have a big business in the US. How does Waterland distinguish itself from all other private equity firms? Waterland is known in the investor world for just having a very clear single focus on buy-and-build strategies. You start with a platform, in a growing market that is also fragmented. And then, in that market, you start bringing companies together in order to build, from maybe a mid-market Dutch company,
A “genius” fraud: the story of Sam Bankman-Fried
Sam Bankman-Fried’s life began promisingly. He graduated from the prestigious MIT in 2014 with a bachelor’s degree in physics to join the Center of Effective Altruism. This organization consists of the following idea: the first part of life is about making as much money as possible, and in the second is this money should be donated to good causes. Bankman-Fried promised that when he will make a lot of money, he will later donate these funds aggressively. At the Center of Effective Altruism, Bankman-Fried meets Tara Hedley, with whom he founded Alamada Research in 2017. With this hedge fund, he earns a lot of money through arbitrage in a short period with which he could eventually fund FTX. What is FTX? In 2018, the platform FTX became a reality. FTX functioned as a crypto exchange. Here it was possible to trade in the best-known cryptocurrencies (including its own token FTT), NFTs and futures. In addition, it was possible to trade with a high leverage position. The platform was already growing rapidly; for example in 2020, $385 billion in cryptocurrencies was already being traded. “Built by traders, for traders” was the motto. Thanks to its user-friendly website, many said it was the best platform to trade cryptocurrencie s. That same year, FTX acquired a majority stake in Blockfolio, an app that allows you to track the value of your crypto portfolio. It later turned out that 94 percent of this deal was paid for with FTT. Brand awareness also grew as a result of the many commercials on television and during the Super Bowl, which featured several celebrities. Bankman-Fried himself got regular publicity and was even on the front page of Forbes. This gave people more confidence in the platform. However, this trust soon came to an end. “Sam Bankman-Fried is one of the most sensational stories in the history of capitalism.” Michael Lewis The collapse While on paper Alamada Research and FTX are two different companies, in practice it turns out differently. In fact, Alamada Research’s balance sheet shows that the company owns a lot of FTT. While this is not illegal, it does show that Alamada Research relies heavily on FTX. This shows that the token is not decentralized, which is what it is supposed to be. As mentioned earlier, FTT is the token of the exchange FTX; owners of this token pay fewer transaction fees. Sam Bankman-Fried regularly signaled his confidence in FTT by often indicating via Twitter that he was buying the token at a later date. Because Alamada Research did not indicate how much FTT they had, price manipulation was possible. Sam Bankman-Fried allegedly directed Alamada to purchase large numbers of FTT when the price fell in order to prevent a further decline. The company also even used FTT as collateral when raising new loans. “I thought he was the Mark Zuckerberg of crypto, but is he now the Bernie Madoff of crypto?” Anthony Scaramucci In 2022, Alamada’s main lenders went bankrupt. To make up for this shortfall, Bankman-Fried decides to allocate customer deposits on FTX to Alamada. To make matters worse, Binance CEO Changpeng Zhao (better known as CZ) decides to liquidate all FTT on Binance. When the price of FTT falls by more than 75% in 2022, there is great cause for panic. What follows is a bank run, with customers of FTX trying to withdraw their positions from the exchange. However, these positions are not on the exchange, as it has thus used to cover deficits on Alamada. The collapse is complete on November 11th, 2022, Alamada Research and FTX are both bankrupt. A week later, Bankman-Fried indicates in an interview with CNBC that it was “not his intention to scam others” and that he would “handle some things differently now.” Sam Bankman-Fried is subsequently arrested and faces a 25-year prison sentence. In total, former FTX customers are missing more than $8.9 billion. What started as a fascinating story involving charitable donations, ends up being one of the biggest scams of all time.
The Bitcoin Halving
Disclaimer: This article is for entertainment purposes only and cannot be used for financial advice. Since its inception, Bitcoin has caught the world’s attention as a revolutionary form of digital money. It is a decentralised and distributed network that enables transactions without the intervention of central authorities such as banks or governments. One of Bitcoin’s most unique features is its ‘halving’. This halving took place on 20 April this year. This article discusses the Bitcoin halving in detail, including what it is, why it takes place, and what impact it has on the Bitcoin ecosystem. The Bitcoin halving, also known as the ‘halving’, is an event that takes place every four years, or after every 210,000 blocks added to the blockchain. It is a built-in mechanism in the Bitcoin protocol that halves the rate at which new Bitcoin is produced. In other words, the reward for mining new Bitcoins is halved. How does Bitcoin mining work? To fully understand Bitcoin halving, we first need to understand how Bitcoins are created. New Bitcoins are created through a process known as ‘mining’ or ‘mining’. This is the process by which computers solve complex mathematical puzzles to verify transactions and add new blocks to the blockchain. Miners who successfully add a block are rewarded with Bitcoins. At the beginning, these mathematical puzzles were easy to solve, but as more and more miners try to solve these puzzles, the difficulty of these puzzles has also grown exponentially. The growth of how much computer power it takes to mine a Bitcoin, which is also known as the hashrate is shown in the image below: While at the birth of Bitcoin people could still mine Bitcoins on their laptops, today this is done in large warehouses where there are thousands of gpu to solve these mathematical problems. These gpu need a lot of electricity. This is also where the criticism comes from that Bitcoin cannot be seen as sustainable. Impact of halving on supply The halving is a crucial aspect of the Bitcoin protocol because it reduces the inflation of Bitcoins and slows down the supply of new Bitcoins. This mechanism is designed to reach the total supply of 21 million Bitcoins, making it a scarce commodity. When Bitcoin was launched in 2009, the reward for mining a new block was 50 Bitcoins. Then the first halving took place, halving the reward to 25 Bitcoins. The second halving took place in 2016, again halving the reward to 12.5 Bitcoins. The third halving took place in May 2020, again halving the reward to 6.25 Bitcoins. In the halving that just took place, Bitcoin was halved again to 3.125 Bitcoins. This means that Bitcoin’s annual inflation rate has fallen from 1.7 to 0.85%. As a result, Bitcoin’s inflation rate is now also lower than gold. The Bitcoin halving has a number of important implications for both miners and investors. For miners, the halving may lead to reduced profitability as they receive less reward for their efforts. This could lead to a loss of mining business, especially for miners with high operating costs. On the other hand, the halving may increase the demand for Bitcoins, as the supply of new Bitcoins decreases. This may lead to an increase in the price of Bitcoin on the market, as historical data has shown. Investors often see the halving as a ”bullish” signal for Bitcoin’s price, and some even speculate on a ”halving rally”, with Bitcoin’s price rising sharply after the event. The Future of Bitcoin Halving Although Bitcoin halving is a built-in mechanism that has been taking place since Bitcoin’s inception, it remains a subject of debate and speculation within the community. Some believe that halving will continue to play a crucial role in Bitcoin’s monetary policy and protect its value. Others believe that future developments, such as scalability solutions and changes in the consensus mechanism, could change the role of the halving over time. Currently, about 19.7 million of the 21 million Bitcoins have been mined, representing almost 94% of the total supply. The last Bitcoin is expected to be mined in 2140. However, the fact that all Bitcoins will be mined does not mean that miners will stop maintaining the network. In fact, they also receive a small fee for every transaction they process. Impact of Bitcoin halving on price Bitcoin halving, which occurs about every four years, has historically had a significant effect on the price of Bitcoin. This event reduces by half the reward miners receive for verifying transactions and adding new blocks to the blockchain. This reduces the supply of new Bitcoins on the market, which can lead to a decrease in selling pressure from miners. In the past, halves have often led to increases in the price of Bitcoin. This is partly due to reduced supply growth, which reduces Bitcoin inflation. In addition, the prospect of scarcity can encourage investors to buy Bitcoin, which can boost demand and thus the price. After the previous halves, the price of Bitcoin rose by the following: After the 2012 halving, the price went from $12 to above $1000, an increase of almost 10000%. After the 2016 halving, the price has gone from $600 to above $19000 an increase of more than 3000%. In the past halving in 2020, the price rose from about $10000 to above $60000 an increase of about 600%. It can be seen that Bitcoin’s percentage rise keeps falling after each halving. This increase is shown in the image below: However, it is important to note that the price reaction to halves is not immediate and there are also other factors influencing the price of Bitcoin, such as market sentiment, institutional commitment, regulation and macroeconomic developments. Conclusion Bitcoin halving is an essential part of the Bitcoin ecosystem, designed to reduce inflation and protect the value of Bitcoins. By halving the rewards for miners, the halving creates a scarcity that can increase demand for Bitcoins and raise their price. While the impact of the halving
