Sramana Mitra: What differences are you seeing in the trends in Europe versus America?
Alain le Loux: For follow-on rounds in the US, the money is easier than in Europe. In Europe, only less than 10% of Series A investments raise a B round. That’s a pity.
It looks like there is more money available in the US for follow-on rounds. You see a lot of unicorns in the US as well because there is a lot of money available.
>>>Rahul Chandra, Managing Director at Unitary Helion Ventures, provides an excellent overview of the opportunity around India’s next 400 million consumers.
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Sramana Mitra: We actually work only with IT and IT-enabled companies. We don’t do energy. We don’t do biotech. We don’t do cleantech. Where we overlap is in the robotics area mostly.
If you have stuff going on in healthcare IT or bioinformatics, that would be of interest to us. It sounds like robotics is the most interesting area for us to explore in this conversation.
>>>Doug Atkin, Managing Partner at Communitas Capital Partners, has extensive experience in FinTech and this conversation explores the nuances of that sector.
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Responding to a popular request, we are now sharing transcripts of our investor podcast interviews in this new series. The following interview with Alain le Loux was recorded on July 2019.
Alain le Loux is General Partner at Cottonwood Technology Fund. The firm invests in hardcore technology startups in Northern Europe and the Southwest of the United States.
>>>Sramana Mitra: What about other countries in Southern Europe? What else are you tracking and where do you see activities that are interesting?
Luis Gutierrez Roy: We just made an investment in a company that was actually started in the US but eventually moved to Bulgaria. The founding team was in the US. When they finished the program, they decided to move back to Bulgaria where their product and development team is based.
>>>Sramana Mitra: In the history of venture capital, the traditional venture capital model has been that in your portfolio of ten companies, nine will fail and one is a homerun. That’s how you make your money.
Therefore, you are trying to find ten companies that you can somehow believe can be unicorns. Of course, nine out of ten are not going to succeed in doing that, but one will. That’s how you make your money. Today there are so many small funds like yourself.
>>>Responding to a popular request, we are now sharing transcripts of our investor podcast interviews in this new series. The following interview with Luis Gutierrez Roy was recorded in July 2019.
Luis Gutierrez Roy, Managing General Partner of Telegraph Hill Capital, discusses his firms’ investment thesis. The fund provides Spanish limited partners access to investment opportunities in the US and Europe.
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