Technology Investment Benefits

Why we’re investing in travel tech in Africa Tourism in Africa is booming. Kenya welcomed 2.4 million visitors last year. Morocco hit 17 million. Egypt set records at more than 15 million. Botswana’s tourism sector now supports over 50,000 jobs. But the way we book, pay for, and discover travel experiences hasn’t caught up. Old-school travel agencies and fragmented local systems still dominate, leaving huge gaps in digital infrastructure, payments, and personalisation. We've already seen success with our investments in the space: We were the first cheque into Triply.co (now backed by Y Combinator, 4DX Ventures). Triply see travel tech as more than tourism; they see it as infrastructure, connecting small businesses to global demand, driving inclusion, and showcasing Africa’s best to the world. We were the first money into Local Knowledge (acquired by Neighbourgood), who were acquired soon after by Neighbourgood - proof that there’s growing appetite for innovation in this space. In terms of how our thesis has evolved, currently we’re especially excited about startups working on: B2B tools helping local hotels, tour operators and agents digitise and manage inventory. Payment and fintech layers that make travel bookings seamless across currencies. Experience marketplaces built for African travellers as much as for inbound tourism. Platforms leveraging AI to improve customer experience, lower overheads and improve profitability in the value chain. Data and recommendation engines that personalise trips using real local context. If you’re building tools that modernise travel in Africa - let’s talk. Baobab Network could be your first investor.

Just wrapped up my visit to Phocuswright Europe. A couple quick takeaways: 1. AI was (unsurprisingly) everywhere. Tons of speculation on the future of travel planning & booking, but honestly, no one knows what's coming, just that big changes are ahead. The most interesting / contrarian take I heard came from Mauricio Prieto during his talk with Chris Hemmeter -> Do travelers really want a fully frictionless, zero-click booking experience via agentic systems? Maybe some friction is actually beneficial, creating more trust in expensive, emotionally charged booking decisions. 2. No doubt, the generational shift favors AI. Lufthansa’s Olaf Backofen shared insights into customer preferences on Lufthansa’s different booking channels. Gen-Z travelers are significantly more open to booking flights via conversational AI interfaces (over half prefer it compared to traditional booking flows). Btw, exactly the other way around for older generations. 3. OAG’s Filip Filipov was my favorite panelist/speaker. Bold, no-BS clarity on the primary challenge for AI in travel, particularly aviation as a zero-defect industry: trusted data. Without accurate, high-quality inputs, meaningful innovation stalls. Currently, poor data quality slows AI adoption and rollout in aviation, especially on the ops side. 4. Tours & Activities is travel’s final offline frontier, with only 30% of online penetration. Many incumbents, particularly airlines and hotels, still struggle to accept the obvious: travelers value destination experiences far more than flights or hotel rooms (which are a means to an end, for flights even more so than for accommodation). 5. Hotels vs. Short-Term Rentals is a fake rivalry story. Data clearly shows both segments growing steadily, indicating they’re complementary rather than competing. HomeToGo’s Bodo Thielmann and Airbnb’s Emmanuel Marill agreed. Yet, convergence is happening: STRs are becoming more serviced, and hotels are shifting towards boutique models, definitely blurring traditional distinctions. 6. Finally, my favorite panel discussed the investor perspective on AI's future in travel. Mike Coletta presented funding data for AI travel startups, showing a pretty harsh slowdown in 2025. Christoph Schuh from Lakestar with a helpful explanation -> B2C travel startups face major funding challenges due to uncertainties about how AI will disrupt traditional booking channels and platforms/marketplaces. The B2B sector is much more promising, but investments primarily go into industry-agnostic AI startups (think dynamic pricing, which is relevant for retail just as much as travel) rather than travel-specific players, suggesting the slowdown in pure AI-focused travel startups doesn't mean less innovation in B2B travel; in fact, likely the opposite. Besides all insights and inspiration, the best part was meeting so many "familiar" faces in person, especially the Phocuswright / PhocusWire crew. Great event Linda Fox, Mitra Sorrells, Morgan Hines!

Two-thirds of the Pentagon's science and tech budget is going to AI and space. It’s an $11 billion signal of where we’re headed: The US defense sector is facing a critical capability gap in space. Traditional space systems are: • Too slow to respond to threats • Overwhelmed by data • Expensive to operate manually This gap is creating unprecedented urgency - and opportunity. The Pentagon is throwing serious money at it: • $4.9B for AI and autonomy • $4.3B for space technology • $1.9B for integrated sensing That's 65% of its entire Science and Technology budget for 2025. But here's what's really interesting: The Pentagon is shifting money AWAY from basic research (-3.4% from 2024) and toward getting technologies into the field NOW. Translation: They need solutions today, not tomorrow. 3 emerging opportunities for founders and investors: Smart Satellites & Operations • Satellites that operate themselves without human control • Satellites that filter & send back important information only • Missions that automatically adjust to save fuel and time Advanced Detection Systems • Satellites that spot potential threats from space • Systems that analyze dangers in real-time • Networks of Earth-monitoring satellites working together Fast Response Space Tech • Hardware ready to launch on short notice • Systems that can be quickly modified • Space tech that can rapidly adapt to new situations At Cape Fear Ventures, we're already capitalizing on this shift. Smart money follows Pentagon signals - this one's worth $11 billion. If you're building or investing in space-AI technology, let's connect. This transformation is happening faster than most realize. P.S: Enjoy this? Join high-growth founders and seasoned investors on my newsletter: https://lnkd.in/e6tjqP7y ____________________________ And follow me Richard for more insights on space tech opportunities, or DM me to discuss specific investment strategies.

📘 Goodbye Globalization — a few takeaways that stuck with me: I used the Easter break to read Elisabeth Braw’s Goodbye Globalization — a sharp, sober reflection on how the rules of global business are being rewritten, quietly but fundamentally, as everything we knew over the past 30 years since the post–Cold War era is being re-evaluated. In short, globalisation meant trade and national security operated in separate lanes; even when geopolitical tensions rose, governments were careful not to disrupt the flow of commerce. Companies spent decades building ultra-efficient global supply chains, and for a while, it worked — manufacturing boomed, goods flowed freely, and consumers enjoyed low prices. That era is now over. From COVID-19 to Russia’s war in Ukraine to the US–China tariff wars, recent shocks revealed just how fragile our interconnected systems are. After decades of economic integration, a new world order is taking shape. So what does it mean for #climatetech companies? 1️⃣ 𝐃𝐞𝐜𝐚𝐫𝐛𝐨𝐧𝐢𝐬𝐚𝐭𝐢𝐨𝐧 𝐁𝐲 𝐃𝐞𝐬𝐢𝐠𝐧 – Energy security is national security. The push for energy independence — often more than climate concern — is now the primary driver of the renewables transition. Cost-competitive, decentralised, and less geopolitically risky, clean energy is becoming a strategic asset. Just look at China: its electrification push isn’t driven by decarbonisation, but by the race for global competitiveness. 2️⃣ 𝐑𝐞-𝐢𝐧𝐝𝐮𝐬𝐭𝐫𝐢𝐚𝐥𝐢𝐬𝐚𝐭𝐢𝐨𝐧 𝐓𝐡𝐫𝐨𝐮𝐠𝐡 𝐓𝐞𝐜𝐡𝐧𝐨𝐥𝐨𝐠𝐲 – As global supply chains fragment, local production is becoming the answer. “Friendshoring” and “regionalisation” are the new buzzwords. Bringing manufacturing “home” — while staying economically viable — now relies on technology like AI, robotics, and localised supply chains (think raw materials and minerals). Climate tech companies have a real opportunity to build “resilient by default” industrial models that don’t depend on low-cost overseas labour, but on smart, scalable systems closer to their markets. 3️⃣ 𝐅𝐫𝐨𝐦 𝐆𝐫𝐞𝐞𝐧 𝐏𝐫𝐞𝐦𝐢𝐮𝐦 𝐭𝐨 𝐆𝐫𝐞𝐞𝐧 𝐀𝐝𝐯𝐚𝐧𝐭𝐚𝐠𝐞 – Being green isn’t just about values anymore — it’s becoming a competitive edge. Today, clean technologies unlock government incentives, help avoid trade barriers, and align with new industrial policies. The climate tech winners won’t just be the cleanest — they’ll be the most strategically aligned with Globalisation 2.0. At Extantia, we’re backing the climate tech founders who see this shift not as a headwind — but as the biggest tailwind of the decade!! #venturecapital #GoodbyeGlobalization

Today at #AdoptAI, I thought back to the moment when artificial intelligence truly clicked for me. It didn’t come from a strategic report or a board discussion. It came from my teenage daughter. One evening, I caught her using Le Chat (France’s homegrown ChatGPT) while doing her homework. My first reaction was the one you would expect: a bit of parental panic of course. But then, I looked closer. She was not using it to cheat. She had uploaded her notes and was asking the AI to quiz her, acting as a study partner with infinite patience. That moment changed my perspective completely. I realized #AI really is about putting us back in control of our own progress, rather than merely replacing human intelligence. It is not a magic wand, but rather a very powerful catalyst to accelerate innovation and human expertise. At the same time, this experience reminded me of the importance of developing AI responsibly and ethically, and of carefully choosing when and how to use it. So, since we are on a quest to massively accelerate #EcologicalTransformation that delivers for our clients, I see AI as the means to multiply Veolia’s impact tenfold. How? We are already partnering with the world’s largest data center operators over 100 sites worldwide to transform these energy-intensive giants into agents of territorial circularity. ➡️ Instead of wasting the massive heat generated by computing power, we can capture it to warm nearby schools, hospitals, and homes, leading to +20% of energy reuse. ➡️ Instead of draining local water supplies, AI-enabled treatment systems can recycle cooling water, reducing the water footprint by up to 75%. ➡️ And instead of letting strategic metals go to waste, we can massively recycle them, getting up to 95% circularity. So yes, the AI boom will undeniably put tremendous stress on our natural resources. But yes, we have the tools to use AI itself to massively optimize the resource intensiveness, not only of data centers, but of all industrial activities. This is how we reconcile the digital and environmental transitions. By 2030, our obsession is zero waste, tracking every drop of water and every kilowatt in real time. At the end of the day, we will know that AI can succeed if we achieve a transition where its environmental benefits exceed the costs. I am fully confident that we can make it happen at Veolia, because we already are for many projects. Thank you to Adopt AI and Samantha Simmonds of the BBC for the opportunity to discuss this all-important topic. The future starts now!  

The Gulf crisis just created the biggest startup opportunity in a decade. Five things Silicon Valley leaders need to understand right now: 𝗗𝗮𝘁𝗮 𝗰𝗲𝗻𝘁𝗲𝗿𝘀 𝗮𝗿𝗲 𝗻𝗼𝘄 𝗺𝗶𝗹𝗶𝘁𝗮𝗿𝘆 𝘁𝗮𝗿𝗴𝗲𝘁𝘀. Iranian drones hit three AWS facilities. The Strait of Hormuz and Red Sea both data chokepoints are closed. The security frameworks behind the Gulf’s AI partnerships were built for chip export control, not for protecting buildings during a war. 𝗧𝗵𝗲 𝗱𝗲𝗳𝗲𝗻𝘀𝗲-𝘁𝗲𝗰𝗵 𝘁𝗵𝗲𝘀𝗶𝘀 𝗶𝘀 𝗮𝗰𝗰𝗲𝗹𝗲𝗿𝗮𝘁𝗶𝗻𝗴. The Pentagon set a $13.4B AI budget for FY2026 which is the largest in U.S. defense history. $130B+ in VC has flowed into defense-tech startups since 2021. → Palantir’s Maven system ran intelligence across five combatant commands → Anduril ($30.5B valuation) — Lattice OS selected as the Army’s fire control platform, Arsenal-1 factory producing autonomous systems at scale, OpenAI partnership for counter-drone AI → Shield AI ($5.3B) — Hivemind autonomous piloting completed AI vs. manned F-16 combat maneuvers → Epirus ($1.5B) — directed-energy counter-drone systems integrated with Anduril’s Lattice, directly relevant to Gulf drone defense → Saronic ($1.5B) — autonomous naval vessels applicable to Strait of Hormuz patrol → Hermeus ($1B+) — hypersonic aircraft for ISR and rapid strike → Ares Industries — Y Combinator’s first weapons company, building low-cost anti-ship missiles → Ursa Major ($2.5B) — rocket propulsion for supply chain independence Early-stage investors in this space are looking at generational returns. 𝗧𝗵𝗲 𝗿𝗲𝘀𝗶𝗹𝗶𝗲𝗻𝗰𝗲 𝘀𝘁𝗮𝗿𝘁𝘂𝗽 𝘄𝗮𝘃𝗲 𝗶𝘀 𝗵𝗲𝗿𝗲. Every hyperscaler is now rethinking geographic risk. That creates massive demand for: → Sovereign cloud infrastructure (hardened, government-grade, physically defensible) → Multi-region failover and edge computing platforms → Satellite backup connectivity (Aetherflux, Astranis) → Underground and modular data center designs → Cybersecurity for critical infrastructure against nation-state actors → Alternative compute capacity for displaced AI workloads (CoreWeave, Vultr) Startups solving resilience at the infrastructure layer will command premium pricing from both governments and hyperscalers. This is the next $100B+ category. 𝗚𝘂𝗹𝗳 𝗰𝗮𝗽𝗶𝘁𝗮𝗹 𝗶𝘀 𝗽𝗮𝘂𝘀𝗶𝗻𝗴 𝗯𝘂𝘁 𝗻𝗼𝘁 𝗱𝗶𝘀𝗮𝗽𝗽𝗲𝗮𝗿𝗶𝗻𝗴. Sovereign wealth funds holding $2T+ in U.S. assets are reviewing commitments. The Stargate UAE mega-campus, Amazon’s $5.3B Saudi cloud all in limbo. But post-conflict, these governments will double down on tech diversification away from oil. Startups that maintain Gulf relationships now while diversifying their own risk will be first in line when capital flows resume. The Gulf’s structural advantages with sovereign capital, energy, ambition haven’t disappeared. But the risk has permanently shifted. Rapid de-risking without full retreat.

It’s increasingly clear that bold climate action is the smartest business choice. Climate impacts are already hitting every part of supply chains, from sources of materials, to how products are transported and where they are sold. Companies risk seeing 7% carved off corporate earnings annually by 2035 due to climate impacts.   But there’s also good news – the global clean energy transition is booming, set to hit US$2 trillion this year alone, even if we need to see its huge benefits shared far more widely.   Setting ambitious goals to decarbonize and achieving them, and investing in adaptation and resilience, makes total business sense.   According to a recent report by the World Economic Forum: 👉 Industries can reduce 10-60% of their emissions at no or limited additional cost. 👉 Companies can expect up to $19 in benefits for every $1 invested in adaptation and resilience.   Climate-proofing is no longer optional for businesses. It is a necessity. And a massive opportunity too good to miss.

🎮 A guy with a scarf Deep Dive: EA goes private at $55B — what it really means EA has agreed to a $55B take-private led by Saudi Arabia’s PIF with Silver Lake and Affinity Partners. Headline facts: $210/share (~25% premium), ~$36B equity + ~$20B debt, delisting planned, Andrew Wilson stays CEO, target close Q1 FY27 pending approvals. Why this matters: not a hype bet on gaming “exploding,” but a strategic move for control of durable IP, steady live-ops cash flows, and cultural reach. Inside the article: ➡️ The deal, cleanly stated (numbers, structure, timeline) ➡️ Why these buyers, why now (PIF, Silver Lake, Affinity — different motives, one outcome) ➡️ Where EA fits in Saudi’s games portfolio (control assets, stakes, esports, mobile) ➡️ Market reality check (big market, steady growth, not a rocket ship) ➡️ MENA demand (young, mobile-first, esports-centric) ➡️ What may change at EA — and what won’t (leadership, autonomy, optional synergies) ➡️ Risks to watch (CFIUS, leverage, talent, reputation) ➡️ My take (diversification > disruption) ➡️ What to watch next (product cadence, approvals, debt discipline) 🎮 Appendix A: LBO explained in plain English 🎮 Appendix B: Vision 2030 & Saudi gaming strategy 🎮 Appendix C: The three buyers — who they are and what that implies 🎮 Appendix D: Andrew Wilson — the steady hand at EA 🎮 Appendix E: EA’s flagship franchises — where the cash flow lives 🎮 Speculative: DAZN × EA and the path to vertical sports entertainment Read the full article below and on substack! EA SPORTS Public Investment Fund (PIF) Silver Lake #gaming #esports #saudi #investing

😮 Private money is coming for gaming - and why we all should be worried. EA at $50B valuation: Private equity just called the top on annualized gaming IP. It’s about predictable cash flow. Here is the background: 💡 Console is back in the driver’s seat. After years of supply shortages, consoles are again the industry’s growth engine - powered by subscriptions, evergreen franchises, and a rebound in blockbuster launches (transmedia). 💡 Mobile has cooled. Growth is flat, acquisition costs are up. The story is no longer “mobile eats the world.” 💡 Live services drive margins. The flashy cinematic trailer still wins headlines, but the profits are in 365-day economies: Ultimate Team, battle passes, cosmetic skins. That’s why a consortium led by Silver Lake, Public Investment Fund (Saudi Arabia’s sovereign wealth fund), and Affinity Partners is lining up a $50B take-private of Electronic Arts. Potentially the largest leveraged buyout in media history. What could break the thesis: 🔻 Regulatory optics. Antitrust is quiet. But CFIUS will scrutinize PIF’s role on governance and data flows. 🔻 Franchise risk. If Battlefield underperforms or Ultimate Team flattens, the LBO math might not work out. 🔻 Platform tax. If storefronts don’t budge and marketing CAC keeps climbing, the new owners may have to cut deeper than fans or devs enjoy. We’ve seen three distinct eras of gaming M&A: 1️⃣ Platform land-grabs. Microsoft’s $68.7B Activision Blizzard deal wasn’t about spreadsheets but owning Call of Duty to fuel Game Pass. That was empire-building. 2️⃣ Mobile scale. Take-Two buying Zynga ($12.7B) was a pivot to where growth used to be, mobile installs, ads, and whales. 3️⃣ Sovereign-backed cash cows. Saudi Arabia’s Public Investment Fund (PIF) spent billions (Scopely $4.9B, then Niantic’s games $3.5B) to lock up steady cash-flowing assets and diversify its oil wealth into gaming IP. Now comes a fourth era: 4️⃣ Private equity–driven laveraged buyouts: using heavy debt financing to squeeze maximum compounding out of stable franchises. That’s the real story with EA. It’s not about changing the industry map (like Microsoft). It’s not about chasing new platforms (like Zynga). It’s about proving that annualized sports IP behaves like a utility: dependable, cash-generating, and predictable enough to carry $20B+ in debt. 🤔 What is your take, are those news net positive for the gaming industry or a new area where private equity swoops in to squeeze the last profit out of gaming? Please let me know in the comments

On May 22, 2025, Microsoft signed a deal to purchase over 600,000 tons of #lowcarbon cement from Sublime Systems ; cement produced without fossil fuels, using an innovative electrochemical process. Just a few days later, on May 28, Google expanded its partnership with Arable an agtech startup helping U.S. farmers save 2 billion liters of #water using smart irrigation technology. These aren’t CSR headlines. They’re clear signals that environmental goals and financial sustainability are not in conflict. This is happening in the US even with the strong stance on #sustainability. When driven strategically, sustainability is both a climate solution and a long-term value play. But what’s even more powerful is the catalytic effect of such moves: 1- Microsoft’s purchase enables Sublime Systems to scale its technology faster and cheaper. 2- Google’s validation helps Arable prove its model and unlock broader adoption. When industry giants act as early adopters, they don’t just decarbonize they create entire markets! This is exactly the kind of thinking that can supercharge the #startupecosystem in the #GCC. With ambitious sustainability agendas, national champions in the region can turn their assets into real world #testbeds, validating technologies, shortening the path to commercialization, and nurturing homegrown solutions. We often speak of ecosystems. But ecosystems thrive not in isolation, but through interdependence between the boldness of big players and the brilliance of small innovators. #Sustainability #Innovation #ClimateTech #CircularEconomy #GCC #Startups #GreenGrowth #WaterManagement #GreenConstruction #CenterForSustainableFuture Elias Aad Dragos Fundulea