Thomas Nugel

The VC secondary market is on fire. But many LPs are rushing in without fully appreciating the risks. VenCap International plc has been active in VC secondaries (LP positions only) since 1987 — and this is one of the hottest markets we’ve seen. In the first half of 2025 we reviewed $6.5bn of secondary VC deals — a 41% jump from the $4.6bn we saw in the same period last year. This includes both GP-led and LP-led deals. Here are 4 lessons we've learned from nearly 40 years of buying secondaries: 1️⃣ Power law still rules – a few companies will drive most returns. 2️⃣ Quality over discount – our best deal was bought at a premium to NAV. 3️⃣ Know the valuation policy – different VCs can value the same company very differently. 4️⃣ Factor in manager behavior – holding winners vs. selling early can make or break returns. VC secondaries ≠ PE secondaries. The risks are different — but for LPs who can access the right deal, at the right price, the rewards can be exceptional.

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⚡ From energy vision to profitable reality. In just 8 months, Cloover (Jodok Betschart) scaled from €1M → €5M ARR (5x) — all while reaching profitability. With €1.2B in funding lines secured and hundreds of installers onboarded across 4 markets, they’re building the “Shopify of Energy.” But what’s just as striking? 🌍 Europe is fast becoming the epicenter of climate-tech. From Berlin outward, a new wave of startups is scaling faster than ever — and Cloover is one of the clearest signals. Profitable growth + massive market tailwinds = a European powerhouse in the making. 💡 For more real-time revenue updates like this, check out Specter.

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"ETH takes an equity stake in spin-offs, usually two percent." 👍 ETH Zürich now offers some of the best terms for spinoffs in Europe thanks to their new Equity and Licensing Policy. Very happy to have played a small part in this thanks to Vanessa Wood and Frank Floessel. 🇨🇭 Other European universities should take note. European deeptech would be much better off with universities creating less friction for spinoff founders, and a big way for them to create less friction is via offering healthier terms. https://lnkd.in/emdx87jp

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Auxxo Female Catalyst Fund, a German VC firm focused only on female-founded startups, has announced the first close of its second fund. including members of Encourage Ventures and VCs like Miki Yokoyama of Aurum Impact. Other key investors include the European Investment Fund, Speedinvest, Cherry Ventures, and Capnamic Ventures’ GPs. Dr. Gesa Miczaika | Bettine Schmitz | Dr. Sophie Pollok | Alena Redeker | Melanie Higgs | Fabiola Hochkirchen 🔗 Read full article link in comment #Auxxo #funding #FemaleFounders #WomenInTech #VCFunding #StartupEquity #eustartups #CatalystFund #news

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Huge milestone for the US power industry and for the team at ElectronX⚡ They’re now the first US-regulated, direct-access electricity derivatives market, with DCM and DCO approvals from the CFTC. This unlocks a new set of tools for energy asset operators and larger users to better manage short-term price volatility and risk. We believe this market infrastructure will help unlock a cleaner, more resilient grid. It’s been a privilege to partner with Sam Tegel, CFA and the team as they’ve built toward this moment. Their vision and persistence have been incredible to watch, and this is just the beginning. Congrats to everyone involved. Looking forward to what's ahead! https://lnkd.in/g85acSHq

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Margin Expansion: How Big a Driver For Value Creation? Margin expansion accounts for just 14% of private equity value creation — the smallest of the three key levers. Its impact is highly concentrated in specific deal types and situations. The PE playbook has evolved over the years. Today's private equity strategy focuses primarily on acquiring best-in-class businesses and scaling them, rather than the traditional turnaround model. Top-quartile businesses offer limited operational improvement opportunities, which explains margin expansion's smaller overall role. The real margin expansion opportunity lies with underperforming assets. The data clearly shows this. Among deals with negative EBITDA margins, 78% achieved meaningful margin expansion with a median improvement of 1,250 basis points. Public-to-private transactions show the highest margin expansion potential. Sponsors often identify inefficiencies as part of their investment thesis that they can address away from public market scrutiny and quarterly earnings pressure. Similarly, carve-out transactions also outperform other deal structures in margin improvement. By sector, Energy & Materials, Industrials, TMT, and Healthcare show the highest margin expansion, with asset-heavy sectors such as Energy and Industrials particularly benefiting from scale advantages and operational optimization opportunities.

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