This session examined the venture capital landscape and how it has changed due to the pandemic. What is the future outlook for venture investing in the US and globally?
Click here to view Magnus’ presentation slides[vc_quotes layout=”accordion” quotes=”%5B%7B%22name%22%3A%22Todd%20Cohen%22%2C%22job_role%22%3A%22Director%2C%20investment%20office%2C%20New%20York%20Presbyterian%20Hospital%20(United%20States)%22%2C%22content%22%3A%22Todd%20Cohen%20is%20a%20Director%20of%20Investments%20at%20NewYork-Presbyterian%E2%80%99s%20Office%20of%20Investments.%20%20Todd%20joined%20NewYork-Presbyterian%20in%202016%20and%20has%20primarily%20focused%20on%20the%20investment%20offices%E2%80%99%20private%20investments%2C%20including%20venture%20capital%20and%20direct%20strategic%20investing.%20%20Prior%20to%20joining%20the%20Hospital%2C%20Todd%20was%20a%20Senior%20Policy%20Advisor%20at%20the%20U.S.%20Department%20of%20Treasury%20(%E2%80%9CTreasury%E2%80%9D)%2C%20working%20for%20the%20Financial%20Stability%20Oversight%20Council%20(%E2%80%9CFSOC%E2%80%9D)%20to%20advise%20the%20Treasury%20Secretary%20and%20other%20financial%20regulatory%20leaders%20on%20financial%20policy%20reform%20initiatives.%20%20At%20FSOC%2C%20Todd%20led%20the%20review%20of%20nonbank%20financial%20institutions%20as%20systemically%20important%2C%20including%20GE%20Capital.%20%20Prior%20to%20Treasury%2C%20Todd%20was%20a%20Vice%20President%20in%20the%20capital%20markets%20and%20derivatives%20groups%20at%20Bank%20of%20America%20in%20New%20York%20and%20Tokyo.%20%20Todd%2C%20a%20CFA%20Charterholder%2C%20graduated%20with%20a%20Bachelor%20of%20Science%20from%20New%20York%20University%E2%80%99s%20Stern%20School%20of%20Business.%22%2C%22image%22%3A%2244381%22%2C%22linkedin%22%3A%22https%3A%2F%2Fwww.linkedin.com%2Fin%2Ftodd-cohen-cfa-70009a9%2F%22%7D%2C%7B%22name%22%3A%22Mitchell%20Hammer%22%2C%22job_role%22%3A%22Investment%20associate%2C%20Princeton%20University%20Investment%20Company%20(PRINCO)%20(United%20States)%22%2C%22content%22%3A%22Mitchell%20Hammer%20joined%20Princo%20in%20August%202017%20after%20interning%20the%20previous%20summer.%20He%20graduated%20cum%20laude%20from%20Princeton%20with%20a%20A.B.%20in%20English%20and%20a%20Certificate%20in%20Spanish%20Language%20and%20Culture.%20He%20received%20the%20Class%20of%201958%20Prize%20in%20Honor%20of%20Ernest%20Hemingway%20for%20his%20thesis%20on%20the%20impact%20of%20modern%20media%20on%20Virginia%20Woolf%E2%80%99s%20fiction.%20While%20he%20has%20no%20taste%20for%20fine%20wines%2C%20he%20is%20a%20veritable%20coffee%20snob%2C%20and%20spends%20most%20of%20his%20leisure%20time%20reading%20good%20books%20at%20even%20better%20caf%C3%A9s.%22%2C%22image%22%3A%2244382%22%2C%22linkedin%22%3A%22https%3A%2F%2Fwww.linkedin.com%2Fin%2Fmitchelljhammer%2F%22%7D%2C%7B%22name%22%3A%22Magnus%20Grimeland%22%2C%22job_role%22%3A%22Chief%20executive%2C%20Antler%20(Singapore)%22%2C%22content%22%3A%22Magnus%20Grimeland%20is%20the%20chief%20executive%20and%20founder%20of%20Antler%2C%20a%20global%20early-stage%20VC%20enabling%20and%20investing%20in%20the%20world%E2%80%99s%20most%20exceptional%20people.%20He%20leads%20a%20global%20team%20across%20five%20continents%20and%2014%20locations%20with%20the%20mission%20to%20fundamentally%20improve%20the%20world%20by%20supporting%20founders%2C%20who%20are%20building%20the%20defining%20companies%20of%20tomorrow.%20Antler%20has%20invested%20in%20and%20helped%20build%20over%20250%2B%20portfolio%20companies%20worldwide%20and%20established%20the%20world%E2%80%99s%20largest%20early-stage%20investment%20platform%2C%20with%20an%20unparalleled%20global%20network%20of%20entrepreneurial%20leaders%20and%20advisors.%5CnAs%20co-founder%20and%20regional%20managing%20director%20of%20Zalora%2C%20Grimeland%20was%20responsible%20for%20the%20ZALORA%20Group%20markets%20in%20Southeast%20Asia%20(SEA).%20He%20later%20became%20chief%20operating%20officer%20of%20Global%20Fashion%20Group%20(GFG)%20and%20was%20responsible%20for%20strategic%20market%20initiatives%2C%20improving%20the%20business%20and%20rolling%20out%20GFG%E2%80%99s%20marketplace%20across%2026%20countries%20in%20SEA%2C%20the%20Americas%2C%20Europe%2C%20the%20Middle%20East%20and%20Oceania.%5CnHe%20is%20an%20alumni%20of%20Harvard%20University%20and%20McKinsey%20%26%20Company%20in%20which%20he%20worked%20for%20six%20years.%20His%20last%20role%20was%20as%20a%20junior%20partner%2C%20working%20across%20North%20America%2C%20Europe%20and%20Asia%20in%20the%20global%20telco%2C%20media%20and%20high-tech%20industries.%20Prior%20to%20his%20studies%2C%20he%20served%20within%20the%20Royal%20Norwegian%20Navy%20Special%20Operations%20%E2%80%93%20Marinejegerkommandoen%20(Navy%20Seals).%20Very%20passionate%20about%20the%20start-up%20landscape%2C%20he%20is%20also%20an%20active%20angel%2Fseed%20investor%20in%20Asia%2C%20Europe%20and%20the%20US.%22%2C%22image%22%3A%2244383%22%2C%22linkedin%22%3A%22https%3A%2F%2Fwww.linkedin.com%2Fin%2Fmagnusgrimeland%2F%3ForiginalSubdomain%3Dsg%22%7D%5D” title=”Speakers” el_class=””][vc_quotes layout=”accordion” quotes=”%5B%7B%22name%22%3A%22Todd%20Ruppert%22%2C%22job_role%22%3A%22Chair%2C%20INSEAD%20endowment%20(United%20States)%22%2C%22content%22%3A%22R.%20Todd%20Ruppert%20is%20founder%20of%20Ruppert%20International%2C%20a%20firm%20with%20diversified%20interests%20in%20various%20fields%20globally.%20He%20is%20a%20board%20member%20of%20INSEAD%20Business%20School%2C%20Wilshire%20Associates%2C%20Shetland%20Space%20Centre%2C%20The%20Fine%20Art%20Group%2C%20and%20the%20Rock%20%26%20Roll%20Hall%20of%20Fame%2C%20among%20others.%20He%20is%20a%20venture%20partner%20at%20Greenspring%20Associates%2C%20a%20%2412%20billion%20venture%20capital%20firm.%20He%20is%20also%20an%20advisor%20to%20venture%20capital%20firms%20Antler%2C%20Fin%20VC%2C%20Sure%20Ventures%2C%20and%20Global%20Ventures.%20He%20is%20an%20advisor%20to%20private%20equity%20firms%20Access%20Holdings%2C%20Motive%20Partners%20and%20BroadLight%20Capital.%20He%20is%20also%20a%20serial%20early%20stage%20investor%20and%20advisor%20to%20numerous%20companies%20globally.%20Ruppert%20has%20over%2040%20years%20in%20the%20financial%20services%20industry.%20He%20retired%20from%20T.%20Rowe%20Price%2C%20the%20global%20asset%20management%20firm%20with%20over%20%241.5%20trillion%20under%20management%2C%20where%20he%20was%20CEO%20and%20president%20of%20T.%20Rowe%20Price%20Global%20Investment%20Services%2C%20co-president%2C%20T.%20Rowe%20Price%20International%2C%20and%20a%20member%20of%20the%20operating%20steering%20committee%20of%20the%20T.%20Rowe%20Price%20Group.%22%2C%22image%22%3A%2244384%22%2C%22linkedin%22%3A%22%22%7D%5D” title=”Moderator” el_class=””][vc_empty_space height=”10px”]
Key takeaways
nvestors should tap venture capital since many companies are staying private for longer. Investors who have backed start-up innovation have played a significant role in helping find solutions in healthcare and technology through the pandemic.
The VC space show really high returns from the top decile funds but enduring volatility.
Regulatory changes mean more capital is flowing into the asset class.
Venture is now a meaningful part of the overall asset allocation at PRINCO.
Some investors are increasingly taking their allocation out of buyouts and putting more into venture. Venture will be the risk generation for portfolios going forward, leading out-performance.
Although San Francisco and China will continue to produce great companies for years to come, more cities across the US are developing hubs for fast growing companies like Boston, Miami and Seattle. Outside the US, panellists listed Stockholm, Berlin and Singapore as venture hubs alongside Vietnam, Japan and Korea.
The pandemic (and travel ban) has made geography less of an issue when backing founders.
Investors seeks to fund entrepreneurs and founders with drive to solve a problem and grit to press on when they hit barriers.
The SPAC trend holds positives and negatives for start-ups. On one hand, it provides these companies with a new source of capital. On the other it has resulted in some companies going public too soon.
The big difference between the vaccine rollouts and the scale of the stimulus measures across the world could result in a K-shaped global economic recovery, with much of the developed world booming but poorer countries continuing to struggle. However the
Investors discuss how technological change and the new green economy is re-pricing assets in infrastructure, as well as the trend to substitute fixed income with infrastructure debt. But investors should not to lose sight of traditional infrastructure characteristics in their quest to tap new trends. Predictable cashflows and downside protection remain central.
Research that looks at the relationship between economic transparency and defining investment qualities such as yield spreads, credit ratings and stock price volatility shows sovereign transparency helps improve the value of assets, enables countries to lower their borrowing costs and achieve a better credit rating.
Inflation holds investor opportunities as well as perils. Emerging markets, commodities and linkers do well in a climate of rising prices while central banks are likely to act quickly and aggressively in response rather than early or gradually.
The unprecedented level of government debt signals sub-par economic growth ahead, warned Farouki Majeed, chief investment officer, Ohio School Employees Retirement System speaking at FIS Digital alongside Rich Randall, head of global debt at IFM Investors.
Inflation is the number one investor concern and whether it is here to stay was the subject of much debate at the Fiduciary Investors Symposium. While its longevity is contested it was agreed that its presence has important implications for the correlation between bonds and equities which creates problems for portfolio design. Investors at PGIM, QMAW, CPP Investments and NEST discuss.
Leave a Comment
You must be logged in to post a comment.
Login