5-Bullet Friday – April 1st

Catching my attention recently:

  1. Private Equity Continues to Shine. Why? How? What’s Next?
  2. Top 100 Venture Capitalists. Top investors are betting on growth, not waiting for it.
  3. BILLIONS. Investors: What Would you do with $2 Billion? Entrepreneurs: Do you Have a Worthy Game-Changing Idea? 
  4. What Most People Don’t Understand About How Startup Companies are Valued.
  5. Rule Yourself. Here’s Some Inspiration. 

1-Private Equity Continues to Shine. In a decade marked by extreme volatility, the PE industry demonstrated its resiliency and ability to generate alpha over the long term. Bain & Company’s Global Private Equity Report 2016 is remarkably detailed and captures well the state of PE. The industry bounced back from the 2008 financial crisis. With assets prices near record-highs, low interest rates, and slow economic growth, the investment firms that will prosper in the next decade will be those with finely tuned strategies and value creation plans. The maturing industry is in the middle of a generational shift. New GPs will emerge: they will likely be smaller, highly focused, hands-on, have a deep sector expertize, and a differentiated strategy.

2-Top 100 Venture Capitalists. The New York Times and CB Insights have ranked of the top venture capital partners. According to the ranking, it turns out that the top start-up investors are betting on growth, not waiting for it. While late-stage investors have often attracted headlines the last few years with more and more non-traditional start-up investors leading huge financing rounds, early-stage investments have represented the bulk of the industry’s gains since 1994. Since the dot-com boom of the late 1990s, between 1/3 and 3/4 of the industry’s returns have been generated by early-stage investments in any given year. Changes in the source of early-stage investing returns are also noteworthy. Top-returning VC investments used to be highly concentrated among a handful of firms. A shift has occurred over the last decade; new venture firms have contributed to an increasing share of the best investments, according to Cambridge Associates.

3-What would you do with $2 billion? Entrepreneurs; do you have a worthy game-changing idea? Accel shares 9 themes to deploy their latest funds. Key words: quantified, autonomous, social, enterprise, video, VR, security, on-demand.

4-What Most People Don’t Understand About How Startup Companies are Valued. If you are an entrepreneur or advising one, this blog entry by Mark Suster will help you understand the sentiment prevailing among VCs. Valuations were in many cases inflated and they are gradually adjusting downwards to more sustainable levels. Attractive unit economics, operational discipline, cash flow generation are finally back among entrepreneurs’ priorities in 2016.

5-Rule yourself – New Michael Phelps Under Armour ad captures beautifully the passion, sacrifices of 22-time Olympic medalist. The Rio Olympics will be his 5th and final Olympic Games; a golden opportunity to end his swimming career on a high note. I look forward to the Olympics in a country that I love; Brazil!

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About Ludovic Dumas

Ludovic transforms innovative companies into world-class organizations. He is an investment professional at an investment firm representing the interests of one of the most successful families in Canadian business. Before joining the private equity world, Ludovic was an investment banker at CIBC and with ING Group’s investment banking team in Frankfurt, Germany. Mr. Dumas was also a management consultant with Deloitte where he worked on corporate strategy, restructuring, market analysis, due diligence, and economic development mandates. Specialties Mergers & acquisitions, capital raise, corporate strategy, entrepreneurship.
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