Audrius Milukas’ Post

This year I'll be participating in the upcoming Lietuvos Davosas conference on March 21st!📢 I will be joining industry experts in several sessions:   📈 Session of Investment Potential in 2024, where I will give a presentation alongside Jolanta Jurga, Marius Dubnikovas, Ilja Laurs, and Vilius Bernatonis.   🤖 Session on Promoting Technological Progress, where I will join a panel discussion together with Ausrine Armonaite, Dainius Vilčinskas, Lukas Savickas, Marius Stasiukaitis, and Elena Mickevičienė.   Looking forward to exchanging ideas and contributing to meaningful conversations together!   ➡For more information check the link in the comments.   #LietuvosDavosas #startups #venturecapital #innovation

Another year in the Baltic VC scene went by, this time with its challenges and lessons learned. As all 2023 wrap-ups are fading away from LinkedIn, I’d like to bring attention to industries that in spite of all the challenges seem to grow and show a lot of potential in the startup ecosystem: 👉 AI enters 2024 strong. It seems that by 2024 more investors have cleared out their strategy and in order to break down competitive barriers will be focusing on smaller AI model applications as large AI models require significantly greater resources and longer response time. As regulations like the EU's AI Act become more widespread, compliance in AI will be crucial. 👉 In 2023 we witnessed a seismic shift in cybersecurity as enterprises increasingly strengthened their defenses. Trends indicate the move towards even higher security requirements with the majority of organizations planning to increase their cybersecurity budget by >10% in 2024 (source: Info-Tech). The trend was reflected in the Baltics with some of the biggest funding rounds closed by cybersecurity startups (Nord Security, Binalyze, RangeForce). 👉 As geopolitical tension is on the rise, the increasing importance of security in the Baltic states is also evident. Nato Innovation Fund has closed with €1.0b ready to invest, while local dual-use focused VC funds are also being launched. Baltic startups developing dual-use technologies have access to funding opportunities to supercharge the development and contribute to shaping our region's security. 👉 Healthtech has been growing, and last year constituted 15% of all invested capital in Europe (source: Atomico). AI in health will be an important aspect in 2024 as it improves clinical decision-making processes and consistency. We are seeing a surge of startups in the Baltics with successful health applications from AI to robotics. 👉 In 2023 we have seen advances in nuclear fusion and nano technologies, which have huge implications for energy production in the future, while cleantech constituted 27% of all invested capital in Europe, up from 18% in 2022 (source: Atomico). Cleantech startups also dominated the Baltic funding scene in 2023, demonstrating that we are keeping up with trends. 2023 changed the way investors in the Baltics look at startups and their valuations. Median seed valuations increased with fewer rounds, signaling that investors were rewarding fewer startups, focusing mostly on the ones with solid metrics. In 2024 investors will outline the importance of current metrics, while fast emerging industries will offer success opportunities to investors and the ecosystem as a whole. #AI #cybersecurity #dualuse #healthtech #cleantech #impact #impactinvesting #VC #startups Open Circle Capital

Looking back at 2023 it is apparent that the VC landscape has shifted drastically. What startups expect from investors and what investors expect from startups has changed, while promises of huge returns and secure jobs in VC have fallen short. Recollecting my thoughts on the past year, few of the notable aspects: 💡After booming startup valuations in the past couple of years 2023 has brought corrections to the market as an increasing number of down rounds and flat rounds brought a market reality check. In 2023 Q3 the down round and flat round percentage part of all rounds has increased by 43% compared to 2022 Q1 (source: Cooley). 💡Due to tough macroeconomic conditions and rising interest rates, VC was among those sectors that suffered a significant decrease in funding as investors became more picky and chose safer asset classes. Global VC investments have seen a 40% decline from 2022 to 2023 (source: Dealroom). 💡Rather than taking on new risks VCs were more willing to support their existing portfolio with follow-on funding, which as of H1 2023 made up 69% of the total VC deal count. However, at times this resulted in distorted valuations as to maintain appealing portfolio metrics VCs provide flat financing, even when a revaluation should take place (source: Pitchbook). 💡Startups that struggled to raise funds back in 2021 but survived are now highly valued. Investors have shifted their focus to current performance metrics rather than on the potential for future growth. In line, this resulted in higher quality startups and entrepreneurs. 💡 The AI sector seems to be the hot topic and an exception for most of the trends so far. VCs apply different investment thesis when investing in AI focusing more on TRL and scaling opportunities than current traction. AI brings both opportunities and challenges in regulation which will require the market to adapt accordingly. It's evident that 2023 changes are reshaping the way the VC world will look from now and onwards. In order to adapt to market challenges VCs will have to adapt as well providing not only capital but value added strategic guidance to their portfolio as well. Despite the general slowdown, startups remain the center of innovation therefore it is empirical that VCs stay active during these times to keep the economy growing.

#ZestMoney, a fintech startup backed by Goldman Sachs and once valued at $450M has declared that after failed attempts to find a buyer, it is shutting down. Alongside ZestMoney, other recent examples of startups closing down include #Braid, backed by Index and Accel, as well as #Pivo Africa. I do not find this news surprising as #vc is one of the highest-risk asset classes, and the reality is that 9 out of 10 startups do not return the money, and even companies backed by investors like big firms as Goldman Sachs sadly do not survive. Current market conditions are challenging, and I think we will hear news like this more often. However, this should not scare the investors away. Despite difficult market conditions, to catch that 1 we need to keep the VC investments and support the market 🚀   What are your thoughts? Link to the article in the comments.   #fintech #zestmoney #lending #venturecapital

Still living in Slush mood since last week in Helsinki 🇫🇮. Had a great time meeting ecosystem players during the conference and its many side events. My main thoughts and takeaways from the conference:   👉 The Lithuanian stand was one of the highlights of the entire conference.   👉 I found the main and side events a bit too over-crowded. However, sometimes such circumstances facilitate even more interesting connections with both startups and investors.   👉 Presentations and discussions were insightful, I especially enjoyed the founders stage, which was radiating lots of enthusiasm for what's yet to come in the VC world. The main hot topic is #AI 🤖🧠 discussed at every corner of the conference.   👉 One of the primary agendas of the event for VCs has been helping portfolio companies raise the next funding rounds.   👉 Fundraising landscape is proving to be very challenging for both VCs and startups. 6-12 months runway is a must.   #Slush #Slush2023 Open Circle Capital

I am very happy to join the investor team of #walk15.app startup as an angel investor. I have known Vlada MUSVYDAITE for more than 15 years, and I am very proud of the continuous growth that the Walk15 team was able to demonstrate. Greetings from Slush!

Last week, annual GREENTECH VILNIUS Forum took place, and I had the pleasure to both, deliver a presentation on the latest VC market trends and participate in a discussion on the cleantech startup future with other ecosystem players.   Main insights from my presentation:   💡From 2012 to 2022, global annual investments in climate tech increased more than 20x, with more than half of the funding going to startups in North America. However, in 9M 2023, global investments in climate tech have slowed down when compared to 2022 (source: Dealroom) 💡Main climate tech verticals chosen by investors in 2022 and 2023 were Energy and Transportation, accounting for over 60% of total funding during these years. The Carbon solution segment was the fastest growing (source: Dealroom) 💡Most investments in European energy startups in 2023 were attracted by the UK (Zenobē, Venterra Group) and Sweden (H2 Green Steel, Northvolt). In the Baltics, Estonia surpassed Lithuania due to funding rounds by Skeleton Technologies and Elcogen, while the main contribution to the LT statistic was PVcase (source: Dealroom) 💡Transportation sector dominates Greentech investments in Lithuania (source: Dealroom, Crowdsourced funding db)   During the discussion, we each shared our views on Greentech importance to the whole VC market. Thank you Laima Balčiūnė for organizing the discussion, and thanks to Kädi Ristkok, Rokas Peciulaitis, and Nikolai Adamovitch for your insights.   #greentech #venturecapital #startups Open Circle Capital

Last week I had the pleasure to attend Conference for Managers organized by the American Chamber of Commerce in Lithuania, where I had the opportunity to present global trends of venture capital. Here are some key takeaways:   - VC Slowdown: Global investments have seen a 36% decline from FY2022 to 9M 2023 (source: Dealroom). - Lithuania's Resilience: Despite the slowdown, Lithuania stands out among its Baltic peers, maintaining similar to 2022 VC investment levels mainly driven by mega-rounds by Nord Security, PVcase, and Cast AI (source: Crowdsourced funding db). - European VC Performance: European VC is delivering benchmark-beating returns with a solid 21% IRR over a 10-year period and outperforming the US VC and European PE indices (source: Atomico). - Reality is cruel: only 15% of all funded startups reach the M&A/exit stage, and only 2% of startups become unicorns. About 90% of startups eventually fail, even the ones showing significant results like WeWork and Convoy (sources: Atomico, Startup Genome). - Trending Industries: AI, Healthtech, and Sustainability lead the way, dominating the top 10 biggest global funding rounds in 2023 (source: Dealroom). - Global Recognition for Lithuania: Ranked 17th in the "Global Startup Ecosystem Index 2023" (source: StartupBlink).   Challenges and Opportunities in Lithuania: While LT startups are paying more taxes and are increasing number of people employed each year, there's a visible lack of capital as VC investments per capita in Lithuania are 3-10 times lower than in Finland or Estonia (sources: Unicorns.lt, Atomico).   The overall economic slowdown has impacted VC ecosystem growth. Only 2% of all funded startups become unicorns. In order to support the innovation and not miss the best performing startups, the need to provide VC funding remains crucial despite the economic slowdown.   #startups #venturecapital Open Circle Capital

Join Our Venture Capital Team as an Analyst at Open Circle Capital 🚀🚀🚀 Are you a passionate and driven individual with a keen eye for spotting investment opportunities? Do you thrive in a dynamic and fast-paced environment? Open Circle Capital, a leading VC firm located in the heart of Vilnius, Lithuania, is on the lookout for an exceptional Analyst to join our team and help shape the future of innovative startups. 🔍 What We're Looking For: - A sharp analytical mind to uncover high-potential investment prospects. - Strong financial modeling and due diligence skills. - Curiosity to explore diverse industries and technologies. - Collaborative spirit to work closely with entrepreneurs and industry experts. - Dedication to contribute to our mission of fostering innovation and growth. 🌟 Why Join Open Circle Capital? - Be part of a vibrant and dynamic VC ecosystem. - Collaborate with experienced professionals and industry leaders. - Play a crucial role in the investment decision-making process. - Work in the heart of Vilnius, a thriving tech hub. - Shape the future of groundbreaking startups. If you're excited to be at the forefront of innovation, make an impact, and take your career in venture capital to new heights, we'd love to hear from you! Connect with me or send your resume to am@opencirclecapital.lt to start a conversation about this exciting opportunity. Let's shape the future together! 🚀🚀🚀 #VentureCapital #AnalystOpportunity #JoinOurTeam

Andrius Bajoras is #hiring. Know anyone who might be interested?