STARTUP X
The F42 brief #007
👋 Hi, I’m Derek, and welcome to the Fusion42 newsletter! This is your go-to source for navigating the startup ecosystem and making things easier for everyone involved. Here, beyond Consensus views for Maverick Founders and Investors to overcome common challenges, so you can build and scale with confidence. No BS , no Fluff, just the TREWS to help you get **it done. Join 3,000+ founders and discover what truly matters for your venture—and how to set yourself up for lasting success.
Here’s your Monday dose of The F42 Brief, where we give you essential updates and innovations that are moving and shaping our startup space.
What’s inside »
📈 Trending Now
The one thing that’s making all the noise …. with a bit of fact checking.
💸 New Funds looking to give you cash
Who has launched a new fund to invest in startups last week.
💡Innovator Spotlight
Founders that are doing suff differently.
🛠️ Tool of the Week
Something useful to up your startups velocity.
📌 Note to Self
Stuff I constantly remind myself about, don’t want make the same mistakes again.
📈 Trending Now
The U.S. startup scene has hit a rough patch, with failures jumping 60% over the past year. Many startups are running out of the cash they raised during the tech boom of 2021-22, leading to a wave of bankruptcies. This is a big deal since venture-backed companies employ about 4 million people.
Several factors are driving this trend:
Market Overcrowding: Some industries are now so packed that new startups struggle to stand out.
Changing Consumer Tastes: People's preferences are shifting fast. If startups can't keep up, their products or services might become outdated.
Regulatory Challenges: Dealing with complex and changing rules can drain a startup's resources and slow down growth.
But there's a silver lining. Historically, startup funding tends to pick up after elections. So, there's hope that investment will bounce back soon.
If you have not joined the Fusion42 Community on Telegram — A space for Founders, Framers, and Funders who show up to get **it done,
it is probably time to do so.
For the ❤️ of Startups
💸 New Funds looking to give you cash
Last week, 26 new venture capital funds launched,Global Reach: Investments span regions including North America, Southeast Asia, MENA, and Africa, with several country-specific funds.
Sector Focus:
Technology & AI: Significant focus on innovation in AI, tech, and cybersecurity.
Green Tech: Emphasis on renewable energy and sustainable investments.
Blockchain/Web3: Notable interest in early-stage blockchain projects.
Diversity & Inclusion: Strong support for funds targeting women-led, minority-led, and underserved markets.
Victor Capital Partners Fund II
$310 million fund investing in lower-middle-market businesses with a focus on specialty consumer, industrial tech, and business services.
Theory Ventures
$450 million fund focusing on early to growth-stage technology startups with significant innovation potential.
Kyocera Venture Fund
$100 million fund targeting global tech startups in AI, renewable energy, and mobility, with U.S., Middle East, and Asia allocations.
Janngo Capital
$78 million Pan-African fund investing in tech startups to improve access to goods and services, with a focus on women and youth-led businesses.
Superscrypt (Temasek & Republic)
$100 million fund focused on early-stage blockchain and Web3 startups.
GoalVest Advisory's Venture Growth Fund
$50 million fund catering to high-net-worth investors, focused on mid- to late-stage AI, SaaS, climate, defense, and consumer sectors.
What’s on at F42 this week,
Join our online sessions:
Startup Resilience
Go to market for Startups
Pitch Kung Fu
Skypointer Capital
$30 million fund for early to mature-stage investments in global tech sectors, focusing on diverse industries and geographies.
MaC VC
$150 million fund investing in seed-stage startups with check sizes of $2 million to $3 million, primarily in robotics and space.
TCG Labs Opportunity Fund I
Later-stage venture capital fund managed by The Column Group, targeting growth investments.
BBG Ventures
$60 million fund supporting diverse founders in healthcare, fintech, and AI sectors.
BIM Capital
$200 million joint venture targeting high-growth sectors in Saudi Arabia and the Middle East, with a focus on tech and real estate.
Warrington Ventures
University of Florida student-led fund aiming to raise $500K-$1M to invest in pre-seed and seed startups in the US Southeast.
Peak XV
$9.2 billion fund (formerly Sequoia India), focusing on AI, fintech, and consumer sectors in India and Southeast Asia.
Revo Capital
Turkey-focused VC investing in early-stage tech startups, with a portfolio of 20 companies.
Fuze Venture Growth Fund I
$30 million fund investing in minority, veteran, and women-led early-stage ventures, focusing on technology, education, and financial services.
Jelawang Capital
RM1 billion fund by Khazanah Nasional to boost Malaysia's startup ecosystem through early and growth-stage investments.
IMM India Fund
Growth-stage fund by IMM and Krafton, targeting consumer tech, SaaS, fintech, gaming, and deep tech in India.
Wa’ed Ventures
$100 million Saudi Aramco-backed fund for early-stage AI startups in Saudi Arabia.
Paloma Capital's VC Fund II
$25 million fund investing in high-growth technology companies in Australia and New Zealand, with a focus on underserved industries.
Creative Capital Ventures
€18 million fund for early-stage tech, digital media, and consumer products, with plans to expand to €50 million by 2025.
VinVentures
$150 million fund by Vingroup, focusing on AI, semiconductors, and cloud computing, primarily targeting early-stage startups in Vietnam.
Jordanian Innovation Fund
$5 million fund supporting early-stage Jordanian startups aiming for regional growth.
Ring Africa Venture capital fund
launched by Ring Capital, investing in startups in French-speaking Africa.
Golden Gate Ventures MENA Fund
$100 million MENA-focused fund investing in alternative energy, green tech, AI, and fintech.
Early Game Ventures
€60 million CEE-focused fund investing in cybersecurity, developer tools, and enterprise software.
Depth Capital Ventures
New AI-focused fund targeting early-stage AI companies, founded by Jeff Arnold and Paul Jun.
💡Innovator Spotlight
A recent analysis has shed light on strategies to significantly boost response rates for follow-up cold emails, with some approaches achieving over 90% success. Key takeaways include:
Subject Line Optimization: Shifting the introductory message into the subject line can lead to a more than 300% increase in open rates. For example, changing "checking in" to a subject line that clearly states the email's purpose, such as "Textio contract logistics | hello from Textio CEO," can capture attention more effectively.
Concise and Direct Messaging: Keeping the email body brief and to the point enhances engagement. Shorter emails have been shown to receive higher response rates compared to longer, more detailed messages.
Vulnerability and Authenticity: Expressing genuine concern and openness in your follow-up can resonate with recipients. An example of this approach is: "It seemed like you were initially excited to partner. When people go quiet on us, it usually means our product or process disappointed you somehow. Can you tell me what happened so we can get better for next time?" Such candidness can lead to a 90% response rate.
Implementing these strategies can transform your follow-up emails from being overlooked to becoming effective tools for engagement.
FUSION42 RAISE SUMMIT
🛠️ Tool of the Week
This week, I’m excited to highlight Andoria, an innovative tool designed to streamline user onboarding for startups. Built by a team of AI experts, Andoria transforms the onboarding process from months into just one day, adapting seamlessly to changes in your user interface.
User Benefits:
• Personalised Onboarding: Tailors the experience to each user’s specific needs, speeding up activation.
• No Code Required: Easy integration with a simple script tag—no manual tagging needed.
• Adaptive Technology: Automatically updates with any UI changes, saving time and effort.
This is the way forward, hyper localised and personalised and playing exactly to one of F42’s Core Principle: Everything must be built on the ethos of maximising value from minimal user input. 🙏🏼
📌 Note to Self
Thank you for reading. If you liked it, share it with your friends, colleagues and everyone interested in the startup Investor ecosystem.
If you've got suggestions, an article, research, your tech stack, or a job listing you want featured, just let me know! I'm keen to include it in the upcoming edition.
Please let me know what you think of it, love a feedback loop 🙏🏼
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For the ❤️ of startups
✌🏼 & 💙
Derek