B2B Tech Investing
Kealan Doyle returns to The Next 100 Days podcast to discuss what’s hot in B2B Tech Investing. His company Symvan Capital has made dozens of strategy SEIS and EIS investments into B2B Tech companies. So, what should we look out for right now, in a market downturn?
Summary of the Podcast
Kealan provided an overview of venture capital trends in the UK, noting the growth of the EIS/VCT market and resulting boom in early-stage tech investing. While valuations ballooned, many inexperienced investors entered, not understanding the risks and volatility inherent to the sector.
Current market conditions
- Kealan described the current B2B tech investing market. It’s a bear market.
- The bear market started 2 years ago (2021-2) as interest rates rose globally.
- Many overvalued companies face steel down rounds as funding dries up.
The Corporate Finance Institute describes ‘down rounds’:
- Down round refers to a scenario where the value of a business at a time of investment is below the value of the same business during a previous period or financing round.
- Normally during a down round, investors purchase equity in the business at a lower price, in comparison to previous investors.
- Companies who require funding now, need much stronger business cases to raise capital.
Custodiex and digital asset security
- Kealan highlighted Symvan Capital’s investment in Manchester based Custodiex.
- Custodiex is a startup that secures digital assets through “cold storage’ offline vaults.
- Their B2B Tech investing opportunity is about tokenised real estate, art and funds.
- While regulation remains key, Kealan believe the digital asset sector will emerge from its early volatile years.
Potential Policy Changes Under a Labour Government
- A new labour government may negatively impact EIS/VCT incentives.
- Potentially individual wealth could be impacted through inheritance and other tax increases.
- Kealan acknowledge political risks, but felt the digital asset sector’s growth would not be significantly curtailed.
- INVESTOR ALERT – act now before the socialists take power!
Clips from the Podcast
The Time to Invest is Now!
EIS VCT Market
Interest Rates Impact
Be Careful About Bear Market Advice
What Makes a Good Investment?
But Will Trump Say No to Central Bank Digital Currency
From Twitter…after Trump wins the GOP nomination in the Iowa Caucuses
Hard to Get Capital
Get in Touch with Symvan Capital
CONTACT FORM: https://www.symvancapital.com/apply-now
Testimonial From Kealan Doyle
The Next 100 Days Podcast Co-Hosts
Graham founded Finely Fettled to help business owners and marketers who want to market to affluent and high-net-worth customers. With the vast majority of investors having no exposure to alternative investments his new website https://investmentalternative.co.uk brings opportunities to the attention of investors. Find Graham on LinkedIn.
Kevin specialises in finance transformation and implementing business change. He’s the COO of GrowCFO, which provides both community and CPD-accredited training designed to grow the next generation of finance leaders. You can find Kevin on LinkedIn and at kevinappleby.com