Stride.vc Stops Raising, Unicorns Going Bankrupt and Why 2024 could be a real opportunity. 

Dear Antenna Friends,

Welcome to those we know and for those who are new, this is what we do at Antenna Digital Ventures (ADV):

ADV works with exceptional consumer-facing digital scaleups looking to expand into new markets. We are a Greek Family Office, owning major media organisations across Greece and Central Eastern Europe and have a strong track record as both investors and operators.

We leverage our media assets and balance sheet to assist companies in expanding into the region, offering media support, expert personnel, and capital. This support is designed to help you achieve success in a region that might otherwise go unconsidered, despite its potential reach of 120 million people.

We're looking for outstanding companies with a proven track record of customer success in the UK, US, or Western Europe. If your company is ready to seize this opportunity, tap into 120 million additional customers, and become the top choice in CEE, we want to hear from you.

For further info on what we do, click - HERE

As you may not know, I am James Sore, and I joined in August to head up the New Ventures Team. If we haven’t chatted please do reach out.

And now, on to the newsletter!

I sit here, gazing upon the trees losing leaves and the winter taking hold, it's hard to believe we're on the brink of another year.

What a rollercoaster 2023 has been! The economy played yo-yo with interest rates rising 5 times this year, and we now face the real threat of a recession as people's fixed-rate mortgages expire and monthly charges rise 2x or more.

Crypto exchanges’ leading figures went full-on crime drama, becoming not-so-heroic after all. FTX's Sam Bankman-Fried was charged with 7 counts and is facing a 100-year sentence, while Binance's CZ, the integrity champion, received a $50M fine and a graceful exit. In comparison, his company absorbed a record $4.3 Bn after pleading guilty to over $1Bn of money laundering.

What about start-ups? Well, they're grappling with a new normal of investor caution, limited expansion plans and market uncertainties.

Unicorns took a beating, with Cazoo was down 99.7%, and WeWork's woes hit rock bottom, declaring bankruptcy. Smile Direct Club, once valued at $8.9Bn, was the most recent to hit the wall, declaring bankruptcy on Tuesday. Customers found out through TikTok. I wonder if it’s yet another company falling foul of slim CAC to LTV ratios.

Now, venture capitalists are doing the cha-cha with their strategies. New investments are on pause, and down rounds in Europe are hitting levels not seen since 2014.

More disturbingly, some funds have stopped raising funds altogether. Most notably, Stride.VC who stopped fundraising and laid off much of the team in November. Fred goes through a postmortem of his decision on the EUVC podcast. I think a blade of grass was involved.

But hey, it's not all doom and gloom! 🌈 What does this mean for start-ups? It's time to be intelligent, efficient and maybe flirt with the idea of joint ventures (obviously).

According to PwC, UK joint ventures have increased 45% in the last decade. They can open doors to new markets, revenue streams, and overall business strength.

But, and it's a big BUT, choosing the right dance partner is crucial. So, how do you pick 'the one'? Here's a quick cheat sheet:

• Are they local rockstars? Test them out!

• What can they bring to the party? Scope out their reach. What doors can they open?

• Decision-making process? Speed matters, but it's a relationship, not a date!

• Shared success incentives? Make sure you're both on the same dance floor.

• Trust. Yep, it's a biggie.

• Past success? Did they nail it or step on toes?

And speaking of partners, if you're a mass-market digital consumer company eyeing Central Eastern Europe's 120 million customers, let's talk!

🚀 Interesting Insights:

• Did you know Apple gets 34% of Google's ad revenue on Apple devices? Secrets spilled at the Justice Department's antitrust trial!

• Sneaky AI - Sam Altman, OpenAI's sometimes CEO, was back in the news. He was suspected of lying to the board to cover internal security concerns and possible dodgy dealings with Rain, who had a LoI for a $51m contract (Sam conveniently invested $1m personally). AI has always been sneaky, though. Do you remember when it hid data in 2018? It's only getting craftier.

• Ex Klarna COO becomes CEO at Avanza - one week in, legal disputes, then out. Lessons learned? Pre-DD on hires (especially senior ones) is a must!

• Snap and Shop! - Amazon and Snapchat join forces for in-app purchases. China's onto something, with 23% of e-commerce spending happening through live shopping.

• Google's digging deep into its pockets, paying Samsung $8Bn to keep its search engine and Play Store front and centre.

• Winter isn't winter without SLUSH (what an event) – Antenna was proud to attend as Guests of fantastic Endeavor. Endeavor launched their Outliers Report – Transforming Greece. Take a read.

If you have any thoughts, or questions, or want to chat? Hit reply—we're all ears.

Wishing you warm fires, cosy sweaters, and a prosperous year-end!

Cheers,

Greg, James and the ADV Team

PS - Make sure you are signed up for the newsletter - HERE.