{"id":61992,"date":"2023-08-02T12:57:05","date_gmt":"2023-08-02T02:57:05","guid":{"rendered":"https:\/\/icmarkets.com.au\/blog\/?p=61992"},"modified":"2023-08-02T12:58:16","modified_gmt":"2023-08-02T02:58:16","slug":"ic-your-trade-3-episode-ten","status":"publish","type":"post","link":"https:\/\/www.icmarkets.com.au\/blog\/ic-your-trade-3-episode-ten\/","title":{"rendered":"The startup factory"},"content":{"rendered":"\n<div style=\"position:relative; padding-bottom:56%;\">\n<iframe style=\"position:absolute; top:0; left:0; width:100%; height:100%;\" src=\"https:\/\/www.youtube.com\/embed\/hQpcaYkaKnA\" title=\"YouTube video player\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" allowfullscreen=\"\"><\/iframe>\n<\/div>\n<style>.post-thumbnail{display:none;}<\/style>\n\n\n\n<p>Mark Zuckerberg\u2019s Harvard classmate Magnus Grimeland is behind Antler &#8211; which is one of the world\u2019s most active early-stage investment firms.<\/p>\n\n\n\n<p>Antler has coined the term \u201cday zero investing,\u201d which refers to the process of backing companies from the moment of inception.<\/p>\n\n\n\n<p>Grimeland\u2019s proximity to the Facebook juggernaut taught him the power of startup investing &#8211; provided you have a methodology for identifying potential from the outset.<\/p>\n\n\n\n<p>Peter Thiel famously invested $500,000 for just over 10% of Facebook, which at IPO would have been worth $500 million.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/www.icmarkets.com.au\/blog\/wp-content\/uploads\/2023\/08\/image.png\"><img decoding=\"async\" src=\"https:\/\/www.icmarkets.com.au\/blog\/wp-content\/uploads\/2023\/08\/image-1024x576.png\" alt=\"\" class=\"wp-image-64754\"\/><\/a><\/figure>\n\n\n\n<p>Grimeland\u2019s commitment to startup investing is not only about making money, it\u2019s also deeply philosophical.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>We fundamentally believe that the world will only move forward if great people choose to innovate. If the smartest people in the world choose to solve some of the world&#8217;s biggest problems, then the world becomes a better place for everyone.<\/p>\n<\/blockquote>\n\n\n\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/www.icmarkets.com.au\/blog\/wp-content\/uploads\/2023\/08\/image-1.png\"><img decoding=\"async\" src=\"https:\/\/www.icmarkets.com.au\/blog\/wp-content\/uploads\/2023\/08\/image-1-1024x329.png\" alt=\"\" class=\"wp-image-64755\"\/><\/a><\/figure>\n\n\n\n<p>The rule of thumb for startup investing is to dedicate between 5 -10% of an investment portfolio to risk assets, like startups.<\/p>\n\n\n\n<p>His advice for picking the most promising startups is to look at the founder.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>Take Elon Musk, probably one of the most successful founders today; back in the early days of SpaceX, and in the early days of Tesla, you probably didn&#8217;t back the idea, but you backed the individual based on the track record that person has<\/p>\n<\/blockquote>\n\n\n\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/www.icmarkets.com.au\/blog\/wp-content\/uploads\/2023\/08\/image-2.png\"><img decoding=\"async\" src=\"https:\/\/www.icmarkets.com.au\/blog\/wp-content\/uploads\/2023\/08\/image-2-1024x329.png\" alt=\"\" class=\"wp-image-64756\"\/><\/a><\/figure>\n\n\n\n<p>Successful exits for startups like Airbnb, Uber, and Facebook fueled interest in startup investing, sending a flood of capital into startup ventures in 2020 and 2021.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/www.icmarkets.com.au\/blog\/wp-content\/uploads\/2023\/08\/image-3.png\"><img decoding=\"async\" src=\"https:\/\/www.icmarkets.com.au\/blog\/wp-content\/uploads\/2023\/08\/image-3-1024x576.png\" alt=\"\" class=\"wp-image-64757\"\/><\/a><\/figure>\n\n\n\n<p>The rush of angel and seed funding in the United States drove up valuations and sparked a euphoria, which preceded the 2022 tech crash.<\/p>\n\n\n\n<p>However, in the wake of the 2022 so-called \u201ctech wreck,\u201d the ability for companies to attract seed and angel investment has significantly declined.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/www.icmarkets.com.au\/blog\/wp-content\/uploads\/2023\/08\/image-4.png\"><img decoding=\"async\" src=\"https:\/\/www.icmarkets.com.au\/blog\/wp-content\/uploads\/2023\/08\/image-4-1024x576.png\" alt=\"\" class=\"wp-image-64758\"\/><\/a><\/figure>\n\n\n\n<p>Venture capital has dried up and companies that did manage to raise seed capital are finding it difficult to raise their Series A.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/www.icmarkets.com.au\/blog\/wp-content\/uploads\/2023\/08\/image-5.png\"><img decoding=\"async\" src=\"https:\/\/www.icmarkets.com.au\/blog\/wp-content\/uploads\/2023\/08\/image-5-1024x576.png\" alt=\"\" class=\"wp-image-64759\"\/><\/a><\/figure>\n\n\n\n<p>According to Grimeland, this situation will be temporary.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/www.icmarkets.com.au\/blog\/wp-content\/uploads\/2023\/08\/image-6.png\"><img decoding=\"async\" src=\"https:\/\/www.icmarkets.com.au\/blog\/wp-content\/uploads\/2023\/08\/image-6-1024x329.png\" alt=\"\" class=\"wp-image-64760\"\/><\/a><\/figure>\n\n\n\n<p>While the data also shows that there are fewer deals, the size of the seed investment is getting bigger.<\/p>\n\n\n\n<p>There is a caveat, in that this potentially indicates venture capitalists are becoming more discerning.<\/p>\n\n\n\n<p>There is still capital on the table, but only the quality projects are managing to attract funding.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/www.icmarkets.com.au\/blog\/wp-content\/uploads\/2023\/08\/image-7.png\"><img decoding=\"async\" src=\"https:\/\/www.icmarkets.com.au\/blog\/wp-content\/uploads\/2023\/08\/image-7-1024x576.png\" alt=\"\" class=\"wp-image-64761\"\/><\/a><\/figure>\n\n\n\n<p>Startups are also quickly learning that they need to be more fiscally responsible with any money raised during the seed round.<\/p>\n\n\n\n<p>The average time from seed to Series A has almost doubled over the last decade, from 17 months to 30 months.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/www.icmarkets.com.au\/blog\/wp-content\/uploads\/2023\/08\/image-8.png\"><img decoding=\"async\" src=\"https:\/\/www.icmarkets.com.au\/blog\/wp-content\/uploads\/2023\/08\/image-8-1024x576.png\" alt=\"\" class=\"wp-image-64762\"\/><\/a><\/figure>\n\n\n\n<p>Antler has offices in more than 20 countries around the world, with the belief that the next wave of unicorn startups won\u2019t necessarily originate from the United States.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/www.icmarkets.com.au\/blog\/wp-content\/uploads\/2023\/08\/image-9.png\"><img decoding=\"async\" src=\"https:\/\/www.icmarkets.com.au\/blog\/wp-content\/uploads\/2023\/08\/image-9-1024x576.png\" alt=\"\" class=\"wp-image-64763\"\/><\/a><\/figure>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>Historically, the world&#8217;s very best companies typically have a tendency to be started in a downturn and not at the very top, or on the way to the top, because they&#8217;re going to exit seven, eight, nine, ten years into the future.<\/p>\n<\/blockquote>\n\n\n\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/www.icmarkets.com.au\/blog\/wp-content\/uploads\/2023\/08\/image-10.png\"><img decoding=\"async\" src=\"https:\/\/www.icmarkets.com.au\/blog\/wp-content\/uploads\/2023\/08\/image-10-1024x329.png\" alt=\"\" class=\"wp-image-64764\"\/><\/a><\/figure>\n","protected":false},"excerpt":{"rendered":"<p>Mark Zuckerberg\u2019s Harvard classmate Magnus Grimeland is behind Antler &#8211; which [&hellip;]<\/p>\n","protected":false},"author":8,"featured_media":61993,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[464],"tags":[],"class_list":["post-61992","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ic-your-trade"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.icmarkets.com.au\/blog\/wp-json\/wp\/v2\/posts\/61992","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.icmarkets.com.au\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.icmarkets.com.au\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.icmarkets.com.au\/blog\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/www.icmarkets.com.au\/blog\/wp-json\/wp\/v2\/comments?post=61992"}],"version-history":[{"count":1,"href":"https:\/\/www.icmarkets.com.au\/blog\/wp-json\/wp\/v2\/posts\/61992\/revisions"}],"predecessor-version":[{"id":61994,"href":"https:\/\/www.icmarkets.com.au\/blog\/wp-json\/wp\/v2\/posts\/61992\/revisions\/61994"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.icmarkets.com.au\/blog\/wp-json\/wp\/v2\/media\/61993"}],"wp:attachment":[{"href":"https:\/\/www.icmarkets.com.au\/blog\/wp-json\/wp\/v2\/media?parent=61992"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.icmarkets.com.au\/blog\/wp-json\/wp\/v2\/categories?post=61992"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.icmarkets.com.au\/blog\/wp-json\/wp\/v2\/tags?post=61992"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}