Q3 brought a bit of hope after a gloomy start to 2023 for the tech world.
September saw the IPO market for venture-backed companies open for the first time since late 2021. Klaviyo, ARM & Instacart were all well-priced IPO’s that popped on issuance day — hooray! However, since then, all three have lost some shine as they now trade below their IPO price. The Klaviyo IPO was interesting to observe, as it set the scene for how public market investors are thinking about SaaS valuations. Klaviyo has strong metrics (65% rule of 40, 119% NRR and still growing at 57% YoY at $585m of revenue) and closed the IPO day trading at 14.5x EV/LTM revenue. This could put pressure on SaaS valuations, especially in later-stage businesses that may have historically traded at high multiples but can’t match the Klaviyo metrics.
Last quarter, we also saw a few large exits including the $1.2bn acquisition of LeanIX, a Germany-based enterprise architecture tool, by SAP, and Atlassian acquired Loom for $975m (technically Q4, we know :) ) — congrats to both teams!
Even with some of the more positive news above, the market still remains challenging for early-stage businesses fundraising, and VCs have raised the bar for what constitutes a Series A or Series B round. This is leading to an increase in internal rounds or longer timelines for external fundraising rounds. In recent weeks we have started to see an increase in early-stage businesses going out to raise external financing, so hopefully that’s a positive sign for Q4.
Despite tough conditions, we remain active in deploying capital and welcomed both HarfangLab and IMMIX to the portfolio. Catch up on our highlights below for all the latest news and perspectives and where to meet us next ⬇️
👋 Welcome to the MMV portfolio
HarfangLab offers endpoint detection and response (EDR) solutions to enhance identification and neutralization of cyberattacks
Founded in 2018 by Xavier Boreau and Grégoire Germain — both with decades of experience in combatting cyber threats — Paris-based HarfangLab publishes EDR (Endpoint Detection and Response) software, a technology that anticipates and neutralises cyberattacks on computers and servers. Certified by ANSSI since 2020, HarfangLab today has over 250 customers, including government agencies, businesses and international organisations operating in highly sensitive sectors. We participated in their €25 million Series A round alongside Crédit Mutuel Innovation and Elaia, fueling HarfangLab’s continued AI and threat intelligence development and expansion across Europe.
Immix is a non-custodial ultra-low latency crypto trading system for institutional investors
Founded by Dr. Andrew Mann and Dr. David Twomey in 2019, London-based IMMIX is the leading marketplace for high performance, non-custodial crypto-asset infrastructure, stripping away the barriers for institutional Web3 trading. With its whitelabel ultra low latency trading platform, execution and liquidity capabilities, IMMIX is powering next-generation institutional Web3 trading. Its platform unifies the end-to-end trading lifecycle for the next frontier of tokenized financial markets. We led their $2.7M fundraise alongside Ripple.
🗞️ Portfolio news
Aspire and Qoala
Bondblox (formerly BondEValue)
Citi Security Services will become the first digital custodian participant of BondbloX Bond Exchange (BBX). This development is a further step in revolutionizing digital bond trading and bringing many of the benefits of equities trading to the bond market.
Daye obtained FDA 510k clearance for its gamma-irradiated tampon, which significantly reduces the risk of vaginal infections and Toxic Shock Syndrome (TSS), and officially launched its diagnostic tampon and comprehensive gynae health platform in the US.
HelloBetter received FDA Breakthrough Device Designation for its panic program, paving the way for it to offer mental health therapy programs via prescription in the US.
Oncoshot joined forces with Buzzreach Inc. (a next-gen clinical trials recruitment platform supporting over 130 clinical trial sites) to enter Japan and launched their new LLM tool (Recommend Tx) to change how hospital partners extract and manage data within federated data systems.
Qure.ai expanded their partnership with AstraZeneca to close the lung cancer care gap and make lung cancer screening accessible to nearly 50,000 people in Lebanon, Turkey, Iraq, UAE, Egypt, and Kenya.
Sikoia partnered with Myos to enhance client onboarding and risk decisioning and joined EY’s Fintech Growth programme.
Griffin introduced its safeguarding accounts, client money accounts and payments products as it prepares to exit from the “mobilisation” phase to a fully licensed UK bank.
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Last month, we gathered fellow UK-based investors and founders for a fun night of go-karting in London. We’d like to congratulate Sikoia’s Alexis Rog for beating every MMVer on the track!
During the quarter, we participated in several events across Europe. Ryan, Alix, Sam, and Max attended Bits & Pretzels in Munich. Sam and Alix made their way to Paris to connect with the B2B Rocks and FDDAY communities. Yara headed to Basel for the Intelligent Health Summit.
The Singapore team also headed to a few conferences during the quarter, with Weijian and Carlos attending Token2049 in Singapore and Coinfest — Asia’s immersive Web3 Festival — in Bali over the summer.
🥳 MMV in the News
Thanks to Sifted for featuring MMV in their article showcasing US-headquartered VC firms expanding into Europe. We’ve spent the last 18 months building up the team, with five of us now on the ground in London — Alix, Sam, Yara, Ryan, and Max. We are one team, one fund for Europe and Asia-Pacific, working very closely with our colleagues Anvesh, Carlos, Cheryl, Weijian, and Vivian in everything we do. We’re proud to have partnered with HelloBetter, Accelex, Daye, XUND, Griffin, Sikoia, Turbine, nyra health. Immix and HarfangLab, so far, and look forward to doing much more across the region.
Yara connected with Sifted to share the techbio startups she’s watching in 2023.
Catch the MMV team
During the fall, we’ll be attending Wolves Summit in Vienna, Frontiers Health in Rome, and Slush in Helsinki. If you’ll be attending any of those, be sure to connect with us in person and get to know our team.
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