Jul 9, 2018, 9:25 PM ETConference Presentation, Panel

Trends in Venture Capital

Ella Amadei (50 Years, San Francisco): Leads a fund investing in deep tech at the intersection of $1B revenue potential and systemic global problems, specifically cellular agriculture, synthetic biology, and autonomous future.
Jalil Jobin (Future Perfect Ventures, New York): An early-stage global fund focusing on blockchain and crypto; founded after observing the upcoming rise of the next 3–4 billion internet users in non-developed nations.
Maria Arisa (Mexico): Former CEO of Amexcap (170+ funds, $54B+ committed capital); currently overseeing Mexico's first new stock exchange in 120 years to address low IPO liquidity.
Ron Cao (Sky9 Capital, China): Early-stage firm with three closed funds; focuses on consumer internet, enterprise IT, and deep tech (AI/blockchain) with check sizes of $2–6M (Series A) and $10–20M (expansion).

Late-Stage Glut: Ella Amadei notes a significant glut of capital at the late stage (over 100 "mega rounds" last year) while early-stage activity remains relatively low, indicating a market reconfiguration rather than a bubble.
IPO Market Disruption: The public IPO market is described as "broken," leading companies to delay IPOs and rely on massive secondary rounds to provide liquidity for employees and early investors.
China's Pre-IPO Surge: Ron Cao observes that pre-IPO rounds are "hot again" in China following a cooling period, driven by a return of domestic capital and a maturing pre-IPO market.
Mexico's Capital Shifts: Maria Arisa reports that 2/3 of Mexican venture capital comes from abroad, while national pension funds remain focused on real assets; recently, new regulations allow pension funds to invest 90% of assets outside Mexico, increasing fundraising pressure.
Dry Powder Availability: There is approximately $1.2 billion in dry powder for venture capital in Mexico, providing sufficient runway for the next two years.

CVC Timing Strategy: Ella Amadei advises against early-stage corporate involvement, noting that companies should only accept strategic investors (e.g., Tyson, Cargill) after de-risking technology and securing Series A+ rounds to avoid acquisition distractions.
China's Strategic Investors: Ron Cao states that roughly 50% of breakout Chinese tech deals include strategic capital from major players (BAT/JD), typically entering after Series C/D when the company has sufficient leverage to negotiate favorable terms.
Hong Kong IPO Rise: Ron Cao highlights Hong Kong as an emerging major player for tech IPOs due to regulatory changes allowing dual-share classes, with companies like Xiaomi going public there and US-listed Chinese firms considering relocation.
Mexico IPO Gap: Maria Arisa identifies a structural gap where mid-cap companies are excluded from exits, noting there are only ~150 issuers in a market that should support at least 1,200.

Blockchain Infrastructure: Jalil Jobin predicts blockchain will revolutionize sectors previously impacted by the internet (supply chain, food security), citing the Australian Securities Exchange's move to blockchain post-trade settlement.
Synthetic Biology: Ella Amadei cites the lowering costs of genome sequencing and CRISPR as catalysts for a new industry focused on engineering microorganisms for food and material production.
China's Tech Race: Ron Cao positions AI as the U.S. lead but blockchain as China's potential lead, driven by government backing despite bans on ICOs and exchanges.
Mexico Fintech Opportunity: Maria Arisa highlights fintech as a primary focus due to only 35% credit-to-GDP coverage and a new fintech law providing regulatory certainty.

Primary Risk Factors:
- Jalil Jobin: Regulatory uncertainty; argues that positive regulation is safer than an unregulated vacuum and warns of the risk of shutdowns without compliance.
- Ella Amadei: "People" risk (entrepreneur burnout and authenticity) and the risk of missing the next wave of academic technologies.
- Maria Arisa: Lack of updated information and increasing cybersecurity threats.
SDG Alignment: 50 Years (Amadei) maps its 42 portfolio companies directly to UN Sustainable Development Goals (SDGs), viewing impact as a prerequisite for massive business potential.
Mission-Driven Thesis: Jalil Jobin and Ella Amadei both emphasize that the most successful 21st-century companies will be those solving global challenges (e.g., financial inclusion for the 2 billion unbanked), attracting top talent through mission alignment rather than pure financial incentive.

Optimism Level: All panelists expressed that they are "by far" more optimistic about the venture landscape now than three years ago.
Next Wave of Innovation: Jalil Jobin predicts a convergence of macro factors (smartphone proliferation, reduced compute costs) will create the first globally inclusive wave of technology innovation.
Asset Digitalization: Ron Cao predicts blockchain will facilitate the "digitalization of assets," allowing for broader asset trading on decentralized networks.