Hello friends! Axel from Gilion here.
Another week, more intriguing developments in the world of tech and funding. Let’s dig in.
Emerging VC Trends: Specialization Takes Center Stage
One of the more intriguing reads since our last newsletter was this insightful piece from TechCrunch on trends among emerging venture funds. I highly recommend diving into it as there's much to unpack. A key trend that aligns with what we’ve observed across our markets is the growing need for specialization.
As startups become increasingly niche, so too must their investors. The last generation of first-time VCs were typically generalists, often based in major tech hubs. Today, standing out from the crowd requires a sharp industry focus and deep knowledge. More funds are now targeting specific sectors and emerging markets, often raised outside major cities.
With increased competition for deal flow and more new funds emerging, many are also investing at earlier stages. While it's great to see institutional capital flowing to more firms, I believe that early startups benefit immensely from the right business angels who can fill experience gaps within founding teams.
Kudos to Norrsken
Monday morning saw a buzz of activity and some delayed meetings at Gilion’s Stockholm office, with the entire block cordoned off by police and blackout buses. Initial concerns of bomb threats or crime were soon alleviated—it was a state visit from German Chancellor Olaf Scholz to our neighbors, the sustainability-focused accelerator and VC fund Norrsken. This week, Norrsken also closed a substantial €350 million fund.
These events signal that impact-focused tech is transitioning from aspiration to tangible financial and political influence.
It’s tough out there
The wave of bankruptcies continues to surge across Sweden, with April seeing a 72 percent increase in bankruptcies compared to the same period last year. A total of 942 limited liability companies declared bankruptcy in April, marking the highest figure since 1994, according to Creditsafe.
Customer highlight
A pioneer in German Aftercare
At Gilion, we love to see innovation and technology as the driving force tackling complex challenges. And patient aftercare in Germany is no different. Hence we were delighted to get to share the story of how we could support this company. They also tick a lot of boxes that we’ve talked about earlier, from going after a deep sub niche, to utilizing specialized investors.
Recare has pioneered an open marketplace by leveraging technology to make processes faster and more secure; freeing up healthcare professionals to focus on patients, not paperwork.
In record Maximilian Greschke and team have:
• Grown their platform to include 700 acute hospitals, 650 rehabilitation clinics and 24.000 further care providers
• Established a roadmap to reach 80 percent market penetration by 2025
• Helped more than 400,000 patients find suitable aftercare providers
Check out the full case at: https://www.gilion.com/clients/recare
Stay tuned as we continue to explore the ever-evolving landscape of technology and its financial ecosystem. And as always, do let us know if there’s anything you’d like for us to cover.
/Axel
