Presto News | Q3 2024
VC and startup news on technologies that protect the future + updates on all things Presto
Dear partners & friends of Presto,
While summer is typically quieter on the investment front, we used Q3 to sharpen our operations, processes, and tooling to position our team for the next phase of growth. It’s been an exceptionally productive period – no downtime, just relentless execution.
We’ve welcomed a new Partner, investor and top-level executive Lucie Bresova. With her remarkable track record of scaling Kiwi.com from 10 to 2,000 employees in just four years, she’s uniquely positioned to guide our companies through rapid growth. Additionally, Michal Vojta joined us as COO and Chief of Staff, and we’re also looking for new team members #hiring.
Our portfolio companies have celebrated many wins and milestones – more on this below – and Q4 is already shaping up to bring more great portfolio news.
All in all, 2024 has been one for the books. We wish you a successful finish to the year, and an advent season that will allow you to recharge for the adventures of 2025.
Without further ado, feel free to jump to the sections that interest you the most:
1. Highlights
2. Portfolio fundraising
3. Market insights
4. Brainfood
5. #MeetPresto
6. Department of memes
⭐ Highlights
- Despite a tough fundraising environment, more than half of Presto II portfolio companies have successfully raised at least one follow-on funding round. Overall we’ve seen 36 subsequent rounds, totaling more than €100M. This spells continued business growth and investor confidence.
- Lakmoos AI stood out among 137 ambitious projects and snatched silver in Vodafone Idea of the Year – the OG of Czech and Slovak startup competitions, serving as a financial and creative boost for new promising projects since 2007. Interested in the Lakmoos story? Check out Kamila’s interview with Finmag.
Filip Magalhães
- Nearly half of young Czechs aged 18-24 are considering entrepreneurship. That’s only one of the highlights of our Presto Index survey among 1,000 online respondents, conducted in collaboration with our friends at Behavio. For a detailed breakdown, explore the survey results and Michal Hron’s commentary in Finmag.
Michal Bernáth
💸 Portfolio fundraising | Selected companies
- Magic ID | Early revenue | AI Agent | Magic runs AI agents for automatic and seamless KYC certification
- GoRealTravel | $50k in monthly gross profit | Curated Marketplace | Create a custom trip instantly
- Finmap | €1.5M ARR | B2B SaaS | Cash flow management tool for modern business
➡️ 11 of our portfolio companies are currently fundraising or about to start. To learn more, please visit the Presto showroom.
💡 Market insights
Global funding trends
- Global startup funding reached $66.5 billion, marking a 16% decrease QoQ and a 15% decline YoY.
- Mega-rounds ($100M+) accounted for approximately 46% of total funding, slightly down from 50% in the previous quarter.
- The average global venture deal size was $14.4 million, reflecting a 17% YoY increase.
European market trends
- European startups raised $10 billion in Q3 2024, the lowest amount since Q3 2020, representing a 36% QoQ and 39% YoY decline.
- Early-stage funding reached $4.5 billion across over 290 rounds, a 12% YoY decrease.
- Late-stage funding fell by more than 50% YoY, totaling $4.2 billion across over 70 rounds.
Market outlook
- Selective VC funding environment: With venture capital funding down approximately 15% YoY, investors remain selective, focusing on startups with strong growth metrics due to revenue growth challenges and a tougher exit landscape.
- Increase in M&A activity: M&A transactions are projected to rise in Q4, offering a valuable exit path for companies facing slower IPO timelines and potentially helping stabilize venture returns.
- Growth in deeptech and climate investments: Investments in deeptech and climate-focused startups are expected to grow as LPs show greater interest in sustainable technologies and innovation-driven sectors.
For a deep-dive on these market highlights 👆🏼 follow these resources 👇🏼
- Global funding slowed in Q3, even as AI continued to lead | Crunchbase News
- Global venture capital funding rounds dip in Q3 2024 | S&P Global
- Venture Pulse Q3 | KPMG
🧠 Brainfood
In-house thoughts worth sharing 🙌🏼
- Forbes interview: NATO & Friends | Vojta & Premysl
Forbes.cz editor in chief, Zdravko Krstanov, spoke with Vojta and Premysl about building Presto Tech Horizons – Europe’s largest privately-backed fund focused on resilience and impact investing for the future. - Vojta Zizka Podcast: How to start a business and succeed? | Vojta Rocek
Let's hear straight from Vojta Zizka on this one: “Vojta Rocek is smart, bold, and – most importantly – he’s got the guts to say out loud what most people are just thinking. That’s the secret sauce for a great interview. Thanks for the laughs and insights.” Give it a listen, thank us later. - We're facing stagnation, unrest, and despair | Vojta Rocek
…unless we do something about it, soon. Our Presto Index entrepreneurship survey shows that young people want to start businesses, but certain fears are holding them back. What can and must be done?
More VC thoughts to feed your mind 📚
- Generative AI's Act o1 | Sonya Huang, Pat Grady
Sequoia explores the evolution in generative AI from pattern-based responses to sophisticated reasoning, driven by ‘System 2’. This shift enables AI to solve complex problems with deliberate, agentic reasoning, marking a new era for next-gen applications. - Software with a Soul: AI’s Underestimated Frontier | Anna Piñol
NFX discusses the emergence of AI systems with human-like traits – creativity, empathy, and emotion – designed for more intuitive interactions. These AIs go beyond automation, aiming to form real connections and transform industries through meaningful user engagement. - Where Returns Lie in Venture Capital | Kevin Zhang
Eastwind discusses how a few investments drive most venture capital returns, stressing the need to spot potential outliers early. Kevin highlights strategies for identifying these high-impact opportunities and the challenges in predicting which startups will become top performers. - Why Generalists Own the Future | Dan Shipper
Dan argues that generalists, with their adaptability and broad knowledge, are primed for the future. In a world where AI manages specialized tasks, generalists excel in creative problem-solving, making them crucial in an economy that values flexibility over deep specialization.
👋🏼 #MeetPresto
This fall was rich in events. We really enjoyed the annual Engaged Investments conference, UK-Ukraine Defence Tech Forum in London, Smart Industry 2024 in Koprivnice, and the international Cassini Hackathon, among many others.
With the event season winding down, we’re excited for the events of 2025 – follow our #PrestoAdVentures on LinkedIn.
🇨🇿 Investing in Advanced Technologies | Dec 10 | Prague, Czechia
🇪🇪 sTARTUp Day | Jan 29-31 | Tartu, Estonia
🇩🇪 European Defense Tech Hackathon | Feb 14-16 | Munich, Germany
🤓 Department of memes
That's it from Presto.
Stay tuned for the next issue ✌🏼