Name: What's hot in European tech? With Joe Schorge, Isomer Capital
Uploaded: 2024-06-12T15:18:55.968Z
Duration: 281.2
Description: At SuperVenture, we had a conversation with Joe Schorge, Founder and Managing Partner at Isomer Capital. With 20+ years of experience, Joe shares his investment strategies, sector interests, and the importance of sustainability and impact investing in his investing approach.

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English

{{00:00:00}}
The most promising trends in European tech

{{00:00:17}}
and what we've seen over the last couple
of years is The move from growth at

{{00:00:22}}
any cost to prudent growth and, getting
to profitability as quick as you can.

{{00:00:28}}
And for those companies needing to
raise, achieving the operational

{{00:00:31}}
metrics that, that support a
good fundraiser, the good value.

{{00:00:35}}
So I see a lot of healthy growth.

{{00:00:38}}
It's not necessarily reflective in NAVs.

{{00:00:40}}
We're seeing a lot of flat rounds
or rounds with structure and so on,

{{00:00:44}}
but I'm really encouraged by the
operational growth within companies, a

{{00:00:48}}
lot of great products getting stronger
and moving into other countries.

{{00:00:53}}
I don't know that's a very
general trend not sector specific,

{{00:00:57}}
but I'm really pleased with
how portfolios are developing.

{{00:01:11}}
We, we are a sector agnostic
firm we're, everywhere.

{{00:01:17}}
I'm pretty excited about what's
going on in, in some traditional

{{00:01:21}}
industries like manufacturing.

{{00:01:24}}
There's of course a geopolitical movement
to nationalize quite a lot of important

{{00:01:29}}
things from security to security of
production, but security in many forms.

{{00:01:35}}
So there's a lot of work being done there.

{{00:01:37}}
Of course, I have to say, being
2024, I have to say the application

{{00:01:41}}
of artificial intelligence to
lots of different use cases that's

{{00:01:45}}
happening now that's exciting to see.

{{00:01:48}}
Too much hype, as usual, as always happens
in hype cycles, but a lot of finally real

{{00:01:53}}
applications coming out of that largely
the ones I'm most excited about right

{{00:01:57}}
at the minute is in the medical world.

{{00:02:00}}
So using MRI data, using x ray data
to diagnose with higher levels of

{{00:02:05}}
accuracy and with better treatments.

{{00:02:07}}
And that's really happening.

{{00:02:09}}
So As I get older, I'm really
excited to see better treatments

{{00:02:13}}
being built by digital technology
because I'll need them at some point.

{{00:02:18}}
We

{{00:02:26}}
evaluate potential co invests which
we do only with our VC partners.

{{00:02:31}}
So we invest alongside VC funds.

{{00:02:33}}
It starts from a good relationship with
those VCs who are the primary funders.

{{00:02:38}}
And they often can't fill
a round, so we join them.

{{00:02:41}}
We do our own analysis of companies.

{{00:02:43}}
We have to be a sector, a business we
can buy into, and of course pricing.

{{00:02:49}}
So we do co invest, but we maintain a
pretty strong pricing discipline, which

{{00:02:55}}
means right now a lot of things with
AI on them are pretty expensive for us.

{{00:02:59}}
But we we really leverage our
VC partners who are the smartest

{{00:03:04}}
investors in Europe, and then put
our own point of view alongside that.

{{00:03:08}}
The benefits are of course Higher
multiples you can get from great

{{00:03:12}}
direct deals and blending down
the fee burden within funds.

{{00:03:25}}
It's very important to us, and I'm happy
to say that Europe is really leading the

{{00:03:29}}
world in sustainable business models and
integrating sustainability into society.

{{00:03:37}}
As regards manufacturing, we've
backed a number of businesses

{{00:03:40}}
that are more focused on reuse.

{{00:03:42}}
Like rather than buy a new mobile
phone, if you can buy a refurbished

{{00:03:45}}
mobile phone, for example, You save 70
percent of the total carbon footprint.

{{00:03:51}}
So there's a lot of very
specific direct things you can

{{00:03:53}}
do like that, which we've done.

{{00:03:56}}
But also, when we invest with fund
managers, we're having a conversation as

{{00:04:00}}
part of our DD about their approach to
all ESG topics, the sustainability being

{{00:04:06}}
part of that, how they're working with
their companies, how they're Reporting,

{{00:04:12}}
and we're asking what sort of reporting
we, we will be able to get over time.

{{00:04:16}}
So we do monitor that in a
very large portfolio and try to

{{00:04:20}}
influence with best practice.

{{00:04:22}}
Part of our job is to
cross pollinate good ideas.

{{00:04:25}}
So if we find a good idea, a good
practice somewhere to really help our

{{00:04:28}}
other business partners adopt that.

{{00:04:31}}
And that's fun.

{{00:04:32}}
And I think is a levered
effect across the portfolio.

The most promising trends in European tech

and what we've seen over the last couple
of years is The move from growth at

any cost to prudent growth and, getting
to profitability as quick as you can.

And for those companies needing to
raise, achieving the operational

metrics that, that support a
good fundraiser, the good value.

We're seeing a lot of flat rounds
or rounds with structure and so on,

but I'm really encouraged by the
operational growth within companies, a

lot of great products getting stronger
and moving into other countries.

I don't know that's a very
general trend not sector specific,

but I'm really pleased with
how portfolios are developing.

We, we are a sector agnostic
firm we're, everywhere.

I'm pretty excited about what's
going on in, in some traditional

There's of course a geopolitical movement
to nationalize quite a lot of important

things from security to security of
production, but security in many forms.

So there's a lot of work being done there.

Of course, I have to say, being
2024, I have to say the application

of artificial intelligence to
lots of different use cases that's

Too much hype, as usual, as always happens
in hype cycles, but a lot of finally real

applications coming out of that largely
the ones I'm most excited about right

So using MRI data, using x ray data
to diagnose with higher levels of

So As I get older, I'm really
excited to see better treatments

being built by digital technology
because I'll need them at some point.

evaluate potential co invests which
we do only with our VC partners.

It starts from a good relationship with
those VCs who are the primary funders.

And they often can't fill
a round, so we join them.

We have to be a sector, a business we
can buy into, and of course pricing.

So we do co invest, but we maintain a
pretty strong pricing discipline, which

means right now a lot of things with
AI on them are pretty expensive for us.

But we we really leverage our
VC partners who are the smartest

investors in Europe, and then put
our own point of view alongside that.

The benefits are of course Higher
multiples you can get from great

direct deals and blending down
the fee burden within funds.

It's very important to us, and I'm happy
to say that Europe is really leading the

world in sustainable business models and
integrating sustainability into society.

As regards manufacturing, we've
backed a number of businesses

Like rather than buy a new mobile
phone, if you can buy a refurbished

mobile phone, for example, You save 70
percent of the total carbon footprint.

So there's a lot of very
specific direct things you can

But also, when we invest with fund
managers, we're having a conversation as

part of our DD about their approach to
all ESG topics, the sustainability being

part of that, how they're working with
their companies, how they're Reporting,

and we're asking what sort of reporting
we, we will be able to get over time.

So we do monitor that in a
very large portfolio and try to

Part of our job is to
cross pollinate good ideas.

So if we find a good idea, a good
practice somewhere to really help our

And I think is a levered
effect across the portfolio.

Expert Insight

At SuperVenture, we had a conversation with Joe Schorge, Founder and Managing Partner at Isomer Capital. With 20+ years of experience, Joe shares his investment strategies, sector interests, and the importance of sustainability and impact investing in his investing approach.