Deutsche Bank´s Head of Corporate Venture Capital Joerg Landsch about the VC market and Aleph Alpha

Deutsche Bank´s Head of Corporate Venture Capital Joerg Landsch
shares his insights about the current VC market and the
investment into Aleph Alpha





Summary:





Aleph Alpha and Deutsche Bank Investment


Joerg from Deutsche Bank Venture Capital discusses the bank’s
investment in Aleph Alpha, a leading German AI company often
compared to OpenAI. Despite some early investors, such as
Lakestar and 468 Capital, stepping away, others like Early Bird
continue to support the company. Joerg emphasizes the dual nature
of Aleph Alpha as both a strategic and VC-driven case, with its
funding round being heavily oversubscribed. The company is
strategically positioned as a European leader in secure AI
solutions, particularly focusing on compliance and legal
applications while maintaining GDPR compliance and handling
sensitive data effectively.





Venture Capital Market Recovery


Joerg highlights a slight dip in global venture capital funding
in Q3 2024, reaching $55 billion due to fewer mega-rounds.
However, he anticipates strong growth in Q4 and beyond,
discussing factors like the US presidential election, the Ukraine
conflict, and economic policies. He doesn’t foresee significant
startup relocations to the US despite geopolitical tensions.





German and European VC Market Developments


Joerg discusses the “Win Initiative,” a €10 billion investment
plan for startups in Germany and Europe. He notes bipartisan
political support for venture capital across administrations and
highlights the need to close Europe’s €30 billion annual
investment gap. Insurance and pension funds are identified as
potential key players in the market.





European Capital Market Regulation


Joerg points out challenges in the VC market, such as low exit
rates (5.2%) and IPO shortages in Q3. Successful exits are
crucial for reinvesting in new funds, and European capital market
reforms are necessary to enhance liquidity and provide faster
exit options.





AI Ecosystem Trends


Joerg identifies four layers of AI development: hardware,
foundational models, applications, and infrastructure. He notes
that the most innovation and activity currently occur in the
application layer, reflecting Aleph Alpha’s focus on practical,
scalable AI solutions.