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5 Themes for Early-Stage Investing
Fresh Data from Q1 2024
A word from our lawyers
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Aggregated and anonymized data from 43,000 startups
+
Largest database of SAFEs anywhere in the world
5 Themes for Early-Stage in 2024
SAFEs are eating the world of early-stage startups
Theme 1
1
1
1
Valuations remain healthy
on lower volume
Theme 2
2
2
Small teams, fast progress
Theme 3
3
3
It’s AI and everything else
Theme 4
4
It’s Bay Area and everywhere else
Theme 4
5
5
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Ventures
Customized Solutions with Extraordinary Service
PRIVATE & CONFIDENTIAL
In June 2023, Citizens accelerated its private banking growth strategy with the addition of 50+ new senior Private Bankers in California, New York, Boston, and Florida. Several sought-after teams chose to join Citizens based on its strong culture and client focus. ��Within three months, Citizens announced the opening of six Private Bank Offices around the country, and the appointment of Susan deTray as Head of Citizens Private Bank.
By year-end 2023, the Private Bank was off to a strong start with over $2 billion in deposits and $0.4 billion in investments.
Our journey ends with success
June 2023
August 2023
September 2023
November 2023
December 2023
Ongoing
52
PRIVATE & CONFIDENTIAL
Standing strong for nearly two centuries, Citizens offers the stability and soundness of a well-run, well-capitalized, and well-regulated financial institution. As a federally regulated bank, Citizens adheres to strict capital and liquidity guidelines and undergoes rigorous stress testing to ensure these benchmarks are met and exceeded. While a traditional bank, our business mix is diversified with retail and commercial clients across diversified segments and industries. �
As part of our risk management processes, Citizens regularly runs capital and liquidity stress tests and maintains buffers above required limits. Citizens is very well-capitalized and has a strong liquidity position. Citizens has one of the highest capital levels in our regional bank peer group. In addition to maintaining funding base with significant contingent liquidity of approximately $79 billion.
A foundation of strength and stability
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PRIVATE & CONFIDENTIAL
Since its founding nearly 200 years ago, Citizens has been dedicated to helping clients and communities reach their potential. Today, the same commitment to going further to help clients maintain and build their wealth drives the Citizens Private Bank culture and values.
An extraordinary caliber of service
54
PRIVATE & CONFIDENTIAL
Putting you front and center
Your Private Banking team is empowered to act quickly to support your individual needs. They serve as a proactive partner committed to furthering your every aspiration and success.
PERSONAL SERVICE�Gain access to assistance anytime you need it. Your knowledgeable Relationship Manager responds to every request with the superb service you expect.
COMPREHENSIVE, PERSONALIZED SOLUTIONS�A robust suite of personal, business and wealth management services helps you seize every opportunity.
55
PRIVATE & CONFIDENTIAL
Empower your business with expedited, personalized service.
56
PRIVATE & CONFIDENTIAL
Dedicated to bring you experiences and insights beyond banking
Solutions that go beyond and above
57
PRIVATE & CONFIDENTIAL
Connect with
Ventures
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What’s Different about AI Startups?
7 Key Insights
Jukka Alanen
Managing Partner
jukka@rebellionvc.com
April 4, 2024
1. AI Revolution Enabled by Learning, Data, and Faster Computing
Copyright © 2024 Rebellion Ventures. All rights reserved.
61
Traditional Software
AI Software + Data
Radical improvement potential: 10-100x+
New applications, previously infeasible
Disruption of the status quo
1
2
3
2. AI Enabling Massive Economic Value Creation
Copyright © 2024 Rebellion Ventures. All rights reserved.
62
$15+ trillion contribution to
global economy by 2030
Automating processes
Augmenting humans
Enabling new
AI-powered products and
business models
Disruptive Innovation with AI
Value Creation
3. Focus on AI Value, Not Hype
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63
Radical Improvement for Customers
Building a Standalone Business
Real Business
Incremental AI Feature
Ideally 10-100x+
+
4. New Opportunities to Revolutionize Traditional Operations and Business Models
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64
Status Quo
EXAMPLE: A startup that enables digital AI workers for insurance brokers
Software AI robots as digital workers
Trained to perform specific jobs
80% cost savings
10x faster processes
Shift humans to higher value-add work
Manual, inefficient operations
Costly, slow, error-prone
Outcomes
Solution
5. Investment Profiles and Market Dynamics Are Very Different by AI Category
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65
Horizontal AI Applications
Vertical AI Applications
AI Infrastructure
$16.9 billion investment
141 deals
$120M average
$3.7 billion investment
204 deals
$18M average
$1.2 billion investment
81 deals
$15M average
Disclosed equity funding in GenAI in 2023*
* Includes only GenAI, not other AI. Source: CB Insights
Large differences by category:
6. New (and Old) Sources of Competitive Advantage in AI
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66
AI models & algorithms
Data
Data network effects
Specialization & domain expertise
Platform network effects & scale
Brand, go-to-
market
Execution capability
AI-specific
General
Relative importance varies by category:
e.g., Vertical AI vs. AI Infrastructure
Solution breadth
7. Importance of Ethical, Responsible AI
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Using AI as a force for good
Transparency | Trustworthiness | Fairness |
Accountability | Privacy | Sustainability |
Reliability | Safety and Security | Governance and Compliance |
Responsible, Ethical Use of AI
Rebellion Ventures
Copyright © 2024 Rebellion Ventures. All rights reserved.
68
Specialized Seed/Pre-Seed VC firm based in Silicon Valley
Helps entrepreneurs build AI & Automation companies to revolutionize operations and business models
Operating track record: Built 3 VC-backed companies to $3.5B in IPO and M&A exits
Network of 60+ leading operating executives and industry experts in AI & Automation as Limited Partners
Focused on Helping AI & Automation Entrepreneurs
Copyright © 2024 Rebellion Ventures. All rights reserved.
69
“The top 1% of investor/advisor usefulness to a portfolio company, both in terms of strategic recommendations, network intros, and operational guidance.”
- 3-time founder, CEO of a portfolio company
“A unique combination of direct guidance and access to a broad and valuable network of experts.
Recommend Rebellion to any company seeking not just capital, but acceleration.”
- CEO of a portfolio company
Rebellion Ventures Fund
Rebellion Ventures confidential. Do not distribute.
70
Fund already oversubscribed
Portfolio already up in value:
9 investments thus far, 5 already increased in value
Final closing by April 29th; limited space
Learn more:
Jukka Alanen
jukka@rebellionvc.com