End Of Year Letter
- sean52921
- Dec 26, 2024
- 6 min read
Dear all,
As I sit in London Heathrow Airport, preparing to embark on my fifth business trip to Shanghai this year, I find myself reflecting on what has been an extraordinarily busy, productive, and rewarding year for both myself and my firm. Allow me this letter to truly appreciate the milestones we have achieved, the lessons we have learned, and the exciting opportunities that lie ahead.
First and foremost, I want to extend my heartfelt gratitude to our clients and partners whose unwavering trust, support, and vision have been the cornerstone of our success this year. Your continued support has made 2024 a standout year, and I am deeply grateful for the role each of you has played in our journey.
Achievements in 2024
Facilitating Cross-Border Transactions
One of the cornerstones of all of our accomplishments this year has been our ability to assist clients with the complex process of transferring capital out of China for investment overseas. Whilst we are a boutique firm, I have to say that in this area, we really offer unparalleled service.
E-commerce Beauty Brand Acquisition
Among our standout deals this year was the acquisition of a prominent e-commerce beauty brand.
Angel Tickets
We helped write more than 20 early-stage angel investment tickets this year, diversifying our clients’ portfolios and supporting amazing founders along the way . These investments underscore our commitment to fostering innovation and driving growth in emerging industries.
Strategic Investments in Secondary Markets
We secured positions in highly sought-after companies including OpenAI, Revolut, SpaceX, Anduril, and Anthropic at competitive market prices, that have gone on to see significant uptick:
With OpenAI, we entered at a $100 billion valuation. With their next financing round expected to push their valuation to $150 billion, this market entry point was a big win for us.
Similarly with SpaceX, getting in at less than $200 billion valuation, the company is now valued at $350 billion.
For a comprehensive overview of our portfolio’s successes and insights into our approach, I encourage you to schedule a call with me or one of our team. We’d be delighted to share the details and discuss how we can create similar value for you.
Reflections
E-commerce
At the start of the year, I was incredibly cautious about e-commerce investments - due to their tight margins, operational dependencies, and the high risk for error. My initial research also highlighted the high occurrence of clone’s - copy catting established successful products and undermining all work of the original creator. I stand by my original sentiment that it’s a highly risky industry.
However, my perspective shifted dramatically after attending a e-commerce mastermind event in Europe in the summer. This experience has shifted my belief in the transformative power of e-commerce and its ability to generate substantial returns when approached strategically. For clients, my approach going forward will be to offer hands-off investments into ecom founders with proven potential.
FMCG Challenger Brands
Investing in challenger brands within the FMCG sector remains a significant challenge. Passion is not enough for the founders - The low margins and dominance of large conglomerates make it incredibly difficult for smaller players to break into the industry. While the potential is there, going forward we will approach these investments with heightened diligence and realistic expectations.
Brokerage Deals
This year, we ventured into high-ticket brokerage deals but found ourselves outmatched by larger players with greater resources. As a result, we have decided to refocus our efforts back onto only working on direct-investment deals for our exisiting clients. This strategic shift allows us to deliver the best possible pricing and outcomes while staying true to our core expertise.
Alternative Investments
One of the most interesting deals this year was our involvement in a VR entertainment project. This sector presents fascinating opportunities for investors willing to think outside the box and take bold steps into emerging markets. Niche, but enjoyable to work on, and I hope that there are other similar challenges to work on next year.
Strategic Focus for 2025 - Emerging Opportunities
Healthcare and Supplements
GLP-1 Medications: I’m calling it now. This sector is poised for explosive growth in the coming year. We have already written—and continue to write—significant tickets for early entrants, and I encourage interested clients to reach out.
Nootropics: Brain-boosting supplements are gaining traction among young professionals and the over-35 single-working-mum demographic. While the niche may seem unconventional, the profitability and growth potential are undeniable.
Tech
AI Assistants: Personalized AI solutions, ranging from legal advisors to financial planners, are set to revolutionise multiple industries. Our early-stage investments in this space are already yielding promising results, and the field will see mature adoption next year.
EdTech: As someone deeply passionate about education, I foresee major breakthroughs in AI-driven learning platforms in 2025. These advancements have the potential to transform how knowledge is accessed and delivered globally.
EdgeAI: I called it on X back in September, expect to see huge growth there next year.
HomeTech Advancements
Expect significant advancements in energy efficiency in Europe, as smart home technologies continue to evolve. This sector presents opportunities for investors looking to capitalize on sustainability-driven innovations.
Drone Technology
Having invested in agricultural and delivery drone technology this year, I am increasingly confident that regulatory frameworks will soon evolve to support the widespread adoption of this transformative technology.
Currently, the mainstream narrative often focuses on urban delivery - largely driven by Silicon Valley VCs proximity bias leading them to only think about Amazon and Uber Eats deliveries. However, I believe the real game-changers will emerge in developing countries. These regions, often characterized by vast rural areas and limited infrastructure, stand to benefit the most from drone technology. Drones have the unique ability to bridge infrastructure gaps, offering unprecedented opportunities to improve connectivity, streamline supply chains, and enhance access to essential goods and services.
My recent time in Nepal underscored this potential. In areas where rugged terrain and limited transportation networks hinder accessibility, drones could play a pivotal role in delivering medical supplies, agricultural resources, and even everyday essentials. The impact of such technology in these environments could be revolutionary, creating a leapfrog effect that brings these communities closer to global standards of connectivity and development.
I foresee drones becoming a cornerstone of infrastructure solutions, not just in developed nations but even more so in the developing world. This is where I believe the future of drones truly lies, and I am excited to continue supporting this vision.
Health Tech Innovations
Wearables are set for a leap forward in functionality and design. Companies like Whoop may soon find their current offerings outdated as competitors introduce more advanced technologies, especially in terms of practicality and minimalism.
Core Values for 2025
Service Fees: I am committed to keeping service fees as reasonable as possible next year, while delivering quality and value. I hope we can reduce fees involved in SPV formation, legal & DD checks as we grow.
Trust: Deepening relationships with existing clients and fostering trust are crucial for our long-term success. It's clear that strong client relationships are more likely to lead to referrals and expanded opportunities.
Strategic Market Focus: We will continue to prioritize investments in Western markets, particularly Europe and the United States. South America and Asia are clearly full of potential, but my belief is that they are too challenging for us due to market opacity and difficulties in assessing competitive fit. By focusing on markets where we have deep expertise and established networks, we can ensure better outcomes for our clients.
Closing Thoughts
As I reflect on 2024, I am filled with a sense of accomplishment and gratitude. This year has been one of growth, learning, and transformation, and I am excited about the opportunities that lie ahead in 2025. Our mission as a company remains clear: to deliver exceptional investment opportunities, build lasting relationships based on trust and performance, and create meaningful value for our clients.
Personal growth
It’s no secret to those who know me, that I absolutely love mountains and mountain climbing. For me, this hobby is encapsulated by Misogi (禊) - the traditional Shinto practice of purification that often involves taking on physically or mentally challenging tasks to cleanse oneself and reconnect with spiritual essence.
So I say this to you all: ‘Maybe in the future’ is such an awful phrase. If you want something, don’t be afraid to go get it. Time waits for no one. “Take on challenges that radically expand your sense of what’s possible. Does it make your jaw drop? That’s a good litmus test for whether something can be a misogi or not.”
To our clients and partners, thank you for your unwavering support and confidence in us. If you would like to discuss your portfolio, explore new opportunities, or simply catch up, please do not hesitate to reach out.
Merry Christmas and a happy new year to all.
Thanks
Sean Young
Founder, MD - Rui Capital