The space industry used to be dominated by a single player: the U.S. government, which contracted out services to a handful of very large aerospace primes and put their tech to use in long-term, centrally managed programs. Things have rapidly evolved since. Due to an explosive technological acceleration and, in part, venture capital and private equity, the U.S. government is one customer among many – but it doesn’t intend on being left behind. READ MORE
The CIA’s venture capital firm has been busy lately
It used to be that when spies wanted to communicate with each other, they would set up a radio station that broadcast unsettling beeps or the monotone recitation of numbers. It was all done in the public domain — you just didn’t know what it all meant, unless you had a way to decrypt it.
So there’s an odd item in Motherboard today about In-Q-Tel, the venture capital arm of the Central Intelligence Agency, putting money into the encrypted chat app Wickr. We know this because, like a numbers station, In-Q-Tel operates somewhat publicly, filing 990 tax forms for the public to scrutinize. But do we have any idea what these numbers mean? Not really. READ MORE
Family Offices Increase Venture Investing
Nontraditional venture investors are helping to reshape the sector. Family offices, which typically manage wealthy families' fortunes, are significantly expanding their influence on venture, according to a report published last week by a subsidiary of financial services firm Silicon Valley Bank Financial Group and family office intelligence firm Campden Wealth. READ MORE
Venture capitalists are chasing industrial tech start-ups as supply shocks widen
Supply chain disruptions are hitting some of the most powerful companies in the world, pushing venture capitalists to invest in industrial tech start-ups that are offering solutions.
So far this year, a record $45.1 billion has been raised by industrial start-ups, compared with the $34 billion raised in all of 2020, according to data from PitchBook. READ MORE
Tiger Global And SoftBank Vision Fund Vie For Top Slot As Q3’s Biggest Startup Investor
The heaviest spenders in the venture capital world are showing no signs of paring down. If anything, the two most famously deep-pocketed investors–Tiger Global Management and the SoftBank Vision Fund–appear to be putting more capital to work.
Those are the findings from our latest quarterly tally of the most active global startup investors. In it, we find that the 14 most active investors participated in a total of 661 funding rounds in Q3 2021. We list the top names below, looking at deals they participated in as well as rounds they led: READ MORE
Private equity is ready to take MSP consolidation to the next level
The outlook for managed services providers (MSPs) remains positive, as increasing complexity and security concerns — driven by the work-from-anywhere environment and high-profile hacking incidents — have moved IT management from being a cost center to a core strategic priority for the C-suite. READ MORE
How to raise venture capital in a hybrid world
When I raised capital for my startup LearnVest over a decade ago, getting on a plane to meet investors in person was a matter of course. Many founders have tales of their trips up and down Sand Hill Road, and war stories of missed flights and sleepless airport nights. READ MORE
In a Banner Year for VC, Women Still Struggle to Get Funding
Venture capitalists have broken records every quarter this year, pushing more money into the startup ecosystem with bigger and bigger deals. Amid this funding frenzy, some female-founded companies are raising “mega rounds,” including Tia Health ($100 million), Maven Clinic ($110 million), and Insitro ($400 million). Overall, startups with a woman founder raised $25 billion in the first half of 2021—more than the total amount raised by women any full year prior. READ MORE
Private equity’s push into accounting
More than a few eyebrows were raised in August when the news broke that TowerBrook Capital Partners had struck a deal to purchase an ownership interest in EisnerAmper LLP, the first such deal between a private-equity concern and a top 20 accounting firm. READ MORE
2021 VC-Backed Direct Listings Up
Going into 2021, I (and others) thought there would be a lot of direct listings this year.
Sure, SPACs were hot. But in late December, the Securities and Exchange Commission approved a proposal by the New York Stock Exchange that made direct listings seem a lot more attractive. They were already a cheaper alternative to an IPO and eliminated lockup periods, but now companies could raise capital through a direct listing as well. READ MORE
Is The SPAC Boom Fizzling Out?
SPACs may be fizzling out.
Since February 2021, when the SPAC (special-purpose acquisition company) craze was booming, a market selloff has wiped out about $75 billion of the value of companies that went public using SPACs, according to a Dow Jones Market Data analysis of figures from SPAC research. The analysis examined a group of 137 companies that went public using SPACs by mid-February this year. According to the analysis, these companies have lost 25 percent of their combined value since then. Over the same period, the Dow Jones Industrial gained 13 percent. READ MORE
VCs invested over $75B in AI startups in 2020
Investments in AI are growing at an accelerated pace, according to a new report from the Organization for Economic Cooperation and Development (OECD). The Paris, France-based group found that the U.S. and China lead the growing wave of funding, taking in a combined 81% of the total amount invested in AI startups last year, while the European Union and U.K. boosted their backing but lag substantially behind. READ MORE
What a community means in the modern world of startups
“We believe that a thriving community is a company’s most valuable asset,” Community-led writes in its Declaration. “Community scales your business, resources and presence in ways that traditional marketing or advertising channels can’t. When done right, community enables and improves customer acquisition, streamlines support and success, bolsters retention, and provides crucial product insights. Community is the beating heart of the business that keeps the rest of the team running.” READ MORE
What investors really look for when investing in a startup
While there are commonalities among their criteria, startup investors don’t take a cookie cutter approach. The key to unlocking investment is understanding the stage of your startup.
“In the race of life, always back self-interest; at least you know it’s trying,” the late former premier of NSW, Jack Lang, once said.
Self-interest is defined as “regard for one’s own interest or advantage, especially with disregard for others… personal interest or advantage”. READ MORE
Beyond VC: Financing technology entrepreneurship in the rest of America
Regions across the country, striving to foster dynamic, diverse growth, are launching initiatives aimed at supporting the scale up of the technology and advanced-economy companies that inordinately drive the economy.
Yet, technology startup formation remains heavily skewed toward Silicon Valley, New York City, and Boston. READ MORE
What you should know about working with corporate venture investment committees
With global corporate-venture-capital-backed (CVC) funding reaching $79 billion across 2,099 deals in the first half of 2021, according to CB Insights, the chances are high that startups will find great opportunities with this growing investor set. READ MORE
High-priced VC tech deals raise overheating fears
Venture capitalist are increasing the valuations they give to start-ups at the steepest rate in the past decade, stoking fears of overheating in the market for emerging technology companies. Private companies that get venture capital are seeing their valuations double with each round of funding, the biggest median increase since records began, according to PitchBook data. READ MORE
Startups have more options than ever to lower their reliance on venture capital
The capital market for startups has perhaps never been more attractive than it is today. Not only are venture capitalists raising more capital than ever, but new methods of financing startup activity are maturing. The result is a capital market that is increasingly competitive for startup attention, and business, which may lead to better prices for founders and their startups. READ MORE
Insights on the Venture Capital Investment Global Market to 2026
The global venture capital investment market reached a value of US$ 197.7 Billion in 2020. Looking forward, the market is expected to grow at a CAGR of around 16% during 2021-2026. Keeping in mind the uncertainties of COVID-19, the analyst is continuously tracking and evaluating the direct as well as the indirect influence of the pandemic on different end use industries. These insights are included in the report as a major market contributor. READ MORE
How to Write A Good Venture Capital Proposal
These days, banks are hesitant about lending large amounts of money to new companies. If you walk into a bank, there’s a pretty good chance that you’ll be refused.
So, what do you do if you need financing for a new project or business expansion? Well, you can seek venture capital, but it’s essential to think the decision through because this process demands focus, hard work, and, most importantly, perspective. At any rate, capital is offered in exchange for equity, generally a minority stake. Unless there are no red flags, you’ll receive much-needed funding in no time. READ MORE