More Venture Capital Funding in 2022 Should Boost Bitcoin

More institutional investor money in 2022 will help boost bitcoin’s price, especially with more venture capital funding in the new year.

According to a Bloomberg article, venture capital money flowed into cryptocurrencies to the tune of $30 billion, which topples all previous years. More interest from venture capital money came while bitcoin’s all-time high was spurred by a bitcoin futures exchange traded fund (ETF) finally hitting the U.S. markets in October. READ MORE

While SPAC Deals Commonly Floundered, Here Are Some That Did Better

In general, buying shares of venture-backed companies that took the SPAC route to public markets has not been a great bet, as we explored earlier this week.

However, it would be misguided to walk away with the impression that everyone taking the SPAC path fared poorly. This year, shares of several newly public companies are doing quite well, with a few seeing shares rise several-fold. READ MORE

Don’t Expect A Slowdown After Record-Setting Year For Cybersecurity

Even though this year was unlike any other for cybersecurity—with more than $20 billion invested into the sector—2022 may very well build off that momentum, according to many in the industry.

While this year was driven to new heights by several sectors like cloud, API security, health care IT and insurance, next year should see a continuation of several of those trends, and some newer ones that started to emerge in the later half of 2021. READ MORE

Record Number Of VC-Backed Cyber Companies Acquired in 2021

Even in a year where few cybersecurity startups had problems raising money, a record number of venture-backed companies also saw exits through acquisition in 2021.

According to Crunchbase numbers, 129 venture-backed companies were acquired by private equity or strategics this year—shattering last year’s record 79 deals. Those deals were consummated even as more than $20 billion was poured into cybersecurity startups by venture and institutional investors. READ MORE

How, When and Why to Approach a VC for Funding

In the business world, there is a slight but important distinction in the terms incubator and accelerator. The terms are often used interchangeably, but technically, an incubator is for earlier-stage startups, and the term accelerator pertains to existing companies that desire to accelerate growth. Incubators and accelerators assist business leaders in the quest for success, including how to raise capital, which often involves connecting with VC (Venture Capitalist). READ MORE

Venture Capital Isn’t Slowing Down in 2022

Venture capital has grown exponentially over the past decade, and it’s not showing any signs that it’ll be slowing down in 2022. 

In 2021 alone, VC mega-deal activity reached a total deal count of 784 and generated a cumulative deal value of $182.4 billion — a record high, according to a PitchBook analyst note published this week. In 2011, the deal count was at 46 and the total deal value was only $10.4 billion. READ MORE 

2022 Private Equity Compensation Report Shows Continued Upward Trends

The 2022 Private Equity and Venture Capital Compensation Report shows that private equity and venture capital compensation is up again this year, marking the eighth straight year of compensation gains.

The percentage of respondents earning $150,000 and below has continued to decline and those earning from $151,000 to $1 million increased to 80 percent of respondents. This is the highest percentage of private equity and venture capital professionals reporting earnings more than $150,000 in annual compensation in the history of this report. READ MORE

Rising costs and extra fees facing PE investors

Private equity has long been among the most expensive asset classes for investors, and it’s not getting any cheaper.

The costs of forming private-equity funds are rising and investors are also being asked to foot the bill for certain expenses that historically were covered by fund managers, according to a recent report from the Institutional Limited Partners Association, a trade organization for investors in private-markets funds. READ MORE

What The Change At Sequoia Could Mean For The VC Industry

Sequoia, one of the most illustrious venture capital firms, recently announced a momentous change to how they structure their fund(s) and their business. Some claim that “Sequoia Capital will no longer be a venture capital firm,” others claim that it is “blowing up the VC fund structure,” and of course no 21st-century reporting is complete without that tired but ubiquitous metaphor of the “game changer.” These effusive reports are right for the wrong reason. READ MORE

More venture capitalists are hatching startups

Venture capitalists are known for spotting and investing in promising upstarts, but an alternative approach is growing in popularity: incubating.

Why it matters: With startup investments pricier and competition stiffer, some investors are setting up startup studios or incubating companies — a trend that's expected to continue accelerating.

The big picture: The recent public listings of companies like Snowflake and Hims have put incubation and startup studios back in the spotlight. READ MORE