Venture capital vs pre-IPO investment: Which is the better investment strategy?

There are many different types of investment opportunities available to the average investor. Among them, venture capital and pre-IPO investments are both highly sought after because they offer a chance for massive returns on the initial investment. Many startups have raised massive rounds of venture capital funding. And yet, the number of IPOs is at a ten-year low. READ MORE

These Are Some Of The Biggest TikTok Stars Who Have Pivoted To Venture Capital

Influencers don’t just make money from brand deals these days. A growing number are investing in startups, both individually and by starting their own venture capital firms. The trend of traditional celebrities, like Jay-Z or Ashton Kutcher, investing in startups has been happening for years, but it’s only more recently that social media stars have been embracing VC investing.  READ MORE

VC firm becomes one of the first to establish Polkadot Ecosystem Fund

Web 3.0 presents a new future for the internet, giving the world access to the decentralized version of the virtual world. With blockchain technology, this web evolution will provide a more user-centric environment, thereby eliminating the power currently held by corporations. By giving the control back to those engaging in online interactions, data monetization will be minimized, personal details will be protected, and trust will begin to replenish. READ MORE

VC investments in crypto surge five-fold in a year as money pours into Web3 era

As the interest in cryptocurrencies and blockchain increases, so do the investments in the space from venture capitalists, which have soared as much as five times over the course of a single year.

Specifically, the money invested through crypto and blockchain venture capital deals had increased from below $2 billion in the last quarter of 2020, to more than $10 billion in the same period in 2021, marking a nearly 500% increase year-over-year (YoY). READ MORE

New data shows how far VCs are pulling back on valuations

The venture capital market is retreating somewhat from its aggressive 2021 pace, new data indicates.

According to data collected by Carta, a unicorn startup that provides equity management and other services to private companies, round sizes from the Series A to C stages in the United States are in decline, while valuations attached to those deals are also falling. For investors hunting for a deal, the pricing reprieve may be welcome. For founders hunting up their next capital tranche, the news could prove less desirable. READ MORE

After Record Venture Boom, It’s Suddenly A ‘Mad Rush To Grab Capital’

Fundraising for a startup now is quite different than it was even six months ago.

While 2021 was a record year for venture investment, a perfect storm of inflation worries, turbulent public markets and geopolitical disruption have prompted more VCs and their limited partners to become skittish, making fundraising difficult for some startup founders. Early Crunchbase data shows that global venture funding in February dipped $10 billion month over month, though is still up significantly year on year.  READ MORE

Silicon Valley tries to disentangle itself from Russian money

Fort Ross Ventures looks like a typical venture capital firm. It was created about seven years ago in Silicon Valley with a focus on funding young companies. The founders named it after the first Russian settlement in the US, a nod to their heritage and to one of the firm’s largest backers, Moscow-based Sberbank PJSC.

Today, Russia is waging an unpopular war against Ukraine, and Sberbank is subject to crippling sanctions by Western nations. The other investors whose money is tied up in Fort Ross Ventures are, naturally, “very concerned,” said Victor Orlovski, a founder and managing partner at the firm. READ MORE

SPACs: Can They Truly Benefit Entrepreneurs?

Special purpose acquisition companies (SPACs) have been making headlines among business leaders and in the financial world ever since several high-profile IPOs were achieved with their assistance. Some of the most anticipated IPOs of the last two years have been facilitated by SPACs, including the stock market debuts of Virgin Galactic Holding, Nikola Corporation, Opendoor Technologies Inc., DraftKings Inc. and BuzzFeed. READ MORE

SEC slaps VC firm for misleading investors on fees

Alumni Ventures Group is the latest private investment firm to get in trouble for saying one thing and doing another, when it comes to the fees it charges to limited partners.

Driving the news: The SEC found that AVG told LPs in marketing materials that they would be charged the "industry standard" of 2% management fees and 20% carried interest. But, rather than charging the management fees on an annual basis, as is industry standard, AVG charged 20% upfront (i.e., 2% times 10 years). READ MORE

VC and PE share health tech sandbox

With access to public markets shut down and a resetting of valuations in digital health and tech-enabled health care, expect more private equity and venture capitalists to team up on the M&A front, panelists at HPE Miami 2022 say.

What they’re saying: “The next 12 to 18 months will see a massive level of consolidation,” one panelist says, speculating that every SPAC public company will have an activist over the next 12 months. "It’s only a matter of time.” READ MORE