Considerations for VC Managers to Build a Robust Business in 2022

In 2021, U.S. venture capital funds raised a record $128.3 billion across 730 funds eclipsing the 2020 record of $86.9 billion by a staggering 47.5%. This was matched by a record-breaking year for VC-backed companies exiting with approximately $774.1 billion in exit value through public listings or acquisitions, a whopping 168% increase over 2020.

Few expected 2022 to match this growth. The first quarter of 2022 has seen volatile market conditions across nearly all sectors, including venture capital. The unexpected war in Ukraine continues and interest rates have finally been hiked, resulting in less readily available capital. READ MORE

What We Learned From A Year Closely Covering Diversity In The Startup Ecosystem

A year ago, Crunchbase News set out to more closely cover diversity—or lack thereof—in the startup world. Though much has been reported on the dismal state of venture funding to underrepresented founders, we felt we had a unique vantage point on the issue, with our access to Crunchbase’s Diversity Spotlight data and our frequent coverage of the issues facing early-stage entrepreneurs. READ MORE

Don’t worry about VCs’ returns if you can exit your startup early

If you’ve been watching the recent wave of shows on disgraced startups (from Theranos to WeWork), you might be under the impression that startup founders have no sense of responsibility.

In my experience, however, the opposite is much more common: Entrepreneurs tend to feel guilty about things that are just part of startup life. For instance, many founders feel quite badly about merely admitting that they wouldn’t say “no” to a good enough acquisition offer, or telling their investors they’d do so. READ MORE

Late-stage VC investment lags despite record deal count

Stock market declines are dampening enthusiasm for supersized startup deals, but elsewhere in the late-stage market, investors are finding plenty to get excited about.

US VC-backed companies at the late stage collected $44.1 billion in Q1, representing a 27% decline from the previous quarter, according to the latest PitchBook-NVCA Venture Monitor. That's despite one of the highest quarters ever for completed late-stage deals, according to a PitchBook estimate. READ MORE

Equitable Equity

When Winnetka native Lauren Hamlin received her MBA from the University of Chicago Booth School of Business in 2014, she was one of only two women in a class of 800 graduates to go into private equity. For Hamlin, now a principal at Merit Capital Partners, the lopsided numbers had to be taken in stride as she rose to the myriad challenges of her work. READ MORE

US micro-funds play to their strengths in 2021

Micro-funds—venture investment vehicles that raise $50 million or less—collected nearly $5 billion across a record 339 US funds in 2021, according to PitchBook data.

These funds offer unique benefits to the VC industry that cannot be easily replicated by larger funds—such as enabling firms to take risks on young companies operating pre-product and diversify their portfolios on both a geographic and sector basis. READ MORE

The Power Of Diversity, Equity, And Inclusion To Improve Risk-Adjusted Returns In Private Equity

Assets managed by diverse-owned firms have only increased by a tenth of a percentage point to 1.4% of the $82.2 trillion US asset management industry since 2011 despite extensive investor commitments to increase the diversity of their investment portfolios. Clear research on the performance, risk and financial diversification benefits of diverse managers is necessary for further progress. READ MORE

A ‘don’t do list’ for founders: VC shares tips for startup leaders

There are a lot of guides and blog posts for founders that provide advice on what to do as a leader of an early-stage startup. But not as many highlight what not to do in those initial days building the next great unicorn.

Kirby Winfield, a Seattle venture capitalist who runs Ascend.vc, on Tuesday publicly shared a “don’t do list” that he originally sent to a founding team that asked for one. READ MORE

The corporate venture comeback: What startups considering CVC need to know

Corporate venture capital investments (CVCs) now represent more than a fifth of global venture. The bigger slice of the funding pie comes as founders have to navigate a more uncertain capital landscape. Amid the Ukrainian conflict and rising inflation — with many investors being more cautious with their dollars — startups are welcoming the longer-term stability that corporates can offer. READ MORE

‘Cash Is King’ As VC Spigot Slows

A year ago, startup founders often found themselves fought over by venture investors eager to grab a piece of any promising young company with fast growth potential. Investors competed in an increasingly heated environment in which they were often under pressure to close outsized deals in a matter of days. All told, venture capitalists spent a record $643 billion in 2021, almost double what they had the year before. READ MORE

Truly Terrible SPAC Performers Explore Lower Lows In 2022

Reviewing aftermarket performance of venture-backed companies that went public via SPAC lately feels a lot like watching one of those documentaries exploring the Mariana Trench.

Just when you think they’ve reached bottom, there are further depths in which to descend. Finally, there looms the darkest sea floor of the lowest point on earth, populated by little more than  translucent sea cucumbers and bioluminescent jellyfish. At the rate things are going, there may be a few SPAC deals floating around as well. READ MORE

The venture slowdown is impacting fundraising for startups of every size, sector

The comedown from venture capital’s torrid 2021 is sparing few startups.

New data from Carta, a provider of shareholder management services to private companies, indicates that the slowdown in venture capital activity is not constrained to a single stage or sector. Instead, aggregated information detailing a host of Q1 2022 data points from Carta’s Head of Insights, Peter Walker, indicates that even less mature startups will not prove immune from a retreat in private market investment. READ MORE