Deal-makers in January announced four transactions exceeding $10 billion for the second straight month, logging the highest worldwide total during a two-month period since the announcement of 11 large deals from April through May 2022, according to S&P Global Market Intelligence. READ MORE
Investors rank securing talent as top corporate priority in 2024
Corporate directors and institutional investors differ when identifying the priorities for 2024, with directors focusing most on the economy, capital allocation and cybersecurity/data privacy, according to Smith, director for EY’s Americas Center for Board Matters, Investor Outreach and Corporate Governance.
The directors ranked the issues of “talent agenda” and climate change/environmental stewardship fifth and last, respectively, EY found. READ MORE
5 Areas Where Seed Investors Are Most Active
Predicting the future — once the realm of crystal balls and tea leaves — is now a full-fledged profession. Hundreds of professional futurists now work in government, academia and other sectors, analyzing demographic, technological and climatic trends to envision what life will look like years from now.
Here at Crunchbase News, we have our own future-telling tool: Seed-funding data. By looking at today’s cohort of very young funded companies, we can piece together a sense of the technologies startup investors see most impacting our lives in future years. READ MORE
Lambda Leads Massive Week For Megadeals
Check the calendar — is it 2021 again? Sure seemed that way this week, as there were 10 rounds of $100 million or more raised by U.S.-based startups. That may not have happened since the early part of 2022 — if then. Not just that, but three rounds were for a quarter-billion dollars or more. Not exactly sure what was in the water this week, but AI and biotech led the way as happens often. READ MORE
SEC Proposes to Modify Section 3(c)(1) Investment Company Act Exemption for Certain Private Funds
On February 14, 2024, the U.S. Securities and Exchange Commission (the SEC) proposed a rule (the Proposal) that would increase the threshold for what is considered a “qualifying venture capital fund” from $10 million to $12 million. READ MORE
"Be like Madonna": Venture capital enters its "dinosaur" era
For venture capital, AI is expected to be the next great source of opulent investment returns. For many venture capitalists, however, AI could be an extinction event.
The big picture: Most of today's top VCs are, almost by definition, legacy investors. They made their bones on the last major tech platform shifts, mobile and cloud. READ MORE
The new realism in venture capital is healthy
The stampede of new Silicon Valley unicorns emerging into the world has thinned into a straggling herd.
Venture capital firm Cowboy Ventures recently reported that of 532 US start-ups with billion-dollar-plus valuations in 2023, 60 per cent were what it dubbed “Zirpicorns” — companies last priced between January 2020 and March 2022 when zero-interest rate policies propped up valuations. READ MORE
Deep Tech Investments Down, But Maybe Not As Much As You Think
The venture market was down 38% last year as investors continued to reel back their funding with money becoming more expensive and liquidity options drying up.
In such an environment, most would think the tech sector most greatly affected by the pullback would be deep tech — casually defined as cutting-edge scientific innovation that can create brand-new industries. With its cash-intensive research and long product-to-market lead time, it usually is not attractive to investors in a down market where cash is king. READ MORE
Startups Roll Out More Services For Growing Ranks Of Self-Employed And Gig Workers
Whether by choice or necessity, the share of workers who are self-employed or toiling in the gig economy continues to grow. And with it, tools to manage all the attendant accounting and job-finding burdens have been scaling up too.
Startups are taking a leading role. Over the past few quarters, venture investors have poured hundreds of millions into companies with offerings aimed at freelance and gig workers. Top focus areas include platforms for finding work, accounting tools and apps tailored for specific industries. READ MORE
AI Leads New Unicorn Creation As Ranks Of $1B Startups Swells
Fewer startups became unicorns in 2023, but The Crunchbase Unicorn Board also became more crowded, as exits became even scarcer.
That means that 10 years after the term “unicorn” was coined to denote those private startups valued at $1 billion or more, there are over 1,500 current unicorn companies globally, collectively valued at more than $5 trillion based on their most recent valuations from funding deals. READ MORE
Why Entrepreneurs Need To Reset Their Expectations In 2024
Entrepreneurship is in a perilous place.
Last year has been described as the most difficult year for startups in a decade and the 2024 outlook isn’t much better. Despite slowing inflation and planned rate cuts, experts predict continued economic uncertainty. READ MORE
Investors Swipe Right On Some Dating Startups, But Don’t Make Big Commitments
Investing in dating startups is a lot like dating itself.
Despite the likelihood that most won’t go anywhere, investors still back a lot of these companies. This is because they still believe that, once in a while, something transformative will come from it. READ MORE
SEC Adopts Amendments to the SPAC and de-SPAC Disclosure and Investor Protection Rules
On March 30, 2022, the Securities and Exchange Commission (SEC) proposed amendments to the rules governing disclosures and investor protections in initial public offerings (IPOs) by special purpose acquisition companies (SPACs) and in subsequent business combination transactions between SPACs and target companies (de-SPAC transactions). On January 24, 2024, the SEC considered and adopted the proposed amendments to the enhanced SPAC and de-SPAC disclosures. READ MORE
Trump-Linked SPAC Digital World Manages To Attract Critical Funding by Offering Extremely Generous Terms
After formally losing every cent of the original $1 billion in PIPE investments, the Special Purpose Acquisition Company (SPAC) Digital World - which still intends to merge with Truth Social's parent entity, Trump Media and Technology Group (TMTG) - appears to have secured a critical financial lifeline as it continues to navigate the messy labyrinth of its still-pending business combination. READ MORE
Will the Institutional Private Equity Push Leave Investors With Scraps?
Private equity wants to attract a new kind of limited partner: the high-net-worth investor.
As the industry deepens its foothold in products for traditional wealth management clients, participants have flagged potential byproducts of the trend, including the risk of cherry-picking. READ MORE
Private Equity Highlights and 2024 Outlook
A year of rising interest rates and slower growth has proved challenging for the private equity industry. Yet, despite a decline in fundraising and dealmaking coupled with debt becoming costlier and scarcer, successful PE firms are finding a way. Learn what dealmakers need to know as they harvest their holdings and kickstart capital raising to sustain their investment cycles into 2024. READ MORE
What Boards of Public Companies Can Learn from Private Equity
Public company boards have made quite a few upgrades over the past decade. They have become far more diverse, more focused on risk management, and more attentive to the environmental impacts of the companies they oversee.
But in other ways, public company boards still look eerily similar to what they looked like 50 years ago, when modern governance rules were first enacted after the high-profile collapse of Penn Central. Directors basically still show up to board meetings once a quarter to approve the strategy, discuss risks, and once every five years or so, select the next chief executive officer. READ MORE
VC continues to be an incredibly investor-friendly market
Toward the end of 2023, there seemed to be a palpable increase in the outlook for the venture market.
Public small caps had a strong Q4, the US economy continued to drive job growth, and consumer sentiment finished the year at a high since July—and higher than any other point since 2021.
Startup valuations felt this boost, too. READ MORE
3 Ways to Start, Grow, and Sell a Company Without Venture Capital
It is very, very, very difficult to raise venture capital investment for your startup. Especially right now. In fact, one of my investor friends just told Axios that this is the worst startup investment environment he's seen since the Great Recession.
Woof. I'm guessing that like 90 percent of you don't remember that period. It was no fun.
Fine. That's OK. As a career entrepreneur, I wear the customer-first badge. Proudly. I strongly believe raising money through customer sales is the best option, and in a lot of cases, it should be the only option. READ MORE
We forgive? WeWork collapsed but investors are once again embracing Adam Neumann
The venture capital market loves Adam Neumann, there seems to be little doubt about that. On the other hand, among the general public he has a reputation of someone it is better to avoid doing business with. He may be a great marketer who builds excellent brands and convinces investors to attribute high value to his ventures. However, he is also a reminder for a sector of how one should beware of grandiose stories, cosmic promises and the burning cash that end in massive collapses (not his). Now Neumann wants us to learn another lesson: in fact, everything pays off. READ MORE