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It’s a rare treat to peak behind the curtain and see how venture capital funds are performing for their investors.
Last year, Eric made a public records request to UTIMCO, the Texas public investment fund for the University of Texas and Texas A&M systems. He wrote about those returns here. READ MORE
Reddit, the message board site known for its chronically online userbase and for originating much internet discourse, filed for its long-anticipated initial public offering on Thursday.
The move would make Reddit the first major social media company to go public since Snapchat in 2017. And the offering will come with a twist that could allow some of the most fervent of its more than 70 million daily users to buy shares in the IPO — an opportunity typically reserved for institutional investors. READ MORE
As a founder going into a fundraising meeting, the best story you can tell is about growth — ideally exploding user figures with a credible path to revenue or exit.
If you haven’t figured out product-market fit yet, you need more time. Until you figure it out, it’s unlikely you’re going to be able to raise. The first place you should look is the place you have the most control: cash going out the door. READ MORE
Before the year started, we pontificated there might be a slowdown in venture dollars and for the first few weeks it was looking like that prediction might be borne out.
While the first half of January saw some nice-sized funding rounds for AI startups, extremely big rounds were nonexistent. In fact, there were no rounds of $100 million or more until the month’s waning days (both Rebellions.ai and Kore.ai announced big raises on Jan. 30). READ MORE
The venture capital (VC) sector is undergoing a transformative shift towards data-, analytics-, and AI-driven methodologies, profoundly altering the traditional paradigms of sourcing, evaluating, and managing startup investments. While not necessarily incipient, this movement, reminiscent of the algorithmic trading revolution that redefined public markets, is set to revolutionize venture capital. By 2025, data, analytics and AI expected to inform over 75% of VC deal analyses according to a report by Data-driven VC. READ MORE
Despite 2023 being labeled a “bloodbath” for venture capitalists, the industry remains optimistic with more than half of VCs reporting they plan to raise in the next 12 months. But to gain the confidence of LPs, VCs need to set themselves up for success beyond cash reserves. Although it takes a lot of time and energy, setting up an entrepreneur collective should be on a VC’s 2024 to-do list.
Obviously, a network of entrepreneurs offering mentorship to portfolio companies will give venture investors a better chance of success, but it’s also hugely advantageous to a fund’s reputation and financial standing. READ MORE
There are a variety of options; and which might work depends upon the circumstances. There are a number of issues to consider, such as the level of consent required to make changes to the structure. There are likely significant tax implications to consider for many routes.
The solutions that might work in one jurisdiction do not necessarily work in another jurisdiction. For example, in the US it is often easier to restructure an underwater MIP. This is because incentive equity is typically structured as profits interests, with no purchase price or taxation on issue. This makes it relatively easy to issue a new series with a threshold or hurdle at a new, lower value, resetting the economics and providing a continued incentive to management. READ MORE
Private equity firms are increasingly raising money to buy individual companies on a deal-by-deal basis, as they struggle with a downturn in the market and investors look for ways to cut management fees.
A record $31bn was deployed by “deal-by-deal” investors last year, according to data provided by private equity advisory firm Triago, defying a broader dealmaking and fundraising slump in the industry. READ MORE
In 2017, the #MeToo movement took down some of the most powerful men in entertainment, business and politics, as women everywhere emerged from the shadows to bravely share their stories. A few years later, the murder of George Floyd galvanized millions of people to organize and march for racial justice.
Amid the unrest was the hope that a change was going to come. It was this sense of hope that motivated me to quit my suit-and-tie job and take the reins at Chicago:Blend, a nonprofit founded by local venture capitalists to diversify the region’s VC and startup ecosystem. READ MORE
We’re a quarter of the way through the 2020s and for a lot of VCs and startups, it has been a period of intense ups and downs. The digital acceleration and sky-high valuations of the pandemic years were quickly replaced by the geopolitical unrest, economic uncertainty, and repricing, which has defined the last 18 to 24 months, and looks set to continue this year. Many VCs and founders have never experienced such a rapid shift, and it has sparked numerous challenges, as well as soul searching and a reassessment of how to build great businesses. READ MORE
Securing venture capital funding is a nuanced art form, critical to the success of any startup. The key to unlocking this gateway lies in identifying and engaging the right individuals within a venture capital (VC) firm. This article delves into the intricacies of venture capital hierarchies and offers strategic insights for founders aiming to navigate these waters with precision and effectiveness. READ MORE
DCM Ventures, a Silicon Valley venture capital firm, began investing in China’s start-ups in 1999. The move reaped such blockbuster returns that in 2021, DCM said it planned to “double down” on its strategy of investing in China, the United States and Japan.
Yet when DCM set out to raise money last fall for a new fund focused on very young companies and promoted its “cross-Pacific” expertise, the firm described plans to invest in the United States, Japan and South Korea, according to a fund-raising memo that was viewed by The New York Times.
China was not mentioned. READ MORE
For some rites of passage — such as learning to drive or casting a vote — the age when one may begin is clear.
For other stops on the path from youth to adulthood — like no longer ordering off the kids’ menu or trick-or-treating on Halloween — the delineation is fuzzier. One stops when it feels right. READ MORE
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
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
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
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
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
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 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