Evan Vitale

Accounting Professional

Evan Vitale – VC Sentiment Surges in 3Q

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By Evan Vitale

What’s new in the fast-paced world of venture capital? Here are some recent headlines making news.

During the third quarter 2016, venture capital sentiment surges as tech IPOs pop, so says an online article by CNBC.

Start-up investors showed a jolt of optimism in the third quarter, thanks to some initial public offerings (IPOs), after a first half with none.

Confidence among venture investors jumped 8 percent in the period, the biggest increase since the first quarter of 2012, according to the Silicon Valley Venture Capitalist Confidence Index. Based on a 5-point scale, confidence rose to 3.88, from 3.6 in the second quarter, the report said.

The survey of 32 venture capitalists by Mark Cannice, a professor at the University of San Francisco School of Management, showed that while exit activity is still historically slow, there are reasons to be excited heading into the new year.

You are read the entire article here: http://cnb.cx/2e4XxEh

The Michigan Venture Capital Association recognized top tech innovators at its annual dinner recently.

Millendo Therapeutics, Fontinalis Partners and RetroSense Therapeutics were the top honorees Wednesday at the Michigan Venture Capital Association‘s 2016 Awards Dinner.

Ann Arbor-based Millendo Therapeutics works on finding drugs to improve the quality of life for patients with endocrine diseases. It won the Capital Event of the Year Award as the state’s largest health care deal in 2016 and largest venture capital financing round in the state.

The full article is here: http://bit.ly/2fHgb5K

In Cincinnati, Everything But The House has landed $41.5 million in its latest round of venture capital fundraising. EBTH’s “Series C” round of investment is expected to help the Downtown Cincinnati-based company grow its operations, build out technology platforms and expand its team nationally. Maryland-based Greenspring Associates led the latest round of investment in EBTH with participation from Greycroft Partners and Spark Capital.

Check out the article here for more details: http://cin.ci/2feMZ5x

Evan Vitale – Kobe Bryant Now A VC

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By Evan Vitale

What’s new in the world of venture capital news?

According to The Wall Street Journal, former Los Angeles Laker Kobe Bryant is now a venture capitalist with a goal of emphasizing team building and long shots.

Bryant sees parallels between his hall-of-fame basketball career and his new role as a venture capitalist.

Failure—the frequent outcome for early stage investment—is something Mr. Bryant learned about on the court, the former NBA star said at the WSJDLive conference in Laguna Beach, Calif. Early in his career, Mr. Bryant recalled, he shot five straight air balls in the playoffs.

You can read the full article here: http://on.wsj.com/2dVd47Z

Meanwhile, Pacific Business news is reporting that Ronald Bernal, a venture partner at Menlo Park, California-based New Enterprise Associates, and his wife, Pamela, have acquired a Hawaii estate for $5 million.

The 5,834-square-foot, four-bedroom, five-and-a-half-bathroom home sits on 1.2 acres in Hanalei on Kauai’s North Shore. The details are here: http://bit.ly/2dZYNXT

Everyone wants to know “what’s the next big thing for venture capital” and Investopedia has offered some ideas, suggestions and predictions in a recent article.

The top 10 industry verticals in terms of capital invested so far in 2016 are: mobile ($14.4 billion), SaaS ($13.4 billion), E-commerce ($8.7 billion), LOHAS (Lifestyles of Health and Sustainability, or green living & technology; $7.5 billion), life sciences ($6.8 billion), big data ($3.8 billion), oncology ($3.5 billion), Fintech ($3.4 billion), manufacturing ($2.4 billion) and cybersecurity ($2.2 billion).

Check out the full article here: http://bit.ly/2eJmWD5

Forbes has published an article on how to find money when most venture capital is flowing to fewer, bigger and later-stage financing.

Here, according to contributing writer, Todd Hixon, the venture capital industry is experiencing concentration of winners, like the rest of the economy. This drives how venture capitalists (“VCs”) make decisions. Entrepreneurs seeking money need to understand this behavior to craft their financing strategies.

The full article is available here: http://bit.ly/2eURA8T

Evan Vitale – VCs in Life Insurance Biz

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By Evan Vitale

What’s new in the wild world of venture capital this week?

Venture capital is now “prowling” into the life insurance business, reports The Wall Street Journal.

In an article published on Thursday, Oct. 20, Ladder Financial Inc., a Silicon Valley startup that offers term-life-insurance policies for California residents, said Wednesday it raised $14 million in a new fundraising round led by Canaan Partners. The venture-capital firm was one of the first outside investors in LendingClub Corp. , a pioneer in financial technology.

Insurance is becoming a fashionable bet. Competition in online lending has become more intense, and investors have become more skeptical of loan quality. More venture capitalists now are looking at new companies that want to displace the insurance agent, rather than the loan officer.

You can read the full story here: http://on.wsj.com/2dOhoUj

The Jerusalem Post is reporting that KamaTech, a startup incubator organization for ultra-Orthodox Israelis, has launched a venture capital fund dedicated exclusively to entrepreneurs and start-ups from the haredi community in a seasonally appropriate setting – a succa.

Called 12 Angels, the new fund has amassed $5 million from some of the most prominent Israeli investors in the hi-tech sector, including Chemi Peres, co-founder of Pitango Venture Capital; Adi Soffer Teeni, general manager of Facebook Israel; and Dov Moran, whose company invented the USB flash drive.

The full story is here: http://bit.ly/2dCaGTE

KCRise Fund, a new Kansas City-based venture capital fund that piggybacks on other investor funding, has announced investments in SpiderOak and Innara Health, so says a recently-published article in The Kansas City Star.

SpiderOak, an online data security company based in Mission, and Innara Health, a developer of neonatal medical products based in Olathe, are the fund’s first recipients.

You can read the full article here: http://bit.ly/2enjECs

Evan Vitale – VC News Update!

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By Evan Vitale

Here are some of the venture capital stories that are making headlines this week!

Venture capital funding has hit a two-year low and venture capitalists are playing it “safe” this year, so says a report released by cnet.com.

After the heady days of 2015, when a whopping 25 companies were valued at a billion dollars or more between July and September alone, VC financing is resetting the pace, according to Venture Pulse, a report released Thursday. The report was compiled by CB Insights, which watches the VC market, and KPMG International, a consultancy.

Read the full story here: http://cnet.co/2dZ5h7S

Meanwhile, GeekWire shared some of the same news in that venture capital mega-deals have dropped by 53% during the third quarter 2016.

Globally, investments declined 14 percent compared to the third quarter as fewer companies raised “mega-deals” of $100 million or more. There were just 34 deals of $100 million or more during the third quarter, compared to 73 deals of that size in the third quarter of 2015.

Total funding came in at $24.1 billion for the third quarter, the lowest tally in two years.

Check out the story here: http://bit.ly/2dLZRyH

And, venturebeat.com has shared the same gloomy sentiments reporting that VC funding has hit a two-year low and has dropped 18% to $14.4 billion in North America as “unicorns” retreat.

At long last, venture capital’s long-awaited return to normalcy appears to be happening. VC funding for the third quarter of 2016 slid for nearly every key metric: a smaller number deals, less total funding, fewer +$100 million mega-rounds, and just 8 unicorns created. And that was globally. For North America, generally, and California, specifically, venture activity was subdued compared to the most quarters, but still quite healthy. Some might even call this as a return to capital efficiency.

“It’s worth noting that a bit of sobriety is a good thing. 2015 funding levels were irrationally high with a new unicorn being birthed every 3rd day as investors were keen to force-feed perceived startup winners with cash. That was not sustainable,” wrote Anand Sanwal, CEO of CB Insights, in Venture Pulse, a quarterly report published by KPMG International and CB Insights which was released today.

Read more here: http://bit.ly/2ea5iV2

Evan Vitale – Venture Capital News Update!

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By Evan Vitale

As I write this, a hurricane is bearing down on the Bahamas; Florida and Georgia and who know where “Matthew” will go from there. There’s a rush on supplies; bottled water; generators and gasoline for those who are evacuating. Stay safe everyone in the path of this storm!

Meanwhile, here are the stories making headlines in the world of venture capital:

TechCrunch is reporting that Fenox Venture Capital is putting India funds on hold after its General Partner Venktesh Shukla departed.  This occurred after a recently appointed general was hired to lead the fund.

Shukla did not offer much detail, but in an email to TechCrunch said, “I was initially tempted by the opportunity to work with the fund in India but changed my mind. [I’ve] decided to build my own early-stage fund focused on Silicon Valley innovation.”

Shukla’s early-stage fund is called Monta Vista Capital.

Read the details here: http://tcrn.ch/2dKg19o

In Detroit, Crain’s is reporting venture capital activity experienced a sharp increase in Michigan during third quarter.

According to the Washington D.C.-based National Venture Capital Association and PitchBook, a VC database, $118.8 million was invested in 18 deals in Michigan during the third quarter – up from $58 million in the second quarter and $48.8 million in the first quarter.

Michigan ranks 17th nationally in VC deals in the third quarter.

The full story is here: http://bit.ly/2duIRzw

Payoneer has raised $180 million in venture capital funding, as reported by Financial Times. This makes the Israeli-turned-US cross-border payments provider the subject of one of the biggest funding rounds by a financial technology company this year.

The company was founded in 2005 by Yuval Tal, a former Israeli special forces officer, who is its president. It has its headquarters in New York, a large research centre in Tel Aviv and has clients in more than 200 countries, including many of the biggest internet marketplaces such as Amazon, Airbnb, Google, Getty Images and UpWork.

Check out the story here: http://bit.ly/2cUsyu6

Evan Vitale – Venture Capital Headlines!

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By Evan Vitale

Here’s review of the stories that are making headlines in the world of venture capital!

There’s a great article published by The Atlantic on what it’s like to be a woman in Venture Capital.

The article spotlights entrepreneur and venture partner Ann Crady Weiss. Without giving away too many details here, go ahead and read the full article here: http://theatln.tc/2doTtzu

According to Bloomberg.com, venture capitalists may be storing up supplies for winter. With VC fundraising on track for its best year since the dot.com era (remember?), some investors say there’s a rush to raise cash before it disappears.

Check out the article here: http://bloom.bg/2dfIClZ

Meanwhile, at Investopedia.com, venture capital funds raised $22.9 billion during the first six months compared to $28.2 billion during all of 2015. The pace was especially brisk in the first quarter of 2016, with about $13.0 billion raised. Large investors have been attracted by a 10-year average annual rate of return of more than 4 percentage points above that produced by the S&P 500, according to the Wall Street Journal.

Investors are pouring money into venture capital firms that focus on leading sectors. In 2015, 36.2% of venture capital funds went into software. For biotechnology, it was 17.3%; media and entertainment, 9.5%; medical devices and equipment, 7.1%; and information technology services, 6.0%.

Read the rest of the article here: http://bit.ly/2dtOQ2q

Flexport, according to the Wall Street Journal, has raised $65 million in venture capital funding for an expansion. Flexport, based in San Francisco, arranges international freight shipments for small-and midsize companies.

The new funding round, from a group of investors that include Founders Fund, Bloomberg Beta and Felicis Ventures, brings the company’s total capital raised to $94 million. Trae Stephens, a principal at Founders Fund, which was co-founded by Silicon Valley billionaire Peter Thiel, will join Flexport’s board.

Find the full article here: http://on.wsj.com/2cz6uoT

Evan Vitale – China, Women, VC News!

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By Evan Vitale

Here are some of the venture capital stories and events making headlines recently.

Bloomberg is reporting that China is calling for more government financing in venture capital.

China’s government is developing a bigger appetite for venture capital.

The country’s powerful State Council is encouraging more government agencies and companies to funnel money into private startups while getting the state to take part in the nation’s technology boom. In a new document published on its website Tuesday, the country’s cabinet urged government-led funds to play a greater role in guiding venture capital investment, while promising to level the playing field for foreign VCs.

The full story is here: http://bloom.bg/2cINSDQ

Speaking of China, women there have launched more than half of all new Internet companies there.

The largest venture capital fund ever raised by a woman isn’t in Silicon Valley or even the U.S. It’s in Beijing and is run by a former librarian who keeps such a low profile that she’s a mystery in her native China. Chen Xiaohong rarely attends industry conferences or events. She hadn’t given a media interview in more than a decade until agreeing to break her silence this summer. “I don’t like being part of a club,” said Chen during a four-hour discussion at her firm’s headquarters. “I believe in staying independent, making your own decisions.”

The story, also by Bloomberg, is here: http://bloom.bg/2cZcvbV

And, speaking of women, the “Women Who Fund Forum” in Ann Arbor, Michigan, is designed to connect those who want to break into the venture capital and private equity investing field.

The second annual Women Who Fund Forum next week will showcase and connect women who are breaking through the gender barrier of the traditional male strongholds of venture capital and private equity investing.

The program is 11 a.m. -4 p.m. Sept. 29 at the Graduate hotel in Ann Arbor. The keynote speaker will be Margaret Gibson, a partner in the Chicago-based law firm of Kirkland & Ellis LLP.

Check out the details here: http://bit.ly/2clQYaX

Evan Vitale – Venture Capital News!

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By Evan Vitale

Did you survive a full, five-day work-week after the short holiday week? Well, things definitely picked up in the world of venture capital. Here are some of the stories that are making headlines:

Inc.com released an interesting piece on Philz Coffee, a popular and beloved institution in San Francisco. Once a family-owned business, Philz has grown into a fast-growing medium-sized business and is in the midst of a national expansion.

So, Inc. wants to know why the company announced recently that it has rained $45 million as part of a round of venture capital funding.

The full story is here: http://on.inc.com/2cONE9H

In another piece by Inc. (they were busy covering venture capital news), they uncover how a millennial-run venture capital firm is unraveling.

Rothenberg Ventures has been the talk of Silicon Valley over the last two weeks, as the small venture-capital firm led by charismatic 32-year-old Mike Rothenberg has essentially imploded.

Jessi Hempel and Lauren Smiley have the story over at Backchannel, and Business Insider has learned some additional details from a letter sent to the firm’s limited-partner investors on Tuesday morning.

The firm, which had had about $50 million under management, has run out of operating money, and all its employees except its lawyer were on unpaid leave as of mid-August, according to the Backchannel report.

The full story is here: http://on.inc.com/2cNMonl

According to Business Insider, startups are about to receive a billion dollar influx from one of the biggest software companies in the world.

Venture capital firm Sapphire Ventures, which is solely funded by enterprise tech giant SAP, has closed a $1 billion fund to invest in technology startups, becoming the latest investment firm to join a record-breaking clip of venture fundraising.

Sapphire has backed high-profile startups such as Square, Box, and Fitbit and plans to use the new fund to invest in growth-stage technology startups, the firm said on Wednesday.

You can read the rest of the piece here: http://read.bi/2d2hrPu

Evan Vitale – VC News Update!

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By Evan Vitale

It was a short week due to the holiday, but there were a few stories that were making the rounds in the world of venture capital recently.

According to the Cincinnati Business Courier, a Cleveland venture capital firm has made two big investments in Cincinnati startup companies, with several more on the way.

JumpStart just closed its $20 million NEXT Fund. It has already made eight investments out of that fund, including two in Greater Cincinnati, after holding a first close of the fund a little more than a year ago. It didn’t announce any of those deals until now. Its first two Cincinnati investments were in tech startups Lisnr and Enosix.

The full story is here: http://bit.ly/2c0DPXy

An interesting piece in The Wall Street Journal focuses on venture capital firm In-Q-Tel Inc. Have you heard of it? The VC firm in Virginia is funded by the Central Intelligence Agency. Yes, the CIA. Yes, THAT CIA.

Forterra Systems Inc., a California startup focused on virtual reality, was in need of money and its products didn’t have much commercial appeal. Then funds came in from a source based far from Silicon Valley: In-Q-Tel Inc., a venture-capital firm in Virginia funded by the Central Intelligence Agency.

One catalyst for the 2007 infusion, according to a former Forterra executive and others familiar with it, was a recommendation by a man who sat on the board of the venture-capital firm—and also on the board of Forterra.

In-Q-Tel pumped in cash, Forterra developed some tools useful to the military, and government contracts started coming in.

Read the rest of the storm here: http://on.wsj.com/2c9nvSY

Evan Vitale – VC Headlines!

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By Evan Vitale

Let’s take a look at what stories are making the top headlines recently in the world of venture capital!

The Wall Street Journal reports that a rare look at startup investors’ performance shows Andreesseen Horowitz lags Sequoia, Benchmark, and Founders Fund.

Andreessen Horowitz’s first three venture funds have nearly doubled their investment capital or better since inception, according to documents reviewed by The Wall Street Journal that provide a rare look at the performance of one of Silicon Valley’s top venture-capital firms.

The firm, co-founded by web pioneer Marc Andreessen in 2009, is routinely mentioned among the pantheon of great startup investors along with the likes of Sequoia Capital—a status that has allowed it to command higher fees than some of its rivals.

But an analysis of its performance, compared with funds from top firms and industry averages, shows that Andreessen Horowitz hasn’t yet earned that reputation.

You can see the entire story here: http://on.wsj.com/2bVlA7V

In Indiana, the Indianapolis Business Journal is reporting that venture capital firm Hyde Park Ventures has finished raising money for a new $65 million fund. This is the second fund for the Chicago-based firm, which was founded in 2011 and established an outpost in Indianapolis in early 2015.

Hyde Park raised $25 million for its first fund. IBJ reported in January that it was raising $60 million for Fund II, but officials couldn’t comment at the time.

“We’re super excited about it,” Tim Kopp, who leads the local office, said Tuesday about closing the second fund. “It gives us combined assets of nearly $100 million now.”

Venture firms “close” a fund when they receive a set amount of commitments from individual and institutional investors. They request, or call, that money when they find companies to invest in.

The story is here: http://bit.ly/2c78mT1

After closing up shop a year ago, Venture Snowboards has announced they will resume business for the winter 2016-17, but some aren’t sold on the company’s role and stability. Details: http://bit.ly/2bJgsk5