Evan Vitale

Accounting Professional

Evan Vitale – VC Gender Gap Getting Worse

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By Evan Vitale

Here are a couple of news stories that are making headlines in the world of venture capital this week.

Fortune has published an interesting article on how “Venture Capital’s Funding Gender Gap Is Actually Getting Worse.”

The article notes: “It’s a well-documented fact that female founders receive less venture capital funding than their male counterparts. What is perhaps more surprising is that things haven’t improved—and have actually worsened—over the past year.

“Venture capitalists invested $58.2 billion in companies with all-male founders in 2016. Meanwhile, women received just $1.46 billion in VC money last year, according to data from M&A, private equity, and venture capital database PitchBook. That massive disparity is due both to the differences in the number of deals and the average deal size by gender.”

Read the full article here: http://for.tn/2nzP4sW

Meanwhile, The Jerusalem Post has published an article on the enormous expansion of the economic environment in which Israeli technology companies operate.

“2016 is turning out to be one of the most prosperous years ever for the Israeli high-tech industry. This prosperity, reflected by the enormous sums invested in local technology firms, brings about a change to some of the mind-frames to which we were accustomed in local venture capital (VC) transactions. It has also enhanced the effects US VC trends have on the Israeli market.”

Details: http://bit.ly/2n4xGQO

And finally, Georgetown University’s Venture Capital Investment team is set to compete in the VIC Global Finals after earning first place honors at the VCIC 2017 South Regional Finals, held at Rice University in Houston, Texas.

Details: http://bit.ly/2nopoR3

Evan Vitale – Venture Capital News Update!

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By Evan Vitale

Happy President’s Day!

Let’s see what stories are making headlines over the past week in the world of venture capital.

Singapore, nicknamed the “little red dot,” is eyeing a sliver of Silicon Valley’s pie, aiming to attract venture capitalists to grow a stable of start-ups in the regional financial hub.

Earlier this week, the Monetary Authority of Singapore (MAS) introduced proposals to simplify the authorization process for venture capital funds.

Under the current regulatory framework, managers of venture capital funds are treated like other fund managers.

The story, reported by CNBC, can be found here: http://cnb.cx/2kXBMpx

Meanwhile, TechCrunch has an interesting piece on “The value of venture capital investors and the importance of physical infrastructure.”

On the back of the news that Wing Venture Capital has closed its second fund, to the tune of $250 million, venture capital is once again under the spotlight.

At the end of November, the U.K. government also focused heavily on the industry as part of its Autumn Statement, with plans to invest £2 billion into science and tech innovation, as well as a plan to invest £400 million via the British Business Bank into VC funds for growth capital. Interestingly, the U.K.’s Autumn Statement was also laced with new funds and investment strategies around infrastructure.

Details: http://tcrn.ch/2ls7PAS

And, if you’re looking for a good explanation of “what is venture capital” then you should check out a new article by USA Today College: http://usat.ly/2m1Oqof

Have a great week!

Evan Vitale – Venture Capital News Update!

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By Evan Vitale

Wow! Did January go by fast or what just happened? Anyhow, let’s see what stories are making headlines in the world of venture capital.

Entrepreneur.com has an interesting article on “5 Ways Venture Capital Can Steal Your Dream” which basically describes those to fail to gain VC funds might be better off than those to do. The article can be found here: http://bit.ly/2jOtjVG

If the topic of venture capital is new to you and your business, then Forbes has the answer with its article “New To Raising Venture Capital? Six Tips For Getting Started.” The full article is here: http://bit.ly/2kwguyo

Is venture capital’s approach to building startups the latest industry to get upended by technology? Jack Abraham, founder of a startup studio called Atomic Management LLC, thinks so. His firm comes up with ideas and then builds and funds its startups from scratch, essentially mashing together the roles of founder and investor.

Find out more how “Atomic, With First Fund, Looks to Upend the Venture-Capital Model” on The Wall Street Journal website http://on.wsj.com/2iVLRGE

Meanwhile, Koubei has raised $1.1 billion in its first round of funding with outside investors, according to an article at pymnts.com.

Koubei, an affiliate of Alibaba, announced the fundraising in conjunction with reporting earnings, Koubei generated RMB 73.1 billion ($10.5 billion) in payment volume transacted through Alipay during the December quarter, representing a 52 percent increase over the prior quarter. In January, Koubei completed a $1.1 billion equity financing led by Silver Lake, CDH Investments, Yunfeng Capital and Primavera Capital. This transaction provides Koubei with a strong capital base to execute on its growth strategy, Alibaba said in a news release. Check out the full article here: http://bit.ly/2jtdjKn

And finally, ValueWalk.com has released an interesting piece showing “15 Charts That Illustrate How The US Venture Capital Industry Looked in 2016.” Check them out here: http://bit.ly/2k4a4d4

 

Evan Vitale – Will 2017 Be Good For VC?

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By Evan Vitale

Let’s take a look at what stories are making headlines in the world of venture capital for the week ending January 13, 2017.

According to Forbes.com, the new year is off to a buzzing, changing and yet controversial start. Venture Capital, writes the contributor, is poised to be a powerful factory in the coming renaissance. Read the full article here: http://bit.ly/2k3SP9k

It is probably no surprise that a lot of people start a new business, but they are not great candidates for a venture capital investment. How can you know if your company is “ripe” for a venture capital opportunity?

Learn more and find out the answer to this all-important question in a new article by Black Enterprise: http://bit.ly/2jYpjl5

TechCrunch.com has published a nice piece – “Venture capital in 2017 is when the rubber hits the road for returns” noting that 2016 was the largest year for VC fundraising since 2000 when the venture capital industry raised $101.4 billion. What’s ahead for VC in 2017? Details here: http://tcrn.ch/2jyrcqX

The Silicon Slopes Tech Summit drew large crowds on its first day—particularly for a session on venture capital that was standing room only in a large auditorium at the Salt Palace Convention Center. The panelists, seasoned veterans in the VC community, traded war stories about major deals won and lost and offered advice for entrepreneurs.

The panel was moderated by David Hornik, general partner with August Capital. Hornik has focused his investments in software companies; some of his investments include Splunk, Evite, WePay and Bill.com. Despite those great successes, he bemoaned some of the great ones that got away—like Uber, which he passed on in its early days. Read more here: http://bit.ly/2jEUUIW

Finally, the Washington Post has published an article: “It appears we’ve reached the end of a venture capital cycle. Now what?” Writer Jonathan Aberman is concerned. Find out why here: http://wapo.st/2jcjtyc

Evan Vitale – VC Pace Slower in 2016

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By Evan Vitale

Here are some of the top stories making headlines in the world of venture capital, January 16, 2017:

The San Diego Union-Tribune is reporting that San Diego start-ups raised venture capital at a slower pace than a year ago.  This follows a national trend of a pullback from higher levels of VC investments in 2015.

Local firms corralled $1.07 billion in venture capital funding last year, according to The Dow Jones VentureSource. That’s down from $1.5 billion the prior year.

Eighty-seven San Diego area companies received funding last year based on the VentureSource data, down from 93 companies in 2015.

Details: http://bit.ly/2jLY00L

A decrease is also being felt in Minnesota, as the Minnesota StarTribune is reporting that the state had its fewest venture capital deals over the last 12 years.

For the year in the state, there were 23 venture capital deals, raising $339.4 million, according to data from the PricewaterhouseCoopers/CB Insights MoneyTree report. It was the lowest number of such deals since 2005, which saw only 20 deals, and the lowest amount raised since the $267.9 million from 39 deals in 2013.

Details: http://strib.mn/2jJCLfS

However, things were better in Florida. According to the Orlando Business Journal, venture capital investment across the state yielded the best year for Florida since 2001 despite a nationwide drop in VC funding, according to the MoneyTree Report, released this week by PricewaterhouseCoopers and CB Insights.

VCs invested $1.12 billion in Florida-based startups through 71 deals in 2016, though much of that capital was funneled to Magic Leap. The South Florida startup, now working on its highly anticipated mixed-reality technology across two offices in Dania Beach and Plantation, scored $793.5 million in the first quarter. The fundraising round was led by Chinese e-commerce giant Alibaba Group.

Details: http://bit.ly/2jf90mb

Have a great week!

Venture Capital Reaction to Election

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By Evan Vitale

The election is (finally) over, but what’s been the venture capital reaction to Donald Trump’s victory?

According to CNBC, Silicon Valley venture capitals say Trump’s victory is “like a funeral.”

The tech community, many who were attending the Web Summit in Lisbon, Portugal, were shocked and the conference mood had changed drastically from Tuesday to Wednesday.

“It’s like a funeral,” one attendee told CNBC, who wished to remain anonymous because they didn’t want to give a political view.

It was a shock result, particularly for the tech community who overwhelmingly backed Democratic candidate Hillary Clinton. A poll carried out by Web Summit of 224 venture capitalists found that 94 percent would vote for Clinton while 89 percent thought that she would win.

“It’s a sh-t show, it’s a train wreck,” a venture capitalist, who also wished not to be named because they didn’t want to be seen giving a political opinion, told CNBC.

Read the full story here: http://cnb.cx/2fUhAXm

Meanwhile, according to the Financial Times, The EU plans to recruit a private sector manager to set up and run a €1.6bn venture capital fund aimed at nurturing innovative technology start-ups and keeping them in Europe. http://on.ft.com/2eTAGb7

Forbes has a nice piece on “Why Raising Venture Capital Is A Waste Of Your Time” at http://bit.ly/2fnJ2Zm

The St. Louis Business Journal is reporting that corporate venture capital has jumped $2 billion with more than 50 corporate venture capital firms globally making their first investment in the first half of 2016. Read the story here: http://bit.ly/2fzxoh3

According to FierceCable, James and Kristin Dolan have launched a venture capital fund. Dolan Family Ventures will focus on investments in data, analytics and technology-related business. You can read the full story here: http://bit.ly/2fEPaNH

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 – 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 – 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 – 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