Evan Vitale

Accounting Professional

Understanding Venture Capital Arms

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By Evan Vitale

As we close out another month, let’s see what stories are making the top headlines in the world of venture capital.

Forbes has published an article “Startups Seeking Funding Should Consider Corporate Venture Capital Arms.”

Here, contributor Richard Harroch writes: Venture capital funds capitalized and run by major corporations are becoming more popular, and are commonly referred to as “venture capital arms” or “corporate venture arms.” For example, companies such as Google, Qualcomm, Comcast, Dell, Microsoft, Nokia, and Intel all have professional active venture arms. This is an important development for entrepreneurs and startups, as these corporate venture arms can invest significant capital and provide substantial assistance to a startup.

Details: http://bit.ly/2m292Q1

Bloomberg Technology is reporting that Blockchain Capital LLC, which backs startups that use the technology best known for supporting bitcoin, plans to raise a new $50 million fund partly by issuing its own digital tokens, becoming the first venture fund to do so.

The San Francisco-based company seeks to raise a portion of its third blockchain fund through an initial coin offering, or ICO, of tokens and the larger part from traditional venture-capital investors who typically contribute a minimum, Managing Partner Brock Pierce, who is also chairman of the Bitcoin Foundation, said in an interview.

You can read the full story here: http://bloom.bg/2ljmR9k

Is there venture capital available for your business?

In an article by The Wall Street Journal, Steve Case says people outside Silicon Valley feels left out and he wants to change that.

Silicon Valley continues to attract more venture capital and more startups than anywhere in the U.S., but Case says that has to change. The AOL co-founder and chief executive of investment firm Revolution LLC says “everybody, everywhere” should get a shot at the American dream.

You can find and read the entire article here: http://on.wsj.com/2lpfPQY

Have a great week!

 

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!

VC News: Grand Rapids New Fund Announced

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By Evan Vitale

What stories are making headlines in the world of venture capital? Let’s find out:

MiBiz.com is reporting a new venture capital fund has launched in Grand Rapids to target early-stage companies.

Grand Ventures I LP will invest $1 million to $3 million in early-stage capital in each deal and provide “strategic support” for startup businesses involved in agriculture, manufacturing and transportation. The fund will pursue investment prospects that are nearing or have entered the marketplace with an innovation and have the potential for high growth, said co-founder and general partner Tim Streit.

Details: http://bit.ly/2kIr3S5

Meanwhile, The Daily Universe (Brigham Young University) is reporting Utah ranked 9th in venture capital per deal value nationally in 2016.

Utah companies raised $170 million of venture capital in Q4 of 2016 across just 19 deals, which translates to an average of $8.9 million per deal.

“The companies that we’ve seen coming out of Utah and surrounding states are phenomenal,” said Kickstart Seed Fund Analyst Minna Wang. “Quantity — and more importantly, quality — have gone up year after year.”

Details: http://bit.ly/2lFwEH8

VentureBeat.com has an interesting piece – “Dumb money and other myths about corporate venture capital.” You can find it here: http://bit.ly/2l4Dw2V

From Bloomberg, Green Technologies gets a boost from EU’s venture capital fund.

Green technologies from rooftop solar to projects that turn waste into electricity are getting a boost from venture capital funds, which raised their investments in clean energy at the fastest pace in nine years in 2016.

VC funds funneled $834 million into the clean-energy industry last year, the third consecutive annual increase and the most since Bloomberg New Energy Finance started collecting data in 2004. For a second year, VC for green projects surpassed private equity, which dropped to its lowest level since at least 2004.

You can read the story here: http://bloom.bg/2kuEHbo

Have a great week!

Evan Vitale – VC News Update!

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By Evan Vitale

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

The National has released an article “When Oil No Longer Delivers Growth, Venture Capital Can Take Over.”

Venture capital is critical to the future success of not only the UAE but also the GCC. To understand this we first need to understand the historic formula for our success – oil leads to financial capital, which leads to real estate development, which creates social and business communities that attract people. Repeat.

Even if oil prices had not collapsed, sooner or later the size of the economy would reach a level at which oil alone could not deliver growth. We have not reached a point of reckoning because oil prices halved, that only accelerated the inevitable.

You can read the rest of the story here: http://bit.ly/2leRvAi

Meanwhile, Pymnts.com is reporting that Alibaba is the lead investor for a new round of funding for Paytm.

According to a report, citing a person familiar with the matter, Alibaba is leading the $200 million round. The other investor in the round is SAIF Partners, noted the report. With the $200 million funding, Paytm has a valuation of $1.1 billion. The move on the part of Alibaba gives it a bigger presence in India’s eCommerce market, which is dominated by Amazon and Flipkart. Amazon, Flipkart and Snapdeal, which is also backed by Alibaba, have been fighting to gain the number one position in the market and are spending a lot of money to enhance their delivery capabilities and lure shoppers via promotions and discounts. The report noted that Amazon has already pledged $5 billion in India to be the leader in eCommerce. Details: http://bit.ly/2kyEq5N

Forbes.com has an informative article offering six tips for getting started in raising venture capital. Read more here: http://bit.ly/2jTTw3A

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!

Evan Vitale – VC Stories Making Headlines!

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By Evan Vitale

What stories are already making headlines in the early part of 2017?

The Wall Street Journal is reporting that former Novartis Pharma-unit head David Epstein has joined Flagship Pioneering. Epstein is the latest in a line of top pharmaceutical executives—such as former Sanofi SA Chief Executive Chris Viehbacher and AstraZeneca PLC’s ex-chief medical officer, Briggs Morrison—to join venture-capital firms or young biotech companies following long careers in the industry giants. Details: http://on.wsj.com/2iDRN3n

Forbes has announced it’s 30 Under 30 in venture capital. You can meet and learn more about the top young investors for 2017 here: http://bit.ly/2iP30hP

Blockstack, a New York company that develops platforms for secure, server-less apps using blockchain technology, raised $5.3 million in a round of venture capital funding. According to a report, the funding was provided by Union Square Ventures. The article, published by pymnts.com is available here: http://bit.ly/2inxdmS

At the Minneapolis firm Loup Ventures, formally launched this week by former securities analyst Gene Munster and two partners, the founders have basically turned that idea on its head. Instead of looking for visionaries to back, savvy entrepreneurs should come looking for them, as they are the ones with the confident vision of the future. They are so confident that they are publishing a 27-page manifesto with the title “The Future Perfect: Rediscovering Utopia.” Details: http://strib.mn/2jmWBNM

TechCrunch has published one of the first bold prediction headlines of the year stating that “2017 will be a strong year for venture capital.”

Contributor Matt Murphy writes:

“What does my crystal ball say about the outlook for venture capital in 2017? The building blocks of a better year are in place. Many venture capital firms are flush with cash, startup valuations have become more reasonable, technology industry M&A is robust and the technology IPO market is improving. Moreover, the obsession of funding unicorns at almost any price — and at the expense of smaller startups — has materially waned. All good news.”

Details here: http://tcrn.ch/2imTEcJ

Evan Vitale – VC News Update!

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By Evan Vitale

The New Year is fresh, so let’s see what stories made the headlines during the last week of 2016.

ValueWalk.com has listed its top 5 venture capital deals, exits and funds for the past year with Uber and Snap on the list. You can see the Top 5 and read more about VC in 2016 here: http://bit.ly/2is1txt

Fortune.com has an interesting piece – “Fraud in Silicon Valley: Startups Show their Unethical Underside.” The article is subtitled: As the list of startup scandals grows, it’s time to ask whether entrepreneurs are taking “fake it till you make it” too far.

You can read the full story here: http://for.tn/2htvXR9

Meanwhile, Health IT News has published an article on the low numbers of women and minorities who fill the top investment roles at venture capital firms.

Few women are in decision-making positions when it comes to investment, according to a report from the National Venture Capital Association and Deloitte.

Women represent merely 11 percent of investment partners or equivalent on venture investment teams.

The survey also reveals racial minorities are underrepresented in venture capital positions, with only 22 percent of the venture capital workforce. Black employees are at 3 percent while Hispanic or Latino employees are at 2

By race, the report found that non-white employees comprise 22 percent of the venture capital workforce.

Details: http://bit.ly/2iFS6h0

Sputnik.com shares a story on how Belarus and China are pledging to set up a $20 million venture capital fund to promote investment in the Eastern European nation.

Details: http://bit.ly/2iFV9Sf

Happy New Year!

Evan Vitale – Venture Capital News!

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By Evan Vitale

While the holidays are definitely upon us, there’s still plenty of venture capital stories and news making headlines recently. Here are some of the highlights:

Bloomberg Technology has a nice piece on Superflex – a company that was spun out of a project at SRI International (the company that incubated Apple’s Siri). On Tuesday, Superflex announced it has raised $9.6 million from investors including Japanese venture capital group Global Brain and Horizons Ventures, the VC fund of Asian billionaire Li Ka-shing. Details: http://bloom.bg/2h8Xt8e

Forbes continues to follow and report on the “Tech Triangle” of venture capital and startups in the leading global hubs of China, Israel and the United States. Recent examples of cross-regional Israel-Asia venture capital deals, Hong Kong-based Arbor Ventures has led a $9.5 million, Series A investment in EverCompliant, a cyber intelligence company in Tel Aviv that’s a leader in detecting and preventing transaction laundering. This is Arbor Venture’s third investment in Israel — a $10 million, Series A round in January 2016 in TravelersBox, and an investment in a fraud prevention startup Forter. Details: http://bit.ly/2hWlT1Y

It wasn’t the kind of statement likely to win the hearts and minds of those who consider Monsanto synonymous with Big Agriculture.

“If you think about it, there are two people on Earth that need to know a lot about remote sensing (technology) — Monsanto and the CIA,” said John Hamer, managing director of Monsanto Growth Ventures, the venture capital arm of Monsanto.

Read more here: http://strib.mn/2iiR2LX

Happy Holidays!