Evan Vitale

Accounting Professional

Evan Vitale – Venture Capital Headlines!

by

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!

by

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!

by

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!

by

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!

by

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

Evan Vitale – What’s New in Venture Capital?

by

By Evan Vitale

There’s always something (or someone) making headlines every day in the world of venture capital. Here are some of the top stories creating VC buzz last week.

It’s probably no surprise that celebrities are become venture capitalists (think million-dollar contracts here), but what are so many celebrities taking the VC route?

According to CNBC, Skeptics argue that it can be risky for start-ups to exchange part of their company for a fizzling grasp at fame. But many say that venture capital, like basketball or selling records, is more art than science.

As tech touches more lives, it’s not all that unusual on so-called “Silicon Beach” to see the Yahoo CEO rub shoulders with celebrities at the Met Gala, or hear that Mark Zuckerberg and Priscilla Chan are the new Brad and Angelina. But less well-known is that off the court, Carmelo Anthony has Melo7 Tech partners, off the runway, Tyra Banks has Fierce Capital, and backstage, Ellen Degeneres has Ellen Digital Ventures.

Read the full article here:  http://cnb.cx/2bgCIWu

Forbes is reporting that with the exception of a a few prominent supporters, Silicon Valley hasn’t been very receptive to Donald Trump’s message. Venture capital firm Charles River Ventures took that to a new level on Wednesday with a blog post that stated in no uncertain terms how they feel about the Republican nominee.

The blog post is here (and be prepared for the headline) http://bit.ly/2bQZqzP

Meanwhile, Auth0, the Identity-as-a-Service startup, has raised $15 million in a round of venture capital.

According to a report, the venture capital raise was a Series B round and was led by Trinity Ventures, with participation from Bessemer Venture Partners, K9 Ventures and Silicon Valley Bank, all of which have invested in the startup before. With the $15 million, Auth0 has now raised a total of $24 million.

The article by pymnts.com is here: http://bit.ly/2biszIF

Evan Vitale – Venture Capital News!

by

By Evan Vitale

What’s new in the world of venture capital?

According to Reuters, China has launched a $30 billion state-controlled venture capital fund which will be used to invest in innovative technology and industrial upgrading projects.

China has been encouraging its industrial firms to rise up the value chain through technical innovation and tougher efficiency standards, with the aim of creating globally competitive conglomerates. It has vowed to be more selective in the way it disburses funds, and aims to cut off credit for non-competitive firms that are unable to upgrade.

The fund is financed by China Reform Holdings Corp Ltd, China Postal Savings Bank, China Construction Bank Corp and Shenzhen Investment Holdings, the notice posted on State-owned Assets Supervision and Administration Commission’s (SASAC) official Weibo platform said.

You can read the story here: http://reut.rs/2b1vyiJ.

The Globe and Mail has a nice article you might want to check out on “Insider Tips from OMERS on getting venture capital.”

The interview with Quasim Mohammad, a Toronto-based venture capitalist and member of the investment team at OMERS Ventures, is here: http://bit.ly/2b2fVLa.

The New York Business Journal has a nice piece on ReviMedia Group and how they have raked in $12.5 million in venture capital.

ReviMedia Group is considered to be one of the fast-growing, privately-held companies in New York.

Check it out here: http://bit.ly/2b1uYHz.

Evan Vitale – Google VC Director Resigns

by

By Evan Vitale

Let’s take a look at what venture capital stories are making headline this week.

According to Financial Times,  Bill Maris, the executive who built Google’s venture capital arm into one of Silicon Valley’s most prolific backers of start-ups has quit, in the latest sign of turnover among the internet group’s longest-standing leaders.

The full story is here: http://on.ft.com/2b17K12

Bloomberg is reporting that venture capital is the worst performing asset for Calpers – California Public Employees’ Retirement System.

Returns for VC holdings at the nation’s largest public pension fund were 7 percent over the last five years and 5.6 percent over the last decade, according to a presentation prepared for the board. The investments lagged behind all other private-equity assets for Calpers, partly due to “modestly decreased” activity in venture-backed initial public offerings, the presentation said.

The details are here: http://bloom.bg/2aV4uF6

Do you need some venture capital tips? The Telegraph Connect has some, thanks to Hernandez Gallardo with White Star Capital.

The article is here: http://bit.ly/2aPbO5f

Alafair Biosciences, an Austin-based medical device startup, announced recently it has received $2 million in venture funding.

The story, in “Silicon Hills,” which covers technology news in Austin and San Antonio, says ATP Fund led the Series A investment with participation form existing and new investors including the UT Horizon Fund. To date, the company, founded in 2011, has raised $5.9 million.

The latest funds will help Alafair Biosciences expand its sales and marketing efforts and help with product development. As part of the deal, ATP Fund managing partner and representative Kyle Cox has joined Alafair’s board.

The full report can be found here: http://bit.ly/2b18Sll

Finally, in Nashville, Tennessee, a study shows that more of Nashville’s venture capital funds are being pumped into health care. In all, over the last 10 years, $1.6 billion has been poured into local startups – 60% of that went into health care.

Read the story here:  http://bit.ly/2b18Nhp

 

Evan Vitale – Uber, Other VC News!

by

By Evan Vitale

It’s already the first week of August and there are plenty of stories making headlines in the world of venture capital news.

According to The Economic Times, Infosys has begun discussions for what will be its first investment in an Indian venture capital fund – Stellaris Venture Partners. The software services company could invest up to $15 million in the fund, launched by a team of venture capitalists, who are aiming for a final corpus of $100 million from both local and global investors.

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

Meanwhile, CognitiveScales has landed $21.8 million in venture capital, according to Silicon Hills News, which covers Austin and San Antonio, Texas.

Norwest Venture Partners and Intel Capital co-led the round. CognitiveScale plans to use the money to expand its salesforce and on research and development of its product portfolio.

As part of the deal, Norwest’s Promod Haque and Intel Capital’s Vibhor Rastogi will join CognitiveScale’s Board of Directors.

Read the article here: http://bit.ly/2aSRvTe

Business Insider is reporting that Uber has just suffered its largest setback and is selling its Chinese unit to its top rival in the country, Didi Chuxing.

Uber has suffered through extreme regulatory scrutiny, driver assaults, controversy over background checks and of digging up dirt on critics, and more. But this is something else. China is the world’s most populous country, with a market consistently touted by Uber as a source of opportunity.

Uber’s withdrawal is the greatest setback in the company’s seven-year history — and a rude awakening for many in the venture-capital-funded startup ecosystem.

Check out the full story here: http://read.bi/2atDlqj

Finally, UC San Diego Inventions has gained $6 million in venture capital backing, according to PR Newswire.

“MouthSense” and “SmartFoam,” two new inventions by engineers in the Jacobs School of Engineering at the University of California San Diego, have attracted funding from NextWave Venture Partners, a venture-capital firm specializing in the commercialization of early-stage technologies.

“Developing imaginative and problem-solving products at our public university is an obligation we have to those who invest in us,” said Paul Roben, associate vice chancellor for innovation at UC San Diego. “These inventions, among many others, are an indication that our ‘innovation ecosystem’ is thriving.”

UC San Diego is second in the UC system for inventions and patents, with 97 inventors and 192 foreign patents in 2015.

The full press release can be found here: http://prn.to/2axnObg

Evan Vitale – Venture Capital News!

by

By Evan Vitale

Here are the latest and greatest venture capital stories making headlines over the past week.

According to AL.com, Shipt – which has only existed for approximately two years – has expanded across 10 states and made its mark on the Birmingham skyline.

The grocery e-commerce company just got the resources to grow a lot more: Shipt has secured $20.1 million in Series A funding, or the company’s first round of significant venture capital financing.

“Over the past year, we have laid a strong foundation for our business and scaled our service across the country. This funding is the catalyst that will propel us to the next level,” Bill Smith, founder and CEO of Shipt, said in a press release. “We are ready to put this funding to work strategically, so we can cultivate new partnerships and continue building the best way to buy groceries.”

Read the story here: http://bit.ly/2apUaWw

Crain’s is reporting that the NYU Tandon School of Engineering will announce the launch of an accelerator-style program that will recruit five early-stage AI startups to the school’s Varick Street Incubator. The city’s first accelerator devoted to computer technology that imitates human intelligence, the AI NexusLab will connect the startups to the university’s academic resources while providing the fledgling companies with the marketing and business expertise of a major venture capital firm.

They’ll also be funded to the tune of $75,000 over their four-month stay, with an additional $25,000 to cover the program’s costs. The Manhattan-based firm ff Venture Capital, which will select the startups in concert with NYU, will provide the financing in exchange for a 6% stake in each company. The university will get a 2% stake.

The story is here: http://bit.ly/2aMz7KY

A strong year is in the works for venture capital in the United States – especially in Minnesota, according to a recent article in the StarTribune.

Venture capitalists around the country invested $15.3 billion in 961 deals in the second quarter, according to the MoneyTree Report from Pricewaterhouse- Coopers and the National Venture Capital Association, based on data provided by Thomson Reuters.

You can read the rest of the article here: http://strib.mn/2a3VxGE