Evan Vitale

Accounting Professional

Evan Vitale – What’s New in Venture Capital?

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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!

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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

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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!

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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!

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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

 

Evan Vitale – Bloomberg & Other VC Headlines

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By Evan Vitale

Here are a few of the venture capital stories making headlines this week:

Fortune.com is reporting that Bloomberg Beta, the early-stage venture capital arm of Bloomberg LP, today announced that it has closed its second fund with $75 million. That’s the same size as Bloomberg Beta’s debut fund, with all of the money again coming from the parent company. You can read the full story here: http://for.tn/2ah4Wih

In Europe, venture capital has regained some momentum in the second quarter, but is still down 22% from 2015, this coming from Venture Beat.

According to the latest report from Dow Jones VentureSource, during the three months ending in June, European companies raised $3.33 billion in 461 deals.

That’s up 18 percent from Q1 in terms of amount raised. And it represents an increase of 9 percent in the number of deals.

Catch up on all the details here: http://bit.ly/29PrSkE

Fast Company has an interesting article: “More Unicorns But Fewer Deals: The Current State of Venture Capital Funding.”

The only thing certain about the global economy is uncertainty. Thanks to political unrest, terrorist attacks, and the repercussions of Brexit, caution is the dominant mindset of investors in every market, according to the latest quarterly global report on venture capital trends published jointly by KPMG International and CB Insights.

You can read the full report here: http://bit.ly/2a5E7eD

Meanwhile, in Arizona, the Phoenix Business Journal is reporting that the state has enjoyed a big second quarter in venture capital deals.

A 34 percent increase in venture capital deals in Q2 2016 were reported by PwC and NVCA for Arizona. The new report finds five deals more than DowJones VentureSource reported.

 

Evan Vitale – Venture Capital News Update

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By Evan Vitale

What’s new in the world of venture capital? Let’s take a look…

The Columbus Dispatch (Columbus, Ohio) asks the question “why can’t Ohio attract more venture capital money?”

According to a recently-published article, a new report on venture-capital funding in Ohio has a familiar theme: There’s still not enough of it.

Investors put $373 million to work with 167 new and developing companies in Ohio last year, according to the Ohio Venture Report 2015, a look at venture investing in the state.

“We do have a big gap,” said Tom Walker, CEO and president of Rev1 Ventures, a Columbus technology-business incubator.

You can read the full article here: http://bit.ly/29H70zi

Meanwhile, Fortune.com is asking different questions on why the lack of women in venture capital continues to persist.

There’s still a lot of work to be done when it comes to including more women in venture capital, summed up by a collective chorus at a panel of Silicon Valley and Boston venture capitalists at Fortune‘s Brainstorm Tech conference in Aspen on Tuesday.

“Everyone has a role to play, including the press, existing VC firms, and entrepreneurs,” said Megan Quinn, a growth investor at Spark Capital, who was previously a partner at Kleiner Perkins. “I don’t buy the argument that there aren’t enough qualified women to be in venture capital,” she added.

The lack of women who invest in startups in Silicon Valley is an issue that has come to light over the past few years. Fewer than 6% of all decision-makers at U.S. venture capital firms are women, according to data compiled by Fortune, showcasing the glaring gender inequality issues in the investment industry and Silicon Valley as a whole.

Read more here: http://for.tn/29Dtttk

Crain’s Cleveland Business reports how local leaders pay tribute to venture capital icon David Morgenthaler, who passed away recently at the age of 96.

You can read the tribute here: http://bit.ly/29PkLu6

Evan Vitale – Venture Capital News!

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By Evan Vitale

It’s been a short week due to the long July 4th holiday weekend (we love those!), but there’s plenty of activity and news in the world of venture capital.

Black Enterprise has a good article featuring Arlan Hamilton and her bootstrapped venture fund.

Backstage Capital, the bootstrapped $12 million nano-venture capital fund founded by Hamilton, is dedicated to minimizing funding disparities in tech by investing $25,000‐$100,000 in pre‐seed and seed stage startups led by high-potential founders who are people of color, women, and/or LGBT. Hamilton entered the venture investing world from an unconventional path. As a band tour manager who’s worked on shows with Pharrell and Justin Timberlake, Hamilton started thinking about the venture industry after seeing others like Ellen DeGeneres, Troy Carter (John Legend’s manager), and Scooter Braun (Justin Bieber’s manager) investing in startups.

The full article is here: http://bit.ly/29wQjpP

Crain’s has released an informative piece – “74 opportunities to get the funding your business needs.”

This is the annual directory of Chicago-area venture-capital firms and private-equity firms. The alphabetical directories combined contain more than 70 firms with offices in Cook, DuPage, Kane, Lake, McHenry and Will counties in Illinois plus Lake County, Ind.

Data for most firms include 2015 and 2014 capital, sources of funding, number and dollar amount of investments made in 2015 and 2014, types of investments and the number of local employees. The Excel versions of each list include additional firms that did not appear in print as well as a contacts file with names and titles of more than 130 executives at these firms.

You can find out more here: http://bit.ly/29kcZ8f

In New York, the New York Business Journal is reporting a big decline in New York City venture capital deals for the second quarter of 2016.

The number of venture capital (VC) deals over the course of April, May and June saw a significant decline. According to investment research firm PitchBook Data, the tally of deals in the second quarter of 2016 is at 178 — the fewest number of deals since the fourth quarter of 2011.

You can read the full story here: http://bit.ly/29p1fmY

Evan Vitale – VC News Update!

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By Evan Vitale

We’ve reached the half-way point in 2016 (can you believe it?), so let’s see what stories are making headlines in the world of venture capital.

The Cincinnati Business Courier has published an article announcing Blue Chip has launches a new venture capital fund.

Blue Chip Venture Co. has raised a $20 million fund to make follow-on investments to fuel growth at companies in which it has already invested.

Blue Chip Managing Director Jack Wyant calls the fund “the only two-year venture capital fund in existence.” Most venture capital funds have a 10-year time horizon. Blue Chip launched its last two funds – the fifth and sixth in its 26-year history – with five-year plans to return all capital to investors. Blue Chip has invested about $1 billion since 1990.

The article can be seen here: http://bit.ly/297lx6a.

Forbes has released an interesting infographic showing which industries attract the most venture capital. Can you guess which ones?

Echoing all of those success stories, software receives the largest slice of the VC pie by a considerable distance, accounting for 36.2 percent (nearly $12 billion) of all investment over the past year. Biotechnology was in second place with 17.3 percent ($5.7 billion) while media and entertainment rounded off the top three with 9.5 percent ($3.2 billion).

Check it out here: http://bit.ly/294C4KC

And, according to Quartz (http://qz.com), a new career in Silicon Valley might be in store for President Barack Obama.

In seven months, Barack Obama will leave the White House as president of the United States. He’s going to need a job. In an interview with Bloomberg on June 13, he hinted at the possibility of joining entrepreneurs and venture capitalists in Silicon Valley.

Obama said “had I not gone into politics, I’d probably be starting some kind of business,” said Obama. “The skill set of starting my presidential campaigns—and building the kinds of teams that we did and marketing ideas—I think would be the same kinds of skills that I would enjoy exercising in the private sector. … The conversations I have with Silicon Valley and with venture capital pull together my interests in science and organization in a way I find really satisfying.”

The story is here: http://bit.ly/2989zsb

Evan Vitale – Venture Capital News!

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By Evan Vitale

As we are winding down the end of the second quarter, let’s see what stories are making headlines in the world of venture capital.

The Wall Street Journal has published a piece on Russia’s venture capital funds looking abroad.

Russian venture-capital funds are shifting their gaze to outside the country, contributing to an exodus of capital amid an economic crisis and Western sanctions.

A robust startup scene emerged in Russia after the collapse of the Soviet Union, and venture-capital funds followed closely behind. New companies sprung from the scientific and academic communities Russia nourished during the Cold War, including Doroga TV, a vehicle-tracking GPS service, and Kuznech, an app that allows customers to shop by browsing online images. But funding is now looking for better opportunities outside Russia.

The full story can be found here: http://on.wsj.com/28MmrUW

According to the Atlanta Business Chronical, TTV Capital has invested in FinTech startup. TTV Capital led Apruve Inc.’s Series A round of funding that raised $2.2 million in capital.

The company will use the investment to hire employees in sales, marketing and software development. Apruve’s employee count is approaching 10, a company spokeswoman said.

Businesses use Apruve’s technology to manage accounts receivable and provide customers with revolving lines of credit.

Palo Alto, Calif.-based venture capital firm Allegis Capital also participated in Apruve’s round of funding.

The full story is here: http://bit.ly/28Sh1uj

Fortune.com and many other publications have learned that venture capital icon David Morgenthaler, who was largely responsible for the modern venture capital marker, has died.

Morgenthaler passed away at the age of 96 years-old. At the time, he was a patient of the Cleveland Clinic, an organization where he served on the board and finance committees for decades.

More can be found at: http://for.tn/28QKaWJ

So has the first half of 2016 been a good year for venture capital? What’s in store for the next six months, especially with the election looming in November?