Evan Vitale

Accounting Professional

Evan Vitale – Venture Capital Headlines

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By Evan Vitale

Here are the latest headlines in venture capital news!

The Wall Street Journal’s Venture Capital Dispatch is reporting that GreatHorn Inc. wants to stop phishing attacks, a social-engineered form of cyberattack, before they even reach an employee’s inbox.

The company has raised $2.25 million in seed funding, led by ff Venture Capital and SoftTech Ventures. Techstars Ventures, RRE Ventures and Walter Winshall also participated, alongside Zelkova Ventures and V1.VC.

The funding comes after fraudsters have been using phishing attacks to file tax returns. There have been several incidents this year in which human-resources employees received fake emails from scammers impersonating company executives. The emails request W2 forms or personal information about other employees, such as Social Security Numbers. If the employee thinks they are actually coming from the top brass and responds with the information, it can leave other employees vulnerable to identity theft and tax fraud.

Read the full story here: http://blogs.wsj.com/venturecapital/2016/03/21/greathorn-seeded-for-preventing-phishing-attacks/

The St. Louis Dispatch reports Two St. Louis venture capital firms and a German technology giant are funding an expansion by Adarza Biosystems in O’Fallon, Mo.

Adarza announced Monday that it had completed a $5 million funding round led by Cultivation Capital Life Science Fund, Lewis and Clark Ventures and Siemens, the German engineering and medical-products company. Adarza will expand production capacity at its O’Fallon plant, launch a commercial line of diagnostic immunoassay kits and accelerate development of new products.

Learn more here: http://www.stltoday.com/business/columns/david-nicklaus/adarza-adds-million-in-venture-capital/article_12374e0d-c2cf-5e4b-b921-d614ccf306a4.html

A year ago, business software vendor Domo Inc. was expecting to go public by the end of 2015, Chief Executive Josh James told VentureWire.

Domo, according to the Wall Street Journal, has now raised $131 million as it waits for the markets to become more receptive to information technology companies. The company extended its last funding round, a $200 million Series D round raised in April 2015, at the same valuation and same terms, adding money from insider BlackRock Inc. Credit Suisse and unnamed family offices, some in Asia and Russia, and taking total funding to $590 million, according to Mr. James.

You can read more here: http://blogs.wsj.com/venturecapital/2016/03/22/domo-raises-130-million-holds-its-2-billion-valuation/

 

Evan Vitale – Finding A Business Angel

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By Evan Vitale

Can a business angel help your start-up or expanding business with the financing you need?

Probably.

However, this are many things to learn about a business angel; how they work and, most importantly, how do you find a business angel?

Simply put, a business angel is an individual who offers the financial backing you need to fund your startup or take your business to the next level. Angels are everywhere. They are professionals, retirees, doctors, lawyers, business owners. They are successful and they are interested in finding business investment opportunities.

The most difficult part about connecting with a business angel is finding them. It’s not like they are listed in the phonebook or have a website saying “I’m a business angel, please send me your proposals.”

Instead, you have to find them. How?

  • Start by talking to family; friends and close business associates.
  • Attend networking events and meet new people. Don’t rush in with your financial needs. You need to develop a relationship and build trust. This takes time.
  • Increase your marketing and social media efforts. Make you and your business more visible. Angels will be watching your progress.
  • Earn more local public relations. Write press releases; submit story ideas to local newspapers, television and radio stations. Again, all of this will not going get the attention of a potential angel, but it might also help you earn new clients and increase your revenues.

A friend of mine would eat lunch two-three times a year with a potential angel. The angel would invite him to lunch so he could be kept up-to-date on how his business was progressing. However, my friend had no idea his lunch pal was an angel that could someday be potentially interested in investing in his startup company.

The biggest key in finding an angel is to build strong, lasting relationships. Your connections might introduce you to an angel someday or, perhaps, an unknown angel will knock on your door when you least expect it.

Evan Vitale – What’s New in VC News!

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By Evan Vitale

Here are some of the latest headlines and stories making news in the world of venture capital.

According to WSJ’s Venture Capital Dispatch, Bot Home Automation Inc., which does business as Ring, raised $61.2 million in Series C funding led by Kleiner Perkins Caufield & Byers.

The Santa Monica, Calif., company produces Wi-Fi-connected video doorbells, which allow users to remotely see who is standing at their door from their phones. The product gives users a notification when someone rings the bell or if its motion sensors detect someone in front of the house.

The company declined to disclose its valuation. PitchBook Data Inc. reported the company’s valuation jumped from $63.6 million to $202 million.

Chief Executive Jamie Siminoff said his goal is to use technology to make neighborhoods safer.

The full story is here:

http://blogs.wsj.com/venturecapital/2016/03/16/connected-doorbell-company-ring-buzzes-in-61-2m/

The International Business Times is reporting Intel is planning to sell some assets of Intel Capital as a part of the ongoing restructuring of its investments division. It has mandated UBS Group AG to look for potential buyers.

According to Bloomberg, the California-based chip-maker is looking for a buyer who would purchase its assets housed within Intel Capital, worth almost $1bn (£709m).

“Discussions over the structure of the sale are at an early stage, with Intel open to selling the assets as a whole or divided by geography or sector focus…. The portfolio, which is made up of companies across the world, is housed within Intel’s corporate venture unit, Intel Capital,” sources told the news agency. Intel is expecting to sell the assets to private equity firm.

Intel Capital is the venture capital, merger and acquisition arm of the business, which was started in 1991. Since then it has invested more than $11.64bn in 1,440 companies across 57 countries. In 2015, it invested more than $514m in 143 companies.

The full story is here:

http://www.ibtimes.co.uk/intel-planning-sell-assets-venture-capital-arm-1bn-1549544

Reston, Va.-based StreetShares has closed on $4.5 million in new equity in the first tranche of its Series A round, Mr. Rockefeller told VentureWire. Financial-technology venture firm Fenway Summer, founded by Raj Date, former deputy director of the U.S. Consumer Financial Protection Bureau, is leading the round. Endeavor Equity Holdings and Pivot Investments also participated in the deal. The round is still open.

The story can be found here:

http://blogs.wsj.com/venturecapital/2016/03/14/streetshares-nabs-series-a-for-small-business-loans/

 

Evan Vitale – The Latest In VC News!

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By Evan Vitale

What new in venture capital news?

According to the Wall Street Journal, Justworks – a benefits and payroll company – has secured $33 million in Series C funding, which brings the total amount the company has raised to $53 million. Redpoint Ventures led the round and had participation from existing investors Bain Capital Ventures, Thrive Capital and Index Ventures.

You can read the full story here: on.wsj.com/1TOM8Xu

Who is the biggest venture capital firm in the world? China.

Fortune is reporting that China has funneled $338 billion into startup investment funds.

In bid to ease the slowing Chinese economy into a consumer-based rather than heavy industry-focused one, the country reportedly raised about 1.5 trillion yuan, or $231 billion, in state-backed venture funds through 2015, according to Zero2IPO.

That tripled its assets under management to $338 billion. The money, which is almost five times the amount raised by any other venture firm in the world in 2015, comes mostly from tax revenues or state backed loans, and is funneled into some 780 funds across the country.

The full report is here: for.tn/1p9jFht

Bustle, a New York City-based news site aimed at millennial women, has raised $11.5 million in new funding led by Saban Capital, with participation from GGV Capital and existing investors General Catalyst Partners, Time Warner Investments, and Social Capital. Richard Yen of Saban Capital will join the company’s board.

The media company, founded in 2013, has amassed an audience of 32 million, most of which are young women between the ages of 18 and 34, according to comScore. The site’s advertisers, including Campbells and Adidas, purchase packages that include a mix of native advertising, traditional display ads, and video. Last year, Bustle hit its revenue goal of $10 million. The company expects to “substantially outperform” its goal of $20 million for 2016, according to CEO and founder Bryan Goldberg.

The story is here: for.tn/1UlvBsp

Evan Vitale – What’s Next If Your Crowdfunding Plan Fails?

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By Evan Vitale

You’ve researched, planned and prepared an awesome presentation for your crowdfunding campaign and then it bombs. Now what?

Get up. Brush the dirt off your pants and try again. Right?

Before you take the same plan and presentation and create a new campaign at a different crowdfunding site (which might also cause yet another failure), you should first step back a little and review the following:

  • Is your idea a great one? Everyone “thinks” they have an awesome idea, but is it really that great? If so, then why didn’t you reach your campaign goal? Was it something in the presentation or did others feel like perhaps your idea isn’t as hot as you think it is?
  • Review your plan. What’s missing in your project or idea plan? Did you offer enough details to your investors? Check and see if there were any unanswered questions during your campaign. Remember, as you create your plan and presentation think of all the questions someone might ask if you were making the presentation face-to-face. Then, make sure all of those questions are answered in your campaign presentation.
  • Review your financial goals. Are you dead-on with your requests or are you asking for too much money?
  • Review your presentation. Did it fail to wow your crowd? What’s missing? What can you do to make it better; keep people’s interest and make them become part of your financial crowd?
  • It could be that perhaps you presented your plan on the wrong crowdfunding website. They are all different and, perhaps, a change might be the key to reaching your campaign goal.

Once you have answered those questions and made the necessary edits, changes and updates, then it’s time to start your crowdfunding campaign again. A first-time failure doesn’t mean you’re finished. It means you’re gaining experience!

 

Evan Vitale – Crowdfunding Your Startup

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By Evan Vitale

In our previous blog posts, we introduced crowdfunding and how it works for businesses, charities, individuals and more. Now, let’s take a look at how you might consider using crowdfunding for your startup business.

Capital, financing, money, etc. (whatever you want to call it) remains the No. 1 challenge for any startup in order to launch your dream; get things off the ground and have remaining fundings to maintain growth.

Simple, right?

If you don’t have cash on hand, you might first turn to a bank for financing. However, a financial institution will need collateral such as a home in order to secure the business loan.

Your next chance might be with family or friends. Maybe you’ll look for an angel or a venture capital firm, etc.

Or, perhaps, you’ll skip all the aforementioned red tape and go directly into seeking funds from crowdfunding opportunities (i.e., Kickstarter, Indiegogo, etc.). Will it work?

It all depends on you. For example:

  • You might have a great idea, but you’ll need to package and present it in a way to attract potential crowdfunding investors. The first challenge to any crowdfunding project is to get donors interested in helping you. Your presentation will be like a sales pitch in that you need to get people excited.
  • Let’s say you want to raise $25,000 for your startup idea. Here, instead of giving every donor a percentage piece of ownership, they will receive a gift for their donation. This might be the product you hope to create and sale or something simple like a coffee mug.
  • Ask for exactly what you need. If your startup requires $25,000 then create a crowdfunding plan and presentation seeking $25,000. Don’t ask for more or less. Some plans have hit their target very quickly and some fall dreadfully short.

The best way to begin your crowdfunding plan is by doing research. This includes:

  • Talking to your accountant, your banker and your attorney.
  • Consult with your business coach, if you have one.
  • Visit and do deep research on crowdfunding sites. Know them inside and out. Investigate plans that succeeded and those that failed. What did they do right, or wrong?

If your first crowdfunding attempt fails, find out why. Did your potential investors not like your plan, idea or product? Or, did your presentation fail to “wow” them? Every idea isn’t going to be an instant winner and, yes, some great ideas never get off the ground because startup owners didn’t prepare a selling presentation to attract investors.

Evan Vitale – Latest Venture Capital News

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By Evan Vitale

Here are some of the latest headlines and news in the world of venture capital.

According to the Wall Street Journal, companies with technologies to reduce preterm births drew significant interest from venture capitalists in 2015 and helped drive investment in reproductive health to a record amount of $333.1 million for the year. Reproductive health is one of the smaller categories for venture investment among 17 areas of the human body surveyed by VentureWire and market tracker Dow Jones VentureSource. Health-care venture firms have focused mostly on disease therapies, and pregnancy hasn’t been seen as a medical condition that needs treatment. Last year’s investment total topped the previous high of $298.1 million reached in 2001. Read the rest of the story here: http://on.wsj.com/1pqoweA

Backstage Capital, the bootstrapped venture capital fund founded by Arlan Hamilton and focused on investing in “overachieving, underrepresented startup founders,” is launching their official website (www.BackstageCapital.com) and announcing the first six investments they’ve made. Hamilton is one of the first LGBT black women to start a venture capital fund and became the first black woman to lead an AngelList syndicate last Fall. Since November 2015, Backstage Capital has invested amounts ranging from $25,000 to $100,000 into companies with diverse founders like Kairos, Wedspire, TextEngine, and Nailsnaps. Currently, Backstage Capital’s roster of investors (LPs) includes individuals such as Marc Andreessen, Susan Kimberlin (formerly of Salesforce), Brad Feld, Leslie Miley (formerly of Twitter), and Lars Rasmussen (co-creator of Google Maps). The full press release is here: http://prn.to/21NrNTd

SportTechie is reporting Ted Leonsis, the business mogul that owns and operates Monumental Sports & Entertainment (MSE), has quietly announced his intentions for a $10 million venture capital fund for the purposes of investing in sports and entertainment tech startups.

MSE owns three Washington D.C. sports teams—the Mystics of the WNBA, the Capitals of NHL and the Wizards of the NBA. You can read the full story here: bit.ly/1QRMDch

Evan Vitale – Crowdfunding (Part II)

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By Evan Vitale

This is the second in a two-part series on crowdfunding.

The key – and most important – part of seeking funds for your project via crowdfunding is the pitch (or presentation).

Consider your crowdfunding to be like a marketing event or like the television series “Shark Tank.” You need to make a huge impression on your viewers in order to persuade them to whip out the credit card and contribute to your project.

Here are some tips on how to prepare your crowdfunding presentation:

Plan your idea and your project. This includes your design; your team (if any) and your strategy. All of these things need to be in place before your create your presentation.

Create and build your marketing strategy. Even before you release your crowdfunding presentation, you can begin teasing your audience and creating some social media buzz. You don’t need to give away your million-dollar idea here, but you can make strategic announcements about your project, how it’s going to help consumers or businesses solve a problem, take pictures, etc. Release a little bit at a time and consider a crowdfunding countdown to the release date.

By doing this, you’ll immediately gain some social media fans and followers and that’s exactly what you want as these are the same people who are going to be funding your project.

Create a business plan. Yes, you need to do this. Your project should be treated like a business. What is the point of your project or idea? What will it do? Is it going to solve a problem, make money, etc.? How much money do you need to raise? What is the deadline for your financial goal?

As you are creating your presentation, think of all the questions that could (and probably will) be asked after your initial pitch. Then, be sure you answer all of those questions in your presentation pitch.

Remember, one of the best ways to generate presentation ideas is to review other presentations in crowdfunding websites. Review what projects reached their financial goals.

Evan Vitale – Crowdfunding (Part I)

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By Evan Vitale

You’ve probably heard the term “crowdfunding” many times, but now you’re thinking it might be a way for you to raise money for your business, startup idea, non-profit, special project, etc.

In a nutshell, crowdfunding is exactly what its name implies: the ability to raise money and finance a project by pooling together donations from many individuals.

Here’s how it works:

You create a free account on a crowdfunding website (Kickstarter for example) and post a video in which you explain your project, business, invention, idea, etc. It’s a pitch. You need to be interesting and your idea needs to capture as many pairs of eyeballs as possible.

Based on the amount of the donation, you are willing to give them something. It can be a gift, a product you’re creating or even a part of the business. Some music artists, for example, give a copy of their latest CD for a small donation or a t-shirt for a little bit larger donation. What are you willing to give as a gift for someone’s donation?

As your crowdfunding project starts, donors can see your profile, pitch, etc., as well as how close you are to your overall financial goal.

If you reach your donation goal, the crowdfunding website earns a royalty fee (usually around 5% or so) plus credit card processing fees. However, if you don’t reach your financial goal, no money is collected and the project ends. Be aware that some crowdfunding websites collect a small fee for failed projects as well.

If you’re considering a crowdfunding project, a good place to start is by visiting several crowdfunding websites, reading many project profiles and collect ideas. Make sure you’re aware of the site’s fees and how the website is structured before you submit your crowdfunding project.

I’ll have more crowdfunding ideas in the second part of this blog series.

Evan Vitale – The Latest in Venture Capital News

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By Evan Vitale

Here’s the latest in a variety of venture capital news.

According to “The Daily Startup” (via WSJ.com), the former security leads at Etsy have planned to publicly launch a new security product for teams that are quickly creating and shipping new software. Signal Sciences wants to provide a next-generation Web application firewall to developers who are creating and modifying applications multiple times a day. The Venice Beach, Calif., company grabbed a $9.7 million Series A funding round led by Index Ventures. Chief Executive Andrew Peterson, a former Etsy product manager, and Chief Security Officer Zane Lackey, Etsy’s former security lead, said they saw firsthand in their former roles that security information needs to be brought closer to the developers. “What was out there didn’t solve our problems,” Mr. Lackey said. “We have a deep empathy with our customers, we’ve lived the life that they live.”

Catch the rest of the story and others on WSJ here: on.wsj.com/1RqhQWX

Meanwhile, Reuters is reporting that venture capital groups invested $1.8 billion in commercial space startups in 2015, more than in the last 15 years combined, according to a report by aerospace consultants the Tauri Group. The full report is here: reut.rs/21Bh3qT

Cnet.com has reported that the US Labor Department concludes that Fenox Venture Capital illegally labeled 56 employees as interns. Now, the firm must pay them for three years of unpaid work. According to US law, specifically the Fair Labor Standards Act, companies are required to pay interns if they’re performing work that the company would hire someone to do, among other criteria. The full report is here: cnet.co/1TEeFy6

Venture capitalists are investing $75 million to launch Forty Seven Inc., a startup out of Stanford University, that has joined a race to defeat cancer by engaging the immune system in the fight against tumors. The full story is here: on.wsj.com/1S332zI