Evan Vitale

Accounting Professional

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

 

Evan Vitale – Latest Venture Capital News

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By Evan Vitale

Here’s the latest news in venture capital and VC deals:

The Wall Street Journal is reporting the Chicago start Opternative Inc. has raised $6 million in Series A venture funding for an app that lets people take an eye exam using their smartphones and a personal computer at home.

According to Opternative co-founder and Chief Executive Aaron Dallek, Opternative’s app captures data about a patient’s vision and sends it to a licensed, local opthamologist for evaluation. Within 24 hours, the eye doctor then writes a new prescription for glasses or contacts for the patient. The exam costs $40 for either a contacts or glasses prescription and $60 for both.

Read more about Opternative Inc. here: http://blogs.wsj.com/venturecapital/2016/02/18/opternative-raises-6-million-for-online-eye-exams/

A Forbes blog post suggests business owners should stop chasing venture capital funds and start bootstrapping in order to create a profitable business.

Here, writer Danile Buelhoff uses his own experience over a 10-year entrepreneurial lifespan to formulate his opinion and advice on bootstrapping vs. venture capital.

You can read more about Buelhoff’s opinion here: http://www.forbes.com/sites/theyec/2016/02/18/stop-chasing-venture-capital-and-start-bootstrapping-a-profitable-business/#186859ea5078

Business Insider has written a nice piece “Everything you’ve ever wanted to know about venture capital, but were too afraid to ask” at http://www.businessinsider.com/venture-capital-explained-2016-2

Food Navitagor-USA (http://foodnavigator-usa.com) is reporting that the Campbell Soup Co. is hopping on the venture bandwagon “to more fully participate in growth opportunities” that could give it a competitive edge meeting consumers’ fast-evolving demands for healthy and fresh foods.

You can read the rest of the story here: http://www.foodnavigator-usa.com/Manufacturers/Campbell-launches-venture-capital-fund-new-products

Crowdfund Insider reports that F50, a venture capital startup, has announced it has launched the beta version of its co-investment platform and has successfully begun syndication. The firm has reportedly secured commitments to invest over $1 million in Knightscope’s Series B round of funding, a company that has developed technology to predict and prevent crime utilizing autonomous robots.

The full article is here: http://www.crowdfundinsider.com/2016/02/81907-f50-venture-capital-firm-debuts-beta-version-of-its-new-co-investment-syndication-platform/

 

Evan Vitale – Latest Venture Capital News

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By Evan Vitale

Here are some of the latest headlines in venture capital news:

According to GeekWire, a new study from MIT discovered that startups are more likely to succeed when their venture capital backers are connected to them via direct flight.

The research informs larger questions about the effects of venture capital oversight and whether it improves the operations of the startups in which the firm has invested or whether startup success depends solely on effective internal management.

The researchers — Xavier Giroud of MIT, Shai Bernstein of Stanford, and Richard R. Townsend of Dartmouth — compared startups in cities where a direct flight recently had become available between startups and their existing VCs to startups in cities where no direct flights existed to connect the two groups.

Read the rest of the story here: bit.ly/1PCt8oe

The Jewish Business News is reporting in 2015, Singulariteam, a medium sized Israeli fund founded by Moshe Hogeg and Kenges Rakishev, topped all VC fund investors by making 12 first investments,  according to report by IVC Research Center and APM & Co. Law Firm analyzing first investments in Israel by venture capital funds in the past five years, and ranking the most active venture capital funds which invested in Israel in 2015.

Singulariteam’s investments makes a slight increase for the number of deals made by the top ranked fund, compared to 10 first investments made in 2014 by the year’s Most Active Fund, JVP.

Singulariteam manages $152 million via three funds – two early stage funds and a new growth stage fund. The first investments made in 2015 were funded by Singulariteam II, a $102 million early-stage fund closed in 2014.

The full story is here: bit.ly/1KbDOxl

The St. Louis Post-Dispatch reported a $104 million fund managed by Lewis & Clark Ventures is a big deal for St. Louis.

Startups that have been nurtured by the region’s various angel investing groups, accelerator programs and seed-stage funds now have someplace to go when they need larger sums.

The fund plans to invest in series A and B rounds, which are when an early-stage company gets its first or second dose of institutional investment. Lewis & Clark says it will invest between $3 million and $7 million per company, and will bring in co-investors when firms require tens of millions of dollars.

The full story is here: bit.ly/1KFdqMl

Evan Vitale – What’s New In VC News?

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By Evan Vitale

Well-known sports agent Leigh Steinberg is launching a venture capital initiative. Steinberg Ventures will invest in emerging companies and startups in sports and entertainment.

Steinberg Ventures is a partnership with private equity firm Alpha Strategies, led by founder and President Jay Rodgers. It will leverage relationships and opportunities sourced primarily through the Steinberg Sports & Entertainment agency, led by Steinberg and Chief Operating Officer Chris Cabott.

You can read the rest of the story here: bit.ly/202u228

The Riverside Company (formerly VSS Riverside) has added PRIMA Eye Group to its Independent Doctors of Optometric Care (IDOC) platform. PRIMA provides consulting services and purchasing programs to independent optometrists in the U.S.
Based in Atlanta, PRIMA serves nearly 400 practices representing almost 900 optometrists. PRIMA is a consulting firm and alliance devoted to helping independent optometrists through every stage of their optometric business, providing one-on-one consulting from a team of experts in marketing, human resources and practice financial analysis to help grow practice revenue.

The full story is here: bit.ly/1JlOdGe

A recent Wall Street Journal blog suggests that biotech venture investors are expecting a slowdown this year despite coming off a record 2015 investing season.

The blog, written by Brian Gormley, says “while fourth-quarter venture capital funding slid in most industries amid fears of an economic slowdown, biotechnology investment sprinted ahead.

The question is how long the run can last.

“Total U.S. venture funding reached $72.30 billion in 2015, its highest level since 2000, despite fourth-quarter investment declines in consumer services, information technology, and other markets, according to industry tracker Dow Jones VentureSource. Biotech was an exception, capturing $2.47 billion last quarter, a 25% jump from Q4 of 2014. A record, $8.95 billion pumped into biotech for the year drove total medical investment to a new peak of $16.10 billion. That was 34% above the previous high of $12.04 billion, reached in 2014.”

Read the entire blog post here: on.wsj.com/1RVvEvh