Category Archives: Venture Capital

Here Are The Top States And Cities For Startups In The South

The American South may not be the first region that comes to mind when you hear the phrase “hotbed of tech entrepreneurship,” but, slightly misguided perceptions aside, it’s home to a diverse and growing collection of startups. As is the case with most of the country, the South appears to be experiencing a shift in startup funding as we move toward the latter half of a bull run in entrepreneurial activity. Read more>>

Snoop Dogg’s venture firm just closed its debut fund with $45 million

Snoop Dogg, the rapper, entertainer and businessman, can claim another small victory in a long string of career highlights. The venture firm that he co-founded a couple of years ago, Casa Verde Capital, has closed its debut fund with $45 million. The money was raised in earnest last year, says managing partner Karan Wadhera, an alum of both Goldman Sachs and Nomura Securities who joined the outfit in the summer of 2016 to take over the process of securing capital — as well as investing it along with fellow managing director Evan Eneman. Read more>>

Udacity, with eye to eventual IPO, says revenue more than doubled in 2017

SAN FRANCISCO (Reuters) – Online education company Udacity, which offers courses in high-tech subjects such as machine learning, said on Tuesday it more than doubled its annual revenue last year and added about 34,000 new students to its online degree programs. The company, founded by Sebastian Thrun, one of Silicon Valley’s pioneers in self-driving cars, said it increased revenue to $70 million in 2017 from $29 million the prior year. Read more>>

Attention, Founders: That ICO Is About To Dilute You, Too

ICOs are nothing less than a tectonic shift in the startup-funding environment. Alas, one of the most common misconceptions about ICOs is that they allow “non-dilutive financing.” You aren’t selling any shares, so there isn’t any dilution, right? Wrong. Clearly, when selling shares or tokens to investors, the investors expect those to appreciate and increase in value. If that’s the case, they will be sharing some of the future value of your venture, so there must be some dilution hidden here.  Read more>>

Why Customer Retention Lies at the Heart of Corporate Valuation

serial-entrepreneur-goldfishNew research from Wharton is changing the way investors are looking at the valuation of businesses by taking a closer look at the worth of those firms’ customers. Wharton marketing professor Peter Fader and Dan McCarthy, a professor at Emory University who earned his Ph.D. at Wharton, are behind this new method that has recently received a lot of attention for the insights it generated about the value of businesses including meal delivery services Blue Apron and Hello Fresh, and online furniture retailers Wayfair and Overstock. Read more>>

Unicorns gorge as investors dish up bigger rounds, more capital

Is there a point when investors will turn off the spigots for giant unicorn funding rounds? If so, we haven’t reached that threshold yet. Last year, investors put a record amount of capital into members of the Crunchbase Unicorn Leaderboard, a list of private venture-backed companies valued at more than $1 billion. Globally, a staggering $66 billion went into unicorn companies in 2017, up 39 percent year-over-year, according to an analysis of Crunchbase data. Read more>>

Why This VC Is Betting on Women, People Of Color, and LGBTQ Founders

Four years ago, Arlan Hamilton was living out of a hotel room that she shared with her mom. At that point, she had given up a career as a live music production coordinator to become a venture capitalist. Her goal? Raise a fund that invests in companies founded by underrepresented entrepreneurs, including women, people of color, LGBTQ company founders, or any combination of the three. Read more>>

 

2017 ICO mania: 430 offerings raised $4.6 billion through November

Whether the frenzy of initial coin offerings that swept the globe last year was a temporary phenomenon or the start of a lasting revolution, the bottom line is that the bottom line was huge. A new report from the Crypto Valley Association and consulting firm PwC Strategy& notes that through the end of November, there were 430 ICOs worldwide, up from 2 in 2013. Those ICOs raised a collective $4.6 billion. Read More>>

New Study Sheds Light on Angel Investors in the US Economy

BOSTON—“The American Angel,” a new comprehensive national study released yesterday, provides a detailed picture of angel investors–who they are, where they live, and how they make investment decisions.  Andy Wu, assistant professor of business administration at Harvard Business School, said they are excited to share the findings of this first large-scale survey of its kind in this country, shedding light on the identity of the ‘American Angel,’ and how that is rapidly changing. Read more>>

Are ICOs The New Startup Lifeblood?

Tech company Hanson Robotics is using SingularityNet, a token-based marketplace, to help fund the development of advanced artificial intelligence. This kind of crowdfunding campaign is known as an initial coin offering (ICO). A video promoting the ICO sale features Sophia explaining SingularityNet’s marketplace. An ICO is a virtual coin or token that is sold to investors in an effort to raise capital for a new company. Depending on the terms of the ICO, the token sold to an investor can represent either an investment security, or a form of currency within a company’s application. And while it might sound a little too futuristic, ICOs are a key tool for launching a business or entrepreneurial effort. Read more>>