Category Archives: Venture Capital

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>>

There’s an implosion of early-stage VC funding, and no one’s talking about it

Amid record amounts of capital raised by VCs worldwide, and a sharp rise in the number of private “unicorns” valued at $1 billion-plus, there has been a quiet, barely noticed implosion in early-stage VC activity worldwide. Since 2014, the number of VC rounds in technology companies worldwide has nearly halved, from 19,000 to 10,000, according to PitchBook. During that time, the drop in VC funding amount has been nowhere near as dramatic, highlighting that VCs are concentrating investment into fewer later-stage companies. Read more>>

Boeing HorizonX invests in Near Earth Autonomy, boosting self-flying tech

Drone flightBoeing’s venture capital arm, Boeing HorizonX, says it has made a substantial investment in Near Earth Autonomy, a Pittsburgh-based startup that focuses on technologies for autonomous flight. Boeing and Near Earth also announced a partnership to explore future products and applications for emerging markets such as urban mobility. The move follows up on Boeing’s acquisition of a more established company in the realm of autonomous flight, Aurora Flight Sciences, and underscores the fact that the aerospace giant is turning more attention to robotic flying machines. Read more>>