VC Daily: First Fundraiser Success Rate
Good day. Early fund managers are gaining confidence and trying to raise funds, as WSJ Pro recently reported. But what is their probability of success?
Fairview Capital, which invests in venture capital funds, analyzed a pipeline of early venture capital funds owned by women or minority executives who raised between 2014 and 2017. It found that overall, 87 % of funds raised capital. But many did not lift as much as they expected. The median fund was targeting $ 75 million but closed 44% below target, according to Fairview partner Aakar Vachhani.
There were also differences within the data set of the sex-diversified funds. While 90% of businesses run by men have closed an initial fund, 77% of businesses run by women have done so.
More than a third of all new diversified fund managers did not raise a second fund, Vachhani said, adding that some had joined other companies or given up on venture capital.
These are heady days for some venture capitalists. WSJ Pro reported that Lee Fixel’s Addition, for example, is in the process of raising its third fund, having already closed two $ 1.3 billion funds since last year. This is normal in today’s marketplace where large companies are growing and small, less proven name efforts struggle to grab the attention of sponsors.
“While not everyone is cut out to be a VC and many might underestimate the challenges, I think the imbalance in success rates likely discourages some truly talented diverse professionals from making a difference in the industry in the long run. term, ”Mr. Vachhani said.
And now for the news …
Level the playing field. In today’s hectic real estate market, buyers who take out mortgages find it difficult to compete with those who invest all of their money. Cash offers are more attractive because there is less chance that the transaction will fail or be delayed due to funding issues. Today, a number of startups are offering programs to help level the playing field, reports Nicole Friedman of the Wall Street Journal.
Some of these companies provide buyers with the money to purchase their home, while others buy homes directly on behalf of the buyer and then sell them to the buyer. Programs often target homeowners who need to buy a home before selling their current home.
Startups with cash offer programs are growing rapidly. Companies like Ribbon, HomeLight Inc. and Orchard announced new rounds of funding this month. Knock said this spring he was exploring plans to go public. Opendoor Technologies Inc., a home turnaround company that went public in late 2020, launched a cash offer program in March. Redfin Corp. is piloting a cash offer program in select markets, a spokeswoman said.
The number of software companies that have gone public in the U.S. market so far this year, according to Dealogic, up from 57 in 2020. (WSJ)
Freshworks shouldn’t go bad on delivery
Freshworks won’t have the world of the initial public offering to itself this week, but the cloud-based software company is appetizing enough to stand out in a crowded pack, writes WSJ’s Dan Gallagher. Thirteen companies are expected to debut this week, according to Boutique IPO. The most prominent of these will be Freshworks, which offers a suite of cloud-based software services primarily aimed at small and medium-sized businesses. The company will sell roughly $ 969 million of shares at the top of its recently increased price range. That would give Freshworks a market value of around $ 9.7 billion.
Digital freight start-up Transfix goes public under SPAC agreement
Transfix Inc. plans to go public through merger with specialist acquisition company valuing digital freight start-up at $ 1.1 billion, latest deal shaking up midsize freight brokerage industry , reports Jennifer Smith of the WSJ. The blank merger with G Squared Ascend I Inc. would allow New York-based Transfix, which competes with larger competitors, including the Uber Freight business of Uber Technologies Inc., to tap the public markets for get support to expand its business of using technology to connect shippers to truckers and expand the development of additional services, such as transportation management software, company executives said.
Flying taxi startups seek a leisurely takeoff
If eVTOL aircraft companies are to realize their business ambition of becoming flying taxis, they will first need to ensure that their planes are quiet enough to work in cities without disturbing residents. George Downs of the WSJ examines how quiet these craft must be to take off.
Blumberg Capital has raised $ 225 million for its fifth fund to continue investing in big data and artificial intelligence. The San Francisco and Tel Aviv-based company recently participated in a $ 30 million funding round for the Hunters cybersecurity platform. Blumberg Capital closed its fourth fund in 2017 with $ 206 million.
Fifth Wall, which invests in real estate technology, climate technology and retail, has raised more than $ 140 million for its Climate Tech Fund. Investors in the vehicle, which has a target of $ 500 million, to date include Equity Residential, Hudson Pacific Properties, Invitation Homes, Ivanhoé Cambridge and Kimco Realty Corp. So far, the new fund has supported ICON, Sealed and Turntide Technologies. Fifth Wall also said Peter Gajdo ?? joined the firm as a partner, where he will co-lead the climate technology investment team. He was most recently at IPM Group and Presidio Partners.
Accel has appointed Sagar Sanghvi to the company’s investment team. He was previously Financial Director of Instacart.
Genomics company Pacific Biosciences of California Inc. has acquired DNA sequencing startup Omniome Inc. for approximately $ 316 million in cash and 9.4 million common shares of Pacific Biosciences. Omniome, based in San Diego, was backed by Madrone Capital Partners, ARCH Venture Partners, Domain Associates and others.
Listed F5 has agreed to acquire Threat Stack Inc., a provider of cloud security and workload protection, for $ 68 million. Boston-based Threat Stack is backed by investors like F-Prime Capital, Eight Roads, Scale Venture Partners, .406 Ventures, and Accomplice.
Fivetran, an automated data integration technology provider based in Oakland, Calif., Secured $ 565 million Series D funding led by Andreessen Horowitz, giving the company a valuation of $ 5.6 billion. Previous backers including General Catalyst, CEAS Investments and Matrix Partners have also joined the cycle, along with new investors Iconiq Capital, D1 Capital Partners and Y Combinator Continuity. In addition to the new investment, Fivetran has agreed to acquire HVR, an enterprise data replication technology provider, in a $ 700 million cash and stock transaction.
SmartLabs, a Boston-based startup offering flexible lab and office space for research groups, has raised $ 250 million in Series B funding led by ArrowMark Partners. New investors Winslow Capital Management and Onex Falcon also participated in the round, as well as existing backers ArrowMark Partners, Conversion Venture Capital and Breed’s Hill Capital.
Airwallex, an Australian cross-border payments startup, has secured $ 200 million in a Series E oversubscribed funding round led by Lone Pine Capital, bringing the company’s valuation to $ 4 billion. New investors G Squared and Vetamer Capital also contributed to the new funding, alongside previous backers 1835i, DST Global, Salesforce Ventures and Sequoia Capital China.
Blueground, a New York-based startup with a network of furnished apartments for rent on a monthly or yearly basis, has raised $ 180 million in Series C funding, comprising $ 140 million in equity and $ 40 million of debts. WestCap Group led the equity portion, which included the participation of Geolo Capital, VentureFriends and Prime Ventures. Silicon Valley Bank provided the debt. Tom Gottlieb, co-founder and managing partner of Geolo Capital, will join the company’s board of directors.
Lightricks, a maker of photo and video editing apps based in Jerusalem and New York City, has landed $ 130 million in Series D funding, bringing the company’s valuation to $ 1.8 billion. Insight Partners and Hanaco Venture Capital led the round, which included additional backing from Goldman Sachs Asset Management, ClalTech, Greycroft and Shavit Capital.
Saviynt, a cloud-based identity and access governance platform based in El Segundo, Calif., Has closed a $ 130 million investment from HPS Investment Partners and PNC Bank.
GOOD Meat, a division of Eat Just Inc. that produces meat from animal cells, added $ 97 million in new funding, bringing the total to $ 267 million. Investors like UBS O’Connor, Graphene Ventures, K3 Ventures, Resilience Reserve and others provided the funding. Jim Borel, former executive vice president of DuPont, will join the company’s board of directors.
ClickHouse Inc., creator of an online analytical processing database management system, has secured $ 50 million Series A funding led by Index Ventures and Benchmark.
FloBiz, an India-based neobank for small and medium-sized businesses, has raised $ 31 million in Series B funding led by Sequoia Capital India, Think Investments, Elevation Capital and Beenext.
Propel, a Santa Clara, California-based startup whose technology helps manufacturers deliver customer engagement services, landed $ 20 million in Series C funding. Salesforce Ventures led the round, which included contributions from Ankona Capital, Norwest Venture Partners, Cloud Apps Capital Partners and others.
Altana AI, a supply chain artificial intelligence startup, landed $ 15 million in Series A funding. GV led the investment, which included support from Floating Point, Ridgeline Partners, Amadeus Capital Partners and Schematic Ventures.
Boom Entertainment, a New York-based sports game app maker, has raised $ 15 million in Series A funding led by Sands Capital.
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