A naukri.com initiative
Venture Capital News
Engadget
1M
149
Image Credit: Engadget
OpenAI rakes in over $6 billion in new funding
- OpenAI has raised $6.6 billion in new funding, nearly doubling its value to $157 billion.
- The funding marks the largest venture capital deal in history.
- Thrive Capital led the new round with $1.25 billion, while investors such as SoftBank, Nvidia, and Microsoft also participated.
- OpenAI's AI app ChatGPT has attracted 250 million weekly active users, leading the company to consider raising its subscription price.
Read Full Article
8 Likes
Medium
1M
36
Image Credit: Medium
Top 10 Crypto Venture Capital Firms in 2024
- Crypto venture capital firms are becoming more selective and favoring projects with strong potential for success over sheer volume. These firms will be at the forefront of identifying new opportunities and shaping the next wave of innovation. The most influential venture capital firms in the crypto space include Coinbase Ventures, Pantera Capital, Digital Currency Group, Paradigm, Boost VC, Framework Ventures, Andreessen Horowitz, Blockchain Capital, ConsenSys Ventures, and Dragonfly Capital Partners. Crypto venture capital firms provide essential resources such as capital, networking opportunities, ecosystem expertise, operational and regulatory guidance, and mentorship to portfolio companies. These firms are driving innovation, supporting industry growth, and enabling the next wave of disruptive technologies shaping the cryptocurrency landscape.
- Coinbase Ventures is the investment arm of Coinbase, one of the largest cryptocurrency exchanges in the world. Pantera Capital is known for its far-sighted approach to blockchain investments and has diversified its portfolio across various verticals. Digital Currency Group’s primary focus is on the long-term potential of blockchain technology and has built an expansive portfolio of more than 100 companies. Paradigm takes a long-term, research-driven approach, and is dedicated to advancing the broader ecosystem by investing in foundational Web3 infrastructure, DeFi platforms, and open-source blockchain projects. Boost VC offers hands-on support and fosters a strong community of innovators.
- Framework Ventures is a venture firm with a focus on decentralized finance (DeFi) and blockchain-based infrastructure. A16z’s large-scale crypto investments have helped accelerate innovation in blockchain infrastructure, NFTs, and decentralized applications. Blockchain Capital provides capital to early-stage companies while also offering strategic guidance, partnerships, and access to its extensive network of industry leaders. ConsenSys Ventures focuses primarily on backing startups that build on the Ethereum blockchain.
- Dragonfly Capital Partners was founded in 2018 with a mission to bridge the gap between Western and Eastern crypto markets. Crypto venture capital firms provide more than just financial backing; they offer a broad range of support. By providing these essential resources, crypto VCs not only increase the likelihood of success for startups but also boost their returns. These firms are driving innovation, supporting industry growth, and enabling the next wave of disruptive technologies shaping the cryptocurrency landscape.
Read Full Article
2 Likes
Insider
1M
171
Image Credit: Insider
Tiger Global is backing OpenAI in new $6.6 billion investment round
- Tiger Global Management is backing OpenAI in a new $6.6 billion investment round.
- OpenAI raised the funding at a post-money valuation of $157 billion.
- Other investors in the round include Thrive Capital, ARK Venture Fund, Microsoft, Nvidia, Fidelity, and Altimeter.
- The closure of the funding round coincided with the resignation of three top leaders at OpenAI.
Read Full Article
10 Likes
Medium
1M
402
Image Credit: Medium
A founder’s guide to choosing the right investor
- Choosing the right investor for your business is critical, so founders must ask the right questions regarding who they are getting involved with.
- First, founders need to understand whether the investor's philosophy aligns with their plans for their business. They should therefore examine the investment firm's website and find answers to basic questions such as the target sector, preferred stage, geographical focus and average cheque size.
- Once these key questions have been answered, founders should then consider more detailed aspects of the investment philosophy by having a conversation with a member of the investment team.
- Background research is also critical to finding the right investor. Founders should dig deep into the investor's portfolio, ask for references, and check online coverage, such as in Landscape and Glassdoor, and news coverage.
- Investors can be broadly defined as seeking one-off, high-risk single opportunities that can turbocharge growth and make substantial returns or steadier returns across the portfolio.
- Trust is crucial to the relationship between founders and investors. Founders must trust that the investor will always be honest and open, and investors must trust founders that they will be open to questions and advice.
- Empathy is equally important. Founders and investors must be able to understand each other's goals, and see their potential for growth in the same way, to ensure there is mutual success in the future.
- In summary, getting along well with an investor is key to having an investor-founder relationship that is successful. Founders should learn more about their potential investors, what they are looking for, and if the fit is right for them.
- If you would like more information about the investor-founder relationship or would like to learn more about fundraising, contact Luke Williams.
Read Full Article
24 Likes
Medium
1M
90
Staying Nimble and Moving With the Markets
- CRV, a venture capital firm, has made the decision to refocus on early-stage technology investing.
- They have released the remainder of Select Fund II ($275 million) to their Limited Partners.
- This decision aligns with their history of adjusting course when markets shift.
- Their next fund will have a smaller, tighter focus to adapt to the constantly shifting tech landscape.
Read Full Article
5 Likes
Medium
1M
49
Image Credit: Medium
Raising Money for Your Startup — SAFE Loans
- The Simple Agreement for Future Equity loan (SAFE) is an effective solution for early-stage startups as it offers a flexible and simple way to bring investors on board without the immediate complexities of traditional equity rounds.
- SAFE notes are a relatively straightforward contract that provides an investor with the right to purchase equity in a company at a future date where the company has raised its next round of funding.
- SAFE notes are appealing to startups as they do not require inevitable negotiations, which more formal fundraising methods require.
- The post-money valuation cap is a crucial component of a SAFE note as it defines the maximum valuation at which the SAFE will convert into equity, offering clear guidelines on ownership stakes.
- Another crucial benefit of using a SAFE loan for a startup is that it can provide companies the opportunity to quickly raise funds without the complexity of negotiating and closing separate rounds with each investor and without worrying about the maturity date, interest rate, or repayment schedule.
- Due to being a straightforward and one-document agreement, with fewer negotiation points than a full equity round, it typically only includes the valuation cap, which allows for straightforward discussions between the parties involved.
- The simplicity that SAFE notes offer companies allows them to focus on growth and scaling operations while bringing clarity and certainty to both investors and founders.
- A SAFE note is a powerful tool to ensure efficiency, flexibility, simplicity, transparency, and clarity for both parties involved.
- Using a post-money valuation cap in SAFE notes ensures that both startups and investors understand the future stakes in ownership clearly, regardless of the company's growth.
- At the heart of SAFE notes is the idea of minimizing complexity by reducing legal fees, time spent on negotiations, and clear terms around ownership and valuation.
Read Full Article
2 Likes
SiliconCanals
1M
420
Image Credit: SiliconCanals
Niels Vejrup Carlsen launches Final Frontier: New Nordic VC fund to back European space and defence startups
- Final Frontier, a Nordic VC fund specializing in space and defense technologies, has officially launched.
- The Danish VC aims to raise €150M to enhance the commercial development of space and the innovative capabilities of the European defense sector.
- The fund will focus on the Nordic region and invest in dual-use technologies with broader public benefits.
- Niels Vejrup Carlsen, the founding partner, highlights the importance of space and defense in responding to military threats and geopolitical conflicts.
Read Full Article
25 Likes
Saastr
1M
388
Image Credit: Saastr
Dear SaaStr: Why Do Founders Hire So Many Terrible VPs?
- Founders often hire terrible VPs due to a combination of factors.
- They trust their team and need to rely on others to scale.
- Hiring VPs in areas where founders lack expertise can lead to deception.
- To mitigate this, founders should seek advice from experienced leaders in the respective roles.
Read Full Article
23 Likes
Medium
1M
185
Image Credit: Medium
Cyclic Materials: Circularity of Rare Earth Elements as a Building Block for the Energy Transition
- Less than 1% of the rare earth supply is currently recycled due to difficulties in removing magnets.
- Cyclic Materials has developed a circular supply chain solution to recover and recycle rare earth elements from e-waste.
- Their innovative approach reduces reliance on virgin resource extraction and provides domestically sourced alternatives.
- Led by experienced experts, Cyclic has formed strategic partnerships and plans to scale its technology globally.
Read Full Article
11 Likes
Saastr
1M
217
Image Credit: Saastr
How to Build Pipeline and GTM Alignment in 2024 with Datadog’s CMO Sara Varni
- Sara Varni, Datadog’s CMO, shares how to build pipeline and create alignment across sales and marketing in the latest edition of SaaStr’s Workshop Wednesday.
- Studying joint targets between sales and marketing isn’t always the norm, but having a holistic pipeline view is crucial.
- The four-horsemen model is a clever way to see how inbound, SDR/BDR, AEs, and partners feed the overall numbers.
- It’s important to look at all these sources together because if you look in isolation, you might not see where things are going wrong or right.
- Datadog drives accountability through monthly meetings and quarterly reporting on the horsemen.
- Marketing needs to take ownership of pipeline and share skin in the game with sales.
- Develop a joint action plan rather than assigning responsibility to one department.
- Studying targets between sales and marketing isn’t always the norm, but having a holistic pipeline view is crucial.
- Think about how you’re setting your targets so there is joint responsibility for driving pipeline.
- Quarterly reporting on the horsemen and transparency are great ways to drive accountability.
Read Full Article
13 Likes
Medium
1M
117
Image Credit: Medium
Seed Funding: Fueling the Growth of Your Startup
- Seed funding is the first significant funding round for a startup, providing capital to fuel growth.
- Seed funding is different from other rounds of funding as it focuses on transitioning from idea validation to building a scalable business.
- Before seeking seed funding, startups should ensure they have a clear plan, a minimum viable product (MVP), and evidence of market demand.
- Startups should utilize seed funding to drive growth, focus on unit economics, and prepare for the next funding round, Series A.
Read Full Article
7 Likes
Medium
1M
393
Image Credit: Medium
Navigating an M&A process as a seed stage company
- The early stage M&A market continues to tick up slightly, but it is still a slower time for exits, with pre-seed and seed stage companies as the most common targets.
- Startup founders should build relationships as early as seed stage with later-stage players and strategic leaders in their verticals to potentially result in future strategic partnerships or customers.
- Startups considering an M&A exit should prepare materials for their data room in advance and stack rank potential acquirers to drive momentum and competitive offers.
- Context of what a deal might look like in a startup's situation and in the current macro environment should be understood when deciding to move forward with an M&A exit.
- Early stage M&A deals are usually founder-led, and the deal team includes the founders, their legal team, and their board of directors/board chair, if the company has one.
- Keeping an open line of communication with investors during an M&A process is important; investors can be a helpful member of your deal team and emergency bridge capital source.
- Negotiating key terms upfront during the term sheet stage helps to lessen lengthy negotiation cycles later.
- Navigating the M&A process as an early-stage company is not giving up on the company vision; it's about being strategic, prepared, and open to opportunities that accelerate company growth.
- Following the tips mentioned in the article can position early-stage companies to seize opportunities and achieve the best possible outcome for the company, team and vision.
- M&A deal activity on Carta increased by 10% in Q4 2023 over the previous quarter, then increased by 5% in Q1 of this year, and another 4% increase in Q2 2024.
Read Full Article
23 Likes
Global Fintech Series
1M
190
Image Credit: Global Fintech Series
NY Fund Plans to Pioneer AI-Assisted Mini Venture Capital for Small Businesses, Targets $1B in Multi-Series Fund Launch
- Vector Capital Solutions announces the launch of its Mini Venture Capital Program, aiming to mobilize $1B for small businesses.
- The program introduces equity funding with initial investments starting at $10,000, targeting small businesses historically left out of venture capital opportunities.
- Vector Capital Solutions plans to raise $1 billion in multiple private equity funds, with the first round beginning in October 2024.
- The Mini Venture Capital Program offers a low entry barrier, AI-assisted management, an industry-agnostic approach, and focuses on long-term growth.
Read Full Article
11 Likes
Medium
1M
90
Image Credit: Medium
Process Breakdown: Developing a mini-brand for Lyxos.
- The client wanted a quick turnaround for developing the Lyxos mini-brand.
- Mood boards were created to establish the brand's desired minimal, black and white aesthetic.
- Two brand directions were developed, one focusing on simplicity and scalability, and the other incorporating geometric shapes and patterns.
- The chosen brand direction incorporates line icon system, geometric illustrations, and line patterns, giving a professional yet tech-inspired vibe.
Read Full Article
5 Likes
Saastr
1M
63
Image Credit: Saastr
Your Core CAC vs. Your Expansion CAC: One Trophy, But Two Goals
- Startups often treat every customer the same for customer acquisition cost (CAC) purposes, which is a mistake when scaling.
- As startups expand into new market segments, new verticals, and new buyers, the CAC will be higher in those areas.
- A framework is suggested where 80% of new customers should hit sustainable CAC goals, while 20% should break even to enter new markets.
- It is important to give new market segments 24 months to reach the same CAC efficiency as the core.
Read Full Article
3 Likes
For uninterrupted reading, download the app