This newsletter gathers together the week’s most interesting content related to the venture capital and startup ecosystem. I curate this from my personal reading in Feedly and email it as a newsletter on Saturday, Pacific time, each week. There is little or no commentary included. If you want this in your email every Saturday click here.

I help startups tell their story at https://archimedes.studio

Venture Trends Newsletter, Issue #4

This weeks newsletter has some truly insightful stories. Paul Graham on reasons for startup failure kicks off the issue. AngelList Venture CEO Avlok Kohli explains their new “rolling venture fund” for new angels and seed investors. There is wonderful data science applied to startup valuations, tempo of funding rounds, prior investors as a signal of future value…. and lots more. Enjoy.

Snowflake Set To Be Worth $12.4 Billion After New Funding, Making It One Of Tech’s Most Valuable Startups — Forbes

Forbes / Saved by Keith Teare

Snowflake CEO Frank Slootman came out of retirement after a successful stint at ServiceNow to run … [+] one of the cloud’s fastest-growing private companies. Snowflake Data company Snowflake, which operates in the booming cloud computing market, is set to become one of tech’s most valuable private companies in the world.

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Europe’s A/O PropTech is a new €250M fund dedicated to companies disrupting real estate

Fundings & Exits — TechCrunch / Saved by Keith Teare

A/O PropTech is a new European VC officially launching today, after raising €250 million of so-called “permanent capital” to invest in technology companies disrupting real estate. It’s this “permanent” approach — seeing the firm structured more like a corporate with various shareholders, rather than a traditional venture capital fund that typically has a life cycle of 2–5 years — which allows A/O PropTech to be stage agnostic.

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AngelList Launches ‘Rolling Venture Fund’ In Bid To Make Fundraising Easier For New VCs — Forbes

Forbes / Saved by Keith Teare

AngelList Venture CEO Avlok Kohli thinks a new rolling venture fund product will make it easier for … [+] emerging fund managers to invest in more startups. AngelList One of the less-discussed realities of venture capital is that startup investors are typically backing entrepreneurs with other people’s money.

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The 14 Largest Global Startup Funding Rounds of January 2020 — AlleyWatch

AlleyWatch / Saved by Keith Teare

The 14 Largest Global Startup Funding Rounds of January 2020

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Here’s How Some VC Firms Are Trying To Keep Founder Mental Health In Mind — Crunchbase News

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Crunchbase News / Saved by Keith Teare

When Ezra Galston was spinning up Starting Line, a Chicago-based venture capital fund, the pressures of raising “almost broke” him. And that was with his wife, a licensed therapist, and his own therapist in his corner.

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Africa’s venture space attracts global interest — Atlantic Council

Atlantic Council / Saved by Keith Teare Fri, Feb 7, 2020 Africa’s venture space attracts global interest AfricaSource by Aubrey Hruby Staff of Twiga Foods, a Kenya-based food logistics startup, unload produce from a company truck. Read More

The January 2020 US Venture Capital Funding Report — AlleyWatch

AlleyWatch / Saved by Keith Teare

Over $8.2B raised by US startups in January; up ~60% from December!. Find out where it went… Today, I take a look at the state of venture capital and seed funding during the month of January nationally, where over $8.2B was invested into US startups. Analyzing some publicly available data from our friends at CrunchBase, we break down the aggregate statistics for all funding deals by stage of funding (Early Stage [Angel, Pre-Seed, Seed], Series A, Series B, and Late Stage [Series C+]) including mention of notable rounds. Read More

Relentless Coaching Prevents Failure

The Startup — Medium / Saved by Keith Teare

Even the best coaches in the world cannot bend the will of individuals who are not willing to be coached. How do you coach if someone is not coachable? How can you identify the people who are not ready to be coached?

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Top 10 Must-Listen Startup Podcasts of 2020

The Startup — Medium / Saved by Keith Teare

Top 10 Must-Listen Startup Podcasts in 2020 — Whether you work at a startup or not, these are some of the best business podcasts out there that you can’t afford to miss.Photo by Mohammad Metri on UnsplashSpeed of learning is the new competitive advantage.

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Predicting a Startup Valuation with Data Science

Medium / Saved by Keith Teare

We classified each stage into higher level classes using the distributions above, as one of Early (Angel, Pre-Seed, Seed), Growth (Series A, B, C), Late (Series D, E, F, G), or Private IPO (Series H, I). Read More

How much runway should you target between financing rounds?

Medium / Saved by Keith Teare

How much runway should you target between financing rounds?Entrepreneurs have limited access to hard data that could help them make sound decisions when trying to build a successful new company.

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Dissecting startup failure rates by stage

Medium / Saved by Keith Teare

Dissecting startup failure rates by stage — A few weeks ago in an article titled “How much runway should you target between financing rounds?”, we discovered that the conventional wisdom of targeting 12–18 months of runway between financing events could be a factor that leads to startup failure.
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Introducing the Investor Cluster Score™ — a measure of the signal produced by a startup’s…

Medium / Saved by Keith Teare

Essentially, we’ve created an algorithm that confirms what you would otherwise presume. Consider two freshly funded startups, Gamma and Theta. If Gamma is backed by Sequoia Capital, Benchmark, and Accel Partners, and Theta is funded exclusively by Sequoia Capital, then you would intuitively consider that Gamma must be more attractive in some way, even though Sequoia Capital is in both sets.

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Demystifying Startup Equity with Data Science

Medium / Saved by Keith Teare

Demystifying Startup Equity with Data Science — What percentage of ownership do investors acquire at each financing stage?If you’re a startup founder, you may struggle to find a reasonable percentage of equity to give your investors in return for their capital. Read More

What Does Good Returns Look Like? Hear From The VC Experts | Investment News | Trusted Insight

Trusted Insight Platform / Saved by Keith Teare

Trusted Insight CEO Alex Bangash and fellow experts discuss how they define and benchmark returns. They also talk about how their expectations differ depending on the stage they’re investing in and the benefits of seeking superior returns versus quick returns.

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A SEC Safe Harbor For Crypto

AVC / Saved by Keith Teare SEC Commissioner Hester Pierce proposed a “safe harbor” for crypto projects that raise money before they are sufficiently decentralized. I am a big fan of “safe harbors”and wrote a bit a few years ago about why I like them so much and why a crypto safe harbor is such a needed and good idea. Read More

Buying Marketplaces

Points and Figures / Saved by Keith Teare

“The news that the Intercontinental Exchange wanted to buy $eBay shook $ICE stock. It’s a super interesting move in my opinion. For people that mourn short term thinking in publicly traded companies, ICE’s idea isn’t short term thinking.

Mainline exchanges are not going away despite what the startup crowd says. They have too much inertia and network effects built into their businesses. They have cash. They have a regulatory moat. Like stubborn monoliths planted deep into an obstacle course they are something to be wary of and any entrepreneur has to negotiate the thicket to try and build a business.”
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Ranking Countries With Medium-Sized Startup Scenes

Crunchbase News / Saved by Keith Teare In startup funding, there are hubs where most investments originate and there are so-called venture deserts, where deals hardly ever happen. And then there are places in the middle, which see a steady, but not massive, number of funding rounds. Read More

Sequoia Expands Seed Investing Team as Rivals Loom

The Information / Saved by Keith Teare

Sequoia Capital, already one of the most influential venture capital firms in the world, is putting more boots on the ground to make sure it doesn’t miss out on the next big early-stage startups. Read More

Sweat Equity Ventures Launches New Value Accelerator Model of Venture Capital — PR Web

PR Web / Saved by Keith Teare Sweat Equity Ventures “I’ve seen first hand that while funding is important, a trusted partner who does the work is just as essential,” said Dan Portillo, founding partner at SEV.
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Venture capital helped fuel Silicon Valley. Is it also destroying it? — The Mercury News

The Mercury News / Saved by Keith Teare

Google “the next Silicon Valley” and you’ll find stories about Chicago, Boise, Pittsburgh, Los Angeles, even cities in Europe and India. For decades now, everyone has been trying to replicate the Bay Area’s booming, venture capital-backed technology industry. Read More

1,000 True Fans? Try 100

Andreessen Horowitz / Saved by Keith Teare More than a decade ago, Wired editor Kevin Kelly wrote an essay called “1,000 True Fans,” predicting that the internet would allow large swaths of people to make a living off their creations, whether an artist, musician, author, or entrepreneur. Read More

Tips for a Successful Cross-border VC Model — Entrepreneur

Entrepreneur / Saved by Keith Teare While investing internationally might pose additional risks and challenges, it can also be rewarding both economically and educationally, for VCs in any market

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2020 United States Venture Capital and Private Equity Database Now Available — PR Web

PR Web / Saved by Keith Teare BOSTON (PRWEB) February 05, 2020

Massinvestor is excited to announce the launch of its industry leading 2020 United States Venture Capital and Private Equity Database https://www.massinvestor.com/national_vc.htm, which profiles nearly 5,000 Venture Capital, Private Equity, and Family Office investment firms in the U.S. Read More

The most-funded VC companies in January 2020 — PitchBook News & Analysis

PitchBook News; Analysis / Saved by Keith Teare

Across industries, verticals and stages, more than 950 VC companies received funding during the first month of the new decade. Of those, the top ten include two aerospace companies, an electric vehicle sharing platform and a company offering flexible access to gyms and workout classes — and more than half are California-based.

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A look ahead: What to expect from venture capital in 2020 — PitchBook News & Analysis

PitchBook News; Analysis / Saved by Keith Teare

We recently hosted a webinar with NVCA, Silicon Valley Bank and Carta to look at the findings from the Q4 2019 PitchBook-NVCA Venture Monitor and discuss what lies ahead for venture capital in 2020.

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This is why startups grow. They make something customers love so much that they spontaneously recommend it. It’s the only way to get exponential growth.

@paulg Tweets / Saved by Keith Teare

Andreessen Horowitz Raises $750M For Its Third Bio Fund

Crunchbase News / Saved by Keith Teare

On Tuesday, Andreessen Horowitz (often abbreviated as “a16z”) announced it raised $750 million for it’s third fund, earmarked for biotechnology and health care investing. Subscribe to the Crunchbase Daily

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Front Series C Deck

Medium / Saved by Keith Teare

Once is a fluke, twice is a coincidence, three times is a trend… I’m once again making public the deck I used to raise our latest round of funding! Based on the feedback I’m getting from readers, this is easily one of the highest-leverage activities for me: it takes about an hour to put together, and then hundreds of thousands of people can see it and use it in their own entrepreneurial journey. Read More

What’s Libra? China Takes the Stage

The Barefoot VC / Saved by Keith Teare

While company after company pulled out of Facebook’s Libra project, the US Congress grilled Mark Zuckerberg, the SEC halted Telegram’s token offering, and several US legislators called for a digital dollar, China had a few words for the world… Read More

The Final Edition

The Barefoot VC / Saved by Keith Teare

Over two years ago, in the early days of the ICO boom of 2017, we launched the Blockchain Weekly. When we started the newsletter, there was a plethora of misinformation in the space and we wanted to create a trusted source to sift through it and provide commentary when needed.

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Diversity Matters in Venture Capital — Thrive Global

Thrive Global / Saved by Keith Teare Here is the “secret menu” metaphor I often use when asked by many to describe the current state of diversity in Venture Capital: If you go to an authentic Chinese restaurant in a large city like New York or San Francisco, and if you’re not Chinese, they will give you a standard menu that has items in both English and Chinese.

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Venture Capital’s New Normal: Outsized Checks and Unsolicited Offers

The Information / Saved by Keith Teare

Last year, Papaya Global, a financial services business based in New York City and Tel Aviv, pitched investors on its hopes of raising $15 million to expand the business, according to a person familiar with the situation. Read More

We Need Venture Capital — It’s Driving Innovation — The National Interest Online

The National Interest Online / Saved by Keith Teare

A curious claim: “Subtract venture capital from the landscape of late-twentieth-century innovation, and we would have reached the new millennium with roughly the same technological capacities.” You can find it about halfway through “Is venture capital worth the risk” by Nathan Heller in The New Yorker. Read More

The venture capital industry can’t keep growing forever — Quartz

Quartz / Saved by Keith Teare

Over the past 60 years, the venture capital industry has expanded from a few, small partnerships primarily located in Silicon Valley and Boston into a global industry that invests more than $250 billion per year. Read More

Women-owned venture capital firms are finally on the rise — Quartz

Quartz / Saved by Keith Teare In 2010, only 3.6% of venture investments were made into companies that were founded by all-women teams. Those investments were about half the size of the average venture deal, so all-women teams only received 1.8% of total capital invested.

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How and why our startup failed

Medium / Saved by Keith Teare

Our biggest problem was that our idea/vision, whilst plausible and to all intents and purposes ‘good’, was not evoking visceral excitement. There’s a bias in there too; we knew we could present and pitch well, so there was an air of complacency that we’d always be able to ‘sell the vision’.On reflection, efforts would have been better spent tweaking how we position our vision than trying to get traction for an idea that investors weren’t yet jumping at.
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China is the New Leader of AI Venture Capital Investment — Analytics Insight

Analytics Insight / Saved by Keith Teare It might come as a surprising fact that there are presently 14 Chinese AI organizations valued at $1 billion. These unicorns worth consolidated comes to $40.5 billion, as per a report China Money Network released during the World Economic Forum’s Summer Davos gathering in Beijing. Read More

The Long Buy

AVC / Saved by Keith Teare

Seed funds tend to get tapped out after two or three rounds. And growth funds don’t come into an opportunity until the company has raised three or four rounds. But the traditional early-stage fund can start in the seed round, and keep investing round after round after round until the company no longer needs to raise capital. This is super attractive and not appreciated as much as it should be.
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Germany Is Afraid of America’s ‘Big Tech’ — The National Interest Online

The National Interest Online / Saved by Keith Teare

Perhaps the only people more terrified of Big Tech (AppleMicrosoftAlphabetAmazonFacebook) than American anti-tech activists are America’s economic competitors. Take Germany, for instance. Read More

Thoughts on Corporate Venture Capital (CVC)

The Times of Israel / Saved by Keith Teare

Out of many types of corporate open innovation, Corporate Venture Capital (CVC) is one of the most immediate ways to gain access to ground-breaking technologies and trends. Though not cheap, CVC can attract ecosystem’s attention, expose corporations to new business models and technological partnerships, and solve the issue of the “shrinking market share” — if done right. Read More

The “entrepreneur personality” is a myth

The Startup — Medium / Saved by Keith Teare

Still, personality plays a significant role in startup success

For decades, researchers and business people have tried to identify a single representative personality profile of an entrepreneur. Read More

How To Ensure You Are Not Setting Your Startup For Failure

The Startup — Medium / Saved by Keith Teare

If you want to build a successful start-up, you have to burn all the bridges. While I was trying to build the start-up, I was doing a master’s in the US, had a limited student visa, and also got a chunky student loan at an absurd interest rate which I had no clue how I was going to pay back. Read More

What Nutanix got right (and wrong) in its IPO roadshow — TechCrunch

TechCrunch / Saved by Keith Teare

What Nutanix got right (and wrong) in its IPO roadshow Back in 2016, Nutanix decided to take the big step of going public. Part of that process was creating a pitch deck and presenting it during its roadshow, a coming-out party when a company goes on tour prior to its IPO and pitches itself to investors of all stripes. Read More

The Tyranny of warm introductions

Medium / Saved by Keith Teare

Yours truly, babbling away. I was recently part of the TechCrunch Justice event, where one of the topics explored was how a company can build a more diverse workforce in tech. One of my biggest take-aways of that discussion was that companies need to take a closer look at their hiring practices. Read More

Andrew Sullivan’s brilliant analysis of the cancellation of Alastair Stewart. If you want to learn how to write well, I can’t imagine a better model.

@paulg Tweets with Links / Saved by Keith Teare

Venture Capitalist Ed-Tech Investments Swell Over Last Decade, Report Finds — Education Week

Education Week / Saved by Keith Teare

International investment in educational technology has spiked over the last decade with venture capitalists pouring 14 times more into the sector in 2019 than they did in 2010, according to a report released Tuesday.

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How to Define a Product Scope

The Startup — Medium / Saved by Keith Teare

How to Define a Product ScopeBusinesses should use a 3-step process to define the product scope of every project they work on. It’s one of the best methods to manage resources efficiently and to ensure you’re making critical design and development decisions based on concrete, validated evidence. Read More

The Art of Screening the Deal

Medium / Saved by Keith Teare Culturally, our firm is rooted in the idea that “saying no” to a venture investment is easy. Take a look through Bessemer’s Anti-Portfolio and you’ll see exactly how easy it can be.

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