Share to Twitter Share to Linkedin Anis Uzzaman (アニス・ウッザマン ) is the General Partner & CEO at Pegasus Tech Ventures | Chairman of Startup World Cup. After years of rising real estate prices and a robust stock market, the economy started to slow down last year. Some experts say we are already in a recession; others say one could arrive soon. News headlines cite an increasing number of layoffs in the tech industry. Despite the negative environment, a recession may be a good time for corporate venture capital to thrive. Recessions Are Tough For Startups But Also A Time For Innovation Crunchbase News reported that “venture and growth investors in private companies scaled back their investment pace significantly in the latter half of 2022.” Global venture funding was down 35% year over year in 2022. A recession typically results in a lower level of traditional venture capital investment, lower startup valuations and exits that take longer … [Read more...] about Why A Recession Can Be Good Timing For Corporate Venture Capital
Balyasny venture capital
SVB Had Close Financial Ties With Al Gore’s Venture Capital Firm
Silicon Valley Bank (SVB), which collapsed in a bank run last week before it was taken over by federal regulators, managed portions of a multibillion dollar collection of funds at a venture firm where former Democratic Vice President Al Gore is an adviser and senior partner, according to a report by a due diligence watchdog. SVB had custody of a portion of 14 funds managed by Kleiner Perkins, a major venture capital firm where Gore is employed, which together totalled $2.68 billion, although the value actually held at SVB when it collapsed is unknown, according to a report by Castle Hall Diligence. High-level partners at Kleiner Perkins banked with SVB, and the bank provided loans to many Kleiner-affiliated startups, according to the New York Times, citing two sources familiar with the matter. (RELATED: Shocker: One Of America’s Most Politically Connected Banks Is Due For A Huge Profit Off Other Bank’s Failure) The bank also provided a $500,000 loan to Kleiner Perkins … [Read more...] about SVB Had Close Financial Ties With Al Gore’s Venture Capital Firm
Private Equity Vs. Venture Capital: Which Is Right For Your Startup?
Share to Twitter Share to Linkedin Financial Consultant & author of Deep Finance, Glenn has spent the past two decades helping startups prepare for funding or acquisition. Securing funding is a crucial step for any startup looking to grow and succeed. As most business founders know, it can be difficult—if not impossible—to raise debt financing to fund new ventures. This is because traditional banks are not structured to provide loans to businesses that fall outside their risk tolerance. This leaves equity investment as the only option for most early-stage enterprises. Equity investors provide funding for startups in exchange for an ownership stake in the business. There are many types of equity investors, but the most well known and frequently used are private equity and venture capital. While these forms of investment share some similarities, they differ in many ways. Private equity investors target established companies that have a proven … [Read more...] about Private Equity Vs. Venture Capital: Which Is Right For Your Startup?
Skin In The Venture Capital Game
Share to Twitter Share to Linkedin Michael Szalontay is a Co-founder and General Partner at Flashpoint , an international tech investment firm. “If you do not take risks for your opinion, you are nothing.” —Nassim Nicholas Taleb Venture capital (VC) is a complicated business with probability theory at its heart. Basically, you are swinging at the fences with a wide dispersion of potential outcomes and returns, just like in baseball—from home run to strikeout. “Skin in the game” alludes to the vested interest of the VC manager in his fund. As private equity and VC funds are invariably structured as partnerships, the manager’s participation in the equity at risk is determined by the commitment of the general partner (GP) of the fund as a share of total commitments. Historically, GP commitments tended to be 1% for tax reasons, as this was the minimum requirement set by the IRS to get favorable treatment as a fund . The fund … [Read more...] about Skin In The Venture Capital Game
SVB Capital Owned Pieces Of Top VC Firms. With A Sale Ongoing, Their Future Is In Flux
Share to Twitter Share to Linkedin Firms like a16z, Index and Sequoia can usually control who buys a stake in their blue-chip funds. But with SVB Capital for sale, they’re in a rare powerless position unless their stakes are split up for separate sale. Amid the many questions arising from the collapse and ongoing sale of Silicon Valley Bank, there is one that’s top of mind for many investors: what will happen to one of the bank’s “crown jewels,” its ownership stakes in some of tech’s best-known venture capital firms including Accel, Andreessen Horowitz, Index Ventures and Sequoia. Venture capital firms typically tightly control who can invest in their funds, and selling a stake usually requires approval by the firm itself. But the situation at SVB Capital, a subsidiary of SVB Financial Group (the former parent of SVB until the bank was put under FDIC control ), is unusual—and more complex. And it leaves the blue-chip VC firms in a rare position of … [Read more...] about SVB Capital Owned Pieces Of Top VC Firms. With A Sale Ongoing, Their Future Is In Flux
Tenaya Capital Closes $372 Million For First Post-Lehman Fund
Share to Twitter Share to Linkedin Image via CrunchBase Tenaya Capital , a mid- to late-stage technology venture capital firm, has closed $372 million for its latest fund. Tenaya Capital VI, which was oversubscribed from its $300 million target, is the first fund the firm has raised since spinning out from Lehman Brothers in 2009. Tenaya has more than $1 billion under management including Tenaya IV ($300 million) and Tenaya V ($365 million). The firm wanted to keep the new fund at roughly the same size as its last one, believing that that is the right size for a firm with five partners, said general partner Tom Banahan . Tenaya invests in enterprise software, consumer Internet, IT infrastructure, communications and electronics. Tenaya IV was a top quartile fund and Tenaya V is on track to meet that mark as well, Banahan said. Tenaya, previously known as Lehman Brothers Venture Partners, was in the middle of historic events when … [Read more...] about Tenaya Capital Closes $372 Million For First Post-Lehman Fund
What is venture debt—and how will SVB’s collapse affect it?
The startup community is still reeling after the collapse of Silicon Valley Bank . The California-based lender was taken over by the Federal Deposit Insurance Corp. late last week after several VC firms advised companies they invest in to pull funds from the bank, leading to a bank run. On Monday, the bank resumed business with a new CEO as Silicon Valley Bridge Bank, as it continues to look for a buyer. In addition to providing banking services for many tech startups, SVB was also the largest issuer of venture debt. According to a report by The Information , SVB had about $6.7 billion in loans to early- and mid-stage private companies in 2022. For startups, several big questions still loom: What will happen to SVB’s clients with venture debt? And what will its collapse mean for this important source of funding? Here’s what you need to know. What is venture debt? Venture debt is a type of loan typically offered to early-stage, high-growth companies from … [Read more...] about What is venture debt—and how will SVB’s collapse affect it?
SVB’s Venture Debt Is Not All Good
Share to Twitter Share to Linkedin Tim Mayopoulos, the new CEO of Silicon Valley Bank, advocated on Tuesday that its leading venture capital clients shift their deposits to the newly built bridge entity. The FDIC's takeover of SVB VB sent shockwaves through global markets and ravaged stocks last week. To contain the effects of the bank’s collapse, the FDIC appointed Mayopoulos, a former Fannie Mae FNMA CEO, to head Silicon Valley Bridge Bank N.A., demonstrating the FDIC’s commitment to stability in times of crisis. SVB is a major driving force in healthcare startups: 54% of all VC-backed U.S. healthcare companies that have raised rounds since 2021 have an affiliation with the bank. An impressive 72% of these same enterprises that have obtained more than $40 million through venture capital since 2021 also maintain a banking relationship with SVB. SVB has gained many passionate supporters, including Byron Deeter and Hemant Taneja . But … [Read more...] about SVB’s Venture Debt Is Not All Good
Silicon Valley Bank’s Demise Tightens Spigot On $30 Billion Of Venture Lending
Share to Twitter Share to Linkedin Startups borrowed so they didn’t have to give up equity. After the collapse of market leader SVB, they should expect higher rates and fewer deals in the near future. I n 2017, when David Rabie first launched Tovala, which pairs a smart oven with a food-delivery service, the idea seemed a little crazy. Then came the pandemic and the idea took off. He’s raised around $100 million for the Chicago-based business, and also borrowed a few million dollars in venture debt from Silicon Valley Bank as an alternative to selling pieces of the company. That allowed him to expand Tovala, which now employs 350 and has three food facilities in Illinois and Utah. “SVB lent us money when the business was deeply unprofitable and early stage,” Rabie tells Forbes. “A lot would have been different if SVB had not lent us the money at the Series A [venture-funding round]. There were not other banks willing to do that.” Rabie is just … [Read more...] about Silicon Valley Bank’s Demise Tightens Spigot On $30 Billion Of Venture Lending
How We Can Empower Women-Owned Business Ventures And Help Resolve Economic Disparities
Share to Twitter Share to Linkedin Gerry Poirier is CEO and Founder of AngeLink , a social crowdfunding platform powered by women. The data is clear: There is a huge economic disparity between genders in finance and accessing funding. After three decades of working in the finance industry as almost always the only woman in the room, I know this too well. At every level, there is a lack of gender diversity, from the investment tables to the entrepreneurs receiving funding. A lack of access to financial resources, networking and support means that female founders and their business successes now equate to a $3 trillion missed investment opportunity . Something needs to change. The Potential Of Female Founders The number of women starting businesses is increasing every year and now exceeds male-led businesses. A report from Lendio revealed that there are 11.3 million women-owned businesses in the U.S., generating more than $1.6 … [Read more...] about How We Can Empower Women-Owned Business Ventures And Help Resolve Economic Disparities