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Crowdfunding Sites Launch Preemptive Strike on Fraud - June 25, 2012
Articles discussing the danger of fraud in crowdfunding and attempts to address it: Bloomberg Businessweek, The Portland Press.
Interviews from the Venture Forward Conference - June 20, 2012
DiligentDeal, together with Gust, organized VentureForward, a highly curated conference about startup funding. Several speakers were interviewed by Deirdre Bolton of Bloomberg TV's "Money Moves." Links to the interviews follow:
Interview with Esther Dyson; Interview with Howard Morgan; Interview with David S. Rose and Bob Rice.
Facebook backer turns his attention to Brazil - June 10, 2012
Kevin Efrusy, the partner at Accel who spearheaded the firm's initial $12.7 million investment in Facebook in 2005, has made several new investments in Brazil over the last year.
Women in venture capital - June 8, 2012
Women owned ventures account for 12% of entrepreneurs seeking angel capital. Of these, only one in four received angel investment during the first half of 2011. Less than 5% of new businesses funded by venture capital have women on their management team (much less as owners).
Felicis Ventures raises $70 million fund - June 7, 2012
The "super angel" investment firm run by Aydin Senkut is doing bigger deals and writing bigger checks.
Hundreds of new technology incubators in the Los Angeles area - May 17, 2012
Tech accelerators are booming in Los Angeles, boosting prospects for technology startups, and, program founders hope, transforming the region into a technology hub.
Crowdfunding - boom or bust for entrepreneurs? - May 16, 2012
The JOBS Act was designed to help entrepreneurs raise capital with presumably fewer administrative and legal road blocks. How will entrepreneurs and boards avoid liability and compliance missteps? The SEC will release final compliance regulations in the coming months.
Ron Conway discusses his investment criteria - May 15, 2012
"We invest based on our chemistry with the entrepreneur. We don't look at the idea or the market they're going after as much as the entrepreneurs themselves. The first six or seven people they hire are extremely important. It takes me less than 15 minutes to decide. It's how they present themselves."
Technology industry growing fastest in New York - May 10, 2012
From 2007-2011, the number of venture capital deals in New York rose by 32%, while it fell by 10% across the nation.
Crowdfunding platforms raise $1.5B in 2011 - May 8, 2012
Report forecasts global crowdfunding to nearly double in 2012.
Zuckerberg stock grip becomes new normal in Silicon Valley - May 7, 2012
At least 10 of last year's tech IPOs included a special class of shares that give the founders more votes than new shareholders.
US scientists who mean business - May 6, 2012
Reversing the "spectacularly unsuccessful" track record of commercialization of academic research.
Blurring the lines between tech and non-tech startups - May 4, 2012
"Technology is required, but is not the differentiator. And do not expect the winners to be based on the best tech."
Where socially conscious startups get their money - May 3, 2012
Collaborative fund has made an impact by funding companies working toward change.
Reid Hoffman and Peter Thiel in conversation - May 2, 2012
The two legendary investors discuss their biggest misses.
Forbes 2012 Midas List - May 2, 2012
Tech's 100 best investors, according to Forbes
The most influential investors on AngelList - May 1, 2012
According to Forbes, these investors, each for different reasons, bear watching as arbiters of what's next in technology.
Is there a tech bubble? Early stage investors weigh in - April 30, 2012
Following a recent NY Times piece on high valuations for companies with little or no revenue, the debate rages on.
With no revenue, an illusion of value - April 29, 2012
The New York Times opines that the gears of Silicon Valley continue to mesh and turn because of money, not necessarily technological innovations.
Will crowdfunding live up to the hype? - April 28, 2012
A four part series on the impact of the JOBS Act.
Angel investor Chris Kelly interviewed by Deirdre Bolton - April 27, 2012
"It's about personal media transformation. There is an insistence that there will be a path to monetization. There is an increased understanding of produced content in Silicon Valley."
Crowdfunding questions on the horizon - April 26, 2012
What will differentiate crowdfunding platforms, and how will they police fraud?
Egypt's bustling startup scene - April 25, 2012
Despite the economic turmoil and leadership uncertainty in Egypt, entrepreneurs remain steadfastly optimistic about the future.
Berlin's startup innovators - April 24, 2012
Berlin is bringing a new, collaborative and organic approach to its rapidly developing technology ecosystem.
Venture investing slides in Q1 2012 as web deals sag - April 20, 2012
Driven by a lack of mega-rounds for Internet companies, investment in venture backed companies fell 18% in the first quarter.
Startups seek the wisdom of the crowd - April 13, 2012
Supporters point to the record of sites such as Ebay as evidence that "open" investment forums will be able to limit fraud through a combination of community ratings and the use of algorithms to detect illicit activity.
Angel investors help women shatter glass ceilings - April 11, 2012
Angel investors funded 1600 women-owned businesses in the last two years.
500 Startups raising second fund - April 8, 2012
After 250 investments, 500 Startups builds team, raises new fund.
8 crowdfunding sites to watch - April 6, 2012
For the tech industry, the single biggest impact of the JOBS Act is the legalization of crowdfunding.
President Obama signs JOBS Act into law - April 5, 2012
The JOBS Act will roll back restrictions on the way start up companies can raise money from individual investors.
Richard Branson looks at tech startup investing - March 30, 2012
Branson is an icon of entrepreneurship because of the success of his Virgin brand. He is known globally for his airline and space ventures, but is not known to invest in tech startups.
Russian government looks to US leaders in venture investing initiative - March 29, 2012
The leaders of Russia's top technology, vc and nanotechnology initiatives gathered in Menlo Park with the goal of deepening ties with the power brokers of the US tech economy.
Celebrities lend star power to Web startups - March 23, 2012
A-listers are leveraging their celebrity clout and finances to form their own startups, launch mobile apps, fund companies or serve as creative directors to major tech brands
Angel investor profile: Bill Bryant - March 20, 2012
Bryant: "I find entrepreneurs who are pragmatic and grounded and who are not giving me crazy ideas about the size of the market or things like that."
Should angel investors get tax credits to invest in small businesses? - March 19, 2012
Tax credits can increase the amount of funding available for startup companies.
Should equity based crowdfunding be legal? - March 18, 2012
Simply, yes.
Esther Dyson on the angel crowd - March 16, 2012
When asked why we don't hear more about women in large syndicates of seed investors, Dyson answered "Because the press never call us. They only call us when they want to hear about female angels. I've been here all along, I've been investing in all kinds of things."
Where are the women angel investors? - March 15, 2012
Surprisingly few women, despite their financial muscle, connections, and know-how from Google, Zynga, and elsewhere, are becoming angel investors.
Angel investment data - 2011 HALO report - March 12, 2012
Report shows a 40% increase in angel investor rounds in startups in 2011.
Congress moves forward on small business bill - March 8, 2012
One aspect of the JOBS Act legislation is designed to eliminate restrictions from the SEC on crowdfunding.
TechStars founder raises $28M fund - March 8, 2012
"Power Angel" David Cohen brings money and relationships to help promising startups get to the next stage.
AngelList standardizes startup pitch deck - February 29, 2012
AngelList experiments with offering its community of investors and entrepreneurs a standardized format for a pitch deck.
JetBlue chairman on search funds, investing, and why startups need leaders - February 27, 2012
Peterson is on the of the proponents of the search fund, which has special relevance for startups and entrepreneurs.
Venture capital sees big returns in big data - February 21, 2012
Venture firms invested $2.47B last year in fields around big data, including database management and data processing, in sectors including retail, healthcare and social media.
Silicon Valley "sets up shop" in New York - February 17, 2012
Silicon Valley companies are opening engineering offices in New York, where the number of tech openings is up 5% this year.
New York, a rapidly growing education technology hub - February 15, 2012
Entrepreneurs seek ways to improve education while taking a share of the $650B ed tech industry.
Esther Dyson discusses investments and trends - February 14, 2012
According to Dyson, "big data, the spread of mobile in emerging markets, and real-time data on everything" are the top tech trends that will change the world.
Ron Conway, Silicon Valley's most prolific startup investor - February 12, 2012
He has attracted scores of imitators, professional investors who have become known as "super angels" and who have elbowed out venture capitalists in many hot deals. And now some venture funds, like Google's venture capital arm, follow the investment model pioneered by Ron Conway.
Venture capital in the spotlight - February 9, 2012
The social media boom, and Facebook in particular, has brought lots of new money into Silicon Valley, both from super angels and outsiders. Leading venture capital firms are getting bigger. As they grow, they are starting to look like private equity firms. The FT says that "size has benefits but will also put them in the spotlight, as an industry and as individuals."
A look inside 500 Startups - February 5, 2012
500 Startups is described in this piece as "the poster child of high velocity seed investing" that "aims to function as an API that connects ecosystem participants around a physical space and a distributed talent pool."
Venture capitalists flock to China - February 2, 2012
The Wall Street Journal reports that China has reached parity with Europe in venture capital financing for the first time. Dow Jones VentureSource data shows that in 2011, Chinese companies received $6B in venture capital equity financing, compared with $6.1B in Europe, $1.7B in the UK and $32.6B in the US.
Andreessen Horowitz raises $1.5B fund - January 31, 2012
The 3 year old VC firm has closed its third and largest fund, bringing the total amount they've raised to $2.7B. Mark Andreessen told the New York Times that "The opportunity is big. We can now take advantage of the fact that broadband Internet has really proliferated in the last few years." Andreessen Horowitz has stakes in 90 consumer and enterprise businesses including Facebook, Twitter, Airbnb, Foursquare, Groupon and Zynga.
Venture capital, disrupted - January 30, 2012
Harvard Business Review considers accelerators the disrupters of venture capital, as they evaluate business plans and founding teams more quickly than traditional venture investors, with arguably less risk. To disrupt the larger ecosystem, accelerators will need to evolve their models to push companies through later stages of the business lifecycle.
Angel deal data site launched - January 28, 2012
Using AngelList API, StartupDataTrends can slice information about startups and their funding geographically and by specific market. Their goal is to "level the playing field between VCs and first time entrepreneurs, making industry knowledge open and standard."
Growing institutional investor interest in micro VCs - January 27, 2012
Wall Street Journal: While many traditional VCs retreated after the tech bust last decade, super angels filled the gap, investing $25K to $1M in dozens of new startups such as Facebook, Mint and Zynga. Those successes are fueling interest from institutional investors. This year, micro VCs will more than double the nearly $700M invested from 49 institutions last year, raising nearly $1.6B from around 80 institutions.
Maples sizes up the tech investing boom - January 26, 2012
Mike Maples: "We are in a major social networking technology wave, and what has happened is that the excitement has caught up and surpassed the reality. When that happens, you usually see an acceleration of 2 to 3 years, and I think that we are about halfway through that acceleration. I'm pretty optimistic for the next year to 18 months."
Rising role for angel investors, says the OECD - January 26, 2012
An OECD study shows that in 2009, angels in the US invested $17.7B, $1B less than VCs. The same year, European angels outspent VCs by $250M. The report describes angel investing as becoming a more formalized process, complete with more rigorous due diligence.
Israeli tech investment sets 11 year record - January 25, 2012
In 2011, 546 Israeli or Israel affiliated tech companies raised $2.14B from VCs, according to a recent KPMG/IVC study.
Who saved Silicon Valley? Angels of course - January 25, 2012
The Atlantic opines "Like nature, capitalism abhors a vacuum, and angel investors have been eager and able to capture the early stage space abandoned by venture capitalists." Since 2005, venture capital has declined by 60% and the number of angel investor groups has doubled.
Boston angels debate the merits of angel groups - January 24, 2012
Last week, Boston angel Fred Destin argued that angel groups can be counterproductive as their extended due diligence process often results in limited investments. Jean Hammond responded today, describing angel groups as "crucial" because of group syndication and a deeper and more nuanced knowledge base.
VC funding of startups hit decade-long high in 2011 - January 24, 2012
The PwC/NVCA MoneyTree report and the Dow Jones Venture Source Report, both released this week, show a significant increase in venture investment (22% and 10% respectively) in 2011, with a decline in deal making in Q4.
Sand Hill Angels invested $2.3M in 2011 - January 23, 2012
57 member angel group invested in Internet, mobile, cleantech, consumer and life science companies, consisting of 7 new investments and several follow-on investments. In all instances, Sand Hill Angels led or co-invested alongside other angel groups, as well as private and institutional venture partners. Their stated 2012 focus is syndication and portfolio company support.
New York emerges as the epicenter of women-led startups - January 23, 2012
New York outpaces Silicon Valley and Boston in investment in companies led by women. The environment has spawned several top female-founded companies, which have drawn increasing number of women to the city's tech scene.
"Series A Crunch" not a concern for Dave McClure - January 21, 2012
Dave McClure: "What's really happening is that it's much easier to build a company now. As for later stage investors who are complaining, the trend should actually help them, because it means they get to choose from more companies."
Some of the biggest Internet success stories are the result of successful pivots - January 18, 2012
While the term "pivot" has been in the startup lexicon for decades, it is used more often in the current Internet boom, as many investors are willing to continue funding companies that change course. Mitch Kapor estimates that 15-20% of the companies in his portfolio have gone through radical transformations. "The art of the pivot is to do it fast and early" advises Ben Horowitz.
Brooklyn's first VC fund - January 17, 2012
In what should be a major catalyst for the Brooklyn tech scene, Charlie O'Donnell of First Round Capital has launched the first Brooklyn based VC fund. Brooklyn Bridge Ventures will provide early and seed stage funding to startups in New York with a focus on Brooklyn based companies. "This is the second inning of New York. The fact that companies like Facebook and eBay and hopefully Twitter and Amazon are coming to New York means we'll see more companies build engineering groups here. Google has been a big boon for the engineering culture here and it'll only continue," O'Donnell said.
New York tech: 12 people to watch in 2012 - January 15, 2012
From disruptive entrepreneurs to emerging VCs to the Dean of the new Cornell/Technion campus, the Daily News profiles 12 new stars of the New York tech scene.
Crowdfunding bill stuck in the Senate - January 14, 2012
The crowdfunding bill that passed in the House by a 407-17 vote is stuck in the Senate. Steve Case, a proponent of the bill, recently said "It seems a little crazy to me that you have to be an accredited investor to invest in a company, but you can go to Las Vegas and lose $10,000 in an hour and you don't have to be an accredited gambler to do that." While he has a point, startup investing requires more consideration than gambling in Las Vegas.
Silicon Valley Bank: Volcker rule could hurt startups - January 13, 2012
California bank warns the Volcker rule could "deal a blow to startup companies critical to innovation and job creation." They argue that venture capital investing is not the highly risky behavior that the Volcker rule is intended to curtail.
Opposing views on crowdsourced equity - January 12, 2012
Supporters say bypassing VCs would save entrepreneurs money, time; doubters wonder if unsophisticated investors would get hurt.
Bill Lee: Angels make better returns than VCs - January 11, 2012
Vator TV discussed valuations, returns, social gaming and mobile commerce with investor Bill Lee.
Zynga's stock nosedives, falling 9% to hit new low - January 10, 2012
DiligentDeal questioned Zynga's valuation in our blog post of December 2, 2011. Now it seems that the market doesn't know what to do with the stock, or how to value it.
VCs raised $5.6B in Q4 2011 as industry continued to consolidate - January 10, 2012
Thomson Reuters/NVCA report on Q4 2011 shows a 162% increase in dollar commitments and a 41% decline in number of funds compared to the previous quarter.
12 startups with skyrocketing valuations - January 9, 2012
Valuations are skyrocketing as VCs compete for the next hot deal. Is this based on profit potential or hype?
Game companies raised record $1.54B in 2011 - January 7, 2012
145 game companies raised more than $1.54B in 2011, not counting IPOs. This represents a 47% increase on 2010, when 91 companies raised $1.05B.
Angels looking for more investments - January 6, 2012
A new report from the Institute for Private Investors, a group of 1100 investors with a net worth of $30M or more, finds that 55% of members seek to to invest directly into private companies, including startups, in 2012.
Inflated valuations prompt venture capitalists to show more caution - January 5, 2012
Mark Andreessen told the Wall Street Journal that he will "take a step back" from making investments in companies with sky high valuations. Instead he seeks to fund technology focused startups where "pricing is still under control."
CrunchBase analyzed: Average successful startup raises $25.3M, sells for $196.8M - January 4, 2012
Belarus based researchers analyzed all exits listed in CrunchBase. One interesting finding: the average IPO bound company raised $580.3M while private, then went public with a market cap of $2.3B on its first day of public trading, for a 303% profit on investment.
Crowdfunding bill stalls in Senate - January 3, 2012
The bill that would allow companies to openly solicit investments online has slowed down in the Senate due to concerns about protecting smaller, less experienced private investors
One angel's investment criteria - January 1, 2012
Kevin Hartz looks for startups that are: run by extremely bright, highly driven, first time entrepreneurs; attacking big markets with profitable incumbents; and building multi platform services
Angel investing trends for 2012 - December 30, 2011
Fox Business spoke with angel investors across the US. They share what will be piquing their interest in 2012, and what entrepreneurs must know before trying to raise capital.
Zynga's disappointing IPO could hurt some Silicon Valley startups - December 28, 2011
Of the 31 Internet and social media companies that have gone public since the beginning of last year, 19 are trading below their IPO prices.
5 startup predictions for 2012 - December 22, 2011
Chasing the new angel investors - December 15, 2011
Angels are now more likely to ask founders and entrepreneurs for prototypes of fledgling products, beta-tested websites, and extensive market research. Angel groups are driving greater diligence and more formal review processes in an attempt to minimize risk.
Why the crowdfunding bill is good for startups - December 8, 2011
Several European crowdfunding firms already connect investors with entrepreneurs. The debate about whether this increases or decreases investor risk continues.
Both parties investing in crowdfunding - December 7, 2011
Senator Scott Brown supports the crowdfunding bill - December 6, 2011
Feels "Congress can equip the best and brightest in America with a powerful tool" and "unleash a wave of capital investment in companies still in the initial stages of growth."
Brazilian Silicon Valley - December 5, 2011
For years investors were indifferent to Brazil's tech sector. Today, as the market looks set to erupt, they're scrambling to get a foothold in the country.
Zynga seeks as much as $1 billion in IPO - December 2, 2011
Most active VCs in October, 2011 - November 27, 2011
Crowdfunding Sites Launch Preemptive Strike on Fraud - June 25, 2012
Articles discussing the danger of fraud in crowdfunding and attempts to address it: Bloomberg Businessweek, The Portland Press.
Interviews from the Venture Forward Conference - June 20, 2012
DiligentDeal, together with Gust, organized VentureForward, a highly curated conference about startup funding. Several speakers were interviewed by Deirdre Bolton of Bloomberg TV's "Money Moves." Links to the interviews follow:
Interview with Esther Dyson; Interview with Howard Morgan; Interview with David S. Rose and Bob Rice.
Facebook backer turns his attention to Brazil - June 10, 2012
Kevin Efrusy, the partner at Accel who spearheaded the firm's initial $12.7 million investment in Facebook in 2005, has made several new investments in Brazil over the last year.
Women in venture capital - June 8, 2012
Women owned ventures account for 12% of entrepreneurs seeking angel capital. Of these, only one in four received angel investment during the first half of 2011. Less than 5% of new businesses funded by venture capital have women on their management team (much less as owners).
Felicis Ventures raises $70 million fund - June 7, 2012
The "super angel" investment firm run by Aydin Senkut is doing bigger deals and writing bigger checks.
Hundreds of new technology incubators in the Los Angeles area - May 17, 2012
Tech accelerators are booming in Los Angeles, boosting prospects for technology startups, and, program founders hope, transforming the region into a technology hub.
Crowdfunding - boom or bust for entrepreneurs? - May 16, 2012
The JOBS Act was designed to help entrepreneurs raise capital with presumably fewer administrative and legal road blocks. How will entrepreneurs and boards avoid liability and compliance missteps? The SEC will release final compliance regulations in the coming months.
Ron Conway discusses his investment criteria - May 15, 2012
"We invest based on our chemistry with the entrepreneur. We don't look at the idea or the market they're going after as much as the entrepreneurs themselves. The first six or seven people they hire are extremely important. It takes me less than 15 minutes to decide. It's how they present themselves."
Technology industry growing fastest in New York - May 10, 2012
From 2007-2011, the number of venture capital deals in New York rose by 32%, while it fell by 10% across the nation.
Crowdfunding platforms raise $1.5B in 2011 - May 8, 2012
Report forecasts global crowdfunding to nearly double in 2012.
Zuckerberg stock grip becomes new normal in Silicon Valley - May 7, 2012
At least 10 of last year's tech IPOs included a special class of shares that give the founders more votes than new shareholders.
US scientists who mean business - May 6, 2012
Reversing the "spectacularly unsuccessful" track record of commercialization of academic research.
Blurring the lines between tech and non-tech startups - May 4, 2012
"Technology is required, but is not the differentiator. And do not expect the winners to be based on the best tech."
Where socially conscious startups get their money - May 3, 2012
Collaborative fund has made an impact by funding companies working toward change.
Reid Hoffman and Peter Thiel in conversation - May 2, 2012
The two legendary investors discuss their biggest misses.
Forbes 2012 Midas List - May 2, 2012
Tech's 100 best investors, according to Forbes
The most influential investors on AngelList - May 1, 2012
According to Forbes, these investors, each for different reasons, bear watching as arbiters of what's next in technology.
Is there a tech bubble? Early stage investors weigh in - April 30, 2012
Following a recent NY Times piece on high valuations for companies with little or no revenue, the debate rages on.
With no revenue, an illusion of value - April 29, 2012
The New York Times opines that the gears of Silicon Valley continue to mesh and turn because of money, not necessarily technological innovations.
Will crowdfunding live up to the hype? - April 28, 2012
A four part series on the impact of the JOBS Act.
Angel investor Chris Kelly interviewed by Deirdre Bolton - April 27, 2012
"It's about personal media transformation. There is an insistence that there will be a path to monetization. There is an increased understanding of produced content in Silicon Valley."
Crowdfunding questions on the horizon - April 26, 2012
What will differentiate crowdfunding platforms, and how will they police fraud?
Egypt's bustling startup scene - April 25, 2012
Despite the economic turmoil and leadership uncertainty in Egypt, entrepreneurs remain steadfastly optimistic about the future.
Berlin's startup innovators - April 24, 2012
Berlin is bringing a new, collaborative and organic approach to its rapidly developing technology ecosystem.
Venture investing slides in Q1 2012 as web deals sag - April 20, 2012
Driven by a lack of mega-rounds for Internet companies, investment in venture backed companies fell 18% in the first quarter.
Startups seek the wisdom of the crowd - April 13, 2012
Supporters point to the record of sites such as Ebay as evidence that "open" investment forums will be able to limit fraud through a combination of community ratings and the use of algorithms to detect illicit activity.
Angel investors help women shatter glass ceilings - April 11, 2012
Angel investors funded 1600 women-owned businesses in the last two years.
500 Startups raising second fund - April 8, 2012
After 250 investments, 500 Startups builds team, raises new fund.
8 crowdfunding sites to watch - April 6, 2012
For the tech industry, the single biggest impact of the JOBS Act is the legalization of crowdfunding.
President Obama signs JOBS Act into law - April 5, 2012
The JOBS Act will roll back restrictions on the way start up companies can raise money from individual investors.
Richard Branson looks at tech startup investing - March 30, 2012
Branson is an icon of entrepreneurship because of the success of his Virgin brand. He is known globally for his airline and space ventures, but is not known to invest in tech startups.
Russian government looks to US leaders in venture investing initiative - March 29, 2012
The leaders of Russia's top technology, vc and nanotechnology initiatives gathered in Menlo Park with the goal of deepening ties with the power brokers of the US tech economy.
Celebrities lend star power to Web startups - March 23, 2012
A-listers are leveraging their celebrity clout and finances to form their own startups, launch mobile apps, fund companies or serve as creative directors to major tech brands
Angel investor profile: Bill Bryant - March 20, 2012
Bryant: "I find entrepreneurs who are pragmatic and grounded and who are not giving me crazy ideas about the size of the market or things like that."
Should angel investors get tax credits to invest in small businesses? - March 19, 2012
Tax credits can increase the amount of funding available for startup companies.
Should equity based crowdfunding be legal? - March 18, 2012
Simply, yes.
Esther Dyson on the angel crowd - March 16, 2012
When asked why we don't hear more about women in large syndicates of seed investors, Dyson answered "Because the press never call us. They only call us when they want to hear about female angels. I've been here all along, I've been investing in all kinds of things."
Where are the women angel investors? - March 15, 2012
Surprisingly few women, despite their financial muscle, connections, and know-how from Google, Zynga, and elsewhere, are becoming angel investors.
Angel investment data - 2011 HALO report - March 12, 2012
Report shows a 40% increase in angel investor rounds in startups in 2011.
Congress moves forward on small business bill - March 8, 2012
One aspect of the JOBS Act legislation is designed to eliminate restrictions from the SEC on crowdfunding.
TechStars founder raises $28M fund - March 8, 2012
"Power Angel" David Cohen brings money and relationships to help promising startups get to the next stage.
AngelList standardizes startup pitch deck - February 29, 2012
AngelList experiments with offering its community of investors and entrepreneurs a standardized format for a pitch deck.
JetBlue chairman on search funds, investing, and why startups need leaders - February 27, 2012
Peterson is on the of the proponents of the search fund, which has special relevance for startups and entrepreneurs.
Venture capital sees big returns in big data - February 21, 2012
Venture firms invested $2.47B last year in fields around big data, including database management and data processing, in sectors including retail, healthcare and social media.
Silicon Valley "sets up shop" in New York - February 17, 2012
Silicon Valley companies are opening engineering offices in New York, where the number of tech openings is up 5% this year.
New York, a rapidly growing education technology hub - February 15, 2012
Entrepreneurs seek ways to improve education while taking a share of the $650B ed tech industry.
Esther Dyson discusses investments and trends - February 14, 2012
According to Dyson, "big data, the spread of mobile in emerging markets, and real-time data on everything" are the top tech trends that will change the world.
Ron Conway, Silicon Valley's most prolific startup investor - February 12, 2012
He has attracted scores of imitators, professional investors who have become known as "super angels" and who have elbowed out venture capitalists in many hot deals. And now some venture funds, like Google's venture capital arm, follow the investment model pioneered by Ron Conway.
Venture capital in the spotlight - February 9, 2012
The social media boom, and Facebook in particular, has brought lots of new money into Silicon Valley, both from super angels and outsiders. Leading venture capital firms are getting bigger. As they grow, they are starting to look like private equity firms. The FT says that "size has benefits but will also put them in the spotlight, as an industry and as individuals."
A look inside 500 Startups - February 5, 2012
500 Startups is described in this piece as "the poster child of high velocity seed investing" that "aims to function as an API that connects ecosystem participants around a physical space and a distributed talent pool."
Venture capitalists flock to China - February 2, 2012
The Wall Street Journal reports that China has reached parity with Europe in venture capital financing for the first time. Dow Jones VentureSource data shows that in 2011, Chinese companies received $6B in venture capital equity financing, compared with $6.1B in Europe, $1.7B in the UK and $32.6B in the US.
Andreessen Horowitz raises $1.5B fund - January 31, 2012
The 3 year old VC firm has closed its third and largest fund, bringing the total amount they've raised to $2.7B. Mark Andreessen told the New York Times that "The opportunity is big. We can now take advantage of the fact that broadband Internet has really proliferated in the last few years." Andreessen Horowitz has stakes in 90 consumer and enterprise businesses including Facebook, Twitter, Airbnb, Foursquare, Groupon and Zynga.
Venture capital, disrupted - January 30, 2012
Harvard Business Review considers accelerators the disrupters of venture capital, as they evaluate business plans and founding teams more quickly than traditional venture investors, with arguably less risk. To disrupt the larger ecosystem, accelerators will need to evolve their models to push companies through later stages of the business lifecycle.
Angel deal data site launched - January 28, 2012
Using AngelList API, StartupDataTrends can slice information about startups and their funding geographically and by specific market. Their goal is to "level the playing field between VCs and first time entrepreneurs, making industry knowledge open and standard."
Growing institutional investor interest in micro VCs - January 27, 2012
Wall Street Journal: While many traditional VCs retreated after the tech bust last decade, super angels filled the gap, investing $25K to $1M in dozens of new startups such as Facebook, Mint and Zynga. Those successes are fueling interest from institutional investors. This year, micro VCs will more than double the nearly $700M invested from 49 institutions last year, raising nearly $1.6B from around 80 institutions.
Maples sizes up the tech investing boom - January 26, 2012
Mike Maples: "We are in a major social networking technology wave, and what has happened is that the excitement has caught up and surpassed the reality. When that happens, you usually see an acceleration of 2 to 3 years, and I think that we are about halfway through that acceleration. I'm pretty optimistic for the next year to 18 months."
Rising role for angel investors, says the OECD - January 26, 2012
An OECD study shows that in 2009, angels in the US invested $17.7B, $1B less than VCs. The same year, European angels outspent VCs by $250M. The report describes angel investing as becoming a more formalized process, complete with more rigorous due diligence.
Israeli tech investment sets 11 year record - January 25, 2012
In 2011, 546 Israeli or Israel affiliated tech companies raised $2.14B from VCs, according to a recent KPMG/IVC study.
Who saved Silicon Valley? Angels of course - January 25, 2012
The Atlantic opines "Like nature, capitalism abhors a vacuum, and angel investors have been eager and able to capture the early stage space abandoned by venture capitalists." Since 2005, venture capital has declined by 60% and the number of angel investor groups has doubled.
Boston angels debate the merits of angel groups - January 24, 2012
Last week, Boston angel Fred Destin argued that angel groups can be counterproductive as their extended due diligence process often results in limited investments. Jean Hammond responded today, describing angel groups as "crucial" because of group syndication and a deeper and more nuanced knowledge base.
VC funding of startups hit decade-long high in 2011 - January 24, 2012
The PwC/NVCA MoneyTree report and the Dow Jones Venture Source Report, both released this week, show a significant increase in venture investment (22% and 10% respectively) in 2011, with a decline in deal making in Q4.
Sand Hill Angels invested $2.3M in 2011 - January 23, 2012
57 member angel group invested in Internet, mobile, cleantech, consumer and life science companies, consisting of 7 new investments and several follow-on investments. In all instances, Sand Hill Angels led or co-invested alongside other angel groups, as well as private and institutional venture partners. Their stated 2012 focus is syndication and portfolio company support.
New York emerges as the epicenter of women-led startups - January 23, 2012
New York outpaces Silicon Valley and Boston in investment in companies led by women. The environment has spawned several top female-founded companies, which have drawn increasing number of women to the city's tech scene.
"Series A Crunch" not a concern for Dave McClure - January 21, 2012
Dave McClure: "What's really happening is that it's much easier to build a company now. As for later stage investors who are complaining, the trend should actually help them, because it means they get to choose from more companies."
Some of the biggest Internet success stories are the result of successful pivots - January 18, 2012
While the term "pivot" has been in the startup lexicon for decades, it is used more often in the current Internet boom, as many investors are willing to continue funding companies that change course. Mitch Kapor estimates that 15-20% of the companies in his portfolio have gone through radical transformations. "The art of the pivot is to do it fast and early" advises Ben Horowitz.
Brooklyn's first VC fund - January 17, 2012
In what should be a major catalyst for the Brooklyn tech scene, Charlie O'Donnell of First Round Capital has launched the first Brooklyn based VC fund. Brooklyn Bridge Ventures will provide early and seed stage funding to startups in New York with a focus on Brooklyn based companies. "This is the second inning of New York. The fact that companies like Facebook and eBay and hopefully Twitter and Amazon are coming to New York means we'll see more companies build engineering groups here. Google has been a big boon for the engineering culture here and it'll only continue," O'Donnell said.
New York tech: 12 people to watch in 2012 - January 15, 2012
From disruptive entrepreneurs to emerging VCs to the Dean of the new Cornell/Technion campus, the Daily News profiles 12 new stars of the New York tech scene.
Crowdfunding bill stuck in the Senate - January 14, 2012
The crowdfunding bill that passed in the House by a 407-17 vote is stuck in the Senate. Steve Case, a proponent of the bill, recently said "It seems a little crazy to me that you have to be an accredited investor to invest in a company, but you can go to Las Vegas and lose $10,000 in an hour and you don't have to be an accredited gambler to do that." While he has a point, startup investing requires more consideration than gambling in Las Vegas.
Silicon Valley Bank: Volcker rule could hurt startups - January 13, 2012
California bank warns the Volcker rule could "deal a blow to startup companies critical to innovation and job creation." They argue that venture capital investing is not the highly risky behavior that the Volcker rule is intended to curtail.
Opposing views on crowdsourced equity - January 12, 2012
Supporters say bypassing VCs would save entrepreneurs money, time; doubters wonder if unsophisticated investors would get hurt.
Bill Lee: Angels make better returns than VCs - January 11, 2012
Vator TV discussed valuations, returns, social gaming and mobile commerce with investor Bill Lee.
Zynga's stock nosedives, falling 9% to hit new low - January 10, 2012
DiligentDeal questioned Zynga's valuation in our blog post of December 2, 2011. Now it seems that the market doesn't know what to do with the stock, or how to value it.
VCs raised $5.6B in Q4 2011 as industry continued to consolidate - January 10, 2012
Thomson Reuters/NVCA report on Q4 2011 shows a 162% increase in dollar commitments and a 41% decline in number of funds compared to the previous quarter.
12 startups with skyrocketing valuations - January 9, 2012
Valuations are skyrocketing as VCs compete for the next hot deal. Is this based on profit potential or hype?
Game companies raised record $1.54B in 2011 - January 7, 2012
145 game companies raised more than $1.54B in 2011, not counting IPOs. This represents a 47% increase on 2010, when 91 companies raised $1.05B.
Angels looking for more investments - January 6, 2012
A new report from the Institute for Private Investors, a group of 1100 investors with a net worth of $30M or more, finds that 55% of members seek to to invest directly into private companies, including startups, in 2012.
Inflated valuations prompt venture capitalists to show more caution - January 5, 2012
Mark Andreessen told the Wall Street Journal that he will "take a step back" from making investments in companies with sky high valuations. Instead he seeks to fund technology focused startups where "pricing is still under control."
CrunchBase analyzed: Average successful startup raises $25.3M, sells for $196.8M - January 4, 2012
Belarus based researchers analyzed all exits listed in CrunchBase. One interesting finding: the average IPO bound company raised $580.3M while private, then went public with a market cap of $2.3B on its first day of public trading, for a 303% profit on investment.
Crowdfunding bill stalls in Senate - January 3, 2012
The bill that would allow companies to openly solicit investments online has slowed down in the Senate due to concerns about protecting smaller, less experienced private investors
One angel's investment criteria - January 1, 2012
Kevin Hartz looks for startups that are: run by extremely bright, highly driven, first time entrepreneurs; attacking big markets with profitable incumbents; and building multi platform services
Angel investing trends for 2012 - December 30, 2011
Fox Business spoke with angel investors across the US. They share what will be piquing their interest in 2012, and what entrepreneurs must know before trying to raise capital.
Zynga's disappointing IPO could hurt some Silicon Valley startups - December 28, 2011
Of the 31 Internet and social media companies that have gone public since the beginning of last year, 19 are trading below their IPO prices.
Silicon Valley VCs predict top 2012 trends - December 25, 2011
Buzzwords "mobile", "gamification", "cloud" and "social" incorporated into every pitch. Healthcare, edtech, data science and "big data", consumerization of the enterprise and collaborative consumption will experience explosive growth.
2012 outlook from Bill Maris at Google Ventures - December 23, 2011
Looking for companies that cure diseases, extend life, prevent pandemics and secure the global food supply.
CNET explores lofty valuations, Siri opportunities for 3rd party developers, mobile sensors, big data and disrupted industries.
Chasing the new angel investors - December 15, 2011
Angels are now more likely to ask founders and entrepreneurs for prototypes of fledgling products, beta-tested websites, and extensive market research. Angel groups are driving greater diligence and more formal review processes in an attempt to minimize risk.
Venture capital - disrupted - December 13, 2011
Panel of VCs predict a longer time to liquidity, smaller funds via incubators, and the bursting of the late stage bubble.
Brazil and Russia fertile ground for startups and investors - December 11, 2011
Prolific angel investor highlights "huge markets" with "booming startup ecosystems" and "growing Internet economies." Focuses on consumer-facing companies that often copy successful US business models as he lacks time for thorough due diligence.
VC funding doubles for online retail - December 9, 2011
VCs invested $2.39B in online retail in 2011, doubling last year's $1.06B. Many sites offering highly curated selections and enhanced customer engagement through social media and video.
Obama's Startup America initiative reaches milestones - December 9, 2011
The Startup America Partnership held its first board meeting at the White House. The SBA proposed rules for $1B Early Stage Innovation Fund, providing capital to early stage companies.
Why the crowdfunding bill is good for startups - December 8, 2011
Several European crowdfunding firms already connect investors with entrepreneurs. The debate about whether this increases or decreases investor risk continues.
Both parties investing in crowdfunding - December 7, 2011
The crowdfunding initiative has received endorsements from Obama and the House, which overwhelmingly passed a complementary bill last month, 407 to 17.
Feels "Congress can equip the best and brightest in America with a powerful tool" and "unleash a wave of capital investment in companies still in the initial stages of growth."
Brazilian Silicon Valley - December 5, 2011
For years investors were indifferent to Brazil's tech sector. Today, as the market looks set to erupt, they're scrambling to get a foothold in the country.
Zynga seeks as much as $1 billion in IPO - December 2, 2011
Zynga, founded in early 2007, reports 200M users. Many free online games exist. How and when will Zynga have a yearly profit of $700M, justifying a valuation of $7B and the $1B they now seek? Zynga originally planned a larger IPO, scaling back after Groupon and Pandora sank following their debuts this year. They initially intended to raise $1B at a valuation of $15B.
Accel invests in Brazilian review and search site - December 2, 2011
Accel partner said he had seen “an acceleration of high-quality opportunities” over the last year in Brazil, and no shortage of ambition, as the Latin American start-up ecosystem continues to develop.
Global capital descends on Berlin tech scene - December 1, 2011
The first three quarters of 2011 saw €136 million invested in 81 businesses in Berlin. Most of the companies receiving funds were Internet start-ups. The number of angel investors, many of whom came from the tech scene themselves, is also growing.
New York awash in venture/angel $$$ - November 30, 2011
Investors put $416 million into 48 internet based companies in NYC in Q2 2011. A total of 98 US companies received venture funding, and New York now surpasses Boston as the leading location of venture deals, second only to Silicon Valley. 347 deals were funded in NY, compared with 271 in Boston, a 30 percent increase from 2009.
33% increase in seed/angel funding rounds in two years - November 29, 2011
According to Crunchbase, there were more than 1100 seed/angel funding rounds last year, up from 855 in 2008. 2011 is on track to surpass 2010. TechCrunch deems this a "Cambrian explosion of startups."
500 Startups tops the list, investing in 34 companies in October. Since 2010, they have backed approximately 220 companies, and are on pace to do 250 by the end of 2011. The next most active were Bessemer Venture Partners and New Enterprise Associates.
Russia moving from fossil fuel to fostering innovation - November 27, 2011
Outside of Moscow, Skolkovo is being built, and is meant to be the Silicon Valley of Russia. A new university, in partnership with MIT, will focus on five fields: energy, information technology, bio-medicine, space and nuclear technology.
The deepening impact of social media (described by Facebook's COO) - November 26, 2011
“Mark Zuckerberg’s 'law of sharing' is to social media what Moore’s law is to computing power. The Facebook founder’s law asserts that the amount of information shared digitally will double every year.” Sheryl Sandberg, COO, Facebook, The Economist’s World in 2012. This will be increasingly evident in commercial and institutional realms.
China's venture capitalists brace for global success - November 25, 2011
The first three quarters of 2011 saw $9.8b worth of investments made by Chinese VCs. That is a substantial jump from $5.4b invested during the whole of 2010 and $2.7b in 2009. Its venture capital sector is still largely focused on the domestic market. Chinese VCs are looking to play a larger global role.
CalPERS allocating less to venture capital. Early stage companies will increasingly turn to angels - November 24, 2011
The largest public pension system in the US currently has an approximately 7% exposure to venture capital within its $49 billion alternative investment management program Last week approved a new target allocation of just 1%.
Europe’s next billion dollar tech companies predicted - November 23, 2011
List of companies an Index Ventures partner predicts will have billion dollar valuations and a billion dollars in revenue in the next 3-5 years. Hot markets include Berlin, Moscow and Tel Aviv.
Crowdfunding Bill Impacts Angel Investors - November 22, 2011
Transparency and democratization meet early stage investing. H.R. 2930, if passed, will impact all aspects of early stage fundraising. It will increase the number of potential investors per deal, create pre-launch buzz, and speed up access to capital. Most importantly, the entire process will become much more transparent.
Map of Startup Companies in NYC - November 21, 2011
The NY Times published a graphic map showing the location of NYC based tech companies by sector. Of 438 New York companies which raised money from investors between January, 2010 and October, 2011, 145 were shopping and advertising companies, and 87 were media and entertainment companies. This reflects the influence of New York's traditional business sectors on technology startups. Other sectors represented are consumer internet, software for organizations, health care and finance. Concentrations of tech startups noted in Midtown South, Flatiron, Soho and FiDi.
Fenwick & West Q3 VC Survey - November 17, 2011
Fenwick & West’s just released Q3 2011 VC survey shows an increase in up vs down rounds for the quarter and year. Their research shows internet/digital media/software (including mobile) companies significantly outpacing other industries as best performers from a valuation perspective. A significant risk was highlighted, as VCs continue to raise less than they invest.
PWC/MoneyTree Q3 Investment Report - October 19, 2011
The Q3 2011 PWC/MoneyTree survey shows a decrease in all but expansion stage deals. Geographically, investments in New England decreased, while deals in New York and Texas increased significantly. The software sector, as defined by the report, continues to thrive.
UNH - CVR Q2 Angel Investment Market Trends - October 11, 2011
The University of New Hampshire’s study of the angel investment landscape shows growth on both Q2 2010 and Q1 2011. It highlights the importance of the healthcare, energy, biotech and social media sectors, and the increase in seed/startup stage deals and yield rate. Post seed investment declined but the market is considered stable by all metrics.