To get big faster, younger unicorns start buying startups sooner


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In the name of getting big quick, it seems like some of the most valuable private tech companies are turning to mergers and acquisitions (M&A) as a way to accelerate business growth. So-called “unicorns”—privately-held technology companies which achieve billion-dollar valuations sometime before (or as a direct result of) going public or exiting via M&A—are chomping at the bit to make their first acquisitions, suggesting a mounting pressure on companies to grow even quicker.

Analysis of Crunchbase data indicates that, on average, recently founded unicorn companies are more likely to make their first M&A transactions sooner after founding than their older counterparts. In other words, younger unicorns buy other companies earlier. Here’s the data.

The narrowing gap between founding and first M&A

Using M&A data for companies in Crunchbase’s unicorn list, we found out when unicorn companies made their first M&A transactions on average. (We detail a bit more of

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Uber’s IPO targets April, Stash stacks cash, and YC shakes it up


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Hello and welcome back to Equity, TechCrunch’s venture capital-focused podcast, where we unpack the numbers behind the headlines.

This week was a lot of fun. Connie Lozios took the captain’s chair in San Francisco while I manned the sails, and we had Female Founders Fund’s founder Anu Duggal in the studio to round out our crew.

It was a week of conclusions. Our prior notes on YC and Uber and a few other things came home to roost. But, you’re busy so let’s sink our teeth into the good stuff:

Uber’s IPO lands in April: Right before we hit record, news broke that Uber’s IPO will land in April. This isn’t an unexpected result, but it is one that is long-expected. With Lyft’s S-1 live, and in the wild, it’s time for Uber to, ahem, shift and catch up? Regardless, the company’s possible $1 billion raise to fund

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Small VC funds continue to raise, despite pressure from above


This post is by Alex Wilhelm from TechCrunch


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Recently, we bore out with data what has been felt for several years in most U.S. tech scenes: a rising venture market raises funds of all sizes. But it’s a trend that most favors entrenched firms, which raise ever-larger funds to accommodate a shift in the startup life cycle. Private companies are dawdling at the exit door, postponing graduation to public markets because private-market money is cheap and plentiful, for now.

In a time when “blitzscaling” is the business strategy du jour, some high-growth companies raise supergiant nine and 10-figure VC rounds to help them build moats around walled-garden markets they’re trying to build up from both sides, or they’ll

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Two Austin-based VC firms are each raising $100M funds


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Texas startups will soon have two new sources for capital.

Crunchbase News has learned that two Austin-based venture capital firms, ATX Seed Ventures and Quake Capital, are in the process of each raising $100 million funds.

The news comes off a period in which the Austin tech scene saw a number of wins. Tech giants Apple and Google recently committed to expanding their presence in the Texas capital in a big way. And venture investing in the city is picking up at an impressive pace. In January alone, Austin startups raised nearly as much as was raised in all of the 2018 fourth quarter.

While both firms have different investment strategies, they share some

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Airbnb, Automattic and Pinterest top rank of most acquisitive unicorns


This post is by Alex Wilhelm from TechCrunch


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It takes a lot more than a good idea and the right timing to build a billion-dollar company. Talent, focus, operational effectiveness and a healthy dose of luck are all components of a successful tech startup. Many of the most successful (or, at least, highest-valued) tech unicorns today didn’t get there alone.

Mergers and acquisitions (M&A) can be a major growth vector for rapidly scaling, highly valued technology companies. It’s a topic that we’ve covered off and on since the very first post on Crunchbase News in March 2017. Nearly two years later, we wanted to revisit that first post because things move quickly, and there is a new crop of

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Investor momentum builds for construction tech


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Although it’s not the sexiest of industries, the hefty construction sector in 2018 attracted not only the attention but, more importantly, the dollars of investors.

Historically, the multi-trillion-dollar sector has been slow to adopt new technologies, as builders rely on a variety of disparate systems to manage projects, traditional building methods to construct homes and non-smart materials.

But a wave of startups is looking to capitalize on opportunities within the sector. Companies that have developed software solutions aimed at streamlining processes and increasing efficiencies are increasingly common. Prefab construction has evolved thanks to innovation in that space, and 3D printing technology can create homes in a matter of days.

Investors are taking notice. Funding in U.S.-based construction technology startups

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Peloton peddles toward an IPO, self-driving is big business and SaaS’s new highs


This post is by Alex Wilhelm from TechCrunch


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Hello and welcome back to Equity, TechCrunch’s venture capital-focused podcast, where we unpack the numbers behind the headlines.

This week was a treat. We had TechCrunch’s own Connie Loizos in the studio along with your humble servant and General Catalyst’s Niko Bonatsos. A fine group for a busy week.

We had to pare our topic list some for length, but after working out what qualified as the biggest news from our usual orbit, we decided to touch on:

Companies raising supergiant VC aren’t getting any younger


This post is by Alex Wilhelm from TechCrunch


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This week, point-to-point “microtransit” service company Lime announced it raised $310 million in a Series D round, which valued the company at $2.4 billion, post-money. That is pretty impressive for a startup founded just a couple of years ago. Since 2017, Lime has raised more than $765 million in venture funding, which is due in part to the pretty daunting economics of the bike and scooter business. It takes a lot of capital to acquire and deploy that hardware.

Lime isn’t the only company to raise supergiant ($100 million or more) VC rounds right out of the gate. Despite the fact that

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Spotify


This post is by Alex Wilhelm from TechCrunch


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Hello, and welcome back to Equity, TechCrunch’s venture capital-focused podcast, where we unpack the numbers behind the headlines.

This week Kate Clark and I sat down to get through the biggest news in the venture and startup world. This is our regular episode of the week after a shot focused on the Slack IPO, and an interview concerning Facebook. So, back to our roots. And as has been the case for months and months now, there was a lot to get through.

Podcasting took center stage this week, with music giant Spotify snapping up podcasting tool startup Anchor and podcast production company Gimlet. The latter was expected, but the combined $230 million pricetag may have come as a surprise to some.

Spotify says that it isn’t done investing in the space. It won’t be alone, however, in hoping to drive big dollars with original audio shows. Himalaya

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Equity Shot: All About Slack’s Confidential IPO Filing


This post is by Alex Wilhelm from TechCrunch


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Hello, and welcome back to Equity, TechCrunch’s venture capital-focused podcast, where we unpack the numbers behind the headlines.

Today we’re bringing back an old Equity format: The Shot.

No, I haven’t started drinking again, Equity Shots are short takes on breaking news. And no news was more explosive recently than word that Slack has filed to go public confidentially. Confidentially in that we don’t get to see the numbers (yet), but publicly in that the company went ahead and told the world that it had filed, privately, with the SEC.

Which, as our own Danny Crichton points out, is open once again now that the government has reopened.

If you want to follow along with the numbers as we talk, this post is where most of my notes are, and you can read all of TechCrunch’s Slack coverage here.

We’re back in a flash with our regular weekly episode

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Coastal startups don’t have a monopoly on raising big at early-stage


This post is by Alex Wilhelm from TechCrunch


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Early-stage startups throughout much of the U.S. are able to raise larger sums today than any other point in at least a decade, and there are more early-stage rounds than ever, both in North America and globally. (Note: “Early-stage” is defined here as Series A and Series B rounds, plus smaller rounds from several other round types, including equity crowdfunding and convertible notes.)

In analysis published earlier this week, we found that the nationwide average early-stage deal grew more than 20 percent between 2017 and 2018. We quantified that companies on the coasts raise more than their inland counterparts and found

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Austin in January: Cash rich and maturing


This post is by Alex Wilhelm from TechCrunch


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2019 has been good to the Austin startup scene so far.

Combined, Austin startups have raised $240.3 million in January. That’s not much less than the nearly $300 million raised in all of Q4 2018. And since the beginning of the year, the Texas capital has seen a number of double-digit funding rounds and a nearly quarter of a billion dollar acquisition.

Out of 10 known rounds, six were for $10 million or over. In recent years, Austin has historically been known for having more early-stage companies that raised more seed and Series A rounds. But if this month is any indication, its venture scene is maturing.

Just today, RigUp — an on-demand staffing platform for the oil and gas industry — announced it has secured $60 million in a Series

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Everyone Raises $100M, Pinterest And Zoom Want To Go Public, And HelloSign


This post is by Alex Wilhelm from TechCrunch


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Hello and welcome back to Equity, TechCrunch’s venture capital-focused podcast, where we unpack the numbers behind the headlines.

This week we recorded as a trio: Connie Loizos holding down the studio with our guest, the ever-present Jeff Clavier of Uncork Capital. I dialed in from the what was the East Coast, back before it froze over.

But while the temperature is low over here, the world’s tech news was anything but slow. Indeed, we had to cram a lot into a little bit of time, so here’s the quick overview to follow as you listen:

Scooters 2.0, Munchery ghosts, and solving contraceptive deserts


This post is by Alex Wilhelm from TechCrunch


Click here to view on the original site: Original Post




Hello and welcome back to Equity, TechCrunch’s venture capital-focused podcast, where we unpack the numbers behind the headlines.

This week we had the gang back together with our own Connie Loizos at the helm, Kate Clark in the studio as well, Alex on the phone, and Ed Sim from Boldstart Ventures onboard as well. A good crew for a busy week.

Now that 2019 is fully underway, the news is back to its usual firehose-pace which means we had a lot to get through. In no overly serious order, here’s what we got to today on the show (you are subscribed, right?):

Following a record year, Illinois startups kick off 2019 on a strong foot


This post is by Alex Wilhelm from TechCrunch


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Illinois’s startup market in 2018 was very strong, and it’s not slowing down as we settle into 2019. There’s already almost $100 million in new VC funding announced, so let’s take a quick look at the state of venture in the Land of Lincoln (with a specific focus on Chicago).

In the chart below, we’ve plotted venture capital deal and dollar volume for Illinois as a whole. Reported funding data in Crunchbase shows a general upward trend in dollar volume, culminating in nearly $2 billion worth of VC deals in 2018; however, deal volume has declined since peaking in 2014.1

Chicago accounts for 97 percent of the dollar volume

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Global VC market sees highest-ever concentration of supergiant dollar volume in Q4 2018


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For the global VC industry, 2018 was a supergiant year. Crunchbase projects that 2018 deal and dollar volume surpassed even the high-water mark left by the dot-com deluge and the drought that followed.

As covered in Crunchbase News’s global VC report reviewing Q4 and the rest of 2018, projected deal volume rose by 32 percent and projected dollar volume jumped 55 percent since 2017. For all of 2018, Crunchbase projects that well over $300 billion was invested in equity funding rounds across all stages of the venture-backed company life cycle. (This figure includes an estimate of transactions that were finalized in 2018, but won’t be publicized or added to Crunchbase

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SoftBank’s triple, Pinterest is going public, and the market meltdown


This post is by Alex Wilhelm from TechCrunch


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Hello and welcome back to Equity, TechCrunch’s venture capital-focused podcast, where we unpack the numbers behind the headlines.

This week we had 75 percent of the core crew on hand to chat: Connie Loizos, Danny Crichton, and myself. Kate will be back on the show early next year, we promise. We were also joined by Menlo Ventures‘ Venky Ganesan who was a super great addition to the team.

There was a lot to get through. In fact, we had to toss a few things overboard toward the end due to time. So, we didn’t get to US-China cross-border venture flows, or the new Lightspeed China fund, but we did dig into:

SoftBank’s latest three mega investments. SoftBank let loose a trio of titanic checks into three companies, including $385 million into Fair, a car-focused company, $400 million into Relay Therapeutics, which deals

Continue reading “SoftBank’s triple, Pinterest is going public, and the market meltdown”

Uber’s financials, Qualtric’s $8B exit and what’s going on at WeWork


This post is by Alex Wilhelm from TechCrunch


Click here to view on the original site: Original Post




Hello and welcome back to Equity, TechCrunch’s venture capital-focused podcast, where we unpack the numbers behind the headlines.

This week we had the excellent Connie Loizos on the air, we had Danny Crichton on the horn from New York, I was in the studio mostly hacking up one lung or the other, and we had Matt Howard of Norwest Venture Partners.

And so, with smoke in the Bay and snow in the Big Apple, we dug into what we love. Namely, dollars.

Uber was first in line due to the scale of its results. The firm disclosed its third-quarter results including slowing growth (in percentage terms), steep losses on a GAAP basis (GAAP means that all costs were counted) and adjusted losses that fell in the period.

So, a mixed bag. I found it to be somewhat negative (more of my view here); our guest was more bullish.

Continue reading “Uber’s financials, Qualtric’s $8B exit and what’s going on at WeWork”

The top 10 cities for $100M VC rounds in 2018 so far


This post is by Alex Wilhelm from TechCrunch


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Crunchbase News recently profiled a selection of U.S. companies’ largest VC raised in 2018, and no surprise here: the 10 largest rounds all topped out well north of $100 million.

A major driver of global venture dollar growth is the relatively recent phenomenon of companies raising $100 million or more in a single venture round. We’ve called these nine and 10-figure deals, which shine brightly in the media and are hefty enough to bend the curve of VC fund sizes upwards, “supergiants” after their stellar counterparts.

And like stars, venture-backed companies tend to originate and co-exist in clusters, while the physical space between these

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SoftBank’s debt, Ford buys Spin, and Chinese coffee is huge money


This post is by Alex Wilhelm from TechCrunch


Click here to view on the original site: Original Post




Hello and welcome back to Equity, TechCrunch’s venture capital-focused podcast, where we unpack the numbers behind the headlines.

This week was a blast. Connie and I were in the studio with our guest, True Ventures’s Tony Conrad, while Danny repped the other side of the country, dialing in from New York.

It was another week shaped by news from Asia. Once we had sorted the sartorially expedient, we first turned to the world of SoftBank, this time taking a close look at its debt load. While SoftBank is currently famous for its investments through its Vision Fund, the company is picking up some notable, debt-powered investments into its vehicle that could add to its risk profile.

After all, who doesn’t want more risk as 2018 comes to a close?

Moving on, Ford is doubling-down on its wager that mobility means more than cars, this time picking up

Continue reading “SoftBank’s debt, Ford buys Spin, and Chinese coffee is huge money”