Q3 VC funding report

PwC and CB Insights‘ Q3 2018 MoneyTree report highlights the latest trends in venture capital funding globally.

US FUNDING INCREASES, DEAL ACTIVITY DECLINES, IN Q3’18

Dollars were up 17% in Q3’18 as $27.5B was invested across 1,229 deals. Deal activity declined for the first time since Q4’17.

 

GLOBAL FUNDING INCREASED SLIGHTLY IN Q3’18, WITH DEALS DECLINING

Global funding ticked up 2% to $53B. Deals declined compared to Q2, reflecting fewer, bigger deals in the US.

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NORTH AMERICA AND ASIA DOMINATE IN THE NUMBER OF NEW UNICORNS

 

https://www.cbinsights.com/research/report/venture-capital-q3-2018/?utm_source=CB+Insights+Newsletter&utm_campaign=fcd1d83ff6-TuesNL_10_09_2018&utm_medium=email&utm_term=0_9dc0513989-fcd1d83ff6-87406845

 

What Startups Need to Know About Regulated Markets

Often the opposite of disruption is the status quo.

If  you’re a startup trying to disrupt an existing business you need to read The Fixer by Bradley Tusk and Regulatory Hacking by Evan Burfield. These two books, one by a practitioner, the other by an investor, are must-reads.

The Fixer is 1/3rd autobiography, 1/3rd case studies, and 1/3rd a “how-to” manual. Regulatory Hacking is closer to a “step-by-step” textbook with case studies.

Here’s why you need to read them.


One of the great things about teaching has been seeing the innovative, unique, groundbreaking and sometimes simply crazy ideas of my students. They use the Business Model (or Mission Model) Canvas to keep track of their key hypotheses and then rapidly test them by talking to customers and iterating their Minimal Viable Products. This allows them to quickly find product/market fit.

Except when they’re in a regulated market.

What Your Startup Needs to Know About Regulated Markets

Going from Series A to B: What tech founders need to know

VC FUNDING / THU 4 OCT 2018

As most tech entrepreneurs will know, fundraising can help you secure market share, grow your business and build a killer product, but it can also be extremely daunting and time consuming.

According to UKTN’s Investment tracker, UK founded technology businesses raised more than £4bn in 2017, with the same data showing that companies in the space have already surpassed the £2bn mark so far this year.

Raising from the right investors, at the right time, on the right terms is key for business success. So, bearing in mind that companies are operating in an extremely competitive market, we partnered with professional services firm Smith & Williamson, to host a panel discussion in a bid to demystify what the fundraising process entails for both founders and investors.

https://www.uktech.news/guest-posts/funding/vc-funding/70652-20181004

 

The Complete List of Unicorn Companies

The Global Unicorn Club

(including whisper valuations)

Current Private Companies Valued At $1B+

Total Number of Unicorn Companies: 278

Total Cumulative Valuation: ~ $867B

What is a Unicorn Startup?

A unicorn startup or unicorn company is a private company with a valuation over $1 billion. As of August 2018, there are more than 260 unicorns around the world. Variants include a decacorn, valued at over $10 billion, and a hectocorn, valued at over $100 billion.

 

https://www.cbinsights.com/research-unicorn-companies?utm_source=CB+Insights+Newsletter&utm_campaign=f1d6a4e635-ThursNL_10_04_2018&utm_medium=email&utm_term=0_9dc0513989-f1d6a4e635-87406845

 

 

How to decide what type of investment is right for your tech startup

Salvatore Minetti, CEO and founder, Prospex.ai on how to decide what type of funding is best for your tech business.

The UK has established itself as one of the best countries in the world to start and grow a business. In fact, between 2012 and 2017 approximately 3.5 million new companies were founded across Britain.

There are several reasons for this boom in entrepreneurialism, but financial support has proven demonstrably important. Specifically, a combination of private sector investment coupled with public sector initiatives have helped nurture an environment where early stage businesses can secure vital capital to enable them to grow.

Entrepreneurs in the UK are fortunate to have a plethora of places to turn when looking to secure finance for their fledgling company. Yet despite all these options – or perhaps because of the vast number of choices now available – the task of raising investment can be daunting for a startup.

 

https://www.uktech.news/news/70647-20181002

 

Consider These 3 Variables Before Expanding Your Business Internationally

Despite the fact that it has never been easier, a company’s international expansion still retains an exotic allure today. Wells Fargo’s International Business Indicator recently found that 60% of U.S. companies expect to increase international business development planning. It remains a goal, and then a milestone, for fast-growing successful businesses to expand beyond their native market and move into international territory.

Whether it’s San Francisco or Spain, launching in another location is one of the most challenging benchmarks an entrepreneur can experience. In the past year, we grew our company globally and we now have offices in London, New York, Barcelona, Dubai, and Santiago de Chile. Companies with truly global ambitions have probably seen a good degree of success at home, but I’ve observed a tendency among these organizations to lose control of their senses when moving overseas. Too often, companies seem to simply stick a pin in the map in order to locate their first international move or target the market du jour.

 

https://www.alleywatch.com/2018/10/consider-these-3-variables-before-expanding-your-business-internationally/

 

SoftBank Vision Fund said to eye investment in Chinese education startup

Selina Wang October 2, 2018

SoftBank Vision Fund is seeking to invest about $500 million in China’s Zuoyebang as it seeks a stake in the country’s vast online education market, people familiar with the matter said. The fund, created by SoftBank Group Corp., and Zuoyebang are still finalizing terms of the deal and the details could still change, the people said, asking not to be identified as the details are private. The education technology startup has already raised more than $500 million in funding from investors including Coatue Management, Goldman Sachs Group Inc., Sequoia Capital China and GGV Capital. Founded in 2014 by Chinese search giant Baidu Inc., Zuoyebang targets primary and secondary school students in China. The company, which was spun out from Baidu a year later, created a mobile app that lets students upload homework questions and search for answers. Zuoyebang has also expanded into live-streaming courses and one-on-one mentoring, with a reported 300 million registered users.

Read more at: https://www.dealstreetasia.com/stories/softbank-chinese-education-startup-107817/?utm_source=DealStreetAsia%3A+The+Daily+Brief&utm_campaign=735fde82e4-EMAIL_CAMPAIGN_2018_10_02_01_02&utm_medium=email&utm_term=0_0fa50e40c1-735fde82e4-246561397&mc_cid=735fde82e4&mc_eid=bba68709e3

 

 

SoftBank to raise $100b fund every 2-3 years, spend $50b annually

September 27, 2018

SoftBank Group Corp plans to create a new $100 billion fund every two to three years and spend $50 billion annually, its Chief Executive Masayoshi Son told Bloomberg Businessweek in an interview published on Thursday. Son has attracted more than $93 billion to his Vision Fund technology investment vehicle, and has flagged his intention to raise further financing. The comments reflect Son’s dealmaking ambitions that have shaken up the world of venture capital investing as he looks to accelerate his vision of a future driven by artificial intelligence. SoftBank did not immediately comment.

Read more at: https://www.dealstreetasia.com/stories/softbank-son-100b-fund-107522/?utm_source=DealStreetAsia%3A+The+Daily+Brief&utm_campaign=048c3de548-EMAIL_CAMPAIGN_2018_09_28_01_02&utm_medium=email&utm_term=0_0fa50e40c1-048c3de548-246561397&mc_cid=048c3de548&mc_eid=bba68709e3

 

Four Steps to Take Before Scaling Sales Hiring

Growth at All Costs is Perilous – This is How to Scale Sales Sustainably

Earlier in her career, Karen Rhorer was rising through the sales ops leadership ranks and working with her team to come up with an aggressive hiring plan, trying to reverse engineer the sales team capable of delivering the equally aggressive bookings numbers that their startup had set.

At the time, this move seemed in-line with conventional thinking, which was steeped in hypergrowth and the triple triple double double double mantra that drove startups to sell more, faster. But that pressure to hit those top-line growth numbers created blinders that left one side of the equation out entirely: sustainability. Like many other companies, Rhorer’s startup didn’t realize early enough that the math wasn’t supporting the sheer amount of cash they were burning in a quest for growth. And just a few years later, it all came home to roost — and nearly 40% of the staff had to be laid off.

http://firstround.com/review/growth-at-all-costs-is-perilous-this-is-how-to-scale-sales-sustainably/?utm_campaign=new_article&utm_medium=email&utm_source=newsletter