Venture capital posts
FeedPosted Oct 19th 2009 12:00PM by Tom Johansmeyer (RSS feed)
Filed under: Deals, Products and services, Internet, Yahoo! (YHOO), Apple Inc (AAPL), Mutual funds, Personal finance
KaChing! KaChing!
It only makes sense to call a company a sound you like to hear. This is exactly what CEO and co-founder Andy Rachleff must have had in mind. His new company -- kaChing, of course -- is backed by Marc Andreesen (a name often associated with that sound) and Jeff Jordan, the CEO of OpenTable (NASDAQ: OPEN), two guys who usually do a solid job of backing winners. But, they've taken on a challenge by backing a company in the financial services industry.
Continue reading KaChing hopes to be the sound of success
Posted Oct 18th 2009 1:40PM by Tom Johansmeyer (RSS feed)
Filed under: Private equity
The amount of investable assets available to venture capital funds has basically been a growth story since 2003. Dry powder slipped 7% in 2004 and 10% in 2008, but increased in every other year over this period.
Now, the dry powder number sits at $155 billion, according to alternative investment research firm Preqin, just off its December 2007 peak of $160 billion. The big number, however, masks a wide range of market situations for venture capital funds. Dry powder levels vary by strategy and region. To get a sense of what's going on behind the scenes, check out the five facts below about venture capital dry powder.
Continue reading Five views of venture capital dry powder
Posted Oct 13th 2009 1:10PM by Tom Johansmeyer (RSS feed)
Filed under: Private equity, Green Stocks, Recession
Well, what have you done for me lately, right? Investors, less than thrilled with the returns that venture capital funds have been delivering, are taking their money and going home. The number of new funds launching has thus dropped precipitously, and it looks like the industry will be smaller, with fewer players, according to the National Venture Capital Association.
Of course, the next wave will attract many to ride it, and that could be enough to turn the tide (once again).
Continue reading Investors turning their backs on VCs (for now)
Posted Oct 12th 2009 12:50PM by Tom Taulli (RSS feed)
Filed under: Private equity
While the private equity industry is massive today, it is still a recent innovation. In fact, the industry got its start about 40 years ago.
And one of the pioneers is Lionel Pincus, who created Warburg Pincus. Unfortunately, he Pincus died over the weekend. He was 78.
With an MBA from Columbia, Pincus began his career on Wall Street as an investment banker (with Ladenburg, Thalman & Co.) No doubt, it was an extremely helpful experience, in terms of learning corporate finance and building a strong network of contacts.
Continue reading Lionel Pincus: A private equity legend dies
Posted Oct 12th 2009 8:30AM by Tom Johansmeyer (RSS feed)
Filed under: Good news, India, China, Brazil, Private equity, Eastern Europe, Technology, Green Stocks
The clean technology wave just got a little bigger. This tends to be a side-effect of interest from billionaire investor George Soros. And, as usual, it's more than just money; it's more than just a return. Soros, yet again, is trying to save the world. Interestingly, the bold move was announced at a meeting on climate change sponsored by Project Syndicate – an international association consisting of 430 newspapers from 150 countries (and thus with clear ties to the past, rather than future).
The investor and founder of Soros Fund Management LLC is planning to put $1 billion into clean-tech opportunities using what he calls "rather stringent criteria," which involves being "profitable but should also actually make a contribution to solving the problem [i.e., of clean technology adoption and proliferation]." Soros didn't provide any other details on the nature or scope of his investments.
Continue reading Soros to put $1 billion into clean-tech companies
Posted Oct 7th 2009 12:00PM by Tom Johansmeyer (RSS feed)
Filed under: Private equity, Technology, Green Stocks
We're tired of bubbles, right? Anyone 30 or older has lived through two big ones so far, with a brief period of prosperity separating the decimation of dot-com largesse and mortgage-fueled paper wealth. It could take until 2014 for the jobs lost to be replenished, and there's little reason for optimism.
So, with the economy in the tank, we can focus elsewhere -- maybe on saving the planet. If we can't put green in our wallets, maybe we can add some to our lifestyles. Or, you could do both. Green technology could be the next boom in the United States, even if we do lag some parts of the world, and investing in clean solutions is really nothing other than investing in the next big thing. Even if you don't give a damn about climate change (or don't think it exists at all), the green market could likely become your employer -- or trigger the economic growth that will create your next job.
Some signs are visible already.
Continue reading Five signs that green is the next bubble
Posted Oct 2nd 2009 3:20PM by Tom Johansmeyer (RSS feed)
Filed under: India, China, Private equity, Technology, Israel, Green Stocks
Venture capital investment in clean technology grew 10% from the second quarter to the third this year. According to a report by the Cleantech Group and Deloitte, 134 companies received investments of $1.59 billion – up from $1.2 billion in the second quarter. The sector's upward trajectory continues, with last quarter marking the second in a row of double-digit growth. In the first quarter of 2009, venture capital investment in cleantech companies hit a low of $1 billion.
The strong third quarter has made the cleantech sector the largest in the venture capital business, according to the Cleantech Group, pulling ahead of biotech. Twenty-seven percent of venture capital funds invested in the second quarter of 2009 went to cleantech companies – up from 3% at the beginning of 2004.
Continue reading Cleantech VC funding up in Q3
Posted Sep 26th 2009 11:40AM by Tom Johansmeyer (RSS feed)
Filed under: Internet, Google (GOOG), Yahoo! (YHOO), Time Warner (TWX), Private equity, Technology
Twitter's much-hyped $100 million round of financing closed Friday, cementing the company's (illiquid) value at $1 billion, though Twitter itself would not confirm the amount. T. Rowe Price and Insight Venture Partners participated in the deal, as expected, which is believed to be a precursor to an eventual liquidity event -- such as an IPO or acquisition.
In a way, it feels like 1999, where you have investors rushing to invest in high-profile companies, despite the absence of revenue models. Yet, Twitter may not be as bad off as the traditional folks think, especially if the goal is an acquisition. The company does say that it's pursuing revenue via corporate accounts. But, it's been saying this for a while, and we haven't seen anything yet. Also, it's leaving open the possibility of running ads on the site, though this wouldn't happen within the next three months.
Continue reading Twitter closes new round -- what's next?
Posted Aug 18th 2009 3:10PM by Tom Taulli (RSS feed)
Filed under: Next big thing, Personal finance
Since launching in September 2007, Mint.com has become a dominant player in the online personal finance space. In fact, the company has raised $14 million in venture capital from DAG Ventures, The Founder's Fund, Benchmark Capital, Shasta Ventures, First Round Capital, and Sherpalo. It was preemptive round; that is, Mint.com didn't seek out the money. Nice, huh?
So, to get the latest, I had a chance to talk to Mint.com's founder and CEO, Aaron Patzer. He said that the site is attracting 100,000 new registered users per month. In all, the user base is over 1.4 million (even President Obama's CTO, Aneesh Chopra, is an avid member). What's more, Mint.com is currently tracking over $175 billion in transactions and $47 billion in assets.
Continue reading Mint.com gets $14 million and some new cool features
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