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☆ Venture Fundraising Hits Nine-Year Low
▼ + stars: | 2023-02-20 | by ( Berber Jin | ) www.wsj.com time to read: 1 min

Sequoia Capital changed the fees it charges limited partners to better reflect the slowdown. Fundraising by venture-capital firms hit a nine-year low in the fourth quarter, as the macroeconomic pressures that already weighed on technology startups began to affect the investors who underpin the industry. Venture firms raised $20.6 billion in new funds in the fourth quarter. That was a 65% drop from the year-earlier quarter and the lowest fourth-quarter amount since 2013, according to data firm Preqin Ltd., which tracks venture-fund data. The amount was also less than half the level raised in the preceding three months, the first time fundraising volumes decreased from the third to fourth quarter since 2009, the data show.

☆ Rise of 'zombie' VCs haunts tech investors as plunging valuations hammer the industry
▼ + stars: | 2023-02-16 | by ( Ryan Browne | ) www.cnbc.com time to read: +6 min

Startup investors are increasingly warning of an apocalyptic scenario in the VC world — namely, the emergence of "zombie" VC firms that are struggling to raise their next fund. Life becomes harder for zombie firms in a higher interest rate environment, as it increases their borrowing costs. Investors expect this gloomy economic backdrop to create a horde of zombie funds that, no longer producing returns, instead focus on managing their existing portfolios — while preparing to eventually wind down. "There are definitely zombie VC firms out there. "We're going to see a lot more zombie venture capital firms this year," Steve Saraccino, founder of VC firm Activant Capital, told CNBC.

[1/3] Representations of cryptocurrencies are seen in front of displayed FTX logo in this illustration taken November 10, 2022. Sequoia, Thoma Bravo and Paradigm did not immediately respond on Wednesday to requests for comment. The 30-year-old son of Stanford Law School professors has pleaded not guilty to fraud and other charges for allegedly looting billions of dollars from FTX customers. A Manhattan federal court hearing on whether to tighten bail is scheduled for Thursday, after Bankman-Fried allegedly tried to communicate improperly with potential government witnesses. The case is Rabbitte v Sequoia Capital Operations LLC et al, U.S. District Court, Northern District of California, No.

☆ Joshua Kushner's $3 billion Thrive Capital VC fund has lost 31% in the past year, according to a major endowment backer
▼ + stars: | 2023-02-13 | by ( Ben Bergman | ) www.businessinsider.com time to read: +3 min

Thrive announced at the beginning of last year it closed a massive $3 billion fund. By the end of the year, one of the fund's major investors marked down its stake by 31%. Thrive Capital, the New York-based venture firm founded in 2009 by Joshua Kushner, announced at the beginning of last year it closed a massive $3 billion fund, with $500 million earmarked for early-stage startups and another $2.5 billion devoted later-stage companies. Thrive is also in talks to make another $1 billion investment in Stripe, Bloomberg recently reported. And Thrive is also in talks to invest in OpenAI through a tender offer, the Wall Street Journal reported.

☆ Sam Bankman-Fried — who once said every book should be a '6-paragraph blog post' — says he's written over 1,000 pages about FTX's collapse while under house arrest
▼ + stars: | 2023-02-09 | by ( Pete Syme | ) www.businessinsider.com time to read: +3 min

Sam Bankman-Fried has previously said "I would never read a book" and prefers blog posts. But since he's been under house arrest, SBF has written over 1,000 pages, the FT reported. Bankman-Fried passes his time writing and speaking to his lawyers, the paper said. Last September, in an interview with Sequoia Capital, a major investor in FTX, Bankman-Fried said he was skeptical of books as a concept, saying: "I would never read a book." "I think, if you wrote a book, you fucked up, and it should have been a six-paragraph blog post," he added.

☆ In leaked document, Ohio venture capitalist and Sequoia alum Mark Kvamme shows off plans for a $500 million state-focused fund
▼ + stars: | 2023-02-01 | by ( Melia Russell | ) www.businessinsider.com time to read: +4 min

VC Mark Kvamme is raising $500 million for something akin to a sovereign wealth fund for Ohio. Dubbed The Ohio Fund, the investment company will be funded by Ohio institutions and individuals. The Ohio Fund will need to hire investors who founders want to work with. Mark Kwamme, partner emeritus at Drive Capital, is raising a statewide fund in his home state, Ohio. If The Ohio Fund reaches its fundraising goals, Kvamme, according to the presentation, plans to serve as president and chief investment officer.

☆ Crypto startups are getting more due diligence heat from VCs after several high-profile blowups in the industry. But loose accounting standards are making it challenging.
▼ + stars: | 2023-01-30 | by ( April Joyner | ) www.businessinsider.com time to read: +4 min

Investors are conducting more rigorous due diligence on crypto startups in the wake of FTX's blowup. Founders told Insider VCs are asking for background checks and more detailed performance metrics. But loose accounting standards in the industry make it hard for investors to vet company financials. After a series of bankruptcies in the crypto industry, venture capitalists are looking much more closely into the inner workings of blockchain and Web3-related startups before they cut a check. The collapse of FTX exposed serious flaws in its investors' due diligence process, several VCs and founders said.

☆ Inside Ken Griffin's rise to one of Wall Street's most powerful people, and why politics could be next
▼ + stars: | 2023-01-23 | by ( Dakin Campbell | ) www.businessinsider.com time to read: +30 min

JB and I are not on speaking terms these days," said Ken Griffin, the billionaire hedge-fund manager, referring to JB Pritzker, the Democratic governor of Illinois. As Florida rolled back pandemic restrictions more quickly than Chicago, even more Citadel employees migrated south. Ken Griffin's hedge fund has had a run of eye-popping returns since 2020. Others worry that it gives Griffin's hedge fund an unfair advantage. Hundreds of Citadel employees, partners, and families gathered at the Orange County Convention Center in Orlando Florida.

☆ Private venture-capital returns from one of the largest endowments reveal Union Square Ventures has been wildly successful. Sequoia and Y Combinator have lost money so far.
▼ + stars: | 2023-01-23 | by ( Ben Bergman | ) www.businessinsider.com time to read: +6 min

USV's 2004 fund returned more than $305 million in cash from a $22 million UTIMCO investment, with an IRR of 66%. Thrive Capital, the venture firm Joshua Kushner founded in 2009, has delivered -34% IRR on two funds from late 2021. UTIMCO's $6.7 million invested has been marked down to $4.6 million. Two funds UTIMCO invested in the VC firm Initialized at the beginning of 2022 have a -5.5% IRR. Upfront Ventures, the most prominent early-stage firm in Los Angeles, has returned only $31 million though UTIMCO invested $110 million since 2015.

☆ Sequoia Capital cuts fees for new funds amid VC slowdown
▼ + stars: | 2023-01-13 | by ( Krystal Hu | ) www.reuters.com time to read: +2 min

Jan 13 (Reuters) - Sequoia Capital has lowered management fees in its two recently-launched venture funds as it braces for a slower investment environment, partner Alfred Lin said on Thursday. Sequoia launched a $950 million ecosystem fund to back scouts and funds formed by Sequoia alums, and a $600 million crypto fund to invest in crypto companies and tokens. So far, 10% of the crypto fund has been deployed, Lin said. The move marks an unusual concession by the world’s top venture investor after U.S. venture capital deals fell from their 2021 peak by 31%. Lin said the firm remained committed to crypto investment.

☆ Can a Plucky Skin-Care Products Startup Unfreeze India’s IPO Market?
▼ + stars: | 2023-01-12 | by ( Megha Mandavia | ) www.wsj.com time to read: 1 min

Initial public offerings from Indian startups have remained largely in the deep freeze for the past 12 months. A Sequoia Capital-backed beauty and personal-care-products startup is now hoping to break the curse. At the tail end of 2022, the parent of Indian personal-care-products startup Mamaearth—Honasa Consumer Ltd.—filed for an initial public offering. The company plans to issue new shares worth 4 billion Indian rupees ($49 million) and sell 46.8 million existing shares. Investors including Sofina, Stellaris Venture Partners and Fireside Ventures would sell part of their stakes while Sequoia would stay put.

☆ FTX bankruptcy documents show list of investors set to be completely wiped out, including Tom Brady and Robert Kraft
▼ + stars: | 2023-01-10 | by ( Matthew Fox | ) www.businessinsider.com time to read: +3 min

FTX released a list of its equity holders on Monday as it continues to navigate the bankruptcy process. Some of the top holders of FTX equity included in the list are Tom Brady, Robert Kraft, and Gisele Bündchen. The FTX shares owned by Brady, Kraft, and Bündchen are expected to be worthless. Billionaire Robert Kraft, who owns the New England Patriots football team, was also listed in the FTX bankruptcy document. Other investors on FTX's equity-holder list include Wall Street's elite hedge funds and growth investors, according to the bankruptcy document.

☆ Pitch Decks That Advertising Tech Startups Used to Raise Millions
▼ + stars: | 2023-01-10 | by ( Business Insider | ) www.businessinsider.com time to read: +19 min

Check out these pitch decks that they've used to sell their vision and raise millions from private equity and VC investors. Blocking ad fraudAdtech startup Lunio, announced a $15 million Series A funding round in September 2022. In May 2022, the software-as-a-service startup raised a $30 million Series B round, led by Insight Partners. Marketing in the metaverseAnima, an augmented-reality startup, raised a $3 million funding round from investors in Janury. He raised $50 million in Series D after closing a $34 million Series C last year, bringing its total raised to $100 million.

☆ FTX's venture backers included Patriots owner Robert Kraft and billionaire Paul Tudor Jones, new filings show
▼ + stars: | 2023-01-10 | by ( Rohan Goswami | ) www.cnbc.com time to read: +2 min

The roster of high-profile investors who lost money betting on crypto exchange FTX also included New England Patriots owner Robert Kraft and billionaire hedge fund manager Paul Tudor Jones, according to court filings released late Monday. FTX's venture investors included a host of luminaries. Dan Loeb controlled over 6.1 million preferred shares through Third Point-connected venture funds. Rival exchange Coinbase held nearly 1.3 million preferred shares. CNBC has compiled and analyzed the following preferred share ownership using Delaware bankruptcy court filings.

☆ The ultimate insider's guide to the dramatic downfall of Sam Bankman-Fried, Caroline Ellison, and FTX
▼ + stars: | 2023-01-01 | by ( Sindhu Sundar | ) www.businessinsider.com time to read: +11 min

Sam Bankman-Fried is facing criminal charges and is expected to enter a plea on Jan. 3. Read Insider's coverage of Bankman-Fried:FTX founder Sam Bankman-Fried gets by on 4 hours' sleep and multitasks on 6 screens. Now hit with 7 criminal charges, Ellison has pleaded guilty and expressed contrition before the New York federal court presiding over the criminal cases involving Bankman-Fried. Sam Bankman-Fried is in jail, but legal watchers are wondering: Where's ex-girlfriend Caroline Ellison? Sam Bankman-Fried hit with 8 criminal charges, including fraud and conspiracy for allegedly 'misappropriating' FTX customer fundsThe SEC has charged Sam Bankman-Fried and accused him of 'orchestrating a massive, years-long fraud'The criminal charges against Sam Bankman-Fried carry big penalties and jail time if proven, legal experts sayRead the CFTC complaint against FTX's Sam Bankman-Fried and his associates Caroline Ellison and Gary WangThe charges against Caroline Ellison, SBF, and FTX cofounder Gary Wang — in 60 seconds

☆ Boardrooms will rediscover the value of gray hair
▼ + stars: | 2022-12-29 | by ( John Foley | ) www.reuters.com time to read: +3 min

To firms keen to avoid repeating past mistakes, the graying of the Western workforce may not be a bad thing in 2023. The share of European over-55s in jobs grew to 20% in 2019, from 12% in 2014, according to official data. The typical incoming CEO is 55, a decade older than the average in 2005, according to Crist Kolder Associates. Money markets are pricing in U.S. rates of 5% by the summer. Financial markets will always love the next new thing, but for the time being, gray is good.

☆ Silicon Valley is coming for your gut biome
▼ + stars: | 2022-12-23 | by ( David Ingram | David Ingram Covers Tech For Nbc News. | ) www.nbcnews.com time to read: +8 min

SAN FRANCISCO — Cryptocurrency hasn’t worked out so well for tech investors. As a consumer product, supplements are associated more with the Kardashians or Joe Rogan than with Silicon Valley. Roelof Botha, the managing partner of Sequoia Capital, one of the largest venture capital firms in the world, is among those buying in. He said there’s a “societal reawakening” about the complex biome of the human gut where hundreds of species of bacteria live. She co-wrote a review of the science this year, and said future probiotic supplements have promise compared to supplements that have been available for decades.

☆ Sam Bankman-Fried loved playing 'League of Legends' in meetings. Now the game's maker wants out of its $96 million FTX sponsorship deal.
▼ + stars: | 2022-12-22 | by ( Travis Clark | ) www.businessinsider.com time to read: +3 min

Riot Games wants out of a roughly $96 million agreement with bankrupt crypto firm FTX. Last week, the company cited "reputational harm" in a court filing, in which it outlined the terms of the deal. But now Riot wants to terminate the agreement amid FTX's collapse and its cofounder and former CEO Sam Bankman-Fried's arrest earlier this month for numerous fraud-related charges. "Media outlets and Twitter commentators splashed images of Mr. Bankman-Fried playing 'League of Legends' — Riot Games' game — at the same time that FTX was crashing." Riot Games and FTX did not immediately reply to Insider's request for comment.

☆ Workday names Sequoia's Carl Eschenbach as co-CEO, alongside Aneel Bhusri
▼ + stars: | 2022-12-20 | by ( Jordan Novet | ) www.cnbc.com time to read: +1 min

Workday said on Tuesday that co-CEO Chano Fernandez is leaving the company and being replaced by Sequoia Capital's Carl Eschenbach, a former VMware executive and member of Workday's board. Eschenbach will serve alongside Aneel Bhusri, who co-founded the company in 2005. Bhusri became a co-CEO again in 2020 with the appointment of Fernandez, a former SAP executive who joined Workday in 2014. Before Workday, Bhusri held leadership roles at PeopleSoft, which Oracle acquired in 2005 for $11.1 billion. WATCH: Workday co-CEO on the firm's quarterly results and why its finance applications saw strength

☆ FTX's collapse is shaking crypto to its core. The pain may not be over
▼ + stars: | 2022-12-19 | by ( Ryan Browne | ) www.cnbc.com time to read: +1 min

The crypto industry has been rocked by the collapse of FTX. Big-name investors from Sequoia Capital to SoftBank dumped hundreds of millions of dollars into the company, making bets that are now worthless. Contagion from the debacle is already playing out, with crypto lender BlockFi now seeking bankruptcy protection after revealing lending exposure to FTX and Alameda. "Nothing's too big to fail," says Ian Rogers, chief experience officer of crypto security firm Ledger. Is it time to abandon crypto exchanges, or is there still a place for centralized firms in an industry that prides itself on decentralization?

☆ Elon had to choose between Twitter and Tesla. He's choosing Tesla.
▼ + stars: | 2022-12-19 | by ( Hasan Chowdhury | ) www.businessinsider.com time to read: +7 min

Elon Musk has been forced to make a tough choice: Tesla or Twitter. He's picking Tesla, which represents nearly half his $156 billion in estimated wealth, and the Twitter poll gave him a handy escape pod. That red ink wasn't as much of a problem when interest rates were low, and Tesla's shares were soaring. But as the Federal Reserve has aggressively hiked interest rates to curb inflation, using Tesla stock to pay off the debt on the Twitter buyout is a problem for Tesla. "Tesla is so much an Elon stock, it stands or falls because of him," Beauchamp said.

☆ Sam Bankman-Fried's FTX had the corporate governance of a college fraternity, congressman says
▼ + stars: | 2022-12-15 | by ( Morgan Chittum | ) www.businessinsider.com time to read: +3 min

A congressman likened collapsed exchange FTX's corporate governance to a college fraternity. "It would be laughable were it not so serious," congressman Ritchie Torres said. In reality, the company was more like a college fraternity, congressman Ritchie Torres says, with haphazard and reckless bookkeeping practices. "FTX had the corporate governance of a fraternity," Torres, a member of the House Financial Services Committee, told Coindesk TV on Wednesday. The now-bankrupt exchange used QuickBooks, an accounting software generally used by smaller businesses, not multi-billion dollar companies.

New York CNN —FTX founder Sam Bankman-Fried was indicted on eight criminal charges including wire fraud and conspiracy by misusing customer funds, according to an indictment from the US Attorney of the Southern District of New York. Separately Tuesday, US markets regulators charged Bankman-Fried with defrauding investors and customers in his failed crypto exchange FTX. The Securities and Exchange Commission said Bankman-Fried, “orchestrated a years-long fraud” to conceal from FTX investors the diversion of customer funds to Alameda Research, his crypto-trading hedge fund. Star athletes and celebrities who backed FTX also reportedly received a stake in the company, including Tom Brady and Gisele. That meant there was no meaningful distinction between FTX customer funds and Alameda’s funds that Bankman-Fried used as his “personal piggy bank,” the complaint says.

☆ The Rise and Fall of Respectability
▼ + stars: | 2022-12-09 | by ( Adam Kirsch | ) www.wsj.com time to read: +1 min

When the ledger is drawn up on the tech revolutions of the last thirty years—the internet, smart phones, social media, crypto—the losses are generally outweighed by the gains. It’s hard to deeply regret the disappearance of department stores, CD players and checkbooks when we have Amazon , Spotify and Apple Pay. The decline of respectability as an ideal has been at the center of two tech-world sagas unfolding in recent weeks: the collapse of the crypto exchange FTX and Elon Musk’s tumultuous takeover of Twitter. In this context, the most telling detail in the FTX saga doesn’t have to do with dubious tokens or suspicious accounting. Rather, it involves League of Legends, the massive multiplayer online game that is a favorite of FTX founder Sam Bankman-Fried .

But many are delaying IPOs amid a stock market rout that has raised concerns over frothy tech valuations. In a statement to Reuters, Snapdeal said it has decided to withdraw the IPO prospectus "considering the prevailing market conditions", without elaborating. It adding that Snapdeal may reconsider an IPO in future depending on its need for capital and market conditions. The change of Snapdeal's plans comes as tech stocks in India that listed in recent years face investors' wrath. In August, TPG and Prosus-funded Indian online pharmcy PharmEasy withdrew papers for its $760 million IPO, while Warburg Pincus-backed seller of wireless earphones, boAT Lifestyle, also withdrew its papers in October.

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