Прогноз погоды

People

John Smith

John Smith, 47

Joined: 28 January 2014

Interests: No data

Jonnathan Coleman

Jonnathan Coleman, 31

Joined: 18 June 2014

About myself: You may say I'm a dreamer

Interests: Snowboarding, Cycling, Beer

Andrey II

Andrey II, 40

Joined: 08 January 2014

Interests: No data

David

David

Joined: 05 August 2014

Interests: No data

David Markham

David Markham, 64

Joined: 13 November 2014

Interests: No data

Michelle Li

Michelle Li, 40

Joined: 13 August 2014

Interests: No data

Max Almenas

Max Almenas, 51

Joined: 10 August 2014

Interests: No data

29Jan

29Jan, 30

Joined: 29 January 2014

Interests: No data

s82 s82

s82 s82, 25

Joined: 16 April 2014

Interests: No data

Wicca

Wicca, 35

Joined: 18 June 2014

Interests: No data

Phebe Paul

Phebe Paul, 25

Joined: 08 September 2014

Interests: No data

Артем 007

Артем 007, 40

Joined: 29 January 2014

About myself: Таки да!

Interests: Норвегия и Исландия

Alexey Geno

Alexey Geno, 7

Joined: 25 June 2015

About myself: Хай

Interests: Интерес1daasdfasf

Verg Matthews

Verg Matthews, 67

Joined: 25 June 2015

Interests: No data

CHEMICALS 4 WORLD DEVEN DHELARIYA

CHEMICALS 4 WORLD…, 32

Joined: 22 December 2014

Interests: No data



Main article: Private Equity

<< Back Forward >>
Topics from 1 to 10 | in all: 229

Corporate venture investment climbs higher throughout 2018

21:00 | 22 September

Jason Rowley Contributor
Jason Rowley is a venture capital and technology reporter for Crunchbase News.

Many corporations are pinning their futures on their venture investment portfolios. If you can’t beat startups at the innovation game, go into business with them as financial partners.

Though many technology companies have robust venture investment initiatives—Alphabet’s venture funding universe and Intel Capital’s prolific approach to startup investment come to mind—other corporations are just now doubling down on venture investments.

Over the past several months, several big corporations committed additional capital to corporate investments. For example, defense firm Lockheed Martin added an additional $200 million to its in-house venture group back in June. Duck-represented insurance firm Aflac just bumped its corporate venture fund from $100 million to $250 million, and Cigna lust launched a $250 million fund of its own. This is to say nothing of financial vehicles like SoftBank’s truly enormous Vision Fund, into which the Japanese telecom giant invested $28 billion of its own capital.

And 2018 is on track to set a record for U.S. corporate involvement in venture deals. We come to this conclusion after analyzing corporate venture investment patterns of the top 100 publicly traded, U.S.-based companies (as ranked by market capitalizations at time of writing). The chart below shows that investing activity, broken out by stage, for each year since 2007.

A few things stick out in this chart.

The number of rounds these big corporations invest in is on track to set a new record in 2018. Keep in mind that there’s a little over one full quarter left in the year. And although the holidays tend to bring a modest slowdown in venture activity over time, there’s probably sufficient momentum to break prior records.

The other thing to note is that our subset of corporate investors have, over time, made more investments in seed and early-stage companies. In 2018 to date, seed and early-stage rounds account for over 60 percent of corporate venture deal flow, which may creep up as more rounds get reported. (There’s a documented reporting lag in angel, seed, and Series A deals in particular.) This is in line with the past couple of years.

Finally, we can view this chart as a kind of microcosm for blue-chip corporate risk attitudes over the past decade. It’s possible to see the fear and uncertainty of the 2008 financial crisis causing a pullback in risk capital investment.

Even though the crisis started in 2008, the stock market didn’t bottom out until 2009. You can see that bottom reflected in the low point of corporate venture investment activity. The economic recovery that followed, bolstered by cheap interest rates that ultimately yielded the slightly bloated and strung-out market for both public and private investors? We’re in the thick of it now.

Whereas most traditional venture firms are beholden to their limited partners, that investor base is often spread rather thinly between different pension funds, endowments, funds-of-funds, and high-net-worth family offices. With rare exception, corporate venture firms have just one investor: the corporation itself.

More often than not, that results in corporate venture investments being directionally aligned with corporate strategy. But corporations also invest in startups for the same reason garden-variety venture capitalists and angels do: to own a piece of the future.

A note on data

Our goal here was to develop as full a picture as possible of a corporation’s investing activity, which isn’t as straightforward as it sounds.

We started with a somewhat constrained dataset: the top 100 U.S.-based publicly traded companies, ranked by market capitalization at time of writing. We then traversed through each corporation’s network of sub-organizations as represented in Crunchbase data. This allowed us to collect not just the direct investments made by a given corporation, but investments made by its in-house venture funds and other subsidiaries as well.

It’s a similar method to what we did when investigating Alphabet’s investing universe. Using Alphabet as an example, we were able to capture its direct investments, plus the investments associated with its sub-organizations, and their sub-organizations in turn. Except instead of doing that for just one company, we did it for a list of 100.

This is by no means a perfect approach. It’s possible that corporations have venture arms listed in Crunchbase, but for one reason or another, the venture arm isn’t listed as a sub-organization of its corporate parent. Additionally, since most of the corporations on this list have a global presence despite being based in the United States, it’s likely that some of them make investments in foreign markets that don’t get reported.

 


0

Eventbrite’s IPO should encourage tech companies to get out while they still can

22:09 | 20 September

Eventbrite is having one hell of a debut on the New York Stock Exchange this morning.

Shares of the ticketing startup, founded back in 2006, have shot up over 50% in trading on the NYSE. After pricing its shares at $23 in its initial offering, investors have bid up the stock to a whopping $37, putting the company’s valuation at nearly $3 billion.

prices $23, opens $36 pic.twitter.com/cYgCuqbmh8

 ‍ ☕ (@hunterwalk)

That’s well above where the ticketing company had hoped to be when it initially set terms for the public offering earlier this month.

The company started trading priced above its share price and nearly doubled its valuation. And if Eventbrite can do it, really almost any later stage startup should be thinking about the public markets right now.

Performance for the San Francisco ticketing company has been… somewhat lackluster. As we noted when wrote about the company’s offering:

Eventbrite is not profitable and has been losing money since 2016. According to the documents, it posted losses of $40.4 million in 2016 and $38.5 million in 2017. In the first six months of 2018, the company has posted a net loss of $15.6 million. The company is making changes to make up for some of those losses — at the end of August, it announced a new pricing scheme for its customers using the “Essentials” package.

Its revenue is rising though, increasing from $133 million in 2016 to $201 million last year.

Since the beginning of the year tech public offerings have been on a tear. As The Wall Street Journal noted in July, 120 companies had raised $35.2 billion on U.S. exchanges at that point — the best showing for public markets since 2014 and the fourth busiest year since 1995, according to the financial data and analysis service Dealogic.

We’ve noted before that it’s a bit mind-boggling that investors and their portfolio companies wouldn’t be taking more advantage of these heady times. Nothing lasts forever (not even cold November rain) and certainly not markets that have been this bullish for this long.

Some of the reasoning is likely thanks to a market that’s still awash in private equity, sovereign wealth and late stage dollars. SoftBank has hundreds of billions to invest; private equity firms are beginning to look at growth stage companies the way that I look at banana cream pies from Cassell’s; and venture firms are beefing up bigtime to keep up with the Joneses (or in this case, the Blackstoneses).

However, the fun is certainly going to come to an end, and likely sooner rather than later. Early stage investors are beginning to dole out their advice on lowering cash burn (something that happens every time they see the beginning of the end of the beginning of the end).

Low burn rates have gone out of fashion, but I expect we'll be reminded very quickly at the beginning of the next downturn why they're so valuable for early-stage startups.

— Sam Altman (@sama)

With that in mind, later stage companies should be looking for the exit signs wherever they can find them. Right now, that’s an IPO window which seems to be wide open.

 


0

Base10’s debut fund is the largest-ever for a Black-led VC firm

14:30 | 17 September

Adeyemi Ajao (above left), the co-founder and managing director of Base10 Partners, was surprised to hear his firm’s $137 million fund was the largest debut to date for a black-led venture capital firm.

He and his co-founder — managing director TJ Nahigian (above right) — found out from none other than their fund’s own limited partners, who told them they should seek out institutions looking to invest in diverse fund managers.

“Oh man, I was like, ‘yeah, I know I’m black but so what?'” Ajao told TechCrunch. “I can be a little bit naive about these things until they become extremely apparent.”

Ajao is African, European, Latin, and now, having spent a decade in San Francisco, American. Growing up in between Spain and Nigeria, it wasn’t until landing in the Bay Area that he was forced to confront a social dynamic absent in his international upbringing: racial inequality and being black in America.

“The U.S. is pretty different about those things,” he said. “I was surprised when at Stanford I got an invitation to a dinner of the Black Business Student Association. I’m like, ‘why would there be a Black Business Student Association? That’s so weird?’ It took me a while, a good, good while, to be like ok, here there’s actually a really entrenched history of a clash and people being treated differently day-to-day.”

In the business of venture capital, the gap in funding for black founders and other underrepresented entrepreneurs is jarring. There’s not a lot of good data out there to illustrate the gap, but one recent study by digitalundivided showed the median amount of funding raised by black women founders is $0, because most companies founded by black women receive no money.  

Ajao certainly hadn’t thought the color of his skin would impact his fundraising process, and, in retrospect, he doesn’t think it did. Still, he recognizes that pattern recognition and implicit bias continue to be barriers for diverse founders and investors.

Now, he plans to leverage his unique worldview to identify the next wave of unicorns others VCs are missing. Base10 doesn’t have a diversity thesis per say but it plans to invest in global companies fixing problems that affect 99 percent of the world, not the Silicon Valley 1 percent. 

I sat down with Ajao in Base10’s San Francisco office to discuss his background, the firm’s investment focus and the importance of looking beyond the Silicon Valley bubble.

Automation of the real economy

Base10 is writing seed and Series A checks between 500,000 and $5 million. It’s completed 10 investments so far, including in Brazilian mobility startups Grin and Yellow, which closed a $63 million Series A last week.

The firm is looking for entrepreneurs who have spent years in their industries, whether that be agriculture, logistics, waste management, construction, real estate or otherwise, and are trying to solve problems they’ve experienced first-hand.

“We are much more likely to fund someone that actually worked for eight years on a construction site and was like, ‘you know what, I think this could be done better and maybe I can make my life easier with automation,’ rather than a Ph.D. in AI out of the Stanford lab that says ‘I think construction is inefficient and it can be done without people,'” Ajao said. “[We are] kind of flipping the paradigm in that sense.”

The firm has also backed birth control delivery startup The Pill Club, on-demand staffing company Wonolo and Tokensoft, a platform for compliant token sales. 

Beyond the bubble

Ajao and Nahigian have a mix of operational and investing experience.

On the VC side, Nahigian, a Los Angeles native, spent seven years investing via Summit Partners, Accel, then Coatue Management. In 2014, he co-founded Jobr, a mobile job platform that was later acquired by Monster, where he became the VP of product and head of mobile.

Ajao was most recently a VP at Workday where he led the launch of Workday Ventures, a VC fund focused on AI for enterprise software. He joined Workday after the company acquired his startup, Identified, in what was his second successful exit to date. Before that, he co-founded Spanish social media company Tuenti, which Telefonica paid $100 million for in 2010

He also helped incubate and launch Cabify, a Spanish ride-hailing company based in Madrid. The Uber competitor raised $160 million at a $1.4 billion valuation earlier this year.

Ajao was Nahigian’s first investor in Jobr, which was also backed by Tim Draper, Redpoint Ventures, Eniac Ventures, Lowercase Capital and more. The pair stayed in touch, discussed startups and potential deals, ultimately deciding to go into business together. 

They agreed Base10 should support companies solving real problems and that as investors, they needed to be able to see beyond the Silicon Valley bubble.

Do we feel a little bit of a responsibility? Like … ‘hey, you should help Silicon Valley be more aware of global issues.’ Yes,” Ajao said. “I try to spend a lot of time meeting with founders that either look different or are trying to make it here and I try to be super open about my journey and my travels.”

His piece of advice to other VCs is one that countless diverse founders and investors have been shouting at the top of their lungs: Invest in underrepresented founders, it’s just good business.

“If you have the same company and one is run by a female and one is run by a male, and it’s the same stuff, you should probably invest in the female, because that person probably had a harder time getting there,” he said. “It’s actually good business. I believe that.”

“The more open and comfortable we get about talking about these things, the better it is for both parties.”

 


0

This is how much VCs are paid

03:17 | 15 September

Venture capital is known for being an opaque industry, so it’s no surprise most of us have no idea what the average VC earns in a year.

I got a closer look at the survey results of J. Thelander Consulting‘s annual venture firm compensation survey and, unsurprisingly, VCs make a lot of money.

Just how much? Well, of the 204 VCs surveyed (172 male and 32 female), the average general partner expects to make roughly $634,000 this year, including a bonus for 2017 performance.

The averages varied a bit depending on the size of the firm. VCs at firms with less than $250 million assets under management (AUM), for example, earn less than their counterparts at larger firms.

[gallery ids="1712989,1712990,1712991"]

 

GPs, who sit at the top of the ranks at VC firms, have the largest compensation packages. Their yearly bonuses are, on average, larger than an associate’s, or entry-level investor’s, average base pay.

The survey didn’t parse out data from firms with billions AUM, aka the Sequoias, NEAs or Kleiner Perkins of the world. Those folks, if the above is any indicator, earn more.

Take note: This is all in addition to a VC’s carried interest, or percentage of a fund’s profits paid to firms’ partners.

 


0

Crypto’s second bubble, Juul has 60 days and three Chinese IPOs

16:10 | 14 September

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

After a long run of having guests climb aboard each week, we took a pause on that front, bringing together three of our regular hosts instead: Connie Loizos,

, and myself.

Despite the fact that there were just three of us instead of the usual four, we got through a mountain of stuff. Which was good as it was a surprisingly busy week, and we didn’t want to leave too much behind.

Up top we dug into the latest in the land of crypto, which Danny had politely summarized for us in an article. The gist of his argument is that the analogies relating crypto as an industry to the Internet may work, but most people have their timelines wrong: Crypto isn’t like the Internet in the 90s, perhaps. More like the 80s.

On the same topic, crypto companies formed a team lobbying effort, and a high-flying crypto fund is struggling to once again post strong profit figures.

Moving along, Juul is back in the news. Not, however, for raising more money or posting quick growth. Well, sort of the latter, as the government is after it. The Food and Drug Administration has put Juul on a countdown to get its act together regarding teens and smoking. That the financially-impressive unicorn is in as much trouble as it is nearly surprising.

Finally, we ran through the three most recent Chinese IPOs that hit our radar. Here they are:

  • Meituan Dianping: The Tencent-backed group buying, delivery, and everything company raised over $4 billion in its debut, which was impressive, but also short of expectations. The firm won’t begin trading until the 20th, but it’s one more massive deal that got done in 2018.
  • 111: We spent a minute on the show discussing what counts as a technology company thanks to 111. We voted that the Chinese online-to-offline pharmacy startup did in fact count. So, it’s in our list. Some notes on its debut can be found here.
  • NIO: Finally on our list was NIO, a Chinese electric car company with, as we have discussed on Equity before, a shockingly short history of revenue generation. Whether the company is a gamble or not, it did raise $1 billion in its own offering. And its stock is off like a rocket to boot.

And that was the end of things. Thanks for sticking with us, as always. Speaking of which, our 100th episode is coming up. Who should we bring onto the show to celebrate?

Equity drops every Friday at 6:00 am PT, so subscribe to us on Apple PodcastsOvercast, Pocket Casts, Downcast and all the casts.

 


0

Golden Gate Ventures closes new $100M fund for Southeast Asia

04:21 | 14 September

Singapore’s Golden Gate Ventures has announced the close of its newest (and third) fund for Southeast Asia at a total of $100 million.

The first hit a first close in the summer, as TechCrunch reported at the time, and now it has reached full capacity. Seven-year-old Golden Gate said its LPs include existing backers Singapore sovereign fund Temasek, Korea’s Hanwha, Naver — the owner of messaging app Line — and EE Capital. Investors backing the firm for the first time through this fund include Mistletoe — the fund from Taizo Son, brother of SoftBank founder Masayoshi Son — Mitsui Fudosan, IDO Investments, CTBC Group, Korea Venture Investment Corporation (KVIC), and Ion Pacific.

Golden Gate was founded by former Silicon Valley-based trio Vinnie Lauria, Jeffrey Paine and Paul Bragiel . It has investments across five markets in Southeast Asia — with a particular focus on Indonesia and Singapore — and that portfolio includes Singapore’s Carousell, automotive marketplace Carro, P2P lending startup Funding Societies, payment enabler Omise and health tech startup Alodokter. Golden Gate’s previous fund was $60 million and it closed in 2016.

Some of the firm’s exits so far include the sale of Redmart to Lazada (although not a blockbuster), Priceline’s acquisition of WoomooLine’s acquisition of Temanjalan and the sale of Mapan (formerly Ruma) to Go-Jek. It claims that its first two funds have had distributions of cash (DPI) of 1.56x and 0.13x, and IRRs of 48 percent and 29 percent, respectively.

“When I compare the tech ecosystem of Southeast Asia (SEA) to other markets, it’s really hit an inflection point — annual investment is now measured in the billions. That puts SEA on a global stage with the US, China, and India. Yet there is a youthfulness that reminds me of Silicon Valley circa 2005, shortly before social media and the iPhone took off,” Lauria said in a statement.

A report from Google and Temasek forecasts that Southeast Asia’s digital economy will grow from $50 billion in 2017 to over $200 billion by 2025 as internet penetration continues to grow across the region thanks to increased ownership of smartphones. That opportunity to reach a cumulative population of over 600 million consumers — more of whom are online today than the entire U.S. population — is feeding optimism around startups and tech companies.

Golden Gate isn’t alone in developing a fund to explore those possibilities, there’s plenty of VC activity in the region.

Some of those include Openspace, which was formerly known as NSI Ventures and just closed a $135 million fund, Qualgro, which is raising a $100 million vehicle and Golden Equator, which paired up with Korea Investment Partners on a joint $88 million fund. Temasek-affiliated Vertex closed a $210 million fund last year and that remains a record for Southeast Asia.

Golden Gate also has a dedicated crypto fund, LuneX, which is in the process of raising $10 million.

 


0

Chipmaker Renesas goes deeper into autonomous vehicles with $6.7B acquisition

08:46 | 11 September

Japan-based semiconductor firm Renesas — one of the world’s largest supplier of chips for the automotive industry — is scooping up U.S. chip company IDT in a $6.7 billion deal that increases its focus on self-driving technology.

Renesas produces microprocessor and circuits that power devices, and automotive is its core focus. It is second only to NXP on supply, and more than half of its revenue comes from automotive. IDT, meanwhile, includes power management and memory among its products, which focus on wireless networks and the converting and storing of data. Those are two areas that are increasingly important with the growth of connected devices and particularly vehicles which demand high levels of data streaming and interaction.

The acquisition of IDT — which is being made a 29.5 percent on its share price — is set to expand Renesas’ expertise on autonomous vehicles. The firm said it would also broaden its business into the “data economy” space, such as robotics, data centers and other types of connected devices.

Renesas has already demoed self-driving car tech, which puts it into direct competition with the likes of Intel . Last year, the firm paid $3.2 billion to buy up Intersil, which develops technology for controlling battery voltage in hybrid and electric vehicles, and IDT deal pushes it further in that direction.

“There’s little overlap between their product portfolios, so it’s a strategically sound move for Renesas. But it does seem like the price is a little high,” said Bloomberg analyst Masahiro Wakasugi.

The IDT deal has been on the table for a couple of weeks after Renesas first revealed its interest in an acquisition last month. It is expected to close in the first half of 2019 following relevant approvals.

 


0

Is China’s digital silk road going to pave over Silicon Valley?

17:30 | 6 September

Norman Liang Contributor
Norman Liang is an investor with W.I. Harper.

Over the past 20 years, China has now grown into one of the largest consumer technology markets, with thousands of startups and funding rivaling Silicon Valley.

In 2018, Chinese entrepreneurs are seeking to expand their businesses beyond borders, establish international operations, and become global companies by listing on exchanges including the NASDAQ and NYSE.

More than ever Chinese entrepreneurs are confident in their ability to create a unicorn thanks to China’s digital transformation and its leading innovations in international markets.

Digital transformation through new native apps and services make scaling easier

Despite the talent war between China and the U.S. and large growing domestic markets, Chinese chief executives dream of successfully entering the U.S. Market. There is now global competition to attract Chinese startups to list on exchanges around the world. With a growing number of unicorns, entrepreneurs have an opportunity to go abroad and become global businesses by listing on foreign stock exchanges.

Today, China’s landscape is fueled by ideas, aspirations, and a desire to succeed at all costs. With slowing growth, many startups have begun to look abroad for growth and opportunities.

Throughout my career I have been fortunate to have a front seat to the local market as it has evolved over the past 20 years. As host to many Chinese entrepreneurs as friends and partners, I have noticed a single trend — Chinese entrepreneurs are infatuated with the US market, despite being a smaller market with more competition.

To succeed, Chinese entrepreneurs are seeking to list in International markets rather than the local stock market. In the second quarter of this year Chinese startups have attracted 47% of all global venture capital. To win highly competitive deals, China’s newly formed talent networks, a willingness to invest and expand, and eagerness to learn are the key to success for cross-border entrepreneurs who are looking for attention on the global stage.

In 2010, I was fortunate to be part of a room of Chinese entrepreneurs who visited the United States. They were all incredibly appreciative of the opportunities their companies had provided for them and dreamed of an IPO or raising capital in the United States. These companies were humble, hungry, and had products that had reached global scale with hundreds of users.

(Photo by Artur Widak/NurPhoto via Getty Images)

Global Aspirations

The Silicon Valley dream rings true for entrepreneurs around the world. Over the past 20 years, Silicon Valley has been a special place where startups were born. But in 2004, I took the first trip to meet with entrepreneurs in China and was fascinated by their technical ability, their focus to solve everyday problems, and ability to build teams and execute. The entrepreneurial dream continues to bring them here to the United States. Their ambitions are out of respect and a desire to play a part on the global stage and participate in the global conversation.

As they do there are a few advantages that Chinese entrepreneurs have in the current market.

1 – Mobile Internet adoption

Mobile Internet adoption in China is now at 48%, and is amongst the highest in the world. With 750 million active users and increasing time spent on the mobile screen, the mobile phone is a lifeline that is now as essential as bank accounts. Thanks to this digital transformation, it does not feel like digital wallets are hurting for adoption in China’s major cities where all workers are used to mobile payments with complete strangers for everything from short taxi rides, bike rides, or food from the local street food vendor.

2 – Large Local Market

China’s local Internet market is anchored by local investment that helps companies grow and scale. With competitive rounds, and a growing number of entrepreneurs from around the world, Chinese startups raised $25 billion last year. Many of these startups raise the capital locally since many of their operations and revenues come from the local market. With an increasing concern over regulation over things like capital controls, many entrepreneurs look to international financing options to grow and scale their businesses to other Internet users around the world.

3 – Digital Economy

China’s digital economy is more complex and mature than other parts of the world. More than 75% of China’s smartphone users are active users of mobile payments. The phone has become the center of China’s netizens. Their behavior is changing the way people market, discover, purchase, and deliver products and services. Whether it be classes on the phone to learn English, or buying a In the world of consumer and mobile startups, China is building the infrastructure as we speak. But with existing channels, and supply chains, entrepreneurs are able to build products and services that can scale beyond their borders. In China, there are now over 100billion mobile transactions happening on the phone.

(Photo credit should read JACQUELYN MARTIN/AFP/Getty Images)

Where does this leave things?

China is pulling ahead. With the mobile phone now home to 100 apps that people use to connect, communicate, eat, and share, Chinese companies are reaching profit and scale and looking to explore international markets.

Chinese entrepreneurs are just beginning to explore international markets. In the past, entrepreneurs came here to establish small teams to build partnerships. In the past decade, Chinese companies have been some of the leading acquirers of technology companies. Before its IPO, Alibaba acquired 95 startups in Silicon Valley and around the world.

We see Chinese technology startups looking to be global. From publishing world-class research, they are seeking connections to the global market, serving the overseas Chinese population around the world in the US, Europe, and Latin America, and looking for partners who can help them achieve the entrepreneur’s dream of a global IPO.

China’s large consumer market, rapid digital transformation, and its creativity are helping these entrepreneurs become the icons of a new generation in China and the United States. Investors should see their jobs as super-connectors, providing these entrepreneurs with capital, connections, and experience that helps their companies continue to grow and scale beyond China’s borders.

 

 


0

Insight Venture Partners buys content management platform Episerver for $1.1 billion

15:32 | 6 September

Episerver, the Irvine, California-based company which provides services for marketers to manage content, was bought by Insight Venture Partners for a cool $1.1 billion from the private equity firm Accel-KKR.

The company said it would use the money to fuel its plans for global expansion

“Episerver is at the center of a global digital transformation market that IDC expects to reach $1.7 trillion through 2019 and is expertly helping businesses of all sizes to digitize, optimize and personalize customer experiences,” said Deven Parekh, Managing Director at Insight Venture Partners, in a statement.

Back in 2015, Accel-KKR (the joint venture between ;one of Silicon Valley’s premier venture capital firms, Accel Partners, and private equity giant KKR),  had merged Episerver (known as EPiServer) with Ektron (we reported on the Ektron acquisition when it happened) to bulk up the content management business.

At the time of the merger, Episerver had 8,800 customers in roughly 30 countries, serving up digital assets to over 30,000 websites.

The company’s service allows businesses to have a single repository for all of their marketing messaging to enable for information to be disseminated from a central location to different national and international websites.

The idea is to make the customization and personalization of marketing messaging easier for far flung corners of a business.

Here’s what we wrote about the market around the time that Ektron was sold to Accel -KKR before its merger with Episerver.

… web content management itself has become increasingly commoditized as vendors share a common set of functionality, making it much more difficult to differentiate products in the market. One way companies including Ektron are trying to do that is to have a greater digital focus. In fact, the entire industry is pivoting to what they are calling customer experience management where they attempt to provide the optimal experience for the customer, however they interact with a company based on what they know about them.

This means that increasingly companies are trying to provide a more customized experience, rather than give everyone the same generic content. We recently reported on how Acquia is trying to provide ways to tell marketers more about visitors and present more customized content based on what they can glean from them, even when they are anonymous. You can still understand things like device, IP address and other information even when customers don’t choose to share information explicitly about themselves.

“We knew that Episerver had world-class products and people when we made the investment.  Accel-KKR worked to augment the leadership team, make a number of strategic acquisitions, help build out a stronger channel and significantly grow SaaS revenue,” said Jason Klein and Dean Jacobson, managing directors of Accel-KKR — in a weirdly jointly attributed statement (I’m assuming the two directors dictated the statement in unison to the public relations pro who served as a stenographer for this release… seriously y’all? A joint statement? That’s just stupid).

Episerver was advised by Goldman Sachs and Lazard, while Houlihan Lokey was a special advisor to Accel-KKR

The transaction, in which Episerver worked with advisors Goldman Sachs and Lazard, Houlihan Lokey acted as special advisor to Accel-KKR, and Insight Venture Partners was advised by Evercore.

 


0

Sino-U.S. investment firms are targeting over $4 billion for new funds launched this year

20:50 | 17 August

As limited partners increasingly demand greater exposure to emerging market opportunities, venture capital firms with a focus on Asia are bulking up their funds and chasing deals in an increasingly competitive race to own stakes in the next generation of local startups with global aspirations.

Over the last year, firms including DCM Ventures, GGV CapitalMatrix Partners China, and Qiming Venture Partners have all significantly increased the targets for their new funds. If each firm hits their targets, there’s roughly $4.4 billion in new capital that could be flooding into an already scorching market for investment into Chinese startups, according to SEC filings.

The largest of these new funds, by far, is GGV Capital, which has registered a new $1.8 billion fund with the Securities and Exchange Commission. Qiming Ventures has targeted $900 million for its latest fund, while DCM Ventures and Matrix Partners China are each looking for $750 million for their own new investment vehicles, according to securities filings.

Managing partners at the firms did not respond to a request for comment.

These four firms are among the last standing from the initial flood of U.S.-based venture capital firms that poured into Asia (and China specifically) in the first decade of the new millennium.

While marquee names like Kleiner Perkins, DFJ and others foundered in China, these four firms (along with global venture capital juggernauts like Sequoia Capital and NEA) put down deep roots and notched notable wins with investments in startups like Didi-Chuching, Kuaidi, Meituan-Dianping, Xiaomi, and many many more.

In part, these massive new funds are simply a response to the new world that venture investors find themselves in thanks to the massive amounts of capital raised by SoftBank with its $100 billion Vision Fund, or Sequoia with its $9 billion new investment vehicle.

Firms are also under pressure to raise more capital from limited partners, who want to reduce their exposure and consolidate their own investments around venture firms with track records of success and the ability to deploy capital into larger checks.

Couple those facts with the (still) low cost of capital given where interest rates are, and the sustained growth of technology companies across emerging market geographies, and you have a more willing pool of investors that want to commit more capital to emerging technology ecosystems (this is happening in Latin America too).

But there are also some contours of China’s competitive environment that are pushing these venture capital firms to raise increasingly larger funds.

One is the sheer size of the opportunity that exists for new technology companies in China. As the WeChat messaging service increasingly evolves into a new operating system, there are opportunities to scale quickly with larger infusions of capital to capture the market.

Like their peers in the U.S., Chinese companies are also delaying their public offerings and spending more time to build a better outcome with their IPOs. That’s putting pressure on earlier stage investors to raise capital so they don’t get crowded out in those later stage rounds.

Chinese entrepreneurs are also often putting in their own money to finance companies at the earliest stages, which means startups are more mature when they’re seeking their first round. It’s this phenomenon which leads to the $100 million Series A and B rounds that crop up in the Chinese market more regularly than in the U.S.

 


0
<< Back Forward >>
Topics from 1 to 10 | in all: 229

Site search


Last comments

Walmart retreats from its UK Asda business to hone its focus on competing with Amazon
Peter Short
Good luck
Peter Short

Evolve Foundation launches a $100 million fund to find startups working to relieve human suffering
Peter Short
Money will give hope
Peter Short

Boeing will build DARPA’s XS-1 experimental spaceplane
Peter Short
Great
Peter Short

Is a “robot tax” really an “innovation penalty”?
Peter Short
It need to be taxed also any organic substance ie food than is used as a calorie transfer needs tax…
Peter Short

Twitter Is Testing A Dedicated GIF Button On Mobile
Peter Short
Sounds great Facebook got a button a few years ago
Then it disappeared Twitter needs a bottom maybe…
Peter Short

Apple’s Next iPhone Rumored To Debut On September 9th
Peter Short
Looks like a nice cycle of a round year;)
Peter Short

AncestryDNA And Google’s Calico Team Up To Study Genetic Longevity
Peter Short
I'm still fascinated by DNA though I favour pure chemistry what could be
Offered is for future gen…
Peter Short

U.K. Push For Better Broadband For Startups
Verg Matthews
There has to an email option icon to send to the clowns in MTNL ... the govt of India's service pro…
Verg Matthews

CrunchWeek: Apple Makes Music, Oculus Aims For Mainstream, Twitter CEO Shakeup
Peter Short
Noted Google maybe grooming Twitter as a partner in Social Media but with whistle blowing coming to…
Peter Short

CrunchWeek: Apple Makes Music, Oculus Aims For Mainstream, Twitter CEO Shakeup
Peter Short
Noted Google maybe grooming Twitter as a partner in Social Media but with whistle blowing coming to…
Peter Short