The rolling one-year internal rate of return (IRR) for VC funds dipped to 59.9% as of Q3’21, ending five consecutive quarterly increases since Q1’20. According to preliminary data by PitchBook, the IRR for funds under $250M diverged from that of their larger counterparts, increasing to 71.1%. More: - Quarterly IRR across all VC funds as of Q3 2021 dipped to 8.7%, with data indicating that further drops are to be expected.
- Notably, the data reflect the strong exit environment of last year, which came to a grinding halt in Q1’22.
- For all funds of vintages other than 2018, the data showed residual value to paid-in (RVPI) growth for every in Q3’21, indicating increasing LP appetite for the VC strategy.
- This certainly makes sense given the numbers: Compared to all other private fund strategies, VC’s 10-year horizon IRR of 17% comes in behind only growth-expansion’s 19.8%.
- Based on reported IRRs, VC’s top-decile performers for vintages 2004 to 2016 were up at least 37.1%.
- However, the median was at 14.5%, and the bottom decile lost 7.6% or more.
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New York-based Lev, a digital real estate finance marketplace provider, raised $70M. The Series B round was led by Parker89 and Cross River Digital Ventures at an unknown valuation and brought the company’s total raised to date to $110M. More: - Citi Ventures, NFX, Animo Ventures, StepStone Group, Canaan Partners, JLL Spark, and Capital One also participated in the round.
- The deal comes as a confirmation of earlier reports, which pegged Lev’s valuation at $400M, though that figure was not corroborated.
- Additionally, Lev secured a $100M credit from Cross River’s strategic direct lending group, which it will use for its own lending program.
- 2019-founded Lev offers an automated platform enabling potential borrowers to compare and source financing.
- Its platform processes debt offerings from over 5,000 lenders.
- The company claims to process commercial real estate (CRE) loans up to three times faster than existing methods.
- In 2021, it closed nearly $1B in CRE mortgages, growing 10x YoY. That activity put it among the top 100 currently active CRE loan originators.
- Lev reports that it has facilitated $1.5B in loans to date.
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Elon Musk has enlisted a cadre of venture investors to back his bid to take over Twitter. The total amount of contributions comes out to $7.1B, with the single largest contribution ($1B) coming from Musk’s friend and Oracle co-founder Larry Ellison. A total of 18 partners rallied to the deal. More: - Several of the most familiar VC names were also represented. An $800M check is coming from Sequoia Capital, $700M from VyCapital, $500M from crypto company Binance, and $400M from Andreessen Horowitz.
- Other participants include Baron Capital, DFJ Growth, Fidelity, and the sovereign wealth fund of Qatar.
- Saudi Prince Alwaleed bin Talal will also roll over 35 million Twitter shares.
- Notably absent is Jack Dorsey, with whom discussions are ongoing, according to an SEC filing.
- Additionally, private equity giants such as Thoma Bravo and others, which were previously seen to be interested in a deal, have kept their distance, probably due to concerns about how Twitter will service the debt required to complete the sale.
- The total debt load required to clinch the deal has fallen from $12.5B to $6.25B, thanks to the new support.
- Twitter shares were up after the news broke but still below the deal’s offered price of $54.20, indicating ongoing concerns that it will not go through.
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Zora Labs, an NFT startup, raised $50M, led by Katie Haun's new firm, Haun Ventures. The round values the young company at $600M and saw participation from Coinbase Ventures and Kindred Ventures. More: - The round is the first deal led by Haun Ventures, which was launched in March with a $500M early-stage fund and a $1B acceleration fund.
- Founder Katie Haun famously departed from a16z and a fund she managed together with Chris Dixon to start the firm.
- Zora’s protocol enables artists and developers to create NFT marketplaces and collections.
- Its marketplace for users to list NFTs places it in direct competition with crypto giant OpenSea.
- OpenSea, in which Haun is an investor, still processes the majority of NFTs.
- Zora distinguishes itself by focusing on NFTs that are actually located on third-party sites.
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 Today’s Funding 💸 Biotech/Health - SideKick (Berlin, Germany), digital therapeutics: $55M B led by Novator Ventures, participation from Wellington Partners, Asabys Partners, Frumtak Ventures.
- Curebase (San Francisco, Calif.), technology-driven clinical trial startup: $40M B led by Industry Ventures, participation from Acrew Capital, World Innovation Lab, Positive Sum, Gaingels, GGV Capital, et al.
- XII Medical (Union City, Calif.), treatment of obstructive sleep apnea: $30M A led by Broadview Ventures, participation from Cleveland Clinic, Aperture Venture Partners, JobsOhio Growth Capital Fund, et al.
Blockchain ClimateTech - Sensible Weather (Los Angeles, Calif.), de-risking weather platform for travelers and travel partners: $12M A led by Infinity Ventures, participation from Certares Ventures, Derive Ventures, Wonder Ventures, Group1001.
Energy - Amperon (Houston, Texas), AI-powered grid forecasts: $7M A led by HSBC Asset Management, participation from Riverstone Holdings, Muus Asset Management, et al.
Enterprise - Kinetix (Paris, France), AI-assisted 3D animation: $11M Seed led by Adam Ghobarah.
- Hubble Technology (Reston, Va.), agentless technology asset visibility company: $9M Seed led by Paladin Capital Group, participation from Accel, CrowdStrike’s Falcon Fund, et al.
Fintech - Walnut (New York. N.Y.), BNPL platform: $10M A led by Gradient Ventures, participation from Newark Ventures, Afore Capital, 2048 Ventures. The company also raised $100M in debt.
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- Peloton is reportedly looking to sell a 20% stake following the departure of its CEO and its decision to cut 2,800 jobs. Previous reports claimed that the company was looking to sell itself outright.
- Unusual Ventures closed on $485M in new funds for its hands-on investment approach.
- rali_cap, an early-stage investor in fintech companies operating in emerging markets, hit the $20M first close of its latest fund and boosted the fund size based on LP appetite.
- Flybridge Capital has two new funds with a total of $150M to bet on pre-seed and seed-stage companies. The funds are divided between a $110M sixth flagship fund and four new Network Funds targeting female founders, under-estimated founders, Harvard grads, and C-level executives at unicorn startups.
- Construction equipment manufacturer Caterpillar has acquired energy grid pattern analysis company Tangent Energy Solutions for an undisclosed sum.
- On Deck will cut 25% of its workforce and scale back its accelerator. The sectors most affected by the layoffs are operations and investing. The firm provides a platform where founders can connect with each other, capital, and mentorship.
- If your site is struggling, it may be time for a more powerful commerce platform. Read our eBook and find out if your business is ready.*
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 |  | Inside VC's writer/curator Stephen currently lives in Berlin and is pursuing a Master's degree in philosophy. He otherwise spends his time trying his hand at recipes from India and Southeast Asia, escaping it all at the kickboxing gym, and offending aural sensibilities with his band. |  | | Editor | Aaron Crutchfield is based in the high desert of California. Over the last two decades, he has spent time writing and editing at various local newspapers and defense contractors in California. When he's not working, he can often be found looking at the latest memes with his kids or working on his 1962 Ford. | |
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