Hey, Insider! Want to be featured in next week’s newsletter? Answer our weekly question: Is it easier or harder to get venture capital today compared to 10-20 years ago? Share your response here. | |  Karan | |
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Spacecraft manufacturing and satellite communications technology company SpaceX is in talks with investors to raise a new funding round worth $750M, per CNBC. Elon Musk’s firm is reportedly aiming for a $137B valuation at the upcoming fundraiser, up from its previously reported valuation of $127B at last year’s equity funding round in May. More: - SpaceX raised a $1.7B venture round in May 2022, followed by a $250M funding in July led by Mirae Asset Venture Investment.
- To date, the firm has nabbed $9.8B through equity financing and grants.
- Per Bloomberg, the firm was allowing stakeholders to sell their shares at $77 apiece, giving the firm a valuation of ~$140B last month.
- The new funding round is likely to be led by Andreessen Horowitz.
- A16z has also backed Elon Musk’s leveraged buyout of Twitter.
- Currently, SpaceX is developing the Starship and Super Heavy launch vehicles.
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M&A activity in venture-backed startups is expected to pick up in 2023, as the funding tightening puts pressure on startups' sustainability and exit options. Dealmaking started strongly in the first half of 2022 but slowed in the fourth quarter as potential buyers started waiting for valuations of target companies to decline even further. More: - The number of M&A deals in 2022 matched all previous years, with the exception of 2021.
- The year saw some of the biggest M&A deals being announced, like Adobe's acquisition of Figma for $20B, Aptiv's acquisition of Wind River for $4.3B, and Sony's acquisition of Bungie for $3.6B.
- Dan Nash, senior managing director at Cohen & Co. Capital Markets, expects the number of deals to pick up in 2023 but that the deal values will remain low as buyers will be able to scoop up startups at lower valuations.
- Buyers are not expected to be in a rush to acquire companies "because of a perception that the market hasn't hit bottom," per Mike Ghaffary, a general partner at Canvas Ventures.
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Tiger Global is looking to accelerate its transition to a venture capital firm as losses mount in the company's hedge fund division. Tiger Global's hedge fund division lost 54% of its value in the first 11 months of 2022. However, the firm as a whole was able to minimize losses as it had already begun its transition to venture capital in 2022. 75% of the firm's assets are locked in venture capital bets, per Bloomberg. More: - Despite losing some value in 2022, the VC division has seen exponential growth over the last two years.
- Since the start of 2021, Tiger Global has made 683 venture capital and private equity bets.
- The firm raised a $12.7B venture fund in 2022, dubbed Private Investment Partners 15, to invest in consumer and tech startups, with a key focus on investments in India.
- As of September 2022, the firm had $58B in assets under management, three-fourths of which was from the venture division.
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Web3 sector startups were able to secure $7.1B in total funding throughout 2022. The funding was mostly diverted to the gaming, metaverse, and social network categories within the Web3 space. Funding in 2022 was almost twice the funding received by the sector in 2021. More: - $4.49B, or 62.5% of the total, was invested in the Web3 gaming domain, followed by $1.82B in metaverse and $259.1M in social networking apps.
- Infrastructure apps, AR / VR, and AI categories nabbed $200.8M, $178.6M, and $136.5M, respectively.
- Paradigm invested $2.5B in Web3 startups in 2022, taking the honors for the most active investor in the industry.
- Notable venture capitalist firm Andreessen Horowitz was the second largest investor in the domain, with investments in the year totaling $2.2B.
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Indian venture capitalists, corporate VCs, micro funds, and debt funds announced 126 new funds in 2022, twice 2021’s 61 funds. Collectively they were able to nab $18B in dry powder during the year, thrice the dry powder raised in 2021. VCs in India were able to launch 62 funds in the year, with $13.9B in commitments from limited partners. More: - Private equity funds, corporate VC funds, debt funds, angel funds, and accelerators were able to raise $2.5B, $353.8M, $818.7M, $156.7M, and $121.9M, respectively.
- Only 22% of the funds were sector agnostic, with the majority (78%) showing a preference for the enterprise tech, ESG, SaaS, fintech, healthtech, crypto, blockchain, and sportstech sectors.
- 62% of the total funds were aimed at early-stage startups, with the rest for growth and late-stage startups.
Zoom out: - The record-breaking dry powder fundraising came amidst a venture funding pullback that saw funding for Indian startups amount to $25B, down 40% from 2021.
- Investors took calculated risks and individual ticket sizes fell by 18%.
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Cambridge, Massachusetts-based clinical-stage biopharmaceutical firm Apnimed raised $79.75M in fresh funding. The funding is an extension of the firm’s $62.5M Series C round that closed in May 2022. The firm intends to use the incoming capital to fund two Phase 3 trials for its lead drug candidate, which has the potential to treat obstructive sleep apnea, a condition that affects roughly 35 million Americans. More: - The firm has raised a total of $207.8M in equity funding to date, per Crunchbase.
- The oversubscribed extension funding was led by Alpha Wave Ventures, with participation from Series C lead investor Sectoral Asset Management joined by other existing backers Columbia-Seligman Investments and Tao Capital Partners.
- According to the firm, its lead candidate AD109 combines novel selective antimuscarinic with a selective norepinephrine reuptake inhibitor to keep airways open during sleep and has the potential to be the first oral treatment for OSA.
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I'm Kiani from Inside.com, and last week, we asked our Inside Venture Capital community, "For early-stage startups, is crowdfunding a good alternative to venture capital?" We wanted to share a response. Gene Eidelman (p/geidelman), co-founder at Azure Printed Homes, says crowdfunding is an excellent way to raise funding for early-stage startups. He continues on the downsides, however, writing, "One downside is that the amount of money that an entrepreneur can raise may be limited compared to venture capital. Additionally, crowdfunding campaigns can be time-consuming and require a lot of effort to promote and manage. Also, only work with crowdfunding platforms that can have all investors listed as one entree on your cap table." Want your question featured? Ask a question! Join the conversations at Inside.com, and we may shout out your name and business or contact you for more! ⭐️
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Quick Hits: - This year, try a resolution that sticks — going to therapy with BetterHelp. Save 25% off your first month.*
- Cox Enterprise is poised to become a majority owner of advanced recycling company Nexus Circular through its recent $150M equity financing.
- Chinese venture firm Orient Jiafu received $145.3M (1B yuan) in capital commitments towards its fourth fund.
- Biotech firm Dantari emerged from stealth with a $47M Series A funding round led by Westlake Village BioPartners.
- STV and Wa'ed Ventures co-led a $28M Series A venture funding round into Saudi Arabian debt and investment startup Manafa.
- Indian payments firm BharatPe's CEO Suhail Sameer is stepping down from his position to establish his own venture firm.
*This is sponsored content.
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- January 31 - Growth Summit 2023 (Register Here)
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 |  | Karan Chafekar is a Management Consultant, Business enthusiast, and Licensed Pilot. | | | | 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 and 1972 Fords. | |
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