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| Hey Insiders, Today we are taking a look at why Tiger Global is opening up its portfolio to secondary investors, the cybersecurity funding slump, and Accel's AI core focus. Scroll down for some quick hits, and hit reply to let us know what other content you'd like to see in future issues! Karan
p/karan-chafekar | |
| 1 | | Tiger Global has opened its entire portfolio to a select number of secondary investors, sources informed Pitchbook. The secondary investors will be able to bid on any portfolio company. The news comes after Tiger could not find a lead buyer for a strip sale of its portfolio assets. More: - In May, Tiger hired leading secondaries advisor Evercore to advise the firm on its secondary sale.
- The New York-based VC firm initially sought to dilute its holdings in 30 portfolio companies in the strip sale.
- Tiger's move suggests that the firm wants to sell some of its assets to generate liquidity as exit prospects through IPOs and M&As remain shut.
Zoom out: - Tiger invested in 315 companies in 2021.
- Notable portfolio startups include Chime, Databricks, Cohere, Revolut, and Nero.
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| 2 | | 
What the numbers say: In Q1 2023, cybersecurity startups secured $3.1B in VC funding, a more than 50% drop from the $6.4B recorded a year earlier. The number of deals went from 326 to 170 in the same period. 
Relevance: Within the cybersecurity sector, risk and compliance, data security, threat intelligence and security operations, and identity and access management domains saw significant investor interest, raking in 85 of the 170 deals. Investors are also eyeing cloud-related security startups, which are expected to be the strongest category for growth in 2023. Where to see the impact: International Data Corporation forecasts a 12% increase in global spending on security products and services this year. Global companies are poised to spend $219B by the end of 2023 due to the increased need for container deployments, remote access, and data protection compliance requirements. | | | |
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| 3 | | Applications and tooling & infrastructure startups in the AI sector are a core investment focus for VC firm Accel, said partner Daniel Levine. Applications can make users more productive while tooling and infrastructure products can help companies build tech products, Levine told Crunchbase. More: - Other targets include AI solutions that uncover bias or advance AI safety, Levine said, adding that the VC firm is unlikely to invest in chips and data centers.
- As a partner at Accel, Levine has led the firm's investments into Scale AI, Ada, EdgeDB, Gem, Mux, ReadMe, Sprig, and Vercel.
- The firm recently invested in the software development error monitoring tool Sentry and the visual workplace collaboration platform Whimsical.
- Last week, Accel led British generative video startup Synthesia's $90M Series C funding.
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| 4 | | European VC firm Brighteye closed its second fund at €100M ($109M). The firm plans to invest the capital in approximately 35 edtech startups. More: - 95% of the capital is earmarked for core investments into 25 to 30 startups.
- Individual ticket sizes at seed and Series A rounds will range between €1.5M ($1.6M) and €4M ($4.4M).
- The remaining 5% is set aside for making pre-seed investments alongside angel investors and VCs.
- In addition to investing in consumer-facing and B2B edtech startups, the firm will also back startups selling products and services directly to schools, universities, and governments.
- The European Investment Fund (EIF), Partners in Equity, and Jacobs Foundation contributed capital to the fund as limited partners.
Zoom out: - European edtech startups raked in $1.8B in VC funding in 2022, up 30% from 2021.
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| 5 | | VC firm Plug and Play Tech Center is looking to raise a $100M fund to invest in Saudi Arabian tech startups. The Silicon Valley-based firm is in talks with Saudi's $1B sovereign wealth fund Jada to join the fund as a limited partner. More: - Plug and Play Tech Center would contribute 10% of the fund's capital, with the remaining to be raised from Saudi investors and family offices.
- The firm has raised five funds to date and has over $500M worth of assets under management (AUM).
Zoom out: - News of Plug and Play Tech Center's new fund comes as Saudi Arabia strives to develop its startup and VC ecosystem as part of efforts to diversify its oil-dependent economy.
- Jada was a limited partner in Hambro Perk's $50M fund aimed at Middle Eastern startups.
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| 6 | | Today's Funding: Analytics - DTE, an Iceland-based startup developing analytics solutions for the metals industry, closed its Series A2 funding round with $10M funding provided by Novelis, Metaplanet, the European Innovation Council (EIC) fund, Chrysalix Venture Capital, and Brunnur Ventures.
Data - Insight Partners led a €10M ($10.9M) Series A round into SPARETECH, a German startup that has developed a data platform for industrial spare parts.
Defense - Defense tech startup Mach Industries nabbed a $5.7M seed funding led by Sequoia Capital.
Energy - Canadian geothermal technology company Eavor Technologies held the first close of its Series B funding round at €34M ($37.15M). OMV AG led the funding round with additional support from existing backers BP Ventures, Eversource Energy, and Vickers Venture Partners.
- Solar energy assets financier Yellow secured $14M in Series B funding led by Convergence Partners. Energy Entrepreneurs Growth Fund and Platform Investment Partners participated in the funding round.
Healthcare - Portable tube feeding system developer Luminoah raised $6M in Series A funding led by Path Capital with participation from Sands Capital, CAV Angels, Virginia Venture Partners, and 757 Angels.
Media - AI-powered music streaming platform WAVs AI raised $20M through a strategic investment from Regal Investments.
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- Seedstars Capital partnered with Fondation Botnar to launch a $20M fund dubbed Seedstars Youth Wellbeing Ventures. The fund aims to invest in early-stage African startups.
- Chinese early-stage VC firm China Growth Capital is targeting a $140M (1B yuan) final close for its sixth RMB-denominated fund.
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 | Analyst | | Karan Chafekar is a Management Consultant, Business enthusiast, and Licensed Pilot. | | This newsletter was edited by Eduardo Garcia | |
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