| |
| Hey Insiders, Today we are taking a look at the impact of the VC funding slump on U.S. startup exit values, the crypto sector, and Indian startups. We have also rounded up the top late-stage funding rounds for global startups from this week. Scroll down for some quick hits, and then let us know what other content you'd like to see in future issues. Karan
p/karan-chafekar | |
| 1 | | U.S. startups generated $12B in value from 471 exits through M&A and IPO transactions in the first half of the year. Pitchbook estimates that exit values will likely only reach $20B by this year's end at the current rate. The year-end estimates point to a 97% decline over 2021's record high of $777B. More: - 2023 will likely record the lowest exit value in the past 15 years.
- In 2022, U.S. startups recorded $75B in exits, 90% lower than the preceding year.
- Many startups, including Turo, Sagiment Biosciences, Reddit, Instagram, and Stripe, shelved their respective IPO plans after the market conditions deteriorated in the past 18 months.
- Companies are waiting for the interest rates to cool down and geopolitical conditions to stabilize, which may indicate an improvement in investor appetite for IPOs.
|     | |
| 2 | | 
VCs deployed $1.3B in late-stage and beyond global startups this week between July 1 to July 7, per Crunchbase data. Energy storage startups raked in 46% of the funding this week. Wellness, agtech, and biotech startups nabbed 17%, 15%, and 11% of the financing, respectively. Here are the top five largest rounds announced this week: - Chinese energy storage products manufacturer Hithium Energy Storage Technologies Co. raised $620M (4.5B yuan) in Series C funding from the investment arm of China Life Insurance and Beijing Financial Street Capital.
- German smart workout equipment maker EGYM raised €207M ($225M) in Series F funding led by Jared Kushner's investment firm Affinity Partners.
- Indonesian aquaculture startup eFishery cemented its unicorn status with a $200M Series D funding round led by Abu Dhabi-based 42XFund, with participation from Kumpulan Wang Persaraan, 500 Global, Temasek, Northstar, and SoftBank.
- Chinese biotech startup Sinotau International Pharmaceutical Technology raised $151.8M (1.1B yuan) in fresh funding.
- CADDi, a Japanese startup that operates a B2B marketplace for the manufacturing industry, raked in $89M in Series C funding from Globis Capital Partners, DCM Ventures, JAFCO, Mitsubishi UFJ Capital, and others.
| | | |
| A message from our sponsor, Salesforce. |  | | Get fresh insights from 7,700+ sales professionals In today’s economy, productivity is the name of the game. In this report, you’ll hear from 7,700+ sales pros about how they keep their reps focused on selling and closing deals in a whole new way with AI. According to our latest research: - 97% of sales pros say AI has improved use of rep time
- 94% of sales orgs plan to consolidate their tech stack in the next 12 months
- 90% of sales reps from top orgs say their company enables them to act as a trusted advisor
Read the report | |
|
| 3 | | 
What the numbers say: VC deployed $2.34B into crypto startups across 382 deals in Q2 2023, per Pitchbook. The total for the recent quarter represents an 80% drop over the record high of $12.14B set in Q1 2022. Relevance: LayerZero's $120M Series B funding round and Worldcoin's $115M Series C round were the two largest funding rounds that closed in Q2 2023. What happened: The sector was already facing the effects of the venture funding pullback. However, the situation worsened due to regulatory headwinds in the U.S. and the bankruptcies of notable crypto startups. As a result, valuations of crypto startups dropped 70% YoY in Q1 2023. Why it matters: Despite the decline, some investors remain optimistic about the sector's potential in the long run. Gvantsa Chkuaseli, the head of structuring and fundraising at Outlier Ventures, believes that despite the recent downturn, there has been an uptick in activity in early-stage firms. | | | |
| 4 | | Indian startups secured $5.5B in VC funding in H1 2023, a 72% YoY drop from the $19.7B deployed in the same period last year, per data from Tracxn reviewed by Financial Express. Funding dropped 24% over the preceding six-month period's total of $7.3B. Despite the drop, India nabbed the third spot in the region with the highest VC funding in H1 2023, trailing behind the U.S. and the U.K. More: - Early-stage startups nabbed $1.4B of the total funding, a 44% decline over H2 2022.
- Startups in the environment tech, fintech, and retail sectors nabbed most of the funding.
- No new unicorns were minted in H1 2023.
- Comparatively, 19 Indian startups reached unicorn status in the same period last year.
- 74 acquisition deals were completed during the period, down 52% YoY.
- Notable acquisitions that closed in H1 2023 include Square Capital's $100M acquisition of energy management solutions startup Gram Power and Genee's $70M acquisition of advertisement optimization firm Adpushup.
| | | |
| A message from our sponsor, Klue. |  | | Competitors are killing your efficiency We spoke with over 300 sales leaders to understand how they’re navigating difficult market conditions. One of the most interesting pieces of data: 91% said that their deals were more competitive than last year. Deals and renewals are heating up. There are more people chasing less pie. That’s a major obstacle to what leaders also said were their top three priorities: - Hitting revenue targets
- Retaining customers
- Improving sales performance
If your business isn’t preparing to compete effectively today, your revenue numbers are going to look grim at your next board meeting. Read and listen to how these leaders are navigating a tough, competitive market to hit their targets in our latest report When the Pie Shrinks. Read the Report | |
|
| 5 | | Public Ventures launched a $100M impact fund aimed at "improving health equity and supporting climate preparedness for underserved communities." The fund will back early-stage life science and cleantech startups. More: - While the fund is domiciled in the U.S., it will primarily back Canadian startups.
- Founding partner Zoey Dash McKenzie cites the Canadian startup's challenges with scaling innovation despite having "some of the best hospitals and universities in the world" as the reason for the narrowed focus on startups in the region.
- Dash McKenzie said that the fund will have a "waterfall structuring, [to] make assessments on a deal-by-deal basis and then return funds back to our LPs earlier on."
| | | |
| 6 | | Today's Funding: Biofuel - Bp Ventures led a $10M Series B funding into Los Angeles-based biofuels startup WasteFuel.
Fintech - British fintech banking startup Tandem Bank raised £20M ($25.5M) in fresh funding from Quilam Capital.
- Swiss accounting automation fintech startup Numarics banked €10.2 ($11.1M) seed funding round co-led by UBS and FiveT Fintech, with additional backing from Wingman Ventures and Seed X.
Insurtech - D2C insurance provider Steadily Insurance Agency raised $28.5M in Series B funding led by Zigg Capital, with participation from Matrix Partners, Koch Ventures, Clocktower Technology Ventures, and Nine Four Ventures.
IoT - Singaporean multi-sensing IoT platform maker Name closed its Series A round at $10.5M. Verizon Ventures, Amavi Capital, INSPiRE, and Aconterra contributed the capital.
Social media - Decentralized social network platform Bluesky — a direct competitor to Twitter — raised $8M in seed funding led by Neo.
Transportation - Battery Smart, an Indian electric battery swapping service startup, raised $33M in pre-Series B funding from Tiger Global, Blume Ventures, British International Investment, and The Ecosystem Integrity Fund.
- Dutch hyperloop network technology platform startup Hardt Hyperloop nabbed €12M ($13M) in fresh funding from the European Innovation Council (EIC), InnovationQuarter, and Investment Fund Groningen.
- German EV charging startup ChargeX secured €11.5M ($12.5M) in Series B funding led by UVC Partners. Bayern Kapital, Ponooc, Verve Ventures, Smart Energy Innovations Fund, and BonVenture participated in the round.
| | | |
| 7 | | Quick Hits: - Formulated by Ph.D. doctors and scientists from Johns Hopkins, Harvard, Berkeley, and Stanford, this probiotic naturally replenishes your gut microbiome. Get 20% off the first month with code INSIDE20.*
- Cloud hosting firm DigitalOcean acquired New York-based cloud computing and AI development startup Paperspace for $111M.
- California Sen. Steve Padilla (D-San Diego) requested the state's Labor and Workforce Development Agency to investigate HR startup Deel for reportedly classifying employees as independent contractors to avoid giving them employment benefits and labor protections.
- Arcven Capital is planning to raise €80M ($87.2M) for its debut secondary fund. The firm intends to take up stakes in seed and growth-stage startups in the EMEA region.
- Hong Kong-based insurtech startup OneDegreeGroup secured an undisclosed venture debt facility from HSBC's New Economy Fund.
- A few months from now, you could be celebrating your new hair. Get 60% off with code FIREWORKS60 from now until July 7th!*
*This is sponsored content. | | | |
| Upcoming Events | | JUL
12 | | Monthly Meditation guided by Nicholas Whitaker | | | | | | | JUL
13 | | #ThankfulThursdays Wellness Community Challenge | | | | | | | OCT
16 | | Meet Our Fund 5, Building and Investing in AI | | | | | | * This is a sponsored event | | | |
Term of the Day Digital agency: A digital agency provides specialized services for businesses in digital marketing and advertising, with expertise in areas such as web design. Question of the Week What's your stance on employees discussing their salaries with each other? Join the conversation |
INSIDE VENTURE CAPITAL LEADERBOARD (30 DAYS) |
 | Analyst | | Karan Chafekar is a Management Consultant, Business enthusiast, and Licensed Pilot. | | This newsletter was edited by Aaron Crutchfield | |
| |
 | Discover the latest insights driving productivity and efficiency from Salesforce. | |
|
| |
|
| |
Comments
Post a Comment