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| Hi, Insiders — happy Friday! Here is the VC update: - French VC firm acquired an equity crowdfunding startup.
- General Catalyst expanded into Europe.
- Congress reached out to Sequoia Capital regarding its investments in China.
If you find this newsletter useful, please share it with your friends and colleagues. Thank you. Robel
p/Robel-Kelkile | |
| 1 | | French VC firm Founders Future has acquired Sowefund, an equity crowdfunding platform. The move comes as the firm aims to cater to the growing demand for hands-on investment. More: - Founders Future will maintain separate operations for its VC funds and the crowdfunding platform, focusing on co-investment with professionals.
- Sowefund's co-founders will continue to lead the platform, while Founders Future noted they plan to invest significantly in expanding Sowefund's team.
- The acquisition aligns with the growing interest in equity crowdfunding and offers startups an alternative way to extend their runways amid a slowdown in traditional VC investments.
- Sowefund aims to become the go-to platform for co-investment with professionals and may explore offering investment opportunities in funds, such as VC and impact funds, in the future.
Q: Do you believe it's a wise move for venture capitalists to enter the equity crowdfunding arena, and do you see these two areas converging, or is this more of a niche occurrence? Join the conversation here. |     | |
| 2 | | PitchBook reported that all-women founding teams have secured 1.9% of venture capital dollars this year. That totaled $2.4B out of the $125.85B allocated through Q3. More: - This percentage is slightly lower than last year's figures, where all-women founding teams raised $4.1B out of $204.8B through Q3, accounting for around 2% of total capital.
- The consistent 1.9% allocation to all-women founding teams in recent years suggests no disproportionately large investments in such teams, hindering significant progress in this data point.
- Female-founded companies with at least one female founder raised $9.9B in funding in Q3, down from an all-time of $17.5B in Q1.
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| 3 | | A congressional committee has requested more details on Sequoia Capital's investments in China. The congressional letter sent to Sequoia characterized the split as "a positive move" yet included additional concerns. More: - Sequoia Capital recently announced its split into three entities: Sequoia Capital in the U.S. and Europe, Peak XV Partners in India and Southeast Asia, and HongShan in China (formerly Sequoia Capital China), in anticipation of legal requirements to divest from specific lines of business in China.
- The Select Committee on the Chinese Communist Party has raised concerns about whether this split will effectively prevent U.S. dollars from supporting Chinese efforts in quantum computing, semiconductors, AI, and other critical tech sectors.
- The committee has requested clarification on the role of U.S.-based limited partners in Sequoia Capital China.
- This scrutiny raises questions about the viability of global VC firms' strategies for navigating the tensions between the U.S. and China in the tech industry.
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| 4 | | General Catalyst announced its expansion in Europe. The investment firm will merge with Berlin-based La Famiglia. More: - General Catalyst, a U.S. venture capital firm, is merging with La Famiglia, a Berlin-based firm, to strengthen its presence in the European tech investment landscape.
- The deal, set to close in early 2024, is facilitated by La Famiglia's expertise in seed-stage investing, offering on-the-ground knowledge of entrepreneurs and markets.
- La Famiglia has raised over €250M to invest in early-stage start-ups, backed by investors including Swarovski, Adidas, and Skype co-founder Niklas Zennström.
- General Catalyst has $25B in assets under management, compared to La Famiglia's approximately $360M, and it has been investing in Europe for over a decade.
- Despite recent tech investment challenges in Europe, the region continues to attract Silicon Valley investors, with U.S. investors pouring €51B into European venture deals in 2021.
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| 5 | | KKR closed its KKR Next Generation Technology Growth Fund III with $3B in capital commitments. The round included $400M from KKR employees. More: - The fund focuses on growth-stage companies in North America, Europe, Israel, and the APAC region, targeting businesses with strong long-term growth prospects and generating substantial revenue.
- KKR's tech growth group predominantly engages in minority transactions but also invests in majority ownership positions, typically offering $50 to $250M per investment.
- The fund mainly invests in software companies, with a significant emphasis on cybersecurity and other areas falling under the "internet" category.
- KKR's previous tech investments include companies like Darktrace, ForgeRock, Lyft, Optimal+, GetYourGuide, and Jitterbit.
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| 6 | | European VC firm Breega has launched a €150M ($158.9M) Europe Seed III fund. The fund aims to boost tech investments and support early-stage startups. More: - Breega manages a range of funds from pre-seed to Series B, with a tenfold increase in resources over eight years.
- The fund will invest in approximately thirty tech startups, building on its history of supporting disruptive innovation.
- Breega's "Scaling Squad" of HR, sales, and marketing experts contributes to a 70 percent success rate in moving startups past the Seed stage, well above the 35 percent market average.
- About one-third of the Europe Seed III fund will be dedicated to investments in the U.K., where Breega already has backed 13 startups.
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INSIDE VENTURE CAPITAL LEADERBOARD (7 DAYS) |
 | Writer | | Born and raised in the Bay Area, Robel Kelkile is passionate about all things tech, venture, and financial education. He has previously served both universities and state governments in their engagement strategy and tracking legislation. | | This newsletter was edited by Aaron Crutchfield | |
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