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| Here's a look at today's VC briefing. - Construction tech sector startups have raised $30B since 2014
- Corporate crypto investors pull back more sharply than VCs
- Material Impact to back deep tech startups with new $352M fund
Thank you. Karan
p/karan-chafekar | |
| 1 | | Venture capitalists have invested $30B in the construction technology sector since 2014, according to Tracxn data reviewed by Foundamental. Since 2014, 17 construction technology startups have achieved unicorn status. More: - The sector set the record for the highest annual funding in 2021, ending the year with $8.7B.
- Foundamental's general partner Patric Hellerman said, "Construction tech actually outperforms, as an asset class, the entire venture market."
- He added, "So it's not driven by a general 'rising tides lifts all boats' logic. In fact, construction tech goes anti-cyclical to where the total venture market is."
Zoom out: - Construction tech funding has remained stable despite a global drop in venture funding.
- Global funding dropped 15% from $86B in Q3 2022 to $73B in Q3 2023.
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| 2 | | Corporate crypto investors have reduced their crypto startup investments more sharply than VC firms, per Pitchbook. 
What the numbers say: VCs invested $2B in the crypto sector in Q3 2023, down 63% compared to the same time last year. What happened: Coinbase's venture arm, Coinbase Ventures, is primarily investing in crypto startups outside the U.S. due to regulatory scrutiny in the nation. Coinbase has only made 55 investments in the 12 months. In comparison, the firm backed 65 startups in a single quarter in Q1 2022. Crypto exchange Kraken's VC division, Kraken Ventures, is reevaluating its investment strategy. Managing partner Brandon Gath added that the firm intends to continue its previous pace in Q3. Gath said, "Over the last two years, we typically do about three to four new deals a quarter and deploy about $3M in capital." He added that later-stage crypto and technology startups have seen valuation drops of 30% to 50%. | | | |
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| 3 | | Dutch investment firm Gilde Healthcare secured $740M ($803.1M) in capital commitments toward its sixth venture and growth fund. The firm will invest in digital healthcare, medical technology, and therapeutics startups across North America and Europe. More: - Gilde closed the fund at its hard cap after holding at an initial close at €600M ($650.8M) earlier this April.
- Individual investments will range between €10M ($10.85M) and €70M ($75.92M).
- Gilde has raised funds worth €1.7B ($1.84B) in the last three years alone.
- Notable portfolio companies include Irish heart failure patient monitoring startup Fire1, in-vitro diagnostic tests startup Mtm Laboratories, and tissue sealant maker ProFibrix.
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| 4 | | VC firm Material Impact has raised a $352M fund to invest in deep tech startups. Fund III will back startups that are building solutions to deal with the "consequences of extreme weather, supply chain vulnerabilities, increased demand on our energy and transportation infrastructure, or the globe's shrinking clean water supply," according to the firm. More: - Material Impact's current portfolio consists of 30 startups across AI, robotics, transportation, manufacturing, biomanufacturing, and healthcare sectors.
- The firm started fundraising for the new fund in the first quarter of 2022.
- Co-founder and managing partner Adam Sharkawy said that fundraising took less time than previous funds despite the challenging fundraising environment.
- Material Impact debuted with a $110M fund in 2018 and followed it up with a $200M second fund in 2020.
Zoom out: - Funding for deep tech startups has increased by 26% QoQ in Q3 2023, per Pitchbook.
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| 5 | | Newly formed VC firm Avra is looking to raise a $350M fund. In addition to the fund, the firm also launched an eight-week program to help nearly a dozen post-Series A startups gear up for growth. The program is only open to startups with a strong product market fit and generating at least a few million dollars in revenue. More: - The firm recently completed the first cohort of its program, which included startups such as Runway, Supabase, Roboflow, and Hex Technologies.
- The firm was founded by former YC Continuity head Anu Hariharan, another two former YC executives, and former Brex executive Lucas Fox.
- Hariharan came up with the idea for Avra two months after YC shut down the Continuity Fund.
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| 6 | | Today's Funding: AI - SiLC Technology, a startup developing advanced machine vision for AI applications, raised $25M in additional funding. Hokuyo Automatic, Hankook, and ROHM Semiconductor backed the funding round.
Biotech - Clinical-stage biotech firm NMD Pharma secured €75M ($82.3M) Series B funding led by Jeito Capital. Novo Holdings, Lundbeckfonden BioCapital, INKEF Capital, and the Roche Venture Fund participated in the round.
- TCR therapeutics biotech firm T-Therapeutics bagged $48M in Series A funding. Sofinnova Partners, F-Prime Capital, Digitalis Ventures, and Cambridge Innovation Capital led the funding round.
Blockchain - CoinFund and Distributed Global led a $14M Series A round into blockchain-based asset management firm Superstate.
Data - Automated data governance and data security solutions startup ALTR Solutions closed its Series C financing at $25M. John Stafford III led the funding round.
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| 7 | | Quick Hits: - The Kubernetes Cookbook is your comprehensive companion, equipping you with the knowledge and techniques to harness the full potential of Kubernetes.*
- Female Founders Fund is reportedly looking to raise $75M capital for its fourth fund, per SEC filings seen by TechCrunch.
- Indonesia's VC funding is set to decline by 70% to 80% in 2023, per a new report by AC Ventures and Bain & Company.
- Healthcare and enterprise technology-focused early-stage VC firm .406 Ventures hired Trip Hofer as a venture partner.
- Singaporean VC firm Antler appointed Shao-Ning Huang and Lorenzo Peracchione as venture partners. In addition, it hired Tudor Coman as investment director.
- Medina Ventures is launching a new fund to back startups in Latin America and the U.S.
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 | Analyst | | Karan Chafekar is a Management Consultant, Business enthusiast, and Licensed Pilot. | | This newsletter was edited by Aaron Crutchfield | |
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