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| Here's a look at today's VC briefing. - 👩🏻 Women-led VC funds bagged a larger share of total capital in 2023.
- 🇪🇺 European VC firms continue to demand favorable terms in funding rounds.
- 💰 Team8's new funds pushed its asset under management over the $1B mark.
Thank you. Karan
p/karan-chafekar | |
| 1 | | Women-led funds bagged 3% of the total $107B VC funds raised globally in 2023, per new research published by Venture Capital Journal. The share of capital raised by women-led VC funds increased from less than 2% in 2022. Despite the increase, women-led funds still receive a small fraction of the total capital. More: - The rise in capital available for women-led VC funds will help increase funding for women-led startups.
- "When women invest in women, they also bring to the table more than just capital; they're introducing the social network that is needed to be successful," said Dr. Elizabeth Clayborne, the founder of NasaClip, which raised $3.25M over the last four years, mostly from women investors.
- Clayborne believes that the startup would have never left the ground had she not received the support early on from female investors.
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| 2 | | European startups raised about $60B in VC funding in 2023, per global law firm Orrick. 
What the numbers say: AI sector startups raked in a 17% share of the total funding. Despite their rising popularity, the AI sector was beaten by climate tech, which emerged as the most popular investment sector in Europe. There was a large slump in later-stage financing as founders opted for alternative forms of financing or restructured their companies for profitability. Early-stage deal value witnessed a 40% slump. What happened: Due to prevailing market conditions, VC deal terms continued to remain favorable for investors, and they were able to exercise greater control over investments. 23% of the funding rounds involved convertible financings, such as convertible debt, SAFEs, and ASAs. Investors asked the founders to stand behind warranties in 39% of venture deals. Relevance: VCs are under pressure in the U.K., forcing them to turn towards secondaries and push for more M&A activity in portfolio startups. In Germany, investors expect M&A activity to surge as LPs are pushing for liquidity. | | | |
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| 3 | | Israeli venture firm Team8 secured $500M from investors for a trio of new funds. $235M of the capital is earmarked for its second VC fund, $110M for its third venture creation enterprise fund, and $70M for a new digital health fund. The remaining $85M has been set aside for follow-on rounds into portfolio startups. More: - Team8 will use the new funds to back about 30 cybersecurity, data infrastructure, fintech, digital health, and AI startups.
- Two of the funds will invest in seed-stage startups while one will invest in Series A rounds.
- The firm typically invests $5M to $10M in startups.
- The new funds pushed the firm's total assets under management over the $1B mark.
- Team8 has created 20 companies and invested in another 21 over the past decade.
- It has successfully exited eight investments, including Dig Security and Talon, which Palo Alto Networks acquired last year for a combined value of about $1B.
- The firm has already backed two cyber and two digital health startups with the new funds.
- The new funds received backing from Microsoft, Walmart, Cisco Systems, Moody's, and Temasek.
Zoom out: - VC firms catering to Israeli tech startups have raised funds worth about $1B since early October 2023.
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| 4 | | Asian Development Bank's tech investment arm ADB Ventures plans to raise a $200M fund. The ADB Ventures Investment Fund 1A will invest in climate-focused startups in Asia. The fund is anchored by the Ministry of Foreign Affairs of Finland with a €20M ($21.7M) commitment. More: - The new fund is a follow-on to ADB Ventures Investment Fund 1, which closed at $60M in 2020.
- ADB's latest fund will invest in pre-Series A and Series A startups, working on "climate-tech solutions disrupting traditional industries, greening regional supply chains, and supporting climate adaptation and resilience."
- Due to its partnership with the Finnish government, the firm might also invest in Finnish startups, accelerating Asia's transition to clean energy.
- Other limited partners that backed the fund include the Nordic Development Fund, the Clean Technology Fund, and the Ministry of Economy and Finance Korea.
- Since the start of this year, the firm has backed green brick manufacturer InnoCSR, electric-mobility-as-a-service provider Electrifi, agritech firm Chickin, and fintech startup Revfin.
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| 5 | | Silas Capital closed its oversubscribed second fund at the hard cap of $150M. The Silos Capital Partners II will invest in next-generation consumer brands, including personal care, beauty products, fashion, and wellness. More: - Initial check sizes will typically range from $3M to $15M for high-growth consumer brands, generating between $5M and $50M in revenue.
- 10% of the capital will be allocated to seed and early-stage startups through the firm's early-stage venture platform, Silas Ventures, writing checks averaging $500,000.
- Notable portfolio companies include Makeup by Mario, Vacation Sunscreen, Hello Cake, Sakara Life, Bellroy, HATCH, Herbivore Botanicals, and Wonder Belly.
- The company has successfully exited its investments in ILIA Beauty, acquired by Famille C; Boll & Branch, bought by L Catterton; and Lord Jones, acquired by Cronos.
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| 6 | | Today's Funding: AI - RapidSOS, a startup building AI-powered platform for emergency response teams, closed its Series C funding round at $150M, with an additional $75M funding from BlackRock.
Biotech - Nalu Medical, a biotech startup developing minimally invasive solutions for chronic neuropathic pain, extended its Series E funding round by $20M, bringing the total raised under the round to $85M. The additional funding came from B Capital.
Cybersecurity - Cybersecurity infrastructure startup Axonious doubled its Series E round with another $200M funding co-led by Lightspeed and Accel. The firm's valuation remained flat at $2.6B, the same as the initial Series E round.
Fintech - British challenger bank Monzo raised a late-stage funding round of $430M (£340M) led by Alphabet's growth fund Capital G. GV, HongShan Capital, Passion Capital, and Tencent participated in the round. Monzo received a post-money valuation of $5B (£4B) at the round.
Energy - Geothermal energy startup Fervo Energy bagged $244M in fresh capital led by oil and gas company Devon Energy. Investors participating in the round include Galvanize Climate Solutions, Liberty Mutual Investments, Mercuria, Mitsubishi Heavy Industries, Congruent Ventures, and DCVC.
Healthcare - Overjet, a startup developing an AI platform that helps diagnose disease from scans, secured $53.2M in Series C capital. March Capital led the round, joined by General Catalyst Partners, Insight Partners, E14 Fund, and the American Dental Association. The firm was valued at $55M.
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- U.S.-based VC firms that invested in Chinese e-commerce retailers are under scrutiny from the U.S. House of Representatives Select Committee.
- Boston-based VC firm Underscore VC promoted Lily Lyman from the partner to the managing partner role.
- OpenView Venture Partners plans to return 75% of the $571M capital raised for its latest fund back to limited partners. It will use the remaining capital to double down on existing 30 portfolio startups.
- Benchmark's general partner, Miles Grimshaw, is returning to Joshua Kushner's VC firm Thrive Capital as a general partner.
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 | Analyst | | Karan Chafekar is a Management Consultant, Business enthusiast, and Licensed Pilot. | | This newsletter was edited by Vibha Chapparike | |
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