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The official channel of V3V Ventures. We share updates on our investments, portfolio companies, and fund activities.

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🗣️ Early-Stage Unicorn Minting Accelerates in 2024, Led by AI Startups

➡️ The venture capital landscape is witnessing a resurgence in early-stage startups achieving unicorn status, with 28 companies valued at $1 billion or more after seed, Series A, or Series B funding rounds through July 2024. This trend, while not matching the peak years of 2021 and 2022, signals a renewed willingness among investors to bet big on young companies, particularly in the AI sector.

➡️ AI startups are leading this wave, with notable examples including Elon Musk's xAI raising $6 billion at a $24 billion valuation, and Cognition securing $175 million at a $2 billion valuation. Surprisingly, even sectors like Web3 are seeing early-stage unicorns emerge, challenging the narrative of a sector-wide downturn.

➡️ This trend raises questions about the sustainability of high valuations for early-stage companies and whether it reflects a genuine belief in their potential or a return to the fear-of-missing-out mentality that characterized the funding frenzy of recent years. While the pace of early-stage unicorn creation slowed in the second quarter of 2024, the overall increase compared to 2023 suggests a shifting landscape in venture capital risk assessment and valuation practices.

The resurgence of early-stage unicorns, particularly in AI, indicates a complex venture capital environment where high-risk, high-reward investments are back in favor. This trend could signal renewed optimism in certain tech sectors, but also raises concerns about potential overvaluation and the long-term sustainability of these billion-dollar valuations for young companies.


🟩 As the year progresses, it will be crucial to monitor whether this trend continues or if more cautious valuation practices prevail.

🔗 Source #VentureHighlight

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🟢 Anduril Industries: A $14B Titan in Defense Tech

➡️ Venture capitalists are setting their sights on the defense tech sector, with Anduril Industries leading the charge. The California-based startup has secured a staggering $1.5 billion in Series F funding, propelling its valuation to $14 billion — a 69% increase from its previous round. This investment, co-led by Founders Fund and Sands Capital, with participation from new and existing investors, marks a significant milestone in defense tech funding.

➡️ Anduril plans to utilize the funds for developing Arsenal-1, a massive production facility aimed at manufacturing autonomous military systems at scale. This round, coupled with recent investments in companies like Helsing, signals a growing interest in defense technology among venture capitalists. The sector has already raised $2.5 billion this year, surpassing last year's total of $2 billion.

As geopolitical tensions rise, the defense tech industry is experiencing unprecedented growth and investment. This trend presents exciting opportunities for startups and investors alike in the evolving landscape of military technology.


🔗 Source #VentureNews

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🌐 Tech Sector: The Powerhouse Driving US Market Growth

➡️ The latest data reveals a compelling story of US innovation and technological prowess. Over the past 8 years, the tech sector of the S&P 500 has consistently outperformed the broader benchmark index, showcasing the strength and resilience of American tech companies.

➡️ According to the chart, the S&P 500 Information Technology sector has achieved impressive 5-year annualized returns of 25.9%, significantly surpassing the overall S&P 500's 13.2%. This remarkable performance predates the recent AI boom, highlighting the sector's fundamental strength.

➡️ The visual representation clearly illustrates the widening gap between tech stocks and the broader market, with the tech sector's growth trajectory far outpacing that of the S&P 500, especially since early 2023.

As Phil Rosen aptly puts it, "Hard to bet against US innovation". For investors and market watchers, this trend underscores the continued importance of the tech sector in driving overall market growth and presents a compelling case for its potential future performance.


🔗 Source #VentureStats

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🟢 HighPost Capital Launches HIPstr: A $100M VC Fund with Star Power

➡️ Venture capitalists, take note: HighPost Capital, led by Mark Bezos (Jeff Bezos' younger brother) and PE veteran David Moross, has entered the VC arena with their new fund, HIPstr. This $100 million debut fund aims to capitalize on the recent downturn in startup valuations, focusing on early-stage consumer companies.

➡️ HIPstr has already made its mark by investing in six startups, including Wild Common, a liquor company founded by celebrity entrepreneur Kylie Jenner, and After.com, a cremation services provider that recently secured a $10 million Series A round. This strategic move by HighPost Capital showcases their intent to leverage their expertise in consumer markets and their high-profile connections to identify promising investment opportunities.

The launch of HIPstr signals a growing trend of private equity firms diversifying into venture capital, potentially bringing fresh perspectives and resources to the startup ecosystem. For entrepreneurs, this new fund represents an exciting opportunity to secure backing from a team with deep industry knowledge and influential networks.


🔗 Source #VentureNews

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🗣️ The Acquisition Sweet Spot: Series A Startups in High Demand

➡️ Peter Walker's analysis of over 1,700 U.S. startup acquisitions reveals fascinating trends in the M&A landscape. Surprisingly, over 30% of startup acquisitions occur during the Series A stage, making it the prime time for startups to be acquired.

➡️ This trend is driven by strategic alignment between acquirers and startups, as well as the readiness of Series A companies for rapid growth. Most industries see the majority of acquisitions before Series B, though sectors like Biotech tend to have later median acquisition stages.

➡️ Interestingly, Consumer, Hardware, and Energy sectors often acquire pre-seed companies, while Hardware shows a unique pattern of very early or late acquisitions. In 2023, 38% of acquired startups had 10 or fewer employees, highlighting the appeal of small, agile teams.

As venture funding becomes more challenging, a new trend is emerging — startups acquiring other startups. In 2023, 99 U.S. startups were acquired by their peers, suggesting that talent and asset acquisition at competitive prices is becoming an attractive strategy in the evolving startup ecosystem.


🔗 Source #VentureHighlight

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🟢 WeRide's IPO: A Beacon of Hope in a Sluggish Market?

➡️ WeRide, the Chinese autonomous driving startup, is set to make waves in the tech IPO market with its upcoming Nasdaq debut. In a landscape where tech IPOs have been notably scarce, WeRide's offering is drawing significant attention from investors and industry watchers alike.

➡️ The Guangzhou-based company aims to raise $120 million, potentially valuing it at up to $5 billion. While WeRide's financials show a familiar startup story of high growth coupled with losses, its real appeal lies in its innovative technology and market position. As the "first autonomous driving company in the world with products operating and testing in 30 cities across seven countries," WeRide is betting on investor enthusiasm for its growth prospects in the burgeoning autonomous vehicle sector.

➡️ This IPO comes amid renewed interest in autonomous driving technologies, with the sector raising over $3.5 billion in the first half of 2024. However, the mixed performance of previously public autonomous driving companies serves as a cautionary tale.

WeRide's IPO could be a crucial litmus test for the tech IPO market. A successful debut might reignite investor interest in tech offerings, potentially paving the way for more companies to go public. However, the company's performance post-IPO will be closely watched as an indicator of public market appetite for innovative yet unprofitable tech ventures.


🔗 Source #VentureNews

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🌐 Top VCs Ramp Up Early-Stage Investments: A Signal of Market Recovery?

➡️ The first half of 2024 has brought a wave of renewed optimism in the venture capital world, with leading US investors significantly increasing their Series A and B investments globally. Andreessen Horowitz, General Catalyst, and Khosla Ventures have emerged as the frontrunners, each making seven or more early-stage investments during this period.

➡️ This uptick in activity is particularly noteworthy as it represents an increase from the previous year for most of these active investors. Khosla Ventures, in particular, has shown a dramatic acceleration in its investment pace, especially in Series B rounds.

➡️ The focus of these investments reveals clear industry preferences. AI-related companies accounted for 40% of the deals, while healthcare and biotech startups represented about 25%. This concentration suggests where top VCs see the most promising opportunities for growth and innovation.

➡️ In terms of investment amounts, life sciences-focused Arch Venture Partners led the pack, deploying a staggering $1.9 billion in rounds it led or co-led. This includes a $1 billion funding round for AI drug discovery company Xiara Therapeutics, highlighting the intersection of AI and healthcare that's attracting significant capital.

This surge in early-stage funding from prominent VCs could be a harbinger of a broader market recovery. For startups, particularly those in AI and healthcare sectors, this trend signals a potentially more favorable funding environment. As we move into the latter half of 2024, all eyes will be on whether this increased activity translates into a sustained upturn in the venture capital ecosystem.


🔗 Source #VentureStats

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🗣️ The New M&A Playbook: Tech Giants Embrace 'Not Buying' Startups

➡️ In a fascinating twist to the traditional M&A landscape, major tech corporations are adopting a novel approach to acquiring startup talent and technology. This trend of "not buying" startups, but rather licensing their technology and absorbing their teams, is gaining traction as a workaround to regulatory hurdles that have derailed high-profile acquisitions in recent years.

Key examples of this strategy include:

Google's $3 billion deal with Character AI
Amazon's $430 million arrangement with Adept
Microsoft's $650 million technology license from Inflection

➡️ These deals allow corporations to access cutting-edge technology and talent without the regulatory scrutiny of a full acquisition. While this approach isn't entirely new — acquihiring has been a strategy for smaller startups — the scale and structure of these recent deals mark a significant shift in the industry.

This innovative deal structure could reshape the tech M&A landscape, offering a path for startups to monetize their innovations and for tech giants to stay competitive. However, as regulators catch up, the longevity of this trend remains uncertain. For now, it presents an intriguing option for both buyers and sellers in the fast-paced world of tech innovation.


🔗 Source #VentureHighlight

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🌐 Venture Capital Under Strain: A Growing Crisis in 2021 Vintage Funds

➡️ Recent data highlights a significant downturn in the venture capital (VC) industry, raising concerns globally. The most striking indicator is the Distributed to Paid-In Capital (DPI) for funds created in 2021, with a mere 9% returning capital to investors after three years, starkly lower than the pre-pandemic average of around 20%. This decline underscores a broader challenge for the VC sector.

➡️ While the crisis is somewhat mitigated by a reduced deployment of capital— 43% compared to the usual ~50% — the overall impact remains troubling. Venture capitalists must navigate this challenging environment with heightened caution.

The current VC landscape demands a strategic reassessment as the industry faces unprecedented hurdles. Adjustments in capital deployment and investor expectations may be crucial for survival and future success.


#VentureStats

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🗣️ Startups Struggle with Extended Series B Funding Wait Times Amidst a Tough Market

➡️ In 2024, startups are facing the longest delays in over a decade to secure Series B funding, with a median wait time of 28 months between Series A and B rounds. The average wait has also hit a high of 31 months, illustrating a challenging landscape for venture-backed companies. While some AI startups, like Elon Musk's xAI, have quickly raised successive rounds, the majority are grappling with extended fundraising timelines. This reflects a broader trend where fewer early-stage companies are advancing to Series B.

➡️ The delay is particularly concerning for startups from the 2020-2021 boom years, as they face diminishing odds of securing additional funding. Out of over 4,400 U.S. companies that raised Series A during those peak years, only about 1,600 have successfully raised Series B. The rest either pivot, seek alternative financing, or may not survive the wait.

Venture capitalists and startups alike must navigate this challenging environment with caution. VCs should adjust their expectations and strategies as the funding landscape continues to evolve. The extended wait times for Series B funding underscore the importance of long-term planning and adaptability in today’s market.


🔗 Source #VentureHighlight

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🟢 Bolt's Turbulent Comeback: Founder Returns, Seeks $450M at $14B Valuation

➡️ The startup world is full of dramatic twists and turns, and Bolt's story is no exception. The one-click online checkout company, once a darling of the venture capital scene, is now making headlines for its latest capital-raising efforts under the returning leadership of founder Ryan Breslow.

🔍 After a tumultuous period marked by lawsuits, infighting, and multiple rounds of layoffs, Bolt is now looking to raise a fresh $450 million at a staggering $14 billion valuation. This represents a remarkable turnaround from earlier this year, when the company offered investors a share buyback program that valued it at just $300 million.

➡️ The new funding is being raised from investors in the United Arab Emirates and the U.K., but the terms of the deal are already causing concern. Existing investors are being asked to buy into the new round at twice their current stake, or risk having their shares lose their preferred status and potentially being bought back at just a penny per share.

➡️ This aggressive move is likely to stir up more investor tensions and infighting within Bolt, a pattern that has plagued the company throughout its recent history. The startup has already raised close to $1 billion from investors such as General Atlantic and Tribe Capital, but its past has been marked by a litany of board changes, lawsuits, and executive departures.

Bolt's resurgence under Breslow's leadership is a remarkable feat, but the company's tumultuous past casts a shadow over its future. As it seeks to raise a substantial amount of capital at a lofty valuation, Bolt's ability to navigate the complex web of investor dynamics and regulatory hurdles will be crucial to its long-term success.


🔗 Source #VentureNews

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🗣️ The Evolving SAFE Landscape: Post-Money Dominance and Valuation Cap Preferences

➡️ Startup founders navigating the fundraising landscape in 2024 have witnessed a notable shift in the popularity of different SAFE (Simple Agreement for Future Equity) structures. Data gathered from 8,762 SAFEs signed through Carta's cap table platform reveals key trends.

➡️ Post-money SAFEs now make up 85% of all signed SAFEs, a significant change from the past when pre-money SAFEs were more prevalent, prior to Y Combinator's update of their default templates.

➡️ In terms of SAFE terms, valuation caps stand out as the most popular, appearing in 61% of agreements. The combination of a valuation cap and a discount is also common, accounting for 30% of the SAFE market, while discount-only SAFEs make up just 8%.

➡️ Over time, discounts have become less prevalent on SAFEs, even during funding downturns. When a discount is present, it typically falls around the 20% mark. Conversely, valuation caps tend to rise with the amount of capital raised, with a rough guideline of a $10 million cap for $1 million raised.

🟪 Additionally, a significant portion of SAFEs signed by venture capital funds include side letters with supplementary terms, such as most favored nation (MFN) clauses, pro-rata rights, and information rights.

The SAFE landscape in 2024 is characterized by the dominance of post-money structures, a preference for valuation caps over discounts, and the inclusion of additional terms in side letters, particularly for VC-backed deals. This evolution reflects the changing dynamics and priorities of both founders and investors in the current startup funding environment.


🔗 Source #VentureHighlight

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🌐 Walmart's JD.com Gambit: A Rollercoaster Ride in Chinese E-commerce

➡️ Walmart's journey with JD.com, often dubbed China's Aliexpress, has come to a close, marking the end of a tumultuous investment saga in the Chinese e-commerce landscape. The retail giant's 2016 acquisition of a 5% stake in JD.com initially positioned it as the largest shareholder, signaling ambitious plans for the Chinese market.

➡️ The stock chart tells a compelling story of JD.com's performance over the years. From Walmart's entry in 2017, shares climbed steadily, reaching a peak of over $100 in early 2021. However, the euphoria was short-lived as the stock experienced a sharp decline thereafter, fluctuating wildly through 2022 and 2023.

➡️ Walmart's recent decision to divest its entire stake in JD.com marks a strategic shift. The US retail behemoth is now focusing on its own franchise in China, which has begun to show promising results. This move coincides with another dip in JD.com's share price, though it seems to have found some stability around the $30 mark post-divestment.

This saga underscores the volatile nature of investments in China's tech sector and the challenges faced by foreign companies in navigating the complex Chinese market. As Walmart redirects its efforts towards its own operations in China, the e-commerce landscape continues to evolve, leaving investors and market watchers eager to see what comes next in this dynamic arena.


#VentureStats

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🗣️ Israeli Startup Funding Defies Odds: A Resilient Rebound Amidst Regional Turmoil

➡️ In a surprising turn of events, venture funding to Israeli startups has shown remarkable resilience, bouncing back significantly after a sharp decline following the Hamas attacks and subsequent Israeli response. Despite ongoing tensions in the region, Q2 2024 saw funding approach the $1 billion mark, nearly matching Q2 2023 levels and marking a substantial recovery from the sub-$500 million lows of Q4 2023.

➡️ This resurgence is particularly noteworthy given the continued conflict in the region. Large funding rounds have been secured by companies like InSightec, Hailo, Fetcherr, and MagnusMetal, spanning diverse sectors beyond the traditionally dominant cybersecurity field. Interestingly, cybersecurity startups raised only $66 million in Q2, as sectors like enterprise software and generative AI gained traction.

➡️ The Israeli startup ecosystem's recovery stands in stark contrast to the broader Asian venture funding landscape, which is at a near-decade low. However, it's worth noting that while dollar figures are rising, deal flow remains subdued compared to historical norms, potentially indicating challenges for seed and early-stage startups.

This rebound underscores the resilience and innovation of Israel's startup ecosystem, validating the optimism expressed by investors and founders at the outbreak of hostilities. As the region continues to navigate complex geopolitical challenges, the startup sector's ability to attract significant funding serves as a testament to its enduring appeal and potential for growth.


🔗 Source #VentureHighlight

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📌 Building a Powerful Social Media Presence for Startup Founders

➡️ Social media is a crucial tool for startup founders to research audiences, drive organic growth, build brands, and spread the word. Here's a practical guide to establishing an effective online presence:

1️⃣ Set realistic goals: Define the role of social media, end game, and timeline. Create short-term objectives to build momentum.

2️⃣ Identify target audiences: Use a six-question framework to understand your audience, including their preferred platforms, location, interests, and social media habits.

3️⃣ Prioritize platforms: Focus on 1-2 platforms initially. Consider leveraging personal accounts alongside brand accounts for authenticity and better performance.

4️⃣ Decide what to post: Find your unique perspective based on personal experiences and expertise. Experiment with various content types like how-to guides, behind-the-scenes looks, industry insights, and product updates.

5️⃣ Build cadence: Prioritize quality over quantity. Start small and gradually increase posting frequency based on performance.

6️⃣ Measure success: Use both quantitative (engagement, impressions, conversions) and qualitative (sentiment analysis) metrics to gauge performance.

7️⃣ Create a growth flywheel: Engage in community management, encourage shares and replies, maintain a consistent voice, and cross-promote across platforms.

❗️ Key tips:

Create a backlog of evergreen content
Analyze top and bottom-performing posts
Don't overlook silent supporters
Avoid relying too heavily on AI-generated content
Be prepared to adapt to platform changes

Remember, starting small is not only good for time management but also for growth. With focused prioritization, even small teams can build engaging social media feeds that attract and retain followers.

When evaluating startups, pay attention to founders who demonstrate a strategic approach to social media. A well-executed social presence can indicate a founder's ability to connect with audiences, adapt to changes, and build a community around their product or service — all valuable skills for scaling a business.


🔗 Source #VentureAdvice

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🗣️ Clean Concrete: The Unlikely Darling of Venture Capital

➡️ The push for sustainable construction materials has turned an unlikely sector into a hot investment target. Clean concrete startups have attracted over $750 million in venture funding in recent years, with the trend showing no signs of slowing down.

➡️ Silicon Valley-based Fortera recently secured an $85 million Series C round, the largest in the sector this year. Backed by Khosla Ventures and Temasek, Fortera aims to produce cement with 70% less carbon dioxide than traditional varieties. This investment highlights the growing interest in green alternatives to one of the world's most widely used materials.

➡️ The appeal for investors is clear: cement is a massive global market, valued at over $800 billion annually for ready-mix concrete alone. Moreover, the cement industry's significant environmental impact — responsible for 5% to 8% of global CO₂ emissions — presents a compelling case for innovation.

➡️ While most clean concrete startups remain in early funding stages, the sector's potential for growth and environmental impact continues to attract venture capital. As these companies mature, we can expect larger, later-stage funding rounds and potentially significant exits.

This surge in investment reflects a broader shift in the construction industry towards sustainability. With buildings accounting for roughly 40% of annual global CO₂ emissions, the development of greener building materials could play a crucial role in combating climate change while offering substantial returns for investors willing to bet on this unconventional but promising sector.


🔗 Source #VentureHighlight

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🖥 Grafana Labs Leads a Subdued Week in Venture Funding

➡️ In a week marked by cautious investment activity, Grafana Labs emerged as the standout, securing a $270 million extension to its 2022 Series D round. This mixed growth equity and secondary offering, led by Lightspeed Venture Partners, values the New York-based analytics platform at $6 billion, bringing its total funding to over $805 million.

➡️ The ticketing industry also saw a significant influx of capital, with TickPick receiving a $250 million investment from Brighton Park Capital. The New York startup's no-fee pricing model has helped it achieve impressive growth, now selling nearly $1 billion worth of tickets annually.

➡️ In the biotech sector, Pathalys Pharma continued its strong funding run, raising $105 million for its kidney disease treatments. Meanwhile, climate tech saw action with Fortera securing $85 million for its low-carbon cement technology.

🟩 Notably, Story Protocol raised $80 million to address AI-related intellectual property concerns, highlighting the growing intersection of blockchain and AI in solving modern tech challenges.

This week's funding landscape reflects a diverse array of sectors attracting investment, from healthcare and productivity tools to defense and space technology. However, the overall reduced volume of large funding rounds suggests a more cautious approach from investors in the current economic climate.


🔗 Source #WeeklyNews

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🟢 India's National Stock Exchange Soars to $29.9B Valuation Amid Economic Optimism

➡️ 360 One Asset, a key investor in India's National Stock Exchange (NSE), has significantly upgraded its valuation of the exchange to $29.9 billion. This marks a substantial increase from the $18-19 billion valuation seen in private transactions last year, reflecting growing confidence in India's economic trajectory and a surge in public listings.

➡️ The NSE, which boasts an impressive roster of backers including CPPIB, ChrysCapital, Temasek, Fairfax, and Tiger Global, reported a robust 28% year-over-year revenue growth, reaching $1.94 billion for the fiscal year ending March 2024. This financial performance underpins the exchange's rising prominence in global financial markets.

➡️ Notably, the NSE recently achieved a significant milestone when the collective market cap of its listed firms surpassed that of the Hong Kong Stock Exchange. Furthermore, the NSE has established itself as the world's largest derivative exchange, cementing its position as a key player in global finance.

🟢 This valuation boost comes as part of a broader trend of optimism in India's startup ecosystem. 360 One's update also revealed increased valuations for other Indian startups, including food delivery giant Swiggy at $11.5 billion and merchant payments platform Pine Labs at $4 billion.

The NSE's meteoric rise in valuation underscores India's growing economic clout and the increasing attractiveness of its financial markets to global investors. As India continues to assert itself on the world stage, the NSE's trajectory will likely be watched closely as a barometer of the country's economic health and potential.


🔗 Source #VentureNews

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🗣️ The Uncapped SAFE: A Misunderstood Tool in Startup Funding

➡️ Recent data from Carta reveals that only 1% of Simple Agreement for Future Equity (SAFE) agreements in 2024 were uncapped, sparking debate about their validity in startup funding. Despite criticism, the uncapped SAFE may be more valuable than commonly perceived, especially for high-risk, high-reward ventures.

➡️ Y Combinator, the originator of SAFEs, recommends using either a valuation cap or a discount, not both. This approach recognizes that caps and discounts solve risk from different perspectives. Caps suit startups with more predictable futures, while discounts are ideal for companies with front-loaded risk and uncertain outcomes.

➡️ The practice of combining caps and discounts can be punitive to startups, potentially over-diluting them at a crucial growth stage. Moreover, the standard 20% discount has become less meaningful as a standalone mechanism, failing to adequately compensate investors for risk in many cases.

➡️ A potential solution could be implementing compounding discounts over time, reflecting the evolving nature of startup fundraising. This approach could result in larger discounts (over 50%) without caps, offering greater flexibility for high-risk startups while still providing appropriate investor compensation.

As the startup landscape evolves, particularly with the rise of capital-intensive "hard tech" ventures, reconsidering the value of uncapped SAFEs could provide a more nuanced and effective funding tool. This shift could reinvigorate a misunderstood but potentially valuable instrument in the startup funding toolkit.


🔗 Source #VentureHighlight

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🟢 Eruditus Nears $150M Funding from TPG, Valuation Adjusts in Shifting Edtech Landscape

➡️ Indian edtech startup Eruditus is on the verge of securing a significant $150 million investment, potentially led by private equity giant TPG. This deal, if finalized, would mark the largest funding round for an Indian education firm in recent years, signaling a possible resurgence in the edtech sector.

➡️ The proposed investment would value Eruditus at up to $2.3 billion, contingent on meeting specific performance targets. However, this represents a decrease from its previous $3.2 billion valuation in August 2021, reflecting the broader challenges faced by the edtech industry post-pandemic.

➡️ Eruditus, founded 14 years ago, has established itself as a global player in executive education, partnering with leading universities worldwide. The company generates over two-thirds of its revenue from international markets, setting it apart from many of its peers in the Indian edtech space.

➡️ This potential investment comes at a crucial time for the edtech sector, which has faced significant headwinds since the reopening of schools post-pandemic. Many companies in this space have struggled with devaluations or closures as growth rates normalized. The industry has also been shaken by the recent troubles of once-giant Byju's, which is now facing legal and financial challenges.

The Eruditus deal, if completed, could breathe new life into the edtech sector, demonstrating that investors still see potential in companies with strong business models and global reach, even as the industry undergoes a period of adjustment and consolidation.


🔗 Source #News

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🌐 US Venture Funding Rebounds: AI Drives Growth in 2024

➡️ After a slowdown in 2023, US venture funding is showing signs of recovery in 2024. Median round sizes for seed through Series C funding have increased, with seed and Series A rounds surpassing 2021-2022 levels. AI is a major driver, with funding doubling in Q2 2024. Investors note higher valuations, especially in AI and security sectors.

➡️ While Series B and C rounds remain below 2021 peaks, they're trending upward. The time between seed and Series A rounds has extended, leading to more mature companies seeking Series A funding. Despite the overall uptick, valuations vary significantly across sectors.

As the market rebounds, opportunities abound, particularly in AI. However, due diligence remains crucial. The extended time between rounds may offer better-prepared companies for investment, but also demands higher valuations. Stay alert to sector-specific trends and be prepared for increased competition in hot areas like AI and security.


🔗 Source #VentureStats

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