Maria Montero

Weekly Startups: American Businesses Raised $ 30 Billion In …

Let’s start this week’s newsletter with some facts. Nationwide, startups made $ 30.8 billion in the first quarter of 2019, up 22 percent year-over-year, according to the latest Crunchbase business roundup.

A closer look at the numbers shows a big drop in funding from Los Angeles and a slight decrease in mega turns, or funding in excess of $ 100 million. The number of mega-rounds fell to 57 transactions in the first quarter and the value of the transaction also dropped. That said, mega-rounds still accounted for $ 16.4 billion, making Q1 2019 the second-best quarter on record for mega-rounds.

The bottom line is that these monster deals accounted for a large chunk (29 percent) of all dollars invested in American startups in the first quarter. As investors move downstream and startups choose to stay private longer and longer, we will continue to see a greater recovery in the mega rounds.

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OK, to other news …

IPO corner

Once the trade after the pink confetti was swept off the floor, analysts and investors had a different story to tell about one of the first unicorns to make its public debut. Lyft started the week struggling to reach its IPO price, closing several days below $ 72, even though it opened 20 percent pop at $ 86. What’s going on? People are shorting Lyft shares, looking to profit from the company’s sinking value. However, things are looking up; As of Friday as I was writing this newsletter, Lyft was trading at about $ 74 a share.

In another initial public offering (IPO), or should I say direct listing news, Slack has reportedly chosen the NYSE for its next outing. A quick reminder of why Slack chose to go live via direct listing: The company doesn’t need IPO cash thanks to the hundreds of millions of dollars on its balance sheet, but its employees and longtime investors need the liquidity. . A direct listing allows it to be made public without including new stocks, no blackout period, and no intermediary bankers. The process saves some money and speeds up the process. OK, that was not as short as I intended, move on …

Saying goodbye to venture capital

In a story that sent the entirety of Silicon Valley into a frenzy, Forbes reported that Andreessen Horowitz was denouncing his status as a venture capital firm and would be registering all of his employees as financial advisers. For those inclined, Crunchbase News’ Alex Wilhelm and I unpacked what this means in the latest episode of Equity; For the less inclined, here’s the TLDR: In order to give a16z the freedom to make riskier bets, like buying public company stocks or piles of cryptocurrency, the title of financial advisor gives them that ability.

Femtech’s billion dollar year.

According to PitchBook, defined as PitchBook, defined as any software, diagnostics, products and services that leverage technology to improve women’s health, it has attracted around $ 250 million in VC funding. That puts the sector on pace to secure an investment of nearly $ 1 billion by the end of the year, far surpassing last year’s record of $ 650 million. For a more historical context, startups in the space made just $ 62 million in 2012, $ 225 million in 2014, and $ 231 million in 2016.

The 20 minute term sheet

Alternative financier Clearbanc says it will invest $ 1 billion in 2,000 e-commerce startups in 2019. Here’s the key: Until the companies have returned 106 percent of Clearbanc’s investment, Clearbanc takes a percentage of their revenue each month. Clearbanc’s goal is to help companies preserve equity, favoring a revenue-sharing model over the traditional venture capital model, which eats up equity in startups in exchange for capital. I spoke with Michele Romanow, co-founder of Clearbanc, to learn more about Clearbanc’s attempt to discontinue venture capital.

Initial capital