Partech Ventures emerges as new European VC giant after closing $1 billion in new funds over 18 monthsPartech Ventures announced today that it had closed a $455 million early-stage fund, its fourth new fund since January 2016. Founded in Silicon Valley as a subsidiary of a French bank, the international venture firm now has its main office in Paris, as well as an office in Berlin. Following the closing of this new fund, Partech can safely boast that it has become one of Europe’s biggest VC players. [ VB ] Jawbone's demise a case of 'death by overfunding' in Silicon ValleyTop-tier venture capital firms Sequoia, Andreessen Horowitz, Khosla Ventures and Kleiner Perkins Caufield & Byers, and then a sovereign wealth fund, invested hundreds of millions of dollars in Jawbone, lifting its valuation to $3.2 billion in 2014. Ultimately, all that money couldn't save San Francisco-based Jawbone, which began liquidating proceedings in June after its fitness-tracker product failed to take off. It now ranks as the second largest failure among venture-backed companies, based on total funding raised, according to the research firm CB Insights. Jawbone's fall after raising more than $900 million provides a stark example of how the flood of cash pouring into Silicon Valley can have the perverse effect of sustaining companies that have no future, technology executives and financiers say. [ Reuters ] Detroit’s startup scene is exploding and here are the numbers to prove itTake this at face value: Detroit has 50% more venture-backed startups than it did three years ago. This comes from a study from the Michigan Venture Capital Association (MVCA) which found there are 35 active venture-backed startups in Detroit. Sure, that’s not a huge number compared to other regions, but the growth is notable. I live in the great state of Michigan and can attest to the growth. Startups are quickly becoming part of the culture in areas previously dominated by massive, soul-crushing corporations. Over the last several years, startups became part of the soul of Detroit, Grand Rapids and Ann Arbor, and these reports confirm that feeling. [ Tech Crunch ] The disappearing startupFor the first time on record, U.S. companies are actually dying at a faster rate than they're being born, according to an analysis by the Economic Innovation Group, a non-profit research and advocacy organization. Why it matters: The slow rate of business starts means the U.S. economy is powered by a narrowing segment of companies, people and geographies — making the overall economy less resilient than it was after previous recessions. When fewer new companies are being born, it's less likely that the companies and jobs that are disappearing will be replaced by better ones. And without competitive pressures from upstarts, big companies are able to grow bigger faster, increasing industry consolidation. [ Axios ] European VC funding hits €6.4 billion, its highest since 2007Venture capital fundraising in Europe reached €6.4 billion last year, according to a new report, the highest since 2007. The report, entitled The Acceleration Point: Why Now is the Time for European Venture Capital, published by Invest Europe, showed that nearly 10% of this capital came from North American institutional investors while Europe’s GDP grew 1.8% last year. It found that European VC funds are still on the rise with 13 funds raising more than €100 million last year. Furthermore, a new EU fund-of-funds worth €400 million will add to the investment landscape, said Invest Europe. Latina Immigrants Raise $30 Million Venture Fund In Silicon ValleyBabel Ventures, a Silicon Valley firm founded by two young immigrant Latina entrepreneurs, just announced $30 million raised to help start-ups. These funds aim to empower entrepreneurs, many who struggle to receive funding, with a need capitol to continue contributing to our economy through their start-ups. The firm was founded earlier this year by Bárbara Kunde Minuzzi and Daniela Arruda. Both women have experience in raising big dollar funds from high net worth individuals. In the past, Barbara in particular has singlehandedly raised over $250 million for real estate and high tech companies. [ Huffington Post ] WeWork, the company that simulates startup life, is worth more than Twitter, Box, and Blue Apron combined WeWork has raised $760 million in a new Series G funding round, which according to sources close to the deal, puts the coworking company's valuation at $20 billion. With the latest valuation, WeWork now tops the market caps of office REITs like Boston Properties ($18.25 billion) and Vornado Realty ($17.7 billion). WeWork, according to documents filed publicly with the Delaware Secretary of State on June 30th, issued 13.2 million new shares of preferred stock at a price of $57.90. This follows a $300 million investment made by Japan's Softbank in March 2017. (We're currently trying to confirm the investor of the June round--WeWork declined to comment on the latest investment and current valuation). [ Forbes ] AI cybersecurity startup Darktrace raises $75 million, now valued at $825 millionDarktrace, a cybersecurity platform that detects threats in real time using machine learning that adapts and learns over time, has raised $75 million in a series D round of funding led by Insight Venture Partners, with participation from Summit Partners, KKR, and TenEleven Ventures. The latest raise comes exactly a year after the U.K. outfit announced a $64 million funding round, which included participation from Japanese telecom giant Softbank. Darktrace has raised $180 million in total since its inception, and the company now claims a post-funding valuation of $825 million. [ Venture Beat ] Silicon Valley's Overstuffed StartupsThis was supposed to be the year Silicon Valley's financial plumbing started to unclog. That prediction hasn't panned out, and it's becoming harder to see a way to avoid a messy blowout. Here's what's happening: Young tech companies have been backed by unprecedented sums of investment money in the last three or four years. Those startup financiers in turn have collected record amounts of money from their own investors to buy pieces of future tech startups. All this money is going into the startup system, but it's not coming out the other end. And that's trouble. The way Silicon Valley's intricate money pipes are supposed to work is people who start tech companies receive financial backing from venture capital investment firms tasked with finding the next Google or Facebook. Those founders build a company with that money and eventually sell their company or take it public, if all goes well. The financiers make their money back, and then some, and pass the windfall down the line to their investors. [ Bloomberg ] |