Affirm Raises Another $200 Million, With Investment From Singapore's GICAffirm, which offers instant loans for online purchases, said on Monday it has raised another $200 million in equity. The San Francisco-based company's Series E funding round was led by Singapore's sovereign wealth fund GIC. It also had participation from Khosla Ventures, Lightspeed Venture Partners, Founders Fund, Spark Capital, Caffeinated Capital, Ribbit Capital and others. The latest round brings its total equity funding to $450 million. It also brings its valuation to a reported $1.5 billion to $2 billion, according to The Wall Street Journal, up from a previous valuation of $800 million. [ Forbes ] Big Banks Pour Millions Into This Cyber Security StartupFinancial heavyweights are investing millions of dollars into a cybersecurity startup that aims to paralyze phishing attacks, in which hackers try to trick people into either revealing their login credentials, downloading viruses, or visiting sites laden with malicious software. Big banks such as JPMorgan Chase (JPM, -0.17%), American Express (AXP, +0.38%), and HSBC (HSBC, +1.76%) are among the investors in a new $40 million round of funding for Menlo Security, a four-year-old firm. Other investors include Ericsson Ventures, General Catalyst, Sutter Hill Ventures, Osage University Partners, and Engineering Capital. [ Fortune ] Behind Hedge Fund Billionaire Steve Cohen’s Fintech InvestmentsSince Steve Cohen quietly launched Point72 Ventures last year, he has invested a small fraction of his $13 billion fortune in 13 early-stage fintech startups. But it’s not VC returns the hedge fund billionaire is most interested in, according to three people who have worked with his VC partners. Mr. Cohen made the investments to get a firsthand look at the future of trading, which is increasingly relying on machine learning and big data software analytics, they said. Point72 Ventures has so far put money into subscription-based software and AI companies whose applications can be used by traders and other finance professionals. [ The Information ] INSIDE THE WORLD’S LEADING CRYPTO FUND, THE FUTURE EXIT ENVIRONMENT FOR CRYPTO ASSETS & THE BEAUTY OF BENEVOLENT DICTATORSHIP WITH OLAF CARLSON-WEE, FOUNDER @ POLYCHAIN CAPITALOlaf Carlson-Wee is the Founder & CEO @ Polychain Capital, one of the world’s premier funds actively managing a portfolio of blockchain assets. Having founded the firm less than 2 years ago with their initial $4m fund, Polychain now has over $200m AUM with backing from the likes of Sequoia, Founders Fund, Andreessen Horowitz and USV just to name a few. Prior to founding Polychain, Olaf was the first employee at Coinbase serving as their Head of Risk and as product manager. In addition, Olaf has also been an active angel with a portfolio including the likes of Robinhood, Ethereum and Numeral. [ 20 VC ] Want Proof That Patience Pays Off? Ask the Founders of This 17-Year-Old $525 Million Email EmpireIt's a beautiful day in his neighborhood, and Ben Chestnut is thinking about pain. Late-afternoon sun is shining on Atlanta's BeltLine, an abandoned train track converted into a green pedestrian path. Children cluster at a cart selling small-batch raspberry-lime Popsicles. Commuters swarm past on bikes and boards and feet, the city's gleaming towers at a picturesque remove. And Chestnut, a slim and sober presence in near-monochrome navy beneath his mop of black hair, is contemplating a bicycle. MailChimp co-founder and CEO Ben Chestnut. His company went through several permutations before focusing on the email marketing it's now virtually synonymous with. "You start a company, and then you wake up one day and realize you don't remember what any of your hobbies are," says Chestnut, 43, the co-founder and CEO of MailChimp. "It gets scary when you don't really understand what it is that you like." Former Facebook executive: 'We have created a tool that's ripping apart the social fabric of how society works'
Former Facebook executive Chamath Palihapitiya said in an interview at Stanford's graduate business school that social media is damaging society. The November talk, which was picked up by The Verge on Monday, is another example of early Facebook executives criticizing what they created. [ Business Insider ] [PreMoney SF 2017] Mark Suster: "Upfront Ventures on the State of the Venture Capital Industry"Premoney Vs Postmoney - Which Is A Better Technique For Negotiating?When negotiating your next fundraising round, should you talk valuation in premoney terms or postmoney terms? Premoney is the valuation before the investment, employee stock option pool (ESOP) expansion, debt-to-equity conversion and investment. Postmoney is the value of the business after all that. As an investor, postmoney is simpler. Despite the improved simplicity, I don’t think the industry is going to move to postmoney anytime soon. Why are postmoney conversations simpler? Because the valuation of the business is fixed. The value of the business doesn’t float from variables like pro-rata participation, ESOP expansion and debt-to-equity conversion. Existing investors, also called insiders, often have negotiated for pro-rata rights. Pro-rata is the right but not obligation to invest in future rounds to maintain the same ownership. Lots of pro-rata rights means a larger round size. ESOP expansion also increases pro-rata investment. With the rise of debt as a seed investment vehicle, debt-to-equity conversions at the time of equity rounds are more common. The face value of the debt is added to the postmoney at investment time. [ TOMASZ TUNGUZ ] Didi Chuxing-backed Estonian rideshare startup Taxify launches in SydneyEstonia-founded rideshare company Taxify has launched in Australia, naming Zomato’s former head of growth and partnerships, Samuel Raciti its local country manager. The startup was founded by 19 year old Markus Villig in 2013. Counting among its backers Chinese rideshare startup Didi Chuxing, it has since launched in 20 countries, including Austria, France, and Georgia, amassing four million customers. Raciti said the startup decided the time was right to move into Australia as it now has the know how and resources to support global operations. “Taxify initially focused its expansion efforts on the European and African markets…we are confident that we can make a positive impact in Australia and bring healthy competition to the market,” Raciti said. With 4,000 drivers on board, the startup is launching in Sydney first up with a view to rolling out across Melbourne before Christmas, hoping its lower fares and driver commission will bring both riders and more drivers on board. [ Startup Daily ] Can Silicon Valley’s Pro-Antitrust Congressman Navigate His Monopoly-Friendly District?Startup Lovepop Decorates Henri Bendel Store With 30,000 ButterfliesDatum at the Fintech Digital Congress 2017The CEO of Soylent, a food-replacement startup that has raised $75 million, is out[PreMoney SF 2017] "Building a VC Competitive Advantage through Portfolio Services"LimeBike, the cycle-sharing startup, expands to Europe as it hits 1M rides in the USSan Francisco SaaS-focused accelerator program Acceleprise to expand to Melbourne |