|
|
|
|
|
|
|
|
|
|
Three Questions With ComplyAdvantage CEO Vatsa Narasimha
|
|
By Marc Vartabedian, WSJ Pro
|
|
|
|
|
|
|
Good day. Exits have been few and far between for venture investors over much of the past 18 months. That appears to be changing. U.S. venture exit value rose 94% to roughly $18 billion in the first quarter compared with the same quarter of last year, according to analytics firm PitchBook Data.
Golden Recursion is one company that delivered an exit for its investors, which include Andreessen Horowitz, DCVC and Harpoon Ventures. The San Francisco-based artificial intelligence startup was acquired by financial crime intelligence startup ComplyAdvantage in a deal that closed in March. The deal hasn’t been previously reported and the company didn’t disclose the terms of the transaction.
ComplyAdvantage Chief Executive Vatsa Narasimha provided written answers to WSJ Pro about the market for mergers and acquisitions.
WSJ Pro: What has changed in the M&A market between now and last year?
Narasimha: While we have seen some acceleration in M&A activities in areas like mid-market banking in the United States, we are fortunate to have continued to expand in challenging market conditions and have the support of an array of leading technology investors. As a result, regardless of the broader market conditions, we are always evaluating how we can best deliver on our core business objectives, including through acquisitions.
WSJ Pro: Can you walk me through the timeline of this deal and how it came together?
Narasimha: Charles Delingpole, our founder, and Jude Gomila, the founder of Golden, have known each other since 2005, so this deal is the product of many conversations over an extended period. The synergy in the expertise of our AI and data science specialists became clearer in recent months, leading to more in-depth conversations with myself and other executives. The acquisition formally closed in March 2024, which is when we welcomed Golden’s staff into the ComplyAdvantage family.
WSJ Pro: Venture investors say the M&A market is picking up after a long stretch of inactivity. Did the venture market affect this deal?
Narasimha: Golden had raised $40 million in Series B funding in October 2022, so the company was doing well independently even in a tough venture environment. The timing of this deal was more about the opportunity to accelerate our goal of delivering AI-enriched financial crime insights to our customers through a best-in-class user experience built on the most interconnected data. The alignment in values and expertise between our teams was also critical.
|
|
|
And now on to the news...
|
|
|
|
|
|
|
|
|
|
The Salesforce Tower rises over the San Francisco skyline. PHOTO: ERIC RISBERG/ASSOCIATED PRESS
|
|
|
|
|
|
Salesforce calls for AI emissions regulations. Salesforce is pushing for more environmental regulation of artificial intelligence, highlighting concerns about energy use and a lack of emissions disclosure within the technology sector, WSJ Pro reports. The software developer said Monday that it will be advocating for lawmakers and regulators to start building legislation to require companies to disclose their AI emissions, with standardized metrics for measuring and reporting the environmental impact of AI systems.
|
|
|
|
|
1.5%
|
|
Energy consumption from data centers represents roughly 1.5% of power generation, but this could move to 4.5% in the coming years, said Megan Lorenzen, director of climate and energy at Salesforce.
|
|
|
|
|
Change Healthcare Hackers Broke in Nine Days Before Attack
|
|
|
The hackers who attacked UnitedHealth Group’s Change Healthcare unit were in the company’s networks for more than a week before they launched a ransomware strike that has crippled vital parts of the U.S. healthcare system since February, WSJ Pro reports. The attackers, who represented themselves as the ALPHV ransomware gang or one of its affiliates, gained entry into Change’s network on Feb. 12, a person familiar with the cyber investigation said. They used compromised credentials on an application that allows staff to remotely access systems, the person said.
|
|
Cathie Wood’s Popular ARK Funds Are Sinking Fast
|
|
|
Cathie Wood’s investors are jumping ship, The Wall Street Journal reports. Investors have pulled a net $2.2 billion from the six actively managed exchange-traded funds at her ARK Investment Management this year, a withdrawal that dwarfs the outflows in all of 2023. Total assets in those funds have dropped 30% in less than four months to $11.1 billion—after peaking at $59 billion in early 2021, when ARK was the world’s largest active ETF manager.
|
|
|
|
|
|
|
Giant funds now rule Wall Street. Giant investment companies are taking over the financial system. Top firms now control sums rivaling the economies of many large countries. They are pushing into new business areas, blurring the lines that define who does what on Wall Street and nudging once-dominant banks toward the sidelines, The Wall Street Journal reports. Today, traditional and alternative asset managers control twice as many assets as U.S. banks, giving them increasing control over the purse strings of the U.S. economy.
|
|
|
|
|
|
|
|
|
|
|
Funds
Seraphim Space, with offices in London and San Francisco, held a first close on a new venture fund, Seraphim Space Ventures II LP, which will invest in space technology startups at the seed and Series A stages. Investors in the new fund include satellite operators Eutelsat and SKY Perfect JSAT, as well as electronics company NEC, a Seraphim spokesperson said. The fund’s target is $100 million, according to a regulatory filing.
People
CoVenture Management, a privately held alternative asset-management firm focused on direct credit and credit-oriented investments, said it has promoted Michael Breitstein to partner from managing director. Breitstein has more than 10 years of special-situations credit experience and began his career as an investment-banking analyst.
|
|
|
|
|
Givebutter, a nonprofit fundraising and CRM platform, said it has closed a $50 million growth investment. The investment will accelerate the development of Givebutter’s fundraising and CRM platform, which nonprofits use to raise funding, according to the company, which says its platform provides nonprofits with a comprehensive view of donor data alongside tools such as donation forms and fundraising campaigns. The company said later this year it plans to launch a workflow tool to help nonprofits automate tasks and donor journeys across its platform.
Midas, a fintech startup serving retail investors in Turkey, said it has raised $45 million in new financing led by Portage. The company, founded in 2020, aims to simplify investing for first-time investors with its stock brokerage app. The new capital will help the company roll out new product lines including crypto trading and a savings product, double its headcount to more than 400, and expand into emerging markets, Midas said.
Pomelo, a San Francisco-based consumer fintech startup, raised a Series A of $35 million in venture capital and a $75 million expansion of its warehouse facility from Vy Capital, Founders Fund and A* Capital. The capital brings total funds raised to date to $55 million in equity capital and $125 million for its warehouse facility.
Clarity Pediatrics, a San Francisco-based digital health company, raised $10 million in seed funding in a round led by Rethink Impact, with participation from Homebrew and Maverick Ventures.
Toku, a recurring payments platform operating in Mexico, Chile and Brazil, picked up a $9.3 million investment led by Gradient Ventures.
Rivet, a Detroit-based electrical construction workforce management platform, snagged a $6 million investment led by Brick & Mortar Ventures.
|
|
|
|
|
|
|
|
Evidence is stored in the National Center for Missing and Exploited Children’s office.
PHOTO: ALYSSA SCHUKAR FOR THE WALL STREET JOURNAL
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
