unicorn

In venture capital, it’s still the age of the unicorn

Howie Xu Contributor Howie Xu is the vice president of artificial intelligence and machine learning at Zscaler. He previously co-founded TrustPath and served as an entrepreneur in residence at Greylock. This month marks the 5-year anniversary of Aileen Lee’s landmark article, “Welcome To The Unicorn Club”. At the time, the piece defined a new breed of startup — the $1 billion privately held company. When Lee did her first count, there were 39 “unicorns”; an improbable, but not impossible number.. Today, the once-scarce unicorn has become a global herd with 376 companies on the roster and counting. But the proliferation of unicorns begs raises certain questions. Is this new breed of unicorn artificially created? Could these magical companies see their valuations slip and fall out of the her...

Travel startups are taking off

The second wave of Internet-era travel companies has captured the attention of venture capitalists. In the last five years, travel companies have raised more than $1 billion in venture capital funding. That includes short-term rental startups, travel and tourism apps, marketplaces for “experiences” and other travel or hospitality tech platforms. Airbnb, a $38 billion company and an anomaly in the category, has raised $3 billion in that same time frame, according to PitchBook. In the last few months alone, aspiring Concur-competitor TripActions and travel activities platform Klook entered the “unicorn” club with large venture rounds that valued both of the businesses at more than $1 billion. Meanwhile, luggage maker Away raised $50 million at a $400 million valuation and smaller startups in...

Venture capital investment in US companies to hit $100B in 2018

So many new unicorns valued at $1 billion-plus, countless $100 million venture financings, an explosion of giant funds — it’s no surprise 2018 is shaping up to be a banner year for venture capital investment in U.S.-based companies. There are more than 2.5 months remaining in 2018 and already U.S. companies have raised $84.1 billion — more than all of 2017 — across 6,583 VC deals as of Sept. 30, 2018, according to data from PitchBook’s 3Q Venture Monitor. Last year, companies raised $82 billion across more than 9,000 deals in what was similarly an impressive year for the industry. Many questioned whether the trend would — or could — continue this year, and oh, boy has it. VC investment has sprinted past decade-highs and shows no signs of slowing down. Why the uptick? Fewer companies are ra...

India’s Uber rival Ola is headed to Europe with ride-hailing launch in the UK

The UK is getting a new alternative to Uber after India-based ride-hailing company Ola announced plans to expand to the country, which will become its first market in Europe. Ola was founded in 2010 and it covers over 110 cities in India where it offers licensed taxis, private hire cars and rickshaws through a network of over one million drivers. The company has raised around $3 billion from investors that include SoftBank, Chinese duo Tencent and Didi Chuxing and DST Global . It was last valued at $7 billion. Ola ventured overseas for the first time when it launched in Australia earlier this year — it is now in seven cities there — and its move into the UK signals a further expansion into Europe. Ola’s UK service isn’t live right now, but the company said it will begin offering licensed t...

A new $124 million for Brazil’s Movile proves that investors still see promise in Latin American tech

Brazil’s macroeconomic picture may be gloomy, but technology investors still see hope in the nation’s burgeoning technology sector — and a recent $124 million financing for the mobile conglomerate Movile is the latest proof that that the pace of investment isn’t slowing down. Brazil was already the hottest spot for technology investment throughout Latin America — with Sao Paulo drawing in the majority of the record-breaking $1 billion in financing that the region’s startups attracted in 2017. And with this latest funding for Movile, led by Naspers, that trend looks likely to continue. Indeed, Naspers investments in Movile (supplemented by co-investors like Innova, which participated in the most recent round) have been one of the driving forces sustaining the Brazilian startup community. In...

Nigerian logistics startup Kobo360 accepted into YC, raises $1.2 million

Jake Bright Contributor More posts by this contributor Breaking down France’s new $76M Africa startup fund Africa Roundup: African startup investments turn to fintech this winter season When Nigerian logistics startup Kobo360 interviewed for Y-Combinator’s 2018 cohort a question stood out to founder Obi Ozor. “‘What’s holding you back from becoming a Unicorn?’ they asked. My answer was simple: ‘working capital,’” said Ozor. Kobo360 was accepted into YC’s 2018 class and gained some working capital in the form of $1.2M in pre-seed funding round led by Western Technology Investment announced this week. Lagos based Verod Capital Management also joined to support Kobo360. The startup — with an Uber -like app that connects Nigerian truckers to companies with freight needs — will use the funds to...

Lessons from cybersecurity exits

Dear F0und3r: What a month this has been for cybersecurity! One unicorn IPO and two nice acquisitions – Zscaler’s great debut on wall street,  a $300 million acquisition of Evident.io by Palo Alto Networks and a $350 million acquisition of Phantom Cyber by Splunk has gotten all of us excited. Word on the street is that in each of those exits, the founders took home ~30% to 40% of the proceeds. Which is not bad for ~ 4 /5 years of work. They can finally afford to buy two bedroom homes in Silicon Valley. Evident.IO Investment Rounds and Return estimates Date Select Investors Round Size Pre Post Dilution Estimated Returns / Multiple of Invested Capital Sep 2013 True Ventures $1.5m $5.25m $6.75 m 22% 44X Nov 2014 Bain Capital $9.8 m $18.1m $28.0 m 35% 10.7X Apr 2016 Venrock $15.7 m $35.0 m $50...

Late-blooming startups can still thrive

Joanna Glasner Contributor More posts by this contributor What does it take to be a startup that raises huge sums quickly? Not a minimalist? Startups will gladly store, manage and deliver your items It seems like startup news is full of overnight success stories and sudden failures, like the scooter rental company that went from zero to a $300 million valuation in months or the blood-testing unicorn that went from billions to nearly naught. But what about those other companies that mature more gradually? Is there such a thing as slow and successful in startup-land? To contemplate that question, Crunchbase News set out to assemble a data set of top late-blooming startups. We looked at companies that were founded in or before 2010 that raised large amounts of capital after 2015, and we also ...

Global tech firms and investors are reshaping Latin America’s startup environment

Latin America is emerging as the new battleground for the global tech giants, and some of Silicon Valley and Asia’s biggest investors—from Sequoia Capital to SoftBank—are taking notice. International investment in Latin American startups has more than doubled since 2013, with 25 new investors entering the region in 2017 alone, including SoftBank, Didi Chuxing and TPG’s US$1B global impact fund, The Rise Fund. Some of Silicon Valley’s biggest names are now active in Latin America, including Andreessen Horowitz, Accel Partners, Founders Fund, Sequoia Capital, and Y Combinator, choosing deals opportunistically across financing stages and sectors: Andreessen Horowitz made its inaugural investment in Latin America in Rappi, a last-mile delivery service operating in Colombia, Mexico and Brazil, ...

Raise softly and deliver a big exit

Jason Rowley Contributor Jason Rowley is a venture capital and technology reporter for Crunchbase News. More posts by this contributor: In the world of venture capital, the prospect of a successful “exit” looms large in the minds of investors. A VC’s business model is less about the money that goes into a startup than it is about what comes out. It’s true that most companies fail to exit gracefully, and of those that do, surprisingly few exit by going public. The majority of exits take place through mergers and acquisitions (M&A). For most investors of this ilk, it’s not always the size of the exit that matters; rather, the focus is placed on the ratio of exit valuation to invested capital (VIC). Crunchbase News has previously covered exits that delivered high VIC ratios — or those tha...

Mobile delivers high exit multiples despite broader market slowdown

Jason Rowley Contributor Jason Rowley is a venture capital and technology reporter for Crunchbase News. More posts by this contributor: In the world of mobile apps, numbers come in two sizes: big and bigger. More than one billion people use Facebook’s mobile app every day. Instagram — another Facebook property — has well over 100 million photos and videos uploaded to the platform every 24 hours. And untold millions of emails, instant messages, small financial transactions and other interactions are facilitated by mobile devices every day. But what about the financial side of the mobile business; specifically, venture investment and returns? All of that activity should bring in some considerable revenue, and a lot of startups are seeking a niche in this expansive ecosystem. By taking a look...

US & Canada VCs favor late-stage giants over upstarts in Q4

Startup investors in the U.S. and Canada have been putting a little less money to work across a lot fewer deals in recent months. After three quarters of rising investment at early through growth stage, VCs have cut back in the fourth quarter of 2017. They participated in fewer deals and invested less capital compared to both the prior quarter and year-ago periods, according to Crunchbase projected data. (For a quick explanation as to why this report now includes Canada, see the end of the post.) Overall, investors put a projected $21.9 billion into seed through technology growth-stage rounds in Q4, down from a projected $28.1 billion in Q3. Deal count fell most markedly at the earliest stages, with the projected number of closed rounds for seed-stage startups down by more than one-third f...