• StrictlyVC: April 6, 2015

    Hi, everyone! Welcome back. Hope you had a terrific break. (Pst, web visitors, this is a little easier to read than what you see below.)

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    Top News in the A.M.

    Twitter and YouTube have been blocked again in Turkey.

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    Hummer Winblad Reboots

    Like many venture firms founded before the last tech boom, the San Francisco-based outfit Hummer Winblad Venture Partners seemed, for a time, to be staring death in the face owing to the market’s implosion, uneven returns, and a drawn-out lawsuit with two major record labels over its 2000 investment in the now defunct file-swapping service Napster.

    The 26-year-old firm made it through the to the other side, though, and today, it’s in remarkably good shape, newly rebranding itself as HWVP and, this morning, launching a snazzy new site to mark the occasion.

    The changes are more than cosmetic. HWVP is, like other firms of its vintage, a lot smaller than it used to be. The firm once employed a deep bench of managing directors and associates. Now it employs three managing directors: Mitchell Kertzman, a serial CEO (Liberate Technologies, Sybase, Powersoft Corp.) who joined the firm 12 years ago; Lars Leckie, who joined the firm a decade ago and was promoted to managing director in 2011; and Steven Kishi, who has spent the last 20 years bouncing between Hummer Winblad and various operating roles. (Most recently, Kishi was VP of product management at the cloud services company Altiscale.)

    Even firm cofounders John Hummer and Ann Winblad are no longer “managing directors” but are listed at the new site instead as “founding partners.”

    The amount of capital that HWVP has to invest is far less, too. The firm closed its sixth fund with $201 million in late 2007, down from the $424 million it had raised for its fifth fund in 2000.

    Leckie suggests the firm will look to close its next fund with between $105 million and $150 million. (Leckie declines to discuss HWVP’s specific fundraising plans, but he offers that he believes that “small, focused funds do the best by their investors,” saying he thinks that “$35 million to $50 million” per partner is ideal.)

    The firm’s prospects would seem pretty promising. Though forced to retrench, HWVP has never veered from its core thesis of investing in enterprise software companies. And while it missed the consumer wave as a result, its bets look pretty prescient right now. For example, the firm was the first investor in the 11-year-old, SaaS-based sales platform InsideSales, which last month raised $60 million at a valuation north of $1 billion. (The company has raised $200 million altogether.)

    That bet alone will “return our [sixth] fund,” says Leckie, who says that HWVP owns “two times what everyone else owns” of the company.

    HWVP is also among the earliest investors in Five9, MuleSoft, and Birst, among others. Five9, a San Ramon, Ca.-based call center company, went public last year. (Its market cap is $272 million, as of this writing.) MuleSoft, the San Francisco-based integration platform for connecting enterprise applications in the cloud, has raised well over $100 million from investors, closing its last round of $50 million last year at a post-money valuation of $800 million. Meanwhile, Birst, a San Francisco-based business intelligence and analytics business, just raised $65 million in Series F funding last month, bringing its total funding to $156 million. (Leckie declined to discuss its valuation.)

    Of course, mark-ups are one thing. Actual exits are another. It remains to be seen whether HWVP will see the profits it’s expecting, particularly given the widening gap between the number of richly valued late-stage, still-private companies and those going public.

    Perhaps unsurprisingly, Leckie is highly optimistic about the firm’s odds. “We’re having a kick ass first quarter,” he tells StrictlyVC. “Valuations will fall where they fall. But it is a very good time to be quietly investing in enterprise and SaaS infrastructure.”

    Luckily for HWVP, it’s been doing it for years.

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    New Fundings

    Caribou Biosciences, a four-year-old, Berkeley, Ca.-based biotech startup focused on precise gene editing, has raised $11 million in Series A funding from the Swiss drug giant Novartis, along with Fidelity Biosciences, Novartis, Mission Bay Capital, 5 Prime Ventures, and an undisclosed strategic partner. Xconomy has more here.

    DraftKings, the four-year-old, Boston-based online fantasy sports business that lets fans play with real money, is raising $250 million fromWalt Disney Co. at a roughly $900 million valuation, reports the WSJ. In return, DraftKings has committed to spend more than $500 million in advertising on ESPN’s platforms in coming years, says the report. The company had previously raised roughly $75 million from investors, including The Raine Group, Redpoint Ventures, GGV Capital and Atlas Venture.

    Educents, a two-year-old, Oakland, Ca.-based online marketplace for educational products, has raised $2.9 million in seed funding led bySoftTech VC, with participation from Crosslink Capital, Deep Fork Capital, Kapor Capital and Learn Capital. Individual backers, including angel investor Joanne Wilson, also joined the round.

    Mojix, an 11-year-old, L.A.-based developer of wide area sensor networks, has raised $14 million in Series D funding led by OMERS Ventures, with participation from Mercury Ventures and earlier backers Oak Investment Partners, Red Rock Ventures, and InnoCal Venture Capital.

    PicnicHealth, a nine-month-old, San Francisco-based company whose subscription-based service helps chronically ill patients track and store their medical records, has raised $2 million in seed funding, including from The Social+Capital Partnership, Great Oaks Venture Capital, Slow Ventures, Standford’s StartX Fund, and a long list of individual investors, including Y Combinator partner Paul Buchheit and former Facebook executive Sam Lessin. TechCrunch has more here.

    SeatGeek, a nearly six-year-old, New York-based ticket search engine that aggregates listings for live sports, concert, and theater events, has raised $62 million in Series C funding led by Technology Crossover Ventures, with participation from earlier backers Accel Partners, Causeway Media Partners, Mousse Partners and QueensBridge Venture Partners. The company has now raised at least $103 million to date, shows Crunchbase.

    Shyp, the two-year-old, San Francisco-based shipping service whose users can photograph items they want to ship, after which the service picks up the items, packs them, and delivers them, has raised roughly $50 million at a valuation of $250 million, reports TechCrunch. According to the outlet’s sources, Kleiner Perkins Caufield & Byers may be leading the round. To date, the company has raised $12.1 million, including from Homebrew, Winklevoss Capital, and SherpaVentures.

    Swiggy, an eight-month-old, Bangalore, India-based food ordering and delivery app, has reportedly raised $2 million in funding from Accel Partners and SAIF Partners.

    Upstart, a three-year-old, Palo Alto, Ca.-based lending platform that provides loans to individuals based on variety of less traditional signals, has tightened its relationship with Victory Park Capital, the Chicago-based asset management firm. Last summer, Victory Park announced it would invest $100 million in Upstart loans over a two-year period; this morning, the companies are announcing that Victory Park will increase its investment in Upstart loans to $500 million.

    VarageSale, a 2.5-year-old, Toronto, Ontario-based online marketplace that’s focused around local communities and competes with Craigslist, has raised $34 million in funding from Sequoia Capital and Lightspeed Venture Partners. Bloomberg has more here.

    Zebra Medical Vision, a year-old, Israel-based startup building a database of anonymous medical images, has raised $8 million in funding led by Khosla Ventures. Venture Capital Dispatch has more here.

    ZenPayroll, a three-year-old, San Francisco-based company whose cloud-based software system automates tax calculations and payroll payments for small and mid-size businesses, has raised $60 million in Series B funding led by Google Capital. Other participants in the round include Emergence Capital Partners, Ribbit Capital, General Catalyst Partners, Kleiner Perkins Caufield & Byers, and Google Ventures. The company has now raised $86.1 million altogether.

    Zenefits, the two-year-old, San Francisco-based HR and benefits software provider, is beginning conversations with investors about a new financing round that could value the company at more than $3 billion, reports The Information. The company raised its most recent round last summer — $66.5 million in Series B funding from Andreessen Horowitz and Institutional Venture Partners — at a $500 million pre-money valuation. (Zenefits founder and CEO Parker Conrad will be the first speaker at StrictlyVC’s event next month. Tickets are available here.)

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    New Fundings

    Freestyle Capital, a six-year-old, San Francisco-based early-stage venture firm, has closed its third fund with $57 million. The firm, founded by serial entrepreneurs and longtime business partners Josh Felser and Dave Samuel, have also named Jenny Lefcourt as their third partner, roughly a year after Lefcourt joined the firm as an investor. She previously cofounded WeddingChannel.com, acquired by TheKnot in 2006; the wedding photo company Bella Pictures, acquired by a St. Louis-based photography service called CPI; and an e-commerce company, Markkit. Freestyle says it plans to use the fund to invest in up to 14 companies a year. It has now raised $126 million altogether.

    Founder’s Co-op, a seven-year-old, Seattle-based seed-stage venture fund founded by longtime business partners Andy Sack and Chris DeVore, has raised a new, $20 million fund, up from its last, $8 million, fund closed in 2012. Investors include the Oregon Growth Board. Geekwire has more here.

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    IPOs

    Collegium Pharmaceutical, a 13-year-old, Canton, Ma.-based pain therapeutics company that has developed an opioid pain medication designed to deter abuse, has filed to go public — just one month after raising $50 million in funding. That last outside round was led by TPG Biotech. The company has raised $77.5 million altogether. According to its S-1, its biggest shareholders include Longitude Capital Partners, which owns 22.4 percent of the company; Skyline Venture Partners, which owns 20 percent; Frazier Healthcare, which owns 12.4; TPG, which owns 8.7 percent; Boston Millennia Partners, which owns 7.8 percent; and RA Capital Management, which owns 6.1 percent.

    Infraredx, a 17-year-old, Burlington, Ma.-based ultrasound diagnostic company that filed to go public last December and hoped to raise as much as $55 million in its offering, has withdrawn those plans, citing “unfavorable market conditions.”

    Virtu Financial, an electronic trading firm that’s partly owned by Silver Lake Partners, said it expects to raise up to $314 million in an IPO. It planned to go public roughly a year ago but postponed that attempt amid a furor over high-frequency trading fueled by Michael Lewis’s book Flash Boys. Reuters has more here.

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    Exits

    Buttercoin, a two-year-old, Palo Alto, Ca.-based bitcoin exchange startup, is shutting down, saying it was unable to raise follow-on funding owing to a “dip in bitcoin interest among Silicon Valley investors.” TechCrunch has the story here. Buttercoin had raised at least $1.3 million, including from Y Combinator, Google Ventures, Floodgate, Initialized Capital, and Rothenberg Ventures.

    OnLive, a 7.5-year-old, Mountain View, Ca.-based streaming games company that was long troubled, is shutting down its service and selling its patents to Sony. Ars Technica has the story here. OnLive, founded by serial entrepreneur Steve Perlman, had raised at least $56.5 million from investors over the years, shows Crunchbase. Backers included HTC CorpTime Warner, Autodesk, Maverick Capital, and Lauder Partners.

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    People

    Meet Jay Edelson, the class-action lawyer who Silicon Valley loves to hate.

    Lazlo Block, the head of people operations at Google, on why 399 out of every 400 people who apply for jobs at the company do not make the cut.

    According to the SEC, longtime friends Ifty Ahmed and Amit Kanodia illegally profited from insider trading on news of a proposed acquisition of Cooper Tire and Rubber Company by Apollo Tyres. Ahmed is a general partner at Oak Investment Partners, where he has reportedly just been placed on leave of absence. Kanodia is a managing partner at Lincoln Ventures.

    “You have this needle that you have to thread, and sometimes it feels like there’s no hole in the needle,” says Reddit‘s interim CEO Ellen Pao in her first interview since the conclusion of her case against Kleiner Perkins Caufield & Byers. “From what I’ve heard from women, they do feel like there’s no way to win.”

    Jim Tananbaum, the venture capitalist whom Bloomberg dubbed “the Google bus of Burning Man,” has resigned from the festival’s board of directors. More here.

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    Job Listings

    Madrona Venture Group, the Seattle-based early stage VC firm, is looking to add an associate to its team. Email resumes to david (at) madrona (dot) com.

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    Data

    The mobile ad market is set to surpass $100 billion next year, according toeMarketer.

    Gulp. According to new data out from Thomson Reuters and the National Venture Capital Association, just 17 venture-backed IPOs raised $1.4 billion during the first quarter of this year, a 54 percent decrease, by number of offerings, from the first quarter of 2014 and a 58 percent drop in terms of dollars. Only two of those offerings were information technology companies, including the biggest IPO of the quarter, Box, the cloud platform services company. Two others were non-tech related. The rest were life sciences companies.

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    Essential Reads

    Remember that Pinterest-specific fund that Andreessen Horowitz recently raised? It’s one of many one-off funds that VCs are forming to take direct stakes in single startups. The WSJ has more here.

    America remains deeply ambivalent about using new medical treatments to live radically longer lives. That’s not stopping tech titans from chasing them anyway.

    Meerkat, the live broadcasting app, isn’t alone is seeing its popularity plunge. The explosive usage of its Twitter-owned competitor, Periscope, is petering out, too.

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    Detours

    An office transformed by Post-It notes.

    The salary required to be “middle class” in each state.

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    Retail Therapy

    McLaren’s latest creation.

  • Hummer Winblad Reboots

    Screen Shot 2015-04-06 at 9.25.39 AMLike many venture firms founded before the last tech boom, the San Francisco-based outfit Hummer Winblad Venture Partners seemed, for a time, to be staring death in the face owing to the market’s implosion, uneven returns, and a drawn-out lawsuit with two major record labels over its 2000 investment in the now defunct file-swapping service Napster.

    The 26-year-old firm made it through the to the other side, though, and today, it’s in seemingly good shape, newly rebranding itself as HWVP and, this morning, launching a snazzy new site to mark the occasion.

    The changes are more than cosmetic. HWVP is, like other firms of its vintage, a lot smaller than it used to be. The firm once employed a deep bench of managing directors and associates. Now it employs three managing directors: Mitchell Kertzman, a serial CEO (Liberate Technologies, Sybase, Powersoft Corp.) who joined the firm 12 years ago; Lars Leckie, who joined the firm a decade ago and was promoted to managing director in 2011; and Steven Kishi, who has spent the last 20 years bouncing between Hummer Winblad and various operating roles. (Most recently, Kishi was VP of product management at the cloud services company Altiscale.)

    Even firm cofounders John Hummer and Ann Winblad are no longer “managing directors” but are listed at the new site instead as “founding partners.”

    The amount of capital that HWVP has to invest is far less, too. The firm closed its sixth fund with $201 million in late 2007, down from the $424 million it had raised for its fifth fund in 2000.

    Leckie suggests the firm will look to close its next fund with between $105 million and $150 million. (Leckie declines to discuss HWVP’s specific fundraising plans, but he offers that he believes that “small, focused funds do the best by their investors,” saying he thinks that “$35 million to $50 million” per partner is ideal.)

    The firm’s prospects would seem pretty promising. Though forced to retrench, HWVP has never veered from its core thesis of investing in enterprise software companies. And while it missed the consumer wave as a result, its bets look pretty prescient right now. For example, the firm was the first investor in the 11-year-old, SaaS-based sales platform InsideSales, which last month raised $60 million at a valuation north of $1 billion. (The company has raised $200 million altogether.)

    That bet alone will “return our [sixth] fund,” says Leckie, who says that HWVP owns “two times what everyone else owns” of the company.

    HWVP is also among the earliest investors in Five9, MuleSoft, and Birst, among others. Five9, a San Ramon, Ca.-based call center company, went public last year. (Its market cap is $272 million, as of this writing.) MuleSoft, the San Francisco-based integration platform for connecting enterprise applications in the cloud, has raised well over $100 million from investors, closing its last round of $50 million last year at a post-money valuation of $800 million. Meanwhile, Birst, a San Francisco-based business intelligence and analytics business, just raised $65 million in Series F funding last month, bringing its total funding to $156 million. (Leckie declined to discuss its valuation.)

    Of course, mark-ups are one thing. Actual exits are another. It remains to be seen whether HWVP will see the profits it’s expecting, particularly given the widening gap between the number of richly valued late-stage, still-private companies and those going public.

    Perhaps unsurprisingly, Leckie is highly optimistic about the firm’s odds. “We’re having a kick ass first quarter,” he tells StrictlyVC. “Valuations will fall where they fall. But it is a very good time to be quietly investing in enterprise and SaaS infrastructure.”

    Luckily for HWVP, it’s been doing it for years.

  • StrictlyVC: April 2, 2015

    Hi, happy Thursday!

    Two quick programming items. A very persuasive seven-year-old dragged us off to an amusement park for all of yesterday. (We do not have a feature story is what we are saying.) Stay tuned; we have great stuff coming next week.

    Also, note that we aren’t publishing tomorrow for Good Friday and Passover.

    Hope you have a wonderful holiday weekend, everyone!

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    Top News in the A.M.

    The EU is reportedly laying the groundwork for antitrust charges against Google.

    Stanford just expanded its family aid packages, making tuition free to students whose families earn less than $125,000 per year.

    Airbnb is now available in Cuba.

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    New Fundings

    Bica Studios, a two-year-old, Lisbon, Portugal-based gaming studio, has raised an undisclosed amount of seed funding led by Portugal VenturesMore here.

    CodeFights, a year-old, San Francisco-based startup that turns testing one’s programming skills into a game, has raised $2.4 million in seed funding from a long list of investors, including Felicis Ventures, Sutter Hill Ventures, and Quora CEO Adam D’Angelo. TechCrunch has more here.

    Dianping, a 12-year-old, Shanghai, China-based restaurant review and group-buying service that’s often likened to both Yelp and Groupon, has officially closed on $850 million from investors, including smartphone maker Xiaomi, at a $4 billion valuation. (China-based press outlets had reported on the round earlier in the month, without noting Xiaomi’s involvement or the company’s valuation.) The company has now raised $1 billion altogether, including from FountainVest Partners, Temasek Holdings, Qiming Ventures, and Lightspeed Venture Partners, shows Crunchbase. The WSJ has more here.

    Duriana, a two-year-old, Singapore-based mobile marketplace that allows users to buy and sell items, has raised $2.5 million in Series A funding led by Beenos Asia, with participation from Alps Ventures. The company has now raised $3.3 million to date. DealStreetAsia has the story here.

    Ello, the two-year-old, Burlington, Vt.-based ad-free social network, has raised $5 million in funding led by its earlier backers Foundry GroupTechStars, and FreshTracks Capital. The company has now raised $11 million altogether. (If you’re curious about its money-making strategy, it says it’s stealing a page from the gaming industry and developing a freemium model that will allow users to sign in for multiple accounts, invert the site’s color scheme, and so on, for nominal dollar amounts.) The Observer has the story.

    Fyusion, a two-year-old, San Francisco-based developer of a new mobile photo app platform, has raised $13 million in Series B funding led by New Enterprise Associates and The University of Tokyo Edge Capital, with participation from angel investors. The company has now raised roughly $16.5 million altogether, shows Crunchbase. More here.

    Honor, an eight-month-old, San Francisco-based company with big ambitions to help the elderly to live independently longer — via screened health-care professionals, an appliance that acts as a reminder about appointments and more, and an app that makes it easier for remote family members to keep tabs on what’s happening — has raised $20 million in Series A funding led by Andreessen Horowitz. Other participants include Kapor Capital, Ron Johnson, Max Levchin, Max Ventilla, Senator Bob Kerrey, Jeremy Stoppelman, Andrew Conrad, Jessica Alba and Cash Warren. The company was founded by veteran co- founders, including Seth Sternberg (Meebo), Cameron Ring (Plaxo), and Sandy Jen (Meebo). Forbes has more here.

    Hudl, a nine-year-old, Lincoln, Ne.-based company whose platform and software provides video analysis and coaching tools for sports teams around the country, has raised $72.5 million in funding led by Accel Partners. Previously, the company had raised just $3 million in seed funding. TechCrunch has much more here.

    HyTrust, a seven-year-old, Mountain View, Ca.-based cloud security automation company, just raised $25 million in Series D funding led by Accelerate-IT Ventures, with participation from Vanedge Capital, Trident Capital, Epic Ventures, Granite Ventures, Cisco, Fortinet, Intel and VMware. The company also secured up to $8 million in venture debt and credit facilities. HyTrust has raised $84.5 million in equity to date, shows Crunchbase.

    Ola, the four-year-old, Bangalore, India-based taxi hailing service, is reportedly about to announce $400 million in financing led by DST Global, with participation from Accel Partners and the New York-based hedge fund Falcon Edge. Times of India has more here. Ola’s earlier backers, including Tiger Global Management, Matrix Partners, and Steadview Capital, are also reportedly joining the round.

    Oscar, the two-year-old, New York-based health insurance startup, is in talks to raise a new round of venture funding at a valuation of “significantly more than $1 billion,” according to Bloomberg. Oscar has already raised $150 million from investors, including Khosla Ventures, General Catalyst Partners, Founders Fund and Thrive Capital (whose cofounder, Joshua Kushner, also cofounded Oscar).

    Quartet Health, a year-old, New York-based health IT company whose platform allows medical and behavioral health clinicians to work collaboratively on shared treatment goals, has raised $7 million in new funding led by Oak HC/FT, with participation from Shulman VenturesFidelity Biosciences, Polaris Partners and numerous individual investors.

    ReadyPulse, a 4.5-year-old, San Carlos, Ca.-based company that helps digital marketers find so-called brand ambassadors across social media, has raised $5 million in Series A funding led by Walden Venture Capital and Rally Ventures. The company has now raised $7 million altogether, including from Divergent Ventures.

    Reformation, a 5.5-year-old, L.A.-based eco-friendly clothing company, has raised $12 million in Series A funding led by Stripes Group and 14W, with numerous individuals participating, including fashion model Karlie Kloss.

    SupportPay, a four-year-old, Santa Monica, Ca.-based child-support payment app, has raised $1.5 million in seed funding from a New York-based venture firm called T5 Capital Partners, with participation from earlier backers. The company has raised $2.8 million to date.

    Tapingo, a three-year-old, San Francisco-based mobile ordering technology for campuses and campus dining, has raised $22 million in Series B funding led by Qualcomm Ventures, with participation from DCM Ventures, Kinzon Capital, and earlier backers Khosla Ventures and Carmel Ventures. The company has now raised $36 million altogether.

    Via, a three-year-old, New York-based startup that offers SUV rides to groups of passengers with compatible destinations (in New York but soon to be elsewhere), has raised $27 million in new funding led by Pitango Venture Capital, with participation from Hearst Ventures, Ervington Investments, and 83North. Via has now raised $37 million altogether. VentureBeat has more here.

    ZappRx, a three-year-old, Cambridge, Ma.-based company that automates the prescription refilling process, has raised $5.6 million in Series A funding from return investors Atlas Venture and SR One.

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    New Funds

    Correlation Ventures, the four-year-old, San Diego-based venture firm that says it uses predictive analytics in its investment decisions, is raising a second fund, shows an SEC filing that states the first sale has yet to occur. The firm is targeting $170 million. Correlation closed its debut fund with $165 million in early 2012.

    Index Ventures, the 19-year-old venture firm, with offices in Geneva, London, and San Francisco, has just raised $706 million for a new growth fund, according to an SEC filing. Last year Index, which focuses on both tech and life sciences companies, closed a $542 million fund for early-stage startups. VentureBeat has more here.

    Lux Capital, the 15-year-old venture firm, with offices in New York and Menlo Park, Ca. , has closed its fourth fund with $350 million to invest in early-stage science and technology ventures. The fund was meaningfully oversubscribed from the firm’s initial target of $245 million, the firm says. Dealbook has much more here.

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    IPOs

    GoDaddy’s IPO by the numbers.

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    Exits

    Blekko, an eight-year-old, Redwood Shores, Ca.-based web search engine and social news platform, has been acquired by IBM for undisclosed terms. The company had raised roughly $60 million from investors, including SoftTech VC, Baseline Ventures, PivotNorth Capital, U.S. Venture Partners, CMEA Capital, and Yandex. Silicon Angle has more here.

    Chango, a seven-year-old, Toronto-based programmatic ad platform, has been acquired by the publicly traded, L.A.-based ad company Rubicon Project for a reported $122 million. According to Crunchbase, Chango had raised $18.6 million from investors, including iNovia Capital, Rho Canada, Metamorphic Ventures, Extreme Venture Partners, and Mantella Venture Partners. More here.

    Embrane, a five-year-old, Santa Clara, Ca.-based startup with an architecture for virtualized network appliances, has been acquired for undisclosed terms by Cisco, which was an investor in the company. Altogether, says Crunchbase, Embrane had raised $32 million, including from Lightspeed Venture Partners, New Enterprise Associates, and Presidio Ventures.

    Two of the many investors in Flipkart, one of India’s largest e-commerce companies, have reportedly cashed out of their investments. Helion Venture Partners has sold its entire stake to secondary buyers; meanwhile IDG Ventures has sold part of its holdings, says DealCurry.More here.

    Lacoon Mobile Security, a four-year-old, San Francisco-based mobile threat management platform, has been acquired by Check Point Software Technologies for undisclosed terms that earlier reports pegged at $80 million. Lacoon had raised $8 million from Index Ventures and numerous individual investors.

    Moment.me, a three-year-old, New York-based company that recently pivoted to build mobile websites for events, has been acquired by publicly traded site builder Wix for $10 million, reports TechCrunch. According to Crunchbase, Moment.me had raised $3.2 million from Blumberg Capital and SingTel Innov8.

    Refresh.io, a startup and iOS app of the same name that surfaces insights about people in your networks right before you meet them, has been acquired by LinkedIn for undisclosed terms. (TechCrunch is calling it a talent and technology acquisition.) Crunchbase shows the company had raised $10 million from investors, including Haystack, Foundation Capital, CRV, and Redpoint Ventures.

    TenXer, a 3.5-year-old, San Francisco-based startup whose productivity tool helps programmers analyze their performance, has been acquired by Twitter for undisclosed terms. The company had raised $4.7 million from investors, including Webb Investment Network, Khosla Ventures, Radar Partners, and True Ventures. VentureBeat has more here.

    Toopher, a 3.5-year-old, Austin, Tx.-based two-factor authentication startup, has been acquired by Salesforce for undisclosed terms. The company had raised roughly $3 million, shows Crunchbase. Its venture backers include Alsop Louie Partners and Corsa Ventures. VentureBeat has the story here.

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    People

    A growing list of Silicon Valley CEOs, VCs and other leaders have signed a statement demanding that states considering so-called religious freedom legislation also pass laws banning discrimination against people who are gay, lesbian, bisexual or transgender. In an interview with Recode, entrepreneur Max Levchin, who is leading the effort, hints that states that don’t act may have more to worry about than a statement. “I am asking all CEOs to evaluate their relationships and investments in states that do not specifically protect LGBT people from discrimination.”

    Motionloft founder Jon Mills — who was accused of defrauding investors and spending their money for his lavish personal use — has been found guilty on two counts of wire fraud, and ordered to serve 24 months in jail, reports TechCrunch. Mills was also ordered to cough up $6,000 in fines and to pay restitution to his victims in the amount of $572,039. More here.

    Nebula, a four-year-old, Mountain View, Ca.-based company that promised its customers the ability to easily build a massive private computing cloud from hundreds or thousands of inexpensive computers, has gone out of business. Nebula had raised nearly $40 million from investors, including Webb Investment Network, Comcast VenturesKleiner Perkins Caufield & Byers, and Highland Capital Partners. Business Insider has the story here.

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    Happenings

    StrictlyVC’s next INSIDER event is suddenly just six weeks away. Information is here. Tickets are here. Space is limited. Much thanks to our terrific sponsors, Amazon Web Services, Personal Capital, and Galvanize for helping us put together what’s going to be a great night.

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    Essential Reads

    JD.com, among China’s largest e-commerce companies, is branching out into crowdfunding for startups. The site isn’t the first startup crowdfunding site in China, but with its resources, it claims to already be the largest.

    The inside story of the Apple Watch: the people who made it, why it’s important, and just how much Apple has riding on it.

    Meerkat, the live broadcasting startup, better have another trick up its sleeve. A week after snatching up $14 million in funding, the company’s popularity is suddenly plunging.

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    Detours

    The 19 hottest property markets in the world.

    Norwegians, soaring through the air at 60 miles per hour on their skis.

    Entertainer Chris Rock is taking a selfie every time he gets pulled over by police.

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    Retail Therapy

    This chainless, folding, electric bike is cool. Maybe not quite as cool as its promotional video suggests(!), but pretty cool.

  • StrictlyVC: April 1, 2015

    Happy Wednesday, dear readers! We were planning an April Fools’ prank, but we’ve run out of time and, speaking frankly, the story we were writing was not terribly hilarious. Put another way: no column today.:)

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    Top New in the A.M.

    President Obama just signed an executive order establishing the first sanctions program to impose penalties on individuals overseas who engage in destructive attacks or commercial espionage in cyberspace. More here.

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    New Fundings

    17zuoye, an eight-year-old, Shanghai, China-based online learning platform for parents, teachers, and students K-12, has raised $100 million in Series D financing led by H Capital, according to China Money Network. Temasek Holdings, DST Global, and Shunwei Capital also participated in the round. According to Crunchbase, the company has now raised at least $135 million altogether.

    Advanced Practice Strategies, a 20-year-old, Boston-based e-learning and talent management platform provider for clinicians, has raised $12 million in Series C funding led by River Cities Capital Funds, with participation from Ascension Ventures.

    AppsDaily, a seven-year-old, Mumbai, India-based mobile app development and distribution company, has raised $16 million in Series C funding led by Zodius Technology Fund, with participation from earlier backers ru-Net, Kalaari Capital and Qualcomm Ventures. The company had previously raised $6 million, according to the outlet e27.

    aTyr Pharma, a 10-year-old, San Diego-based biotherapeutics company that discovers and develops protein biologics for human therapeutics, has raised $76 million in Series E funding led by Sofinnova Ventures and an undisclosed large institutional investor in the biotechnology industry. Other new investors taking part in the round include funds and accounts advised by T. Rowe Price Associates, Federated Investors, Deerfield, Rock Springs Capital Management, EcoR1 Capital, Sphera Global Healthcare, and two additional undisclosed institutional investors.

    Beequick, a ten-month-old, Beijing, China-based startup that currently provides one-hour delivery of fresh produce and other products from community convenience stores, has raised $20 million in Series B funding led by Hillhouse Capital, according to China Money Network. Earlier backer Sequoia Capital also participated in the round, which reportedly values the young company at $200 million. The company has raised $40 million to date.

    CafeX, a two-year-old, New York-based company whose technology helps enable contextual real-time communication experiences within enterprise applications, has raised $21 million in Series B funding from Intel Capital and a subsidiary of USAA, with return backing by Illuminate Ventures and other angel investors. The company has now raised at least $31.5 million, shows Crunchbase.

    Didi Dache and Kuaidi Dache, the three-year-old, China-based taxi-hailing companies that merged in February (though they remain separately operated), are selling $600 million worth of common shares to an investor consortium led by Coatue Management in a transaction that values the combined companies at $8.75 billion. The WSJ has more here. Coatue is reportedly putting in about $250 million, while the investment firm Farallon Capital Management invests roughly another $75 million. Unnamed institutional and individual investors are acquiring the rest of the stakes. The deal is interesting for numerous reasons, not least because it represents Coatue’s third China-based deal in the last month. The hedge fund’s other recent bets include the online travel information and service platform Mafengwo and the online used car auction company Youxinpai. (Coatue hired Tony Zhang from DCM Ventures last year to gain a foothold in China, notes the WSJ.)

    Genshuixue, a year-old, China-based online education startup, has raised $50 million in Series A funding at valuation of $250 million led by Hillhouse Capital. Tech in Asia has more here.

    Instabrand, a two-year-old, L.A.-based start-up that helps strike deals between advertisers and individuals with large social media followings, has raised $2.5 million in funding led by TI Capital, which is funded by a Santa Monica-based family. The L.A. Times has the story here.

    Noom, a 7.5-year-old, New York-based company whose smartphone apps promote healthy living, has raised $16.2 million in Series B funding led byInterVest, a Seoul, Korea-based venture capital firm. Other investors in the round include LB Investment; Hanmi IT, a subsidiary company of Hanmi Pharmaceutical Co.; RRE Ventures; TransLink Capital; andQualcomm Ventures. The company has raised at least $24 million to date, shows Crunchbase.

    PeerNova, a year-old, San Jose, Ca.-based blockchain technology specialist, has raised $5 million in funding from the retail company Overstock as part of its second tranche of Series A financing. Formed through a merger of the cloud mining contract company CloudHashing and ASIC hardware designer HighBitcoin, PeerNova raised $8.6 million in funding in December led by Mosiak Partners, with participation from angel investor Steve Case, FireEye founder Ashar Aziz, veteran investor Pierre Lamond, Crypto Currency Partners and others. Coindesk has the story here.

    Signal, a year-old, London-based company that specializes in media monitoring and market intelligence, has raised $1.8 million in seed funding led by Frontline Ventures, with participation from Samos Investments,Reed Ventures and individual investors. The Irish Times has more here.

    TripHobo, a three-year-old, Pune, India-based repository of user-generated travel itineraries, has raised $3 million in Series B funding led by Mayfield, with participation from earlier investor Kalaari Capital. The company has now raised roughly $5.5 million altogether, shows Crunchbase.

    Yuantiku, a three-year-old, Beijing-based online education platform, has raised $60 million in Series D funding led by CMC Capital Partners and New Horizon Capital, with participation from Matrix Partners China and IDG Capital Partners. The company has raised $84.2 million to date, shows Crunchbase. China Money Network has more here.

    Zhan.com, a four-year-old, Shanghai, China-based online education firm (yes, another China-based online education deal), has raised $29 million in Series B financing led by GGV Capital and Shunwei Capital.

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    New Funds

    Chrysalix, the 14-year-old, Vancouver, B.C.-based venture firm, is approaching a first close on Chrysalix Energy LP IV, reports peHUB. The firm hopes to raise between $150 million and $250 million for the fund.

    Comcast, the 52-year-old, Philadelphia-headquartered broadcasting and cable giant, is launching a new, growth-stage investment group to be headed by Comcast‘s CFO, Michael Angelakis, who will leave his current post to lead it. Angelakis’s team will reportedly have up to $4.1 billion to invest. It isn’t yet clear how closely it will work with Comcast Ventures, the company’s venture capital arm. More here.

    New York Governor Andrew Cuomo has struck a deal with lawmakers to include a $100 million venture capital fund in the state budget, according to Bloomberg. The fund will be used to support startups engaged in biotechnology and advanced materials.

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    IPOs

    Etsy, the 10-year-old, Brooklyn-based crafts marketplace, thinks it’s worth $1.78 billion. After filing its S1 in early March, the company announced yesterday that it would launch its IPO roadshow today, offering 16.67 million shares at an initial offering price of between $14 and $16 per share. Business Insider has the story here.

    GoDaddy, the 18-year-old, Scottsdale, Az.-based online service that helps people and businesses set up web sites, just debuted on the New York Stock Exchange this morning, after raising $440 million in its initial public offering. GoDaddy wound up pricing its shares at $20, above an earlier targeted range of $17 to $19 a share. At its IPO price, the company has a market value of more than $3 billion (though as of this writing, the stock is trading at $26). Stay tuned!

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    Exits

    Trada, a seven-year-old, Boulder, Co.based company that crowdsourced search-engine ad purchasing, has shut down its operations, saying it was unable to pay its creditors. The company reportedly employed nearly 100 people at one point. According to Crunchbase, Trada raised at least $19 million from investors, including Foundry Group and Google Ventures. Denver Business Journal has the story.

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    People

    CEOs who made their fortune before age 30.

    Fiksu, a 6.5-year-old, Boston-based mobile marketing technology company that last year said it had surpassed $100 million in annual revenue, has laid off about 10 percent of its workforce as part of a reorganization, and CFO Ken Goldman — brought aboard less than a year ago to help it prepare for a possible IPO — has left. BetaBoston has the story here.

    Roger McNamee, cofounder of Elevation Partners, told CNBC yesterday that the lack of women at the top of venture capital firms is “tragic.” One of the problems, McNamee offered, is that many people in engineering “his age” likely never interacted much with women in a professional setting. “You almost need a generational change to get past that fear of treating women as real people,” he said.

    Entrepreneur Sean Parker and investor Ron Conway are throwing their weight behind a new think tank in Washington that aims to craft centrist proposals to stimulate the economy and press Congress to enact them. It’s called the Economic Innovation Group and it launched yesterday after a reported 18 months of behind-the-scenes preparation. Politico has more here.

    Behind that Forbes cover story on investor Chris Sacca (video).

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    Data

    The folks at Silk analyzed Angel.co, CrunchBase and LinkedIn to build a nifty picture of the drone startup landscape, breaking the companies down by field, location, and fundraising.

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    Essential Reads

    The anonymous messaging app Yik Yak is testing a photo feature. The company says it will moderate and approve all photos, which sounds like a nightmare but would prevent photos that feature faces — or worse — to make it into users’ feeds.

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    Detours

    Cool pies.

    Pawculus Rift.

    The man who makes Hollywood’s smallest sounds.

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    Retail Therapy

    Now this manifesto, we can get behind.

     


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