• StrictlyVC: October 16, 2013

    110611_2084620_176987_thumbnailTop News in the A.M.

    An 11th hour Senate fiscal deal may be in the works! Woo-hoo!
    Apple gets its “spaceship” campus approved.
    ——

    Silicon Valley’s Most Famous Rug Dealer Forms a New Fund

    Pejman Nozad, Silicon Valley’s best-known rug dealer, has launched a new, low-flying venture firm.

    According to SEC filings, Nozad began raising $20 million for the new firm, Pejman Mar, a couple of months ago; his cofounder in the venture is serial entrepreneur Mar Hershenson.

    The new effort isn’t exactly top secret. Nozad has himself mentioned it in social media forums, and Hershenson’s LinkedIn profile reflects that she’s been co-running Pejman Mar since May. Still, Nozad isn’t discussing the effort publicly just yet. (When I’ve asked to meet about it over the last couple of months, he has politely declined each time, suggesting that we sit down at an unspecified future date.)

    The firm will be the second that Nozad has cofounded. In 1999, Nozad partnered with Saeed and Rahimi Amidi, whose rug-dealing father had given Nozad one of his first jobs as a salesman soon after the Iranian native arrived in San Francisco with $700 in his pocket. Silicon Valley lore has it that Nozad so successfully formed relationships with the rug gallery’s well-heeled clients — including Sequoia Capital’s Doug Leone – that the Amidis and Nozad formed Amidzad Partners to seize on those ties and the investment opportunities that come with them.

    Some VCs would kill for the track record that Nozad has established since, with past investments that include the mobile computing device company Danger, acquired by Microsoft in 2008; the online contest site Bix, which Yahoo purchased in 2006; and the online movie service Vudu, bought by Walmart in 2010.

    None were huge home runs for investors, but Forbes estimates that Nozad is “worth in the ballpark of $50 million,” suggesting those many base hits have added up. More, Amidzad is an early investor in other, flashy companies that have yet to exit, including Dropbox, which Nozad himself reportedly introduced to Sequoia. (Dropbox closed its most recent round of $250 million a year ago, at a $4 billion valuation.)

    It isn’t clear whether Nozad will continue to invest with Amidzad, on whose Website he remains featured. Rahimi Amidi didn’t respond to related questions.

    Either way, he seems to have a hard-charging partner in Hershenson, a Stanford engineering PhD who has cofounded numerous companies, including, most recently, the mobile commerce company Revel Touch. The 2.5-year-old startup, since renamed Tocata, has raised more than $10 million from investors, including Nozad. (Hershenson left the company in November 2012.)

    The duo has already placed numerous bets in recent months, including on a still-stealth startup called Solvvy; on Sensor Tower, whose tools help developers track and increase their app rankings within app stores; and on DoorDash, a food-delivery company whose funding was led by Khosla Ventures and Charles River Ventures.

    The question now is whether investors will be as charmed with Nozad as the many industry friends he has made over the years. At least one VC who has co-invested alongside him thinks they will. Nozad’s credentials may not look like everyone else’s, the investor told me, but it’s all about track records. And “Pejman,” he said, “has a good reputation.”

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    New Fundings

    1366 Technologies, a Bedford, Mass.-based maker of silicon solar cells, has raised $15 million in Series C funding led by Tokuyama Corp. Previous investors North Bridge Venture PartnersPolaris Venture PartnersVantagePoint Capital Partners and Energy Technology Ventures also participated in the round. The company has raised roughly $64 million to date.

    7signal Solutions, a year-old Akron, Ohio-based company that aims to make wireless LAN networks work more reliably, has raised $4 million in funding from Allos Ventures and Mutual Capital Partners FundsNorth Coast Angel Fund, which helped provide 7signal’s $250,000 in seed funding, also participated in the new round.

    CounterTack, a nine-year-old, Waltham, Mass.-based security software firm, has $12 million in Series B funding from investors including Goldman Sachs and existing investor Fairhaven Capital. The company has raised $21.5 million to date.

    EcoFactor, a seven-year-old, Redwood City, Calif.-based company whose software is designed to reduce customers’ home energy consumption, has raised $10 million in Series B funding led by power company NRG Energy, with existing investors Claremont Creek VenturesRockPort Capital Partners, and Aster Capital participating in the funding. To date, EcoFactor has raised $23.9 million. GigaOm has a good overview of the company here.

    Immatics, an eight-year-old, Germany-based biopharmaceutical company that focuses on the development of new immunotherapeutic substances for cancer therapy, has raised $43.7 million in new funding from a syndicate that includes Wellington Partners and biotech billionaire Dietmar Hopp. FierceBiotech has more here.

    Logi Analytics, a 13-year-old, McLean, Va.-based company that makes Web reporting and data visualization software, has raised $27.5 million from new investor LLR Partners, a private equity firm in Philadelphia that focuses on business intelligence companies. Logi Analytics has now raised about $45 million altogether, including from Updata PartnersSummit Partners, and Grotech Ventures.

    mParticle, a new mobile data platform founded by former Yahoo ad executive Michael Katz, has raised $3 million in seed funding led by Bowery Capital, with participating from Google Ventures and Greylock Partners. The company is based in New York.

    Refinery29, the nine-year-old, New York-based fashion and lifestyle site, has raised $20 million in Series C funding from growth equity firm Stripes Group, bringing total funding since inception to $30.4 million. The company’s earlier investors include FloodgateLead Edge CapitalFirst Round CapitalLerer Ventures and Hearst Corporation.

    Sofie Biosciences, a Culver City, Calif., company that makes molecular imaging probes and devices, has raised $5 million in Series A funding led by Tata Industries. Existing investors MRM Capital and the Cycad Group also participated in the funding. The company had closed on a $2 million seed round in 2010.

    StarMobile, an 18-month-old, Atlanta-based company developed at the Georgia Institute of Technology, has raised $2.5 million in seed funding led by U.S. Venture Partners. Other participants included GRA Venture Fund and Atlanta Technology Angels. The company’s software aims to extend enterprise applications to users on any mobile device.

    Thinking Phone Networks, a seven-year-old, Cambridge, Mass., communications services provider, has raised $10 million in Series C follow-on funding from previous investors Bessemer Venture Partners and Advanced Technology Ventures. The company has raised about $30 million to date.

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    New Funds

    500 Startups, the Mountain View, Calif.-based investment firm, is in the market again, according to a new SEC filing, which shows 500 Startups III is targeting $100 million. Four investing partners are listed on the new filing: Dave McClureChristine TsaiGeorge Kellerman, and Christen O’Brien. (TechCrunch has previously reported that the 30-person firm has empowered 10 employees to make investments.) The target is considerably higher the $44 million that that the firm closed on in July. As reported at the time, that second fund was nearly double the size of the firm’s first fund, but it fell short of its $50 million target.

    CommonAngels, a well-known startup investing group of around 50 Boston-area angel investors, is looking to raise a $35 million new pooled fund, according to an SEC filing. The group has already collected $11.5 million, says the filing, which lists the group’s managing directors, James Geshwiler and Maia Heymann.

    —–

    Exits

    Media Temple, a 15-year-old, L.A.-based Web hosting services company that largely serves professional developers and designers, has been acquired by the Web hosting giant GoDaddyreports VentureBeat. Terms of the deal were not disclosed, but Media Temple will continue to operate independently, says GoDaddy CEO Blake Irving. The acquisition marks GoDaddy’s sixth in little more than a year.

    Optimal, a five-year-old, Palo Alto-based social media advertising and analytics platform is being bought by the social media marketing company Brand Networks for $35 million in cash and stock. Optimal had raised just more than $5 million, including from Neu Venture Capital, the Social Internet Fund and a long line of individuals.

    —–

    IPOs

    Oxford Immunotec, a 13-year-old, U.K.-based medical diagnostics company, has filed to go public. It hasn’t yet listed a price range but it’s looking to raise $86 million. The company’s principal shareholders are Clarus Lifesciences, which owns 24.3 percent of the company; New Leaf Ventures, which owns 13 percent; Espirit Nominees Limited, which owns 10 percent; Imperial Innovations Businesses, which owns 7.9 percent; Invesco Asset Management, which owns 7.9 percent, and Wellington Partners, which owns 7.7 percent.

    Aerie Pharmaceuticals, an eight-year-old, Bedminster, N.J.company that’s developing treatments for glaucoma and other eye diseases, announced the terms for its IPO yesterday. The company plans to raise $68 million by offering 5.3 million shares at a price range of $12 to $14 for a valuation of about $265 million. Aerie is predominately owned by VCs. Alta Partners owns 27 percent of the company. TPG owns 27 percent. Clarus Lifesciences owns 21.7 percent. And Sofinnova Venture Partners owns 19.3 percent.

    —–

    Happenings

    Today is the last day of the O’Reilly Velocity conference in New York City.

    MobileCon 2013, a conference that is “100 percent business and mobile IT focused” kicks off today at the San Jose, Calif., convention center. You can learn more here.

    Job Listings

    The Ontario Teachers Pension Plan is looking for a senior investment associate to help evaluate new investments. The ideal candidate has  five to seven years of post-graduate experience in PE, banking or consulting. A graduate degree is also preferred.

    —–

    Essential Reads

    Path, the social network, appears to be struggling. Valleywag reports that the San Francisco company laid off 20 percent of its staff yesterday and that it’s having trouble finding an investor to lead its next funding round.

    Here’s why it’s so hard to climb Amazon’s corporate ladder.

    Twitter will list on the NYSE as — what else — TWTR.

    —–

    Detour

    Glenn Greenwald, the reporter who broke the NSA story, has left the Guardian to start his own “very substantial new media outlet.” Reuters’ sources say his financial backer is Pierre Omidyar.

    Oddly, it was a Norman Mailer fan who later became his editor and, now, his authorized biographer.

    Training young gentleman in the mollification of bullies. (“First, attempt to broker a détente…over cucumber sandwiches.”)

    —–

    Retail Therapy

    Beard wash. It’s the least you can do if you’re planning to grow a long, smelly beard this winter.

    card case so soft you’ll regret throwing the last of your business cards into the fireplace last Christmas.

    ——-

    Please feel free to send us any and all story suggestions (anonymous or otherwise) by clicking hereIf you’re interested in advertising in our email newsletter, please click here. To sign up for the newsletter, visit strictlyvc.com.

     

  • Silicon Valley’s Most Famous Rug Dealer Forms a New Fund

    0320_pejman-nozad_390x2201Pejman Nozad, Silicon Valley’s best-known rug dealer, has launched a new, low-flying venture firm.

    According to SEC filings, Nozad began raising $20 million for the new firm, Pejman Mar, a couple of months ago; his cofounder in the venture is serial entrepreneur Mar Hershenson.

    The new effort isn’t exactly top secret. Nozad has himself mentioned it in social media forums, and Hershenson’s LinkedIn profile reflects that she’s been co-running Pejman Mar since May. Still, Nozad isn’t discussing the effort publicly just yet. (When I’ve asked to meet about it over the last couple of months, he has politely declined each time, suggesting that we sit down at an unspecified future date.)

    The firm will be the second that Nozad has cofounded. In 1999, Nozad partnered with Saeed and Rahimi Amidi, whose rug-dealing father had given Nozad one of his first jobs as a salesman soon after the Iranian native arrived in San Francisco with $700 in his pocket. Silicon Valley lore has it that Nozad so successfully formed relationships with the rug gallery’s well-heeled clients — including Sequoia Capital’s Doug Leone – that the Amidis and Nozad formed Amidzad Partners to seize on those ties and the investment opportunities that come with them.

    Some VCs would kill for the track record that Nozad has established since, with past investments that include the mobile computing device company Danger, acquired by Microsoft in 2008; the online contest site Bix, which Yahoo purchased in 2006; and the online movie service Vudu, bought by Walmart in 2010.

    None were huge home runs for investors, but Forbes estimates that Nozad is “worth in the ballpark of $50 million,” suggesting those many base hits have added up. More, Amidzad is an early investor in other, flashy companies that have yet to exit, including Dropbox, which Nozad himself reportedly introduced to Sequoia. (Dropbox closed its most recent round of $250 million a year ago, at a $4 billion valuation.)

    It isn’t clear whether Nozad will continue to invest with Amidzad, on whose Website he remains featured. Rahimi Amidi didn’t respond to related questions.

    Either way, he seems to have a hard-charging partner in Hershenson, a Stanford engineering PhD who has cofounded numerous companies, including, most recently, the mobile commerce company Revel Touch. The 2.5-year-old startup, since renamed Tocata, has raised more than $10 million from investors, including Nozad. (Hershenson left the company in November 2012.)

    The duo has already placed numerous bets in recent months, including on a still-stealth startup called Solvvy; on Sensor Tower, whose tools help developers track and increase their app rankings within app stores; and on DoorDash, a food-delivery company whose funding was led by Khosla Ventures and Charles River Ventures.

    The question now is whether investors will be as charmed with Nozad as the many industry friends he has made over the years. At least one VC who has co-invested alongside him thinks they will. Nozad’s credentials may not look like everyone else’s, the investor told me, but it’s all about track records. And “Pejman,” he said, “has a good reputation.”

    Photo courtesy of Forbes.

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  • Med-Tech in the Midwest: Are the Coasts Missing Out?

    223625v2-max-250x250As a Cleveland native, I often find myself reading about some advanced medical technology that’s bubbling out of Northeast Ohio. To learn more about what’s really happening in the Midwest, I recently caught up with Mike Stubler, the Pittsburgh-based managing director and the cofounder of Draper Triangle Ventures, who nicely answered my very broad questions.

    You focus on healthcare in the Midwest, right?

    About 25 to 40 percent of what we do is med-tech. The balance is generally information technology, enterprise and cloud computing. But we’ve had great success with med-tech companies and frankly, we can’t ignore them; we live in a very rich environment for it. The Cleveland Clinic is arguably one of the world’s most renowned research institutions and a pioneer in coronary care. Meanwhile, here in Pittsburgh, the University of Pittsburgh Medical Center is a great research institution.

    What’s changing in the industry? My understanding is that the focus used to be on licensing technology to big pharmaceutical companies, but now there are more development groups helping to commercialize these technologies.

    A lot of different efforts come into play now: Universities, government-backed venture development groups, other combined programs. Many more people are now focused on getting this research commercialized rather than just licensing the technology to somebody. [The Cleveland-based, early-stage support organization] JumpStart has probably made 60 or 70 investments at this point. Innovation Works [an equivalent program focused on Southwestern Pennsylvania’s startup ecosystem] has made dozens of investments to which we pay very close attention, to see what’s coming through.

    We’ve also seen more companies getting funded with super angel kinds of rounds. You didn’t see that five or six years ago.

    Do you have more or less venture competition than you did, say, five years ago?

    Well, you see some big coastal firms coming in, especially once you see a company gain some traction. Sequoia Capital just did a bio deal in Cincinnati last year. Drive Capital [newly cofounded by former Sequoia investors Mark Kvamme and Chris Olson, who are investing in Midwestern startups] has closed on $180 million of a $300 million target. I think when Mark Kwamme came from Silicon Valley, he was probably cynical but quickly saw the opportunities here.

    Unfortunately, the contraction that’s taking place throughout the industry is also taking place in the Midwest, so there are fewer firms. We’ve always been more collaborative than cutthroat, as in the Valley, where every one is fighting for the same great deal. But those that are here are really trying  to work together more so than ever.

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  • StrictlyVC: October 15, 2013

    110611_2084620_176987_imageHappy Tuesday! Apologies in advance for today’s shorter newsletter; preschools were closed yesterday for Columbus Day, so StrictlyVC spent much of the day playing “bears.”

    Remember, you can reach out to me any time at connie@strictlyvc.com. The sign-up for the newsletter is here.

    —–

    Top News in the A.M. 

    A Google Watch is reportedly coming soon.
    Apple hires yet another big wheel from the fashion industry: Burberry CEO Angela Ahrendts
    We’re all still waiting on a deal to reopen the government and raise the debt limit.
    —–

    Med-Tech in the Midwest: Are the Coasts Missing Out?

    As a Cleveland native, I often find myself reading about some advanced medical technology that’s bubbling out of Northeast Ohio. To learn more about what’s really happening in the Midwest, I recently caught up with Mike Stubler, the Pittsburgh-based managing director and the cofounder of Draper Triangle Ventures, who nicely answered my very broad questions.

    You focus on healthcare in the Midwest, right?

    About 25 to 40 percent of what we do is med-tech. The balance is generally information technology, enterprise and cloud computing. But we’ve had great success with med-tech companies and frankly, we can’t ignore them; we live in a very rich environment for it. The Cleveland Clinic is arguably one of the world’s most renowned research institutions and a pioneer in coronary care. Meanwhile, here in Pittsburgh, the University of Pittsburgh Medical Center is a great research institution.

    What’s changing in the industry? My understanding is that the focus used to be on licensing technology to big pharmaceutical companies, but now there are more development groups helping to commercialize these technologies.

    A lot of different efforts come into play now: Universities, government-backed venture development groups, other combined programs. Many more people are now focused on getting this research commercialized rather than just licensing the technology to somebody. [The Cleveland-based, early-stage support organization] JumpStart has probably made 60 or 70 investments at this point. Innovation Works [an equivalent program focused on Southwestern Pennsylvania’s startup ecosystem] has made dozens of investments to which we pay very close attention, to see what’s coming through.

    We’ve also seen more companies getting funded with super angel kinds of rounds. You didn’t see that five or six years ago.

    Do you have more or less venture competition than you did, say, five years ago?

    Well, you see some big coastal firms coming in, especially once you see a company gain some traction. Sequoia Capital just did a bio deal in Cincinnati last year. Drive Capital [newly cofounded by former Sequoia investors Mark Kvamme and Chris Olson, who are investing in Midwestern startups] has closed on $180 million of a $300 million target. I think when Mark Kwamme came from Silicon Valley, he was probably cynical but quickly saw the opportunities here.

    Unfortunately, the contraction that’s taking place throughout the industry is also taking place in the Midwest, so there are fewer firms. We’ve always been more collaborative than cutthroat, as in the Valley, where every one is fighting for the same great deal. But those that are here are really trying  to work together more so than ever.

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    New Fundings

    Centri Technology, a four-year-old, Seattle-based producer of mobile network management software, has raised $500,000 toward a $1.5 million financing round, according to an SEC filing. The company has previously raised $7.17 million, including from the Matthew Pritzker Company.

    Druva, a five-year-old, Sunnyvale, Calif.-based maker of data protection and sharing software, has raised a $25 million Series C investment from Sequoia CapitalNexus Venture Partners and Tenaya Capital. In fact, Sequoia has backed the company across its three rounds; Nexus participated in Druva’s Series B. One Druva’s earliest investors is Indian Angel Network. So far, the company has raised roughly $42 million.

    FlockTag, an Ann Arbor-based company that helps businesses set up and manage customer-loyalty programs through its website and smartphone app, has finished raising a financing round of $1.25 million, according to Crain’s Detroit Business. Investors in the round were not disclosed.

    Nginx, a company that makes Web server software and has offices in San Francisco and Moscow, has raised $10 million Series B round led by New Enterprise Associates. The round also included previous investors, including e.venturesRuna Capital, and MSD Capital. Individual investor Aaron Levie, CEO and founder of Box, was also included in the financing.

    SundaySky, a seven-year-old, New York-based company that creates video ads that are customized and updated for individual viewers, has raised $20 million in Series C funding led by Comcast Ventures. New investors Liberty Global Ventures and Vintage Investment Partners also participated in the round, alongside earlier investors Carmel VenturesGlobespan Capital Partners, and Norwest Venture Partners. The company has raised $40 million altogether.

    Supercell, the 3.5-year-old Finnish gaming giant, has traded a 51 percent ownership share for a whopping $1.53 billion from Japan’s SoftBank and games developer GungHo Online Entertainment in a move that makes Supercell a subsidiary of Softbank. Techcrunch notes that the deal represents a quadrupled valuation for 100-employee Supercell to over $3 billion in the last seven months, when it raised its last round of $130 million. Altogether, Supercell has now raised $1.8 billion, including from AtomicoIndex VenturesInstitutional Ventures Partners and earlier investors Accel PartnersLondon Venture PartnersInitial CapitalCerval Investments, and Lifeline Capital.

    Vensun Pharmaceuticals, a two-year-old, Yardley, Pa.-based company that’s working with partners to develop a range of generic prescription, has raised $10.7 million, according to an SEC filing, which states the company’s fundraising goal as $15.8 million. (H/T: Startup Report.)

    —–

    New Funds

    Fenox Venture Capital, a stage-agnostic venture firm with a global focus, has raised $20 million of the $60 million it hopes to raise for its third fund, reports VentureWire. The two-year-old, San Jose, Calif.-based firm has previously had a single corporate LP in each of its two previous funds: Fenox Global Group invested in its first fund and Inter Media Japan Corp., backed its second fund.

    Lemnos Labs, a two-year-old hardware incubator based in San Francisco, is targeting a $15 million second fund, reports VentureWire.

    Sovereign’s Capital, a Raleigh, North Carolina-based venture firm that makes investments in emerging markets in the IT, healthcare, and consumer goods and services industries, has raised $12 million toward its $30 million offering, according to an SEC filing. The 34-month-old firm has five partners; three live in or just outside of Jakarta, Indonesia.

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    Exits

    Nanostim, a six-year-old, Milipitas, Calif.-based company, is being acquired by the publicly traded medical device company St. Jude Medical, based in St. Paul, Minnesota. Nanostim had raised $19.5 million to develop a wireless pacemaker that’s roughly the size of an AAA battery, according to SEC filings. St. Jude is paying $123.5 million to Nanostim shareholders, and promising another $65 million in cash if numerous milestones are reached down the road. Nanostim’s 45 employees become part of St. Jude’s implantable electronic systems unit.

    —–

    People

    Richard Rosenblatt, Demand Media’s chairman and CEO, is leaving the online content company he co-founded, its board announced yesterday.

    —–

    Happenings

    Ad Age is hosting a digital conference in San Francisco at the Ritz Carlton today. Things kick off around 9 a.m.; you can check out the agenda here.

    The Verge‘s sustainability conference rolls into its second day at San Francisco’s Palace Hotel. You can view the various tracks here.

    It’s also day two of O’Reilly’s Velocity engineering conference in New York. (VC Fred Wilson will be speaking at the conference, though we’re not sure at what time.) Learn more here.

    And in New York today, GreenHomeNYC is hosting an event at the Marriott Marquis Hotel in Times Square that will feature talks on building, sustainability and resilience. More information is available here.

    —–

    Job Listings

    Boston-based dunnhumby Ventures (dhV) is looking for an associate to join its team. Requirements include two to four years of experience in VC, private equity, investment banking with strong references, and a strong academic record.

    Essential Reads

    How the .0001% made its money.

    Twitter is now allowing any of your followers to send you a direct message.

    Yesterday, we linked to the New Yorker’s new profile of Jack Dorsey, but some of you complained that it was too damn long, especially after poring over Nick Bilton’s account of Twitter last week. (We feel you.) Some good news: Business Insider penned a cheat sheet.

    —–

    Detour

    Valleywag republishes the deleted Web poetry of a much younger Jack Dorsey, leaving everyone who wrote their own crummy poetry in paper notebooks feeling very thankful.

    Oops. Academic researchers discover a drug in the mainstream sports supplement Craze that’s never been studied in humans.

    How a radical new teaching method could unleash a generation of geniuses.

    —–

    Retail Therapy

    This is really smart: a wearable tracking device for dogs that can help owners and, in some cases, their caregivers, know when something is amiss.

    Ralph Lauren’s favorite 22 cars of all time.

    Last week, we featured a gun that shoots rubberbands. That was kids’ stuff compared with this deliciously sinister crossbow that shoots marshmallows. Ideal for camping trips and torturing siblings.

    Please feel free to send us any and all story suggestions (anonymous or otherwise) by clicking hereIf you’re interested in advertising in our email newsletter, please click here. To sign up for the newsletter, visit strictlyvc.com.

  • StrictlyVC: October 14, 2013

    110611_2084620_176987_thumbnailTop News in the A.M. 

    Really, people? Senate leaders are still deadlocked over budget negotiations in Washington — and the debt ceiling deadline is just three days away.
    —–

    SilverRide Bets On Offline Social Networking, for the Older Set

    Last month, the California Public Utilities Commission (CPUC) unanimously approved new regulations condoning ride-sharing services like Lyft and Sidecar. But the new legal framework could also breathe new life into lesser-known companies such a SilverRide, a six-year-old company whose name may be its biggest liability.

    At first glance, SilverRide sounds like an Uber for seniors, but its focus actually extends well beyond transporting the elderly. “Transportation is 20 percent of what we do,” says founder Jeff Maltz over coffee near SilverRide’s San Francisco offices. The company’s primary focus is “championing socialization for seniors.”

    It’s a big market. The senior population is growing steadily. By 2030, roughly 20 percent of Americans will be 65 years or older, up from 12.5 percent today.

    More important, scientists are increasingly discovering how important socialization is for the elderly. Just last month, University of Missouri researchers published findings around what happens when seniors stop driving. Among their conclusions was that seniors’ health and happiness meaningfully declined. Social connectedness also helps the immune system to work better, lowers stress hormones, and can delay memory loss, according to the Harvard School of Public Health.

    SilverRide offers seniors the chance to get outside the home and interact with others. For $85 an hour, the company’s drivers will escort the elderly to shop at the grocery store, to see a movie, or to pick up grandchildren for an ice cream outing, among other things. (Seventy percent of the time, drivers join riders in their activities.) In its six-year history, it has orchestrated 150,000 rides for more than 3,500 clients.

    The question is whether SilverRide – which is looking to raise $3 million to expand nationally –  is a big business.

    From all outward appearances, the numbers sound good.

    According to Maltz, SilverRide is profitable. Currently, the company pays $1000 to acquire a customer, and customers pay $450 a month on average for 24 months.

    SilverRide’s expenses also just went down significantly. Up until now, SilverRide has used its own fleet of cars. (The company has a staff of 22 full and part-time employees to pick up seniors and take them out.) But the most recent CPUC regulations change all that. Now, SilverRide’s employees can use their own, commercially insured cars, vastly expanding the potential size of the company’s transportation fleet.

    The biggest impediment to SilverRide’s growth may be convincing seniors to pay for something as intangible as an experience. SilverRide is a fairly expensive service, and there may not be a large population of elderly people who understand the service or can justify spending $450 a month on their social lives. (One-third of SilverRides’ customers call the company themselves. The other two thirds of its customers come by way of their children or other senior caregivers.) In fact, Maltz says his biggest competition is a customer’s friends and family.

    SilverRide could benefit from the marketing leverage and distribution that a larger health care partner could provide. Maltz says that the company has attracted the attention of “several large health care companies” that are “engaging in pilots” with SilverRide, but he declines to be more specific.

    In the meantime, VC-league help with advertising, as well as to build up an executive team, would also go a long way, suggests Maltz. “We have 400 people around the country interested in opening up regional SilverRides,” he says. “This company is ready to blast off and get out there.”

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    New Fundings

    Nomi, year-old New York City-based startup that tracks shoppers’ mobile phones to help retail shops gather data on their activity, is close to closing a $10 million in Series B funding, reports AllThingsD. The funding is reportedly being led by new investor Accel Partners. The company’s previous investors in the company’s $3 million Series A include First Round CapitalGreycroft PartnersForerunner Ventures and SV Angel.

    Trafi, a 10-month-old startup based in Vilnius, Lithuanian, has raised $500,000 in seed funding from Practica Capital. The company’s app helps visitors and locals navigate their way around cities — whether on buses, foot, in taxis, or on bicycles — based on existing routes and real-time traffic information information. More here.

    Xero, a seven-year-old online accounting software company based in Auckland, New Zealand, has raised a fresh $150 million in capital led by Valar Ventures and Matrix Partners. The company has now raised $244 million to date. Much more here.

    —–

    New Funds

    Mithril Capital Management, the year-old venture firm backed by PayPal co-founder Peter Thiel, has closed its debut fund at $540 million, according to VentureWire. A report in the New York Times last year said that Mithril was starting off with $402 million, and that it counted Thiel himself as its biggest investor. Thiel cofounded Mithril with Ajay Royan, a former managing director at Thiel’s hedge fund Clarium Capital. The firm, which aims to make bets in slightly later-stage companies, most recently invested in the mobile security software company Lookout, which raised $55 million in a round led by Deutsche Telekom.

    —–

    Exits

    Activision, the world’s largest video games publisher, has bought back $8.2 billion of its own shares from Vivendi, it announced on Friday. The move makes it an independent company once again, with Vivendi now a shareholder with a 12 percent stake.

    Antenna Software, a 14-year-old, Jersey City, N.J.-based mobile software company, was acquired Friday by Pegasystems, a business software company in Cambridge, Mass. Terms of the acquisition weren’t disclosed. Antenna had raised $2.53 million in debt funding last month, according to an SEC filing.

    Vet Therapeutics, a San Diego-based company focused on developing therapies for pet cancer and chronic conditions, has been acquired by a bigger player in the space, publicly traded biopharmaceutical company Aratana Therapeutics of Kansas City, Kan. Arantana is paying $30 million in cash, plus 625,000 shares of common stock, and an additional $3 million pay-out if Vet Therapeutics meets certain milestones by the end of next year. Vet Therapeutics investors include Innovis Investments.

    Bread, a two-year-old, San Francisco-based social marketing software startup, was acquired on Friday by Yahoo for an undisclosed amount. The company had raised $3.5 million in funding, including from Raptor Ventures and individual investors, such as Palantir Technologies cofounder Joe Lonsdale and Lady Gaga’s longtime manager Troy Carter.

    Hackermeter, a six-month-old, Portland, Ore.-based startup that aimed to match developers with hiring companies by using code challenge portfolios, has been acquired by Pinterest for an undisclosed amount, TechCrunch reported late Friday. The company had raised money from Y Combinator; it was in the process of trying to raise an additional $750,0000 in funding, reported Techcrunch, which says its service will be shut down and that its cofounders are joining Pinterest as engineers.

    Onavo, a three-year-old, Tel Aviv.-based company focused on mobile data analytics, has just been acquired by Facebook for approximately $150 million, reports Techcrunch. The company had raised $13 million from Sequoia CapitalMagma Venture PartnersHorizons Ventures, and Motorola Solutions Venture Group. Much more here.

    Waywire, a 16-month-old, New York-based video startup, is being acquired by Web video distributor Magnify, itself a 7-year-old company in New York. AllThingsD is reporting that the acquisition is likely a stock deal. Waywire had raised $1.75 million in seed funding from First Round Capital, Eric Schmidt’s Innovation Endeavors, and numerous high-profile individuals, including Oprah Winfrey.

    —–

    People

    Alberto Vilar was granted permission to attend a sold-out performance to the Metropolitan Opera on Saturday night. As readers may remember, Vilar founded Amerindo Investment Advisors, a San Francisco-based investment firm that was later accused of bilking investors out of $22 million. Vilar was sentenced to nine years in prison but he’s been out of bail, and living with an 11 p.m. curfew, since October of last year. Vilar’s lawyers had appealed to a Manhattan federal judge to let Vilar see Tchaikovsky’s “Eugen Onegin,” because Vilar was given free tickets by the conductor. The judge grudgingly gave him until 1:30 a.m.

    Arjun Gupta, the founder of Telesoft Partners, gets featured in a New York Times story about high-end matchmaking.

    —–

    Happenings

    If you’re in San Francisco, you might consider heading to a sustainability conference being hosted by The Verge. Happening at the Palace Hotel, the program kicks off at 1:30. You can check out the various tracks here.

    If you’re in New York, you might be interested in O’Reilly’s Velocity engineering conference, which promises attendees a “non-stop ride into the inner workings of Web ops and performance.” It’s a three-day conference; the last scheduled talk today is at 3:30 EST.

    BrainTech Israel, which is being hailed as Israel’s first international brain technology conference, also gets underway today in Tel Aviv. The conference runs two days. Here is the program.

    —–

    Job Listings

    ff Venture Capital, the early-stage venture capital fund, is looking for an associate “intern” to work full-time or at least 30 hours a week. The job is in midtown Manhattan and the firm is accepting applications now from current or recent graduate students.

    —–

    Essential Reads

    Jack Dorsey is doing what he can to prove that he’s more than a lucky man.

    Netflix is reportedly in talks with several US cable companies with the aim of making its video streaming app available on set-top boxes.

    —–

    Detour

    It isn’t just us. American animals are getting fatter, too.

    Smelling peanut butter from a distance may become the easiest, cheapest way to test for early Alzheimer’s.

    Alec Baldwin reveals his inner Charlie Rose during the debut of his new weekly talk show on MSNBC.

    ——

    Retail Therapy

    It’s a little hard to get excited about a sling chair, but this is one exciting sling chair.

    This craft beer is named Dave and costs $2,000. Unless Dave comes with a waterproof bag filled with $1,990 inside, we will pass.

    Please feel free to send us any and all story suggestions (anonymous or otherwise) by clicking hereIf you’re interested in advertising in our email newsletter, please click here. To sign up for the newsletter, visit strictlyvc.com.

  • SilverRide Bets On Offline Social Networking, for the Older Set

    silverride2Last month, the California Public Utilities Commission (CPUC) unanimously approved new regulations condoning ride-sharing services like Lyft and Sidecar. But the new legal framework could also breathe new life into lesser-known companies such a SilverRide, a six-year-old company whose name may be its biggest liability.

    At first glance, SilverRide sounds like an Uber for seniors, but its focus actually extends well beyond transporting the elderly. “Transportation is 20 percent of what we do,” says founder Jeff Maltz over coffee near SilverRide’s San Francisco offices. The company’s primary focus is “championing socialization for seniors.”

    It’s a big market. The senior population is growing steadily. By 2030, roughly 20 percent of Americans will be 65 years or older, up from 12.5 percent today.

    More important, scientists are increasingly discovering how important socialization is for the elderly. Just last month, University of Missouri researchers published findings around what happens when seniors stop driving. Among their conclusions was that seniors’ health and happiness meaningfully declined. Social connectedness also helps the immune system to work better, lowers stress hormones, and can delay memory loss, according to the Harvard School of Public Health.

    SilverRide offers seniors the chance to get outside the home and interact with others. For $85 an hour, the company’s drivers will escort the elderly to shop at the grocery store, to see a movie, or to pick up grandchildren for an ice cream outing, among other things. (Seventy percent of the time, drivers join riders in their activities.) In its six-year history, it has orchestrated 150,000 rides for more than 3,500 clients.

    The question is whether SilverRide – which is looking to raise $3 million to expand nationally – is a big business.

    From all outward appearances, the numbers sound good.

    According to Maltz, SilverRide is profitable. Currently, the company pays $1000 to acquire a customer, and customers pay $450 a month on average for 24 months.

    SilverRide’s expenses also just went down significantly. Up until now, SilverRide has used its own fleet of cars. (The company has a staff of 22 full and part-time employees to pick up seniors and take them out.) But the most recent CPUC regulations change all that. Now, SilverRide’s employees can use their own, commercially insured cars, vastly expanding the potential size of the company’s transportation fleet.

    The biggest impediment to SilverRide’s growth may be convincing seniors to pay for something as intangible as an experience. SilverRide is a fairly expensive service, and there may not be a large population of elderly people who understand the service or can justify spending $450 a month on their social lives. (One-third of SilverRides’ customers call the company themselves. The other two thirds of its customers come by way of their children or other senior caregivers.) In fact, Maltz says his biggest competition is a customer’s friends and family.

    SilverRide could benefit from the marketing leverage and distribution that a larger health care partner could provide. Maltz says that the company has attracted the attention of “several large health care companies” that are “engaging in pilots” with SilverRide, but he declines to be more specific.

    In the meantime, VC-league help with advertising, as well as to build up an executive team, would also go a long way, suggests Maltz. “We have 400 people around the country interested in opening up regional SilverRides,” he says. “This company is ready to blast off and get out there.”

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  • Does Jeff Bezos Need a Wingman?

    jeff_bezos_headshot1Yesterday, Bloomberg published an excerpt from a new book on Jeff Bezos that portrays the billionaire CEO of Amazon as a brilliant but ruthless dictator, one who treats workers “like expendable resources.”

    Michael Maccoby, a psychoanalyst who writes about business executives and teaches leadership at Oxford’s Saïd Business School, doesn’t view Bezos’s tendencies to mistreat employees as his biggest liability, though. Rather, it’s his lack of a strong number two.

    Amazon’s success has certainly been stunning. As the book points out, 20-year-old Amazon now has roughly $75 billion in annual revenue, a $140 billion market cap, and nearly 100,000 full-time and part-time employees, up 40 percent from last year. In late summer, Bezos personally acquired the Washington Post newspaper and some related properties for $250 million.

    Maccoby, who has worked closely with 40 CEOs over the years but has studied many more, thinks Bezos resembles “narcissistic visionaries” like Steve Jobs, Larry Ellison, and Bill Gates — with one major exception. All had a right-hand man; Bezos seemingly does not. And “that kind of personality needs to have strong partners who balance them and who complement their skills,” insists Maccoby.

    Maccoby points to Microsoft co-founder Bill Gates, who, in the company’s earlier days, could dream about the future while sidekick Steve Ballmer obsessed about Microsoft’s day-to-day operations. Maccoby also cites Steve Jobs’ relationships, first with his Apple cofounder Steve Wozniak and much later with Apple executives Tim Cook and Jony Ive. And there is Oracle’s Larry Ellison, who has brought in a string of executives over the years, only to chew them up and spit them out. (Ellison’s current number two is co-president Mark Hurd.)

    Asked whether Bezos might be an exception to the rule, Maccoby says, “So far, so good.” Still, he thinks Amazon’s decision to forego profits in favor of reinvestment are reminiscent of numerous endeavors throughout history, including those of, gulp, Napoleon.

    It’s not necessarily an unfavorable comparison. Both enjoyed success at a young age, both rejected the established wisdom, and both took on seemingly invincible enemies and defeated them. If historians are to be believed, Napoleon – like Bezos – also had unrivaled intellectual powers and an astonishing capacity to integrate information from different disciplines.

    Of course, as brilliant as Napoleon was, he eventually pushed his luck, ignoring repeated advice not to invade Russia. Says Maccoby: “Napoleon was very successful as long as he had Talleyrand as his foreign minister.” When he lost Talleyrand, he spun out of control.

    “The danger with someone like Bezos is the same danger that Napoleon had,” Maccoby adds. Without enough pushback, “you can go too far.”

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  • StrictlyVC: October 11, 2013

    110611_2084620_176987_image

    Top News in the A.M. 

    Andreessen Horowitz has decided to largely eschew Series A fundings, with Partner Scott Weiss telling the WSJ that, too often, consumer-facing startups are founded by “MBA types” and that helping companies that are already gaining traction will now be a much greater focus for the firm.

    Last week, we argued why, then how, venture capital firms could take advantage of new general solicitation rules. Today, ff Venture Capital becomes the first institutional venture fund to do just that. (See below in New Funds.)

    If Washington doesn’t get its act together today, by Monday, Washington D.C. will run out of cash to keep basic services functioning, like public libraries and trash collection.

    Does Jeff Bezos Need a Wingman?

    Yesterday, Bloomberg published an excerpt from a new book on Jeff Bezos that portrays the billionaire CEO of Amazon as a brilliant but ruthless dictator, one who treats workers “like expendable resources.”

    Michael Maccoby, a psychoanalyst who writes about business executives and teaches leadership at Oxford’s Saïd Business School, doesn’t view Bezos’s tendencies to mistreat employees as his biggest liability, though. Rather, it’s his lack of a strong number two.

    Amazon’s success has certainly been stunning. As the book points out, 20-year-old Amazon now has roughly $75 billion in annual revenue, a $140 billion market cap, and nearly 100,000 full-time and part-time employees, up 40 percent from last year. In late summer, Bezos personally acquired the Washington Post newspaper and some related properties for $250 million.

    Maccoby, who has worked closely with 40 CEOs over the years but has studied many more, thinks Bezos resembles “narcissistic visionaries” like Steve Jobs, Larry Ellison, and Bill Gates — with one major exception. All had a right-hand man; Bezos seemingly does not. And “that kind of personality needs to have strong partners who balance them and who complement their skills,” insists Maccoby.

    Maccoby points to Microsoft co-founder Bill Gates, who, in the company’s earlier days, could dream about the future while sidekick Steve Ballmer obsessed about Microsoft’s day-to-day operations. Maccoby also cites Steve Jobs’ relationships, first with his Apple cofounder Steve Wozniak and much later with Apple executives Tim Cook and Jony Ive. And there is Oracle’s Larry Ellison, who has brought in a string of executives over the years, only to chew them up and spit them out. (Ellison’s current number two is co-president Mark Hurd.)

    Asked whether Bezos might be an exception to the rule, Maccoby says, “So far, so good.” Still, he thinks Amazon’s decision to forego profits in favor of reinvestment are reminiscent of numerous endeavors throughout history, including those of, gulp, Napoleon.

    It’s not necessarily an unfavorable comparison. Both enjoyed success at a young age, both rejected the established wisdom, and both took on seemingly invincible enemies and defeated them. If historians are to be believed, Napoleon – like Bezos – also had unrivaled intellectual powers and an astonishing capacity to integrate information from different disciplines.

    Of course, as brilliant as Napoleon was, he eventually pushed his luck, ignoring repeated advice not to invade Russia. Says Maccoby: “Napoleon was very successful as long as he had Talleyrand as his foreign minister.” When he lost Talleyrand, he spun out of control.

    “The danger with someone like Bezos is the same danger that Napoleon had,” Maccoby adds. Without enough pushback, “you can go too far.”

    JamBase

    New Fundings

    AboutOne, a three-year-old, Malvern, Pa.-based company behind an online family mangement journal platform, has raised $1.79 million in a partial raise, according to an SEC filing. The company had previous raised nearly $2 million from the Golden Seeds angel network.

    Achates Power, a nine-year-old, San Diego-based developer of fuel-efficient combustion engines, has raised a $35.2 million Series C round from existing investors Sequoia CapitalRockPort Capital PartnersMadrone Capital PartnersInterWest Partners and Triangle Peak Partners.

    GreenWave Reality, a five-year-old, Irvine, Calif.-based company that makes home energy management devices and related software, has raised $19 million in Series B funding led by The Westly Group, with participation from Craton Equity Partners.

    Lookout, a six-year-old San Francisco-based company that makes software that protects personal devices, has raised $55 million in new funding. Deutsche Telekom led the round, which included participation from Qualcomm Ventures, Greylock Partners, Mithril Capital and previous investors Accel PartnersAndreessen HorowitzIndex Ventures and Khosla Ventures. The company has raised roughly $130 million since 2009.

    Newsela, a new, New York-based site that features daily news articles from around the country, at five different reading levels, has closed $1.2 million in seed funding led by New Schools Venture Fund and Kapor Capital.

    Silver Ridge Power  an Arlington, Va.-based joint venture between The AES Corporation and Riverstone Holdings that is developing and will operate numerous solar power plants — has received $103 million from Google for its Mount Signal Solar project, based in Imperial County, Calif. The plant is expected to be up and running next year, and has agreed to sell its output to the San Diego Gas & Electric Company.

    Telepath, a young, U.K.-based consultancy focused making better sense of fleet management data for its customers, has raised $758,000 in seed funding from The North West Fund for Venture Capital and Enterprise Ventures.

    —–

    New Funds

    Today, 5-year-old, New York-based ff Venture Capital becomes the first venture firm to embrace the new general solicitation rules. This morning, in fact, it’s announcing, quite publicly, that it’s raising between $50 million and $70 million for its third fund, ff Rose Venture Capital Fund. In a blog post, founding partner John Frankel notes that with venture capital itself “getting disrupted,” “[w]e wholeheartedly support the reinvention that comes along with it.” A spokeswoman tells me that the firm plans to use “21st century technologies” including “online media, social media channels, television, and email” to reach investors. The firm’s last fund, a $27 million vehicle called ff Silver, closed in 2010. The firm claims to have “consistently generated a gross IRR on invested capital of 30 percent.”

    London has a new, $60 million, early-stage venture fund called Episode 1 (after a “Star Wars” movie, really). Episode 1 combines public and private money, so it can fund only U.K.-based startups or companies that have a significant presence in the country, but that’s the point of the fund anyway. You can read much more about it here.

    Nextview Ventures, a three-year-old, Boston-based seed-stage fund is raising a second fund, according to an SEC filing, which doesn’t list a target. Nextview focuses on seed-stage, Internet-enabled startups, and has already backed roughly two dozen companies. One of its newest portfolio companies is Sunrise, a New York-based maker of a free calendar app; another is the online payment platform Plastiq, based in Boston.

    —–

    Exits

    TenMarks, a five-year-old, Burlingame, Calif.-based company that produces an online math curriculum, is being acquired by Amazonreports Techcrunch. Terms of the deal have not been disclosed. TenMarks has raised $4.6 million in venture and debt financing over the years, including from Catamount Ventures and Birchmere Ventures.

    Familiar, two-year-old, Seattle-based private photo and video sharing service, has been bought by Taser, a company known best for its stun guns. The company will incorporate Familiar’s technology into its software and cloud services operation, Evidence.com. Terms of the deal were not disclosed. Familiar has raised $1.3 million from Greylock PartnersRedpoint VenturesIndex Ventures and others. One of its first checks came from entrepreneur-investor brothers Hadi and Ali Partovi.

    —–

    IPOs

    Criteo, the eight-year-old, Paris-based performance display advertising company, announced terms for its IPO yesterday. It plans to raise $176 million by offering 7.2 million shares at a price range of $23 to $26, for a market value of roughly $1.5 billion.

    Trevena, a six-year-old, clinical-stage biopharmaceutical company based in King of Prussia, Pa., has filed to go public, though the number of shares and pricing terms have yet to be decided. Trevena has raised roughly $130 million from investors; its principal stockholders include Alta PartnersNew Enterprise Associates, and Polaris Partners, each of which own 20.8 percent of the company.

    —–

    People

    Facebook CEO Mark Zuckerberg has purchased the four homes surrounding his own Palo Alto house for a collective $30 million, reports the San Jose Mercury News. Zuckerberg is leasing the homes back to their owners; he decided to purchase the properties after learning of a developer’s plans to buy one of the parcels, build a huge house atop it, then advertise its proximity to Zuckerberg.

    Mike Hopkins, a Fox executive, is poised to become Hulu’s new CEO, reports Bloomberg. Hopkins would replace Andy Forsell, who has been the company’s acting CEO since March.

    Vivian Schiller, chief digital officer at NBC News, is about to become Twitter‘s head of news, reports AllThingsD, though Schiller is expected to take time off in between jobs. Much more here.

    —–

    Job Listings

    Khosla Ventures-backed portfolio company in New York is looking for a director of digital marketing. Applicants should have at least 8 years of experience in digital marketing, several years of management experience, and familiarity with the ad tech industry, among other things.

    —–

    Essential Reads

    A first look inside Google‘s futuristic quantum lab.

    —–

    Detour

    The bigger the driver’s seat, the (much) higher the chances that someone will double-park their car.

    The secret factor in China’s housing bubble? Mistresses!

    —–

    Retail Therapy

    This wallet is made of buttery soft vegetable tanned bridle leather from Wickett & Craig of Pennsylvania. Is yours?

    If you want to look this cool this fall, dress like a lumberjack! You heard it here first. No one has ever said it before anywhere (ever).

    Please feel free to send us any and all story suggestions (anonymous or otherwise) by clicking hereIf you’re interested in advertising in our email newsletter, please click here. To sign up for the newsletter, visit strictlyvc.com.

     

     

  • A Global VC on Outsiders’ View of the U.S. Right Now: “Speechless”

    027-20120712-KS026-Edit-2-324x324Mathias Schilling is the cofounder and managing partner of e.ventures, an early-stage venture firm that invests out of dedicated funds in five geographies: the U.S., Russia, Germany, Asia, and Brazil. The vantage point gives Schilling a unique perspective on how the world sees the U.S. debt crisis. During a quick chat yesterday, he told me his partners are, in a word, “confused.” We also talked about what he’s seeing around the globe.

    You have these dedicated funds where you share carry. Do you sign off on deals as individual firms?

    We look at every region very locally, but we [employ] different structures for different deals. Sometimes, we’ll have an investment committee where I’ll participate in the decision-making. Sometimes, we don’t get involved at all. Our mantra is to keep local teams to two to three partners so we can make decisions quickly.

    Last year, you and Redpoint Ventures joined forces for your Brazil-focused venture fund, raising $130 million. What are you seeing there in late 2013?

    Brazil has had many lost decades, including after 2000. So many basic [online] categories still haven’t been created and funded. There’s also a lack of capital, and entrepreneurship culture, and there’s a difficult regulatory environment. But I’m very positive on Brazil. We’re not only seeing copycats, which obviously makes sense, as large categories need to be created; we’re also seeing a lot of very high quality entrepreneurs. We’ve [backed]10 companies in the last 18 months or so, in e-commerce, financial services, advertising, travel.

    Right now, it’s cooled off on a macro level, in terms of investors going there, because if you aren’t local and make a commitment to stay, it’s very difficult. It puts us in a good position there.

    What can you share about the other markets you’ve entered?

    Japan is an interesting market. It’s traditionally been a tough venture market – people are very hierarchical and risk averse, which is also true of Brazil and, to some extent, Germany. But on the mobile side, we’re seeing a lot of advanced things happening. Half of Android’s revenue is coming from apps being made in Japan and South Korea.

    Berlin is building great critical mass; it’s cheap, exciting, and innovative. Russia is more technology driven, with a lot of very strong engineering. But it lacks general management skills.

    Each is distinct, but I believe you have to go into these markets and build a commitment there and stay for the long run, because I don’t think you can stop the trend. We are globalizing.

    Is entrepreneurship as widely celebrated in other parts of the world?

    I think it’s cool to be an entrepreneur in most countries at this point. Everyone knows some fantastic success story of some guy who really did it. And some of these people really had to pull through to be the first [success story], so they’re great role models.

    Culturally and psychologically, people don’t want to work for big companies anymore.

    I gather the rest of the world is very concerned by the U.S. government right now. What are you hearing from your far-flung partners about this mess?

    I think people are speechless. Honestly, they’re shrugging their shoulders. They don’t get what’s happening and why. And to some extent, it is a bigger deal elsewhere than it is here. They think it will be resolved. It has to be resolved.

  • StrictlyVC: October 10, 2013

    110611_2084620_176987_thumbnailHey, good news, it’s Thursday! Hope you have a great day, and remember, you can always email me at connie@strictlyvc.com. To sign up for the newsletter, click here.

    Top News in the A.M.

    Treasury Secretary Jack Lew warns lawmakers that he’ll be unable to guarantee payments to any group – whether Social Security recipients or U.S. bondholders – unless Congress approves an increase in the federal debt limit.

    A Global VC Shares His World View

    Mathias Schilling is the cofounder and managing partner of e.ventures, an early-stage venture firm that invests out of dedicated funds in five geographies: the U.S., Russia, Germany, Asia, and Brazil. The vantage point gives Schilling a unique perspective on how the world sees the U.S. debt crisis. During a quick chat yesterday, he told me his partners are, in a word, “confused.” We also talked about what he’s seeing around the globe.

    You have these dedicated funds where you share carry. Do you sign off on deals as individual firms?

    We look at every region very locally, but we [employ] different structures for different deals. Sometimes, we’ll have an investment committee where I’ll participate in the decision-making. Sometimes, we don’t get involved at all. Our mantra is to keep local teams to two to three partners so we can make decisions quickly.

    Last year, you and Redpoint Ventures joined forces for your Brazil-focused venture fund, raising $130 million. What are you seeing there in late 2013?

    Brazil has had many lost decades, including after 2000. So many basic [online] categories still haven’t been created and funded. There’s also a lack of capital, and entrepreneurship culture, and there’s a difficult regulatory environment. But I’m very positive on Brazil. We’re not only seeing copycats, which obviously makes sense, as large categories need to be created; we’re also seeing a lot of very high quality entrepreneurs. We’ve [backed]10 companies in the last 18 months or so, in e-commerce, financial services, advertising, travel.

    Right now, it’s cooled off on a macro level, in terms of investors going there, because if you aren’t local and make a commitment to stay, it’s very difficult. It puts us in a good position there.

    What can you share about the other markets you’ve entered?

    Japan is an interesting market. It’s traditionally been a tough venture market – people are very hierarchical and risk averse, which is also true of Brazil and, to some extent, Germany. But on the mobile side, we’re seeing a lot of advanced things happening. Half of Android’s revenue is coming from apps being made in Japan and South Korea.

    Berlin is building great critical mass; it’s cheap, exciting, and innovative. Russia is more technology driven, with a lot of very strong engineering. But it lacks general management skills.

    Each is distinct, but I believe you have to go into these markets and build a commitment there and stay for the long run, because I don’t think you can stop the trend. We are globalizing.

    Is entrepreneurship as widely celebrated in other parts of the world?

    I think it’s cool to be an entrepreneur in most countries at this point. Everyone knows some fantastic success story of some guy who really did it. And some of these people really had to pull through to be the first [success story], so they’re great role models.

    Culturally and psychologically, people don’t want to work for big companies anymore.

    I gather the rest of the world is very concerned by the U.S. government right now. What are you hearing from your far-flung partners about this mess?

    I think people are speechless. Honestly, they’re shrugging their shoulders. They don’t get what’s happening and why. And to some extent, it is a bigger deal elsewhere than it is here. They think it will be resolved. It has to be resolved.

    JamBase

    New Fundings

    BizBrag, a nearly three-year-old Baltimore, Md.-based platform that connects advertisers with local social networking feeds, is raising $600,000 in seed funding, according to an SEC filing. It has so far raised $200K, including from Bluewater International, an investment firm in Washington, D.C.

    Blab, a two-old Seattle-based analytics company that tries to help customers understand where social media conversations are headed, has raised $342,000 in debt, according to an SEC filing that shows the company is looking for up to $2.5 million. The company has raised nearly $3.6 million to date.

    City Notes, a year-old, Brooklyn, NY-based mobile city guide cofounded by former tech writer and editor Dan Frommer, is looking to raise up to $800,000 in debt, according to an SEC filing. The company’s cofounder, Mark Dorison, formerly a director of application development at Martha Stewart Living Omnimedia, is also listed on the filing.

    CTI Towers, a wireless tower operator that is based in Franklin, Mass., has raised $30 million in debt financing, just as it has completed an acquisition of five towers from an unnamed wireless carrier for undisclosed terms. CTI Towers launched two years ago with a portfolio of roughly 800 towers that were previously owned and operated by Comcast Cable subsidiaries. It’s backed by Comcast Ventures.

    Refresh, an 18-month-old, Palo Alto-based company whose mobile application delivers users an instant dossier about people based on what’s publicly available about them, has raised a $10 million Series A round from Redpoint Ventures, Charles River Ventures, and Foundation Capital.

    Smartling, a four-year-old, New York-based startup that helps its business customers understand and interact with their global customers by helping them translate their sites, apps, and more, has raised a $24 million Series C round led by Tenaya Capital. Other investors in the round included Harmony PartnersVenrockIDG VenturesU.S. Venture PartnersFelicis Ventures and First Round Capital. The company has raised a little more than $38 million to date.

    Splice, a new, online workflow platform for music creators that lets that back up their songs, share changes and more, has raised $2.75 million in seed funding led by Union Square Ventures. Other investors in the round included True VenturesSV AngelLerer VenturesFirst Round Capital and Code Advisors. Splice has an office in New York and in Santa Monica.

    TempoDB, a two-year-old, Chicago-based database service for time series data — everything from measuring networking latencies to heart rates — has raised $3.2 million in Series A funding led by Hyde Park Venture Partners, with participation from Chicago Ventures and Divergent Ventures. TempoDB had raised roughly a million dollars in seed funding previously, including from Data Collective and TechStars.

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    Fund News

    Alibaba, the China-based e-commerce juggernaut is apparently getting into yet another business, acquiring a 51 percent stake in a Chinese mutual fund called THFund for more than $190 million. In summer, Alibaba’s payment service, Alipay, and THFund launched a mutual fund called Yuebao; consumers can invest in Yuebao via their Alipay accounts.

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    Exits

    Validity, 13-year-old San Jose, Calif., company that makes sensors used in biometric identification, is being purchased for $92.5 million in cash and stock, reports VentureBeat. The acquiring company, Synaptics, a publicly traded manufacturer of touch pads, will pay up to $255 million for Validity based on performance targets over time. Validity had raised $82 million over the years, including from TeleSoft PartnersQualcomm VenturesCrosslink CapitalPanorama Capital and individuals like Salesforce.com founder Marc Benioff and famed angel investor Ram Shriram.

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    IPOs

    Looks like Twitter has accidentally revealed its IPO date.

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    People

    Mike Gridley has joined Akkadian Ventures, a direct secondary investment firm based in San Francisco, as a managing director. Gridley was most recently a managing director at Industry Ventures in San Francisco, which he joined in 2004. Before Industry Ventures, Gridley worked as an associate at BV Capital/Bertelsmann Ventures. Akkadian Ventures founder Ben Black has much on Gridley’s new role here.

    Zack Urlocker is rejoining Scale Venture Partners as an executive-in-residence. Urlocker was most recently chief operating officer at the venture-backed customer support platform company Zendesk, which he joined in December 2010. Between September 2010 until his appointment at Zendesk, he worked with ScaleVP as an EIR, evaluating new investment opportunities in data and NoSQL companies.

    Gregory Silva is also joining Scale Venture Partners, as a new associate. Silva was most recently an investment banking analyst at Piper Jaffray and briefly before that, Silva worked as a financial analyst for Bayer HealthCare.

    Joe Montana, the legendary San Francisco 49ers quarterback, has a new pastime in — you guessed it — technology investing.

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    Happenings

    If you’re in Cambridge, Mass., it isn’t too late to check out Emtech, an emerging tech conference being hosted by MIT Technology Review.

    If you happen to be in Kiev, Ukraine, you might hustle over to the two-day IDCEE conference, where Alan Patricof of Greycroft PartnersPavel Bogdanov of Almaz Capital Partners and many other investors will be speaking, mingling, and hearing startup pitches.

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    Job Listings

    WI Harper, a venture capital firm that focuses on early and early expansion investments in Mainland China, Taiwan and Silicon Valley, is looking for a venture capital analyst intern at its office in San Francisco’s Financial District. Applicants should have a GPA of 3.5 or higher; fluency in reading and writing English, along with speaking Mandarin, are big plusses.

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    Essential Reads

    Bloomberg publishes a juicy excerpt of The Everything Store: Jeff Bezos and the Age of Amazon by its senior writer, Brad Stone. One small snippet: “The one unguarded thing about Bezos is his laugh-a pulsing, mirthful bray that he leans into while craning his neck back. He unleashes it often, even when nothing is obviously funny to anyone else. And it startles people. ‘You can’t misunderstand it,’ says Rick Dalzell, Amazon’s former chief information officer, who says Bezos often wields his laugh when others fail to meet his lofty standards. ‘It’s disarming and punishing. He’s punishing you.’”

    In its S-1, Twitter says that through the “eyes of management,” the company had a profit of just over $21 million in the first six months of the year. Through an accountant’s eyes, though, Twitter actually lost just over $69 million.

    Revenue from mobile ads accounted for 15 percent of Internet advertising’s $21 billion haul in the first half of this year, says the Internet Advertising Bureau. That’s more than double its market share this time last year.

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    Detour

    “Who was that muscle man who decided that he’d get more money from Amazon than from [Crown Publishing] and sold seventeen books when he’d sold six hundred thousand before? He swan dived into the pavement.”  — Legendary literary agent Andrew Wylie on Tim Ferriss, Amazon, and dealing with young writers.

    Examining the word “bro.”

    Check out your timid first tweet (and anyone else’s) right here.

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    Retail Therapy

    We can’t imagine who’d want this watch for themselves, but it would make a pretty clever parting gift for a terrible roommate or evil landlord.

    If you love maple syrup and you love bourbon, you are going to love this smoked maple bourbon. (Not for pancakes.)

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    Correction: Yesterday, we mistakenly reported that App Nexus cofounder and president Michael Rubenstein was leaving the company, when in fact App Nexus cofounder and CTO Michael Nolet is leaving. Rubenstein is now replacing Nolet on the board. We sincerely regret the error. 

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