Sourcery (12/12-12/16)
2023 Predictions ~ Vic.ai, Bondaval, Nulus, Poolit, Komodo Health, Small Door, Cabinet Health, Heyday, Snyk, Nerdio, NotCo, Gladly, ngrok, Sweep, Poppi, Cinder, Infinity AI, Nomad Data, Common Feta
The predictions (or as we say in LA “manifestations”) for 2023 are starting to roll in…
If 2021 was the year of stonks and crypto, and 2022 was the fall of stonks and crypto, then 2023 must be the year of of generative AI. The ‘only glimmering hope for the near future.’
I believe that’s partly true, partly false. As we all funnel into applications for distributing the absolute beauty of this technology we’re also going to see growth in other aspects of the tech world. We’ve come to a point where, yes, there are layoffs and companies are starting to tumble (and there will likely be more) but that shake up is opening opportunity for a new generation of builders, thinkers, and founders; those who are looking to rewrite the script of how we interact with and consume software, apps, and services. I also believe we’ve come to a point in time where we inherently demand a higher bar for quality, speed, engagement, and community, and that demand will drive some truly innovative solutions to tried problems. And while we may see a slow down for growth-stage companies, a surge in creative M&A deals, the early-stage will be the arena to watch for the next couple of years.
Predictions
Five Predictions for 2023, Tomasz Tunguz
10 Predictions for 2023, Two Sigma Ventures
Tech predictions for 2023 and beyond, Werner Vogels (CTO, Amazon)
8 Tech Investors Share Predictions for 2023, Insight Partners
Musings
Nouriel Roubini: ‘I hope I didn’t depress you too much,’ Financial Times
Apologies if you can’t get past the pay-wall but we got great grinch energy over here
Aswath Damodaran on the Fed, Inflation and Valuation
The Blackstone of Innovation: Venture Capital Is The Name, AUM Collection Is The Game, Kyle Harrison
A Funny Thing Happened on the Way to Sand Hill Road, Tomasz Tunguz
Listen to VC Bradley Tusk Thinks Twitter Will Cost Elon Musk Much More Than He Paid For It, StrictlyVC Download
E108: Doxing debate, Nuclear fusion breakthrough, state of the markets & more, All In Podcast
(1:05) Twitter's new privacy rules, notable suspension, doxing dynamics
(20:48) Nuclear fusion breakthrough and geopolitical ramifications
(42:58) Jason and Sacks's big night
(51:11) State of the markets: Coupa acquired by Thoma Bravo, startups at all stages seeing heavy valuation reductions, what LPs are thinking
(1:22:08) TV catch up, worst person in tech bracket
Interest rates, inflation and “getting fit” with Brad Gerstner | E1639, This Week in Startups
. . .
Last Week (12/12-12/16):
Relevant deals include the 60+ deals across stages below.
I've categorized the deals below into four categories, Fintech, Care, Enterprise & Consumer, and Sustainability, and ordered from later-stage rounds to early-stage rounds. Highlighted deals include Vic.ai, Bondaval, Nulus, Poolit, Komodo Health, Small Door, Cabinet Health, Heyday, Snyk, Nerdio, NotCo, Gladly, ngrok, Sweep, Poppi, Cinder, Infinity AI, Nomad Data, Common Feta, Anima, Pack, Artifact, July, Group14, 5B, Guidewheel; Coupa, RepairSmith; Infinite Reality
Final numbers on The Sectors That Took a Hit in 2022 and Social Media Peaks at the bottom.
Deals
Fintech:
- Vic.ai, a New York and Oslo-based autonomy and intelligence platform for accounting and finance, raised $52 million in Series C funding. GGV Capital and ICONIQ Growth co-led the round and were joined by investors including Cowboy Ventures and Costanoa Ventures.
- Bondaval, a London-based B2B receivables security company, raised $15 million in Series A funding. Talis Capital led the round and was joined by investors including Octopus Ventures, Insurtech Gateway, TrueSight, Expa, FJ Labs, and Broadhaven Ventures.
- Nilus, a New York-based financial operations platform, raised $8.6 million in seed funding. Bessemer Venture Partners led the round and was joined by investors including Better Tomorrow Ventures, Symbol, and other angels.
- Poolit, a Miami, FL-based FinTech startup that aims to open up access to investing in private equity and VC funds, raised $5.3 million in a round of financing co-led by Harlem Capital and Picus Capital, with participation from Declaration Capital. TechCrunch
- Oyster, a New York-based insurance technology company, raised $3.6 million in seed funding. New Stack Ventures and Cambrian Ventures invested in the round.
. . .
Care:
- Komodo Health, a San Francisco, CA-based healthcare startup that improves patient care and reduces disease burden through data-driven insights raised a “structured equity infusion” of $200 million led by Coatue, with participation from Dragoneer. TechCrunch
- MasterControl, a Salt Lake CIty-based manufacturing software solutions provider for the life sciences industry, raised $150 million in Series A funding led by Sixth Street Growth.
- Synchron, a Brooklyn-based endovascular brain-computer interface company, raised $75 million in Series C funding. ARCH Venture Partners led the round and was joined by investors including Gates Frontier, Bezos Expeditions, Reliance Digital Health Limited, Greenoaks, Alumni Ventures, Moore Strategic Ventures, Project X, and others.
- Small Door, a New York, NY-based tech-enabled, membership-based veterinary care provider, raised $40 million in a Series B funding round led by the Chief Investment Officer of a leading private equity firm, with participation by C&S Family Capital and FS Investors as well as existing investors Toba Capital, Lerer Hippeau Ventures, Primary Venture Partners and TriplePoint Capital. VC News Daily
- Cabinet Health, a Washington, D.C.-based seller of OTC medicines and reusable packaging, raised $17m in equity and debt funding (around a 50/50 split) led by Global Impact Fund, per Axios Pro. https://axios.link/3iZqGTD
- BehaVR, a London-based virtual reality mental and behavioral health company, raised $13 million in Series B funding. Optum Ventures and Oxford Science Enterprises co-led the round and were joined by investors including Confluent Health, Accenture Ventures, Chrysalis Ventures, and Thornton Capital. The company will also merge with OxfordVR.
- Heyday, a New York-based skincare company, raised $12 million in Series B extension funding led by Level 5 Capital Partners.
- Runna, a London, U.K.-based personalized running coaching app, raised $2.3 million in a funding round led by Jon Coker, founding partner at Eka Ventures, with participation from Fortitude and others. Tech Funding News
. . .
Enterprise & Consumer:
- Snyk, a Boston, MA-based developer cybersecurity company, raised a $196.5 million Series G round led by Qatar Investment Authority, with participation from Evolution Equity Partners, G Squared and Irving Investors, as well as Boldstart Ventures, Sands Capital and Tiger Global, at a $7.4 billion valuation, down from its September 2021 valuation of $8.5 billion. TechCrunch
- Nerdio, a Chicago-based virtual desktop optimization platform in Microsoft Azure, raised $117 million in Series B funding led by Updata Partners.
- Zappi, a London-based consumer insights platform for creators, raised $70 million in funding from Sumeru Equity Partners and others.
- NotCo, a New York, NY-based Artificial Intelligence food tech company, raised a $70 million Series D1 investment round led by Princeville Capital, with participation from Bezos Expeditions, Tiger Global and L Catterton, valuing the company at $1.5 billion. Forbes
- MessageGears, an Atlanta-based customer engagement platform for consumer brands, raised $62 million in funding. Long Ridge Equity Partners led the round and was joined by investors including Argentum Group and Atlanta Ventures.
- Shield AI, a San Diego-based defense technology company building A.I. pilots for aircraft, raised an additional $60 million in Series E funding from the U.S. Innovative Technology Fund.
- Gladly, a San Francisco-based customer service platform, raised $55 million in funding. Riverwood Capital, Greylock, GGV, NEA, and Glynn Partners invested in the round.
- ngrok, a San Francisco-based ingress-as-a-service platform, raised $50 million in Series A funding. Lightspeed Venture Partners led the round and was joined by Coatue.
- Sweep, a New York, NY-based startup building sales playbooks in Salesforce’s CRM software, raised $28 million in equity financing from Bessemer Venture Partners, which seeded Sweep, and Insight Partners, which led the company’s most recent round, a Series A. FinSMEs
- Howl, a New York-based creators and brands collaboration marketplace, raised $27 million in Series A funding. Highland Capital Partners led the round and was joined by investors including Act One Ventures and Talis Capital.
- Poppi, an Austin-based prebiotic soda brand, raised $25 million in funding led by CAVU Consumer Partners.
- EnCharge AI, a Santa Clara, Calif.-based advanced computers building company, raised $21.7 million in Series A funding. Anzu Partners led the round and was joined by investors including AlleyCorp, Scout Ventures, Silicon Catalyst Angels, Schams Ventures, E14 Fund, and Alumni Ventures.
- Partly, a London, U.K.-based global platform for replacement parts, raised $21 million in a financing round led by Octopus Ventures, with participation from Shasta Ventures, Square Peg, Blackbird, Ten13, Hillfarrance and I2BF. TechCrunch
- LexCheck, a New York-based contract negotiations optimization platform, raised $17 million in Series A funding led by Mayfield Fund.
- BetterManager, a San Francisco-based leadership development platform, raised $16 million in Series A funding. Education Growth Partners led the round and was joined by Polar Capital Group.
- Blocknative, a San Francisco, CA-based real-time web3 infrastructure company, raised a $15 million Series A-1 financing round that included Blockchain Capital, Foundry Group, Rho, IOSG Ventures, Robot Ventures, Fenbushi Capital, HackVC, Industry Ventures and others, bringing total funding to date to $34 million. VC News Daily
- K1x, a Chicago-based K-1 tax document automation solution, raised $15 million in funding from Edison Partners.
- api.video, a Bordeaux, France-based video infrastructure provider, raised $12 million in Series A funding. MMC Ventures led the round and was joined by investors including Open Ocean, Blossom Capital, and Financiere Saint James.
- TransVoyant, an Alexandria, Va.-based supply chain execution platform, raised $12 million in funding co-led by Merck Global Health Innovation Fund and P74 Ventures.
- Darwin CX, a Bunnell, Fla.-based customer experience platform, raised $10.5 million in Series C funding. First Ascent Ventures and Felicitas Global Partners co-led the round and were joined by investors including Metropolitan Partners Group and Liam Lynch.
- Cinder, a Washington, D.C.-based trust and safety operations platform, raised $10 million in Series A funding. Accel led the round and was joined by Y Combinator.
- Quadric, a Burlingame, CA-based general purpose neural processing unit (GPNPU) processor IP company, announced an extension and completion of its Series B funding round, raising an additional $10 million of equity and debt financing with Xerox Ventures and Mesh Ventures joining existing investors DENSO, MegaChips, Leawood VC, Pear VC, Uncork Capital and Cota Capital, following on the $21 million equity investment announced in February. VC News Daily
- Forum3, a Seattle-based digital collectibles and strategic advisory company, raised $10 million in seed funding. Decasonic led the round and was joined by investors including Bloccelerate, Liberty City Ventures, Arca, Polygon Ventures, and Valor Siren Ventures.
- Arketa, a Los Angeles-based hybrid fitness studios growth platform, raised $7.6 million in seed funding. First Round Capital led the round and was joined by investors including Amity Ventures, Fitt Capital, Y Combinator, and others.
- Kuona, a Monterrey, Mexico-based SaaS company that optimizes prices, promotions, and inventories for consumer packaged goods and retailers, raised $6 million in seed funding. COMETA led the round and was joined by investors Seaya Cathay Latam and FEMSA Ventures.
- Infinity AI, a Los Altos, Calif.-based automated synthetic training data platform, raised $5 million in seed funding. Matrix led the round and was joined by other angels.
- Beni, a Santa Barbara, Calif.-based browser extension company for resale listings, raised $4 million in seed funding led by Buoyant Ventures.
- Spaceport, a Los Angeles-based Web3 licensing protocol, raised $3.6 million in pre-seed funding. Arca, Decasonic, and CRIT Ventures co-led the round and were joined by investors including Cozomo De Medici, Diaspora Ventures, Infinity Ventures Crypto, FBG Capital, Nextview Ventures, Republic Asia, and Valhalla Ventures.
- Nomad Data, a New York-based data connection company for businesses to vendors, raised $3.2 million in funding. Struck Capital led the round and was joined by investors including TenOneTen, Bloomberg Beta, Correlation Ventures, Flair Ventures, and others.
- Common Fate, a Perth, Australia-based cloud security and permissions management platform, raised $3.1 million in seed funding. Work-Bench led the round and was joined by investors including Haystack Ventures and Essence VC.
- Anima, a Tel Aviv, Israel-based protocol for dynamic and ownable augmented reality, raised an additional $3 million in capital from new investors including HashKey, Not Boring Capital, Polygon Studios and NGC Ventures, joining the company’s previous investors Coinbase Ventures, Flamingo, and Divergence Ventures. VentureBeat
- Pack, a San Diego-based commerce solutions company, raised $3 million in seed funding. Norwest Venture Partners led the round and was joined by investors including Alpaca and Vanterra Ventures.
- Artifact, a San Francisco-based storytelling platform for families, raised $3 million in seed funding. GV led the round and was joined by investors including Offline Ventures, Goodwater Capital, Atento Capital, and other angels.
- July, a New York-based brand deal automation platform, raised $2.3 million in pre-seed funding led by Seven Seven Six.
- Plann.ly, a Phoenix-based workplace well-being platform, raised $1.2 million in funding from VEST Her Ventures.
. . .
Sustainability:
- Group14 Technologies, a Woodinville, Wash.-based EV battery technology company, raised an additional $214 million in Series C funding. Microsoft’s Climate Innovation Fund, Lightrock Climate Impact Fund, Moore Strategic Ventures, Oman Investment Authority, and Molicel invested in the round.
- 5B, a Sydney-based solar power deployment company, raised AUD $20 million ($13.72 million) in funding from bp ventures.
- tepeo, a Wokingham, U.K.-based zero-emission boiler developer, raised £10.5 million ($13.05 million) in funding. BGF led the round and was joined by investors including Clean Growth Fund, Bonheur, and Renewable Environmental Investments.
- Guidewheel, a San Francisco, CA-based SaaS platform that boosts manufacturing and trims carbon emissions, raised $9 million in a Series A-1 financing round led by Breakthrough Energy Ventures. FinSMEs
Acquisitions & PE:
- Thoma Bravo agreed to acquire Coupa Software, a San Mateo, Calif.-based business spend management software company. The deal is valued at $8 billion. The Abu Dhabi Investment Authority also acquired a minority stake in the company.
- AutoNation agreed to acquire RepairSmith, a Los Angeles-based mobile car-repair startup, for $190 million.
- Intrinsic, a Mountain View, CA-based robotics software and AI company at Alphabet, acquired several divisions within Open Robotics, the Mountain View, CA-based company behind robotics software packages Gazebo and Robotic Operating System (ROS). (More in TechCrunch)
. . .
IPOs:
Nothing to see here…
. . .
SPACs:
- Metaverse experience company Infinite Reality is in advanced talks to merge with Newbury Street Acquisition Corp. (BBG)
Funds:
- Fifth Wall, a New York-based venture capital firm, raised $866 million for a fund focused on investing in proptechs.
The energy exception
As alluded to above, 2022 was a tough year for the stock market. As of Dec 15th, the S&P 500 Index was down 17% this year — with 338 of its ~500 members losing ground. The exceptions, of course, were energy companies — many of which raked in record profits during the year.
The tech and media sectors in particular had something of a reckoning. PayPal and Tesla lost more than 50% in value, while countless others — including Amazon, Alphabet and Disney — shed more than a third of their value.
As public market malaise fed through to private markets, VCs became cautious, despite a record amount of dry powder sitting on the sidelines. As startups struggled with funding, finances were squeezed — bringing the end of the hiring spree for big tech and more substantial layoffs at startups.
Socialites
With tech stocks souring and Tesla shares tumbling, Elon Musk’s $44bn Twitter takeover offer in April looked more-regrettable with each month that passed, with Musk recently dethroned as the world’s richest person.
Eventually, the 6-month+ will-they-won’t-they saga concluded, and Musk completed his acquisition in October. It is, of course, hard to say exactly what will happen with Musk as Chief Twit, but with sharp staffing cuts, an advertiser exodus, and a subscription-focused revamp of the verification system, it’s clear that a shifting business model is afoot.
Beyond Twitter, it’s been a busy year across social media — the fickle industry we all love to hate — where platforms come and go at breakneck speed.
Mark Zuckerberg has been betting big on his Metaverse ambitions... and finding it hard going. Meta has shed some ~$800bn in value since its market cap. peak — suggesting many aren’t quite as invested in Mark's new online world.
Meanwhile, TikTok’s been doing, well, what TikTok does — getting bigger and bigger. Even as regulation threatens to slow the Chinese-owned platform’s meteoric rise, TikTok has been hitting huge revenue milestones at unparalleled pace this year. In a completely unrelated set of events, every other social platform has decided that short-form vertical video is a really cool idea.
The material presented on Molly O’Shea’s website are my opinions only and are provided for informational purposes and should not be construed as investment advice. It is not a recommendation of, or an offer to sell or solicitation of an offer to buy, any particular security, strategy, or investment product. Any analysis or discussion of investments, sectors or the market generally are based on current information, including from public sources, that I consider reliable, but I do not represent that any research or the information provided is accurate or complete, and it should not be relied on as such. My views and opinions expressed in any website content are current at the time of publication and are subject to change. Past performance is not indicative of future results.
Happy Holidays Molly.