Startup Food Chain

After $2.67B GrubHub IPO, VCs Are Hungry For Food Delivery Apps

(photo via Lucius Kwok))

Since GrubHub Seamless went public with a valuation of $2.67 billion, venture capitalists are racing to find the next hit food delivery app for their portfolios.

According to the report on the CB Insights blog, investments in food tech in the first quarter of 2014 (Q1) were the highest they’ve been in five years. Over $200 million went to food and grocery apps during those three months, which was the biggest VC investing boom in over a decade.

Most of these are small, local apps that focus on a particular set of stores and services, whereas GrubHub and Seamless are nationwide giants with a combined 25 years under their belts. The two companies merged last year, and served over three million customers nationwide in 2013 alone. Read More

New Deal

Imgur Gets $40 Million Investment From Andreessen Horowitz

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One of tech’s most prolific venture capital firms, Andreessen Horowitz (or “A16Z”), has invested a sizable $40 million in image sharing giant Imgur, Betabeat has learned.

Imgur has been the subject of acquisition rumors for the past year, but has never taken outside money, regardless of how successful they’ve been. According to Imgur CEO and founder Alan Schaaf, Imgur has been approached by almost every VC on the map in the past five years.

“We’ve always been fighting them off,” Mr. Schaaf told Betabeat, “and the reason is because we never really found a good fit.” Read More

Venture Capitalism

Corporate VC Funding Plummets by 30 Percent—Except for Internet Investing

(cbinsights.com)

News flash: it is not 1999 anymore, and it appears that corporate venture capitalists have adjusted accordingly. CB Insights released its Q1 Corporate Venture Capital Report yesterday, revealing that CVCs participated in just 84 deals totaling $1.09 billion, a record low for the past five quarters.

But while overall CVC funding is down 20 percent, funding for the Internet sector is up 30 percent, with CVC deals in that sector increasing for the third straight quarter. Read More

IP Uh Oh

Andrew Mason: Groupon’s Future To Come From Moments of ‘Sheer Stupidity’

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Hey, look! Groupon’s stock prospectus is out! There are plenty of numbers and mind-numbing details in it that we won’t bore you with. Instead we’ll just focus on the crazypants guru talk Andrew Mason threw in there, which distinguishes Groupon from the average I.P.O. stock prospectus out there.

Take, for example, the following quote from Mr. Mason’s letter to potential stockholders: Read More