Seed Stage Slaughter
The Center for an Urban Future, a think tank headed by Jonathan Bowles, has released a lengthy report about New York City’s tech sector, titled “New Tech City.” The Center’s findings indicate amazing growth over the last decade. While “New Tech City” contains mostly good news for the local tech set, there is a dash of cold water–just a bit–to leaven any prospective startup’s bright-eyed optimism.
First, the good news!
We had no idea. Really. These dudes tell us nothing. Nobody wants this to be an Arrington-SV Angel style relationship more than us, but they’re not buying it.
As we reported earlier today, Thrive Capital just had a big, 17X exit with GroupMe that is a feather in the cap of the young fund.
Now Fortune is reporting that Thrive Capital has raised a new, $40 million fund, a step up from their first $10 million fund. Aside from GroupMe, Thrive also had an exit when Hot Potato sold to Facebook. OnSwipe, a Thrive company, recently raised $5 million.
Small VCs, like start-ups, would be wise to close their financing now, before macro-economic uncertainties get any worse.
Earlier this week Betabeat reported on some findings from the National Association of Venture Capital, which showed that while the number of firms raising capital was shrinking, the amount of dollars put into VC the first half of 2011 was actually up 70 percent over the same period in 2010.
More positive data was Read More
Tech Bubble Watch
The local ecosystem is already flooded with early stage capital, with venture firms in California and Boston directing more of their investment towards New York.
Now a group of digital vets has raised a monster $120 million fund for Level Equity, to invest in media and tech firms. Three of the founders — Benjamin Levin, George McCulloch and Sarah Haas, come from Insight Ventures, with Glen Shields joing from LeverPoint.
The group has a number of IPOs under its belt and Insight has a couple of hot web companies in its portfolio, including Flipboard and Twitter.
Justin Wohlstadter navigated easily through the crush of long-legged beauties and laptop jockeys crowding the lobby of the Ace Hotel on a chilly Thursday night. His informal office when he’s not in the U.K. doing postgraduate work at Oxford, the wood-paneled bar is also his hunting ground for tech deals to fund Read More
The 10 year expiration date is coming due on a lot of venture capital funds, and many are expected to fold up shop in the next year, unable to raise fresh capital based on their shoddy returns.
Investors are increasingly interested in smaller, more agile funds, according to a piece Venture Capital Dispatch. They Read More