Glenn's Weekly Digest - 1/12/24
Your Weekly Guide to the Startup Universe: Navigating the World of VC & Startups for Students
Stories of the Week
Crypto is back… then it’s not… then it is
SEC [Eventually] Approved Bitcoin ETFs, but Its Hacked X Account Briefly Said Otherwise [CoinDesk]
The unauthorized tweet on Tuesday from the SEC's hacked account falsely announced the approval of Bitcoin ETFs for listing on all registered national securities exchanges, leading to a temporary surge and then a plunge in Bitcoin's price.
SEC Chair Gary Gensler quickly clarified on his own X account that the ETFs have not been authorized. The SEC also announced investigating the unauthorized access and activity on its social media account.
However, 24 hours later, the SEC formally announced it had approved the launch of Bitcoin ETFs (Exchange-Traded Funds), marking a significant shift in the accessibility of Bitcoin to a broader range of investors, including those who use traditional brokerage accounts.
Carta crisis management has some work to do
Carta is exiting the startup stock sale business [Axios]
Carta is shutting down its relatively new liquidity services business, which facilitated the buying and selling of private company stock, due to concerns over improper access to confidential company data through its primary business of managing cap tables for startups.
Karri Saarinen, the CEO of Linear, set-off a firestorm this week when he claimed that Carta’s liquidity team had conducted cold outreach to the companies angel investors about selling Linear shares. This was information that only could have been gleaned from the company’s cap table, which is also managed by Carta.
The controversy highlighted the untenable position of Carta acting as both a database for cap table information and a marketplace for stock trading, a conflict hopefully now resolved by this exit.
Carta CEO Henry Ward
Top Reads This Week
US Venture Capital Fundraising Hits 6-Year Low [FT]
In 2023, U.S. venture capital firms raised $67 billion, the lowest annual total since 2017 and a significant decrease from the $173 billion raised in 2022. This downturn has continued to put pressure startups with no end in sight, as venture capitalists are hesitant to invest further in businesses facing declining private tech valuations and a funding drought.
Don’t Count Google Out [The Information]
In 2024, investors are reconsidering Google's position in the tech market due to emerging AI tools from companies like OpenAI and Anthropic that challenge Google's dominance in consumer search. Despite Google's existing strength in search and advertising, and its potential to enhance services through AI, investors are less bullish compared to their views on Meta, Amazon, and Microsoft. This article dives into the interesting bull case for Google, even as it announces another round of meaningful layoffs.
Top 5 Deals of the Week:
Dispatch (fka OneAdvisory), a Miami based data management platform for RIAs, raised $8 million in seed funding led by F-Prime Capital.
Backer, an SF-based startup focused on facilitating tax-advantaged 529 savings plans, raised $9.5m in Series A funding led by WndrCo.
Perplexity AI, a creator of AI-native powered search, raised $70m led by IVP joined by NEA, Jeff Bezos, and Elad Gil. The round valued Perplexity at a $520 million valuation.
Intrinsic, a developer of personalized AI workflows for trust and safety teams, raised $3.1m in seed funding from Urban Innovation Fund, YC, and 645 Ventures.
Rainbow, a digitally-enabled underwriter building tailored small business insurance products, raised $12M in funding from Caffeinated Capital, 8VC, and others.
Venture Jobs of the Week
Investment Analyst, Amex Ventures [SF]
Principal, Mach49 [SF]
Program Manager - Early Stage Venture, Andreessen Horowitz [Menlo Park]
Investment Associate, MunicRE Ventures [SF]
2024 Summer Internship, Touchdown Ventures [Remote]
Off-Cycle Internship, Picus Capital [NYC]
Thank you for joining us for another edition of Glenn’s Weekly Digest! We hope you found valuable insights into the dynamic world of venture capital and startups. If you have any feedback or suggestions, feel free to reach out. Stay tuned for more exciting updates next week!
//
The material presented on Glenn Borok’s website and blog 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.