Glenn's Weekly Digest - 12/22/23
Your Weekly Guide to the Startup Universe: Navigating the World of VC & Startups for Students
Story of the Week
Figma - Adobe Divorce
The acquisition of Figma was set to be Adobe’s largest ever and would have provided some liquidity for investors in a slow exit environment. This is a bad sign for private investors, as it will likely stop some major companies from attempting M&A at all.
Adobe’s share price rose 3% on the news, so public markets clearly see this as a win— when the acquisition was announced in September 2022, at a valuation many thought was too high, it knocked 20% off Adobe’s share price.
Figma will have to figure out what’s next for the growing company. According to multiple publications, Figma will finish 2023 with over $600 million in annual recurring revenue, a 40%-plus increase year over year.
Apple Watch Sales Stopped in it’s Tracks
Apple loses attempt to halt Apple Watch sales ban [The Verge]
The US International Trade Commission (ITC) has rejected Apple's request to delay an import and sales ban on the Watch Series 9 and Watch Ultra 2, following a ruling that Apple's SpO2 sensors infringed on patents from medical device maker Masimo.
Apple had announced plans to remove the affected watches from its stores by December 24th, and the import ban is set to take effect on December 26th. The company is exploring options to avoid the ban, such as implementing software changes. The ban only applies in the US, and third-party retailers like Best Buy can continue selling the watches until their supplies run out.
The Great Recovery: The Stock Market Bounces Back
Wall Street is approaching all-time highs, with the S&P 500 up 0.4%, just 0.8% below its record set almost two years ago, and the Dow Jones Industrial Average rising 0.5% after reaching its own record high.
The markets came to believe first that the Fed's rate hikes were over — and more recently that significant cuts are on the way in 2024. The S&P 500 has risen approximately 15% since late October, driven by those expectations.
Top Reads This Week
8 Charts That Explain 2023 [The Information]
In the most recent year-end summary, The Information's team compiles 8 charts that effectively illustrate the events of the past 365 days. These charts cover a range of topics, including OpenAI and Nvidia, as well as FTX and the downturn in the cryptocurrency market.
What’s in store for 2024? [Teneo]
A new survey conducted by Teneo among CEOs of major companies and professional investors offers a glimpse into the business landscape anticipated for 2024. Notable findings include a divergence in views between CEOs and investors regarding the macroeconomy, with 53% of CEOs expecting a downturn compared to 94% of investors foreseeing improvement. The survey also highlights trends in AI investment, concerns about talent shortages, expectations for deglobalization, projections for increased M&A activity, the ongoing significance of ESG initiatives, and the impact of domestic politics, particularly the 2024 U.S. election, on business strategies.
Top 5 Deals of the Week:
Anthropic, an SF based company, is reportedly in talks to raise $750 million in funding at a valuation as high as $18.4 billion led by Menlo Ventures. That's three times where it was valued this spring.
Harvey AI, an SF startup who aims to automate and streamline various legal tasks for law firms, raised an $80 million Series B round at a $715 million valuation, led by Elad Gil and Kleiner Perkins.
Vestwell, a New York based retirement and savings platform, has raised $125 million in funding at a $1 billion valuation led by Lightspeed Venture Partners.
Claim, a Boston social network startup that lets users earn and trade rewards with friends, raised a $4 million seed round led by Sequoia Capital and announced a previously completed $2 million pre-seed round led by Susa Ventures and Box Group.
Halcyon, an Austin startup that focuses on protecting businesses from ransomware attacks, raised a $40 million Series B round from Bain Capital Ventures.
Venture Jobs of the Week
Operating Associate, Greycroft [LA and NYC]
Junior Software Investor, Headline [SF]
Senior Analyst, Investment Operations, Chan Zuckerberg Initiative [Redwood City]
Associate, Streamlined Ventures [SF]
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!
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