Venture capital – Marianne Bluger http://mariannebluger.com/ Fri, 22 Oct 2021 15:56:09 +0000 en-US hourly 1 https://wordpress.org/?v=5.8 https://mariannebluger.com/wp-content/uploads/2021/10/favicon-2-120x120.png Venture capital – Marianne Bluger http://mariannebluger.com/ 32 32 How to find a job in venture capital https://mariannebluger.com/how-to-find-a-job-in-venture-capital/ https://mariannebluger.com/how-to-find-a-job-in-venture-capital/#respond Fri, 22 Oct 2021 15:05:00 +0000 https://mariannebluger.com/how-to-find-a-job-in-venture-capital/ Why work in banking when you could work in fintech and why work in fintech when you could work for organizations that finance fintech? That was Apollo’s pitch to potential employees on its Investor Day this week. – “Not a single fintech wants to be a balance sheet,” said Marc Rowan, CEO of Apollo. “They […]]]>

Why work in banking when you could work in fintech and why work in fintech when you could work for organizations that finance fintech?

That was Apollo’s pitch to potential employees on its Investor Day this week. – “Not a single fintech wants to be a balance sheet,” said Marc Rowan, CEO of Apollo. “They all want to be toll handlers.” Apollo is a balance sheet, Rowan said, and he will use his balance sheet to fuel the fintech industry: “We will provide them with capital. We will take stakes in their companies and we will benefit from the toll alongside them.”

Apollo is teaming up with JPMorgan’s former head of commodities, Blythe Masters, in this venture. Master now works for Motive Partners, an investor specializing in financial technologies. Together, the two will form a “growth and equity, fintech investment powerhouse “with the Apollo fin and Motive technology creating a” fintech killer app, “Masters said. It runs in the family. – His daughter, Honor Masters, held various fintech and crypto VC positions after leaving Morgan Stanley and is currently completing an MBA at Columbia Business School.

It’s the blue chip route, and Apollo and Motiv are actually a blue chip investment firm. But what if you don’t have those big names on your resume and start smaller?

Speaking at this week’s Black Tech Fest, Atomico investor Terese Hougard said it can be difficult to enter the venture capital industry if you have a slightly different background. “I was said I had to work for Goldman Sachs or McKinsey if I wanted to work in VC, ”Therese said. “Instead, I took a job at Google. And then one day an email came to my inbox about a project on one of Google’s investment funds … It turned into a full time position and I moved to San Francisco for five years to work for them. “

While some people turn to venture capital after a career in banking, many don’t. Ladi Greenstreet, UK head of Accenture Ventures, said he spent time working in Silicon Valley and consulted with start-ups before joining Accenture. When he joined Accenture, Greenstreet said he helped persuade them to work with start-ups rather than larger established companies.

If you are from a minority background and want to work in venture capital in the UK, another alternative is the Newton Venture program, which aims to diversify the venture capital industry. Applicants need two years of professional experience, which can come from any industry. Speaking at Black Tech Fest, Newton Venture director Lisa Shu said they were focusing on “overlooked and underrated groups.” Newton’s attendees are part of a community that allows them to thrive and not just survive in the venture capital industry, Shu said.

If you are pushing for a first job in venture capital, Hougard said the most important thing is to show that you are passionate about the startup ecosystem. “We are looking for passion, conviction, enthusiasm and really want to work in this space,” she said.

Greenstreet said if you have a thesis on the next big thing, then develop it and pitch it to potential employers. “Write it down, gather the evidence and prove the thesis is real,” he said. You might be right, and even if you aren’t, your evidence-based belief could help you find a job in venture capital.

Contact: sbutcher@efinancialcareers.com first. Whatsapp / Signal / Telegram also available (Telegram: @SarahButcher)

Please indulge us if you leave a comment at the bottom of this article: all of our comments are human-moderated. Sometimes these humans may be asleep or away from their desks, which may take some time for your comment to appear. Ultimately, it will – unless it’s offensive or defamatory (in which case it won’t.)

Photo by Milo Bauman on Unsplash


Source link

]]>
https://mariannebluger.com/how-to-find-a-job-in-venture-capital/feed/ 0
Climate technology 2.0 must sell venture capital on its future https://mariannebluger.com/climate-technology-2-0-must-sell-venture-capital-on-its-future/ https://mariannebluger.com/climate-technology-2-0-must-sell-venture-capital-on-its-future/#respond Thu, 21 Oct 2021 12:14:01 +0000 https://mariannebluger.com/climate-technology-2-0-must-sell-venture-capital-on-its-future/ Like vanilla ice cream on a hot day, the Earthshot Award for Environmental Initiatives this week delivered a dollop of optimism for our warming planet. In a glittering ceremony in London, award winners from around the world told heartwarming stories of how they restored Bahamian coral reefs, reduced air pollution in India, generated clean energy […]]]>

Like vanilla ice cream on a hot day, the Earthshot Award for Environmental Initiatives this week delivered a dollop of optimism for our warming planet. In a glittering ceremony in London, award winners from around the world told heartwarming stories of how they restored Bahamian coral reefs, reduced air pollution in India, generated clean energy in Thailand , reused food waste in Italy and preserved the forests of Costa Rica.

But the title of the awards, which echoes President John F Kennedy’s mission to shoot astronauts to the moon, is somewhat misleading. Although they serve as an inspiration to local communities around the world, none of these initiatives are likely to have an impact big enough to mend the breach in our atmosphere. As the recent intergovernmental report on climate change made clear, only substantial and urgent reductions in greenhouse gas emissions and the removal of large amounts of carbon from the atmosphere can now make a difference. The real Earthshots will be disruptive technologies, such as fusion energy or massive carbon capture: these require billions of dollars in investment compared to the £ 1million prize awarded to each Earthshot winner. .

The challenge is how to turn promising technological innovations into successful global solutions. Here, governments have an indispensable role to play by funding basic research, coordinating international action and shaping markets by adopting widespread carbon pricing, for example. But the encouraging news is that venture capital is also playing an increasingly important role. According to PitchBook data released this week, more than $ 40 billion in venture capital was poured into climate technology companies from January 2020 to August 2021, already 37% above the total for the previous two years.

“There is so much momentum right now. We love it, ”said Katie Rae, Managing Director of The Engine, a Massachusetts Institute of Technology-backed venture capital firm that has invested in several climate technology start-ups.

According to her, the climate emergency means that we must reconfigure almost all of our economic systems: from the production and transmission of energy to the transport of people and goods, including cultivation, manufacturing and construction. . This is where the traditional handbook of the venture capital industry can be used to make speculative investments in risky businesses and evolve the technologies that work, says Rae. “Capitalism is part of the solution.

However, many venture capitalists remain scarred by the cleantech collapse at the turn of this century when they invested $ 50 billion in green businesses with dismal results. In his book Zero to oneSilicon Valley outspoken investor Peter Thiel dissected the reasons for the crash, identifying several flaws in investor thinking.

In short, a successful climate technology company must offer a clearly superior solution to a specific problem and be able to go global at the right time. “The world is not a laboratory: selling and delivering a product is at least as important as the product itself,” Thiel wrote.

Today’s climate tech entrepreneurs have had to endure the residue of investor skepticism and build businesses that offer a market-ready solution now rather than anticipating the adoption of large-scale carbon pricing, said Rae. Just as version 1.0 of most technologies can be “a little sloppy and without an economic basis”, version 2.0 of climate technology is proving to be more realistic and resilient. “Technology is important, but only if you understand how to bring it to market and make the money to evolve it,” she says.

Take the case of Carbo Culture, an American-Finnish start-up, which recently raised $ 6.2 million in venture capital with the aim of removing 1 billion tonnes of carbon dioxide from the atmosphere here. 2030. Its pilot reactor, which transforms biomass into biochar storing carbon in a stable form for a thousand years, has just started operations in California and the company plans to open its first commercial plant in Helsinki in 2024 to sell carbon. renewable heat.

Henrietta Moon, co-founder of Carbo Culture, says it’s hard to start a business, let alone one focused on new technology. “The best help we can get is from the VCs,” she says. “I think there is a huge, huge opportunity to fight climate change.”

The trend is encouraging, but the schedule – much like eating soothing ice cream on a hot day – is short. Like David Attenborough, said one of the Earthshot Prize board members, hope is eternal but we do not have eternity. “We have to do it now.”

john.thornhill@ft.com



Source link

]]>
https://mariannebluger.com/climate-technology-2-0-must-sell-venture-capital-on-its-future/feed/ 0
Robert Kraft and Jerry Jones among investors in $ 60 million venture capital fund focused on sports technology and entertainment https://mariannebluger.com/robert-kraft-and-jerry-jones-among-investors-in-60-million-venture-capital-fund-focused-on-sports-technology-and-entertainment/ https://mariannebluger.com/robert-kraft-and-jerry-jones-among-investors-in-60-million-venture-capital-fund-focused-on-sports-technology-and-entertainment/#respond Wed, 20 Oct 2021 11:00:00 +0000 https://mariannebluger.com/robert-kraft-and-jerry-jones-among-investors-in-60-million-venture-capital-fund-focused-on-sports-technology-and-entertainment/ Dallas Cowboys owner Jerry Jones, left, chats with New England Patriots owner Robert Kraft, before … [+] an NFL football game Sunday, Oct.17, 2021, in Foxborough, Mass. (AP Photo / Steven Senne) ASSOCIATED PRESS Drive by DraftKings, a Boston-based venture capital firm, has raised $ 60 million for its first fund, which invests in sports […]]]>

Drive by DraftKings, a Boston-based venture capital firm, has raised $ 60 million for its first fund, which invests in sports technology and entertainment companies.

Investors in the fund include the Kraft Group, which owns the New England Patriots; Jerry Jones, owner of the Dallas Cowboys; Todd Boehly, who owns a stake in the Los Angeles Lakers, Los Angeles Dodgers and Los Angeles Sparks; and Madison Square Garden Sports Corp.

MSG
, owner of the New York Knicks and New York Rangers.

Drive was formed two years ago by four founding partners: DraftKings Inc., better known as a fantastic sports and sports betting company, and venture capital firms Catalyst, Accomplice and Boston Seed Capital. It was originally conceived as a way to help athletes learn about the venture capital industry and technology investing and connect them with sports technology companies. He also used his own capital to make small investments in startups. But last year, Drive changed focus to being a pure venture capitalist and started raising funds.

So far, Drive has invested in 13 companies, mostly in fundraising. But he does occasionally participate in later rounds, including investing last year in a $ 100 million Series E round for Whoop, which valued the wearable tech company at $ 1.2 billion.

The fund plans to invest more this year, next year and through 2023. It will continue to primarily support start-up companies, but it will save capital for investments in subsequent cycles of these companies.

“Given our strategic position, we have sought to find great companies that generate great returns and where we can help them at any stage,” said Meredith McPherron, Managing Director and Managing Partner of Drive. “We have a lot of business flow. We watch businesses every day. We will continue to invest where we see opportunities that present themselves and that make sense.

McPherron, a Harvard University football and lacrosse player in the late 1980s, joined Drive in July 2020 from Glasswing Ventures, a start-up venture capital firm where she was a partner. Over the past 30 years, she has held several leadership positions in operations, marketing and investment.

At Drive, McPherron has focused on four main areas: human performance; sports and games; media and fan engagement; and data analysis and monetization. Examples of the company’s investments include Guidesly, a mobile platform that connects outdoor enthusiasts with guides for fishing trips; Papaya Gaming, a mobile games company; and Just Women’s Sports, a media startup focused on women’s sports.

Drive has also assembled a group of nine advisers who have experience as athletes and executives, many of whom have invested in the fund. These include Larry Fitzgerald, a 17-year NFL wide receiver; Hilary Knight, a hockey player who was a member of the United States

USM
team that won the gold medal at the 2018 Olympics; Theo Epstein, former senior executive in baseball operations with the Boston Red Sox and Chicago Cubs; and James Blake, a former professional tennis player.

“When we launched the strategy for the venture capital fund, we knew it would be important to have an advisory group with in-depth knowledge of the space we are investing in,” said McPherron.


Source link

]]>
https://mariannebluger.com/robert-kraft-and-jerry-jones-among-investors-in-60-million-venture-capital-fund-focused-on-sports-technology-and-entertainment/feed/ 0
China’s changing regulatory environment doesn’t stop a venture capital frenzy – TechCrunch https://mariannebluger.com/chinas-changing-regulatory-environment-doesnt-stop-a-venture-capital-frenzy-techcrunch/ https://mariannebluger.com/chinas-changing-regulatory-environment-doesnt-stop-a-venture-capital-frenzy-techcrunch/#respond Tue, 19 Oct 2021 15:03:22 +0000 https://mariannebluger.com/chinas-changing-regulatory-environment-doesnt-stop-a-venture-capital-frenzy-techcrunch/ China Securities regarding its technological market have not been lenient in recent months. Not that they were unfair. China’s tech market has been rocked by a wave of regulatory action in recent quarters that has changed the business landscape amid the country’s government crackdowns on other areas of domestic activity. Tech titans have been hit […]]]>

China Securities regarding its technological market have not been lenient in recent months. Not that they were unfair.

China’s tech market has been rocked by a wave of regulatory action in recent quarters that has changed the business landscape amid the country’s government crackdowns on other areas of domestic activity. Tech titans have been hit with fines and business model overhauls – business model terminations, in the case of many edtech companies – while certain cultural elements like the culture of celebrity fans and the media were also attacked.


The Exchange explores startups, markets, and money.

Read it every morning on Extra Crunch or receive The Exchange newsletter every Saturday.


You can imagine that a broad push from a central government to better control both its national economy and its mind would not be conducive to fundraising and overall startup activity. And even.

When The Exchange recently took a look at China’s venture capital market following some of its national government’s regulatory moves, things looked surprisingly stable. Since then, CB Insights data spanning the entire third quarter period has been even more compelling: With the exception of a single oversized 2018 cycle, the third quarter of 2021 was the best three-month period for startups. Chinese.

And not just in the value of the towers they lifted – they also lifted more towers.

We were surprised. But that’s what makes data useful: No matter what you’re waiting for, what actually happened will give you pause for thought.

This morning we analyze the data, take a look at the early rounds to better understand where the money is going, and, with the help of tech analyst and Chinese angel investor from TechBuzzChina, Rui Ma – try to understand what is going on.

Let’s talk about China!

Chinese monster Q3

Of course, Alibaba’s stock value fell from a 52-week high of $ 319.32 per share to just $ 166.82. Didi went from a recent local maxim of $ 18.01 to $ 8.24. And Tencent Music’s value slumped from $ 32.25 – its last 52-week high – to just $ 7.72 per share (all data via Yahoo Finance).

But the drop in stock prices of major tech companies has apparently done nothing to dampen interest in Chinese tech startups.



Source link

]]>
https://mariannebluger.com/chinas-changing-regulatory-environment-doesnt-stop-a-venture-capital-frenzy-techcrunch/feed/ 0
Jefferson Health partners with digital health venture capital firm https://mariannebluger.com/jefferson-health-partners-with-digital-health-venture-capital-firm/ https://mariannebluger.com/jefferson-health-partners-with-digital-health-venture-capital-firm/#respond Mon, 18 Oct 2021 15:17:13 +0000 https://mariannebluger.com/jefferson-health-partners-with-digital-health-venture-capital-firm/ Jefferson Health on Monday announced an innovation partnership with General Catalyst, where the nonprofit healthcare system will be able to tap into a range of tech companies to support its digital transformation efforts. Philadelphia-based Jefferson Health will have access to companies in the General Catalyst Medicare Network, a group that includes health technology companies in […]]]>

Jefferson Health on Monday announced an innovation partnership with General Catalyst, where the nonprofit healthcare system will be able to tap into a range of tech companies to support its digital transformation efforts.

Philadelphia-based Jefferson Health will have access to companies in the General Catalyst Medicare Network, a group that includes health technology companies in which the company has invested. Medicare describes a shift away from so-called “sickness care” and towards a healthcare system that provides more proactive and preventive patient care.

Jefferson Health will leverage the network to identify and deploy tools that improve the patient experience and virtual care, ease its transition to value-based care, and diversify its revenue streams, among other goals. This includes integrating tools between companies and co-developing tools with them, rather than buying single products.

“While we are co-developing – and in some cases co-investing -[it] really creates a whole different model [for our innovation pillar]”said Dr. Stephen Klasko, CEO of Jefferson Health and President of Thomas Jefferson University, on a call with reporters Monday.

Klasko announced last week that he would be retiring at the end of the year.

The partnership builds on previous collaborations between Klasko and Hemant Taneja, Managing Partner of General Catalyst. Last year, Klasko and Taneja co-authored a book outlining their vision for Medicare and the need to move towards a system that prioritizes preventative care.

The new partnership is unrelated to Health Assurance Acquisition Corp., a specialist acquisition company that Klasko and Taneja formed with former Livongo executives last year, according to Taneja.

Jefferson Health is still in the “early stages” of partnering with General Catalyst and has yet to determine what the financial details of the work will look like, according to Patricia Wellenbach, chairman of the health system board. Ideally, the technologies and services resulting from this partnership will reduce the cost of care.

“We are exploring all the financial parameters that surround it,” she said. “There will be more details to come.”

General Catalyst’s health insurance network includes software companies like Commure, Olive, Tendo, and Transcarent. According to Taneja, General Catalyst intends to perform a program management function, helping to connect companies in the network so that their products can exchange data with each other and be part of an integrated ecosystem.

Tendo, a digital engagement company, launched with support from Jefferson Health and General Catalyst earlier this year. Jefferson Health works closely with Tendo and enlists the company to help it adapt or even create engagement tools for patients and clinicians when it identifies gaps it needs to fill, according to Klasko. This can fuel the development of new products that Tendo can sell to other customers in the healthcare system.

The partnership with Jefferson Health is part of General Catalyst’s effort to reinvent the way a venture capitalist works with finance companies and helps them build them.

“Healthcare transformation is too big for a single business, it’s really going to take an ecosystem,” Taneja said. “We are very grateful to the leadership at Jefferson for being partners in making this, first and foremost, here in Philadelphia, and then making it a model for the rest of the country.”

General Catalyst was the number one investor in digital health in the third quarter of 2021, according to data from Digital Health Business & Technology, as it participated in nine funding rounds. The company has enjoyed great success as an early-stage investor in Livongo – which has since been acquired by Teladoc Health – and Oscar, as well as an investor in companies like Airbnb, Grammarly, Kayak and Snap and Warby Parker outside of care. health.


Source link

]]>
https://mariannebluger.com/jefferson-health-partners-with-digital-health-venture-capital-firm/feed/ 0
Thomson Reuters Creates $ 100 Million New Venture Capital https://mariannebluger.com/thomson-reuters-creates-100-million-new-venture-capital/ https://mariannebluger.com/thomson-reuters-creates-100-million-new-venture-capital/#respond Sat, 16 Oct 2021 15:14:43 +0000 https://mariannebluger.com/thomson-reuters-creates-100-million-new-venture-capital/ Thomson Reuters announced the creation of a new $ 100 million enterprise venture capital (CVC) fund. These are the details. Thomson Reuters announced the creation of a new $ 100 million enterprise venture capital (CVC) fund to support and accelerate innovation for the “future of professionals”. This fund will operate under the name “Thomson Reuters […]]]>

  • Thomson Reuters announced the creation of a new $ 100 million enterprise venture capital (CVC) fund. These are the details.

Thomson Reuters announced the creation of a new $ 100 million enterprise venture capital (CVC) fund to support and accelerate innovation for the “future of professionals”. This fund will operate under the name “Thomson Reuters Ventures” and will focus on investment and portfolio support for companies creating breakthrough innovations that will allow professionals to operate more productively and with better understanding.

Recognized as a content technology leader in the legal, tax and accounting, risk, fraud, compliance and information and media markets, clients depend on Thomson Reuters to provide reliable solutions to manage and develop their activities. And Thomson Reuters Ventures builds on that commitment by investing in and supporting the larger ecosystem focused on these same challenges.

Thomson Reuters Ventures will invest primarily in early stage companies via Series A and B with a broad focus covering legal, tax and accounting, risk, fraud and compliance, news and media, business and corporate. adjacent domains.

KEY QUOTES:

“I am delighted to add Thomson Reuters Ventures as another way to invest in innovation and to serve our markets. Our customers are the most informed professionals in the world and they need reliable, precise and efficient solutions more than ever. We are excited to partner with founders and entrepreneurs who share these goals, and to continue to deliver emerging solutions as an industry leader.

– Steve Hasker, President and CEO of Thomson Reuters

“The ultimate goal of Thomson Reuters Ventures is to invest in innovation and serve customers. Whether it’s AI and machine learning innovations that enable professionals to better predict outcomes, identify and act on trusted information, or automate processes for greater high efficiency, the overall objective remains the same. We are focused on identifying and supporting innovative companies that can help our clients deliver more value to their clients. “

– Pat Wilburn, Chief Strategy Officer of Thomson Reuters and Executive Director of Thomson Reuters Ventures


Source link

]]>
https://mariannebluger.com/thomson-reuters-creates-100-million-new-venture-capital/feed/ 0
The government invests 15.6 million euros in a venture capital fund targeting startups https://mariannebluger.com/the-government-invests-15-6-million-euros-in-a-venture-capital-fund-targeting-startups/ https://mariannebluger.com/the-government-invests-15-6-million-euros-in-a-venture-capital-fund-targeting-startups/#respond Fri, 15 Oct 2021 14:29:21 +0000 https://mariannebluger.com/the-government-invests-15-6-million-euros-in-a-venture-capital-fund-targeting-startups/ The government is investing 5.6 billion forints (15.6 million euros) in a new Euroventures venture capital fund management fund through state-owned venture capital fund manager Széchenyi Funds, said the Minister of Finance Mihály Varga. Széchenyi Funds will raise capital in Euroventures latest and fifth fund, making it its largest investor. The new fund targets startups […]]]>

The government is investing 5.6 billion forints (15.6 million euros) in a new Euroventures venture capital fund management fund through state-owned venture capital fund manager Széchenyi Funds, said the Minister of Finance Mihály Varga.

Széchenyi Funds will raise capital in Euroventures latest and fifth fund, making it its largest investor. The new fund targets startups after their initial launch and in their growth phase, the minister said.

The money will go mainly to technology companies specializing in information technology, biotechnology or environmental technologies. Export capacity will be an important factor, as they seek out companies with products or services that can be competitive in the international market, Varga said.

Related article

The Minister of Finance estimates GDP growth in 2022 at 5.5-6 pc

The Minister of Finance estimates GDP growth in 2022 at 5.5-6 pc

Hungary’s economic output has returned to 2019 levels, which is an “excellent result”, given that the tourism industry, which accounts for 8-10% of GDP, has still not fully recovered, has said Varga.Continue reading

While restarting the economy, the government wants to strengthen as many high value-added companies as possible and increase competitiveness, he added.

The minister noted that in July, the government had already launched a 10 billion forint support program for local startups in their launch phase through the Széchenyi funds.

Varga said there are over 1,000 startups in Hungary with some 26,000 people on the payroll.

Featured Image via Zoltán Balogh / MTI


Source link

]]>
https://mariannebluger.com/the-government-invests-15-6-million-euros-in-a-venture-capital-fund-targeting-startups/feed/ 0
While African venture capital is booming, are the founders losing out? https://mariannebluger.com/while-african-venture-capital-is-booming-are-the-founders-losing-out/ https://mariannebluger.com/while-african-venture-capital-is-booming-are-the-founders-losing-out/#respond Fri, 15 Oct 2021 13:42:10 +0000 https://mariannebluger.com/while-african-venture-capital-is-booming-are-the-founders-losing-out/ Former City of London sugar trader Jihan Abass knows the sweet taste of success. A special moment for the 27-year-old entrepreneur to savor came in May 2021, when his Nairobi-based insurance technology startup Lami raised its first round of institutional funding. Initially funded by personal savings, the company raised $ 1.8 million from investors who […]]]>

Former City of London sugar trader Jihan Abass knows the sweet taste of success. A special moment for the 27-year-old entrepreneur to savor came in May 2021, when his Nairobi-based insurance technology startup Lami raised its first round of institutional funding. Initially funded by personal savings, the company raised $ 1.8 million from investors who share the founder’s belief in the power of mobile technology to deliver large-scale financial products to an underserved market.

Jihan Abbas’s story is remarkable, in part because it remains an exception. Venture capital is booming, but it is flowing en masse to male founders: In 2020, 85% of venture capital investments in the United States went to companies that did not have a woman on the founding team. . Africa has also seen a remarkable increase in startup funding, with total investment nearly quadrupling between 2017 and 2020. Yet funding for women founders has remained slow, as a new report from the Africa Gender Innovation Lab suggests. World Bank.

In In search of equity, a collaboration with emerging market intelligence firm Briter Bridges, we quantify Africa’s gender gap in startup finance and explore some of the factors behind it. For the report, we leveraged Briter’s leading industry platform to comb through years of transaction flow data and interviewed a random sample of 172 entrepreneurs operating across the continent. We also spoke to founders like Jihan for testimonials from women fundraising (or struggling to do so) in a male-dominated industry.

We find that only 3% of seed funding since 2013 has gone to all-female founding teams, compared to 76% for all-male teams. This amount is disproportionate: all-female teams represent 11% of companies for which we have demographic information. And While investments in the African tech space have skyrocketed over the past decade, the proportion going to all-female founding teams has changed very little.

Our research also highlights remarkable differences between startups led by male and female founders. On the one hand, women founders are under-represented in the sectors that attract the most funding. This is partly because there are more male founders than female founders in the African tech space in general. However, female founders are also more likely to operate in sub-sectors that attract less investment, such as edtech or healthtech. Still even when working in areas of high investor interest, all-female teams remain less likely to receive funding than all-male teams, and they receive smaller amounts if they do.

Picture

Interestingly, the male and female founders in our sample of 172 entrepreneurs also followed different funding paths. The female founders in our sample were less likely to initiate equity investments than their male counterparts. Conversely, female founders were more likely to seek bank loans or prefer growth from retained earnings. Among the companies that raised external funding, however, those with all-male founding teams received higher amounts of equity and debt.

Picture

We cannot say whether funding preferences are a cause or a consequence of the funding gap – or neither. The report also raises other questions: We do not examine how the financing landscape varies between the major regional hubs of the African tech scene, nor the role played through investors. Ongoing research from the Gender Innovation Lab in Ethiopia – such as a longitudinal study of women entrepreneurs, experimental research on bias in the financial sector, and a diagnostic of the digital economy – could help us better understand some of these problems soon.

In the meantime, there are a few practical points for anyone working to promote gender equality in startup ecosystems in Africa. Encouraging more women to start businesses may be at least as important as supporting those who are already doing so – but the choice of sector matters. A more inclusive entrepreneurial culture would help accommodate the diverse backgrounds and aspirations of founders, as would funding options that go beyond traditional debt and equity.

More importantly, improving access to funding for women founders deserves to be a priority for all. When all-male founding teams receive $ 25 for every $ 1 donated to all-female teams, Africa lacks great entrepreneurial talent. And founders like Jihan Abass wouldn’t be less impressive if there were more of them.

Disclaimer

World Bank Group published this content on October 15, 2021 and is solely responsible for the information it contains. Distributed by Public, unedited and unmodified, on October 15, 2021 01:41:06 PM UTC.



Source link

]]>
https://mariannebluger.com/while-african-venture-capital-is-booming-are-the-founders-losing-out/feed/ 0
Venture capital has generated big returns at Duke, MIT and other university endowments https://mariannebluger.com/venture-capital-has-generated-big-returns-at-duke-mit-and-other-university-endowments/ https://mariannebluger.com/venture-capital-has-generated-big-returns-at-duke-mit-and-other-university-endowments/#respond Thu, 14 Oct 2021 17:05:00 +0000 https://mariannebluger.com/venture-capital-has-generated-big-returns-at-duke-mit-and-other-university-endowments/ After years of mediocre gains against the S&P 500, university endowments are posting their best returns in decades, thanks to the stock market boom and strong performance from venture and private equity. College endowments are now delivering stunning investment returns for the fiscal year ended June 30. The Massachusetts Institute of Technology said Thursday its […]]]>

After years of mediocre gains against the S&P 500, university endowments are posting their best returns in decades, thanks to the stock market boom and strong performance from venture and private equity.

College endowments are now delivering stunning investment returns for the fiscal year ended June 30. The Massachusetts Institute of Technology said Thursday its fund gained 55.5%, adding $ 9 billion to the endowment, now valued at $ 27.4 billion. Brown University said it gained 51.5%, bringing the value of its fund to $ 6.9 billion. The public equity portion generated a gain of 58.9% while private equity had a return of 86.8%. Washington University in St. Louis has one of the best returns among schools, at 65%.

Harvard University said Thursday that its $ 53.2 billion fund gained 33.6%, boosted by a 77% return on its private equity portfolio comprising venture capital and a 50% gain in its public actions. The Harvard Fund, America’s largest university endowment, lagged behind its peers due to its more conservative approach.

The excellent results represent a big victory for the so-called endowment model championed by Yale University which includes large allocations to illiquid asset classes like venture capital and private equity and relatively few stocks. .

Endowments have not been helped, however, by heavy weightings in alternatives over the past 10 years, when stocks have had a great run. School funds posted an annualized average of 7.5% over the 10 years through June 30, according to a 2020 study by the National Association of College and University Business Officers and TIAA. The S&P 500 posted an annualized return of 14.8% over the period.

“It’s the rebirth of the endowment model,” says Larry Kochard, former director of investments at the University of Virginia Investment Management Co. who now oversees investments at Makena Capital, which has $ 20 billion in assets. “The endowment model has undergone a lot of setback over the past decade, but it reinforces the fact that you’ll get bigger returns if you’re focused on the long term.”

Since NP “Narv” Narvekar took over as Harvard Management Co. in December 2016, he has restructured the organization, including increasing private equity. Harvard had 33% allocated to private equity, up from 20% in fiscal 2019.

“US stocks have done very well, and venture capital has done even better,” said Margaret Chen, global head of endowment and foundation practice at investment firm Cambridge Associates. “You can see the outperformance of those who had a higher allocation to private investment for a long time. “

According to preliminary data from Cambridge, endowments for colleges of all sizes gained a median of 33.3% in fiscal 2021. The median return for funds with assets over $ 1 billion was 36 %. Endowments easily topped the S&P 500, which returned 41%, with dividends reinvested.

The 2021 returns took him out of the stadium compared to past performances. The endowments were hammered at the start of the outbreak of the pandemic. They gained 1.8%, on average, in fiscal 2020, according to the study by Nacubo and TIAA. The S&P 500 gained 7.5%, including dividends reinvested, during the period.

Yale University, with $ 31.2 billion, has yet to report. David Swensen, the fund’s longtime endowment manager, has long favored more illiquid asset classes like private equity, venture capital, natural resources and real estate over public stocks.

Swensen’s widely imitated alternatives-heavy approach was known as the Yale model. Swensen passed away in May and Yale recently appointed Matthew Mendelsohn, who has worked for the foundation since 2007 and headed its venture capital portfolio, to succeed him as chief investment officer.

Northwestern University’s endowment of $ 15 billion increased 42.2% during the year. “A lot of things have worked,” said Amy Falls, who was appointed the foundation’s chief investment officer in February, in an interview. “We are satisfied with the performance of our equity managers, and venture capital has blown the doors. She said the venture capital portfolio gained 115% during the year.

The Chancellor of Washington University in St. Louis, Andrew D. Martin, said in a statement last month that the 65% endowment return was a “watershed moment for us as an institution” at the time. support for its academic initiatives. The return added more than $ 5 billion to the endowment, now valued at $ 15.3 billion.

Investment director Scott Wilson, who took over the fund in 2017, said in an interview that the global equity portfolio gained 71.5% and that investments in buyouts, venture capital, troubled debt and investment in growth stocks had increased by 82%.

Nashville-based Vanderbilt University gained 57.1%, adding $ 4 billion to its endowment, bringing the value to $ 10.9 billion. Duke University’s $ 12.7 billion endowment rose 55.9%. Bowdoin College in Brunswick, Maine, rose 57.4%, valuing the fund at $ 2.7 billion.

Among Ivy League funds, the University of Pennsylvania’s $ 20.5 billion fund was up 41%. Cornell University’s endowment rose 41.9%, pushing its fund’s value to a record high of $ 10 billion.

Venture capital is on its way to seeing its best returns since the dot-com boom in the late 1990s, the Wall Street Journal reported. Fast-growing companies have attracted investors, especially in technology, where progress accelerated during the pandemic as more people worked remotely. Companies are staying private longer, and initial public offerings are more important than ever.

“Technology touches everything we do in our lives,” Chen says. “The development of technology has made giant strides since the pandemic. ”

The last time college endowments saw this kind of comeback was during the dotcom boom of the 1990s, and just before the crisis. The median return on endowments in 1999 was 37.7%, according to Cambridge.

Endowments with more than $ 1 billion in assets had an average venture capital allocation of 15%, according to the 2020 study by Nacubo and TIAA.

This allocation dropped significantly for smaller funds – those managing $ 101-250 million had 6% venture capital. “You can see the potential for outperformance for those who have long had a higher allocation to private investment,” said Chen of Cambridge.

Another indication of good results is that schools are also significantly exceeding US endowments, which posted a median of 27.2% for fiscal 2021, before fees, the best performance since 1986, according to data from the Wilshire Trust Universe Comparison. Service. College endowment fund returns are net of fees.

Harvard’s performance has lagged behind other school funds because over the past decade, endowment “has taken less risk than many of our peers and establishing the right level of risk tolerance for it. ‘university in the years to come is an essential stewardship responsibility, ”Narvekar wrote in Harvard’s annual report. report, released Thursday.

“Given the extraordinarily strong performance of the market as a whole over the past year, a significantly higher level of portfolio risk would have significantly increased HMC’s returns,” he wrote.

Narvekar, like other endowment fund managers, pointed out that the performance stems from investments made years ago in more illiquid alternatives.

“Building venture capital portfolios is a multi-year effort for several reasons: the diversification of vintages, a very careful manager selection and the years it takes for these exceptional managers to skillfully invest our capital,” Narvekar wrote. “Perhaps unsurprisingly, a very large part of the huge gains of venture capital funds over the past year has been linked to investments made over ten years ago.”

Many school endowment managers have warned of expectations that such a stellar performance will continue every year. “As experienced investors understand, the Harvard endowment will not produce returns of 33.6% each year,” Narvekar wrote. “Indeed, there are bound to be negative years, hence the importance of understanding risk tolerance.” The fund gained 7.3% in 2020.

Investment gains over a year like fiscal 2021 “are scarce and markets tend to stabilize over time,” Cornell chief investment officer Kenneth Miranda said in a statement on Thursday.

“It has been an extraordinary year, in part because of a unique constellation of events,” said Miranda, who cited the market rebound from pandemic lows, supported by US monetary and fiscal policy. “We have a multi-year, almost infinite time horizon, and that money must be managed over generations of Cornell students, faculty, staff and research goals, through bull markets and bear markets.”

Write to Mary Romano at mary.romano@barrons.com


Source link

]]>
https://mariannebluger.com/venture-capital-has-generated-big-returns-at-duke-mit-and-other-university-endowments/feed/ 0
3% of venture capital goes to African startups founded by women – Quartz Africa https://mariannebluger.com/3-of-venture-capital-goes-to-african-startups-founded-by-women-quartz-africa/ https://mariannebluger.com/3-of-venture-capital-goes-to-african-startups-founded-by-women-quartz-africa/#respond Wed, 13 Oct 2021 14:18:37 +0000 https://mariannebluger.com/3-of-venture-capital-goes-to-african-startups-founded-by-women-quartz-africa/ On a milestone day in funding African tech, two startups founded by women announced on Oct. 7 that they had each raised at least $ 2 million from venture capital firms. Nigeria-based Klasha operates a payment system that online stores like ASOS can integrate to receive local currency payments from African buyers, while Ejara is […]]]>

On a milestone day in funding African tech, two startups founded by women announced on Oct. 7 that they had each raised at least $ 2 million from venture capital firms.

Nigeria-based Klasha operates a payment system that online stores like ASOS can integrate to receive local currency payments from African buyers, while Ejara is a Cameroonian retail investment platform for crypto currencies. The two join an impressive cohort of African fintech companies founded by women who have raised at least $ 1 million this year.

Some of the founders of these companies are among the most innovative African minds of 2021. But their companies remain outliers in a male-dominated funding environment, as new research from Briter Bridges and the Africa Gender Innovation Lab suggests. the World Bank.

Women-led startups are a fraction of a thousand

The report examined 1,112 companies operating in Africa that received venture capital funding between 2013 and May of this year. These companies raised $ 1.7 billion in 1,585 deals that represented less than $ 20 million per deal. This benchmark was used because the report focused on seed finance in Africa.

Briter’s analysis found that 75% of the 1,112 companies had all-male teams, 9% of all-female teams, and 14% had a mix of male and female founders. Only 3% of the $ 1.7 billion went to all-female founding teams, with 76% to all-male teams.

One inference here is that even with an already low share of the number of companies funded, startups led by women do not receive a commensurate share of available funding.

It might be tempting to say that this gap is skewed by the relatively darker ages of the past decade, but the trend has been on since last year. According to Briter Bridges and the World Bank, 84% of funding in 2020 always went to all-male founding teams versus 3% to all-female teams, with mixed teams getting 13%.

As with the general trend, only 3% of startup funding from fintech, the continent’s most funded sector, goes to all-female startup teams.

What is to blame?

Jihan Abass, founder and CEO of Kenyan insurance company Lami, told reporters that “the lack of female founders is in part due to the fact that there are not many women in the financial space and technological in general “.

She sees potential solutions by encouraging more girls to choose careers in science, technology, engineering and math (STEM) and by presenting entrepreneurship to girls as viable career paths. These two actions could help increase the presence of women in companies who can then found startups. These are important because businesses run by women tend to hire more women in staff and managerial positions, as the report suggests.

A pipeline problem may not be the only explanation for the low share of total venture capital funding going to women-led startups.

The report cites a “confidence gap” between the female and male founders, with the latter supposedly not having as much self-confidence to attract investors and expect their businesses to be profitable in the long run. But it could be a symptom of another cause, or the product of biased investors who tend to associate the traits of successful entrepreneurship with men rather than women. Sometimes this leads to female founders being over-supervised instead of receiving money, a situation that has led to the rise of female-focused venture capital funds in Africa.

More research is needed to understand the gender financing gap in Africa. For now though, it’s clear that a 3% return for all-female startups is a cause for concern on a continent where women make up 58% of the self-employed population.

Sign up for the Quartz Africa Weekly Brief here for news and analysis on African business, technology and innovation delivered to your inbox.


Source link

]]>
https://mariannebluger.com/3-of-venture-capital-goes-to-african-startups-founded-by-women-quartz-africa/feed/ 0