Regtech in 2016. Investor interest in genomics. Corporates in HR tech.
What up dog?

Hi there,

If you attended our Future of Fintech Conference in NYC, you heard Fred Wilson of USV say that corporate VCs are the devil and that big corporations should just buy startups
not invest in them. BTW, the video is awesome cuz Fred is so honest and fired up.

Obviously, Fred didn't paint the rosiest of pictures for corporate VC and corporate innovation.

So at The Innovation Summit, we wanted to not only identify the industries of tomorrow (AI, advanced manufacturing, algorithmic medicine, etc.), but we also wanted to dig into how corporations can own that future (vs the typical disruption narrative).

And so I'm excited to have Mark Suster, managing partner at Upfront Ventures, joining us to discuss how corporations can actually innovate and work with the startup and VC communities (and not just do the typical, ineffectual corporate innovation theater nonsense we see so often).

Mark doesn't pull punches and so I'm excited for this session cuz he'll offer up some hard medicine and tactical, tangible guidance on what works. 

Join us at The Summit.

If you are not familiar with Mark's very popular blog, Both Sides of the Table, you should check it out. His post on people who over-introduce is one of my favorites and is in The Blurb below.

A musk-win situation

In what some have described as "Wrestlemania for tech geeks," we now have a winner in our most admired tech CEO bracket.

Elon Musk handily beat Steve Jobs, and here is how it wrapped up.

For all you Elon fanboys/fangirls, here is the final bracket with Musk that you can turn into a poster for your cube or that you can use for your phone's background image.

Always be compliant

Over the past 5 years, an increasing number of startups have sprouted up that aim to use technology to tackle compliance and other regulatory requirements
a space also referred to as regtech. In Q3’16, regtech deal activity reached its third-highest quarterly deal total with $165M raised across 24 deals.

This isht is frightening

Could this be what is holding back tech investment into the Pacific Northwest?

Gene scene

We analyze the genomics space to identify active investors and where they are placing their bets. Among the top investors, there are both biotech and tech accelerators, health and tech corporates, and traditional venture firms.

There is not a liberal America and a conservative America

There is just a labrador America.

Increasing productivity

We analyzed corporate and CVC investment into private HR tech companies since 2012. Corporate deal count to HR tech startups is at a record high, with 46 deals totaling $781M in funding in 2016 (as of 10/27/16).

So, is your mom an entrepreneur?

Pattern matching is the blunt instrument of venture capital. You went to Stanford, worked at Google, are a young dude, etc. 

Pattern. Matched.

The one thing I rarely hear in discussions of pattern matching is if a founder or founding team's parents were entrepreneurial.

And so I was interested in a recent paper I stumbled upon called "Why Do Entrepreneurial Parents Have Entrepreneurial Children?" by Matthew J. Lindquist, Joeri Sol, and Mirjam Van Praag.

The title sort of gives it away (full PDF link in The Blurb), but the study looks at biological and adopted children of entrepreneurs and whether entrepreneurship is genetic (nature) or something that is taught (nurture).

They find that having entrepreneurial parents definitely drives a greater chance of children becoming entrepreneurs. They also find that nurture is more important to becoming an entrepreneur than nature.

The Industry Standard

CB Insights data is the most trusted by those in the industry and the media. A few recent hits.

Forbes. Tanya Prive (@tanyaprive1) on how to fundraise for your business and beat the odds with a reference to CB Insights research on the venture capital funnel.

China Money Network. Li Dongmei covers China's investment into the US and cites CB Insights funding and deals data.

Reuters. Heather Somerville (@heathersomervil) dives into the changing state of the drone industry and refers to CB Insights investment data.

Hope you had a terrific Tuesday.

I love you.


P.S. Join us on December 6th as we look at how corporates and startups are shaping the future of retail. Sign up for the briefing here.

Regtech deal activity set to hit new high

Regtech startups have raised roughly $2.3B across 317 deals since 2012. Deal activity is on track to set a new high in 2016. See the data.
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Investors of all types spot opportunity in genomics

The number of corporates — like Illumina and Roche — investing in genomics startups has increased more than 2X between 2013 and last year. Read about it.
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Corporate-backed HR tech investments spike

Corporate involvement in deals to HR tech is on track to grow 33% over 2015. Salesforce Ventures and Google Ventures lead the pack in investments. See the data.
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The Blurb

A curated mix of articles on private companies, venture capital, emerging industries, and innovation.

Going public vs being acquired. A look at when/why a company may IPO, advantages/disadvantages of an IPO vs being acquired, factors that make a company ready for an IPO, and the IPO process itself.

How do VCs measure their success? Elizabeth Yin (@dunkhippo33) on why you should pay attention to how VCs behave and their incentives.
Elizabeth Yin

The business of creativity
From business to creativity to corporate culture, former CFO of Pixar Lawrence Levy (@lawrence_levy) shares his story and experiences.

The next great SaaS company. Aaref Hilaly (@aaref) on why the next great SaaS company will look nothing like Salesforce.

Hard work and decisive moments. Chris Yeh (@chrisyeh) believes a combination of hard work and decisive moments lead to success.
Adventures in Capitalism

Why do entrepreneurial parents have entrepreneurial children? A look at intergenerational transmission of entrepreneurship.

The corrosive nature of over-introducers. Mark Suster (@msuster) shares advice on making connections and learning when to say "no."
Both Sides of the Table
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