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Funding climates in China and India. RSA cybersecurity conference. 156 startup failure post-mortems.
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The 1%

Hi there,


With all the chatter about startup funding woes and a tech bubble, this shareholder letter from Jeff Bezos in 1997 talking about thinking for the long-term is great reading.


Slowdown in the east

Venture funding and deal activity in Asia took a serious dip in Q4’15 compared to Q3’15, especially in Asia's two largest markets. We dig into global investment data and look at the funding climates in China and India.


 


Another victim of the Series A crunch

Yeezus. 





RSA watch list

With the RSA Conference starting later this month, we thought it would be useful to determine which of the thousands of exhibitors at the annual cybersecurity event have the most momentum going into the show. Check out the 10 companies that you should be talking to at the conference.

 


Time to move to Arkansas

Interesting stats by the Economic Policy Institute on what it takes to be in the top 1% of your state.




Death of a startup 

We see how startup founders and investors describe their failures in our updated compilation of startup post-mortems.




Still love you.

Anand
@asanwal

P.S. Thanks to Mintz Levin for sponsoring our upcoming insurance tech dinner in NYC on February 25th.

If you're a senior strategy, M&A or investment professional at an insurance company or a VC/PE investor who is actively investing (you've done deals) in insurance, we've got a few spots left. Request an invite here.

Deals and funding to startups sputter in India and China

Deal volume in China fell nearly 39% quarter-over-quarter in Q4'15, a drop 3x steeper than the global pullback. See the data.
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156 startup failure post-mortems

No survivorship bias here. A compilation of startup failure post-mortems by founders and investors. See the list.
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10 high-flying companies to watch at the RSA 2016 cybersecurity conference

These are some of the companies you should be watching at RSA based on CB Insights' predictive Mosaic scores. See the companies.
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Notable Deals From This Past Week

We tracked 655 financings and exits totaling $3.2B in the last week. Here are 10 notable deals. To see them all, login to CB Insights or create an account here.

1. Uber raises $200M from LetterOne (L1) for emerging markets
Founded in 2013, L1 is a Luxembourg-based fund headed by Russian investor Mikhail Fridman that's seeking to deploy $2-3B into late-stage tech deals over the next few years. Uber CEO Travis Kalanick said the investment relationship is strategic: "L1’s knowledge of emerging markets will be crucial in helping us make cities more accessible, opening up more possibilities for riders and more opportunities for drivers."

2. India-based deal site Snapdeal raises $200M Series F
The round put the company at a valuation between $6.5B and $7B.

3. Indoor skydiving business iFly raises $153M round
The Austin, Texas-based entertainment company raised from KSL Capital Partners, boasting a "thrilling experience for ages 3 to 103."

4. Fuze raises $112M Series E
The cloud conferencing platform Thinking Phones will change its name to Fuze, the name of the cloud video company it acquired in Q4'15. The company raised the round from Bessemer Venture Partners, Summit Partners, and Technology Crossover Ventures.

5. Gene therapy company AveXis raises $95M at IPO
The IPO put the Deerfield, Illinois-based company at a valuation of $438M.

6. First African unicorn minted with Africa Internet Group's $83.5M round
Founded in 2012, the Lagos, Nigeria-based company has created 71 portfolio companies in eight different e-commerce verticals. The recent financing was provided by AXA Group.

7. Renew Financial raises $70M Series E
The renewables financing company raised from Angeleno Group, Apollo Investment Management, Claremont Creek Ventures, LL Funds, NGEN Partners, and Prelude Ventures.

8. Wadi raises $67M Series A from Al Tayyar Travel Group
The e-commerce marketplace operating in the UAE and Saudi Arabia was originally the product of the Middle East Internet Group (MEIG), a joint venture of Rocket Internet and South African telecom MTN.

9. Polymide producer Aqualfil raises $66M
The Italy-based synthetic textile maker is number two worldwide in terms of volume and is present in eight countries. Three Hills Capital Partners provided the financing.

10. Student.com raises $60M
The UK-based booking site focuses on international student accommodations and claims to have processed $110M in bookings in 2015 alone. Investors in the round included Spotify founders Ek and Martin Lorentzon and Xiaomi's Hugo Barra, among other backers.

The Blurb

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

These are the strengths of the Miami tech scene. Jason Tashea (@jtashea) writes about the Miami tech space and its strengths, including diversity and the freedom to be creative.
Technical.ly

Software is eating real estate. Pawel Chudzinski (@pawell) of Point Nine Capital writes about how software is impacting and transforming the world of real estate.
Posthaven

The do or die decision that built a successful multi-million dollar product. From failure to success, Simon De Baene (@debaenes) shares his experience building a product company.
Medium

Some gray haired insights for new investors. Mark Solon (@marksolon) of Techstars provides advice to angel and new VC investors on how to deal with market corrections.
To Write is to Think

VCs don't compare me to your wife. Entrepreneur Sarah Nadav (@sarahnadav) explains why a number of VCs are not getting pitched by female founders.
Medium

So what is the right level of burn rate for a startup these days? Mark Suster (@msuster) of Upfront Ventures says there is no specific number to keep in mind when it comes to burn rate, and he provides a framework for deciding that number on your own.
Both Sides of the Table

Digitally disrupted GDP. Economist Diane Coyle (@diane1859) talks about the measurement challenges posed by digital innovation on the economic landscape.
Vox

How to (possibly) get a job in VC. Brendan Baker (@brendanbaker) provides insight to those trying to enter the venture capital realm.
Medium
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