Monthly Archives: January 2021

News: Ad-supported EV charging network developer Volta raises $125 million

Volta, the developer of a network of electric vehicle charging stations that monetize using advertising, has raised $125 million in new funding in a process managed by Goldman Sachs. Volta builds and operates a network of electric vehicle charging stations that are sited in parking lots around grocery stores, pharmacy chains, banks and hospitals. The

Volta, the developer of a network of electric vehicle charging stations that monetize using advertising, has raised $125 million in new funding in a process managed by Goldman Sachs.

Volta builds and operates a network of electric vehicle charging stations that are sited in parking lots around grocery stores, pharmacy chains, banks and hospitals.

The company has placed its charging stations, with their 55-inch digital displays in locations at 200 cities across 23 states, according to a statement.

The charge is free for vehicle owners and is supported by the retailers and consumer goods companies that want to reach the EV audience.

With the new financing, Volta has now raised over $200 million in funding and intends to use its cash to begin expanding internationally.

Companies who have placed Volta’s chargers on their sites include Albertsons Companies, Giant Food, Regency Centers, Wegmans and TopGolf. Brands advertising on the company’s screens include GM, Hulu, Nestlé, Polestar, Porsche and Unilever.

“Since our initial investment in Volta in 2018, excitement and interest in electrification — and specifically solving for public charging solutions — has continued to gain momentum,” said John Tough, managing partner at Energize Ventures, a major and existing investor in this round. “Our conviction in this team has similarly grown, and we believe Volta is poised to lead this market as the most capital-efficient and highly utilized EV charging network in the country.”

 

News: Europe is working on a common framework for ‘vaccine passports’

The European Union is preparing the ground for vaccine passports. A common approach for mutual recognition of vaccination documentation is of the “utmost importance”, the Commission said today, adding that it wants “an appropriate trust framework” to be agreed upon by the end of January — “to allow Member States’ certificates to be rapidly useable

The European Union is preparing the ground for vaccine passports. A common approach for mutual recognition of vaccination documentation is of the “utmost importance”, the Commission said today, adding that it wants “an appropriate trust framework” to be agreed upon by the end of January — “to allow Member States’ certificates to be rapidly useable in health systems across the EU and beyond”.

“Vaccination certificates allow for a clear record of each individual’s vaccination history, to ensure the right medical follow-up as well as the monitoring of possible adverse effects,” it writes, adding that: “A common EU approach to trusted, reliable and verifiable certificates would allow people to use their records in other Member States. Though it is premature to envisage the use of vaccine certificates for other purposes than health protection, an EU approach may facilitate other cross-border applications of such certificates in the future.”

It’s not clear what form (or forms) these pan-EU coronavirus vaccine certificates will take as yet — but presumably there will be both paper-based and digital formats, to ensure accessibility.

Nor is it clear exactly how EU citizens’ identity and medical data will be protected as checks on vaccination status take place. Or, indeed, who the trusted entities storing and managing sensitive health data will be. All that detail is to come — and may well vary by Member State, depending on how immunity certification verification systems get implemented.

Last week a number of tech companies, including Microsoft, Oracle and Salesforce, announced involvement in a separate, cross-industry effort to establish a universal standard for vaccination status that they said would build on existing standards, such as the SMART Health Cards specification which adheres to HL7 FHIR (Fast Healthcare Interoperability Resources).

That tech-backed effort is pushing for an “encrypted digital copy of [a person’s] immunization credentials to store in a digital wallet of their choice,” with a backup available as a printed QR code that includes W3C-standards verifiable credentials for those not wanting or able to use a smartphone. The PR also talked about a “privacy-preserving health status verification” solution that is at least in part “blockchain-enabled.”

Nothing so specific is being proposed for the common EU approach as yet. And it looks clear that a number of vaccine credential standards will be put forward globally — as a potential universal standard. (The Commission is touting its forthcoming framework on that front too.)

Whatever is devised in the EU must ensure compliance with the region’s data protection framework (which bakes in requirements for security and privacy by design and default when processing people’s information). So it could offer better privacy protection than a private sector-led effort, for example.

The EU’s eHealth Network — a body which includes representatives from relevant Member States’ authorities who are supported by a wider European Joint Action body, called eHAction — will be responsible for defining the minimum dataset needed for vaccination certificates used at the EU level, per the Commission.

It says this must include “a unique identifier and an appropriate trust framework ensuring privacy and security”.

Expect relevant stakeholders such as Europe’s Data Protection Supervisor and Data Protection Board to weigh in with expert advice, as happened last year with coronavirus contacts tracing apps.

“The Commission will continue to work with Member States on vaccination certificates which can be recognised and used in health systems across the EU in full compliance with EU data protection law — and scaled up globally through the certification systems of the World Health Organisation,” EU lawmakers add, saying the forthcoming framework will be presented in the WHO “as a possible universal standard”.

Commenting in the challenges ahead for developing privacy-safe vaccination verification, Lukasz Olejnik, a Europe-based independent cybersecurity and privacy researcher and consultant, told TechCrunch: “It is tricky to follow privacy by design for this particular [use-case]. It is unclear if anyone will be interested in identifying possible innovative privacy-preserving frameworks such as anonymous cryptographic credentials.

“In the end perhaps we will end up with some approach using verifiable credentials, but establishing trust will remain a challenge. What will be the source of trust? Is it possible to prove a particular status without the need to disclose the user identity? These are the core questions.”

“I hope this proposal will be public and transparent,” he added of the EU framework.

It’s worth emphasizing that all this effort is a bit ‘cart before the horse’ at this stage — being as it’s still not confirmed whether any of the currently available COVID-19 vaccinations, which have been developed primarily to protect the recipient from serious illness, also prevent transmission of the disease or not.

Nonetheless, systems for verifying proof of immunization status are fast being spun up — ushering in the possibility of ‘vaccine passport’ checks for travellers within the EU down the road, for example. It’s also not hard to envisage businesses requesting COVID-19 vaccination certification before granting access to a physical facility or service, in a bid to reassure customers they can spend money safety — i.e. once such documentation exists and can be verified in a standardized way.

Standardized frameworks for vaccination credentials could certainly have very broad implications for personal freedoms in the near future, as well as wide ramifications for privacy — depending on how these systems are architected, managed and operated.

Europe’s privacy and security research community mobilized heavily last year as the pandemic triggered early proposals to develop coronavirus contacts tracing apps — contributing to a push for exposure notification apps to be decentralized to ensure privacy of individuals’ social graph. However efforts toward establishing vaccination certification systems don’t appear to have generated the same level of academic engagement as yet.

In an analysis of the implications of immunity certificates, published last month, Privacy International warned that any systems that require proof of vaccination for entry or a service would be unfair “until everyone has access to an effective vaccine” — a bar that remains far off indeed.

European countries, which are among the global leaders on COVID-19 vaccination rollouts, have still only immunized tiny minorities of their national populations so far. (Even as the Commission today urged Member States to set targets to vaccinate a minimum of 80% of health and social care professionals and people over 80 by March 2021; and at least 70% of the total adult population by summer — targets which look like fantastical wishful thinking right now.)

“Governments must find alternatives to delivering vaccination schemes which do not perpetuate and reinforce exclusionary and discriminatory practices,” the rights group further urged, also warning that COVID-19 immunity should not be used as a justification for expanding or instating digital identity schemes.

News: 6 investors on 2021’s mobile gaming trends and opportunities

I asked a group of VCs about their approach to mobile content investing and whether new platforms were changing perspectives about mobile-first and desktop-first experiences.

Many VCs historically avoided placing bets on hit-driven mobile gaming content in favor of clearer platform opportunities, but as more success stories pop up, the economics overturned conventional wisdom with new business models. As more accessible infrastructure allowed young studios to become more ambitious, venture money began pouring into the gaming ecosystem.

After tackling topics including how investors are looking at opportunities in social gaming, infrastructure bets and the moonshots of AR/VR, I asked a group of VCs about their approach to mobile content investing and whether new platforms were changing perspectives about opportunities in mobile-first and desktop-first experiences.

While desktop gaming has evolved dramatically in the past few years as new business models and platforms take hold, to some degree, mobile has been hampered. Investors I chatted with openly worried that some of mobile’s opportunities were being hamstrung by Apple’s App Store.

“We are definitely fearful of Apple’s ability to completely disrupt/affect the growth of a game,” Bessemer’s Ethan Kurzweil and Sakib Dadi told TechCrunch. “We do not foresee that changing any time in the near future despite the outcry from companies such as Epic and others.”

All the while, another central focus seems to be the ever-evolving push toward cross-platform gaming, which is getting further bolstered by new technologies. One area of interest for investors: migrating the ambition of desktop titles to mobile and finding ways to build cross-platform experiences that feel fulfilling on devices that are so differently abled performance-wise.

Madrona’s Hope Cochran, who previously served as CFO of Candy Crush maker King, said mobile still has plenty of untapped opportunities. “When you have a AAA game, bringing it to mobile is challenging and yet it opens up an entire universe of scale.”

Responses have been edited for length and clarity. We spoke with:

Hope Cochran and Daniel Li, Madrona Venture Group

Does it ever get any easier to bet on a gaming content play? What do you look for?

Hope Cochran: I feel like there are a couple different sectors in gaming. There’s the actual studios that are developing games and they have several approaches. Are they developing a brand new game, are they reimagining a game from 25 years ago and reskinning it, which is a big trend right now, or are they taking IP that is really trendy right now and trying to create a game around it? There are different ways to predict which ones of those might make it, but then there’s also the infrastructure behind gaming and then there’s also identifying trends and which games or studios are embracing those. Those are some of the ways I try to parse it out and figure out which ones I think are going to rise to the top of the list.

Daniel Li: There’s this single-player narrative versus multiplayer metaverse and I think people are more comfortable on the metaverse stuff because if you’re building a social network and seeing good early traction, those things don’t typically just disappear. Then if you are betting more on individual studios producing games, I think the other thing is we’re seeing more and more VCs pop up that are just totally games-focused or devoting a portion of the portfolio to games. And for them it’s okay to have a hits-driven portfolio.

There seems to be more innovation happening on PC/console in terms of business models and distribution, do you think mobile feels less experimental these days? Why or why not?

Hope Cochran: Mobile is still trying to push the technology forward, the important element of being cross-platform is difficult. When you have a AAA game, bringing it to mobile is challenging and yet it opens up an entire universe of scale. The metrics are also very different for mobile though.

Daniel Li: It seems like the big monetization innovation that has happened over the last couple of years has been the “battle pass” type of subscription where you can unlock more content by playing. Obviously that’s gone over to mobile, but it doesn’t feel like mobile has had some sort of new monetization unlock. The other thing that’s happened on desktop is the success of the “pay $10 or $20 or $20 for this indie game” type of thing, and it feels like that’s not going to happen on mobile because of the price points that people are used to paying.

Alice Lloyd George, Rogue VC

News: Apple’s new editorial franchise, Apple Podcasts Spotlight, to highlight interesting creators

Apple today announced a new editorial franchise called Apple Podcasts Spotlight, which aims to highlight rising podcast creators in the U.S. The editorial team at Apple will select new podcast creators to feature every month and then give them prominent screen real estate in the Apple Podcasts app and promote them across social media and

Apple today announced a new editorial franchise called Apple Podcasts Spotlight, which aims to highlight rising podcast creators in the U.S. The editorial team at Apple will select new podcast creators to feature every month and then give them prominent screen real estate in the Apple Podcasts app and promote them across social media and elsewhere. This will allow creators to reach a wider audience, similar to how the App Store showcases a selection of recommended apps and games with large banners at the top of its screen.

The first Spotlight creator is Chelsea Devantez, who hosts the podcast Celebrity Book Club. On Fridays, Chelsea and special guests including Emily V. Gordon, Gabourey Sidibe, Ashley Nicole Black and Lydia Popovich will meet to discuss the memoirs of “badass celebrity womxn,” as an announcement describes it.

The idea for the show began a year ago when Devantez was reading Jessica Simpson’s memoir and started recapping it on Instagram. The reaction from her followers prompted her to expand the concept into a podcast.

Upcoming episodes will feature Oscar-nominated writer and producer Emily V. Gordon talking Drew Barrymore’s “Little Girl Lost;” actress Stephanie Beatriz discussing Celine Dion’s memoir “My Story My Dream;” Leighton Meester on Carly Simon’s “Boys in the Trees;” and a special Valentine’s Day episode where Chelsea and TikTok star Rob Anderson read Burt Reynolds’ and Loni Anderson’s competing divorce memoirs.

“Apple Podcasts Spotlight helps listeners find some of the world’s best shows by shining a light on creators with singular voices,” said Ben Cave, Global Head of Business for Apple Podcasts, in a statement about the launch. “Chelsea Devantez has created a fun, vibrant space with Celebrity Book Club for listeners to gain new perspectives on the celebrities we thought we knew. We are delighted to recognize Chelsea and Celebrity Book Club as our first Spotlight selection and look forward to introducing creators like Chelsea to listeners each month,” he added.

Apple says future Spotlight creators will be announced monthly from across a range of podcast genres, formats and locations, and will often focus on independent and underrepresented voices. The content is previewed ahead of selection to ensure quality, but there are no specific requirements about the podcast size and reach.

In general, the new Spotlight creators will debut toward the front of the week, but the specific days are fluid to adapt to holidays, major cultural events, and others. The next Spotlight selection, for example, will launch in mid-February.

The Spotlight creators will be featured at the top of the Browse tab of Apple Podcasts and will be promoted through the Apple Podcasts social media accounts. Some form of in-app featuring will continue throughout the entire month the creators are in the “spotlight.”

Apple says it will also collaborate with the featured creators on their own channels. And, over time, you’ll see promotion via additional Apple-operated channels including outdoor advertising in major U.S. metros.

The news of the new editorial program comes shortly after a report from The Information suggested Apple is working to expand its podcasts platform with the introduction of a podcast subscription service, threatening rivals like Spotify, SiriusXM and Amazon.

Though Apple Podcasts still leads the market, Spotify has been catching up by spending over $800 million on podcast companies, like Anchor, the Ringer, Gimlet Media, and more recently, podcast ad company Megaphone.

SiriusXM, meanwhile, bought podcast management and analytics platform Simplecast, ad tech platform AdsWizz, and podcast app Stitcher. Not to be left out, Amazon just a few weeks ago announced it was acquiring the podcast network Wondery.

Beyond helping the creators grow their audience, Apple says the larger goal with the program is to welcome new audiences to podcasts, in general.

Though podcasts are growing in popularity, the monthly podcast listener base is just 37% in the U.S., according to Edison Research. That means it’s nowhere near being an activity that’s popular among a majority of the U.S. population at this time. Before Apple can effectively monetize podcasts as a subscription service, it needs to help get more people listening to podcasts on a regular basis.

Apple declined to say if the program would expand outside the U.S. at a later date.

News: We’ll discuss the future of the gig economy and contract works at TC Sessions: Justice on March 3

Like so many other subjects, the ongoing COVID-19 pandemic has brought concerns about the gig economy and contract workers into sharp focus over the past year which is why we’ll be diving into this topic at TC Sessions: Justice on March 3. From food delivery services like Seamless to warehouse and fulfillment jobs at places

Like so many other subjects, the ongoing COVID-19 pandemic has brought concerns about the gig economy and contract workers into sharp focus over the past year which is why we’ll be diving into this topic at TC Sessions: Justice on March 3.

From food delivery services like Seamless to warehouse and fulfillment jobs at places like Amazon, these often low-paid jobs have kept people supplied with essentials during one of the most difficult moments in modern American history.

But why is it that jobs our society has labeled “essential” often carry the least number of protections for those who fulfill them? Is there a way to ensure a safety net for the people who need it the most?

As the pandemic continued to rage, California passed Proposition 22. The law was regarded as a big win for companies like Uber and Lyft (who pumped a collective $200 million into promotions) and a tremendous step back for workers looking for basic employment rights. But the battle between the Prop 22 proponents and the gig workers who oppose it continues. A group of rideshare drivers in California and the Service Employees International Union have filed a lawsuit alleging Proposition 22 violates California’s constitution.

To discuss the gig worker economy and its future in a post-Prop 22 world, we will be joined by Jessica E. Martinez, the co-executive director of the National Council for Occupational Safety and Health, an organization devoted to promoting health and safety conditions for workplaces; Vanessa Bain, a gig worker activist who co-founded the Gig Workers Collective; and Christian Smalls, a former Amazon worker turned activist.

TC Sessions: Justice will be held online on March 3. Get your tickets today!

News: Wendy Xiao Schadeck becomes Northzone’s first New York partner

Northzone‘s new partner Wendy Xiao Schadeck isn’t new to the firm — she actually joined back in 2015. Before entering the venture world, Schadeck co-founded co-working and childcare startup CoHatchery. And as a Northzone principal, she’s already been involved in the firm’s investments in Spring Health (mental health), 3box (cloud infrastructure), Livepeer (blockchain-based video transcoding)

Northzone‘s new partner Wendy Xiao Schadeck isn’t new to the firm — she actually joined back in 2015.

Before entering the venture world, Schadeck co-founded co-working and childcare startup CoHatchery. And as a Northzone principal, she’s already been involved in the firm’s investments in Spring Health (mental health), 3box (cloud infrastructure), Livepeer (blockchain-based video transcoding) and Magic.link (user authentication).

More broadly, Northzone says Schadeck helped to develop the firm’s investment theses around crypto, consumer technology, health, developer/web 3.0 infrastructure.

“Wendy has already proven herself through very insightful sector-driven thought leadership and has solidified our position in the New York ecosystem,” said General Partner Pär-Jörgen Pärson in a statement. “She has defined and redefined an honest, authentic and inspiring dialogue between herself as an investor and the entrepreneurs she supports.”

Schadeck told me that her interests have “crystallized” around three key areas — “open data, open finance and open community.” And she said that with her promotion to partner, she will be able to work even more closely with founders, a topic she’s become “obsessed” with.

“We’ve all seen this VC meme, ‘How can I be helpful?’ and I’ve sometimes accidentally literally said it,” Schadeck said. “But we mean it: Other than providing capital, first and foremost, on good terms, what other dimensions are there that are becoming more and more important? … How can I customize my approach to provide what the founder needs from me?”

While Schadeck is Northzone’s first New York-based partner (its other partners are in London and Stockholm), she said she will make investments outside the region, albeit with an NYC focus.

“We’ve tried to do this matrix approach, where we both have sectors that we’re pretty excited about and build expertise and experience in, as well as relationships” she said. “And those relationships are better with local entrepreneurs.”

 

News: Paramount+, the successor to CBS All Access, launches March 4 in the U.S., Canada, and Latin America

Last year, ViacomCBS announced its CBS All Access streaming service would soon rebrand as Paramount+, to better reflect the expanded content lineup following the Viacom-CBS merger in 2019. Today, the company says it has set a launch date for Paramount+ in the U.S.: March 4, 2021. It’s also sharing the launch dates for other international

Last year, ViacomCBS announced its CBS All Access streaming service would soon rebrand as Paramount+, to better reflect the expanded content lineup following the Viacom-CBS merger in 2019. Today, the company says it has set a launch date for Paramount+ in the U.S.: March 4, 2021. It’s also sharing the launch dates for other international markets, including Latin America, Canada and the Nordics.

The service will debut on March 4 in Latin American markets, and will rebrand from CBS All Access to Paramount+ in Canada at the same time. However, Canada won’t receive the expanded lineup until later in 2021. The Nordics region will see the service arrive on March 25, 2021, which is followed by a launch in Australia in “mid-2021.”

The company had been touting its plans for the rebranded service since earlier last year, explaining how the new streaming offering, an expansion of CBS All Access,  would allow it to showcase the company’s biggest franchises and its deep library, while also offering a home to its growing collection of original content, like the multiple “Star Trek” series now streaming on CBS All Access and “The Good Wife” spin-off, “The Good Fight,” among others.

The service will also continue to stream sports, like NFL games and those from other leagues, like the NCAA and PGA, and live stream news from CBSN and local stations.

Last year, ViacomCBS additionally announced other originals it had planned for the new service, including “The Offer,” a scripted limited series about the making of “The Godfather;” CIA spy drama “Lioness,” created by Taylor Sheridan; a reimagined version of MTV’s “Behind the Music,” which will focus on the past 40 years; a true crime docu-series, “The Real Criminal Minds,” based on the fictional TV hit; and a revival of BET’s “The Game.”

There will be expanded children’s programming, too, including a new kids original series “Kamp Koral,” from Nickelodeon’s “Spongebob Squarepants.” And it it will be the subscription video on demand home for the “The Spongebob Movie: Sponge on the Run.”

CBS All Access had already been expanding its lineup ahead of the full rebrand, with the goal of reaching more than 30,000 episodes and movies, by incorporating content from ViacomCBS-owned brands like BET, CBS, Comedy Central, MTV, Nickelodeon, and Paramount Pictures.

Despite its plans to make Paramount+ a standalone destination, ViacomCBS has been licensing its content to other streamers, as well. During its first full year as a newly combined company in 2020, ViacomCBS made carriage deals with Comcast, Dish, Verizon (TechCrunch’s parent), Nextstar, Meredith, Cox and Sinclair, and hashed out agreements with YouTube TV and Hulu for incremental revenues. Both YouTube TV and Hulu added over a half dozen ViacomCBS-owned channels to their respective lineups and hiked prices, as a result.

Because Paramount+ is built on CBS All Access’ existing tech platform, it will have the same distribution across platforms (TV, web, and mobile) as its predecessor from day one.

Today, CBS All Access is estimated to have around 8 million subscribers, which makes it far smaller than other newer rivals like Disney+ (73M+) and HBO Max (12.6M “activated users”).

News: Rivian raises $2.65B as it pushes towards production of its electric pickup

Rivian has raised $2.65 billion as it prepares to begin production this summer of its all-electric pickup truck. The round, which was led by funds and accounts advised by T. Rowe Price Associates Inc., also included Fidelity Management and Research Company, Amazon’s Climate Pledge Fund, Coatue and D1 Capital Partners as well as several other

Rivian has raised $2.65 billion as it prepares to begin production this summer of its all-electric pickup truck.

The round, which was led by funds and accounts advised by T. Rowe Price Associates Inc., also included Fidelity Management and Research Company, Amazon’s Climate Pledge Fund, Coatue and D1 Capital Partners as well as several other existing and new investors.

Rivian is now valued at $27.6 billion, according to a person familiar with the investment round.

The capital comes at a critical time for Rivian, which is undertaking the design, development, production and delivery of two consumer vehicles — the R1T pickup truck the R1S SUV — build out of its electric vehicle charging network as well as fulfilling an order for 100,000 commercial delivery vans for Amazon.

“The support and confidence of our investors enables us to remain focused on these launches while simultaneously scaling our business for our next stage of growth,” Rivian founder and CEO RJ Scaringe said in a statement.

This latest round follows two years of heavy investment activity that began in earnest after the company unveiled its electric SUV and pickup truck at the 2018 LA Auto Show.

Just months after that reveal, Rivian announced a $700 million funding round led by Amazon. More deals and investments would follow, including a $500 million investment from Ford — along with a promise to collaborate on a future EV program — and a $350 million investment by Cox Automotive in September 2019. The company closed the year with an announcement that it had raised a $1.3 billion round led by funds and accounts advised by T. Rowe Price Associates, Inc. with additional participation from Amazon, Ford Motor Company and funds managed by BlackRock.

The stream of capital didn’t stop in 2020. Rivian announced in July it had raised $2.5 billion in a round led by funds and accounts advised by T. Rowe Price Associates Inc. New investors Soros Fund Management LLC, Coatue, Fidelity Management and Research Company and Baron Capital Group along with existing shareholders Amazon and BlackRock joined the round.

To date, Rivian has raised $8 billion since the start of 2019.

Rivian factor Normal Illinois

Rivian’s factory in Normal, Illinois.

Rivian hasn’t held back on spending that capital. The company has put more than $1 billion into its factory in Normal, Illinois. The factory, which once produced the Mitsubishi Eclipse through a joint venture between Mitsubishi and Chrysler Corporation, has been completely updated and expanded.

The overhaul of the 3 million-square-foot is on schedule, but not yet complete, according to the company. A pilot line is operational and is producing validation prototypes of its R1T pickup truck daily.

Rivian also plans to produce the delivery vans for Amazon at the factory. The first van deliveries will be made to Amazon in late 2021.

News: In 2020, VCs invested $428M into US-based startups every day

Despite a pandemic that sparked a global recession, 2020 was still a record year for venture capital investments into American startups.

Despite a pandemic that sparked a global recession, 2020 was still a record year for venture capital investments into American startups.

According to data shared by PitchBook and the National Venture Capital Association, investors poured $156.2 billion into domestic startups last year, or around $428 million for each day of the year. The huge sum of money, however, was itself dwarfed by the amount of liquidity that American startups generated, some $290.1 billion.


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The exit-value figure was a record as well, as were the 321 rounds worth $100 million — nearly one for each day of the year.

But while the U.S. venture capital market in 2020 was hot, it was not newly so. In 2018 and 2019, VCs invested around $140 billion into domestic startups, making last year’s $156 billion result a record, but not a shocking departure from previous years.

A first read of the data indicates that the U.S. venture capital market is still getting larger in scale and later-stage in focus. But inside those well-worn trends are a host of notable movements that both underscore what we observed last year in real time, and teach us something new about today’s venture capital market.

So far, 2021’s startup financing and exit market appears to be the mirror of what we saw in late 2020. So we’d best understand the past so we can forecast what we’ll see in Q1 of 2021.

To avoid getting too lost in the data, we’ll proceed by stage, pulling out key facts for each step of the startup lifecycle. Feel free to scroll to the one that makes the most sense for where your company is, or fund invests today.

Seed

In the U.S., seed deal count was high in 2020, around 5,227 per PitchBook’s estimates. Those rounds were worth just over $10 billion, making it the third year in a row in which American seed-stage startups managed around $10 billion in capital against around 5,000 rounds.

Boring, yeah? Not really. Inside those numbers are the whole year’s ups-and-downs: the fact that the seed data is so close to 2018 and 2019 levels is almost silly.

The real surprise from seed, per PitchBook’s report, is that these valuations actually fell on a year-over-year basis in 2020. This, despite the fact that seed deal sizes rose.

Considering these two trends at once, it appears likely that, on average, VC ownership as a percentage of seed-stage companies rose in 2020.

Frankly I was just surprised to see a form of startup valuation decrease after expanding for nearly a decade.

News: Citrix is acquiring Wrike from Vista for $2.25B

Citrix announced today that it plans to acquire Wrike, a SaaS project management platform, from Vista Equity Partners for $2.25 billion. Vista bought the company just two years ago. Citrix, which is best known for its digital workspaces, sees this as a good match, especially at a time where employees have been forced to work

Citrix announced today that it plans to acquire Wrike, a SaaS project management platform, from Vista Equity Partners for $2.25 billion. Vista bought the company just two years ago.

Citrix, which is best known for its digital workspaces, sees this as a good match, especially at a time where employees have been forced to work from home because of the pandemic. By combining the two companies, it produces a powerful combination, one that didn’t escape Citrix CEO and president David Henshall

“Together, Citrix and Wrike will deliver the solutions needed to power a cloud-delivered digital workspace experience that enables teams to securely access the resources and tools they need to collaborate and get work done in the most efficient and effective way possible across any channel, device or location,” Henshall said in a statement.

Andrew Filev, founder and CEO at Wrike, who has managed the company through these multiple changes and remains at the helm, believes his company has landed in a good spot with the Citrix purchase.

“First, as part of the Citrix family we will be able to scale our product and accelerate our roadmap to deliver capabilities that will help our customers get more from their Wrike investment. We have always listened to our customers and have built our product based on their feedback — now we will be able to do more of that, faster.,” Filev wrote in a company blog post announcing the deal, stating a typical argument from CEOs of acquired companies.

The startup reports $140 million ARR, growing at 30% annually, so that comes out to approximately 16x its present-day revenue, which is the price companies are generally paying for acquisitions these days. However, as Wrike expects to reach $180 million to $190 million in ARR this year, the company’s sale price could look like a bargain in a few years’ time if the projections come to pass.

The price was not revealed in the 2018 sale, but it surely feels like a big win for Vista. Consider that Wrike has previously raised just $26 million.

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