This post is by Russ Garland from Venture Capital Dispatch
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Life sciences investor G. Steven Burrill and his namesake investment firm Burrill Capital Management agreed to pay $5.79 million to settle Securities and Exchange Commission charges that he siphoned money from a 2006 venture capital fund for his own coffers and to prop up other business ventures, Dawn Lim reports for VentureWire. The settlement shows that SEC scrutiny of alternative asset managers can also extend to venture capital firms, which typically have operated with less regulatory oversight than their private equity peers. The SEC charged Mr. Burrill for the misuse of about $18 million in investor capital from a $283 million fund and alleged that he channeled $4.6 million of the money into personal uses such as private jet travel and family vacations. Two individuals the SEC claims have aided in the misappropriations–the firm’s former chief legal officer, Victor Hebert, and its former controller, Helena Sen–agreed to pay $185,000 and $90,000, respectively, in civil penalties. The trio has been barred from the securities industry. All of them settled the charges without admitting or denying the SEC’s findings.
ALSO IN TODAY’S VENTUREWIRE (subscription required):
Expa wants its incubator program to be known for “quality not quantity,” a factor it thinks will distinguish it as other Silicon Valley accelerators make bets on large batches of early-stage companies. Expa said on Wednesday it has raised $100 million in funding from a list of prominent tech executives
Airware, an operating system for commercial drone use, has raised $30 million in Series C funding in a round led by Next World Capital.
Cockroach Labs Inc., an open-source database developer, has raised $20 million in Series A1 funding led by Index Ventures, which had participation from Benchmark.
ImmuneXcite Inc. has collected $8.6 million in Series A-1 financing to advance a drug toward clinical trials that could unleash a broader immune system assault on tumors than existing immuno-oncology therapies.
Dil Mil Inc. Chief Executive KJ Dhaliwal realized apps like Tinder, Hinge and Coffee Meets Bagel weren’t inclusive of the needs of the South Asian community. His matchmaking app Dil Mil has now made more than 1.3 million matches and the company recently raised an additional $2.7 million in seed funding.
(VentureWire is a daily newsletter with comprehensive analysis of all the investments, deals and personnel moves involving startups and their venture backers. For a two-week trial, visit http://on.wsj.com/DJPEVCNews, scroll to the bottom and click “try for free.”)
ELSEWHERE AROUND THE WEB:
Fidelity Marks Down Startups Including DropBox, Zenefits. Mutual Funds giant Fidelity Investments took an ax to the valuations of its private technology shares in February, cutting bellwether software startups like DropBox Inc., Cloudera Inc. and Zenefits by as much as 38%, The Wall Street Journal reports.
Pinterest Promotes Tim Kendall to President. Pinterest Inc. has promoted Tim Kendall to president, a newly created position that comes as the image-discovery site seeks to start making money from its growing user base overseas.
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