Category: investors

Thematic Investing: 3 Key Trends in Cybersecurity


This post is by Marcus Lu from Visual Capitalist


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Global X Cybersecurity ETF

The following content is sponsored by Global X ETFs
Global X Cybersecurity ETF

Thematic Investing: 3 Key Trends in Cybersecurity

In 2020, the global cost of cybercrime was estimated to be around $945 billion, according to McAfee.

It’s likely even higher today, as multiple sources have recorded an increase in the frequency and sophistication of cyberattacks during the pandemic.

In this infographic from Global X ETFs, we highlight three major trends that are shaping the future of the cybersecurity industry that investors need to know.

Trend 1: Increasing Costs

Research from IBM determined that the average data breach cost businesses $4.2 million in 2021, up from $3.6 million in 2017. The following table breaks this figure into four components:

Cost ComponentValue ($)
Cost of lost business$1.6M
Detection and escalation$1.2M
Post breach response$1.1M
Notification$0.3M
Total$4.2M

The greatest cost of a data breach is lost business, which results from system downtimes, reputational losses, and lost customers. Second is detection and escalation, including investigative activities, audit services, and communications to stakeholders.

Post breach response includes costs such as legal expenditures, issuing new accounts or credit cards (in the case of financial institutions), and other monitoring services. Lastly, notification refers to the cost of notifying regulators, stakeholders, and other third parties.

To stay ahead of these rising costs, businesses are placing more emphasis on cybersecurity. (Read more...)

A Global Perspective: The Possibilities in International Equity Investing


This post is by Jenna Ross from Visual Capitalist


The Possibilities in International Equity Investing

When we’re in our comfort zones, we’re more likely to feel safe and familiar—and this same psychological effect is at play when we’re choosing where to invest. In fact, it’s widely understood that investors tend to prefer investing in their home country instead of taking a more global perspective, a behavior known as home bias.

However, investors could consider expanding their geographic exposure. From Shanghai to London, 20 of the world’s stock exchanges have a market capitalization above $1 trillion.

This infographic from MSCI highlights the possibilities in international equity investing. Let’s dive into some of the key concepts covered in the visualization.

Consider Correlations

For starters, by looking abroad, investors may be able to include markets in their portfolio that have relatively low correlation with their home market. This means the market movements are not as closely aligned, and the markets may behave differently from one another.

For instance, the U.S. has varying degrees of correlation with international stock markets. A correlation of 0 indicates there is no relationship between the market movements, while a correlation of 1 indicates that they move the exact same percentage in the same direction.

CountryCorrelation With U.S. Market
Japan0.11
Taiwan0.21
Korea0.24
China0.43
UK0.58
France0.59

Daily correlations based on data from December 31 2015-December 31 2020.

In the past, adding less correlated markets to a portfolio has helped to reduce overall volatility.

Manage Potential Concentration Risk

Technology companies have (Read more...)

Yieldstreet raises $100M as it mulls going public via SPAC, eyes acquisitions



These days, investing goes way beyond the stock market. And in recent years there’s been a growing number of startups which aim to give more people access to a wider array of investment opportunities. Today, one of those startups has raised a significant round of funding to help it achieve its goals.

Yieldstreet — which provides a platform for making alternative investments in areas like real estate, marine/shipping, legal finance, commercial loans and other opportunities that were previously only open to institutional investors — announced Tuesday that it has raised $100 million in a Series C funding round.

Former E*TRADE CEO Mitch Caplan, of Tarsadia Investments, led the round. Other participants include Alex Brown (a division of Raymond James), Kingfisher Capital, Top Tier Capital Partners and Gaingels. Existing backers Edison Partners, Soros Fund Management, Greenspring Associates, Raine Ventures, Greycroft and Expansion Capital also put money in the round, which brings Yieldstreet’s total raised to $278.5 million since its 2015 inception.

Milind Mehere and Michael Weisz co-founded Yieldstreet with the mission of making investing more inclusive for non-institutional investors. In an interview with TechCrunch, CEO Mehere declined to say at what valuation the Series C was raised other than to say “near unicorn.”

What he did share is that Yieldstreet has funded nearly $1.9 billion on its platform and has about 300,000 consumers signed up on its platform. That’s up from $600 million invested on its platform from more than 100,000 members in February 2019, at the time of its last (Read more...)

4 Tips from a Venture Capitalist for Entrepreneurs Seeking Investment



This article is part of the Crunchbase Community Contributor Series. The author is an expert in their field and a Crunchbase user. We are honored to feature and promote their contribution on the Crunchbase blog.

Please note that the author is not employed by Crunchbase and the opinions expressed in this article do not necessarily reflect official views or opinions of Crunchbase, Inc. 


Let’s face it: Fundraising has never been easy, especially for early-stage entrepreneurs or new fund managers. 

On one side of the table sits millions of dollars. On the other, an unproven idea. Your job is to convince the people with the millions that your idea is worth the investment. It’s daunting, to say the least. 

Then COVID-19 hit, which made fundraising even harder. Now you’re doing the same unnerving pitches through the shaky lens of a video camera. 

Even worse, the percentage of capital going to early-stage companies — with fundraising size of $5 million and below — has been dwindling over the past decade. And last year, only about 160 venture capital funds were raised in the U.S. by emerging managers, the lowest amount in the past eight years.

To successfully raise money in this environment, you have to take a long-term view of the process.

Fundraising is not a one-time event. It doesn’t start the day you put your deck together and end when the money is safely in your bank account. It starts long before you need an investment, and it never ends as long (Read more...)

Palantir — A Federal Market Lesson For VCs



This article is part of the Crunchbase Community Contributor Series. The author is an expert in their field and a Crunchbase user. We are honored to feature and promote their contribution on the Crunchbase blog.

Please note that the author is not employed by Crunchbase and the opinions expressed in this article do not necessarily reflect official views or opinions of Crunchbase, Inc. 


Thanks to its work with the U.S. government, Palantir went public nearly six months ago at a valuation of about $22 billion. According to Palantir’s SEC filing, just over half of the company’s revenue came from commercial customers and the rest from U.S. and foreign government work, with government contracts making up $345.5 million of Palantir’s overall revenue in 2019. 

Clearly, Palantir’s investors saw big returns from the company’s work with the U.S. government. Yet venture capitalists continue to be wary of the federal market.

VCs view the federal market as a potentially costly distraction for fast-growing startups, especially given the long timelines to win contracts. Adding to what AFVentures co-founder and Managing Partner Jason Rathje gathered in his research at Stanford, VCs fear the delayed returns, uncertainty in follow-on contracts, IP battles and the public scrutiny that comes with government contracts. Many VCs want to invest only in companies that already have government contracts. 

Years ago, when Meagan Metzger was founding Dcode and talking to VCs, they told her repeatedly that the federal market was potentially attractive for their portfolio companies but too hard (Read more...)

The All Raise x Crunchbase VC Checkwriter Dashboard



Women have historically been underrepresented in company and venture capital (VC) leadership. In 2020, Black and Latinx female founders combined received a tiny fraction (0.64%) of the hundreds of billions of VC dollars. Women also experienced a disproportionate socio-economic impact from the pandemic and a significant drop in venture capital funding. There’s never been a more critical time to put money in the hands of female check writers*, a group of investors proven to invest in female founders at a 2x higher rate

That’s why Crunchbase and All Raise have partnered to create the VC Checkwriter Dashboard, a dashboard that will track data on female check writers in the U.S.

*those who can write checks, lead deals, and sit on boards

 

Crunchbase and All Raise launch the VC Checkwriter Dashboard

Powered by Crunchbase data, the VC Checkwriter Dashboard will provide quarterly data on check writer diversity in the VC community. Specifically, the percentage of VC firms with no female check writers, and the locations across the U.S. where female check writers are most concentrated. 

This dashboard is another step for Crunchbase toward centralizing data to move the needle on diversity, equity, and inclusion. In August of 2020, Crunchbase launched Diversity Spotlight, a feature that highlights data about companies with diverse leadership and the investors who fund them.

“All Raise and Crunchbase are working toward a shared vision of equity and access for all. Combining our data and resources allows us to shine an even brighter (Read more...)

The All Raise x Crunchbase VC Checkwriter Dashboard



Women have historically been underrepresented in company and venture capital (VC) leadership. In 2020, Black and Latinx female founders combined received a tiny fraction (0.64%) of the hundreds of billions of VC dollars. Women also experienced a disproportionate socio-economic impact from the pandemic and a significant drop in venture capital funding. There’s never been a more critical time to put money in the hands of female check writers*, a group of investors proven to invest in female founders at a 2x higher rate

That’s why Crunchbase and All Raise have partnered to create the VC Checkwriter Dashboard, a dashboard that will track data on female check writers in the U.S.

*those who can write checks, lead deals, and sit on boards

 

Crunchbase and All Raise launch the VC Checkwriter Dashboard

Powered by Crunchbase data, the VC Checkwriter Dashboard will provide quarterly data on check writer diversity in the VC community. Specifically, the percentage of VC firms with no female check writers, and the locations across the U.S. where female check writers are most concentrated. 

This dashboard is another step for Crunchbase toward centralizing data to move the needle on diversity, equity, and inclusion. In August of 2020, Crunchbase launched Diversity Spotlight, a feature that highlights data about companies with diverse leadership and the investors who fund them.

“All Raise and Crunchbase are working toward a shared vision of equity and access for all. Combining our data and resources allows us to shine an even brighter (Read more...)

Unusual Ventures Partner Sandhya Hegde On Entrepreneurship And Breaking Into Venture Capital



The Crunchbase “Female Founder Series,” is a series of stories, Q&As, and thought-leadership pieces from glass-ceiling-smashers who overcame the odds to found and lead at successful companies and VC firms.


Sandhya Hegde is a partner at Unusual Ventures, leading investments in enterprise SaaS platforms. Prior to Unusual, she was an early employee at Amplitude, joining as a product manager at the single-digit ARR stage. She climbed the company ranks leading pivotal efforts across product development, fundraising, category creation, and go-to-market strategy. She went on to become the executive vice president of marketing and growth, helping establish Amplitude as a unicorn and category leader in product intelligence overseeing 20x growth in its ARR. 

While at Amplitude, Hegde also founded Amplify, the world’s leading product-led growth conference and served as a product strategy adviser to leading startups and Fortune 100 businesses including NBC, T-Mobile and Ford

Before Amplitude, Hegde was an investor at Khosla Ventures and Sequoia Capital, where she focused on emerging market startups in SaaS and cleantech. For Hegde, what matters in venture is not just building successful startups but diverse, generational businesses that set the industry standard for both customer and employee impact. 

In this Q&A, Hegde shares how she, as a first-generation immigrant and woman of color, got into VC and why she’s looking to invest in the “TikToks of enterprise software.” 

Sandhya Hegde, Partner at Unusual Ventures

Q: Why did you join Unusual Ventures?

I first started working (Read more...)

Venture Capital Firms Expand Opportunities For Diverse Investors



This article is part of the Crunchbase Community Contributor Series. The author is an expert in their field and a Crunchbase user. We are honored to feature and promote their contribution on the Crunchbase blog.

Please note that the author is not employed by Crunchbase and the opinions expressed in this article do not necessarily reflect official views or opinions of Crunchbase, Inc. 


Despite tremendous efforts by businesses across the world, a lack of diversity remains an issue at all levels. And it is not just within business organizations where women, people of color and other minorities are traditionally underrepresented; there are also vast disparities in representation within the venture capital community that funds many of these businesses. 

Since diverse investors are underrepresented, they have been unable to participate in the substantial profits VCs have generated, particularly from Silicon Valley and the tech sector. As a result, the wealth gap for minority communities remains unacceptably large. 

Fortunately, recent years have seen a substantial increase in investments in minority-owned businesses. But what about diversity within those investment firms? Unfortunately, venture capital firms have made very little progress on diversity in the past decade. 

Several new funds are looking to change the narrative, actively recruiting participation of more-diverse limited partners. While there are still many miles to go before minority representation in the VC community more closely reflects the population at large, these firms have at least started the journey. 

 

Lack of diversity in venture capital

For a field that has consistently (Read more...)

Year in Review: A Look at Russia’s VC Market through 2020



Despite the pandemic, the number of VC transactions in Russia grew from 246 deals in 2019 to 281 deals in 2020, totaling $702.9 million. In our latest report, Venture Russia 2020 Results, we partnered with Crunchbase to analyze the Russian and global VC markets throughout 2020.

Russian VC activity in 2020

The Russian VC market experienced а significant downfall in the first half of 2020 that left investors worried. Because quarantine measures in Russia were lifted in mid-July, the majority of the VC activity occurred in the second half of the year and managed to beat all expectations.

The overall venture capital investment in Russian startups totaled $702.9 million last year, a decrease of 21 percent from 2019. However, this result could be explained by the unpredictable economic environment of the pandemic and many deciding to minimize their risks. 

Russian investor behavior during the pandemic

One major change we noticed in investors’ behavior during the pandemic was a significant reduction in accelerator investing. In 2019, accelerators amounted to almost 30 percent of all venture deals, and in 2020 their presence amounted to less than 15 percent. The hole created by accelerators was picked up by business angels who conducted 64 deals for a total volume of $37.3 million. Dmitry Voloshin was the most active Russian angel investor with five investments. 

While some investors took precautions, others saw opportunity. We noticed this trend especially in corporate investors, which invested $308 million over 47 deals. Megafon, a Russian telecom provider, (Read more...)