Connect with us

Technology

Kevin Hartz’s A* company raises its second oversubscribed fund in three years

Published

on

A*, venture capital, startups

Venture firms are estimated to have raised $9.3 billion in the primary quarter PitchBook datameaning this yr is unlikely to satisfy or exceed 2023’s $81.8 billion figure. While emerging managers are feeling the brunt of the frost in the fundraising market, some emerging VCs like A* have enough name recognition and adequate track record to proceed to achieve success.

A*, led by former Eventbrite founder Kevin Hartz, former Coatue partner Bennett Siegel and former Opendoor and Uber operator Gautam Gupta, has raised $315 million for its oversubscribed Fund II. The company plans to proceed to give attention to leading seed rounds and increasing the share of portfolio corporations in Series A, in addition to make chosen latest investments on the Series B stage.

“We have found that our product market fit is truly in the seed and seed stages, working with founders from zero to one while continuing to support the breakthrough products in our portfolio,” Siegel said. “That’s where we’ve had the most success.”

Zero to One is a reference to the book of the identical title by Peter Thiel. In VC jargon, it means turning a brand new, unproven concept right into a company with a product and customers, versus a startup that imitates or expands on an existing idea.

The fund will proceed to be general in nature and can invest in a wide range of industries. Gupta said they like to search out the suitable founders and follow them into whatever industry they’re expanding into. Right now, which means the company is spending loads of time on artificial intelligence and the resurgence of consumer tech.

“Everything takes care of itself if you support the right people,” Gupta said.

The only noticeable difference between Fund I and Fund II is the vehicle’s LP base. Fund II was obtained entirely from institutional investors, while Fund I used to be supported by many well-known VCs and former operators. Max Levchin, David Sacks and Peter Thiel, formerly of PayPal fame, have backed Fund I, in addition to DoorDash co-founder and CEO Tony Xu and Opendoor co-founder and CEO Eric Wu, amongst others.

Switching to institutional investors will not be unusual on the Fund II stage, one other VC firm told me this week, after doing the identical thing. This is because corporations have enough experience to draw institutional investors, and deep-pocketed investors change into essential as corporations look to extend the dimensions of their funds in the long run.

However, A* doesn’t intend to gather as much money as possible. He intentionally kept Fund II only barely above the company’s first fund – Fund I raised $300 million, exceeded its $250 million goal and closed in 2021.

“Fund size is strategy, and strategy is fund size,” Siegel said. “We want to be a partner of choice, but small enough that we can focus on generating incredible returns for our investors. We wanted to focus on mentoring, not just investing large capital funds.”

The company has backed 35 Fund I startups, including fintech startup Ramp, workflow tool Notion and wholesale marketplace Faire, all at Series B or higher. He has also led seed rounds for corporations akin to AI startup EyeTell, recruiting marketplace Paraform, and first care startup Aligned Marketplace. The company also incubated three corporations which can be still under wraps.

The company believes it stands out in a really crowded seed market as a result of its three founding partners and their vast experience in various industries and three different many years.

Hartz’s name recognition in the tech space probably won’t hurt either. Hartz launched and scaled Eventbrite and Xoom through their respective exits before working at Founders Fund and angel investing in corporations akin to Gusto, Pinterest and Reddit. Gupta was the previous CFO of Uber and COO and CFO of OpenDoor. As an investor in Coatue, Siegel backed Peloton, Instacart and DoorDash, amongst others.

The group had known one another for years before they began talking about launching a fund in late 2020. Now they wish to use this latest fund to proceed finding and supporting great early-stage founders in a totally different market than the company originally launched in .

“The challenge of our times is that companies are not dying of starvation, but of indigestion,” Hartz said. “We can really help companies that are hungry for knowledge and want all this help to go from zero to one, where there’s a lot of capital.”

This article was originally published on : techcrunch.com
Continue Reading
Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Technology

MIT Develops Recyclable 3D-Printed Glass Blocks for Construction Applications

Published

on

By

MIT develops recyclable 3D-printed glass blocks for construction

The use of 3D printing has been praised as an alternative choice to traditional construction, promising faster construction times, creative design and fewer construction errors, all while reducing the carbon footprint. New research from MIT points to an interesting latest approach to the concept, involving the usage of 3D-printed glass blocks in the form of a figure eight, which may be connected together like Lego bricks.

The team points to glass’s optical properties and “infinite recyclability” as reasons to pursue the fabric. “As long as it’s not contaminated, you can recycle glass almost infinitely,” says assistant professor of mechanical engineering Kaitlyn Becker.

The team relied on 3D printers designed by Straight line — is itself a spin-off of MIT.

This article was originally published on : techcrunch.com
Continue Reading

Technology

Introducing the Next Wave of Startup Battlefield Judges at TechCrunch Disrupt 2024

Published

on

By

Announcing our next wave of Startup Battlefield judges at TechCrunch Disrupt 2024

Startup Battlefield 200 is the highlight of every Disrupt, and we will’t wait to search out out which of the 1000’s of startups which have invited us to collaborate can have the probability to pitch to top enterprise capitalists at TechCrunch Disrupt 2024. Join us at Moscone West in San Francisco October 28–30 for an epic showdown where everyone can have the probability to make a major impact.

Get insight into what the judges are in search of in a profitable company as they supply detailed feedback on the evaluation criteria. Don’t miss the opportunity to learn from their expert insights and discover the key characteristics that result in startup success, only at Disrupt 2024.

We’re excited to introduce our next group of investors who will evaluate startups and dive into each pitch in an in-depth and insightful Q&A session. Stay tuned for more big names coming soon!

Alice Brooks, Partner, Khosla Ventures

Alicja is a partner in Khosla’s ventures interests in sustainability, food, agriculture, and manufacturing/supply chain. She has worked with multiple startups in robotics, IoT, retail, consumer goods, and STEM education, and led mechanical, electrical, and application development teams in the US and Asia. She also founded and managed manufacturing operations in factories in China and Taiwan. Prior to KV, Alice was the founder and CEO of Roominate, a STEM education company that helps girls learn engineering concepts through play.

Mark Crane, Partner, General Catalyst

Mark Crane is a partner at General Catalysta enterprise capital firm that works with founders from seed to endurance to assist them construct corporations that may stand the test of time. Focused on acquiring and investing in later-stage investment opportunities equivalent to AuthZed, Bugcrowd, Resilience, and TravelPerk. Prior to joining General Catalyst, Mark was a vice chairman at Cove Hill Partners in Massachusetts. Prior to that, he was a senior associate at JMI Equity and an associate at North Bridge Growth Equity.

Sofia Dolfe, Partner, Index Ventures

Sofia partners with founders who use their unique perspective and private understanding of the problem to construct corporations that drive behavioral change, powerful network effects, and transform entire industries, from grocery and e-commerce to financial services and healthcare. Sofia can also be one of Index projects‘ gaming leads, working with some of the best gaming corporations in Europe, making a recent generation of iconic gaming titles. He spends most of his time in the Nordics, but works with entrepreneurs across the continent.

Christine Esserman, Partner, Accel

Christine Esserman joined Acceleration in 2017 and focuses on software, web, and mobile technology corporations. Since joining Accel, Christine has helped lead Accel’s investments in Blackpoint Cyber, Linear, Merge, ThreeFlow, Bumble, Remote, Dovetail, Ethos, Guru, and Headway. Prior to joining Accel, Christine worked in product and operations roles at multiple startups. A native of the Bay Area, Christine graduated from the Wharton School at the University of Pennsylvania with a level in Finance and Operations.

Haomiao Huang, Founding Partner, Matter Venture Partners

Haomiao from Venture Matter Partners is a robotics researcher turned founder turned investor. He is especially obsessed with corporations that bring digital innovation to physical economy enterprises, with a give attention to sectors equivalent to logistics, manufacturing and transportation, and advanced technologies equivalent to robotics and AI. Haomiao spent 4 years investing in hard tech with Wen Hsieh at Kleiner Perkins. He previously founded smart home security startup Kuna, built autonomous cars at Caltech and, as part of his PhD research at Stanford, pioneered the aerodynamics and control of multi-rotor unmanned aerial vehicles. Kuna was part of the Y Combinator Winter 14 cohort.

Don’t miss it!

The Startup Battlefield winner, who will walk away with a $100,000 money prize, can be announced at Disrupt 2024—the epicenter of startups. Join 10,000 attendees to witness this breakthrough moment and see the next wave of tech innovation.

Register here and secure your spot to witness this epic battle of startups.

This article was originally published on : techcrunch.com
Continue Reading

Technology

India Considers Easing Market Share Caps for UPI Payments Operators

Published

on

By

phonepe UPI being used to accept payments at a road-side sunglasses stall.

The regulator that oversees India’s popular UPI rail payments is considering relaxing a proposed market share cap for operators like Google Pay, PhonePe and Paytm because it grapples with enforcing the restrictions, two people accustomed to the matter told TechCrunch.

The National Payments Corporation of India (NPCI), which is regulated by the Indian central bank, is considering increasing the market share that UPI operators can hold to greater than 40%, said two of the people, requesting anonymity because the knowledge is confidential. The regulator had earlier proposed a 30% market share limit to encourage competition within the space.

UPI has change into the most well-liked option to send and receive money in India, with the mechanism processing over 12 billion transactions monthly. Walmart-backed PhonePe has about 48% market share by volume and 50% by value, while Google Pay has 37.3% share by volume.

Once an industry heavyweight, Paytm’s market share has fallen to 7.2% from 11% late last yr amid regulatory challenges.

According to several industry executives, the NPCI’s increase in market share limits is more likely to be a controversial move as many UPI providers were counting on regulatory motion to curb the dominance of PhonePe and Google Pay.

NPCI, which has previously declined to comment on market share, didn’t reply to a request for comment on Thursday.

The regulator originally planned to implement the market share caps in January 2021 but prolonged the deadline to January 1, 2025. The regulator has struggled to seek out a workable option to implement its proposed market share caps.

The stakes are high, especially for PhonePe, India’s Most worthy fintech startup, valued at $12 billion.

Sameer Nigam, co-founder and CEO of PhonePe, said last month that the startup cannot go public “if there is uncertainty on regulatory issues.”

“If you buy a share at Rs 100 and value it assuming we have 48-49% market share, there is uncertainty whether it will come down to 30% and when,” Nigam told a fintech conference last month. “We are reaching out to them (the regulator) whether they can find another way to at least address any concerns they have or tell us what the list of concerns is,” he added.

This article was originally published on : techcrunch.com
Continue Reading
Advertisement

OUR NEWSLETTER

Subscribe Us To Receive Our Latest News Directly In Your Inbox!

We don’t spam! Read our privacy policy for more info.

Trending