News > Venture Capital

Video: Startups staking out a 'land grab' to claim users, customers internationally
Venture Capital
<p>Startups are making a "land grab" overseas for users and customers, says Shayne Veramallay, venture pipeline manager at DLA Piper. In this interview with NexChange, Veramallay says the pace of business is quickening and startups don't want to get left behind.</p>
Food safety issues cast a shadow over China’s O2O sector
Venture Capital
In China, where public confidence has been shaken by a series of food safety-related scandals, the growth of venture-backed startups developing tech solutions for the country’s fractured supply chains should be welcome. But it’s not that simple. Tech In Asia reports that China’s booming online-to-offline (O2O) sector has been getting some n   egative attention from the jittery Shanghai State Food and&hellip;
The first signs of a unicorn extinction event?
Venture Capital
<p>This week it was revealed that Fidelity Investments marked down the value of its stake in social photo app Snapchat by 25%. Now Fortune reports that Fidelity is marking down several other portfolio investments, including two other unicorns: e-cigarette maker NJoy and HR software developer Zenefits.</p> <p>The rout doesn't stop there. Last month, the Wall Street Journal reported that cloud storage startup Dropbox was warned by investment bankers that it would not be able to IPO at its last $10 billion valuation. Even more recently,  Square – the payments firm headed by Twitter CEO Jack Dorsey – set its IPO terms far below expectations with a price range of $11 to $13. Assuming a mid-point price of $12, this would value the company at around $4 billion, far below its $6 billion valuation at its last private fundraising round.</p> <p>This is scratching the surface. Silicon Valley has known for a long time that many of its unicorns are painfully overvalued, and few can have any real expectation of going public at their current private market valuation. The tech bubble has begun to wobble. Will it go down with a fizzle or a bang?<br /> Photo: Baltasar Vischi</p>
Golden Gate bets $4m on Southeast Asia with six new deals
Venture Capital
<p>Singapore-headquartered venture capital firm Golden Gate Ventures has just revealed six new additions to its portfolio worth $ 4 million. The deals are further evidence that early stage investment appetite is still strong in Southeast Asia despite fears that VCs are tightening their purse strings elsewhere in Asia. These are new the additions:</p> <p> Claim Di in Thailand<br /> GoQuo in Malaysia<br /> Stamp in Thailand<br /> Alodokter in Indonesia<br /> Ruma in Indonesia<br /> IndoTrading in Indonesia</p> <p>The news comes just two weeks after the VC made a bet on Thai online payments gateway Omise.co, its biggest Southeast Asian investment to date and its first Thailand deal in two years. Golden Gate also made recently made recent deals with Singapore’s HipVan and Indonesia’s Laku6, both e-commerce startups. Vinnie Lauria (pictured), one of the VC’s co-founders, tells NexChange there has been a pick up in interest in both Thailand and South Asia as a whole.<br /> “Southeast Asia is becoming more attractive to investors as valuations for good startups still remain quite low when compared to other parts of Asia. Thailand has definitely seen a pickup in activity because the ecosystem has reached a point where we are seeing a lot of co-working spaces and incubators being set up.”<br /> Lauria adds that Golden Gate is now a third of the way through its $50 million second fund which was announced in July – about half of the fund is reserved for new investments while the rest is earmarked for follow-on investments into Goldengate's existing portfolio companies.<br /> Photo: Randy Stewart</p>
Can Australia's visa program attract China's angels?
Venture Capital
<p>Australian start-ups have long suffered from a dearth of venture capital funding, thanks to the gaping hole left by local superannuation funds withdrawing from the asset class in recent years. But now the country has revamped its Significant Investor Visa (SIV) program, there is hope more wealthy Chinese will park their cash into Australian startups. </p> <p>The Australian Financial Review (AFR) reports that Chinese investors, spooked by economic volatility back home, are lapping it up so far. In the first three months since the program relaunched, investors have put in 70 SIV applications worth $350 million of investment in the past three months. </p> <p>VC don’t get all that money but Chinese investors must put at least 10% of their minimum 5 million Australian dollars ($3.5 million) into VC, while 30% needs to go into small listed companies. Its an improvement on the last visa program which was launched in 2012 but then suspended by April, 2014 because of abuse. Most of the money was going  into low risk assets. </p> <p>So far their is only about $24.7 million potentially available to startups through the scheme. Not a lot but it’s a strong start. Andrew Martin, managing director, at Moelis, which is managing some of these new investments, told AFR:  <br /> "The old scheme was producing around 50 visas a month [$3 billion in annual investment] and we believe it will get back up to that level over time."<br /> Wishful thinking? Perhaps, but the government is not only one betting on China's appetite for Australia. Sapien Ventures, set up in July, is looking to get a slice of a the pie by raising 50 million australian dollars from this the predicted Chinese angel influx.<br /> Photo: Paul Bica</p>
Elite startup club names top UK tech companies
Venture Capital
Silicon Roundabout doesn't sound quite as sexy as Silicon Valley, but it's looking to compete with the California tech space. Silicon Valley Comes to the U.K. (SVC2UK) has chosen 58 new startups they think have potential to hit revenue of 100 million pounds in the next three to five years, writes Business Insider. The 58 companies added to the "Scale Up
Maybe it's not so hip to be Square
Venture Capital
Square announced Friday that it will price its upcoming IPO at $11 to $13 a share, making a valuation of about $4.2 billion. Square was most recently valued at $6 billion, so where's the beef? Square is erring on the side of caution as it has watched other tech companies fall short with their own IPOs, reports Wired. At the
Breaking gender barriers in startups
Venture Capital
In the Fortune list of 80 start-ups worth $1 billion or more (dubbed unicorns) published last January, only four had female CEOs. But, perhaps barriers in the tech world are being broken down. "The success of prominent female leaders such as Facebook‘s Sheryl Sandberg and Yahoo‘s Marissa Mayer are bringing more attention to women in the tech sphere...An accomplished number of female
Sequoia makes its first foray into Taiwan with AI investment
Venture Capital
<p>Venture capital behemoth Sequoia Capital has made its first incursion into Taiwan, leading a $23 million Series B round investment in Appier, a "smart marketing" company using artificial intelligence. </p> <p>The startup, which announced its investment on Tuesday, uses AI to tracks the browsing habits of web audiences across multiple devices in order to provide better targeted advertising. </p> <p>UOB Venture Management, JAFCO Asia, TransLink Capital, and MediaTek Ventures are among those who also took part in the deal which brings Appier's total funding to $30 million. CEO and co-founder Chih-Han Yu, who has seen his company grow 600% since its Series A round in June 014, said:<br /> “We are living in a post-mobile era: the era of cross screen. Artificial intelligence is the best approach to resolve this complexity and make cross screen easy. In fact, advertising is just the beginning. We believe in the future our AI can help businesses solve a variety of difficult analytical problems.”<br /> Photo: Allan Ajifo</p>
Square readying IPO prepares to hit the road for Thanksgiving pricing
Venture Capital
<p>Square is ready to hit the road. According to unnamed sources at CNBC, the payment app founded by Twitter CEO Jack Dorsey is revving up to price its shares by Thanksgiving week.</p> <p>In a filing with the SEC, Square has said it hopes to raise $275 million. The company raised money last year at a valuation of $6 billion.</p> <p>Square is a favorite among payments mavens and it is ubiquitous among small merchants. But just how it makes money is unclear. It seemed destined for greatness when Starbucks forged a deal with the fledgling company about three years ago. Turns out, Starbucks is a better negotiator than Square, which never got much customer traction for its wallet.  Investors are also concerned about just how much attention Dorsey will be paying to the payments company, which is in a very crowded space.</p> <p>&nbsp;</p>