The Venture Merry-Go-Round is Decelerating
Alex Wilhelm, Theresa Loconsolo, Mary Ann Azevedo, and Dominic-Madori Davis
October 6, 2023
34 minutes
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Hello and welcome back to Equity, a podcast about the business of startups. We dive deep into the numbers and nuance behind the headlines. This is our Friday show, where we discuss the week’s biggest startup and tech news.
Our Panel
Mary Ann Azevedo and Alex Wilhelm are joined by Dominic-Madori Davis, who you may know from the Found podcast. She’s an excellent addition to our team!
This Week’s Topics
We have a lot to cover this week:
- SBF Trial Update: The trial has everyone glued to their screens.
- Rainforest’s $8.25 Million Equity Raise: This Atlanta-based fintech startup is looking to take market share away from Stripe.
- New Fundraises: At One raised $375 million for climate-focused initiatives, while Section 32 closed a $525 million fund and Greylock secured $1 billion.
- Venture Capital Totals: Despite the new funds, VC totals dipped once again in Q3 2023. Alex has more on the numbers.
- Fearless Fund Barred from Awarding Grants to Black Women Founders: Dominic-Madori Davis joins us to discuss how data can improve social impact investing.
Episode Highlights
The Equity team will be back bright and early on Monday with some exciting interviews lined up.
For episode transcripts, show notes, and more, head to the Equity Simplecast website.
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The Venture Merry-Go-Round is Decelerating
Alex Wilhelm, Theresa Loconsolo, Mary Ann Azevedo, and Dominic-Madori Davis
October 6, 2023
34 minutes
The venture merry-go-round, a term used to describe the rapid succession of startup funding rounds, seems to be slowing down. This week’s equity podcast delves into the numbers and nuances behind this trend.
Venture Capital Totals Dip Again in Q3 2023
Despite the influx of new funds, venture capital totals dipped once again in Q3 2023. Alex Wilhelm breaks down the numbers and explains what this means for startups and investors.
The Numbers Don’t Lie
While it may seem counterintuitive that venture capital totals would dip despite the numerous high-profile funding rounds, there are several factors at play:
- The overall number of deals has decreased, indicating a slower market.
- The average deal size has also decreased, suggesting that startups are raising less money than they were in previous quarters.
Rainforest Raises $8.25 Million to Take on Stripe
Atlanta-based fintech startup Rainforest has raised $8.25 million in equity funding, aiming to take market share away from the likes of Stripe. This move highlights the ongoing competition in the fintech space and the need for startups to differentiate themselves.
Fintech Showdown
Rainforest’s focus on providing a more user-friendly and transparent payment processing experience could be just what the market needs. With Stripe’s dominance, Rainforest has a tough road ahead, but this new funding round shows that they’re committed to making a dent in the industry.
Fearless Fund Barred from Awarding Grants to Black Women Founders
In a shocking turn of events, Fearless Fund was barred from awarding grants to Black women founders. Dominic-Madori Davis joins the Equity team to discuss how data can help improve social impact investing and address this issue.
Data-Driven Decision Making
Dominic-Madori explains that by analyzing data on grant recipients, Fearless Fund could identify areas for improvement and make more informed decisions. This approach not only helps the organization but also promotes greater transparency and accountability in social impact investing.
At One Raises $375 Million for Climate-Focused Initiatives
At One has raised a whopping $375 million to support climate-focused initiatives. This move highlights the growing interest in sustainable technologies and the need for more investment in this area.
A Step in the Right Direction
The climate crisis is one of the most pressing issues of our time, and At One’s new funding round demonstrates that investors are taking notice. By supporting companies working on climate-friendly solutions, we can make a real difference and create a more sustainable future.
Section 32 Closes $525 Million Fund
Section 32 has closed its latest fund with a whopping $525 million in commitments. This move highlights the continued growth of venture capital firms and their increasing interest in supporting startups.
A Growing Market
The venture capital industry is growing rapidly, and Section 32’s new fund is just one example of this trend. With more investors entering the market, startups have greater access to funding and resources, allowing them to scale and grow faster than ever before.
Greylock Secures $1 Billion in New Funding
Greylock has secured a massive $1 billion in new funding for its latest investments. This move highlights the ongoing dominance of top-tier venture capital firms and their ability to attract significant investment.
The Cream Rises to the Top
Greylock’s success is a testament to the firm’s expertise, network, and track record of investing in successful startups. With this new funding round, they’ll be able to continue supporting some of the most promising companies in the industry.
Conclusion
The venture merry-go-round may be slowing down, but it’s clear that the startup ecosystem is still thriving. With more investment flowing into sustainable technologies, social impact initiatives, and innovative startups, we can expect exciting developments in the coming months.
Stay Tuned
Join us next week on Equity for more insights, analysis, and discussion of the latest startup trends and news.
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