Private Equity
There were a dozen venture capital deals announced yesterday, representing more than $100 million in raised capital. But this morning I’d like to focus on less than 1% of that tally: The $975,000 round for LearnBoost, which is developing a Web-based gradebook for teachers. Not interested in online education innovation? That’s ok, because this column is more about the financing than the company itself. Specifically, LearnBoost raised its $975k from four “big” venture capital firms: Atlas Venture, Bessemer Venture Partners, Charles River Ventures and RRE Ventures. It also had a bunch of angel participation – including from James Hong and Naval Ravikant – which means the average VC firm invested around $230k (assuming an even split and $10k per angel – all of which may be wrong).
3 min read · 27 July 2010
Optimism is breaking out all over the alternative asset class. Last week, we learned that venture capitalists no longer believe their industry is "broken." This week, private equity pros say that the credit crisis has ended or is on its way out within the next 12 months, according to the results of a survey by Rothstein Kass. Moreover, a majority of respondents said to expect more new fund launches this year than existing fund failures. Most respondents also expected increased IPO activity and downward pressure on fees (ok, GPs probably don't consider that last part to be good news, but I do). On the minus, 77% of respondents said that it would continue to take longer to sell portfolio companies, while just over half said 2010 deal-flow is weak. Get all the results after the jump...
1 min read · 26 July 2010
We're well into the second half of 2010, so I figured it was time to see which VC firms had been the most active so far this year. No big surprises, except perhaps that Intel Capital nearly fell out of the Top 10. Or maybe that Redpoint Ventures, which ranked fourth when we did a similar post back in March, has dropped to #28. What follows is from our VentureXpert database, based on global investment pace (MoneyTree numbers, on the other hand, are only for investments in U.S. companies). It only includes "institutional" VCs, as opposed to super-angels (some of whom would make the list). Per usual, just a reminder that money in doesn't always correlate to money out...
1 min read · 26 July 2010
Parody perfection...
1 min read · 22 July 2010
Moody's is out today with a new report on Harrah’s, the casino giant taken private two years ago for $27 billion. And its conclusions are not good for Harrah’s owners Apollo Management and TPG Capital. Instead, Moody’s virtually compares the pair — only identified as “management” — to degenerate gamblers. The company has enormous debts, but rarely takes the opportunity to pay them down. Instead, it keeps spending on new initiatives, hoping that the payouts will constitute salvation.
2 min read · 22 July 2010
1 min read · 22 July 2010
During a media call earlier today, Blackstone Group president Tony James said that the firm has held a $13.5 billion final close on its latest buyout fund. Had I been making the announcement, the word "finally" probably would have been added. This is the fund that Blackstone originally began raising with a $20 billion target in October 2007, long before most Americans had ever heard of credit default swaps or "President" Obama. It held a belated first close on just over $7 billion the following August (i.e., two years ago), cut the target to $15 billion and then hit a long dry patch. Somewhere along the way, James said that the fund would still reached "well into the teens." Blackstone had around $9 billion as of earlier this year, set a June 30 deadline, missed the deadline and then persuaded a bunch of fence-sitters at the last moment. Some have speculated that the carrots were sweetened fees, but James said today that there were no substantial term changes made between the first and final close (perhaps because it would have introduced "most favored nation" complications?).
2 min read · 22 July 2010
The Blackstone Group released Q2 earnings this morning, and will be hosting a media call at 9:30am ET. It's been a while since I've live-blogged on of these, and figured it was time (particularly because we're expecting an update on the firm's fundraising efforts). So be sure to check in here soon: Blackstone Group Q2 Earnings call
1 min read · 22 July 2010
My weekly small biz video for Reuters is about VC industry shrinkage, in light of conflicting new data. Per usual, filming just a few paces away from the home office:
1 min read · 21 July 2010
Interesting item in the SF Chronicle over the weekend. It’s about a proposed measure that would require all San Francisco city and county employees to contribute 9% of their pay toward their pensions. It also would double the cost of family medical coverage. One of the proposals big financial backers is Sequoia Capital’s Mike Moritz (and his wife), who have contributed $245k to the cause. Local labor leaders have responded by asking Nancy Pelosi to oppose any federal funding for Sequoia portfolio companies (including DoE grants). No word yet from
1 min read · 21 July 2010
