Venture Context: May 18

Hello there ????

How is it going?

Did you know that Chile ???? holds the title of the most entrepreneurial country in the world? An impressive 48% of founders in Chile believe that their product or service is groundbreaking. Now, as you settle in to read, I'm sipping a refreshing glass of mango lassi. What are you sipping? Let me know!

Now, let's dive into the exciting world of startups and innovation. Happy reading! ??

Today's Top Startup News ???

?? Seedcamp , the European early-stage investor, just closed its impressive $180 million "Fund VI," making it the largest fund to date. This sector-agnostic fund will back approximately 100 companies, focusing on software platforms in areas such as AI, cybersecurity, open source software, health tech, and fintech.

?? Insurtech startup bolttech raises $196 million in funding, valuing the company at $1.6 billion. Investors, including Tokio Marine Group and MetLife , recognize the potential of embedded insurtech in the global market.

?? Ripple acquires Swiss cryptocurrency custody company Metaco for $250 million, expanding its offerings to include custody, issuance, and settlement services for tokenized assets.

?? LayerZero Labs and Immunefi launch an impressive $15 million bug bounty program, inviting white hat hackers to uncover vulnerabilities in the LayerZero protocol, reinforcing security in the crypto ecosystem.

??? Stacklok , founded by Kubernetes co-founders, raises $17.5 million to focus on software supply chain security, addressing critical needs for machine learning teams.

?? Obie , the insurtech company for real estate, secures $25.5 million in funding led by Battery Ventures, empowering small-to-medium-sized apartment landlords with streamlined insurance processes.

?? Varda Space Industries aims to raise $25 million to revolutionize in-space manufacturing, with plans for autonomous "space factories" capable of producing sensitive materials in zero-G environments.

Thinking pot ??

???Cracking the Code: Navigating the Elusive Series B Funding Maze ??

In the world of startups and venture capital, the Series B round has gained a reputation as the toughest challenge in 2023. Early and mid-stage funding rounds have experienced significant declines, making the Series B the true test for entrepreneurs. With seed rounds plummeting from 1500 to 155 in Q1 of 2023, and year-over-year drops of 64% for seeds, 68% for Series As, 86% for Series Bs, and 80% for Series Cs, the funding climate is undeniably tough.

The market is still grappling with pricing norms, and startups flush with Series A funds are in no rush to raise more capital at potentially lower valuations. However, with time and more comparable transactions, new norms will emerge, requiring patience and data-driven decision-making. Ultimately, the resilience and innovation of entrepreneurs will shape the future of startup funding.

Here are my two cents:

1?? Patience is a virtue: The market is still determining pricing norms, making Series B funding a rare find. By waiting for the right timing and growing organically, founders can position themselves for better terms and higher valuations in the future. 2?? Data-driven decisions: As more comparable transactions clear the market, established norms will emerge. Founders should gather insights, analyze trends, and leverage data to make informed choices when it comes to funding rounds and investor partnerships.

In this dynamic world of startup funding, founders who balance patience with data-driven strategies are poised to navigate the Series B challenge and pave the way for their ventures' growth and success. ???

News Flash ??

?? Stellantis, the world's fourth-largest automaker, faces challenges due to impending tariffs on electric vehicle (EV) exports, leading to the closure of some UK operations.

?? Tesla's shareholders reject a proposal to disclose succession plans, but the company is expanding its efforts in India.

?? UBS expresses concerns about the rushed nature of the Credit Suisse merger, potentially carrying more risk than anticipated.

?? A former Apple engineer, Weibao Wang, is charged with stealing company secrets related to Apple's self-driving technology and fleeing to China.

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Capital Quest ??

Quiz Question 1: ???What is the term for a funding round that occurs before the Series A round and typically involves smaller investments from angel investors or early-stage venture capitalists?

Quiz Question 2: ???Which popular startup methodology emphasizes iterative development, validated learning, and quick pivots to adapt to market feedback?

(Yesterday’s answer to the startup trivia is SoftBank and Arthur Rock)

?? That's all for now, fellow entrepreneurs and startup enthusiasts! Remember to subscribe, share your thoughts, and stay connected. Let's continue thriving in the world of startups together. Subscribe to Venture Context today and be part of our vibrant community!

— Joseph Abraham