July 31, 2015
It’s been a wild week as far as the funding world is concerned – we’ve seen startups become unicorns, massive amounts of dollars moved around, and the creation of new venture funds. The momentum didn’t slow down today either with news of yet more new venture funds, an IPO, and some things to pay attention to further down the road: one involves Facebook, the other Uber.
We can only hope next week will be just as scintillating, so stay tuned for more news. Enjoy your weekend, my friends, and if you’re interested in having our daily roundup sent directly to your inbox make sure to subscribe here.
Foundry Venture Capital Creates a $225 Million Fund
Typically, Foundry Venture Capital invests between $5 and $15 million into a company over the span of its lifetime. However, they tend to only invest in early stage startups versus middle to late stage companies.
In an effort to keep putting robust capital behind concepts, ideas, entrepreneurs, and companies, Foundry announced that they’ve successfully closed their fifth fund. Just like their other four, this one will also be a $225 million pool.
Each of the funds has around 30 investments, give or take a few. Each is roughly invested a third into Colorado startups, one third into the Bay Area, and one third into the rest of the US.
NewSchools Venture Fund Launches
NewSchools Venture Fund, a venture philanthropy organization founded by KPCB’s John Doerr, announced they’ll be launching an accelerator focused on science education. The program will offer $50,000 to $150,000 in grants to up to 15 companies and nonprofits building tech to help students develop science and engineering skills.
BoardVitals Raises $1.1 Million
BoardVitals, led by Dr. Andrea Paul and Harvard graduate Daniel Lambert, announced a $1.1 million growth equity round of financing. To hear them tell it, it will help better educate medical professionals through their proprietary healthcare education ecosystem.
In other words, they’re building what some have taken to calling the Wikipedia of Medicine. It was an idea that Rock Creek Capital, a Salt Lake City growth equity fund fell in love with and decided to back.
This current financing comes to BoardVitals not long after they closed a successful seed funding round from investors Blueprint Health, Rothenberg Ventures, and Charles Boorady. They were also named “Most Promising Startup in New York” as the winner of the 2014 Gust Catapult startup contest.
SoulCycle Files to go Public
Soulcycle, a New York based fitness chain, has officially filed to go public. The chain generated $112 million in annual sales last year, with $25.3 million in net income from $7.6 million two years earlier. They’re a dynamite company, and you can read more about them here.
Some Things to Pay Attention to
Facebook Spends $763 Million on Stock Based Compensation
It was reported by PandoDaily that Facebook claims their Q2 revenue grew 39 percent, hovering around $4 billion. Their earnings, which excludes stock based compensation, clocked in around 50 cents per share, up from 43 cents a year ago.
As Pando says, “both figures were slightly above expectations, yet Facebook’s stock ended up declining 3.3 percent in after-hours trading”.
Paralleling that, the article states that the metric investors found most interesting surrounding Facebook’s financial report was that their total costs and expenses came out to $2.8 billion. It’s important to note here: the $2.8 billion is the figure you get when stock based compensation is included.
“These costs grew by 82 percent over the last year. That is, they are growing twice as fast as revenue,” reads the article.
And while it’s reported that Facebook spent $763 million on stock based compensation, it was more than twice of what they spent a year ago. In fact, the majority of that money went towards research and development.
Uber Looking to Expand to India
Uber announced it will invest $1 billion in resources to grow its business in India. Uber will go up against Ola, India’s largest cab hailing service, that’sbacked by $679 million in venture funding from investors including SoftBank, Sequoia, and Tiger Global. You have to wonder, given recent circumstances surrounding Uber in America and aborad, how well this expansion effort will go over with the people and cab drivers of India. We’ll keep you posted on any fallout.
Did you like this article?
Get more delivered to your inbox just like it!