🗒️ Alternative funding methods draw startups away from venture capital
The Business Journals: Venture capital (VC) financing may be a method of choice for startups across the globe, but as alternative funding options become more widely available, some founders are doing what they do best: thinking outside the box. Alternative funding is an increasingly viable option for startups, particularly those who want or need to look beyond venture capital.
Venture capital funding isn’t the right solution for every startup. While the capital raised can be substantial, the process can be time-consuming and a distraction from revenue-generating activities. Finding a VC firm whose area of focus and strategy aligns well with your business can be difficult and convincing them to invest can be even more arduous. To obtain financing of any kind, understanding the value of your startup can be critical.
🗒️ Relay Ventures secures $10m for fifth fund to support startups
FinTech Global: Relay Ventures has received a $10m investment from Alberta Enterprise for its fifth fund, to support early-stage companies.
Founded in 2008, Relay has positioned itself as one of Canada’s leading independent VC fund managers.
The firm is presently investing out of its fifth fund which commenced in 2022. It has invested in more than 120 companies and successfully exited more than half through M&A and IPO.
Alberta Enterprise Corporation promotes the development of Alberta’s venture capital industry by investing in venture capital funds that finance technology companies.
Alberta Enterprise said it invested in Relay Ventures to support early-stage Alberta technology companies innovating in finance, real estate, sports and gaming as well as urban life. This is the second investment by Alberta Enterprise into Relay Ventures.
🗒️ 9 Best Crypto VC Firms & Web 3 Funds 2022
Washington City Paper: A cryptocurrency venture capitalist (VC) is an investment company that offers crypto VC funds to promising new blockchain businesses in exchange for equity. The top crypto VC firms offer new businesses operational expertise, distribution, and collaborations in addition to financial support.
All in all, when firms wish to maximize their returns on their investment, crypto VC firms are the best choice. This article discusses the top 10 crypto VC firms for crypto venture capital funds and focuses on the overall best choice: Block Media Labs. Let’s get into it!
🗒️ Sequoia Capital Apologizes to Its Fund Investors for FTX Loss
Wall Street Journal: Sequoia Capital apologized to its fund investors for the $150 million it lost on crypto exchange FTX, said people familiar with the matter, a rare moment of contrition for the storied venture-capital firm.
On the call, Sequoia‘s partners told the fund investors that the firm would improve its due-diligence process on future investments and that it believed it was misled by FTX based on its recent bankruptcy filing, the people said.
Sequoia Capital, an early backer of Apple Inc., Alphabet Inc.’s GOOG 1.51%increase; green up pointing triangle Google, and Airbnb Inc., ABNB 1.34%increase; green up pointing triangle has long been seen as the gold standard in the venture industry for its high investment bar. The firm earlier this month wrote off its entire investment in FTX—one of the largest written by a venture firm in the company—after the crypto exchange struggled to meet a wave of withdrawals. FTX filed for bankruptcy protection on Nov. 11.
In the call, a Sequoia partner said that the firm in the future will be in a position to have even early-stage startups’ financial statements audited by one of the Big Four accounting firms, the people said.