Dealmaker by The Information Staff

Two times/week

Dealmaker

By The Information Staff

Reporters Cory Weinberg and Katie Roof tell you what’s coming next, who’s winning—and who’s losing—in the high-stakes world of startup investing.

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Recent Editions

Mike Moritz. Photo by Getty

‘You Come at The King, You Best Not Miss’

By Kate Clark · Feb 22, 2024 2:50pm PST · 1 comment

Mentally, I’ve been in Sweden this week, though the quote that best sums up our recent reporting hails from the gritty Baltimore streets of “The Wire”: “You Come at The King, You Best Not Miss.”Myself and my colleagues Maria and Cory have been grappling with a strange and rare attempted board coup at Klarna, the Stockholm-based “buy now, pay... Mentally, I’ve been in Sweden this week, though the quote that best sums up our recent reporting...

Photo by Tayfun Coskun/Anadolu via Getty Images.

I Was Wrong. We Haven’t Reached Peak AI Frenzy.

By Kate Clark · Feb 15, 2024 4:16pm PST · 3 comments

After Sam Altman’s sudden firing last year, I argued the chaos that followed his short-lived ouster would inject a healthy dose of caution into venture investments in artificial intelligence companies. I figured we’d finally reached the peak of the AI venture capital frenzy when a threatened employee exodus from OpenAI risked sending the value... After Sam Altman’s sudden firing last year, I argued the chaos that followed his short-lived...

Somesh Dash, general partner at IVP. Photo via IVP.

IVP’s New Fund Shows Growth Investors Are Ready to Get Off Sidelines

By Kate Clark · Feb 8, 2024 11:00am PST · 1 comment

The market for investing in mature startups has been in the dumps for the last year, as higher interest rates curb these startups’ growth. But plans by one of Silicon Valley’s oldest growth-stage VC firms to raise a new fund suggest such investors are ready to get back to work.IVP, a 43-year-old venture capital firm that’s backed Coinbase and... The market for investing in mature startups has been in the dumps for the last year, as higher...

Elon Musk at the UK Artificial Intelligence Safety Summit on Nov. 1, 2023. Photo by Leon Neal/POOL/AFP via Getty Images.

Elon Musk’s xAI Fundraising Dance

By Becky Peterson · Feb 1, 2024 12:54pm PST

Elon Musk at the UK Artificial Intelligence Safety Summit on Nov. 1, 2023. Photo by Leon Neal/POOL/AFP via Getty Images.

Elon Musk’s xAI Fundraising Dance

By Becky Peterson · Feb 1, 2024 12:54pm PST

Elon Musk doesn’t abide by the norms of Silicon Valley, where startups looking to raise money hold formal pitch meetings, during which executives show off fundraising slide decks full of information about their businesses, and outline their expectations around check size and valuation.So when Musk posted a message on X last Friday, denying a... Elon Musk doesn’t abide by the norms of Silicon Valley, where startups looking to raise money...

Ben Lerer. Photo by Variety/Getty Images.

Lerer Hippeau and VC’s Consumer to Enterprise Pivot

By Kate Clark · Jan 25, 2024 1:33pm PST · 2 comments

This week made it clear that venture capitalists have given up on the idea that they’ll make their career finding the next hit consumer marketplace, retail brand or media company.We reported that the core consumer team at Andreessen Horowitz, a firm known for bets on Pinterest, Instacart and Airbnb, has dissolved. Connie Chan, a longtime... This week made it clear that venture capitalists have given up on the idea that they’ll make...

Photo via Shutterstock

So Long, Unicorns. Hello, ZIRPicorns?

By Kate Clark · Jan 18, 2024 12:56pm PST

Aileen Lee, co-founder of seed venture capital firm Cowboy Ventures, famously coined the term “unicorn” to describe tech companies with billion-dollar valuations back in 2013. Now she’s using “ZIRPicorns” to describe the hundreds of startups that haven’t raised money since the zero-interest rate period and whose valuations are likely wildly off... Aileen Lee, co-founder of seed venture capital firm Cowboy Ventures, famously coined the term “...

Photo via Shutterstock

Fintech Venture Capital’s Undoing

By Kate Clark · Jan 11, 2024 3:27pm PST

Fintech startups, the technology services trying to disrupt the antiquated financial services industry, raised over $100 billion in venture capital funding in 2021, a record for the sector, according to PitchBook. That party is long over. And now many of the venture capitalists that led those deals are also moving on.Vetamer Capital... Fintech startups, the technology services trying to disrupt the antiquated financial services...

Art by Getty

Why One Venture Capitalist Decided to Call it Quits

By Kate Clark · Jan 4, 2024 2:25pm PST

Art by Getty

Why One Venture Capitalist Decided to Call it Quits

By Kate Clark · Jan 4, 2024 2:25pm PST

We didn’t even make it one week into the new year without a venture capital fund announcing that it’s shutting down. Jai Malik, founder of industrial startup–focused fund Countdown Capital, explained his decision to call it quits in a four-page letter to his limited partners this week. Not once did he mention the downturn in VC that’s made... We didn’t even make it one week into the new year without a venture capital fund announcing that...

Where Venture Capital is Going in 2024

Where Venture Capital is Going in 2024

By Natasha Mascarenhas · Dec 28, 2023 1:03pm PST · 2 comments

Venture capital had a few stumbles this year, including turnover at the top ranks of Sequoia Capital, Tiger Global and Greycroft, and the abrupt slowdown in dealmaking among these once-frenetic checkwriters. Startups that had raised billions of dollars in VC money, including Convoy, Olive AI and Veev, shut down and wiped out investors. Others... Venture capital had a few stumbles this year, including turnover at the top ranks of Sequoia...

Art by Mike Sullivan

‘Instability and Chaos’: What SVB and OpenAI Taught Us

By Natasha Mascarenhas · Dec 21, 2023 3:22pm PST · 1 comment

Many investors entered 2023 expecting a holdover of the past year’s doldrums: little dealmaking (except for artificial intelligence), cratering valuations and a growing number of down rounds. They weren’t disappointed—but few if any of them predicted the events that really defined venture capital and startup investing this year: the March... Many investors entered 2023 expecting a holdover of the past year’s doldrums: little dealmaking...

The Coterie CEO Ethan Agarwal. Photo courtesy of The Coterie.

An Andreessen-backed Startup Bets on VC’s Expansion

By Kate Clark · Dec 14, 2023 4:03pm PST · 1 comment

This week I spoke to Andreessen Horowitz general partner Anish Acharya and Initialized founder Garry Tan about a two-year-old startup financial services startup they’ve backed: The Coterie, which sells software to help wealthy individuals, fund managers and institutional investors manage their investments in venture capital funds and other... This week I spoke to Andreessen Horowitz general partner Anish Acharya and Initialized founder...

Marcie Frost, CEO of Calpers. Photo by Bloomberg via Getty Images.

Calpers’ $4.5 Billion Venture Bet

By Kate Clark · Dec 7, 2023 2:52pm PST · 2 comments

Marcie Frost, CEO of Calpers. Photo by Bloomberg via Getty Images.

Calpers’ $4.5 Billion Venture Bet

By Kate Clark · Dec 7, 2023 2:52pm PST · 2 comments

Here’s a number that might surprise you: In the first six months of the year, California Public Employees’ Retirement System committed about $4.5 billion to venture capital funds, according to public filings. That’s almost 15% of the total capital raised by U.S. VC firms in the same period, and a staggering increase over Calpers’ 2022... Here’s a number that might surprise you: In the first six months of the year, California Public...

Sam Altman. Photo via Getty.

The End of the AI Frenzy; VC Divorces

By Kate Clark · Nov 30, 2023 2:05pm PST · 3 comments

Many would argue that today marks the one-year anniversary of the investor frenzy for generative artificial intelligence startups. It was exactly this time last year that OpenAI introduced ChatGPT, one of the most transformative new tech products in recent history. Investors had already gotten a taste for AI deals before then, thanks to... Many would argue that today marks the one-year anniversary of the investor frenzy for generative...

Discord CEO, Jason Citron; Moonpay CEO, Ivan Soto-Wright; OpenSea CEO, Devin Finzer. Photos by Getty

Venture Capitalists Can’t Hold Off on Markdowns Forever

By Kate Clark · Nov 16, 2023 2:10pm PST · 8 comments

A debate has resurfaced in the venture capital industry over the value of regularly updating portfolio startups’ valuations to better reflect current conditions—in particular, how aggressively to lower the value of the stakes. Many venture capitalists argue that markdowns are arbitrary and therefore meaningless, and that a VC firm’s limited... A debate has resurfaced in the venture capital industry over the value of regularly updating...

Photo via Adobe

Why a Stampede of Startups Will Try to Raise in the First Quarter

By Kate Clark · Nov 9, 2023 1:53pm PST · 2 comments

As winter turned to spring last year, venture investors told me startups desperate to raise cash were likely to set off a stampede of fundraising attempts. That never happened. Instead, startups went on extreme diets with the aim of making the cash they raised at the peak of the 2021 bull market last as long as possible.Another year went by.... As winter turned to spring last year, venture investors told me startups desperate to raise cash...

Palmer Luckey. Photo by Patrick T. Fallon via Getty.

Tension Brews in Defense Tech

By Natasha Mascarenhas · Nov 2, 2023 2:16pm PDT · 3 comments

Palmer Luckey. Photo by Patrick T. Fallon via Getty.

Tension Brews in Defense Tech

By Natasha Mascarenhas · Nov 2, 2023 2:16pm PDT · 3 comments

It’s not every day that you see a company like Anduril, a 2,200-person defense technology company last valued at $8.5 billion, sue a 6-person startup with just $4 million in venture backing. But, as my colleague Margaux and I reported this week, Anduril CEO Palmer Luckey is going after a much smaller upstart founded by his former employees,... It’s not every day that you see a company like Anduril, a 2,200-person defense technology company...

The SPVs Behind Venture Capital’s Biggest Bets

The SPVs Behind Venture Capital’s Biggest Bets

By Kate Clark · Oct 26, 2023 10:00am PDT · 2 comments

You might have noticed that Thrive Capital has made a number of bold bets this year, leading massive investments in Stripe, Ramp and OpenAI once again, even as other late-stage investors have pulled back. Special-purpose vehicles helped buttress the firm’s Stripe investment, while lowering the risk of its core fund’s performance. The same could... You might have noticed that Thrive Capital has made a number of bold bets this year, leading...

Photo via Shutterstock

Seattle’s More Pragmatic—And Quieter—AI Boom

By Kate Clark · Oct 19, 2023 4:23pm PDT · 3 comments

As someone who grew up in Seattle, then spent several years in San Francisco, I’ve gotten a good feel for the two cities’ tech scenes and how they differ. Those differences are more clear than ever as the generative artificial intelligence boom reverberates through both tech hubs.In San Francisco, techies have been pumping their chest about AI,... As someone who grew up in Seattle, then spent several years in San Francisco, I’ve gotten a good...

Photo by Tomohiro Ohsumi/Getty.

SoftBank's Secret Project

By Kate Clark · Oct 12, 2023 1:25pm PDT · 2 comments

If you've been a reader of The Information for several years now, you remember the wave of SoftBank Vision Fund investments that dominated our headlines. From WeWork to construction startup Katerra, the high-profile blow-ups were worthy of an Apple TV series!After enduring stain after stain on its reputation, the Vision Fund went into hiding and... If you've been a reader of The Information for several years now, you remember the wave of...

Dario Amodei, CEO and co-founder of Anthropic. Photo by Kimberly White via Getty.

Can AI Save Crypto Investors?

By Kate Clark · Oct 5, 2023 11:46am PDT · 1 comment

Dario Amodei, CEO and co-founder of Anthropic. Photo by Kimberly White via Getty.

Can AI Save Crypto Investors?

By Kate Clark · Oct 5, 2023 11:46am PDT · 1 comment

The trial of Sam Bankman-Fried is officially underway and the spotlight is back on the bankrupt crypto exchange he founded. Recall that FTX launched a $2 billion venture fund early last year and bought stakes in some of the top crypto companies. When FTX imploded late last year, its decision to play venture capitalist seemed like an... The trial of Sam Bankman-Fried is officially underway and the spotlight is back on the bankrupt...