Enterprise capital will get much less numerous in 2020 – .

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Venture capital gets less diverse in 2020 – TechCrunch

Welcome back to The . Exchange, a weekly newsletter for startups and markets. It is largely based on The daily column that is displayed for Extra Crunchbut free and made for your weekend reading. Here you can sign up.

First, big congratulations on getting through the week. If you live in the United States, you have just experienced one of the wildest news weeks ever. Quick headlines and panic have been our lot since last Friday when the President announced he was COVID-19 positive. We are all very tired. You will get points if you only survive.

Second, this weekend I wanted to bring you something uplifting that you deserve. Unfortunately we won't talk about it.

On Friday, The Exchange reported new data on venture capital results for female founders in the third quarter. The dataset was aimed at the US, but we can assume that it illustrates global trends. Regardless of this nuance, the data was depressing.

In the third quarter, US founders and co-founders collected 136 rounds worth $ 434 million per PitchBook piece of data. That was a handful more rounds than in Q2 2020, but far fewer dollars. And compared to the third quarter of 2019, it was down across the board. Even more, as we noted in the article, the entire venture capital world has done very well.

Here's some PwC data pointing this out, and a bit more from my old employer Crunchbase. What matters is that female founders are worse off when VCs are super active. This will only perpetuate inequalities and inequalities in the startup market.

Speaking of which, here is some bad news. Vern Howard Jr., co-founder and CEO of Hallo, a startup that has raised nearly $ 2 million according to Crunchbase, has compiled some data on the Black founders' VC performance in the third quarter. Here's what he wanted to do:

(W) We wanted to hack the promises of so many venture capitalists and create a measure of how we can track investing in black founders over time. Therefore, our team from Crunchbase has compiled a list of all startups worldwide with a total funding amount of 500,000 to 20,000,000 US dollars that started a round between July 1st and October 1st. There were over 1,383 companies here and our team went through it one by one to see how many black founders there were.

There were 31.

Now you could open the funding bands to include both smaller and larger funding events. Regardless of the data limits, the resulting number – only 2.2% of the total – is a shame.

Market notes

  • The OpenDoor SPAC deal got clearer this week when we got a scratch on the finances. Some of the data is rough. Some of it is good. But we can now understand the bull case for its future, which helps.
  • Affirm announced that it filed privately to go public, while Root filed publicly to go public. More about the affirm news here and an insight into the Root S-1 here.
  • Be sure to check out YCharts' exit into a PE company. The startup announced to . that it will have $ 15 million in annual recurring revenue this year. Which should mean it was selling for a pretty penny.
  • Greycroft raised an ocean of new capital of $ 678 million, divided between an early stage check fund of $ 310 million and a growth stage fund of $ 368 million.
  • Why do we care about Greycroft? We don't per se, but it's worth noting that VCs are still able to raise during the current crisis. We talk a lot about how founders manage to increase during COVID and this is also something VCs need to do.
  • . has dug its way into the API launch area and spoken to VCs and Founders alike about the area and the reasons behind the 2020 explosion.
  • Airbnb's summer was painful, but its boom could prove legendary. The exchange looked at how it managed to recover so quickly.
  • And finally, from Market Notes, some rounds not to be missed: Zira.ai raised $ 3.1 million, Grid AI raised $ 18.6 million to help machine learning developers more, Instacart raised $ 200 million US dollars at a valuation of nearly $ 18 billion, mmhmm Unqork raised $ 21 million, raised $ 207 million in the week's best-named round, and we looked into what makes this the no-code -Market means, and GoPuff raised an additional $ 380 million in an epic round where the start of delivery is worth $ 3.9 billion.

Miscellaneous and miscellaneous

  • Freetrade, a UK-based robinhood, continued The Exchange, telling The Exchange that orders exceeded £ 1 billion in September to continue the savings and investment boom that fintech startups around the world have seen this year. That's not bad!
  • Freetrade recently rolled out a paid version of its service because the order flow payment method is not allowed across the pond to generate revenue on the basis of which Robinhood grows.
  • Yotta Savings is a startup that offers its users a savings option and the additional chance to win a big cash prize if they have saved their money with the startup. People whispered a bit in my ear, but I haven't written about it until now because I wasn't sure if the model was just a gimmick or something that would actually attract customers.
  • Well, Yotta has grown from 8,000 accounts to more than 30,000 in the past few weeks, hitting the $ 100 million deposit mark. So, I think we care now.
  • Coinbase lost one in 20 employees to its new strategy of staying neutral in political times, which the CEO sees as not linked to his core role of making money as a for-profit company with tectonic financial support.
  • On the same subject, Can from The Margins made it clear that “no politics is a political stance”. Right, and it's very conservative.
  • Additionally, the Coinbase CEO made a noise about how his company will "work to create an environment where everyone is welcome and can do their best job, regardless of background, sexual orientation, race, gender, age, etc." . Like it or not, this is a political stance that has nothing to do with the company's stated core mission. And a political struggle deserves it – namely equal access to work.
  • I'm going to toss a plug into the matter of a .-released VC for this piece and these technician thoughts on how to make sure your company lands on the wrong side of history about practically everything.
  • Ping Identity wrapped up our surprise bag this week and bought ShoCard. Ping is now a public company, so its business typically ends up outside our wheelhouse. In this case, however, this is important to us because . dealt with ShoCard (2015: “ShoCard is a digital identity card in the blockchain”) and because the startup does crypto-related work.
  • It's not every day that a public company deliberately and loudly records a blockchain startup for real money. More here if you want to learn more about the business.

Finally, this newsletter is great fun and I look forward to reading it. It's also a work in progress. So don't hesitate to reply to this and let me know what more of you would like to see. Or click reply and send me a cute picture of your pet. Both are fine with me.

Chat soon,

Alex