The market is getting smoked but there's a lot of great local action today – lot to get to.
The Big One
Reid: FoundationDB, the 'rock-solid' database company founded in Vienna in '09, was acquired by Apple for an undisclosed amount. The company (which had raised over $22M to date) creates a clean, multi-functional, secure product that allows for the storage of all types of data – and as of yesterday they are no longer offering downloads. I believe this is the first enterprise software acquisition for Apple and allows them to maintain the database functionality and talent inhouse. The logical fit for the product and team are on the backend of the iCloud, iTunes, and App store services.
Congrats to the FoundationDB team.
Making Moves
Reid: According to Primack, NEA has nearly closed its 15th fund, having locked in ~$2.57B of the $2.75B target cap. This will be the largest VC fund ever (NEA had the record at $2.6B, followed by Oak Investment w/ $2.56B). The largest fund raised in '14 was a16z's $1.7B Fund IV.
Having the big dog in the backyard is great for D.C., but unlike other pubs we know that a check written out of the Menlo Park office (larger investment team) for a non-D.C. company isn't pushing the needle for us. There has been a lot of recent activity however, and in addition to much of the biopharma investment that comes from the Chevy Chase office, here is a quick look at some of the recent ('14-'15) local investments NEA has made and applicable investor: TrackMaven (HarryWeller), NextNav (Peter Barris), APX Labs (Dayna Grayson), Framebridge (Grayson), Luminal (Mike O'Dell), FiscalNote, Appian(Weller).
Chris: I have spoken to execs over at TrackMaven, Luminal and FiscalNote, and growth is good. More importantly, I think 2015 will continue that trend. In terms of dollars, it may just be a smaller percentage for NEA but their regional importance shouldn't be discounted because of it.
Policy:
Chris: The SEC has voted in favor of new rules that would allow a type of equity funding sometimes referred to as an "IPO Lite,” or Regulation A+ offerings. The new rule implementation for under the JOBS Act will allow young companies to raise up to $50 million from non-accredited investors — those not registered with the SEC. Under the new regulation, applicants will be processed through a newly simplified SEC review.
Reid: Ironic that on a day where the public market is getting rocked, the SEC opens up a new, more risky avenue for individual investors. That being said this is important news, opening up a new potential funding source for startups and should impact existing platforms like AngelList and Kickstarter.
From an investor standpoint, it's exciting to think about the opportunity for anyone to corral the next unicorn, but in reality I think the initial excitement will be met with a more mild financial response. The amount of people who do not already qualify as investors but have the ability/knowledge/desire to invest in startups is limited.
Goss:
Chris: Fast growing Social Tables is bursting at the seams in their still new offices and looking to expand the size of its space with a potential move later this year.Reid: Nice. Moving into a new office and quickly outgrowing it is generally a good problem to have.
What We're Reading
Reach out
Tips? Rumblings? Complaints? Something you want to see in the email? Reid@dcinno.com, Chris@dcinno.com
