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

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...

Jony Ive. Photo via Getty.

The Beginning of the AI Phone Wars

By Kate Clark · Sep 28, 2023 1:47pm PDT · 3 comments

For years, Silicon Valley has been trying to figure out if hardware companies can generate venture scale returns, given the example of high-profile, venture capital–backed disappointments like Essential Products and Magic Leap. This challenging environment makes The Information’s recent reporting—that OpenAI CEO Sam Altman and iPhone designer... For years, Silicon Valley has been trying to figure out if hardware companies can generate...

Photo via Shutterstock

The New VC Mantra: It's ‘Time to IPO’

By Kate Clark · Sep 21, 2023 12:57pm PDT

“It’s time to build” became the rallying cry of venture capitalists after Marc Andreessen published his blog post in 2020, as the economy was reeling from the pandemic’s outbreak. More than three years later, a new one has entered the mix: It’s “time to IPO,” wrote Brad Gerstner, founder and CEO of investment firm Altimeter Capital, in a post on... “It’s time to build” became the rallying cry of venture capitalists after Marc Andreessen...

Nvidia and the Corporate VC Boom Ahead

Nvidia and the Corporate VC Boom Ahead

By Kate Clark · Sep 14, 2023 2:36pm PDT

Nvidia’s corporate development team must be exhausted. They’ve inked roughly 20 deals this year, according to financial data firm PitchBook and The Information’s reporting. For comparison, once-prolific VC investor Tiger Global Management has done about 30 startup deals this year.We’ve seen this movie before. In 2020, during an unprecedented... Nvidia’s corporate development team must be exhausted. They’ve inked roughly 20 deals this year,...

Jason Citron, CEO of Discord. Photo by Bloomberg via Getty.

Discord’s Midjourney Deal Could Supercharge Its Revenue

By Kate Clark · Sep 7, 2023 12:49pm PDT · 1 comment

Jason Citron, CEO of Discord. Photo by Bloomberg via Getty.

Discord’s Midjourney Deal Could Supercharge Its Revenue

By Kate Clark · Sep 7, 2023 12:49pm PDT · 1 comment

Welcome back!For months I’d heard murmurings about Midjourney, a little artificial intelligence image generator company that had grown to almost 15 million users and hundreds of millions in revenue without any venture funding. I found that the company is also profitable, a major feat for a bootstrapped startup. (Read my profile of the startup ... Welcome back!For months I’d heard murmurings about Midjourney, a little artificial intelligence...

Chamath Palihapitiya. Photo by Bloomberg via Getty.

The Summer of Stake Sales

By Kate Clark · Aug 31, 2023 1:25pm PDT

Venture capitalists need to show their limited partners they can make money off their past investments if they have any hope of raising another fund in the future. That’s what’s driving a number of attempted startup stake sales this summer. In two of the latest instances, Tiger Global Management and Chamath Palihapitiya’s Social Capital are... Venture capitalists need to show their limited partners they can make money off their past...

SEC Chairman Gary Gensler. Photo by Getty

New SEC Rules Could Hurt VC’s Newcomers

By Kate Clark · Aug 24, 2023 12:50pm PDT

The U.S. Securities and Exchange Commission approved new rules for private funds Wednesday meant to give limited partners—the individuals and institutions that invest in these funds—more transparency. The ramifications for the much larger private equity industry have drawn most of the attention, but venture capital funds will also need to bend... The U.S. Securities and Exchange Commission approved new rules for private funds Wednesday meant...

Photo via Ramp

Ramp’s Down Round and Why Startups Should Let Employees Cash Out

By Kate Clark · Aug 17, 2023 12:53pm PDT · 1 comment

Since it was founded in 2019, credit card startup Ramp has won over investors with a blistering pace of growth. As card payment volume surged, the startup’s valuation exploded from $1 billion in early to 2021 to over $8 billion last year, thanks to investments from Thrive Capital and Redpoint Ventures, among others. Those heady times are... Since it was founded in 2019, credit card startup Ramp has won over investors with a blistering...

GGV Capital Managing Partner Hans Tung. Photo via Getty.

GGV’s ByteDance Sale Won’t Solve Its China Dilemma

By Kate Clark · Aug 10, 2023 3:32pm PDT

GGV Capital Managing Partner Hans Tung. Photo via Getty.

GGV’s ByteDance Sale Won’t Solve Its China Dilemma

By Kate Clark · Aug 10, 2023 3:32pm PDT

For a long time the debate around American venture capital investment in China has centered on Sequoia Capital, the blue-chip VC firm that’s earned billions of dollars from its overseas investments. But since Sequoia announced in June that it would split from its Chinese counterpart, the spotlight has expanded to a cohort of smaller firms that... For a long time the debate around American venture capital investment in China has centered on...

Photo via Midjourney.

The Unicorn Fire Sales Ahead

By Kate Clark · Aug 3, 2023 11:19am PDT · 4 comments

Welcome back! Hopin, one of the most iconic startups of the pandemic era, said this week it sold its virtual event and webinar hosting business to RingCentral, and that its founder and CEO, Johnny Boufarhat, is stepping down. The sale marks a pitiful finale for the once-heralded startup.Similar to Clubhouse, the chat app valued at $4... Welcome back! Hopin, one of the most iconic startups of the pandemic era, said this week it...

Sequoia Capital's Menlo Park, Calif. campus. Photo by Bloomberg via Getty.

Why VC’s Platform Teams Are on the Chopping Block

By Kate Clark · Jul 27, 2023 11:00am PDT · 6 comments

Shortly after the exit of five of its partners, Sequoia Capital let go of seven members of its in-house recruiting and talent team, sending a clear signal to other firms that it’s time to reevaluate the platform teams, which grew exceedingly large during the record bull run. Across VC, I suspect there are thousands of these platform employees—... Shortly after the exit of five of its partners, Sequoia Capital let go of seven members of its...

Roelof Botha of Sequoia Capital. Photo by Getty

Sequoia Exits Add to Pressure on Junior Dealmakers

By Kate Clark · Jul 20, 2023 12:42pm PDT · 2 comments

Five partners have exited Sequoia Capital, I reported yesterday, one of the biggest personnel shake-ups at the legendary venture capital firm in recent history. It’s a sign of what’s coming for the broader industry. The departures included three junior dealmakers, or partners with less experience. Two of them, Kais Khimji and Daniel Chen,... Five partners have exited Sequoia Capital, I reported yesterday, one of the biggest personnel...

OpenAI CEO Sam Altman. Photo by Getty.

Who Could Lead OpenAI’s VC Fund?

By Kate Clark · Jul 13, 2023 4:29pm PDT · 1 comment

OpenAI CEO Sam Altman. Photo by Getty.

Who Could Lead OpenAI’s VC Fund?

By Kate Clark · Jul 13, 2023 4:29pm PDT · 1 comment

OpenAI is on the prowl for a seasoned venture capitalist or two to run its startup investment fund.The San Francisco developer of ChatGPT is gearing up to soon start raising its second fund, which will be far larger than its $175 million debut, representatives of OpenAI have told several venture capital investors. They want an established... OpenAI is on the prowl for a seasoned venture capitalist or two to run its startup investment...

Jay Graber, CEO of Bluesky. Photo via JayGraber.com

Betting on Bluesky

By Kate Clark · Jul 6, 2023 2:43pm PDT · 9 comments

If you’re like me, you’ve signed up for a minimum of three apps trying to compete with Twitter this year. First it was Mastodon, then Bluesky, and now comes Threads, the Instagram sibling app that launched yesterday and raked in an impressive 30 million sign-ups by this morning.It will be incredibly difficult for a tiny startup like Bluesky,... If you’re like me, you’ve signed up for a minimum of three apps trying to compete with Twitter ...

Photo by Getty

Three Reasons to Look Past the 40% Drop in VC Funding

By Kate Clark · Jun 29, 2023 12:23pm PDT

To my surprise, the recent boom in artificial intelligence investments has done little to dig U.S. venture capital funding out of its hole.VC funding decreased in the second quarter, which ends tomorrow, according to new data provided to The Information by Crunchbase. U.S. startups raised just $27.6 billion compared to $45.2 billion in the first... To my surprise, the recent boom in artificial intelligence investments has done little to dig...

Figma CEO Dylan Field. Photo by Bloomberg via Getty

Antitrust Threat to Figma-Adobe Deal Thwarts Hopes for VC Rebound

By Kate Clark · Jun 22, 2023 12:49pm PDT

Adobe’s $20 billion plan to buy design software startup Figma in September offered Silicon Valley venture capitalists brief relief from the downturn’s tight grip. But they might want to put the champagne away. European regulators plan to launch an investigation of Adobe’s deal, the Financial Times reported earlier this week. A few... Adobe’s $20 billion plan to buy design software startup Figma in September offered Silicon Valley...

Photo by Getty

The End of Megafunds

By Kate Clark · Jun 15, 2023 10:45am PDT · 6 comments

Photo by Getty

The End of Megafunds

By Kate Clark · Jun 15, 2023 10:45am PDT · 6 comments

Megafunds may be a relic of another era in venture capital. That’s not a bad thing. Insight Partners has reduced the target of its next fund 25% to $15 billion, the Financial Times first reported this week. Other firms, like Tiger Global Management and TCV, aren’t on track to meet their initial ambitious targets either.There aren’t enough... Megafunds may be a relic of another era in venture capital. That’s not a bad thing. Insight...