Wisconsin may rank last in the Kauffman Foundation’s startup index, and Madison’s venture capital numbers took a major dip in 2017. But according to Tom Chapman, things really aren’t so dire for area startups.Chapman is a serial entrepreneur-turned-consultant based in Omaha, and the chair of a data committee within the national Startup Champions Network. In a presentation in downtown Madison on Tuesday, he shared his assessment of how the “entrepreneurial ecosystem” is faring locally and regionally.Chapman, a self-described data nerd, shared a wide array of observations and recommendations, many of which were based on his own number-crunching. One of his key takeaways: Wisconsin is not last in the nation when it comes to entrepreneurship.While stressing that he doesn’t think Kauffman’s numbers are wrong, per se, Chapman expressed skepticism over the usefulness of the measures it uses. For example, he noted that the group uses an … [Read more...] about Grim venture capital numbers don’t reflect Madison’s ‘sparkling’ startup economy, analyst says
Music recognition service Shazam might sound like a simple idea recognizing your favorite tunes, but you'd be surprised to find out that to spur its growth, the company has raised $32 million in venture capital. The funds come from Kleiner Perkins Caufield and Institutional Venture Partners, which has previously backed Twitter, ComScore and Netflix.The deal can't beat photo-sharing social startup Color which managed to attract $41 million from the get go, but it still seems like a huge amount. Shazam's CEO Andrew Fisher clarified that the capital injection will be used to push Shazam into TV territory, as well as for growth acquisitions. It has already launched partnership with retailers like Old Navy and expects to start ad campaigns allowing users of the service to use the app with TV shows and movies. To clarify the justification for such an investment, Fisher mentioned that in 60% of US households people use Shazam while watching TV.Currently, the music recognition app has over 150 … [Read more...] about Shazam listens, recognizes the sound of $32 million in venture capital
Santa Clara’s Applied Materials has closed its venture capital arm, with apparently no explanation other than the filing it made to the SEC recently (wording contained in extended entry below). We connected with Julien Nguyen, one of the two managing partners of the small venture fund, called Applied Materials Ventures. He said it was unfortunate that Applied’s filing was made before he and his partner, Fahri Diner, could announce a transition strategy. They’re still in the process of doing that, and say they’re committed to finding a way of supporting the companies they funded. Applied Materials Ventures was designed to be the “eyes and ears” for the semiconductor company, with Nguyen and Diner monitoring the start-up terrain to help Applied stay up with tech trends. They were supposed to invest in semiconductor, communications and nanotech companies, but never found a suitable nanotech opportunity. Some of the venture arm’s investments … [Read more...] about Venture capital not for the weak of heart
Here’s a noteworthy summary of where venture capitalists predict their money will be going in the coming year, published today by the National Venture Capital Association. There are many VC views represented, but we’ll just pick on one: the revolution in advertising. There’s been a lot of hype about this, and some VCs see the revolution continuing next year — notably that “brands” will follow us wherever we go. Big company brands should forget advertising in newspapers or on TV, they say; instead, they should bombard people with messages directly on their cellphones and other devices. Here’s the insight from Heidi Roizen, a well-known venture capitalist at Mobius Venture Capital in Palo Alto. Advertising as we have known it is over. Brand owners need to go where you are, and that isnï¿½t on network television or the newspaper. In order to promote their brands and attract and maintain relationships with consumers, brand owners … [Read more...] about Where’s venture capital headed in 2005? Spam, for starters.
Mobile venture capital investment took a sharp turn upwards last year reaching $6.1 billion, almost as much as the 2006 high of $6.4 billion. The mobile industry now accounts for 34 per cent of all the venture capital in tech as CapitalIQ research showed. The growth is mostly due to a growing average value of deals. It was estimated that there were 416 deals made last year, while in 2009 and 2008 the number of deals stood at 269 and 284, respectively. The biggest deals – of course – came from the carriers and last year they made for a third of all the financings with a total value of $2.3 billion. Consumer mobile applications accounted for 9.8 per cent of the mobile deals with a value of $601.6 million. Interestingly, Intel Capital had the largest number of deals with 20 financings. Intel's Atom series of chipsets lack in marketshare in comparison to ARM, but the company made an attempt to regain its positions by striking a deal with Nokia for joint development of the … [Read more...] about Mobile venture capital investments grow to reach pre-crisis levels