Daniel Rathauser

CRV's recent decision to return $275M from its later-stage Select Fund highlights the growing caution around inflated valuations. As capital becomes more selective, this move signals a recalibration, especially for late-stage startups where liquidity is tighter and exits are delayed. While this news centers on a later-stage fund, we may also see new early-stage funds raising less capital going forward. With a more conservative approach across the board, founders at all stages should expect increased scrutiny and a more measured funding environment in the near term. https://lnkd.in/grG7u_KK

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This is an insightful article from Fortune on fund manager activities in the Miami area. I had forgotten that mega $40 billion+ AUM venture capital fund manager Andreessen Horowitz opened up a Miami office amidst the historic South Florida hype era in 2022. It looks like the office was closed in May 2024 as the space was seldom utilized. This seems to be the case for many of the venture capital (and overall private markets) fund managers who came to Miami in the #hype era. Generally speaking, on the limited days I have been in the Miami area, many people I have reached out to at fund management firms are often traveling or not in the area, so this low occupancy seems to be the case across the board. As much as I love Miami and it's latin vibe and cultural diversity - it is nowhere close to replacing #NYC or the SF Bay Area, but I am encouraged in its increasingly developing role as a place for RIAs/Wealth Managers and family offices that are developing their investment activities in private markets and alternative assets overall. #alternativeassets #miami #southflorida #privatemarkets #fundmanagers #familyoffices #capitalmarkets #a16z #venturecapital #fundmanagers

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One of the most exciting questions from this interview was "what key attributes do private equity firms seek in targeting healthcare, biotech, and life science companies for acquisition?". Private equity firms are increasingly attracted to the healthcare, biotech and life sciences industries due to their resilience against economic cycles. Attributes that PE firms prioritize include: Stability and Growth Potential: Companies that demonstrate consistent revenue growth and have a solid track record of performance are highly attractive. The ability to withstand economic downturns and maintain steady growth is a crucial factor. Service and Software Focus: Companies that provide essential services and software solutions within the healthcare ecosystem are less vulnerable to regulatory changes and scrutiny, making them reliable investment targets. Regulatory Compliance and Low Risk: PE firms typically avoid companies with high science risk. Instead, they favor businesses with well-established products, services and technology. Specialization and Expertise: Many PE firms seek companies with specialized knowledge and capabilities that align with their strategic focus areas, ensuring they can add value and drive growth post-acquisition. Thank you to the Los Angeles Times for inviting me to participate in this issue! I am honored to be able to contribute to this piece. If you'd like to discuss any of the insights from this issue, reach out to me directly. #privateequity #lifesciences #healthcareservices #biotech #investmentbanking #businessvaluation

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🚀 Join Us at the Smart Business Dealmakers Conference! 🚀 On behalf of the host committee, I’d like to personally invite you to the Smart Business Dealmakers Conference happening on Thursday, September 26, 2024, at the Westwood Country Club. This is your chance to engage in insightful discussions on two crucial topics: Navigating Sell-Side Strategies in This Market: Exploring both traditional and non-traditional options in today's dynamic environment. The Path to Successful Acquisitions: Uncover strategic and creative financing techniques for the buy-side. We'll also be diving into how high interest rates, political uncertainty, and the rise of AI are impacting dealmaking. It's set to be an engaging and thought-provoking day! If you'd like to attend, tag me in the comments, and I'll be happy to send you a link for a couple of free tickets as well as discounted tickets. Don't miss out on this opportunity to connect and learn! #DealmakersConference #BusinessDeals #Acquisitions #SellSideStrategies #BuySideFinancing #Networking #RealEstate #AI #MarketTrends #HighInterestRates #Acumen #RealEstate #StudentHousing #InvestmentOpportunities #MultifamilyInvestments #GP #LP #Acquisitions #NonPerformingAssets #PrivateEquity #LPcapital #InvestmentOpportunities #Growth #Innovation #startup #business #funding #proptech #fintech #opportunity #dream #project #cre #brokers #realestate #property #share #mortgage #people #business JLL Transwestern Colliers Northmarq #cretech #future #studenthousing Ackman-Ziff

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https://lnkd.in/eZHyRyup Era Ventures, a NYC-based venture capital firm focused on investing in a broad range of business model innovations to catalyze positive change in the built world, launched its inaugural $88m fund. LPs include one of the country’s leading Ivy League Endowments, ICG Advisors, New York Presbyterian Hospital, The Ashforth Company, BentallGreenOak (BGO), Continental General Insurance Company (CGIC), Pelwood Holdings, First American, Bain Capital Ventures, Fenwick & West LLP, and others. Founded by industry veteran Managing Partner Clelia Warburg Peters, and also led by Partner Raja Ghawi, Era Ventures will deploy capital across multiple stages and a full spectrum of sector-focused innovations, from enablement technologies that improve existing processes to disruptive platforms that reshape the industry. The firm has identified seven core business models driving change, including but not limited to SaaS and AI, marketplaces, embedded fintech, and hardtech ventures leveraging new technologies to optimize physical assets, and will actively invest across all of these categories. Fund I has already backed founders across multiple stages: Marketplaces and tech-enabled services: Honey Homes, a digital handyman subscription service provider. Latii, a cross-border construction-materials marketplace. Welcome Homes, a platform to manage and build custom homes online. Ostrich, a next-generation real estate listing service in the UK. Fintech: Shepherd, an embedded insurance platform designed for the construction industry. Truehold, a single-family rental company that combines home sales and rental leases. Homeward, an embedded financial platform powering residential real estate transactions. Hardtech: PassiveLogic, an AI-enabled platform for autonomous buildings. ViaBot, a Robotics-as-a-Service facility management platform. Vertical AI and SaaS:  Indigo, an AI-powered platform to facilitate residential real estate transactions. Peters has been a leading investor in the PropTech space since its early days — first as a co-founder of MetaProp, one of the original, strategically backed PropTech funds, and then as a Venture Partner at Bain Capital Ventures, a generalist venture firm.

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NYDFS SUPERINTENDENT SAYS MORE CRYPTO ENFORCEMENT COMING – speaking to Bloomberg at DC Fintech Week: •        Superintendent Adrienne Harris said “absolutely” when asked if there are “big cases coming down the pike for crypto firms, stable coin firms or even market makers in the space.” •        Superintendent Harris elaborated, saying “I think for us we really make sure we're using the full suite of tools at our disposal,” also including rulemaking, and guidance. •        Superintendent Harris noted “there's definitely a place for enforcement” and “you will see more from DFS and from other regulators....” •        With respect to areas of focus, the Superintendent noted, “the big issues we see with crypto, in addition to in the market making space, . . . there is certainly that potential for fraud and . . . where we see the biggest areas of vulnerability are often around illicit finance, so the AML BSA frameworks and cyber security, . . . but the market manipulation, fraud marketing schemes, those kinds of things are also top of mind and why we've issued guidance around those areas and I think you will see enforcement from us where necessary.” The full interview with the Superintendent may be found here: https://lnkd.in/eT6QvA9s For more on NYDFS see “The Blog About NYDFS”: https://lnkd.in/ehgw4x5s

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Unposted Venture Capital Fund Formation Gig in Silicon Valley: -Premier VC fund formation group adding 2022 and 2023 grads -Need to sit in Silicon Valley given that's the nerve center of the Cali team (not downtown SF) -This crew reps more VC and growth funds than any other law firm globally (> 500 total) -They're responsible for nearly 1/3 of all venture $$ raised worldwide -Ideally want experience in fund formation/private funds at top law firm, but will entertain a pivot in discrete compelling instances -Top market comp -3 days/week in-office -Need is now; will hustle and make the economics make sense for a pre-EOY start As always when I throw something on here, my team and I will get you an edge over competition given our relationship with this group. Ping myself (sd@damatosearch.com) or Gabriella H. (gh@damatosearch.com) to discuss confidentially.

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Benchmark’s $170M partners-only fund is a strong signal of confidence in venture-backed startups, especially at a time when many firms are tightening their belts. As I noted in my post last week, CRV recently downsized its fund in response to a more cautious market outlook. While it will take time to deploy the capital, Benchmark’s decision to raise this separate fund, using primarily personal capital, suggests that they see viable opportunities ahead and believe in the potential for strong returns, despite broader market caution. This contrast in strategies highlights how firms are adapting to current market conditions - Benchmark sees untapped potential, while others take a more conservative stance. #VentureCapital #Startups #MomentusLegal #MarketTrends https://lnkd.in/gpDXjKcE

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Earlier this summer, the Fifth Circuit Court vacated the SEC's Private Fund Adviser Rules (PFAR), offering relief to private equity firms grappling with heightened oversight. In this article, Emilie Abate, former SEC compliance examiner and now a director at Iron Road Partners, spoke with Middle Market Growth about the broader impact and what's next for PE firms as the compliance landscape continues to evolve. However, the SEC isn't backing down—NAV loans, AI, and cybersecurity are emerging areas of focus. Many PE firms are voluntarily increasing transparency, as investors demand more detailed quarterly reporting, even post-PFAR. https://lnkd.in/ewr_7bVi #PrivateEquity #Regulation #PFAR #Compliance #SEC

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"Industrial software trades with less volatility and at a premium multiple to broader SaaS comparables" 🏭 🤖 As industrial tech investors, Onur Canlitepe and I are observing that our early-stage investments have >90% survival rate (over 7 years, despite investing in the earliest stages) with 2/3rds receiving follow on investments. We think industrial tech investments offer higher stickiness, more steady but perhaps less explosive growth (e.g. compared to some consumer-facing software/apps). As Atlas Ventures, we believe that industrial tech investments can offer a different risk-reward profile to LPs within the VC asset class. Perhaps this is the reason why industrial tech companies are trading at a higher multiple in public markets compared to general SaaS.

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If you were curious about the state of the #VentureCapital market / industry, hear what Peter Rex has to say on the topic. #VC like all other asset classes and industries goes through cycles, typically with the advancement and introduction of new #Technologies / #Innovations / #BusinessModels / #Markets. Currently, #ArtificialIntelligence / #AI is propping up the VC space. Emerging managers and/or junior and rising associates would do well to be on the lookout for what's next (i.e. 5 to 7 years out). Keep your eyes peeled and your powder dry :)

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Good morning from sunny Silicon Valley! Despite a consistent slowdown, global venture capital investment held its ground this April, with a total of $22 billion in funding. Here are some points we can learn from last month's data: 🔹 Seed-stage companies saw $2.4B distributed among 1,000 startups, highlighting continued interest in early innovation. 🔹 As for mature startups, over $10.7B was allocated to more than 150 Series C and beyond companies. 🔹 Biotech and healthcare led the funding race with $5.7B, representing 26% of the total investments. AI followed with notable advancements, including a notable $1B funding round. 🔹 The IPO scene showed signs of warming up with significant entries, signaling a cautious yet optimistic outlook towards receptivity within the public market. 🔹 Generative AI is continuing to shape the landscape, benefiting established tech giants and new companies alike, and emphasizing the transformative potential of AI across sectors. As we move forward, these trends will likely dictate the pace and direction of innovation, making this an exciting time to be involved in the tech and venture capital space. Check out this Crunchbase article for more - https://lnkd.in/gk_HD2xf #mergersandacquisitions #venturecapital #innovation #artificialintelligence #fintech #techlaw #foleyforward #garage2global Foley & Lardner LLP

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I am excited to see our Founder and Managing Partner Doug Cruikshank join in on such an impactful panel at the NYC Private Debt Conference. As the lines continue to blur between NAV Solutions and Secondaries, it is important for GPs and LPs to key in on these topics to better understand the direction the markets are trending. #Secondaries #FundFinance #NAVSolutions #NAVFinancing #PrivateEquity #PrivateDebt #PrivateCredit

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I'm proud to announce the Techstars NYC Fall 2024 cohort, which features startups in a range of industries, including Cybersecurity, AI, Fintech, HealthTech, LegalTech, HRtech, Gaming, and Augmented Reality. These companies were selected from thousands of applicants through a rigorous application, interview, and diligence process. We are excited about their accomplishments over the next few months and beyond. The Fall 2024 class includes: Basil Streamlined talent planning, management, and payments for creative and marketing teams in a single platform. Buildstash Automated archival and easy management of builds, simplifying the way app and game developers manage and share their builds. Conduit High-impact marketing videos for game developers using metadata, scalable designs, and AI. Dobbie Helps e-commerce brands reduce OPEX and achieve profitability quicker with an AI operating system, that automates marketing and operations. Hatchproof The Retention Solution for building aligned, engaged, and thriving teams. LendAPI A digital product builder and high-performance decision engine for banks to launch products in hours rather than months. NimblemindAI Enrich clinical datasets with risk scores and billing data, unlocking non-clinical revenue for healthcare organizations. OB2.AI Detect and respond to cyber threats in seconds.  Ozeki Technologies Software to automate negotiations for your business. Skyglass The software suite for filmmakers of the future. Our AI-powered app makes it easy for content creators to produce Hollywood-grade visual effects with just an iPhone. Triton Triton’s automated system synthesizes operating and financial data on private companies from fragmented online sources to help investors make better investment decisions. #givefirst #techstars #builtinnyc #techstarsnyc

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Interesting story and highlights the flagging VC ecosystem in Miami. Bloomberg: When Andreessen Horowitz opened an outpost in Miami Beach, the $43 billion venture capital giant bolstered the region’s ambitions of becoming a tropical tech mecca. Two years and a crypto meltdown later, that office has been quietly shuttered . . . The departure underscores the potential weakness of Miami’s staying power after the city lured a rush of finance and tech companies in recent years. Shortly after Andreessen Horowitz said it was opening the office, Miami’s crypto dreams began to crumble with the implosion of Sam Bankman-Fried’s FTX . . . Venture capital money flowing to Miami has flagged since 2022. Miami-based companies brought in $400 million in the second quarter, compared with $5.5 billion for 2022 as a whole, according to PitchBook data. By contrast, the artificial intelligence boom has given San Francisco even more of an edge as a tech capital. In the second quarter, companies in the Bay Area got $18.7 billion in venture capital funding . . . #miami #commercialrealestate #office #markets #investing #florida

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Series A or B wondering when to bring in a VP of Finance or CFO? It’s a crucial decision that can shape the future of your company. At this stage, financial leadership is not just about managing numbers but also scaling processes, securing funding, and driving strategic growth. My colleague Paul breaks down key signs that it’s time to hire and indicators for choosing between VP of Finance and a CFO #FinanceLeadership #CFO #StartupGrowth #SeriesA #SeriesB #NextGenLeadership

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That is a very large sum of money. NY Attorney General has reached an agreement with various Genesis entities to provide funds to investors who lost money in the collapse of Genesis (now in bankruptcy). This shows that it is not just the SEC, but state agencies as well, who continue to be active in regulating and bringing enforcement actions against digital asset firms. #digitalassets #crypto #cryptocurrency #assetrecovery #cryptofraud #cryptoenforcement

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Today LIVE in 1 hour: Lead investor Andreessen Horowitz (a16z) Bio + Health team in Arda Therapeutics joins us today for Family Office Insights Mercury Series Webinar featuring Adam Freund of Arda Therapeutics. Today: June 10 2024, 02:15 PM Eastern Time : RSVP: https://lnkd.in/gNyhUPuh Cells are the functional units of life. They are also the functional units of disease: many chronic diseases are caused by certain cell populations becoming too abundant or active. For example, subsets of stromal cells drives fibrosis, while the hyperactivity of particular immune cells leads to chronic inflammation. Arda Therapeutics is developing medicines to precisely remove these pathogenic cells, thereby treating diseases more effectively than by blocking individual proteins or signaling pathways. Their proprietary, single-cell-based discovery engine identifies pathogenic cells and specific markers to target them. They then design therapies to eliminate these - and only these - cells.

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The gold rush into venture by 'tourist VC's' from 2018-2021 has created a massive liquidity mismatch between fund sponsors and their LPs. The managers are focused on vanity metrics such as MOIC while investors are hoping for liquidity. When your fees are a percentage of AUM, this creates a powerful incentive to push your head in the sand and hope fair value eventually catches up. I think Sara Ledterman is spot-on here. Accounting firms all over the world will be FORCING managers to take write downs over the next 12 to 18 months. Opportunistic buyers of these assets should be in a fantastic position to acquire early-stage equity in future unicorns at fire sale prices!

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