Global VC Funding Ticked Up In November Thanks To AI And Billion-Dollar Deals

Global venture funding totaled $28 billion in November 2024, Crunchbase data shows. That’s down from the $32 billion raised in October 2024, but up from the $21 billion raised in November 2023.

More than a third of funding last month came from just three companies that each raised billion-dollar-plus rounds: AI foundation model companies xAI and Anthropic, and quality engineering testing service Tricentis. READ MORE

VC Firms Like to Invest Locally

How beneficial is location when it comes to venture capital funding?

During the Covid-19 pandemic, when lavish tech campuses shuttered and tech workers began working from home, prominent venture partners announced they would whisk themselves to different, less costly pastures. Suddenly, as tech companies adopted remote work policies and meetings moved from Sand Hill Road to Zoom, it seemed like California’s badge as the tech startup capital of the U.S. was about to be revoked. READ MORE

They Turned Down an Early Pay Day to Maintain Control of Their Business. And Then Went on to Raise $190 Million.

"The next generation of consumers are living their best lives in online worlds like Roblox, Fortnite, and Discord." So says Jason Yeh, Co-Founder and General Partner of early-stage venture firm Patron. "We're all about investing in early-stage consumer companies that will shape how this gaming-native generation learns, shops, socializes, plays, invests, and, let's be honest, procrastinates online," he explained to Entrepreneur.

Patron launched in the fall of 2021. After starting their careers in venture capital, both Yeh and Patron co-founder Brian Cho went on to hold leadership positions at Riot Games, where Yeh helped launch and scale League of Legends over the next nine years. Their third Partner, Amber Atherton, built a YC and Forerunner-backed community platform that was acquired by Discord, where she helped the company scale to audiences outside of games. READ MORE

Venture Capitalists Are Pickier About What They Invest In — Here's How That Actually Benefits Startups

"More money, more success" has long been the driving force behind founder fundraising strategies. But a paradoxical truth is emerging: sometimes, less money can lead to better, more sustainable businesses.

When VCs infuse startups with significant capital early on, it's typically accompanied by an outsized valuation. It creates immense pressure. As a founder, I've experienced the challenge of raising a big round and then grappling with the expectations that come with it. READ MORE

From Founders To Funders: A Fresh Approach For Venture Capitalists To Find The Right LPs

In the third quarter of this year, venture capital fundraising tightened significantly, with only $66.5 billion raised — down 16% quarter over quarter and 15% year over year. Amid this challenging environment, institutional investors are being more cautious and reassessing their investment strategies. For some VCs, this has highlighted an often-overlooked fundraising approach: courting entrepreneurs, including ex-portfolio founders, as limited partners.

Here’s why it worked for us. READ MORE

The Beauty Of Bootstrapped Companies

In the world of startups, the allure of venture capital often overshadows the virtues of bootstrapping. Recent exits of bootstrapped companies — like Text Request’s acquisition by Commify, Syft Analytics’ sale to Xero, and Silo.AI’s exit to AMD — highlight the power and potential of staying self-funded. These examples underscore why more entrepreneurs should consider bootstrapping as a strategic choice, not as a fallback, focusing on sustainable growth which can become effective in times of trouble. READ MORE

Poor Valuation Practices Have Slowed Innovation

Consider a simple truth: Professional investing requires understanding value. If you cannot understand the value of an asset, and how it appreciates over time, you will not invest in it.

At one point in time, this understanding was the “moat” for venture capital firms. Those that could see value where others couldn’t were able to make decisions that resulted in outsized returns. Consider the investors who recognized the potential for online marketplaces in 1997, the space industry in 2002, or crypto in 2012. READ MORE

PE pressure could spur more tech M&A

In the wake of easing inflation and AI advances over the past year, some tech companies may be increasingly hungry to enter the M&A arena even as the new U.S. election has thrown a new type of uncertainty into the market, deal experts from accounting and consulting firm KPMG said in a virtual roundtable last week. 

This year has seen strong growth in terms of average deal size, and modest growth in terms of volume, both of which KPMG’s Anuj Bahal, the firm’s US deal advisory and strategy sector leader for tech, media and telecom, expects to continue through 2025.  READ MORE

2025 Private Equity Trends Outlook

In 2025, the private equity landscape will be shaped by several key trends, including the expansion of continuation vehicles as a vital liquidity tool, heightened regulatory scrutiny and antitrust pressures introducing both challenges and opportunities, and interest rate cuts and evolving buyer-seller risk tolerance creating a more complex deal environment.

Learn more about these important trends: READ MORE

Defense Tech Hits New Highs In 2024

Last week, defense and critical infrastructure tech startup Chaos Industries raised $145 million in a Series B — more than doubling its Series A from just last year.

The funding round was just another sign of how defense tech investment has exploded this year. The sector already has taken in more venture dollars than ever before and investment is showing few signs of letting up as defense systems become more dependent on tech, conflicts around the world heat up, and many expect a likely uptick in the Department of Defense’s budget after the recent election. READ MORE

Milestones Early VC Partners Look For And How To Stand Out

At BFG Partners, we invest in early-stage, high-growth consumer product companies. We’re fortunate to have the opportunity to support the health and wellness ecosystem, and we know firsthand what a difference growth capital can make for young companies competing for market share.

If you’re a new brand and considering bringing on a VC partner, here is what you need to know to get ahead of the game: READ MORE

The Arguments For Not Raising at a Unicorn Valuation

So for a while, unicorns took a bit of a breather.  With the stock market for tech stocks and cloud stocks in a big decline in 2022, unicorn production slowed down.  And what had become a rite of passage in 2018-2021 … “Becoming a Unicorn” … seemed to recede as a critical milestone.

But we’re back.  AI has refueled unicorns, and 100x, 200x+ deals for the very hottest, fastest growing AI B2B companies. READ MORE

Five Critical Venture Capital Trends To Watch In 2025

As we look ahead to 2025, the venture capital landscape is undergoing significant transformations driven by broader economic shifts and emerging technologies. Despite promising technologies garnering significant inflows, the overall investment climate in 2024 remains tough, with a 15% decline compared to the previous year.

Continuously exploring key trends for venture capital investments in 2025, I’ve identified several that have caught our fund’s attention. Notably, there’s a rise in mega-deals alongside the democratization of investment access. READ MORE

Emerging Trends in Private Equity in AI, Automation, and Finance

The private equity industry is at the cusp of a technological revolution, driven by advancements in artificial intelligence (AI), automation, and innovative financial strategies. These trends are reshaping how deal makers operate, offering new opportunities for efficiency, value creation, and competitive advantage.

Here’s a closer look at how these emerging trends are transforming private equity. READ MORE

Private Equity Finds Yet Another Way to Keep the Money Coming In

Private equity’s recent splurge of piling ever more debt onto already highly leveraged bets has sparked fears about financial-system risks. Banks, however, are positioning themselves to take advantage.

As buyout firms have struggled to sell companies in a difficult M&A market, many have turned to “net asset value” loans, where they borrow money from specialist funds or banks secured against a portfolio of their holdings — often at very high interest rates. It’s been a controversial way to avoid booking losses on asset sales while hoping for a better environment for making deals. READ MORE

4 Questions Startup Founders Should Ask In Meetings With VCs

As an investor working in corporate venture capital, I average about four introductory meetings a week with startups coming to me with fundraising pitches — and I’ve noticed that founders could be doing a lot more to optimize their time with VCs.

The greatest missed opportunity? They’re not leaving time for discussion. Or when they do, they expect me to be the one to ask all the questions. READ MORE

When private equity acquires firms expecting them to grow

What makes private equity firms target a publicly traded company for takeover?

A new study from the University of Iowa finds that private equity is often likely to target firms that more aggressively manage their earnings to meet analysts’ quarterly expectations.

Paul Hribar, professor of accounting in the Tippie College of Business, said this phenomenon is called earnings myopia because managers are overly focused on near-term earnings at the expense of long term growth and value creation. READ MORE