It’s not quite business as usual in the world of business, but in tech, there is still a significant amount of money being raised and invested, both to help sustain the most promising startups, and to help find those emerging despite( or because of) the wider economic and social emergencies arising from the coronavirus pandemic. Today, one of the greatest words in VC, Index Ventures, announced that it has closed another$ 2 billion in funds -$ 1.2 billion that it plans to use for swelling rounds( bigger, later theatre assets) and $800 million that it will put into emerging startups( smaller, earlier rounds, likely for younger corporations ).
At a day when it’s getting very tough for startups — which frequently make not for immediate profit but swelling, with big capital mixtures to sustain themselves — Indicator will have its work cut out for it. To date, 70% of its initial financings are at Series A or earlier. Whether that will be a proportion it deters remains to be seen.
The total amount is larger than Index’s last-place fund, dating from July 2018, which totalled $1.65 billion ($ 1 billion proliferation, $650,000 emerging ), but it’s not clear if this was what the firm had intended to raise, or less or more. For some context, another massive VC firm, Insight Partners, last week announced a monster $9.5 billion round, which outdid the company’s original target of just over$ 7 billion.
Like Insight, the focus for Index will be both to fund existing portfolio firms as well as seek out those diamonds in the rough that are being built now, a spokesperson is proving to us.
Despite all the social distancing and stiffening of purse strings due to unemployment and other indicators of economic struggle, there are still pockets of opportunity developing around provinces like give business, medical and healthcare technology, and of course anything that helps us live our lives in a more efficient and hopefully diversionary way online( which can come in the form of entertainment, but too better services for doing practical and necessary things, like supermarket or have a work videoconference without websites falling over or coming hacked ).
” Innovation is often endure out of calamity ,” said Jan Hammer, Partner at Index Ventures, in the following statement.” The road to building a great company is not a straight line, with many obstacles and forks along the way. We make the long view and remain committed to investing in ambitious entrepreneurs at this unprecedented time.”
Yes, it is easy for a VC — who I’m guessing is probably not concerned about his income or state in the same way that a front-line healthcare worker or grocery check-out party are likely to be — to wax lyrical about opening right now, but that doesn’t mean it’s not something that should be ignored. In fact, I’d argue that finding ways out of this is just as important as us all get through it in one piece.
Index has remained one of the very active investors in the last various weeks, as a key backer in some of the most important spates announced for Notion, Fast, Collibra and Safety Culture,” with more to follow ,” the spokesperson said.
Other big startups in its stable once( scale-ups might be a more apt term) include Deliveroo, Glossier, Confluent, Figma, Revolut and Roblox. IPOs from its portfolio over the last couple of years meanwhile have included Slack, Adyen and Datadog.
“We believe that financiers hold the keys to the world’s recovery, and we couldn’t support them without the backing of our investors, our limited partners ,” said partner Mike Volpi in the following statement.” Many of them ought to have with us for two decades, and we’re extremely thankful for their continued commitment in times like these. The success of our industrialists in turn helps to fund the research groups, universities, medical institutes and the pension funds our limited partners represent, and we couldn’t be more proud to have them as part of the Index Family.”
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