🕶️ The bold moves of NYC's young investors

Six bullets of updates

1. 🗽 Young NYC investors are bullish on women's health, AI social rehab, and solopreneur tools. 41% of US deals are AI.

2. 🌉 According to data, it’s better to run a startup in San Francisco in 2024, say founders who’ve relocated.

3. 🧬 From transforming clinical trials to rewriting genetic codes, investors share 13 techbio companies they’re watching. 

4. 👮 Telegram founder Pavel Durov was reportedly arrested in France after arriving at Le Bourget airport.

5. 👨‍🍳 The VC nabbing prime SF property plans a "Y Combinator for restaurants" leveraging $100M in investments.

6. 👗 Lithuanian startup Tingit launched a zero-effort fashion repair marketplace and has completed 650 repairs.

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Some VCs are willing to overpay to snag a slice of the AI pie

VCs are increasingly turning to the secondary market to buy shares of late-stage startups, particularly AI companies, as they seek stakes in the most promising ventures. A growing trend within this market involves the use of special purpose vehicles (SPVs), which allow VCs to sell access to their shares at premium prices. While this strategy can be lucrative for the sellers, it poses higher risks for buyers, who purchase shares in the SPV rather than direct equity in the startup. This setup limits their access to company information, voting rights, and other investor privileges, making the investment riskier, especially when SPVs are sold at marked-up prices.

The rising popularity of SPVs in the AI sector is fueling concerns of an emerging bubble. As SPV shares are sometimes sold at prices 30% higher than their original valuation, smaller VC firms see this as a chance to gain exposure to high-potential companies. However, the lack of direct ownership means that investors in SPVs are betting on the startup's success without the same level of influence or insight as direct shareholders. This trend reflects the speculative nature of current AI investments, where lofty valuations and limited revenue generation heighten the risks for those buying into these secondary market vehicles.

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Startup Events and Deadlines

1. How to close a Funding Round (it’s not just the pitch deck) | August 28, tomorrow! | Webinar

2. Startupbootcamp | AIvolution II | August 31 | Amsterdam

3. How to close a Funding Round (it’s not just the pitch deck) | September 4 | Webinar

4. Product-Led Summit | September 4 | Conference

5. Crash Course in Financial Modeling | September 11 | Webinar

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These companies just raised money

1. 📚 Story raises $83M at a $2.25B valuation to build a blockchain for content IP in the AI age.

2. 🪖 Defcon AI raises $44M in seed funding to tackle military logistics problems, aiming for operational transformations.

3. 🌪️ Life Sciences investor BEVC aims to raise $25M for a new climate-focused fund, shifting focus to sustainability.

4. 🖇️ The Rounds secured $24 million in Series B funding to scale its sustainable supply chain platform.

5. 🌚 Starpath secured $12M in seed funding to accelerate moon water mining and aim for significant lunar resource extraction.

6. 🛣️ SleekFlow secures $7M to enhance its omnichannel platform and expand its AI capabilities.

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Top 12 tech take-private PE deals of the year

Private equity firms are increasingly active in acquiring public tech companies, with notable deals in 2024, including EQT's stake in Acronis ($4B), Permira's Squarespace acquisition ($6.9B), and Advent International’s purchase of Nuvei ($6.3B). 

Deals like Blackstone’s $13B acquisition of Adevinta and Bain Capital’s $5.6B for PowerSchool underscore the trend. This move signifies a shift towards take-private transactions as a liquidity strategy for tech firms, especially those experiencing market volatility. The growing number of such deals highlights the appeal of private equity as a strategic exit route, offering stability and potential growth opportunities for underperforming yet promising tech companies.

For founders, exits to PE can offer liquidity and strategic synergies but also come with performance pressure. Read about the top 12 acquisitions.

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John McAfee: the criminal that lives in your computer

If there is an enigmatic figure in the world of technology, it is John McAfee. The British-American programmer and entrepreneur left us with a famous antivirus and a long history of wild anecdotes. In this video, we review his brilliance and controversies to remember and try to understand him nearly three years after his passing 😎 Subscribe here!