The Daily Start-Up: New York’s RRE Ventures Markets New FundThe Wall Street Journal Jul 28, 2011 Back to press
Top stories in today’s VentureWire:
Amid New York City’s venture-capital resurgence, local firm RRE Ventures is aiming to raise as much as $300 million for its fifth technology fund, VentureWire has learned. That would be the same amount it closed on in 2007 with its latest fund. This week VentureWire also reported on the fund-raising of another New York firm, Milestone Venture Partners. To help you keep track of all the city’s firms, we compiled this map of the city’s expanding VC population.
With more than a billion people using social networks, large companies are looking for ways to use social media to increase sales and brand awareness. Enter newly funded Hearsay Social Inc., one of several start-ups looking to help companies gain control over their employees’ social-media activities. Its online platform enables companies to encourage local representatives to build customer relationships while complying with corporate guidelines.
Also in today’s VentureWire: LED maker BridgeLux Inc. closed on $60 million toward a Series E round that could go as high as $80 million…Totango Inc. has emerged into public beta with $3.8 million in funding to analyze how customers use software offered as a service…and Benchmark Capital and DAG Ventures merged pictorial messaging start-up Zlango with publicly traded Vringo Inc., a mobile applications company that last year managed to hold a pint-sized public offering with virtually no revenue.
(VentureWire is a daily newsletter with comprehensive analysis of all the investments, deals and personnel moves involving start-ups and their venture backers. For a two-week trial, click here.)
Elsewhere around the Web:
Groupon’s bumpy ride to an IPO continues. The Securities and Exchange Commission is asking Groupon to explain the unusual accounting metric it invented called “adjusted consolidated segment operating income.” That mouthful has drawn lot of eye-rolling from critics who contend this accounting trick harkens back to the dot-com days.
Another report surfaces about Twitter’s new fund-raising, this one from VCExperts which uncovers a regulatory filing showing the company is raising $400 million. All Things D’s Kara Swisher reported last week that Twitter is shooting for $800 million, of which half would go to buy out shares of early investors and employees. The valuation is said to be $8 billion.
The golden rule of venture capital: Many VCs are…well, we’ll just point you to Seth Levine’s blog for the word he uses to describe some venture capitalists. Let’s just say it rhymes with grass hole.
Your business may be a failure, but you’re not. So says First Round Capital’s Phin Barnes, who offers a little bit of self-motivation for the entrepreneur whose start-up failed. “We should treat the experience of a blow-up as a badge of honor,” Barnes writes. “The scars of a failed company deserve deep respect and affirmative action from investors and start-ups starved for talent.”