The Birth of an Asset Class

Amid all the hand wringing about a tech bubble, a new reality is hiding in plain sight: Late-stage, venture-backed companies have become their own asset class.

This new asset class – Private Tech Growth, as we refer to it – is comprised of high-growth private technology companies. These firms have completely transformed the venture ecosystem that has evolved over the past 40 years. They have shifted the center of gravity to those companies with $1 billion or more in combined market capitalization.

read more on PEHub: https://www.pehub.com/vc-journal/the-birth-of-an-asset-class/

 

White Paper: “Investing in Private Growth Companies – Historical Return Analysis and Asset Allocation Strategies”

Exibit 1Data over the past four-and-a-half years shows that an investment in private growth companies can potentially help investors achieve growth with little correlation to the broader markets.

This white paper available at SharesPost examines:

  • Investing in private growth companies – an alternative with the potential for higher returns
  • The risk and return profile of private growth companies
  • Adding private growth companies to a portfolio and broader allocation strategies with this asset class

Download white paper

CCTV expert interview on Alibaba’s IPO

I was very happy to participate in yet another interview, this time on CCTV World Insight last Sunday after Alibaba went IPO. Check out and enjoy the recording (best fast forward to minute 41).

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Alibaba IPO priced – BNN interview with Sven Weber

Just shortly before Alibaba priced its IPO today BNN interviewed me on the company. Enjoy watching the recording.
In summary: opportunities for Alibaba are ownership structure and market, potential concerns are ownership structure and market – and of course: can the public market swallow a mega IPO like this?

Valuations Keep Climbing: 2H14 Global VC Valuations and Trends from PitchBook

Valuations in the VC industry spark much discussion nowadays, as record numbers of startups collect funds at exceedingly high markups. The much-discussed topic requires context, however, and that’s where PitchBook’s Global VC Valuations & Trends 2H 2014 Report comes in, dissecting over 10,000 valuations across the spectrum of the VC cycle. In addition, valuation trends and percentage changes between rounds are broken down, as well as their relation to exits. We also took a look at the relationship between VC valuations and the value of the NASDAQ index. Unsurprisingly, the public and private markets largely mirror each other, even at the early stages.

Highlights from this report include:

• Record number of VC-backed companies at $1 billion+ valuations

• Median Series B valuation jumps to $41 million

• 66% of VC financings were “up rounds” in 2Q 2014, the second highest percentage since the financial crisis

To download the report, click here.

Venture Investors See Wave Of Tech Cash Coming From The East

TechCrunch

Not to overstate the obvious, but the Alibaba IPO is going to be huge.

The $155 billion public offering would make Alibaba one of the largest in U.S. history, but it has repercussions that extend far beyond its impact on the U.S. Stock Market.

Investors like GGV Capital and DCM, which have commitments in both the U.S. and China, see the Alibaba shift as a wake up call for U.S. technology companies. “The Alibaba IPO represents a tectonic shift in the new world order,” says DCM Capital’s David Chao. “We have two companies from China that are now worth more than $100 billion.”

Alibaba’s growth, and dominance of the Chinese market mean that while today its focus has been primarily the Chinese market, the company’s soon-to-be $60 billion war chest all but assures that tomorrow will see the company tackle rest of the world.

The numbers for e-commerce in…

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In Wired: Defining the New Mobile — Moving Beyond the Device

Enterprise mobility has been a long sought after goal, and to date has seen success with wireless email and specialized vertical applications. For the average user though, email and web browsing defines their mobile experience. Enterprises have been holding back on mobilizing more of their apps based on a number of reasons: user experience, cost, security — to name a few. But as more companies deploy Mobile Device Management (MDM) and now Enterprise Mobility Management (EMM) as part of their mobility architecture, this will drive the adoption of enterprise mobility beyond the initial stages that most organizations are today. FULL ARTICLE IN WIRED

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