Before you sign off for the long holiday weekend, we share some news — ICYMI.
Here’s our weekly pick of news items impacting the innovation ecosystem:
Pitchbook ranks the 20 most impactful VC teams
This week, Pitchbook launched a VC list, while it ranks performance like the Forbes Midas List, this “power list” ranks the impact that firms (teams), rather than individuals, have on their investments. This ranking takes into account exit ratio, follow-on success, and valuation step-up.
The takeaway: At Tenor, we continue to see the value a FIRM brings to each investment. While the lead investor is key, in this asset class, the sum is greater than its parts!
This week, CB Insights held their second annual “Future of Fintech” event in NYC. It attracted a wide-ranging audience innovating in the fintech space — from investors, to entrepreneurs to corporates all discussing how innovation is driving change in the financial services sector. Dominic Chu of CNBC sat down with Mike Novogratz, a former hedge fund manager at Fortress Investment Group and now a private investor in cryptocurrencies, to understand if blockchain and bitcoin are here to stay.
The takeaway: At Tenor, we work with several investment firms that watch blockchain and bitcoin innovation very closely. Most agree and the data shows, it is here to stay, but a bit early to make big bets.
The Unicorn Asset Class
As reported in Quartz, the number and value of late-stage private tech companies (mostly considered unicorns) has increased in recent years, establishing a new asset class. Data provided by Scenic Advisement shows there are now 471 such companies, up from 171 in 2014, with a total value of $490 billion.
The takeaway: Two dynamics created this unicorn asset class: tech companies are becoming part of our daily lives and the ability for these companies to continue to raise money is strong, putting off the need to go public. We don’t see either of these factors changing anytime soon.
Enjoy the 4th!