Round of the Week – Aquantia

To quote our favorite YouTube video “Series F. Where’s my IPO, Series G: Gettin Low”, whenever we see a later round investment we are always intrigued as to what the status of the company (and cap table) is.  In that light, we have given semiconductor company Aquantia and their $16M G round the honor of Round of the Week.

Name: Aquantia

Website: http://www.aquantia.com/

Funding to Date: $154M (too many to list!)

Deal Notables: Even with strong headwinds of VC’s movement away from semiconductor investments, Aquantia has raised yet another round and is apparently on an IPO path. Thankfully, they own about 70% of the market and are expecting phenomenal growth with  “large revenue opportunities”. So if anyone has the chops to go public amid all the chaos, they seem to fit the bill.  We just hope the founding members have some equity remaining to compensate them for their hard work all these years…

Enterprise Security: So Hot Right Now!

IT Security = Hansel?  We think so!

hansel

With the recent onslaught of Enterprise Security investments (25 in February alone!), we decided to turn to our friends at Crunchbase to see just how hot this market really was.  Let’s just say, the numbers did not disappoint. Below are the key takeaways from the study:

fund8

Rising Round Size:   Average round sizes are up almost 50% since this time last year which we hope translates into companies receiving higher valuations (and not higher founder dilution…).

The Rich Get Richer:  Follow on funding rounds have been increasing in both size and quantity in the past year. This bodes well for the industry because it means more firms are putting good use to earlier rounds and leveraging that success into future investment.

If You Can’t Beat Them, Buy Them:  There have been 10 acquisitions this year alone so there seems to be a theme of consolidation at work (Looking at you Bit9…).

Finally, we couldn’t write an entire piece about Enterprise Security and NOT mention the darling of 2013; FireEye. After their successful IPO last fall and recent purchase of Mandiant (bonus points for it being a majority stock deal and limiting the cash impact!), they have clearly revealed their plans on how to take share in this market.  Now if only they would do the same for profitability

Monday Morning Memo

Welcome back dear readers. Today we roll out the first of our Weekly installments (Monday Morning Memo) and in it we give a bit of an overview of what to expect as this site revs up for primetime!

New Layout – Look around the site?  You may notice a different layout of things and we have added some pretty cool blog links of VC’s we like and you should too!  (Seriously, they are awesome)

New Features – We will begin to post content at regular intervals in addition to the blog postings and other musings we may add.  Here’s a snapshot of some things to come:

  • Monday Morning Memo – Who says Monday mornings have to suck? We certainly don’t!  Much like the Monday partner meetings our VC brethren hold each week, we will be posting a weekly update of last week’s events and anything upcoming in the week ahead.
  • Round of the Week – Unfortunately we will not be buying our readers a beer each week, BUT we will be selecting a new funding each week and doing a write-up on the company, backers, round size, and other cool aspects of the deal.  2nd best option to beers?  We think so too…
  • Book Reviews – The beauty of driving to work 40 minutes each way leads to a lot of time for audio books (Sorry Ke$ha, there are only so many times one can listen to Timber in the same day and stay sane…).  Book reviews will be on various topics from Lean Startup Methods to Twitter to Term Sheet Nuances.
  • Weekly VC Spotlight – Each week we will be featuring a VC on the site with background about their career path, Fund, current investments, notable exits, etc.  Initially it will just be all general information, but the goal would hopefully be able to get some Q&A with them as well. To future spotlight members, we will most likely contact you via Twitter (we promise we are not spam, we just have wayyyy too much interest in your world)
  • Valuation Attempts – Periodically, we will feature some valuation techniques and apply them to recent rounds.  This will mostly be a way to put on our “VC hat” and take all available characteristics of a deal and try to piece together what the terms/cap table impact would be. Given that we are not privy to the deals themselves they may not be too accurate, but they will at least be fun to do!

We are always looking for cool new content to feature or other fun ideas so this list is by no means exhaustive and is subject to change.  If you have an idea, let us know!  You can use the Contact Us page or send us your thoughts via the twitter machine.

Any feedback whether positive or negative is greatly appreciated as we work to build out this site. Seriously, we are adults and won’t get upset if you tell us we are bad at writing (we probably are…) or that our valuation methodology is about as realistic as every company with funding becoming a unicorn (Wait, 40% on an A round with 2 board seats and 3x liquidation preference aren’t standard terms?)