Resonant portfolio company Duo Security has raised $5 million in a Series A round led by Google Ventures for technology that uses cell phones to help protect log-in and password information. Earlier seed backers True Ventures and Resonant Venture Partners also took part in the round. Read the full press coverage below:
Over the past 4 years only 6% of all venture capital has been deployed in financing rounds between $1-4M, with 70% of the financings going to only three states – California, Massachusetts and New York. The Innovation Fund will target this gap, providing a 1:1 match to private capital raised by early stage seed funds. Click here to read the full White House Press Release.
The House of Representatives passed a bill that will allow startups to raise money via crowdfunding sites such as Kickstarter. Dirty cap tables – here we come! We’ll see if the Senate and President share the House’s enthusiasm. In the mean time, you can read the details and full bill here.
Accel Partners just announced that they will be dedicating $100M of their existing capital towards the theme of Big Data. IDC reports big data will drive $22 billion in cloud storage and spending alone by 2015. Accel also believes much of the innovation in this space will be driven by smaller firms. Many of the data points used in Accel’s decision to launch this initiative were considered when we were defining Resonant’s industry focus. Read more here.
TechCrunch posted an article talking about the “Barbell” situation in the VC space. Unsurprisingly, it got my attention. It refers to the large amount of angel and late stage VC capital available, combined with a small amount of Series A capital. The article has some quality stats and reiterates that this is a perfect time to launch a small early stage fund. I would have to think Resonant agrees with this conclusion. Read the full article here
The number of semiconductor companies spawned with VC funding has been steadily declining for nearly a decade. In 2003, VCs gave life to 63 new chip companies. Last year the number was 13. It’s a trend that promises to reshape the semiconductor industry. I can’t say I didn’t see that trend happening during my time at Intel, but it still stings. Makes you think what the industry would have looked like if Intel didn’t receive VC funding and what other promising companies won’t get funded in this environment. Read the full article here
Tom Henderson from Crain’s wrote an article regarding Mary Sue Coleman’s announcement that the University of Michigan Endowment will finally be investing in its own startups. Resonant and Arboretum were profiled as two local firms which make seed stage investments and would be able to benefit from a university co-investment.
Resonant was in attendance for Steve Blank’s talk at the Ann Arbor New Tech Meetup at the Ross School of Business yesterday. Steve’s presentation was well received by all the entrepreneurs that packed into Blau auditorium, but it was one of the answers he gave to an audience question that was the highlight of the night.
Steve was asked what three suggestions he would give to Rick Snyder to encourage entrepreneurial businesses in MI. Steve responded that there was only ONE thing that Michigan needs – to increase the density of venture capital here and in a variety of areas. He said we have some good biotech stuff, but we need to kick it up by a factor of 5 or 10 in the IT space.
See his full answer to the Snyder question:
Better yet – check out his full presentation:
The small scale of Michigan’s venture capital community means many ground-floor opportunities for investment. Bay Area émigrés Michael Godwin and Jason Townsend of Resonant Venture Partners wax on the need for a new generation of VC investors and peek into the realm of “dirty tech”. Read the full article in this month’s edition of Concentrate here.