KPCB has already blown through much of the $600 million it raised last year

Kleiner Perkins, one of the most storied franchises in venture capital, has already invested much of the $600 million it raised last year and is now going back out to the market to raise its 19th fund, according to multiple sources.

The firm, which underwent a significant restructuring over the last two years, went on an investment tear over the course of 2019 as new partners went out to build up a new portfolio for the firm — almost of a whole cloth.

A spokesperson for KPCB declined to comment on the firm’s fundraising plans citing SEC regulations.

The quick turnaround for KPCB is indicative of a broader industry trend, which has investors pulling the trigger on term sheets for new startups in days rather than weeks.

Speaking onstage at the Upfront Summit, an event at the Rose Bowl in Pasadena, Calif. organized by the Los Angeles-based venture firm Upfront Ventures as a showcase for technology and investment talent in Southern California, venture investor Josh Kopelman spoke to the heightened pace of dealmaking at his own firm.

The founder of First Round Ventures said that the average time from first contact with a startup to drawing up a term sheet has collapsed from 90 days in 2004 to 9 days today.

 

“This could also be due to changes in the competitive landscape … and there may be changes with First Round Capital itself,” says one investor. “It may have been once upon a time that they were looking at really early raw stuff… But, today, First Round is not really in the first round anymore. Companies are raising some angel money or Y Combinator money.”

At KPCB, the once-troubled firm has been buoyed by recent exits in companies like Beyond Meat, a deal spearheaded by the firm’s former partner Amol Deshpande (who now serves as the chief executive of Farmers Business Network) and Slack.

And its new partners are clearly angling to make names for themselves.

“KP used to be a small team doing hands-on company building. We’re moving away from being this institution with multiple products and really just focusing on early-stage venture capital,” Kleiner Perkins  partner Ilya Fushman said when the firm announced its last fund.

Kleiner Perkins partner Ilya Fushman

“We went out to market to LPs. We got a lot of interest. We were significantly oversubscribed,” Fushman said of the firm’s raise at the time.

In some ways, it’s likely the kind of rejuvenation that John Doerr was hoping for when he approached Social + Capital’s Chamath Palihapitiya about “acquiring” that upstart firm back in 2015.

At the time, as Fortune reported, Palihapitiya and the other Social + Capital partners, Ted Maidenberg and Mamoon Hamid would have become partners in the venture firm under the terms of the proposed deal.

Instead, Social + Capital walked away, the firm eventually imploded and Hamid joined Kleiner Perkins two years later.

The new Kleiner Perkins is a much more streamlined operation. Gone are the sidecar and thematic funds that were a hallmark of earlier strategies and gone too are the superstars brought in by Mary Meeker to manage Kleiner Perkins’ growth equity investments. Meeker absconded with much of that late stage investment team to form Bond — and subsequently raised hundreds of millions of dollars herself.

Those strategies have been replaced by a clutch of young investors and seasoned Kleiner veterans including Ted Schlein who has long been an expert in enterprise software and security.

“Maybe at this point they think they can raise based on the whole story about Mamoon taking over and a few years from now they won’t be able to raise on that story and will have to raise on the results,” says one investor with knowledge of the industry. “Mamoon is a pretty legit, good investor. But the legacy of the firm is going to be tough to overcome.”

All of these changes are not necessarily sitting well with limited partners.

“LPs are not really happy about what’s going on,” says one investor with knowledge of the venture space. “Everybody thinks valuations are too high since 2011 and people are thinking there’s going to be a recession. LPs think funds are coming back to market too fast and they’re being greedy and there’s not enough vintage diversification but LPs … feel almost obligated that they have to do these things… Investing in Sequoia is like that saying that you don’t get fired for buying IBM .”

Plant-based milk substitute market gets frothy with $225 million for Califia Farms

The market for companies developing dairy substitutes is really getting frothy.

In December, the startup Perfect Day Foods announced it had raised $110 million in financing for its dairy replacement and now Califia Farms, the producer of a range of oat and almond milk products (along with a slew of coffees, juices, and non-dairy snacks) has raised $225 million in fresh financing.

Investors in the round include the Qatar Investment Authority, Singapore’s sovereign wealth fund, Temasek, Canada’ Claridge, and Hong Kong-based Green Monday Ventures (among others).

For Temasek, the deal comes on the heels of an incredibly successful investment in Beyond Meat, the plant-based meat substitute which has partnership agreements with food chains like Dunkin, McDonald’s, and Carl’s Jr. and whose meteoric rise in its public offering was one of the most successful of the IPOs of the last year.

Money from the new investor base, which joins previous investors Sun Pacific, Stripes and Ambrosia in backing the company, will be used to expand its oat-based suite of products and to launch other new product lines. The company said it will also use the money to increase its production capacity, research and development efforts, and geographical expansion.

Founded in 2010, Califia Farms is one of several startups that are making dairy replacements — either using plant-based ingredients or genetically modified organisms to produce the proteins and sugars that make dairy what it is.

Other companies like Perfect Day, Ripple Foods, Oatly have all raised capital to capture some aspect of the over $1 trillion dairy market.

“The more than $1 trillion global dairy and ready-to-drink coffee industry is ripe for continued disruption with individuals all over the world seeking to transform their health & wellness through the adoption of minimally processed and nutrient rich foods thatare better for both the planet and the animals,” said Greg Steltenpohl, Califia founder and chief executive, in a statement.

Barclays served as the financial advisor and placement agent for Califia on the capital raise.

RaySecur, a mailroom security startup, raises $3M in seed funding

Raysecur says at least ten times a day someone sends a suspicious package containing powder, liquid, or some other kind of hazard.

The Boston, Mass.-based startup says its desktop-sized 3D real-time scanning technology, dubbed MailSecur, can intercept and detect threats in the mailroom before they ever make it onto the office floor.

Mailroom security may not seem fancy or interesting, but they’re a common gateway into a corporate environment. They’re a huge attack vector for attackers — both physical and cyber. Earlier this year we wrote about warshipping, a “Trojan horse”-type attack that can be used as a way for hackers to ship hardware exploits into a business, break the Wi-Fi, and pivot onto the corporate network to steal data.

Now, the company has raised $3 million in seed-round funding led by One Way Ventures, with participation from Junson Capital, Launchpad Venture Group, and also Dreamit Ventures, a Philadelphia-based early stage investor and accelerator, which last year announced it would move into the early-stage security space.

Raysecur’s proprietary millimeter-wave scanner, MailSecur. (Image: supplied)

Raysecur uses millimeter-wave technology — similar to the scanners you find at airport security — to examine suspicious letters, flat envelopes, and small parcels. Its technology can detect powders as small as 2% of a teaspoon or a single drop of liquid, the company claims.

The startup said the funding will help expand its customer base. Although still in its infancy, the company has about ten Fortune 500 customers using its MailSecur scanner.

Since it was founded in 2018, the company has scanned more than 9.2 million packages.

Semyon Dukach, managing partner at One Way Ventures, said the funding will help “bring this compelling technology to an even broader market.”

Know your startup’s value so you can communicate it to investors

I’ve always told companies that investors have a much easier job than they do. To be good at their jobs, investors have to know how to do math and make decisions. As a business owner, you have to do both while also running your business.

The math piece can seem cumbersome, but it’s vital for understanding whether your company is creating or destroying value. A few simple metrics can demonstrate to investors the health and viability of your company, and they can show you which levers to pull that will best optimize your company for investor interest (and secure a higher price). But before you can ever hope to communicate your business’ value to an investor, you must understand it yourself.

The numbers are simple; it’s the calculations that are complex

Investment math itself is not complicated. In essence, it’s just about understanding whether your company is creating or destroying value by asking:

  • Where is your company investing its financial resourcesMost growing companies invest heavily in sales and marketing or research and development.
  • What is the return on this investment?  For example, how much gross profit (revenue x gross margin percentage) does a given sales and marketing investment produce?
  • How does that number compare to your cost of capital? If it’s higher, your company is creating value. If it’s lower, you’re destroying it.

Investors use this information to determine if their return would be higher than their expectation (e.g., 15% hurdle rate), should you continue down your current path of creating or destroying value. Then, they make their decision based on that calculation.

A caveat I’ll add here is that it’s not necessarily a deal-breaker if your company is declining in value. Oil rigs, after all, are considered investment assets, even though they are perpetually declining and will eventually run out (i.e., destroy all of their value). Although this article focuses on calculations that demonstrate value creation, all investment assets can be financed at the right price.

A deep dive into calculating value

One of the best metrics you can use to demonstrate value creation is your cohort-level return on investment. It’s a calculation most investors are familiar with, but it may not be as straightforward to companies who don’t see it as often. Again, while the metrics and concepts of investment math are simple, it’s the process of getting there that requires complex analysis.

Whether you are evaluating these metrics yourself or bringing in outside counsel to assist you, use the process below to show investors you are creating value.

Determine which information to analyze

The first step in calculating value is to understand which information from your income and cash flow statements to analyze as “investments.”

Start by dividing your capital allocation into three main buckets: short-term investments, long-term investments and expenses. In general, short-term investments will be the ones you want to focus on, but it’s helpful to walk through each.

  • Short-term investments (pay back within 24 months)

PrimaryBid closes $8.6M round for its platform aimed to help retail investors

PrimaryBid, a UK-regulated platform connecting publicly listed companies with everyday investors for discounted share issuances has previously raised $3M. It’s now upped those stakes with an $8.6M funding round, led by UK VCs Pentech and Outward VC with participation from new and existing investors. Craig Anderson, a partner at Pentech, will join the PrimaryBidBoard of Directors with Outward VC having a Board Observer seat.

This investment is representative of the trend towards unpacking complex financial investment products for the average person, especially in the UK.

The FCA-regulated platform recently made a long-term commercial agreement with Euronext, the leading pan-European exchange in the Eurozone. The partnership gives the company access to nine new geographies, with the first new site launching in France later this year.

Commenting, Anand Sambasivan, co-founder and CEO of PrimaryBid, said: “Everyday investors are a vital part of the stock market and yet unable to buy discounted share deals – a longstanding imbalance in the public markets. This is true whether it is a government selling down its holding in a large company or a quoted company is raising growth capital. Our platform addresses this challenge, giving small investors the same access as traditionally afforded to large institutional investors.”

Investors can tap into PrimaryBid’s centralizing infrastructure that allows access to everyday investors as part of a share issuance, including block sales. The inclusion of retail investors can improve pricing and liquidity outcomes for their clients. The company’s solution allows private investors to participate, at the same time and the same price, delivering open access regardless of the size of their investment. The service is free of charge for investors, from £100 upwards.

PrimaryBid doesn’t have competitors because Retail investors have not previously had access to discounted equity offerings run by investment banks. This is because the retail investment market is too fragmented, and these deals are highly time-sensitive. As a result, only clients of Investment Banks (i.e. institutional investors) could previously access these attractive deals.

So now, listed companies that want to raise more capital on the stock exchange by issuing new shares can now connect with retail investors and offer these retail investors these shares at the same discounted rates as those offered to institutional investors. “In the past, these retail investors just couldn’t access these attractive deals for these new shares,” explains Sambasivan.

Craig Anderson of Pentech said: “We believe equity capital markets infrastructure is dominated by an institutional focus and is not geared for retail investors, which unfairly restricts consumer access to the primary equity markets. PrimaryBid addresses this problem by using technology to democratize the equity capital markets to provide a new asset class to retail investors.”

Kevin Chong of Outward VC said: “By bringing publicly listed companies directly to ordinary investors, PrimaryBid addresses increasing frustrations felt by equity issuers and potentially expands global equity markets to the benefit of all players – investors, issuers and investment bank advisers.”

Pentech previously invested in Nutmeg (which recently closed a £45m funding round led by Goldman Sachs) . Outward VC has previously backed Monese, Curve and Bud.

Instacart CFO Ravi Gupta to exit for Sequoia Capital

Instacart‘s chief financial officer and chief operating officer, Ravi Gupta, will exit the on-demand grocery delivery company at the end of the year to “return to his investing roots,” the company told TechCrunch this morning. The executive will join Sequoia Capital as a partner on the growth team beginning in January.

The company’s vice president of finance and strategy, Sagar Sanghvi, has been promoted to CFO, a critical role as the company gears up for an initial public offering as soon as next year. Instacart is actively searching for a COO replacement.

Valued at nearly $8 billion, Instacart has raised a total of $1.9 billion in venture capital funding since it was founded in 2012. Co-founder and CEO Apoorva Mehta has remained mum on any details surrounding the company’s IPO plans, telling TechCrunch last fall that a float “will be on the horizon.”

Sagar Sanghvi CFO Instacart

Instacart’s vice president of finance and strategy, Sagar Sanghvi, has been promoted to CFO.

After a decade at the investment firm KKR, Gupta joined Instacart in 2015 to manage both the company’s finances and operations as its first CFO and COO. He’s worked closely with Sequoia for some time; the firm first invested in Instacart prior to Gupta’s hiring, leading an $8.5 million Series A financing in 2013. Sequoia’s outspoken partner Michael Moritz sits on the company’s board of directors.

Roelof Botha, another Sequoia partner, says the venture capital firm helped San Francisco-based Instacart recruit Gupta to the C-suite years ago: “With Ravi now returning to his passion of investing, he can help other visionaries – like Apoorva – turn their dreams into reality,” Botha said in an emailed statement. “Ravi’s operational and investing experience, along with his strong work ethic and humility, will make him an invaluable partner to founders and our team.”

When Gupta joined Instacart to oversee finance, corporate development and strategic business initiatives in what was a newly created role, the business, a newly minted “unicorn,” had only 300 employees. Today, Instacart has roughly 1,000 full-time employees and another 100,000 “shoppers,” or contract workers who fulfill the online grocery orders.

“In 2015, I met Apoorva and he shared his vision for Instacart with me,” Gupta said in an emailed statement. “I was truly inspired and knew this was a team I wanted to join and a company I wanted to help build.”

Following his departure, Gupta will continue to advise Instacart on a variety of matters, the company said.

Instacart is announcing another two high-level hires this morning. Jakii Chu has joined the company as its chief marketing officer after nearly five years at sports merchandising business Fanatics, where she was senior vice president of e-commerce.

Chris Rogers, the former managing director of Apple Canada, has been hired as its vice president of retail. Rogers will be based in Instacart’s Toronto office, which Instacart opened earlier this year, reporting to chief business officer Nilam Ganenthiran.

Instacart delivers groceries to 5,500 cities across the U.S. and Canada, making deliveries from some 20,000 stores. Earlier this year, Instacart began its expansion into alcohol delivery. The service is now available in 20 states.

A graduate of Y Combinator, Instacart is also backed by D1 Capital Partners, Coatue Management, Thrive Capital, Canaan Partners, Andreessen Horowitz and several others.

Y Combinator-backed Trella brings transparency to Egypt’s trucking and shipping industry

Y Combinator has become one of the key ways that startups from emerging markets get the attention of American investors. And arguably no clutch of companies has benefitted more from Y Combinator’s attention than startups from emerging markets tackling the the logistics market.

On the heels of the success the accelerator had seen with Flexport, which is now valued at over $1 billion — and the investment in the billion-dollar Latin American on-demand delivery company, Rappi, several startups from the Northern and Southern Africa, Latin America, and Southeast Asia have gone through the program to get in front of Silicon Valley’s venture capital firms. These are companies like Kobo360, NowPorts, and, most recently, Trella.

The Egyptian company founded by Omar Hagrass, Mohammed el Garem, and Pierre Saad already has 20 shippers using its service and is monitoring and managing the shipment of 1,500 loads per month.

“The best way we would like to think of ourselves is that we would like to bring more transparency to the industry,” says Hagrass.

Like other logistics management services, Trella is trying to consolidate a fragmented industry around its app that provides price transparency and increases efficiency by giving carriers and shippers better price transparency and a way to see how cargo is moving around the country.

If the model sounds similar to what Kobo360 and Lori Systems are trying to do in Nigeria and Kenya, respectively, it’s because Hagrass knows the founders of both companies.

Technology ecosystems in these emerging markets are increasingly connected. For instance, Hagrass worked with Kobo360 founder Obi Ozor at Uber before launching Trella. And through Trella’s existing investors (the company has raised $600,000 in financing from Algebra Ventures) Hagrass was introduced to Josh Sandler the chief executive of Lori Systems.

The three executives often compare notes on their startups and the logistics industry in Northern and Southern Africa, Hagrass says.

While each company has unique challenges, they’re all trying to solve an incredibly difficult problem and one that has huge implications for the broader economies of the countries in which they operate.

For Hagrass, who participated in the Tahrir Square protests, launching Trella was a way to provide help directly to everyday Egyptians without having to worry about the government.

“It’s three times more expensive to transport goods in Egypt than in the U.S.,” says Hagrass. “Through this platform I can do something good for the country.”

China startup deals shrink as fundraising for investors plummets

Chinese startups continue to weather tough times as private investors, caught in a cash crunch, are concentrating money into fewer deals.

China’s deal-making activity for startups in the six months ended June halved from a year ago to 1910, according to data from consulting firm ChinaVenture’s research arm. The amount invested in domestic startups during the first half of 2019 plummeted 54% to $23.2 billion.

The slide in startup investment comes as the money behind the money shrinks amid a cooling economy in China that is exacerbated by a trade war with the U.S. Fundraising for investors was already showing signs of slowdown a year earlier. In the first half of this year, private equity and venture capital firms in China secured 30% less than what they had raised over the same period a year ago, amounting to a total of $54.44 billion. 271 funds managed to raise, down 52%.

vc funding china

That money from limited partners is also flowing to a small rank of investors. 12 institutions accounted for 57% of all the capital landed by VCs and PEs in the period. Investment coffers that have gotten a big boost include the likes of TPG Capital, Warburg Pincus, DCG Capital, Legend Capital, and Source Code Capital.

Healthcare was the most backed sector during the six months, although proptech startups scored the biggest average deal size. Some of the highest funded companies from the period were artificial intelligence chip maker Horizon Robotics, shared housing upstart Danke and China’s Starbucks challenger Luckin.

Social Capital reincarnated

Nine months ago, the once high-flying venture capital fund Social Capital made the bold decision to stop accepting outside capital and operate as a family office, in essence.

The co-founder of the outfit, brazen billionaire and early Facebook executive Chamath Palihapitiya, pledged to upend his investment strategy and make fewer but much larger investments as a means to improve his returns. Naturally, a near-complete exodus of Social Capital’s venture capitalists followed.

Today, the firm’s three founders, Palihapitiya, Mamoon Hamid and Ted Maidenberg, have gone their separate ways. Palihapitiya is rewriting the Social Capital playbook, Hamid is busy reinvigorating Kleiner Perkins and Maidenberg is building on top of the data-driven strategy and proprietary software dubbed “Magic 8-Ball” he built at Social Capital, with a new firm called Tribe Capital.

Quietly, Tribe Capital’s co-founders, Maidenberg and former Social Capital partners Arjun Sethi and Jonathan Hsu, have deployed millions of dollars in Social Capital portfolio companies like Slack and Carta, hired several former Social Capital employees and flexed a data-first approach that looks pretty damn familiar.  

Data or bust

SAN FRANCISCO, CA – OCTOBER 19: Founder/CEO of Social Capital, Chamath Palihapitiya, speaks onstage during “The State of the Valley: Where’s the Juice?” (Photo by Michael Kovac/Getty Images for Vanity Fair)

Social Capital began laying the foundation for a data-driven approach to investing years ago. Now, Tribe Capital is doubling down.

From its founding in 2011, Social Capital established itself as a contrarian fund out to “fix capitalism.” Its strategy and reputation as an up-and-comer unafraid of new tricks earned it stakes in Slack, SurveyMonkey, Box, Bust and many other admirable upstarts.

As the firm matured, its partners experimented. In 2016, its early-stage investment team made the daring choice to rely on data rather than gut-feel alone to make its investment decisions, confronting a timeworn ideology that the best VCs have a special skill-set that enables them to spot future unicorns.

Using an operating system for early-stage investing dubbed “capital-as-a-service” and the growth and data analysis tool Magic 8-Ball — a sort of QuickBooks for startup data — Social Capital forwent the traditional pitch process and rapidly evaluated thousands of companies on the basis of metrics and achievements alone.

Palihapitiya, Maidenberg, Hamid and the other members of the partnership were on a mission to do venture the right way. Until they weren’t.

“I found us incrementally drifting away from our core mission, and our strategy was increasingly that of a traditional investment firm,” Palihapitiya wrote last year. “It became harder to take the risks we took in 2011 and it became easier to play the same game as every other VC.”

At its peak, Social Capital employed a team of 80. Once Palihapitiya confirmed his intent to transition the firm away from venture, the team began to shrink, fast. Today, the firm employs 30, including partners Ray Ko, Andy Artz and Jay Zaveri, as well as principal Alex Danco. One-third of that number were hired after the big pivot.

The Social Capital diaspora 

Social Capital co-founder Mamoon Hamid left the fund in 2017 for Kleiner Perkins.

Social Capital’s former investors have since identified their second acts.

In the last year, Sakya Duvvuru, a former partner, founded Nellore Capital Management, and Carl Anderson, another former partner, started Marcho Partners.

Tony Bates joined Genesys as its CEO, Mike Ghaffary accepted a general partner role at Canvas Ventures, Ashley Carroll is consulting full-time, Kristen Spohn says she is still exploring opportunities, Adam Nelson joined South Park Commons as a venture partner and Tejinder Gill joined Collaborative Fund as a principal.

Hamid, for his part, resolved to re-establish Kleiner Perkins’ once-stellar reputation.

“Kleiner Perkins was a firm that was in desperate need of a change of its own,” Hamid tells TechCrunch. “It was a unique opportunity and I was about to turn 40. I thought, there is one thing I wanted to do in my career that I hadn’t done before and that was to turn around one of the best venture firms of all time.”

Hamid’s August 2017 departure from Social Capital represented the beginning of the end of the partnership. Though Hamid, a co-founder and leading dealmaker, asserts turmoil at the firm began after his exit. 

Nine months after Hamid made the call to move on, Arjun Sethi, who once led Social Capital’s early-stage investment team, made the same call as did Maidenberg and Hsu. Simultaneously, growth equity chief Tony Bates and vice chairman Marc Mezvinsky were said to be departing.

The mass exodus continued, culminating in Palihapitiya’s final declaration: Social Capital was finished with venture capital.

‘Magic 8-Ball’ — reborn

Maidenberg, Sethi and Hsu built Tribe Capital in the image of Social Capital. With similar DNA, the three men are attempting to upgrade an early-stage investment strategy they not only created, but nearly perfected.

“Those guys did a very good job working for me,” Palihapitiya tells TechCrunch. “I’m super proud to see them launch their own venture fund. It was a really important, defining experience for me; I hope they have the same level of success, if not more.”

But where Social Capital was mission-driven, regularly backing healthcare and education businesses, Tribe Capital makes no such claim. And where Social Capital leaned on data to inform its investment thesis, Tribe is putting its full weight into it.

We are believers that it’s hard to do a lot of things well, so we wanted to focus on one thing we are good at: early-stage venture with the approach of recognizing early-stage product-market fit,” Hsu tells TechCrunch. “At Social Capital we did that, but we did 30 other things, too.”

In total, seven former Social Capital investors and employees are working on Tribe. Georgia Kinne, a former Social Capital executive assistant, leads operations. Two former Social Capital data scientists, Jake Ellowitz and Brendan Moore, joined Tribe in the same role. And Alexander Chee, Social Capital’s former head of product development, is on board as an entrepreneur-in-residence.

Tribe won’t say how much capital they have raised yet or how exactly their three funds are structured, aside from confirming that only one is operating as a traditional venture fund. Paperwork filed with the U.S. Securities and Exchange Commission in late April, however, confirms a $150 million target for the debut venture effort. 

It’s been a year since Tribe began investing. In that time, it’s put money in Slack, Front, Cover and SFox. Most recently, it participated in Carta’s $300 million Series E, which valued the business at $1.7 billion. All of these companies were previously backed by Social Capital.

Tribe is making deals of all shapes and sizes across industries, with a particular focus on enterprise, fintech and SaaS startups. In addition to deploying heftier sums to late-stage businesses like Slack, Tribe has made 10 seed bets of roughly $25,000 each, leveraging its data platform to make investment calls.

“The income statement and balance sheet are the lingua franca for an established company to communicate the financial health of its business,” Hsu writes. “These accounting concepts are often unhelpful when inspecting an unprofitable early-stage company. For a startup, what’s needed is a common quantitative language for what matters, namely, a quantitative framework for assessing product-market fit.”

Tribe’s quantitative framework is called Magic 8-Ball, a diligence tool for potential investments created by Maidenberg and Hsu during their Social Capital tenure. The tool measures product-market fit, growth trajectory and more of early-stage businesses, where, as Hsu mentions, financial data may be lacking.

“We use data like accountants; it’s not a magical AI machine,” Hsu said. “If other firms want to copy, by all means, they can try. We aren’t here to be antagonistic, we are here to be partners to founders and other investors.”

So far, Magic 8-Ball has poured through data provided by some 200 companies, with plans to hit 1,000 per year. In total, Tribe has deployed $100 million.

Tribe’s 8-Ball tool is said to be much more complex than the earlier model, according to a source with knowledge of the platform. It’s like when Yahoo engineers Jan Koum and Brian Acton left the search and email giant to build something even better, the source, who asked not to be named, said. That business became the messaging powerhouse WhatsApp.

Hamid, who’s not affiliated with Tribe but aware of their investment strategy, made a similar comparison.

“It’s like if you’re an engineer at Cisco working on WebEx,” Hamid tells TechCrunch. “You’re a great engineer but you can do better, you can [do your own] company. Guess what? That’s Zoom. That’s Eric Yuan . And Zoom is worth $20 billion and WebEx was worth $3 billion. That’s pretty. That’s the story of Silicon Valley. That’s creative disruption.”

Hamid, however, was careful to point out the differences between Social Capital and Tribe. The DNA may be similar but they aren’t identical.

Social Capital represented a new kind of venture firm in favor of creative disruption. Tribe Capital represents a second go, a sort of Social Capital 2.0 sans Chamath Palihapitiya.

Bogged down by the conflict surrounding its leader’s flair for controversy, Social Capital wasn’t set up to succeed. The Magic-8 Ball, on the other hand, may be just right.

“Why did we get back together instead of going elsewhere? That is a reasonable question,” Hsu said. “We had good job offers but we had a viewpoint of the world that we wanted to keep working on together.”

USV closes on $450M for new funds, adds two partners

Union Square Ventures, a venture capital firm known for early bets in Twitter, Etsy and Tumblr, has $450 million in capital commitments to plow into the next generation of technology startups.

The capital, which comes in just above the $429 million USV filed to raise earlier this year, is divided across two new funds: $200 million for its 2019 Core Fund and $250 million for the 2019 Opportunity Fund. The two funds are larger than their predecessors, which both closed on $175 million in 2016.

USV is expanding its partnership to manage the new funds. The firm announced today the hiring of Gillian Munson as a partner. Munson was most recently the chief financial officer at XO Media, a business responsible for several brands, including wedding planning site The Knot. Additionally, USV has promoted Nick Grossman, the firm’s former general manager of special projects, to partner. Grossman focuses on cryptonetworks and blockchain technology.

Founded in 2003 by Fred Wilson and Brad Burnham, USV has been careful in expanding its partnership. Munson and Grossman mark the seventh and eighth additions to its team of partners in its 15-year history. Most recently, Rebecca Kaden joined from Maveron to become USV’s first female partner.