#12/2020

“Stocks take the staircase up and elevator down.”
• proverb

Deals

Smart Addressing Platform UNL Secures $2m in Early Stage Funding (asiatechdaily.com)
  • Adding a programmable layer to real-life locations, UNL is building the Internet of Places, serving as an infrastructure for the location-based service economy. Making any location a point of sale, delivery, and payment.
  • The Internet of Places is a trusted network where real-life locations are coupled with their smart UNL digital doppelgangers to power next-generation hyper-local experiences, applications, and micro-services on top of the UNL infrastructure.

News

Straight talk on VC fundraising today - Angular Ventures is “open for business” but what does that really mean in the age of Coronavirus? (medium.com)
  • Few growth stage bankers started reaching out to me (at Angular, a very early-stage fund) to see if we want to join $10M rounds. That means they are running out of options and making totally irrational calls.
  • Paused, lying, or stupid. While the web is still full of statements to this effect, any VC saying they are “open for business” or “business as usual” is lying or stupid. 
  • Is Angular Ventures considering new investments? The answer is “yes, but effectively no.” Angular is still considering new investments. We are actually in the process of evaluating a specific (and very special) opportunity this week, but our stratospherically high bar is now astronomically high.
  • Presto: We are open for business :) and I believe most VCs in CEE will get hurt much less than western counterparts. I believe in CEE it will mostly have impact on valuations and larger later rounds that need to be raised from bigger western VCs.
  • Historically VC deal value dropped 28% during the 2008-2009 recession in the US, but deal count fell just 5%—and it rose for angel & seed deals, suggesting that, while deals may be smaller, startups can still find investors. 

Lime’s Valuation May Fall 80% in Emergency Fundraising - paywall (theinformation.com)
  • Lime, which has shut down its scooter-rental operations in all but one market, has between $50 million and $70 million of cash left. Valuation down from $2.4 billion to $400 million.
  • It is also considering laying off up to 70% of employees which is significantly more than competitor Bird that laid off 30% of workforce. While Lime has few months runway, Birds runway should last until 2021.
  • Opinion: This highlights the danger of late fundraising. If a startup has short runway there might come an unexpected event and they do not have enough cash to react to it and have to undertake drastic measures.

Reading

The Price of Discipline (perell.com)
  • My grade school teachers said the tough standards would prepare me for high school, my high school teachers said the tough standards would prepare me for college, and my college teachers said the tough standards would prepare me for the professional world. But it was a lie.
  • In the will to succeed, we subject ourselves to toxic and health-destroying work environments. Instead of questioning our habits, we counterbalance the pain of work with a ritual of reckless bar crawls. Instead of conforming the system to human nature, we conform human nature to the system. 
  • If we want to raise healthy, high-agency children, we should give them the freedom to make decisions without removing them from the consequences of those decisions. Giving children agency now will help them avoid a dark cycle of work, pain, and reckless release in the future.



Graph: US weekly Initial Jobless Claims





In case you are interested in helping us with evaluating some companies and industries or you just want to discus any of these articles, feel free to reach out to Roman from Presto Ventures at roman@prestoventures.com or Linkedin.

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