The Week in Charts
Shriram Bhashyam | August 05, 2015
We've curated below a series of poignant charts from the last week.
(Source: the Daily Shot)
Fed Funds Futures, a measure of how Wall Street anticipates movements in interest rate policy set by the Federal Reserve Bank (the "Fed"), fell after Federal Reserve Bank of Atlanta President Dennis Lockhart made comments suggesting that the Fed is preparing to raise rates. Based on this pricing, the Street thinks there's a 50% chance of a rate hike at the September Fed meeting. An increase in the Federal Funds Rate by the Fed would lead to a rise in rates generally. This could make fundraising for startups more difficult, as rates of return elsewhere start looking more attractive and borrowing money becomes more expensive.
We see visually what we've come to know anecdotally from TechCrunch headlines: funding rounds have grown considerably. In fact, median funding round sizes are up 39% YoY as of July, according to Mattermark. Interestingly, the ends of the spectrum are seeing the most pronounced effect (although seed rounds are omitted in this analysis), with median Series A rounds growing by 46% (to $7 million) and median late stage rounds growing by 77% (to $55 million).
Here, we see that over a longer time horizon, the growth in round sizes is more pronounced. Courtesy of Mattermark, Series A rounds have grown 68% since 2008.
EquityZen takes a look at which investors have the most Unicorns in their stable, and (surprise, surprise), Sequoia leads the way.
(Source: Yahoo! Finance)
Twitter has dropped to its lowest price since going public, fueling acquisition talks (ahem, Google?) for the social network suffering from product issues. Also, now that Square has filed its S-1, it will be interesting to see how Jack Dorsey spends his time and where he ultimately ends up.
First Round Capital recently turned 10 years old. To celebrate, they looked back over the last 10 years of investments and teased out 10 themes. One of those themes was that founding teams with a Big Tech pedigree performed 160% better than other companies and raised capital at 50% higher valuations.
Sector spotlight: AgTech. Investments into AgTech have increased substantially since 2013. Look out for "precision agriculture", an investment theme of tools helping farmers make better decisions and measurements (read: big data play). Through connected equipment, drones, satellites, and other communications technology, farmers can better measure what's going on with their fields/livestock and also the weather and soil that impact growth.
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