In technology, language can be powerful.
Linguistic advantage can be a competitive advantage. In a ridesharing service, we've all probably said at some point, “Let's call Uber.” In searching, how many times have you said “I'll just Google it”? And if you're talking about an AI chatbot, you've probably heard someone say “it's like ChatGPT.” Turning a company or its product into a verb or a noun (or in many cases, both) often denotes dominance.
But the Kickstarter story reminds us that linguistic dominance is not always enough. My colleagues Jessica Matthews and Leo Schwartz just published an article that takes us inside Kickstarter's last decade, and Andreessen Horowitz's cryptocurrency-based gamble on the company in 2021, to the tune of a $100 million tender offer. luck He was the first to report the story.
The recent past is often the most difficult to remember in its entirety. But at its peak, Kickstarter was culturally huge. He was truly a darling, a star of the New York tech scene and purveyor of a crowdfunding model that produced hits of all kinds, from an album by Phoebe Waller-Bridge. Flea bag To the leading virtual reality headset company Oculus. As Schwartz and Matthews write:
At the time, the company's anti-corporate, populist ethos attracted celebrity investors and helped shape New York's early tech scene. Its events, from movie premieres to rooftop festivals, and its viral fundraising campaigns, have helped prove that creative business ideas can find success — and funding — outside Silicon Valley, and that artists can get support from their fans. .
But twelve years after its launch, Kickstarter had lost its appeal among CEOs. The 2021 Kickstarter didn't have much to offer potential investors except headaches. Growth has been flat at the startup, which made its money by taking a small stake when a project on its platform reached the funding threshold, and the feel-good culture it once enjoyed has become toxic in the wake of a bitter union campaign. The new shareholders will inherit ownership of a brand that many felt had become stale.
This is where the story gets strange. As the company's fortunes grew, a savior emerged: a16z, whose head of cryptocurrency, Chris Dixon, was an early investor in the company. This begins a new Hail Mary chapter for Kickstarter. As the story details:
After all, this wasn't a small sum to keep the lights on, but a staggering $100 million investment that valued the startup at around $400 million. But there was a catch. The investment came with expectations that Kickstarter would attempt to shift to blockchain as its new donor — Andreessen Horowitz's cryptocurrency fund — sought to capitalize on the latest cycle of hype.
I won't spoil the ending, but if you want to take a ride, you can read the full story here.
see you tomorrow,
Allie Garfinkel
Twitter: @agarfinks
e-mail: alexandra.garfinkle@fortune.com
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Joe Abrams coordinated the deals section of today's newsletter.
Project deals
– Nanonetworksan AI-powered workflow automation software based in San Francisco, has raised $29 million in Series B funding. Excel India She led the round and was joined by existing investors DC height, Y consolidatedand others.
– Adaptive machine learninga Paris, France-based developer of technology designed for organizations to improve their generative AI models based on user interactions, has raised $20 million in seed funding from Index projects, ICONIC capital, Motor projects, Databricks projectsand others.
– Kadima San Francisco-based AI platform designed to produce 3D digital assets for game developers and interactive content creators, has raised $15 million in Series A funding. A16Z Games He led the tour and joined him Pioneers Fund And angel investors.
– Cymera SenseBelgian company Leuven, which specializes in providing Earth observation cameras for small satellites, has raised 13.5 million euros ($14.7 million) in funding from… New Space Capital And Skin Capital.
– Worthy of AIan AI-based financial underwriting platform based in Orlando, Florida, has raised $12 million in seed funding from Florida opportunity finance, Jim DouglasAnd Asif Ramzi.
– I suspectan Arlington, Va.-based AI platform designed to turn text data into insights, has raised $10 million in funding. Latimer Enterprises He led the tour and joined him Gideon Capital, secret, uncorkAnd Good growth capital.
– Insightful Amnesty Internationalan AI-powered media measurement and optimization platform based in Miami, Florida, has raised $10 million in Series A funding. the address And CEAS Investments She led the round and was joined by existing investors Bloomberg capital And Focal VC.
– Sanzoa Brooklyn, New York-based company that produces Asian-inspired sparkling water, has raised $5 million in funding from… Simo Liu And Steve Aoki.
– Mass paymenta Mexico City-based digital microloan provider for small businesses, has raised $4.3 million in seed funding. ten thousands capital He led the tour and joined him Precursor projects, Clock tower projects, Twine projectsand others.
– keya professional networking platform based in Palo Alto, California, has raised $4.3 million in funding. happy He led the tour and joined him Questioner 2 Projects, Graduate projects, Archangel projects, Cerego Investments, Everywhere projectsand others.
– codezeroa cloud development platform based in Vancouver, Canada, has raised $3.5 million in seed funding from… Ballistic projects.
Private equity
– KKR I agreed to the takeover MDF tradea digital commerce technology provider based in Quebec, Canada, for approximately C$255 ($189 million).
– Access information managementbacked by GI Partners And Berkshire Partnersacquired Triam, a Lexington, Kentucky-based company that provides data management solutions to healthcare organizations. Financial terms were not disclosed.
Exits
– SPIE Group I agreed to the takeover ICG Groupa company based in Leonberg, Germany, is a provider of digital communications infrastructure and backbone network expansion, from HIG Capital. Financial terms were not disclosed.
– UWorld acquired Aspen Publishinga Boston, Massachusetts-based company that provides educational content to law schools, from Transom Capital. Financial terms were not disclosed.
last
– Crane NXT (NYSE: CXT) I agreed to the takeover Security operation protectiona brand protection and authentication services company based in Lancaster, Pennsylvania, for $270 million in cash.
intellectual property
– Reddit, a San Francisco-based social media platform, plans to raise up to $748 million by offering 22 million shares priced between $31 and $34. The company reported revenue of $804 million for the year ending December 31, 2024. Publishers of Al-Taqaddim magazine, Fidelity Investments, Quiet capital and Implicit capital, Sam Altman, TencentAnd You are capital The company returns.
the people
– Brand speed seta private equity firm based in New York City and San Francisco Daniel Hodges As a manager. Previously it was with him Consumer growth in the alliance.
– TheVentureCitya venture capital firm based in Miami, Florida, was promoted Alvaro Sanz Sitiglesias To participate.
