funding

Startups jump the shark (and get their own TV show!)

In April, Facebook said it would buy the young but fast-growing, photo-sharing service Instagram for a jaw-dropping $1 billion. By early December, consumer and entertainment startups were complaining they were having a hard time finding early-stage funding. So what happened? It would be easy to blame Bravo's nausea-inducing reality TV show for the reversal of startup fortunes, but the reality is something a little less Hollywood: Lack of good ideas, economic fears, and poor returns from many of the startups that have already been funded.

In other words, an investment cycle obsessively focused on consumer-tech startups may have finally … Read more

Quantum computing goes mainstream? New VC fund debuts

Quantum computing tends to sounds like something out of a science fiction novel or at least The Big Bang Theory. But a new venture capital fund, launching today, is trying to take it mainstream.

The Quantum Wave Fund, which will set up shop in Boston, plans to invest solely in early stage, private companies working on breakthroughs in quantum technology. It won't be providing funding for early research but instead will seek out companies who already have viable and promising products related to quantum computing.

"Too many people take quantum computing as hypothetical," Serguei Kouzmine, managing partner … Read more

Plaintiffs named in suit over Facebook's troubled IPO

A U.S. judge has named the lead plaintiffs in the dozens of class-action lawsuits brought against Facebook over its bungled initial public offering, according to Reuters.

District Judge Robert Sweet has been assigned 42 cases against the social network, which he consolidated in October. Today he picked a handful of plaintiffs to head the suits. The lead plaintiffs include several state pension funds, such as the North Carolina Retirement Systems, Arkansas Teacher Retirement System, the Fresno County Employees' Retirement Association, and Banyan Capital Master Fund. Collectively, this group claims a combined loss of $7.1 million.

"Its members … Read more

Indiegogo moves crowdfunding business beyond USA

PARIS -- Indiegogo, a site that lets people fund projects and companies in exchange for assorted products and perks, is expanding internationally.

Co-founder Danae Ringelmann announced today at the LeWeb conference here that the company today started accepting payments in euros, British pounds, and Canadian dollars, not just U.S. dollars, and has versions of the Web site in German and French.

"Thirty percent of our business is outside U.S., but it's all been in English in U.S. dollars," Ringelmann said. Internationalization of the business will make Indiegogo work more easily elsewhere. "If you'… Read more

Half of YouTube's original video content partners won't make cut

Just like programming in the traditional TV world, many YouTube-backed channels providing original programming won't be back for another season.

About a year after the video-sharing site launched an ambitious program to challenge the cable industry by investing $100 million into the development of dozens of new YouTube channels, many of those channels will not receive a second round of funding.

YouTube plans to provide funding to only 30 percent to 40 percent of its original content providers, with programming partners learning their fate over the next couple of weeks, Ad Age reports.

"Our biggest objective was to … Read more

Spotify reportedly near financing round for a $3B valuation

Spotify is close to closing a $100 million financing round that would value the company at a little more than $3 billion, sources tell The Wall Street Journal.

The capital would come from multiple investors, including Goldman Sachs, although the Journal did not identify who the other investors were.

CNET has contacted Spotify for comment and will update this report when we learn more.

In a funding round last year, the music-streaming service raised about $100 million from venture capital firm Kleiner Perkins Caufield & Byers and Russian investment firm DST Global, to give it a $1 billion valuation. More … Read more

Google Ventures reportedly gets $100 million funding boost

Google Ventures, the search giant's venture-capital arm, is getting more cash to play with.

Google Ventures will now be allowed to invest up to $300 million a year into startups, up from the previous limit of $200 million per year. The boost was reported to Reuters by Google Ventures managing partner Bill Maris, who told the news outlet that the increased cash "puts a lot more wood behind the arrow if we need it."

Google Ventures kicked off in 2009 as a way for the search giant to identify early-stage companies and give them cash to help … Read more

Kickfollower tracks the second life of successful Kickstarter projects

Sometimes we kick ourselves for missing out on a good Kickstarter. There's that moment of sorrow when we see something awesome is already funded and done without us. Then we eventually forget about it.

Kickfollower is a combination of a gentle reminder and a discovery tool for crowdfunded projects. It aggregates successful projects that are now reality and available for purchase from online stores.… Read more

Kickstarter addresses risk and bans project drawings

Kickstarter has been barraged by questions regarding its responsibility to people who fund projects on its platform, and today it addressed many of these concerns.

The crowd-sourced funding platform announced that project creators must now address the risks and challenges of their projects, can no longer use renderings of their proposals, and cannot give mass quantities of their finished products to funders.

"It's hard to know how many people feel like they're shopping at a store when they're backing projects on Kickstarter, but we want to make sure that it's no one," the company'… Read more