Language can be a powerful force in technology.
Linguistic advantage can be a competitive advantage. When it comes to ridesharing, everyone has probably said, “Let's call an Uber” at least once. How many times have you said, “Let's Google it” when it comes to search? If we're talking about AI chatbots, you've probably heard the phrase “Looks like ChatGPT.” For a company or its product to be a verb or a noun (or often both) often signifies dominance.
But the Kickstarter story is a reminder that linguistic superiority alone isn't always enough. My colleagues Jessica Matthews and Leo Schwartz take us through the last decade of Kickstarter and Andreessen Horowitz's crypto-driven gamble with its $100 million tender offer for the company in 2021. I just published an article about it. luck This story was first reported.
The recent past is often the most difficult to fully remember. But at its peak, Kickstarter was a cultural juggernaut. It was a true darling, a star of New York's tech scene, and a purveyor of the crowdfunding model that spawned all sorts of hits from the works of Phoebe Waller-Bridge. free bag Oculus, the pioneer of VR headsets. Schwartz and Matthews write:
At the time, the company's anti-corporate leanings and grassroots ethos attracted prominent investors and helped shape New York's nascent tech scene. Events and viral fundraising campaigns, from movie premieres to rooftop festivals, demonstrate that creative business ideas can succeed and raise money outside of Silicon Valley, and that artists can gain support from fans. It helped me prove that I can do it.
But over a dozen years after its launch, Kickstarter has lost its reputation as cool and fallen out of favor with its CEO. His 2021 Kickstarter had little to offer would-be investors, but it was a headache. Growth at the startup, which made money by taking a small cut when projects on the platform reach funding thresholds, has leveled off, and its once-cushy culture has been shaken by intense unionization efforts. It had become harmful. The new shareholders will take ownership of a brand that many felt was outdated.
Here's where things get weird. When the company's fortunes took a turn for the worse, a savior appeared. It's a16z. Chris Dixon, head of crypto at a16z, was an early investor in the company. This marks the start of a new “Hail Mary” chapter for Kickstarter. Details of the story are as follows:
After all, this wasn't just a small top-up to keep the lights on, but a staggering $100 million investment that valued the startup at about $400 million. But there was a catch. The investment comes as Kickstarter's new backer, venture giant Andreessen Horowitz's crypto fund, seeks to capitalize on the latest hype cycle and hopes that Kickstarter will pivot to blockchain. It was carried out from
I won't spoil the ending, but if you want to go along for the ride, you can read the whole thing here.
see you tomorrow,
Allie Garfinkle
twitter: @agarfinks
Email: alexandra.garfinkle@fortune.com
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Joe Abrams curated the deals section of today's newsletter.
venture deal
– nanoneta San Francisco-based AI-powered workflow automation program, has raised $29 million in Series B funding. accel india Led the round with participation from existing investors altitude capital, Y combinatorothers.
– adaptive MLa Paris, France-based developer of technology designed to help companies improve the AI models they generate based on user interactions, has raised $20 million in seed funding. index ventures, iconic capital, Motier Ventures, Databricks Venturesothers.
– Kedima San Francisco-based AI-powered platform designed to create digital 3D assets for game developers and interactive content creators, has raised $15 million in Series A funding. A16Z game I led the round and was joined by: pioneer fund and angel investors.
– Simera senseThe Leuven, Belgium-based small satellite Earth observation camera provider has raised €13.5 million ($14.7 million) in funding from: new space capital and knife capital.
– AI with valueOrlando, Florida-based AI-powered financial underwriting platform has raised $12 million in pre-seed funding. florida opportunities fund, jim douglasand Asif Ramji.
– Piensoan Arlington, Virginia-based AI platform designed to turn text data into insights, has raised $10 million in funding. Latimer Ventures I led the round and was joined by: Gideon Capital, SRI, pull the corkand great growth capital.
– visionary A.I.an AI-powered media measurement and optimization platform based in Miami, Florida, has raised $10 million in Series A funding. heading and Investing in CEAS Led the round with participation from existing investors bloomberg capital and Focal VC.
– Sanzoa Brooklyn, New York-based company that makes Asian-style sparkling water, has raised $5 million in funding from: Simu Liu and Steve Aoki.
– Groupagoa digital microcredit provider for small and medium-sized businesses based in Mexico City, has raised $4.3 million in seed funding. Decien capital I led the round and was joined by: Precursor Ventures, clocktower ventures, twine venturesothers.
– keya professional networking platform based in Palo Alto, California, has raised $4.3 million in funding. Felicis I led the round and was joined by: liquid 2 ventures, alumni venture, Archangels Ventures, Serigo Investments, Everywhere Venturesothers.
– code zeroa cloud development platform based in Vancouver, Canada, has raised $3.5 million in seed funding. ballistic ventures.
private equity
– KKR agreed to the acquisition MDF Commercea Quebec, Canada-based digital commerce technology provider, has been acquired for approximately C$255 ($189 million).
– Access information managementwas supported by GI partner and Berkshire Partnersobtained Triamis a Lexington, Kentucky-based provider of data management solutions for healthcare organizations. Financial terms were not disclosed.
Exit
– SPIE Group agreed to the acquisition ICG Groupis a provider of digital communications infrastructure and master network expansion based in Leonberg, Germany. HIG Capital. Financial terms were not disclosed.
– u world obtained aspen publishingis a Boston, Massachusetts-based provider of educational content to law schools. transom capital. Financial terms were not disclosed.
other
– Crane NXT (NYSE:CXT) agreed to the acquisition operational security safetya Lancaster, Pennsylvania-based provider of brand protection and authentication services, has been acquired for $270 million in cash.
IPOS
– redditis a San Francisco-based social media platform that plans to raise up to $748 million in an offering of 22 million shares priced between $31 and $34. The company had sales of $804 million for the year ended December 31, 2024. advance magazine publisher, Fidelity Investments, A quiet capital implicit capital, Sam Altman, tencentand Vicapital I'm going back to work.
people
– brand velocity groupa private equity firm based in New York City and San Francisco, hired Daniel Hodges As a principal.he was with me before Alliance Consumer Growth.
– The Venture CityMiami, Florida-based venture capital firm promotes Alvaro Sanz Siete Iglesias To your partner.
