Term Sheet – Friday, July 13

By July 13, 2018 Ripple
Click here to view original web page at fortune.com

Good morning all! Lucinda back again for today and Friday. Reach me lucinda.shen@fortune.com.


Well, kind of.

The venture capital arm of his family office, Cohen Ventures, recently invested in Autonomous Partners, a crypto hedge fund. According to founder Arianna Simpson, the fund has gained investments in the lower eight digits from Coinbase CEO Brian Armstrong, Union Square Ventures, and Craft Ventures.

Autonomous Partners holds a broad swath of major cryptocurrencies, including Ethereum and Bitcoin, both of which have historical and nostalgia-related significance in the crypto sphere. But the fund says Simpson said she is looking forward in this time of regulatory uncertainty.

“I am also looking at what is the next generation,” she told me. She has invested in, for example, 0x, a protocol allowing for the creation of decentralized exchanges, or exchanges that don’t need a central management team to function. It also has a token dubbed ZRX, which has fallen about 1.14% this year.

So yeah, Cohen’s not directly looking beyond Bitcoin, though his investment is.

One notable exception from the fund: XRP tokens, which is majority-owned by Ripple and is the third largest cryptocurrency by market capitalization. While Autonomous holds a swath of the largest cryptos out there, it’s stayed away from XRP over concerns that the token will be dubbed a security by none other than the Securities and Exchange Commission. While Ripple has argued that XRP is not equity, not everyone is convinced. Multicoin Capital, another hedge fund startup, is apparently so skeptical that it’s gone ahead and shorted the tokens.

Read the rest of the story here.

MORE YIELD (MORE PROBLEMS?): That also comes at a time when there appears to be an uptick in hedge fund investments in venture capital. In the first half of the year, hedge funds and their related entities have poured about $5.8 billion into the space, up from $5.3 billion for the entirety of 2017 (Thanks, Pitchbook!). That uptick also comes slightly after a downturn in such deals in 2016, when the figure fell to $4.37 billion from $7.5 billion a year earlier.

Perhaps it’s getting harder to find stuff to get excited about in public markets. Companies are choosing to stay private longer, and the public market as measured by the S&P 500 has stalled in 2018. Guess we’re all just looking for more yield, risks aside.

FINTECH FINTECH FINTECH: CB Insights has an interesting tidbit on top Fintech unicorns. Ribbit Capital apparently is at the top, being the “most active investor in fintech unicorns.”

About 24% of of its fintech investments, 10 out of 41 startups, have become unicorns, a figure larger than Andreessen Horowitz and SV Angel.

INSTAGRAM: That and scandal has helped propel Kylie Jenner, the 20-year-old of Kardashian fame, to $900 million by Forbes estimates. And now that her lip-kit company is pushing her nearly the billionaire’s club, someone has intrepidly decided to try and buy her a membership via a GoFundMe page. Is it a joke? Maybe. But what’s perhaps more bizarre: People have actually donated, with $422 raised of an $100 million goal.

NO ROMEO AND JULIET HERE: President Donald Trump blocked Singapore-based Broadcom’s $117 billion bid for chip maker Qualcomm over national security concerns in March.

A few months later, Broadcom is nearing a deal to purchase New York City-based CA Technologies, in the red-hot semiconductor space, for a lesser $18.9 billion in cash.

At the time, the administration was concerned that Broadcom was taking over a leader, in other words a big company, in the industry.

Though that does make me wonder: Have any readers out there changed their investing behavior or seen a shift in potential investors interest due to the administration’s tougher stance of foreign investments?

• Tesla Whistleblower Ups Ante, Making a Formal Complaint With the SEC (by Kevin Kelleher)

• Papa John’s Shares Slide as John Schnatter Faces Another Controversy

• 3 Key Lessons From Trump’s Drug Price Feud With Pfizer (by Sy Mukherjee)

• Want to File a Complaint With the FCC? It Could Cost You $225 (by Chris Morris)


Tiger Global goes Softbank. Brexit, without an actual exit. Good returns of Music.ly and Youku. Trump on NATO. North Korea pulls a no-show. Comcast vs. Disney. VC funding hits 2000s levels in San Diego. How to pay for growth, PE style. Big money tests Marijuana. Waste management.


Well, kind of.The venture capital arm of […]

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