Elections and Deals
According to research by Crunchbase, venture funding appears to follow a similar pattern to the Presidential Election Cycle Theory. Election and post-election years ebb similarly to the stock market, regardless of which party wins the Presidential election.
Here are the first-year tallies of the past three administrations:
- Biden Administration- global investment more than doubled yearly, hitting an all-time high of $345 billion.
- Trump Administration- funding rose 26% year-over-year to reach $98 billion.
- Obama Administration- the first year of President Obama’s second term, when investment increased 20% to $48 billion.
Source- Does US Startup Funding Rise In Post-Election Years?; Crunchbase
Historically, up years do outnumber down years for venture capital funding. For startups seeking funding and VCs looking to invest, remember that whoever is elected to the #1 seat in America is historically irrelevant to deal activity in the first year of office.
Notable trends this week…
- The payments sector continues to be ‘HOT’
- Deals picking up
- Most funding in single digits
Up next are this week’s top 5 VC deals…
1Splitero
$300M, Capital | Equity | San Diego | Payments | Antarctica Capital | https://www.splitero.com/
LinkedIn Overview:
“After years of significant home price appreciation, many homeowners are asset-rich, but either cash-poor or have less than perfect credit…“
2Finix
$75M, Series C, Capital| Equity | SF | Payments | Acrew Capital, Leap Global, Lightspeed Venture Partners, Citi Ventures, Tribeca Venture Partners, Homebrew, Insight Partners, Inspired Capital, Cap Table Coalition | https://finix.com/
LinkedIn Overview:
“Finix is a payment processor that makes it easy for software platforms, marketplaces, and individual businesses of all sizes to accept payments and send money while maximizing revenue and reducing costs…”
3Moneybox
£70M, Capital | Equity| UK | Wealthtech | Apis Partners, Amundi | https://www.moneyboxapp.com/
LinkedIn Description:
“At Moneybox, we help you turn your money into something greater. Millions of us want to achieve more with our money…“
4Agrolend
$53M, Series C, Capital| Equity | Brazil | Fintech | Creation Investments, Syngenta Group Ventures, Valor Capital, Lightrock, Yara Growth Ventures, Provence Capital, SP Ventures, Barn | https://www.agrolend.agr.br/
LinkedIn Description:
“Agrolend was born to revolutionize the agribusiness sector for small and medium size farmers in Brazil, giving them access to sustainable credit…“
5Arab Financial Services
$50M, Capital | Equity | UAE | Payments | Undisclosed | https://www.afs.com.bh/en/solutions/business
LinkedIn Description:
“Arab Financial Services (AFS) was formed in 1984 to provide payment products, services and expertise to banks and merchant groups and deliver customized payment solutions…”
