by Laghe Andrews | Jan 12, 2024 | Business News, Latest |
Image credit: Tupungato / Shutterstock.com
In a recent move, SoftBank sold its Open Opportunity Fund to its chairman and managing partner, Paul Judge, and Marcelo Claure, who is to be appointed the fund’s vice-chairman and general partner. This groundbreaking shift is seen as a substantial milestone, demonstrating a concrete move towards more inclusive representation within all layers of the venture capital ecosystem.
The Open Opportunity Fund: A Brief History
Earlier this year, SoftBank rebranded its Opportunity Growth Fund, bringing it under the new name of Open Opportunity Fund (OOF). Paul Judge, who was then appointed as chairman, also became a co-owner of the fund. Marcelo Claure, the initial launcher of OOF, had served as SoftBank’s COO up until 2022 and is making a return to work with the fund after a year-long hiatus.
“Marcelo brings a wealth of experience and a vast network that can help our portfolio companies. Marcelo’s extensive network of Latino entrepreneurs significantly enriches our deal flow within this vibrant community,” Judge said.
Significant Contributions
Fund 1, which is now owned by Judge and Claure, deployed $100 million in 75 Black and Latino companies, yielding seven exits and 46 follow-on rounds. SoftBank will continue to be an LP in Fund 2, and according to Claure, the fund is on the lookout for investors seeking to drive more diversity in the tech ecosystem, and who “value the importance of supporting underrepresented entrepreneurs.”
The Future of the Funds
Fund 2, which was launched earlier this year, will also increase its target to $200 million. This fund will invest in 50 pre-seed to growth-stage companies in fintech, health tech, edtech, sales and marketing, and enterprise IT. It should be noted that companies from Fund 1 may also receive funding from Fund 2 on a case-by-case basis, as stated by Judge.
Why Diversity Matters
“We believe the Black and Latino founder market is an untapped source of outsized returns and this focus allows us to find alpha that other VCs have overlooked,” Judge said. “The strong performance of Fund I proves that thesis works.”
This move is not just a significant milestone for SoftBank, but also a giant leap for the venture capital ecosystem. With more diverse representation in the higher echelons of venture capital firms now, the future of the tech ecosystem looks promising indeed, with greater support for underrepresented entrepreneurs.
The world of venture capital can often be complex and difficult to navigate, particularly for underrepresented entrepreneurs. However, with moves such as these from giants like SoftBank, the future of entrepreneurship and innovation looks bright indeed.
by Laghe Andrews | Dec 14, 2023 | Latest, Social Justice |
Hip-hop artist Lil Durk finds himself embroiled in a legal tussle with financial technology company, Exceed Talent Capital. The rapper, whose real name is Durk Derrick Banks, is accused of fraudulent dealings involving the rights to his music track “Bedtime.” The lawsuit, filed in a New York court, seeks a hefty sum of $12 million in damages.
The Allegations
In court documents viewed by Music Business Worldwide, Exceed Talent Capital alleges that the rapper agreed to sell them the rights to “Bedtime.” This agreement was made despite an existing exclusive contract between Lil Durk and Alamo Records, a subsidiary of Sony Music Entertainment.
“Exceed Talent Capital acquired the “Bedtime” rights for $600,000, only to discover later that Durk had previously assigned the same rights to a third party.”
This alleged double dealing has landed the rapper in hot water, with the fintech startup seeking recompense for the hefty sum it paid for the rights.
The Fallout
Exceed Talent Capital claims that the fallout from the failed deal has caused significant harm to its reputation and relationships with partners and investors. The company had already paid $450,000 of the $600,000 owed when it was notified by Alamo Records about Durk’s exclusive recording agreement. The revelation forced Exceed to return the funds invested by third parties.
The list of defendants in the lawsuit extends beyond Lil Durk. Manager Andrew “Dilla” Bonsu, Only The Family Entertainment, Inc, OTF Label, and firm TTPMG are also implicated in the legal action.
Prior Partnership with Exceed
Before this dispute, Lil Durk and Exceed had announced a partnership in October last year. The partnership aimed to offer fans a “Trenches All-Access Pass,” akin to an NFT. This pass promised access to a private Grand Theft Auto roleplay server created by the rapper, which at the time had a waitlist of over 15,000 users.
Fans were offered lifetime access, limited edition in-game wearables, and a chance to invest in shares from proceeds of “Bedtime.” However, this partnership has taken a sour turn with the recent allegations.
The Music Industry’s Response
The music industry has responded with mixed reactions to the lawsuit. Last week, it was reported that the artist formerly known as Kanye West expressed interest in buying out Durk’s contract from Sony. This comes as a significant development, given the high-profile nature of both artists.
Conclusion
As the legal proceedings continue, the future of Lil Durk’s music career and his relationships with music labels and tech companies remains uncertain. The outcome of this case could potentially have far-reaching implications for the music industry and the intersection of music and technology.
The case serves as a reminder of the importance of transparency and integrity in business dealings, particularly in industries like music where intellectual property rights are paramount. It remains to be seen how Lil Durk will respond to these allegations and what impact this will have on his career and reputation.
by Pharron Fields | Sep 5, 2023 | Business News, Latest, Tech News |
Image Credit: Photo by Per Lööv on Unsplash
Teamshares: A Novel Approach to Business
First on our list is an intriguing venture by Teamshares. This startup has been attracting a substantial amount of capital and has embarked on an ambitious mission of acquiring numerous small and medium-sized businesses (SMBs). However, this is merely the tip of the iceberg. Teamshares also plans to offer its employees the opportunity to earn stock through prolonged service, while simultaneously providing centralized fintech services to all its subsidiary companies. This novel business model has ignited much discussion in the startup community.
MoonPay: Stepping into the Venture Game
Next, we turn our attention to MoonPay, a crypto payment infrastructure company that is venturing into the world of investments. MoonPay is setting its sights particularly on crypto, gaming, and fintech. The confluence of these three sectors invariably leads to crypto games. We are keenly observing MoonPay’s investment decisions, as new funds that are crypto-themed or crypto-adjacent are becoming increasingly scarce. Therefore, MoonPay’s entry into the market is indeed exciting news.
Rent Butter and Kiki: Revitalizing Renting
With the zero interest rate era drawing to a close and the experimental phase of building new iBuying and mortgage service startups partially concluded, renting is back in vogue. Consequently, startups that focus on rentals are also gaining traction. Two such startups are Rent Butter and Kiki, both of which are making waves in the rental market.
The Elusive Tech IPOs
The long-awaited tech IPOs have been more elusive than anticipated. Using data from Crunchbase, we have noted the extended wait for authentic tech IPOs. The good news, however, is that they are gradually making a comeback.
Lean Startup Ideology Meets AI
Lastly, we explore what happens when the lean startup ideology infiltrates the realm of Artificial Intelligence (AI). As it turns out, this combination leads to an abundance of experiments.
And with that, our roundup of this week’s most significant startup and tech news concludes. Please note that due to an American holiday, our next episode of Equity will be broadcasted on Tuesday instead of Monday. Until then, keep innovating and stay tuned!
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