The VC Walking Dead

Zombie VCs On The Rise, A New VC Looks to Break Boundaries in Biotech, and Superplastic Gets Supercharged With Funding.

Author

Adam from VC Brags
February 16, 2023

Welcome Shareholders,   

In this daily edition of the Brags Newsletter, we'll cover the latest on the rise of Zombie VCs, a new VC looking to shake up early-stage biotech investments and a startup getting a big boost from Amazon. 

So sit back, grab a snack, and enjoy!

Venture Today 👏

  • An apocalyptic scenario is being warned by startup investors, where "zombie" VC firms are struggling to raise their subsequent funds.

As higher interest rates loom and recession fears grow, VCs anticipate that there will be several hundred firms that will become zombies in the next few years. Tech valuations have plummeted, negatively impacting the VC industry. Publicly-listed tech stocks have slumped due to investor pessimism on high-growth sectors, with Nasdaq dropping almost 26% from its November 2021 peak. As private valuations follow suit, venture-backed startups are also experiencing the impact.

In light of the current bleak economic conditions, investors anticipate that a swarm of zombie funds will emerge, shifting their focus from generating returns to managing their current portfolios while simultaneously preparing for eventual liquidation. Industry insiders anticipate that VCs will shed staff over time through attrition and avoid filling vacancies left by partners' exits as they look to wind down. 

Who's Raising?

  • Curie.Bio is a new venture firm looking to revolutionize the biotech venture space by raising $520 million from investors. 

The firm will look to help biotech startups navigate the early fundraising lifecycle, from seed to Series A funding. Curie wants to help founders avoid early mistakes by joining its partners as fully integrated members of the team, helping in target selection, budgeting, scientific plan design, and connections with the right vendors.

Curie, which derived its name from the polish physicist and chemist, plans to invest in biotech companies that have a lead program with a concept mature enough to reach a value of between $5 and $7 million 12-18 months after investment. The fund has already made investments in four startups, including Forward Therapeutics and Decrypt Biomedicine, which focuses on immunology; Astoria Biologica, which targets MS; and Differentiated Therapeutics, which is designing degrader therapeutics. 

Startup of the Day

  • Amazon's Venture Capital Arm is leading a $20 Million Series A Extension in Entertainment Company Superplastic. 

The latest funding brings the company's total funds raised to $58 million. Other investors who participated in the round include Craft Ventures, Google Ventures, Galaxy Digital, Sony Japan, Animoca Brands, Betaworks, and others.

Superplastic collaborates with popular brands like Gucci, Fortnite, Mercedes-Benz, Tommy Hilfiger, and celebrities such as Paris Hilton, Post Malone, and The Weeknd to sell toys, apparel, and NFTs. Along with the funding, Superplastic also announced that It was developing The Janky & Guggimon Show in collaboration with Amazon Studios. 

Memes and Other Things

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