SPECIAL ISSUE! Fed Rate Cut and what it means for markets, VC, businesses, and consumers + 3 new open funds!
Extensive coverage and analysis of the Federal Reserve's first rate cut in 4 years
Welcome to Issue #38 of Startup Deal Desk, and it’s a biggie!
Here’s what you can expect in today’s edition:
Extensive coverage on the effects of the Fed’s recent rate cuts and what it means for markets, venture capital, investors, businesses and consumers
Is BTC poised to rise due to the US debt crises? BlackRock seems to think so.
Every independent board member of 23andMe just resigned – the company never turned a profit since going public
Are Qualcomm and Intel pairing up?
3 new open funds:
Capital Q Ventures, Union Labs, and Virta Ventures
and much more!
Keep reading to see the latest news, trends, and deals 👇.
And don’t forget to subscribe!
What the Fed’s rate cuts mean for investors, businesses and consumers - The Federal Reserve cut interest rates for the first time in four years, by a half point, putting an end to its longest cycle of rate hikes in roughly a decade. The decision lowers the federal funds rate to a range between 4.75%-5%. While the rate sets short-term borrowing costs for banks, it spills over into multiple consumer products such as mortgages, auto loans and credit cards. Any decrease in the central bank’s benchmark rate will ripple through the stock market, hiring, government bonds, and other kinds of loans.
BlackRock preparing $35T Federal Reserve dollar crisis with Bitcoin - The world’s largest asset manager warns of growing concerns around the spiraling $35T US debt pile that's predicted to drive "institutional interest in bitcoin" as fears swirl that the US dollar is on the verge of a total collapse. BTC climbed to over $63,000 after the Fed announced rate cuts.
Every independent board member of 23andMe just resigned - Following a month-long battle over CEO Anne Wojcicki’s plans to take 23andMe private, all seven independent members of its board resigned last Tuesday. Many believe this is the final nail in the coffin for the company known for its mail-order DNA-testing kit. Since going public via merger with a special purpose acquisition company (SPAC) in 2021, 23andMe has never turned a profit. Its price on IPO day was $10. So far in 2024, it has yet to reach a $1 valuation.
Climate startups will likely see a huge impact of the rate cuts - The rate cuts could bolster green energy investments, which took a hit as the US central bank drastically increased the cost of borrowing money in a scramble to lower post-pandemic inflation.
A new dawn for VC could unlock $2.5T in value - According to a new report by Pitchbook, VC investors see the decline in interest rates as the most significant factor in driving an increase in IPO activity after an exit drought that locked over $2.5T in value in unicorns.
Not everyone in PE is thrilled about the rate cuts - Some PE dealmakers say that it won’t help PE deal-making regain its stride, as the market is still struggling with weakening corporate performance, political uncertainties and a slow fundraising climate.
Capital Q Ventures: Revolutionizing alternative investments - A Business Development Company (BDC) offering a diversified investment approach through three key pillars: private credit, private equity and venture capital – offering investors a more diversified portfolio. Currently raising a minimum of $10M, targeting $50M by EOY.
Meet the Managing Partner and learn more about Capital Q here.
Union Labs: Solving big problems with DeepTech - DeepTech venture fund backed by Kleiner Perkins and Google Ventures supporting leading seed-stage startups in Climate, PropTech and Mobility. A team composed of leaders from industry giants like Google, Meta, Intel, and others. Currently raising $38M for their second fund.
Connect with the Founder and get more information on Union Labs here.
Virta Ventures: Supporting ClimateTech founders from day zero - An early-stage fund and syndicate backing entrepreneurs and companies building sustainable ClimateTech businesses. Has a proven track record of 6x MOIC and 75% IRR over 50 angel investments. Currently raising a $10M pre-seed fund.
Find out more about Virta Ventures and meet the Founder by clicking here.
Chip giant Qualcomm made a takeover approach to rival Intel - Qualcomm acquiring Intel would be one of the most significant tech mergers in recent history, potentially shifting the PC industry from Intel’s x86 chips to AI-friendly Arm-based hardware.
Telegram to provide user data to governments - After a month of his arrest, Telegram CEO Pavel Durov announced that the app will provide users’ IP addresses and phone numbers to relevant authorities in response to valid legal requests.
US to ban Chinese software and hardware - The US Commerce Department is expected to propose prohibiting Chinese software and hardware in connected and autonomous vehicles on American roads due to national security concerns.
AtoB raises $130M in Series C funding - Transportation industry payments solution provider AtoB has raised $130M in equity and debt funding. The Series C round was led by General Catalyst and Bloomberg Beta with participation from Mastercard.
GC Therapeutics secures $65M in Series A - Biotech company GC Therapeutics has propelled itself into the cell therapy space with $65M to deliver off-the-shelf induced iPSC-based medicines, bringing the company’s total funds raised to $75M.
AI startup Letta emerges from stealth with $10M - The company that helps AI models remember users and conversations raised a $10M seed round led by Felicis’ Astasia Myers, at a $70M post-money valuation.
✅ Top 4 healthcare AI investment trends to watch in 2024
✅ Is it actually safe to invest in the stock market right now?
✅ Investing in this stock could be like catching Nvidia at the dawn of the AI boom
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Until next time!