Russian-backed VC firm navigates a global crisis

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The Daily Pitch: VC

March 7, 2022

Like our newsletter? The data comes from the PitchBook Platform — our data software for VC, PE and M&A

In today's Daily Pitch, you'll find:

A Silicon Valley VC firm with strong ties to Russia discusses the risks of further sanctions and their potential impact on capital calls.

Our 2021 Global League Tables, ranking the top investors, advisers and more across PE and VC.

Private market dealmaking in the Nordic countries has soared to new heights.

Today's Top Stories

California VC firm backed by Russia navigates a global crisis

Fort Ross Ventures is named after a Northern California outpost set up by Russian explorers in the 19th century.
(Buyenlarge/Getty Images)

Fort Ross Ventures was launched in Silicon Valley more than seven years ago with the backing of the now-sanctioned Sberbank, Russia's oldest and largest financial institution.

As Russia faces growing worldwide condemnation of its assault on Ukraine, Fort Ross has to confront the possibility, no matter how low, that the firm's other Russia-based LPs, who are primarily tech entrepreneurs, could end up being sanctioned as well.

"Obviously we are not the only fund with Russian LPs. I don't want to name them, but I do know that many top-tier, very well branded VCs in the valley and also in Europe have Russian money," said Victor Orlovski, a general partner with Fort Ross.

Recommended Reads

As major US cities recover from the pandemic, San Francisco is getting left behind. [Bloomberg]

Just as with diseases like malaria and HIV, rich countries are rushing to declare the pandemic "over" while the Global South continues to struggle. [The Atlantic]

As public pension funds try to divest from Russia, stock market closures and the illiquidity of certain private assets are making it more than difficult. [Institutional Investor]

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	Atomic picks up $40M Series B
	Espresso Systems locks in $32M
	AssemblyAI nabs $28M
	Disco banks $20M
	Investors
	Alumni Ventures repays $4.7M to settle SEC charges

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VC Deals

Atomic picks up $40M Series B

Atomic has raised $40 million in a round co-led by Mercato Partners and Greylock Partners. Based in Salt Lake City, the company is a developer of a digital financial platform designed to manage online payroll transactions.

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Espresso Systems locks in $32M

Espresso Systems has raised $32 million in a round led by Greylock Partners and Electric Capital. The company is developing scaling and privacy solutions for Web3 applications.

AssemblyAI nabs $28M

AssemblyAI has raised a $28 million Series A led by Accel. Based in the Bay Area, the company is a developer of speech recognition software designed to automate audio transcriptions.

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Disco banks $20M

Disco has raised a $20 million Series A led by Felicis Ventures. Based in the Bay Area, the company is a developer of digital tools intended to help brands manage partnerships, marketing and merchandising operations.

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Investors

Alumni Ventures repays $4.7M to settle SEC charges

Alumni Ventures has agreed to repay $4.7 million to affected funds and pay a $700,000 penalty to the SEC to settle charges that the VC firm made misleading statements about its management fees and engaged in interfund transactions that breach fund operating agreements.

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Chart of the Day

"The median PE buyout EV/EBITDA multiple came in at 12.6x in 2021, dropping nearly three turns from 2020. We expect multiples to remain in the low- to mid-double-digit territory, largely buoyed by strong European equity prices."

Source: PitchBook's 2021 Annual European PE Breakdown