Connect with us

Business

Rebecca Lynn spins out of Canvas Ventures to found Canvas Prime as solo GP

Published

on


Rebecca Lynn doesn’t believe in first-mover advantage.

“Never be a first mover,” says Lynn. First movers bear the burden of proving that a market exists, she says. “You’re paying to get consumer awareness of that market. You’re fighting this uphill battle. You’re spending a ton of money to prove out the market—and by the time you finally prove it exists, you have an aging tech stack. Why not let somebody else break that pick? You watch where the puck is going, and then come in with a better product and better marketing as a second mover.”

It’s advice Lynn has gleaned from decades of experience on the operations and investing sides of the table. Lynn never planned to be a VC—a first-generation college kid from the Midwest, she spent her early career in the late ’90s at Procter & Gamble. In 2007, right before the Great Recession fully materialized, she ended up taking her first venture gig at Morgenthaler Ventures. The very first term sheet she gave out was for financial services company Lending Club in 2009. 

“Always keep an eye on the macro,” Lynn says. “So, when Lehman crashed, that’s what made Lending Club a great deal. Without the crash of Lehman, we wouldn’t have invested in Lending Club. But there was this macro opportunity where suddenly their product just nailed it. They were doing peer-to-peer lending and, before the crash, it was a good idea. Then, the market goes down in flames, and even if you have an 800 credit score, you can’t get a loan. It created this opportunity where they had a clear runway ahead of them.”

In 2014, Lending Club would become the biggest tech IPO of the year. Since then, she’s also been an early investor in Doximity, Luminar, FutureAdvisor, Check, and Casetext. Now, twelve years after cofounding Canvas Ventures (spun out from Morgenthaler Ventures in 2013), Lynn is spinning out on her own, launching new firm Canvas Prime as a solo GP, she exclusively told Fortune

“We got a lot of guidance from our LPs that they liked my strategy and results,” she says. “And I had really, from a top-down level, wanted to focus more for years. Because focus—that’s the Kool-Aid we tell our entrepreneurs to drink: Focus, focus, focus, execution, execution. Make a decision, and make it fast. Because not making a decision is also making a decision.”

Lynn is keeping the Canvas name, as she’s retaining board seats and continuing to support her current portfolio companies, including Savvy Wealth, Airvet, and Marvin. In some ways, Lynn is part of a broader trend in venture, of solo GPs who have a deep well of experience, leaving older or larger firms behind. Her strategy for Canvas Prime is defined: The firm concentrates on a few sectors—primarily fintech, digital health, and AI—where she has proven expertise and a track record, plus a concentrated, high ownership portfolio. They invest in 12-15 companies a year while taking significant ownership stakes of 15% to 25% to maximize returns. 

“I think the days of the mid-market, generalist fund are absolutely gone,” says Lynn. “They don’t work. Smaller funds outperform, and here’s a number: Specialized funds have 37% higher returns than generalist funds… And when we did the bottom-up analysis on where we made money for our investors, it was blindingly clear we made money in fintech, digital health, and AI—and that was it.”

In a lot of ways, Canvas Prime is about remembering that it’s important, and necessary, to say no. 

“You just can’t be an expert at everything,” Lynn told Fortune. “What we tell the CEOs all the time is that knowing what to say no to is the most important skill set you can develop. So, it’s all about having focus and clarity on what we need to cover, how we need to cover it, who we need to hire, and what we need to build out to be helpful to our companies.”

Term Sheet Podcast, Episode 3… This week, we’re trying something new on the Term Sheet Podcast—pairing an episode with an essay! In my Term Sheet Podcast interview with Rebecca Lynn, we discussed her roots in the Midwest, her path to Silicon Valley, and what she’s learned as an entrepreneur turned venture capitalist. Plus, my take on the Nvidia-AMD-Trump deal and newly minted AI billionaires. Listen here.

See you tomorrow,

Allie Garfinkle
X:
@agarfinks
Email: alexandra.garfinkle@fortune.com
Submit a deal for the Term Sheet newsletter here.

Joey Abrams curated the deals section of today’s newsletter. Subscribe here.

Venture Deals

Appcharge, a Tel Aviv, Israel-based mobile game payments platform, raised $58 million in Series B funding. IVP led the round and was joined by Playrix, Creandum, Moneta VC, Play Ventures, Gilot Capital Partners, Smilegate Investment, and others.

Gameto, a New York City-based cell engineering company focused on women’s reproductive health, raised $44 million in Series C funding. Overwater Ventures led the round and was joined by Insight Partners, RA Capital, Two Sigma Ventures, and others.

Kustomer, a New York City-based AI-powered CX platform, raised $30 million in Series B funding. Norwest led the round and was joined by Battery, Redpoint, and Boldstart

GoodShip, a Bellevue, Wash.-based operating system for the freight industry, raised $25 million in Series B funding. Greenfield Partners led the round and was joined by Bessemer Venture Partners, Ironspring Ventures, Chicago Ventures, and FUSE VC.

Jump, a Los Angeles, Calif.-based fan experience platform for sports, raised $23 million in Series A funding. Alexis Ohanian and Seven Seven Six led the round and were joined by Courtside Ventures, Will Ventures, Forerunner, and others.

Arintra, an Austin, Texas-based AI-powered medical coding automation platform, raised $21 million in Series A funding. Peak XV Partners led the round and was joined by Endeavor Health Ventures, Y Combinator, Counterpart Ventures, and others.

Ultraviolette, a Bangalore, India-based electric motorcycle company, raised $21 million in funding. TDK Ventures led the round.

Transak, a Miami, Fla.-based developer of fiat-to-crypto infrastructure, raised $16 million in funding. Tether and IDG Capital led the round and were joined by others. 

Datumo, a Seoul, South Korea-based generative AI evaluation company, raised $15.5 million in Series B funding from KB Investment, Shinhan Venture Investment, Kiwoom Investment, SBI Investment, Salesforce Ventures, and others.

Mako, a New York City-based AI infrastructure company that builds intelligent agents to generate and optimize GPU kernels, raised $10 million in seed funding. M13 led the round and was joined by Torch Capital and Parable VC

Dealops, a San Francisco-based developer of pricing infrastructure for revenue teams, raised $7 million in funding. Pear VC and General Catalyst led the round and were joined by Depth VC, Elsa Ventures, Weekend Fund, Flex Capital, Allison Pickens, 20 Sales, and others.

Refold, a San Mateo, Calif. and Bangalore, India-based developer of AI agents for integrating  enterprise software systems, raised $6.5 million in seed funding. Eniac Ventures and Tidal Ventures led the round and were joined by Better Capital, Ahead VC, Karman Ventures, Z21, and angel investors.

Infinity Loop, a New York City-based AI-powered deal analysis platform, raised $5 million in seed funding. Glasswing Ventures and TIAA Ventures led the round and were joined by Plug and Play, Restive Ventures, and angel investors.

HoneyCoin, a Nairobi, Kenya-based cross-border payments platform, raised $4.9 million in seed funding. Flourish Ventures led the round and was joined by Visa Ventures, TLCom Capital, Stellar Development Foundation, Lava, Musha Ventures, 4DX Ventures, and Antler.

Levr Bet, a Costa Rica-based decentralized sports betting platform, raised $3 million in funding. Blockchain Capital and Maven 11 led the round.

TLIKI, a London, U.K.-based AI-powered game creation platform, raised $2.2 million in pre-seed funding. Twin Path Ventures led the round and was joined by Atlas Sgr, XTX Ventures, and SFC Capital.

Private Equity

Ruppert Landscape, backed by Knox Lane, acquired Greatscapes Property Management, a Winchester, Va.-based landscaping company. Financial terms were not disclosed.

Exits

Hubbell Incorporated agreed to acquire DMC Power, a Carson, Calif.-based provider of connectors and tooling for utility substation and transmission markets, from Golden Gate Capital. Financial terms were not disclosed.

Apollo agreed to acquire Trace3, an Irvine, Calif.-based digital and IT services provider, from American Securities

Proterra Investment Partners acquired AcreTrader, a Fayetteville, Ariz.-based farmland investment platform. Financial terms were not disclosed. 

Funds + Funds of Funds

Pacific Avenue Capital Partners, a Los Angeles, Calif.-based private equity firm, raised $1.65 billion for its second fund focused on corporate carve-outs and divestitures.

Periscope Equity, a Chicago, Ill.-based private equity fund, raised $370 million for its third fund focused on founder-owned business services companies.



Source link

Continue Reading

Business

US vaccine advisers end decades-long recommendation for all babies to get hepatitis B shot at birth

Published

on



A federal vaccine advisory committee voted on Friday to end the longstanding recommendation that all U.S. babies get the hepatitis B vaccine on the day they’re born.

A loud chorus of medical and public health leaders decried the actions of the panel, whose current members were all appointed by U.S. Health Secretary Robert F. Kennedy Jr. — a leading anti-vaccine activist before this year becoming the nation’s top health official.

“This is the group that can’t shoot straight,” said Dr. William Schaffner, a Vanderbilt University vaccine expert who for decades has been involved with the Advisory Committee on Immunization Practices and its workgroups.

Several medical societies and state health departments said they would continue to recommend them. While people may have to check their policies, the trade group AHIP, formerly known as America’s Health Insurance Plans, said its members still will cover the birth dose of the hepatitis B vaccine.

For decades, the government has advised that all babies be vaccinated against the liver infection right after birth. The shots are widely considered to be a public health success for preventing thousands of illnesses.

But Kennedy’s advisory committee decided to recommend the birth dose only for babies whose mothers test positive, and in cases where the mom wasn’t tested.

For other babies, it will be up to the parents and their doctors to decide if a birth dose is appropriate. The committee voted 8-3 to suggest that when a family elects to wait, then the vaccination series should begin when the child is 2 months old.

President Donald Trump posted a message late Friday calling the vote a “very good decision.”

The acting director of the Centers for Disease Control and Prevention, Jim O’Neill, is expected to decide later whether to accept the committee’s recommendation.

The decision marks a return to a health strategy abandoned more than three decades ago

Asked why the newly-appointed committee moved quickly to reexamine the recommendation, committee member Vicky Pebsworth on Thursday cited “pressure from stakeholder groups,” without naming them.

Committee members said the risk of infection for most babies is very low and that earlier research that found the shots were safe for infants was inadequate.

They also worried that in many cases, doctors and nurses don’t have full conversations with parents about the pros and cons of the birth-dose vaccination.

The committee members voiced interest in hearing the input from public health and medical professionals, but chose to ignore the experts’ repeated pleas to leave the recommendations alone.

The committee gives advice to the director of the Centers for Disease Control and Prevention on how approved vaccines should be used. CDC directors almost always adopted the committee’s recommendations, which were widely heeded by doctors and guide vaccination programs. But the agency currently has no director, leaving acting director O’Neill to decide.

In June, Kennedy fired the entire 17-member panel earlier this year and replaced it with a group that includes several anti-vaccine voices.

Hepatitis B and delaying birth doses

Hepatitis B is a serious liver infection that, for most people, lasts less than six months. But for some, especially infants and children, it can become a long-lasting problem that can lead to liver failure, liver cancer and scarring called cirrhosis.

In adults, the virus is spread through sex or through sharing needles during injection drug use. But it can also be passed from an infected mother to a baby.

In 1991, the committee recommended an initial dose of hepatitis B vaccine at birth. Experts say quick immunization is crucial to prevent infection from taking root. And, indeed, cases in children have plummeted.

Still, several members of Kennedy’s committee voiced discomfort with vaccinating all newborns. They argued that past safety studies of the vaccine in newborns were limited and it’s possible that larger, long-term studies could uncover a problem with the birth dose.

But two members said they saw no documented evidence of harm from the birth doses and suggested concern was based on speculation.

Three panel members asked about the scientific basis for saying that the first dose could be delayed for two months for many babies.

“This is unconscionable,” said committee member Dr. Joseph Hibbeln, who repeatedly voiced opposition to the proposal during the sometimes-heated two-day meeting.

The committee’s chair, Dr. Kirk Milhoan, said two months was chosen as a point where infants had matured beyond the neonatal stage. Hibbeln countered that there was no data presented that two months is an appropriate cut-off.

Dr. Cody Meissner also questioned a second proposal — which passed 6-4 — that said parents consider talking to pediatricians about blood tests meant to measure whether hep B shots have created protective antibodies.

Such testing is not standard pediatric practice after vaccination. Proponents said it could be a new way to see if fewer shots are adequate.

A CDC hepatitis expert, Adam Langer, said results could vary from child to child and would be an erratic way to assess if fewer doses work. He also noted there’s no good evidence that three shots pose harm to kids.

Meissner attacked the proposal, saying the language “is kind of making things up.”

Health experts say this could ‘make America sicker’

Health experts have noted Kennedy’s hand-picked committee is focused on the pros and cons of shots for the individual getting vaccinated, and has turned away from seeing vaccinations as a way to stop the spread of preventable diseases among the public.

The second proposal “is right at the center of this paradox,” said committee member Dr. Robert Malone.

Some observers criticized the meeting, noting recent changes in how they are conducted. CDC scientists no longer present vaccine safety and effectiveness data to the committee. Instead, people who have been prominent voices in anti-vaccine circles were given those slots.

The committee “is no longer a legitimate scientific body,” said Elizabeth Jacobs, a member of Defend Public Health, an advocacy group of researchers and others that has opposed Trump administration health policies. She described the meeting this week as “an epidemiological crime scene.”

Republican Sen. Bill Cassidy, a liver doctor who chairs the Senate health committee, called the committee’s vote on the hepatitis B vaccine “a mistake.”

“This makes America sicker,” he said, in a post on social media.

The committee heard a 90-minute presentation from Aaron Siri, a lawyer who has worked with Kennedy on vaccine litigation. He ended by saying that he believes there should no ACIP vaccine recommendations at all.

In a lengthy response, Meissner said, “What you have said is a terrible, terrible distortion of all the facts.” He ended by saying Siri should not have been invited.

The meeting’s organizers said they invited Siri as well as a few vaccine researchers — who have been vocal defenders of immunizations — to discuss the vaccine schedule. They named two: Dr. Peter Hotez, who said he declined, and Dr. Paul Offit, who said he didn’t remember being asked but would have declined anyway.

Hotez, of the Texas Children’s Hospital in Houston, declined to present before the group “because ACIP appears to have shifted its mission away from science and evidence-based medicine,” he said in an email to The Associated Press.



Source link

Continue Reading

Business

Jamie Dimon on AI: ‘maybe one day we’ll be working less hard but having wonderful lives’

Published

on



JPMorgan Chase CEO Jamie Dimon reiterated a nuanced and overall upbeat view about the effect of artificial intelligence on the economy.

In an interview with Fox News’ Sunday Morning Futures, the head of the world’s biggest bank acknowledged businesses have been cautious about hiring lately but said it’s not related to AI and doubted that the technology will dramatically reduce jobs in the next year.

“For the most part, AI is going to do great stuff for mankind, like tractors did, like fertilizers did, like vaccines did,” he said. “You know maybe one day we’ll be working less hard but having wonderful lives.”

Dimon added that AI still needs proper regulation to mitigate the downside risks, just like other innovations throughout history.

He also repeated his earlier warning that AI will eliminate jobs, but urged people to focus on uniquely human skills like critical thinking, emotional intelligence, and communication.

If AI sweeps through the economy so quickly that workers can’t adapt to new roles in time, Dimon suggested the public sector and private sector have roles to play.

“We—government and we the companies, society—should look at how do we phase it in a way that we don’t damage a lot of people,” he explained. “We should have done a little bit more on trade assistance years ago when you had a town that got damaged by the closure of a plant. And that you can do: you can retrain people, relocate people, income assistance, early retirement.”

Meanwhile, AI is also creating jobs in the near term as new infrastructure requires more construction and fiber optics, he pointed out.

The comments were his latest on AI in recent months. In November, Dimon predicted AI will help the developed world transition to a shorter workweek of just three and a half days sometime in the next 20-40 years.

And at the Fortune Most Powerful Women Summit in October, he said governments and companies must plan for an AI future to avoid a social backlash.

“It will eliminate jobs. People should stop sticking their heads in the sand,” he warned.



Source link

Continue Reading

Business

This pastor fills up arenas by not sugarcoating the Bible

Published

on



After Atlanta pastor Philip Anthony Mitchell stopped dwelling on growing his congregation about three years ago, its attendance surged. Now, lines packed with young adults snake outside 2819 Church, some arriving as early as 5:30 a.m. to secure a spot for Sunday worship.

Christian rap and contemporary music blast like a block party as volunteers cheer into megaphones for around 6,000 weekly churchgoers — up from less than 200 in 2023, the church reports. Inside the sanctuary, the atmosphere turns serious. Many drawn to 2819’s riveting worship are hungry for Mitchell’s animated intensity and signature preaching: No sugarcoating the Bible.

After spirited prayers and songs leave many crying, Mitchell ambles onstage in his all-black uniform, sometimes in quiet contemplation or tears, before launching into a fiery sermon. His messages, unpolished and laden with challenges to revere God and live better, often spread quickly online. A recent prayer event drew far more people than State Farm Arena could handle, with many flying in.

Crying, shouting, storming across the platform and punching the air, Mitchell preaches with his whole body — and an urgency to bring people to faith before they die or what he calls Jesus’ impending return to Earth.

“It is life or death for me,” Mitchell told The Associated Press, comparing preaching to the front lines of war. “There are souls that are hanging in the balance. … I think about the fact that in that room somebody might hear the Gospel, and that might be their last opportunity.”

The church — whose name references Matthew 28:19, a Bible verse commanding believers to go “make disciples of all the nations” — is nondenominational and theologically conservative, with beliefs opposing abortion and in support of marriage only between a man and a woman.

The congregation’s growth has attracted people of many races and ages, but it’s predominantly young Black adults. Their youth is notable since Americans ages 18 to 24 are less likely than older adults to identify as Christian or attend religious services regularly, according to Pew Research Center.

Sharp sermons and moving worship

Warren Bird, an expert on fast-growing churches, believes the right leader is key to a church’s growth — along with God’s help — and described Mitchell as “speaking a language” that connects with young people who other pastors haven’t reached.

Churchgoers say Mitchell’s message resonates because he carefully walks them through scripture and talks candidly about his spiritual transformation, including his past dealing drugs, paying for abortions and attempting suicide.

“I’m still a little rough around the edges, right? I still got a little hood in me,” said Mitchell, who still speaks with a regional New York accent.

Many at 2819 want more than motivational speeches and say Mitchell’s sermons are counterweights to the feel-good American preaching he criticizes.

“I’m preaching without watering that down, without filtering out things that we think might be too controversial,” said Mitchell, who wants people to mature spiritually and insists they can’t deal with sin and its consequences without Jesus.

“I think that there is a generation that is gravitating towards that authenticity and truth,” he said. “As a result of that, we are seeing lives being radically transformed.”

Christian podcaster Megan Ashley said she brought a friend to 2819 who had stepped away from her faith, and Mitchell had an impact. The friend told Ashley, “When he speaks, I believe him.”

The tougher messages might hurt some people’s feelings, said Donovan Logan, 23.

“But that’s what it’s supposed to do. If you don’t come to church and want to change, then that’s not the church you’re supposed to be going to,” Logan said.

Elijah McCord, 22, said Mitchell’s sermons about sin touch on what’s happening around him in Atlanta, and Mitchell’s story shows that “there’s life in what God has commanded.” He also values Mitchell’s pleadings to wait until marriage to have sex.

“He biblically talks about sin and repentance and how there’s actually hope in the Gospel,” McCord said.

Churchgoers say 2819’s draw goes beyond Mitchell. It’s the entire worship experience.

Passing the dancing greeters, the Sunday crowd enters the dark auditorium. It’s permeated with prayer and bold instrumental music before the service, which 2819 calls a gathering, officially begins, with hands already lifted amid shouts of praise. Tissue boxes sit at the end of aisles, ready to aid those moved to tears.

“The worship is crazy. The Holy Spirit is just there. Like, tangible presence. You feel it!” said Desirae Dominguez, 24.

Mitchell feels ‘ill-equipped’ to lead 2819

Mitchell spent 10 years preaching, racking up unfruitful notes from church growth conferences, and eventually started struggling with depression. During that time, he took a transformative trip to Israel where he said encounters with God and other Christians changed him. Then, in 2023, he changed the church’s name to 2819.

Mitchell, who has spent three years preaching just from the Book of Matthew alone, said God told him to preach without bringing prepared notes onstage. Although he attended Bible college, he sometimes doubts himself because of his past.

“I shed a lot of tears because I feel often ill-equipped, undeserving,” said Mitchell. “I would not have called me if I was God to steward something like this, and sometimes I don’t know why my preaching is reaching (people). … I’m still shocked myself.”

When preparing to preach, “I’m thinking about the brokenness of the people in the room, the troubled marriages, the one who is suicidal. I’m thinking about the young lady who’s battling crippling insecurities and don’t know that she has a father up there that loves her more than any man she’s going to find down here.”

When not preaching, Mitchell’s demeanor is quieter. He and his staff are “here to serve,” he often says.

His large online platform exposes him and sometimes his family to public critique, pushback, and even threats. Some accuse him of self-righteousness or say he’s too harsh. He also issued a public apology earlier this year for comments in a sermon about obeying authority that were seen as dismissive of police brutality.

At times, he says he is deeply affected by criticism and said he repents for some of what critics decried. But Mitchell also finds solace in better understanding Jesus by enduring it.

Staff constantly adjusts for growth

The church recently moved into its own building, having outgrown the charter school where they held the services, and added a third one. On the first two Sundays at the new location, they added an impromptu fourth gathering because so many people came.

The staff faced similar conundrums at Access, the church’s October prayer event that drew an estimated 40,000 people. State Farm Arena was filled to capacity, as was an overflow space in a nearby convention center, leaving thousands outside, the church reported.

“We’re constantly tinkering. We’re constantly fixing things,” said Tatjuana Phillips, 2819’s ministries director.

Logistical challenges, such as packed parking lots and swamped staff, are common at fast-growing churches, said Bird, the church growth expert.

Despite its size, the church encourages community through its small groups, called “squads,” that give about 1,700 people a place to discuss sermons and support each other’s personal growth. Staff also engage with about 75,000 people weekly who watch gatherings online.

The long lines also yield friendships. Ashley Grimes, 35, said that’s where she’s “met so many brothers and sisters in Christ that I now get to do life with.”

Many of those new friends can be found shuffling into the church’s auditorium on Sundays while volunteers, called servant leaders, pray over each seat before Mitchell preaches.

On a recent Sunday, Mitchell told the crowd that they can turn to Jesus regardless of what they’ve done. It worked for him. God, he said, “used failure to transform my life.”



Source link

Continue Reading

Trending

Copyright © Miami Select.