B Capital closed a $2.1b fund – what’s next?

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Hello reader,

I’ve mentioned in previous newsletters that if I ever founded a company, I’d do it in an essential industry like food or healthcare. To me, it just makes sense – people will need these regardless of what’s happening in the global economy.

That appears to be B Capital’s approach as well, with its focus on investing in the enterprise, fintech, and healthcare sectors. Read on to find out more about the firm’s plans to navigate the tech winter.

Today we look at:

• B Capital’s plan of action during the downturn
• The series A round of a Thai mental health startup
• Other newsy highlights such as Zoom laying off 15% of its global headcount and Softbank’s continuing tough results

Premium summary

How B Capital plans to deploy its powder

Image credit: Timmy Loen

How does one spend US$2.1 billion?

In writing and reading articles about tech firms all day long, I’ve become somewhat desensitized by all the big-money M&As and funding rounds. A US$500,000 pre-series A, for example, barely registers as notable or newsworthy. But that’s life-changing money when it comes to the average Joe.

That said, B Capital has big plans for its US$2.1 billion fund, as well as advice for founders currently battling economic headwinds.

• B for B: With its latest growth fund, B Capital is focusing on financing startups in their series B funding stage or later. Co-founder and managing partner Raj Ganguly says that companies in these stages offer better risk-adjusted returns.
• Resilient to change: The VC focuses on the enterprise, fintech, and healthcare industries as, according to Ganguly, “these sectors are likely to be more resilient as they address the opportunities and challenges presented during the economic downturn.”
• Don’t spend indiscriminately: With the ongoing headwinds, Ganguly advises startups to keep an eye on their expenses and to prioritize activities that “increase the bottom line and minimize the cash burn rate.”

Read more: Recession Run: B Capital’s $2.1b plan for the downturn

Startup spotlight

Money for mental health in Thailand

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