In October, Unreasonable Group launched a co-investment club for accredited investors to focus on Unreasonable alumni.
Called Unreasonable Collective, the club recently made its first investment—part of a $32 million Series A round in foodtech venture Air Protein, which uses microbe technology to produce meat from elements in the air. (The company describes it as “air-based” meat).
Unreasonable Group runs multiple venture accelerator/mentorship programs for growth-stage social enterprises.
CEO and co-founder Lisa Dyson participated in the 2017 Unreasonable Impact Americas program, a partnership between Unreasonable Group and Barclays aimed at backing growth-stage businesses likely to create new jobs in a green economy.
Diverse Investors and Founders
The idea behind the Collective is to create an avenue through which diverse investors can back impact enterprises run by diverse founders. At least 50% of members have to be women, people of color and/or identify as LGBTQ or from other diverse backgrounds. Companies are drawn from Unreasonable’s network of 250 alumni, called fellows.
According toPratibha Vuppuluri, head of investments at Unreasonable Group, one big differentiator from other investment groups is that all syndicates are led by established VC firms, thereby giving members an unusual chance to invest alongside heavy-hitters. For Air Protein, the syndicate was led by ADM Ventures, Barclays and GV (formerly Google Ventures).
“We asked ourselves, what if we had a way of building community-driven investing where individual accredited investors could invest along with large institutional groups,” says Vuppuluri. “It’s one of a few times an individual investor gets to invest alongside places like GV.”
According to Vuppuluri, that effort is helped by the variety of connections Unreasonable already has with VCs. Also, since they stay in close touch with alumni, the folks at Unreasonable presumably have a thorough handle on each venture’s viability.
Building a Community
To create a community and educate members about issues relevant to their investments, the Collective runs such programs as monthly master classes, usually devoted to topics related to investments. There’s going to be one soon on circular economy issues and how they relate to Air Protein. “Jeffersonian dinners”, held every second month, allow members to connect around relevant subjects, like robotics in agriculture. The upshot: “When it’s time to deploy capital, members feel they’re part of a crowd and feel free to ask questions,” says Vuppuluri.
Also, building on a process called “brain trusts”, through which Unreasonable companies meet every month with a group of experts to address key challenges, 12 to 15 Collective members convene with ventures to address relevant issues and get to know the CEOs better.
Anchor Members
Unreasonable always kicks off the process by finding VCs to back an investment. After that, the Collective showcases the deal to “anchor members”, who invest more than $250,000 and typically have expertise in particular areas. Then, the rest of the membership, which isn’t obligated to invest, sees the deal. Thus “when it comes down to individual members, the deal has gone through several levels to de-risk it,” says Vuppuluri. The minimum check size is $10,000.
As for the presentations, there’s a basic pitch and Q&A session for interested members and companies every month. After that, members have 10 days to evaluate the deal and ask more questions. There’s then a second call, with three more days to make a final decision. Members pay annual dues; there are no management fees.
So far, there are 45 members, with a waiting list of 75. According to Vuppuluri, the Collective has a few more food-related investments that members should be closing on soon.
Lisa Dyson
Hanh Nguyen
Protein from Carbon Dioxide
Berkeley, Cal.-based Air Protein aims to address the climate-harming effects of meat production. To that end, it uses hydrogenotrophs, which are single-cell microorganisms that can turn carbon dioxide into protein, according to the company. The process, which taps NASA research from the 1960s, mixes carbon dioxide, oxygen and nitrogen with water and mineral nutrients, operating somewhat in the way yogurt is produced. Then the company adds elements to make the substance feel and taste like chicken, steak and the like. “It will look like the standard meat you see on shelves today,” says Dyson.
According to Dyson, Air Protein will use the funding to expand R&D, product development and hiring.
TORONTO – Canada’s main stock index was down more than 200 points in late-morning trading, weighed down by losses in the technology, base metal and energy sectors, while U.S. stock markets also fell.
The S&P/TSX composite index was down 239.24 points at 22,749.04.
In New York, the Dow Jones industrial average was down 312.36 points at 40,443.39. The S&P 500 index was down 80.94 points at 5,422.47, while the Nasdaq composite was down 380.17 points at 16,747.49.
The Canadian dollar traded for 73.80 cents US compared with 74.00 cents US on Thursday.
The October crude oil contract was down US$1.07 at US$68.08 per barrel and the October natural gas contract was up less than a penny at US$2.26 per mmBTU.
The December gold contract was down US$2.10 at US$2,541.00 an ounce and the December copper contract was down four cents at US$4.10 a pound.
This report by The Canadian Press was first published Sept. 6, 2024.
TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in technology, financial and energy stocks, while U.S. stock markets also pushed higher.
The S&P/TSX composite index was up 171.41 points at 23,298.39.
In New York, the Dow Jones industrial average was up 278.37 points at 41,369.79. The S&P 500 index was up 38.17 points at 5,630.35, while the Nasdaq composite was up 177.15 points at 17,733.18.
The Canadian dollar traded for 74.19 cents US compared with 74.23 cents US on Wednesday.
The October crude oil contract was up US$1.75 at US$76.27 per barrel and the October natural gas contract was up less than a penny at US$2.10 per mmBTU.
The December gold contract was up US$18.70 at US$2,556.50 an ounce and the December copper contract was down less than a penny at US$4.22 a pound.
This report by The Canadian Press was first published Aug. 29, 2024.
The crypto market has recently experienced a significant downturn, mirroring broader risk asset sell-offs. Over the past week, Bitcoin’s price dropped by 24%, reaching $53,000, while Ethereum plummeted nearly a third to $2,340. Major altcoins also suffered, with Cardano down 27.7%, Solana 36.2%, Dogecoin 34.6%, XRP 23.1%, Shiba Inu 30.1%, and BNB 25.7%.
The severe downturn in the crypto market appears to be part of a broader flight to safety, triggered by disappointing economic data. A worse-than-expected unemployment report on Friday marked the beginning of a technical recession, as defined by the Sahm Rule. This rule identifies a recession when the three-month average unemployment rate rises by at least half a percentage point from its lowest point in the past year.
Friday’s figures met this threshold, signaling an abrupt economic downshift. Consequently, investors sought safer assets, leading to declines in major stock indices: the S&P 500 dropped 2%, the Nasdaq 2.5%, and the Dow 1.5%. This trend continued into Monday with further sell-offs overseas.
The crypto market’s rapid decline raises questions about its role as either a speculative asset or a hedge against inflation and recession. Despite hopes that crypto could act as a risk hedge, the recent crash suggests it remains a speculative investment.
Since the downturn, the crypto market has seen its largest three-day sell-off in nearly a year, losing over $500 billion in market value. According to CoinGlass data, this bloodbath wiped out more than $1 billion in leveraged positions within the last 24 hours, including $365 million in Bitcoin and $348 million in Ether.
Khushboo Khullar of Lightning Ventures, speaking to Bloomberg, argued that the crypto sell-off is part of a broader liquidity panic as traders rush to cover margin calls. Khullar views this as a temporary sell-off, presenting a potential buying opportunity.
Josh Gilbert, an eToro market analyst, supports Khullar’s perspective, suggesting that the expected Federal Reserve rate cuts could benefit crypto assets. “Crypto assets have sold off, but many investors will see an opportunity. We see Federal Reserve rate cuts, which are now likely to come sharper than expected, as hugely positive for crypto assets,” Gilbert told Coindesk.
Despite the recent volatility, crypto continues to make strides toward mainstream acceptance. Notably, Morgan Stanley will allow its advisors to offer Bitcoin ETFs starting Wednesday. This follows more than half a year after the introduction of the first Bitcoin ETF. The investment bank will enable over 15,000 of its financial advisors to sell BlackRock’s IBIT and Fidelity’s FBTC. This move is seen as a significant step toward the “mainstreamization” of crypto, given the lengthy regulatory and company processes in major investment banks.
The recent crypto market downturn highlights its volatility and the broader economic concerns affecting all risk assets. While some analysts see the current situation as a temporary sell-off and a buying opportunity, others caution against the speculative nature of crypto. As the market evolves, its role as a mainstream alternative asset continues to grow, marked by increasing institutional acceptance and new investment opportunities.
