Start-Ups Hedging Their Bets On Online-Gambling Legislation
Venture-backed start-ups operating in the three most popular forms of online gambling - poker, horse racing and sports betting – stand to see major impacts from proposals winding their way through Congress that could legalize certain types of Web-based betting. While the start-ups are keeping a close eye on the bills’ progress – and in some cases positioning themselves for possible major changes – most believe that any new laws won’t be enacted for at least another year, and possibly longer. Investors are keeping their distance from the discussion. Requests to six venture capitalists for comment about the proposed legislation were either declined or never

Canopy Financial Allegedly Falsified Financial Statements
Canopy Financial Inc. Chief Executive Vik Kashyap said he is stepping down from the helm of the troubled health care banking services company amid a federal criminal investigation and reports that the company had falsified financial statements. Citing “multiple sources,” TechCrunch reported Tuesday that Canopy had allegedly falsified financial statements, including forging audited statements with letterhead from auditing firm KPMG. Potential lawsuits are being considered by at least one investor, TechCrunch reported. The Federal Bureau of Investigation is conducting a criminal investigation in connection with the company, Inc. magazine reported Wednesday. No arr

With Boston Opportunities Beckoning, Firm Shifts Focus
The departure of a key investor can be unsettling for a venture firm. But sometimes it provides an opportunity to change focus. Take Canada-based Summerhill Venture Partners, for example. Following the July departure of David McCarthy from its Toronto office, the firm is on the hunt for a new general partner to work out of its Boston office. The firm is currently in talks with several people about the position and expects to add a new partner by the beginning of the year to focus on wireless, IT and digital media opportunities in the Boston area, Gary Rubinoff, one of its managing directors, told VentureWire. Summerhill has

The Daily Start-Up: Canopy Under The Cover Of Trouble?
This morning’s roundup of the latest venture capital news and analysis across the Web: Art by Mike Lucas The Year Of The Scandal - 2009 could officially be known as the year of the scandal, from Madoff, Stanford and Rajaratnam to the New York pay-to-play kerfuffle. Venture capitalists have been far from exempt, from the controversy surrounding Skype to the allegations surroundi

Numbers Games: Putting A Price On Twitter, Facebook and LinkedIn
What’s Twitter Inc. worth? Venture investors valued the social networking start-up at $1.13 billion in its most recent financing round in September. Some holders of common stock think it’s worth even more – $1.3 billion. But NYPPEX LLC, a Greenwich, Conn.-based firm that advises buyers and sellers of private company shares on the secondary market, pegs Twitter’s worth at $474 million based on its paltry revenue. And institutional buyers want a big discount, valuing the company at $135 million. NYPPEX, which includes these valuations in a report it is releasing to clients Wednesday, also believes