From Zulily’s huge exit to massive VC financings to startups ranging from Warby Parker to Quirky, 2013 has been quite an active year for venture activity in the Internet eCommerce sector. Earlier this fall, Upfront Ventures investor Greg Bettinelli commented on the continued appeal of eCommerce tech to startups and the investors backing them:
“Why bother” building a company in/around eCommerce? That is the easiest question – the answer is…in the US alone online sales will grow about 15% increase this year and over the next four years will grow from ~$260 billion to this year to ~$370 billion in 2017. It is very early and many new companies will play large roles in the future of ecommerce and at the same time those playing leading roles now will play even larger roles in the future.”
With eCommerce venture capital financing going strong and some ecommerce IPO candidates in the mix for 2014, we wanted to highlight a few of the most active venture investors in the Internet eCommerce space this year as well as some of the largest venture-backed financings and exits using the interactive “Rankings” feature on CB Insights. The data below:
Continue reading “The Year in eCommerce VC: The Most Active Investors, Largest Deals and Top Exits of 2013” »
The market for cloud computing infrastructure-as-a-service is heating up. Ranging from Amazon Web Services and Verizon Terremark to a host of smaller startups, IaaS providers aim to deliver hosted, on-demand, scalable infrastructure resources (server, storage, and network infrastructure) to facilitate computing, storage and connectivity.
In our earlier research, we looked into deal activity trends around platform-as-a-service (PaaS) startups in the cloud computing industry. And while the PaaS ecosystem is seeing a decline in venture funding amid growing M&A consolidation, deal activity to the cloud computing category known as Infrastructure-as-a-Service (IaaS) has seen a steady increase. PaaS offerings differ from those of IaaS in a significant way. Whereas PaaS companies give control of both underlying infrastructure resources and the application development platform to the customer, IaaS vendors manage only the underlying infrastructure level.
IaaS adoption is growing as enterprises increasingly turn to a cloud-based IT model to reduce their cost and time expenditures. The sector’s fast-growing demand and increasing competitive market dynamics (as evident by the number of new players entering the market and shift in market concentration) is gaining interest from venture investors.
Continue reading “Venture Capital Deal Activity to Competitive Infrastructure-as-a-Service (IaaS) Market Grows 50%” »
At the moment, Andreessen Horowitz is among the most prolific venture capital investors in the tech ecosystem. Just in the past eight days, the venture firm has announced six deals covering everything from bitcoin to crowdfunding to digital health. And the bets have often been on the larger side in terms of dollars invested. In what is the largest bitcoin deal to-date, the firm led a $25M Series B deal to Coinbase then followed it up with an even bigger bet on virtual reality, leading a $75M investment into Oculus VR.
With rumors that Andreessen Horowitz’s fourth fund may be around the corner, we wanted to take a look at the size of the firm’s deals by stage over the past few years and how they compared to those of a couple other mega venture funds. The data, in full, below.
Continue reading “Among Mega Venture Funds, Andreessen Horowitz Writes Larger Checks” »
When Groupon went public in 2011, excitement was abound that the “unicorn” exit would be the beginning of a startup and venture capital renaissance in Illinois and even the larger midwest. Alas, that did not happen but that doesn’t mean there is not growing activity in the area. Specifically, we wanted to analyze the early stage investors who are actively investing in midwest companies and assess them based on their ability to get their portfolio companies follow-on financing.
Continue reading “The Top Early-Stage Venture Capital Investors in Midwest Tech Startups by Follow-on Investment Rates” »
Last week we shared some high level insights we have gleaned from the data on over 1 million apps in the Apple iTunes App Store that we actively track. This week, we wanted to share how we analyze the data at an application level to help our customers discover emerging apps and publishers.
To achieve our goal of surfacing the most interesting apps and publishers, we have developed various algorithms that analyze the App Store data continuously and alert us when an app, for example, shows significant upward or downward momentum in its ranking. For example, one of the algorithms looks at the historical mean rank of an app within its primary genre and alerts us when the rank falls out of the range of a few standard deviations of this mean. To understand the rationale behind the algorithm, we need to understand the dynamics of the rankings. The following graph shows the distribution density of absolute daily changes in rank for all apps on the App Store.
Continue reading “Identifying the Hottest Startups in the iTunes App Store Using Mobile Data Analytics” »
Kleiner Perkins Caufield & Byers is among the most venerated venture capital firms on Sand Hill Road, celebrated for early bets on Amazon, Google and EA among others. But is KPCB now on the ropes? Sarah Lacy and Michael Carney of Pando Daily stirred the pot last week, writing that noted venture partner John Doerr has taken it upon himself to resurrect the firm that once ruled Silicon Valley. From Lacy’s post:
“Kleiner put some wins on the board in 2013, but none were of the headline-grabbing, firm-making variety. To be clear: Kleiner is doing fine, particularly compared to most venture firms. It’s just not doing Kleiner-good.”
Given the recent buzz over the state of the union at KPCB, we wanted to analyze some high-level trends and data around Kleiner’s recent tech investments, including a breakdown of when the firm tends to first invest and its current Tech IPO Pipeline portfolio.
Continue reading “Is Kleiner Perkins Caufield & Byers Getting Its Mojo Back?” »
With massive financing and secondary market rounds becoming more frequent, so have billion dollar plus valuations. In fact, there are 26 U.S.-based private companies in the Tech IPO Pipeline that have raised a financing round at a valuation of $1 billion or more. It’s a figure sure to spark bubble chatter especially given that there have only been 45 billion dollar “unicorn” tech exits since 2004 through October 2013.
In other words, in the almost 10 years from 2014 till date, there have been 45 billion dollar exits and right now, there are 26 U.S.-based companies with valuations over $1 billion. Of course, things may not be frothy and “this time is different” might hold, but we wanted to dive into the numbers a bit to understand how today’s situation compares to the past.
While the biggest checks by venture capital investors have moved decidedly toward the enterprise and the exits are also increasingly enterprise, the billion dollar club of today is largely consumer tech companies. Of the 26 firms, 14 are companies building products used by everyday consumers including Pinterest, Uber, and Snapchat. The full list of tech IPO pipeline companies in the billion dollar valuation club is below.
Continue reading “There Are Too Many Private Billion-Dollar Consumer Tech Companies” »
Earlier this year, we remarked that Q3 2013 was the largest quarter ever in U.S. venture capital financing to the Mobile & Telecom sector. With massive financings to mobile-first companies including Uber, Flipboard and Snapchat to name a few and seed-stage activity heating up, there was no shortage of interest by VCs to invest in technologies and platforms across the mobile ecosystem this year. Bubba Murarka, a managing partner at Draper Fisher Jurvetson and former Facebook mobile product manager, captured some of the investor excitement and interest in mobile, writing in AllThingsD that
“Mobile is the single-biggest secular technology platform shift of our time. It’s so big, it bears repeating, and for entrepreneurs (and investors like me), presents edge-of-our-seats opportunities waiting to be unlocked.”
Given the outgrowth of mobile interest and investments in 2013, we wanted to highlight a few of the most active venture investors on the mobile front this year as well as some of the largest venture-backed financings and exits. The data below:
Continue reading “The Year in Mobile VC: The Most Active Venture Capital Investors, Largest Financings and Top Exits of 2013” »
We currently track over 1 million apps in the Apple iTunes App Store across 23 primary genres in 155 countries. We will soon be integrating mobile app data, metrics and analytics into CB Insights to help you discover emerging apps and publishers and understand mobile trends. We’ll be peeling back the curtain on this data over time, but we wanted to kick off things by sharing some interesting insights we have gleaned from the data we have collected so far. As we collect more longitudinal data on mobile apps, we will revisit some of our hypotheses below to see if they hold. Note: The analysis below only considers the US market.
Continue reading “Understanding Mobile App Stickiness” »
As the year quickly comes to an end, we wanted to take a look at a few of the top venture-backed tech exits of 2013 as measured by “value creation”. Specifically, we examined the top 15 IPO or M&A exits with a disclosed exit valuation at or over $100M based on their valuation (real or rumored) at time of exit and compared to the amount of financing they’d received prior to exit.
Analyzing value creation or capital efficiency is helpful in understanding Selection Aptitude in our LP-focused Investor Mosaic models. Selection Aptitude measures the ability of investors to source and ultimately select high quality investments and then shepherd them to favorable outcomes.
Below are some high-level trends and data observed among the top 15 U.S.-based tech exits calculated by value creation including the sectors they operate in and their geographies. While the typical 2014 Tech IPO Pipeline company has raised over $100 million in financing, the list below are companies who were judicious in raising financing raising average of $33 million prior to exit.
Continue reading “The Most Capital Efficient Venture Capital-Backed Tech Exits of 2013” »