The On-Demand Report
A data-driven review of U.S. financing activity and trends
in on-demand mobile services.
The on-demand economy is booming. In collaboration with the On-Demand
Conference, this in-depth report analyzes the funding activity to on-demand mobile startups including overall funding, deal size trends, the most active venture capital investors & much more. By definition, on-demand mobile services covered in this report cover U.S.-based or U.S.-operating companies that aggregate demand on mobile devices and applications but fulfill that demand through offline services.
For all of the findings, download the entire report. It’s free.
ON-DEMAND EVERYTHING: FUNDING HITS $9.4B SINCE 2010
Investment activity in on-demand mobile services rose 514% YoY to hit $4.12B in 2014. A spate of huge funding rounds including to Uber and Lyft have lifted funding in just the first four months of 2015 to $3.78B across just under half the deals tracked in 2014.
UBER IS A JUGGERNAUT: HOW MUCH OF ON-DEMAND FUNDING HAS GONE TO UBER?
Since the start of 2010, on-demand mobile startups (minus Uber) have raised $3.89B across more than 250 deals. On a year-over-year basis, funding to on-demand companies jumped 316% in 2014. At the current run rate, 2015 is on pace for another funding record that could more than double 2014’s total.
The success of Uber has had a large impact on the rise of the greater on-demand economy. And Uber has had an outsize impact on funding too – Uber raised 39% more funding than all other on-demand services combined in 2014.
ON-DEMAND SEED DEAL SHARE HITS FIVE-YEAR LOW IN 2014
In 2010, almost 7 of every 10 deals in the on-demand economy came at the Seed/Angel stage. In 2014, Seed/Angel deal share took 31% of deals. As on-demand companies attract follow-on funding, Series B deal share hit a five-year high in 2014. Mid-stage deals (Series B/Series C) took a combined 29% of deals last year.
ON-DEMAND DEAL SIZES BLOW PAST TYPICAL MOBILE DEALS
On-demand mobile startups have seen larger checks than the average mobile software deal size – most notably at the Series A and Series B stages. In 2015, a host of $30M+ deals have spiked the average on-demand Series B while average Series B deal sizes in mobile have stood at $15.3M.
INVESTORS IN THE ON-DEMAND ECONOMY INCREASE 14X FROM 2010
In 2010, there were under 20 VC investors that had done a deal in on-demand mobile services. By the end of April 2015, that figure had risen to 198. The business social graph below highlights the rapid growth in investors.
SV ANGEL, ANDREESSEN HOROWITZ, FIRST ROUND CAPITAL ARE MOST ACTIVE
SV Angel has been the most active VC in on-demand startups over the past five years. Andreessen Horowitz is the second most active, investing in companies like Caviar, Lyft and Instacart. First Round Capital rounded out the top three. For a full stage breakdown, download the full report.
The On-Demand Report highlights funding trends as well as top investors, the most well-funded startups and more for the booming market of on-demand mobile services. To receive the On-Demand Report free, sign up by entering your business email address in the form below.