2www.cbinsights.com 2www.cbinsights.com @cbinsights Backed by
the National Science Foundation, CB Insights uses data science and machine learning to help our customers predict what’s next—their next customer, their next investment, the next market they should attack, or the next company they should acquire. Cisco, Salesforce, Castrol, Gartner, as well as top tier VCs including, NEA, Upfront Ventures, RRE, and FirstMark Capital rely on CB Insights to make decisions based on data, not decibels. About CB Insights A unique combination of data science and machine learning to help you make data-driven decisions ”A detailed discussion of data collection and how the company parses them is written by CB Insights’ data scientists; it convincingly tells the story of scalability and accuracy for what they call “The Cruncher.” Forbes article “Predictive Analytics And Novel Visualization Draw Customers To 'Must Have' Data” published April 8, 2015
3www.cbinsights.com 3www.cbinsights.com @cbinsights See what
other customers have to say at http://www.cbinsights.com/customer-love “Designed by a VC insider who truly knows the space and understands end-user needs.” Greg Bae Investments & Biz Dev Comcast Ventures Jack Leeney Portfolio Manager Telefonica Ventures “We're using CB Insights at Salesforce Ventures to analyze industry trends that are relevant to our strategy. It's helped improve our efficiency.” Matt Garratt Sr. Director, Corporate Development Salesforce Ventures “CB Insights provides our team with a holistic and thematic approach that really captures market activity….we've found CBI to have the best access for the most accurate market view.” “We have been looking for a tool that could give us the ability to track, research and identify investment opportunities. CB Insights provides this simply and in a simple, easy to use interface. The depth of information that we get is exactly what we need. Great product.” Jonathan Tudor Ventures Director Castrol innoVentures “CB Insights perfectly illustrates what I expect today from such online services to stay tuned to our fast-changing Tech Landscape. Accurate and up-to-date data mash-ups, intuitive UIs, smart data visualization capabilities and direct API access… all packaged together with straightforward pricing.” Simon Mencarelli Senior Manager, Strategic Planning Dassault Systems “CB Insights' intuitive user interface, analytical capabilities, and detailed investment information create a very powerful tool for our team's research needs.” Nate D’Anna Corporate Development Cisco A few of our happy customers The most publicly reference-able customers of anyone in the industry
4www.cbinsights.com 4@cbinsights “According to CB
Insights…” From the NY Times to Bloomberg, CB Insights data is used by hundreds of leading media outlets every week “CB Insights put out an intriguing infographic in which they analyzed the most capital efficient unicorns. That is, the startups with the highest ratio of investment to current estimated valuation.” See our latest media mentions http://www.cbinsights.com/press “London & Partners, working with data from CB Insights, says that money- transfer startup WorldRemit raised the most of any other company in Q1, a $100 million round in February” “The stakes for both exchanges are high. According to the research firm CB Insights, about 588 privately backed companies have valuations of more than $100 million, meaning that they are potential candidates for going public sometime in the next several years.” “Last year, more than $100 million flowed into U.S. drone start-ups, according to CB Insights, double 2013 levels” “About 33 Dallas-based tech companies have been acquired since 2012, including the enterprise cloud company SoftLayer, which was bought by IBM in 2013 for $2 billion, according to data from CB Insights. ”
7www.cbinsights.com 7@cbinsights Many smart folks
say things are bubbly From investors to journalists, the cries of a bubble have intensified as of late “Now there is a clear consensus that we are witnessing our second tech bubble in 15 years. What is uncertain is how much further the bubble can expand and what might pop it. In our view the current bubble is an echo of the previous tech bubble, but with fewer large capitalization stocks and much less public enthusiasm. Some indications that we are pretty far along include: • The rejection of conventional valuation methods; • Short-sellers forced to cover due to intolerable mark-to-market losses; and • Huge first day IPO pops for companies that have done little more than use the right buzzwords and attract the right venture capital.” David Einhorn, Greenlight Capital “I think there’s two things are going on: One, there’s quite a bit of capital availability out there, and if you look at how low-interest rates are, and what are the alternatives to invest capital and get return, that causes asset prices to rise. The stock market’s up, as well. You know, this is a cyclical industry, and when times get good, they get really good. Last time we saw that was 1999 and many of the people at this conference might not have been paying attention, because they were in high school. But money is definitely freer flowing today than it was three or four years ago.” Bill Gurley, Benchmark Capital
8www.cbinsights.com 8@cbinsights “For me a
bubble is simple, it’s when people are paying significantly higher prices for any asset class that is in great excess of the underlying value of that asset. (One area that is subject to that definition right now is) late-stage financing of tech companies of companies like ZocDoc, or maybe even Dropbox, AirBnB and Uber. I’m not arguing (late-stage investors) are crazy, I’m arguing they’re irrational.” Mark Suster, Upfront Ventures As with so many of the telltale signs of a bubble, I have seen this before. When times are so good that executives are willing to disregard the difference between ethical and unctuous behavior, it’s just one sign that the end, relatively speaking, is near. It’s not the only sign. The over-supply of journalism jobs covering the technology industry, for example, is a good indicator. Adam Lashinksy, Fortune “It’s been a steady sequence of very large rounds. It means we are in bubble territory…No one wants to say because nobody wants to break it. Everybody wants to cash out before its over. …We are seeing expansion of valuation even from the seed stage all the way up…(There is) desperation to not miss out on what will be the next big thing.” George Zachary, CRV Many smart folks say things are bubbly From investors to journalists, the cries of a bubble have intensified as of late
15www.cbinsights.com 15@cbinsights What’s a unicorn?
Unfortunately, this term was adopted by our industry. I apologize. Private companies valued at over $1B. Generally refers to companies in high-growth sectors of tech, life sciences and energy. But mostly tech. Unicorn exits are private companies which have exited for over $1 billion via M&A or IPO.
28www.cbinsights.com 28@cbinsights Find & stalk
smart money investors Monitor strategies and deals of investors and uncover new sources of dealflow in your areas of focus Common refrain from some VCs is that many of these investors are “dumb money”. Of course, that also conveniently ignores returns of most VCs.
38www.cbinsights.com 38@cbinsights Source: Disrupting Wells
Fargo, Citi and Bank of America The old guard are waking up Tech is not just attacking tech Goldman Sachs issues this ominous sounding report about an “expanding class of competitors to capture profit pools long controlled by banks.” “Silicon Valley is coming. There are hundreds of startups with a lot of brains and money working on various alternatives to traditional banking. The ones you read about most are in the lending business, whereby the firms can lend to individuals and small businesses very quickly and – these entities believe – effectively by using Big Data to enhance credit underwriting. They are very good at reducing the “pain points” in that they can make loans in minutes, which might take banks weeks.” Jamie Dimon, Chairman and CEO JP Morgan Chase & Co.
45www.cbinsights.com 45@cbinsights A bubble requires
rapid expansion AND contraction And the private markets are seeing the expansion happen. There is no public scorecard to force the contraction. Some investors will lose money on these bets. And they’ll be replaced by new investors who dismiss “those guys” as dumb. The opaqueness of the private markets let you bury the dead very quietly.