Toronto startups attracted the most venture capital financing in Canada for the first half of 2015, receiving $157M of the total $360M. Toronto and Waterloo/Kitchener combined captured 60% of all VC financing. Seed and Series A rounds saw strong activity with average deals of $1.1M and $5.7M respectively. Analytics was the top technology trend receiving investment, as storing, organizing and analyzing massive datasets has become important. While consumer startups receive media attention, 71% of VC dollars were actually invested in B2B startups, with many of the largest rounds going to unknown B2B companies.
Every year Upfront Ventures surveys our peer group for their sentiment on the fund raising environment, burn rates, areas of technology interest and the year ahead. This report summarizes the views as of January 2017.
Upfront Ventures surveys VC firms every year to gauge their views on technology markets. This year we asked people their views about cryptocurrencies & blockchain.
The seed stage of the venture capital industry went through a boom cycle from 2006-2014 but has lately seen a sharp decline. What's happening? Is it temporary or are their structural problems? This deck answers that question.
The latest collection of things we (Atomico) found interesting and important in tech and VC land, but that didn’t necessarily get the attention they deserve. We think of them as our hidden little gems. We’ll add to the collection over time, so bookmark the page and keep coming back for updates or to dig into the archive.
Global Technology Trends & Startup Hubs 2015Bernard Moon
Provides an overview of general technology trends, global venture capital trends, and startup trends around the world. Snapshots of the top 10 startup hubs in the world: Silicon Valley, NYC, London, Stockholm, Berlin, Tel Aviv, Beijing, Seoul, Boston, and Los Angeles.
Every year Upfront Ventures surveys our peer group for their sentiment on the fund raising environment, burn rates, areas of technology interest and the year ahead. This report summarizes the views as of January 2017.
Upfront Ventures surveys VC firms every year to gauge their views on technology markets. This year we asked people their views about cryptocurrencies & blockchain.
The seed stage of the venture capital industry went through a boom cycle from 2006-2014 but has lately seen a sharp decline. What's happening? Is it temporary or are their structural problems? This deck answers that question.
The latest collection of things we (Atomico) found interesting and important in tech and VC land, but that didn’t necessarily get the attention they deserve. We think of them as our hidden little gems. We’ll add to the collection over time, so bookmark the page and keep coming back for updates or to dig into the archive.
Global Technology Trends & Startup Hubs 2015Bernard Moon
Provides an overview of general technology trends, global venture capital trends, and startup trends around the world. Snapshots of the top 10 startup hubs in the world: Silicon Valley, NYC, London, Stockholm, Berlin, Tel Aviv, Beijing, Seoul, Boston, and Los Angeles.
A Seed/Startup Venture Fund & Collaboration Community working with, supporting and compensating Incubators, Universities and Economic Development Agencies
Global Technology Trends & Top Ten Startup Hubs 2017Bernard Moon
Update report that provides an overview of general technology trends, global venture capital trends, and startup trends around the world. Snapshots of the top 10 startup hubs in the world: Silicon Valley, NYC, London, Stockholm, Shanghai, Tel Aviv, Beijing, Seoul, Boston, and Los Angeles.
Summary of findings
2018 VC-backed fintech deals and funding set an annual record: In 2018, - VC-backed fintech companies raised $39.57B across 1,707 deals globally. Deals were up 15% year-over-year while funding surged 120% on the back of 52 mega-rounds ($100M+) worth $24.88B combined.
Fintech is happening on global scale with deals outside of core markets (US, UK, and China) accounting for 39% of deals: Fintech deal hubs are starting to emerge globally. The count of unique fintech startups raising funding topped an annual high of 1,463 companies, and the unique number of investors reached 2,745 boosted by an influx of corporate investors.
Early-stage deals, as a percentage, fell to a 5-year low as investors concentrated bets in perceived winners: Global seed and Series A fintech deals grew 5% on an annual basis in 2018, but fell as a percentage of total deals to 57%. US early-stage deals were flat YOY as investors concentrated their bets in established fintech unicorns.
There are 39 VC-backed fintech unicorns worth a combined $147.37B: Q4'18 saw five new unicorns births (Plaid, Brex, Monzo, DevotedHealth, and Toss) and two in the first month of Q1’19 (N26 and Confluent). The cohort’s total valuation in 2018 was boosted by a record year for megarounds to existing unicorns, including Gusto and Robinhood, among others.
Silicon Valley Bank’s annual Startup Outlook survey provides insight into how startups in China, the US and UK are feeling about the year ahead. The 2016 report finds that while startups across the globe are eternally optimistic, they are preparing for a new reality.
Learn more about the Startup Outlook Report and view the US and UK reports at www.svb.com/IEO.
A look at the Venture Capital industry heading into 2020. Some have questioned whether the industry has a future. This deck does a detailed look at where the industry is and why the future of VC still looks bright.
...how quickly venture backed
technology companies market capitalization changed (grew) and whether there had
been a change in the “Time To Market Cap” during different periods of history. November 2014
Bessemer Venture Partners' is proud to share The State of the Cloud for 2017.
As the definitive guide to the biggest trends in the cloud industry, this year’s “State of the Cloud Report” includes:
1. A Look Back at 2016
- 2016 was a marquee year for a number of reasons. First, we all remember the rocky start in February where the Cloud Market dropped 35%
- Subsequently, rebounded back to normal levels and ended the year up +15%.
- The dip in the market had two main outcomes: First, it led to unprecedented amounts of M&A (4x more than any other year and 40% of the total cloud market cap of $300B) – and second, it led to the fewest number of cloud tech IPOs since the financial crisis.
- A combination of these factors has led to the highest quality backlog of private cloud companies in history. The top 100 private Cloud companies alone represent over $100B of private enterprise value.
2. We provide a deeper look into the three top questions every private cloud CEO should be discussing with his/her executive team
- How fast should I be growing?
- How much should I burn?
- How do I scale?
3. Bessemer’s 7 Predictions for 2017
- The year of human assisted AI
- APIs will serve as the backbone for a majority of software infrastructure
- Architect for infinite scale without infinite spend
- Mobile unlocks non-desk worker productivity
- NPS everything
- Diverse teams win
- The screenless software movement
A Seed/Startup Venture Fund & Collaboration Community working with, supporting and compensating Incubators, Universities and Economic Development Agencies
Global Technology Trends & Top Ten Startup Hubs 2017Bernard Moon
Update report that provides an overview of general technology trends, global venture capital trends, and startup trends around the world. Snapshots of the top 10 startup hubs in the world: Silicon Valley, NYC, London, Stockholm, Shanghai, Tel Aviv, Beijing, Seoul, Boston, and Los Angeles.
Summary of findings
2018 VC-backed fintech deals and funding set an annual record: In 2018, - VC-backed fintech companies raised $39.57B across 1,707 deals globally. Deals were up 15% year-over-year while funding surged 120% on the back of 52 mega-rounds ($100M+) worth $24.88B combined.
Fintech is happening on global scale with deals outside of core markets (US, UK, and China) accounting for 39% of deals: Fintech deal hubs are starting to emerge globally. The count of unique fintech startups raising funding topped an annual high of 1,463 companies, and the unique number of investors reached 2,745 boosted by an influx of corporate investors.
Early-stage deals, as a percentage, fell to a 5-year low as investors concentrated bets in perceived winners: Global seed and Series A fintech deals grew 5% on an annual basis in 2018, but fell as a percentage of total deals to 57%. US early-stage deals were flat YOY as investors concentrated their bets in established fintech unicorns.
There are 39 VC-backed fintech unicorns worth a combined $147.37B: Q4'18 saw five new unicorns births (Plaid, Brex, Monzo, DevotedHealth, and Toss) and two in the first month of Q1’19 (N26 and Confluent). The cohort’s total valuation in 2018 was boosted by a record year for megarounds to existing unicorns, including Gusto and Robinhood, among others.
Silicon Valley Bank’s annual Startup Outlook survey provides insight into how startups in China, the US and UK are feeling about the year ahead. The 2016 report finds that while startups across the globe are eternally optimistic, they are preparing for a new reality.
Learn more about the Startup Outlook Report and view the US and UK reports at www.svb.com/IEO.
A look at the Venture Capital industry heading into 2020. Some have questioned whether the industry has a future. This deck does a detailed look at where the industry is and why the future of VC still looks bright.
...how quickly venture backed
technology companies market capitalization changed (grew) and whether there had
been a change in the “Time To Market Cap” during different periods of history. November 2014
Bessemer Venture Partners' is proud to share The State of the Cloud for 2017.
As the definitive guide to the biggest trends in the cloud industry, this year’s “State of the Cloud Report” includes:
1. A Look Back at 2016
- 2016 was a marquee year for a number of reasons. First, we all remember the rocky start in February where the Cloud Market dropped 35%
- Subsequently, rebounded back to normal levels and ended the year up +15%.
- The dip in the market had two main outcomes: First, it led to unprecedented amounts of M&A (4x more than any other year and 40% of the total cloud market cap of $300B) – and second, it led to the fewest number of cloud tech IPOs since the financial crisis.
- A combination of these factors has led to the highest quality backlog of private cloud companies in history. The top 100 private Cloud companies alone represent over $100B of private enterprise value.
2. We provide a deeper look into the three top questions every private cloud CEO should be discussing with his/her executive team
- How fast should I be growing?
- How much should I burn?
- How do I scale?
3. Bessemer’s 7 Predictions for 2017
- The year of human assisted AI
- APIs will serve as the backbone for a majority of software infrastructure
- Architect for infinite scale without infinite spend
- Mobile unlocks non-desk worker productivity
- NPS everything
- Diverse teams win
- The screenless software movement
Event Report - Informatica Informatica World 2016Holger Mueller
Learn about theTop 3 Takeaways Constellation Research analyst Holger Mueller has distilled from Informatica Informatica World 2016, happening in San Francisco, May 23rd till 26th 2016.
Supply Chain Metrics That Matter: Semiconductors and Hard Disk Drives - 18 FE...Lora Cecere
Executive Overview
Supply chain leaders struggle to align corporate and supply chain strategy and drive improved performance. We term this difficult balancing act The Effective Frontier and explain it as the process of balancing growth, profitability, cycle and complexity within a company’s supply chain operations.
A supply chain is a complex system with increasing complexity. A major gap in many supply chain strategies is a nuanced understanding of supply chain potential when these elements are viewed together as a system.
The focus of this report is semiconductor and hard disk drive manufacturers. As seen in table 1, when it comes to supply chain performance, the industry is neither the best nor the worst. They fall squarely in the middle. While middle of the pack in operating margin, the industry has shown an increase in the cash-to-cash cycle and a decrease in inventory turns. With increasing complexity, the industry has struggled to maintain inventory turn performance over the period.
Companies further back in the supply chain have struggled to a higher degree to balance The Effective Frontier than those closer to usage. This is largely due to the bullwhip effect—the distortion of a demand signal as it gets passed downstream from trading partner to trading partner. The chemical industry manufacturers, like semiconductor & hard disk drive manufacturers, are three to five levels back in the supply chain. Comparing the results in table 1 for the two industries illustrates how much better the semiconductor & hard disk drive manufacturers have done in a similar orientation. Operating margin is comparable across the two, but the chemical industry has a higher cash-to-cash cycle level and almost a 50% lower inventory turns value.
Semiconductor and hard disk drive manufacturers have been successful in a challenging downstream position. Cost pressure from OEMS has not (as of yet) cut into margin, and growth levels have remained strong with the move to mobile. Inventory remains problematic with all six companies in this report, demonstrating increased DOI and decreased inventory turns, since the start of the century. Part of this is likely due to the lengthening of the global supply chain, while another part is partly due to rising product and process complexity, but it remains a concern.
Historically, the industry has made strong gains on productivity. An increasing move towards automation in the precision driven manufacturing environment is expected to continue the rise in revenue per employee performance.
In this report, we discuss the financial realities of the semiconductor and hard disk drive supply chain and offer recommendations for improvement.
Sustainability isn’t about the fuzzy “we care about people and the environment” statements any more. Consumers and analysts increasingly demand hard evidence to support your claims and hold you accountable for the actions of your suppliers. Are you doing enough?
Navigating Storage in a Cloudy EnvironmentHGST Storage
Steve Campbell, Chief Technology Officer at HGST, presents at Cloud Expo 2013 on the data center evolution, enterprise solid state drives, the future of data storage, and more.
The Black Swan Event: Funding in the time of Coronavirus with Mark Sustersaastr
It all begins with an idea. Maybe you want to launch a business. Maybe you want to turn a hobby into something more. Or maybe you have a creative project to share with the world. Whatever it is, the way you tell your story online can make all the difference.
A massive transformation is underway in the startup-funding ecosystem; the shift towards democratizing fundraising has meant that startups at every stage of the development cycle have greater access to capital than ever before. This new generation of fundraising has seen unprecedented growth of 167% in 2014, with an estimated global funding volume of $16.2billion (USD) rapidly proving to be a force capable of bridging the liquidity gap, and
reducing industry fragmentation for early stage startups.
The economic downturn of 2007 was a defining period in the fundraising ecosystem, and ultimately the marker responsible for changing the course of fundraising. Consequently, we have observed VC’s opting to de-risk their portfolios to later stage revenue generating firms, angels and super-angels are stepping in to fill the gaps where they are participating in much larger early-stage rounds, and finally, crowdfunding has seen explosive growth as an innovative new funding vehicle for very early stage startups and SMEs alike.
Tech Cocktail_2012 startup accelerator reportEugene Kim
20-page startup accelerator report that outlines five key factors for startups to consider when choosing an accelerator. Accelerators offer entrepreneurs a chance to spend several months intensely focused on their product and business – fueled by funding and mentorship, and often in shared office space – before pitching in front of investors at “demo day.”
Topics discussed include: Does location matter? Which programs are more hands-on? Which ones have the biggest networks? The report also includes a list of 70 accelerators around the country.
Marketplace unicorns valuations soar to $5.0 trillion since January 2020 as record levels of investment see the sector outpace the entire tech market. Speedinvest, Dealroom and Adevinta take a deep dive into the current and future state of digital marketplaces.
MDEC Fintech Conference - Keynote: Overview of Fintech in 2016iTrain
Managing Partner of Life.SREDA shares key numbers and trends of the Fintech scene for the first half of 2016.
Watch the keynote on youtube here: https://www.youtube.com/watch?v=u31ILlyAfuM
Slava Solodkiy is one of TOP 35 most influence fintech-persons in the world and TOP 100 fintech leaders in Asia.
Interested to get a fintech idea started but don't know how to start? Then join the FREE MDEC Fintech Masterclass on October 3-4. To enter just tell us about your Fintech idea!
Apply here: bit.ly/fintech-master
More information about the complete Fintech Bootcamp: www.itrain.com.my/fintech-bootcamp/
As current growth rates reach a new low, competition for the future is on the...SimCorp
As growth rates came to a standstill in 2015, we took stock of expectations for the future. Surveying firms worldwide, we discovered them to be optimistic about long-term prospects, and found the pursuit of future profits gathering pace.
A report providing an overview of the Financial Technology startup landscape, graphical trends and insights, and recent funding and exit events. Contact info@venturescanner.com to learn more!
Similar to H1 2015 Venture Capital Financing in Canada (20)
2. Toronto startups continue to lead the country,
attracting $157M (43%) out of $360M in H1 2015
Venture Capital Financing by City
(CAD $ Millions Invested)
Venture Capital Financing by City
(# of Companies Financed)
1
1
3
1
2
1
13
4
1
1
35
16
1
13
Burnaby
Calgary
Edmonton
Halifax
Mississauga
Moncton
Montreal
Ottawa
Quebec City
St. John
Toronto
Vancouver
Victoria
Waterloo/Kitchener
Toronto and Waterloo/Kitchener combined capture 60% ($220M) of all VC financing in H1 2015. This super-cluster
of talent and capital has the ability to compete on the world-stage alongside other major innovation hubs
Source: Crunchbase, Media Press Releases See slides 9 & 10 to understand the methodology
$17.0
$1.2
$9.4
$0.2
$4.0
$3.0
$36.7
$10.3
$2.5
$3.3
$157.2
$48.0
$4.5
$62.6
Burnaby
Calgary
Edmonton
Halifax
Mississauga
Moncton
Montreal
Ottawa
Quebec City
St. John
Toronto
Vancouver
Victoria
Waterloo/Kitchener
3. Seed and Series A rounds saw strong activity, with
the average round at $1.1M and $5.7M respectively
Despite rising valuations, Canadian financing opportunities still remain attractive. The average global seed
financing deal as of H1 2015 is estimated at $1.4M, 27% higher than the average seed round in Canada
Venture Capital Financing by Stage (CAD $ Millions Invested) Average Financing Per Round
Seed
Series A
Series B
Series C
Series D
$1.1M
$5.7M
$18M
$15M
$30M
Stage
Average
Financing
$45.0
$131.8
$90.0
$60.0
$30.0
Seed Series A Series B Series C Series D
Venture Capital Financing by Stage (# of Companies)
42
23
5 4 1
Seed Series A Series B Series C Series D
Source: Crunchbase, Media Press Releases, Prequin See slides 9 & 10 to understand the methodology
4. Analytics is hot – Storing, organizing, and driving
insights from massive datasets is big business
Trends driving this activity: 1) “Dumb” devices across all industries are coming online, 2) Online platforms can now
connect buyers with sellers at scale, and 3) Corporations do not want to change, creating disruptive opportunities
Source: Crunchbase, Media Press Releases
$63.4
$57.7
$48.9
$39.7 $37.1
$21.7 $20.5
$19.2
$14.1
$7.7 $7.0 $6.9
$5.1 $3.8 $2.7 $2.1 $1.2 $0.5 $0.5 $0.0
Venture Capital Financing by Technology Trend (CAD $ Millions Invested)
See slides 9 & 10 to understand the methodology
5. Venture Capital Financing by Technology Trend (Seed Stage Only, CAD $ Millions Invested)$7.8
$5.7
$5.0
$4.4
$3.4
$3.2 $3.1
$2.7 $2.7
$2.1
$1.7
$1.2 $1.2
$0.5 $0.4 $0.1
However, buzz words like mobile, cloud, and
analytics will fade as they become commoditized
Startups today have two options: To take an existing business model and copy it into a new vertical or geography
(fast growing stuff), or innovate and develop a product (or service) unlike anything that exists (the hard stuff)
Source: Crunchbase, Media Press Releases
This stuff is growing fast. We have figured out business
models that work and are leveraging them to build value
This stuff is becoming a commodity. All startups have cloud, analytics,
mobility, etc. Defining your startup this way does not derive value
This stuff is hard. We are just figuring it
out now. Only brightest survive here
See slides 9 & 10 to understand the methodology
6. 66% of startups focus on a specific industry, with
retail receiving the most attention in H1 2015
As the “Internet of Things” brings machines and equipment online, dinosaur industries like financial services,
government, health care, energy, and utilities will create large opportunities for startups to disrupt
Source: Crunchbase, Media Press Releases
% of Startups that received financing
in H1 2015 by focus
66%
34%
Focused on specific vertical
Not Vertical Specific
VC Financing by Vertical
(Canadian startups focused on a specific vertical, CAD $ Millions Invested)
$71.6
$39.7
$34.0
$11.0$8.9 $8.0 $6.0 $6.0 $5.7 $5.1 $3.7 $3.3 $2.5 $1.5 $1.2 $1.2 $0.9 $0.3 $0.2 $0.1 $0.0 $0.0 $0.0
See slides 9 & 10 to understand the methodology
7. 8.1%
0.0%
3.0%
0.0%
4.2%
18.8%
16.1%
2.8% 2.7%
0.6% 0.0%
33.9%
0.1% 0.0%
9.6%
2.1% 1.6%
0.7%
7.0%
5.2%
7.1% 6.7% 6.8%
10.5%
8.1%
12.7%
5.5%
3.2% 2.5%
20.3%
Hospitality &
Food
Agriculture Arts,
Entertainment,
Recreation
Construction Education Financial
Services
Government Health Care Manufacturing Metals, Mining,
Oil & Gas
Real Estate Retail Technology Utilities Others
VC Financing by Sector as a % of total GDP by Sector as a % of total
Capital is over indexing in retail, food and
hospitality while forgetting the “boring” industries
Startups have begun the attacking slow moving industries like Financial Services and Government Services, but
opportunities are still abundant. These “boring” industries make up 90% of Canada’s GDP and cannot be forgotten
Source: Crunchbase, Media Press Releases, Statistics Canada
Venture Capital Financing by Vertical Compared to GDP by Vertical
(Canadian startups focused on a specific vertical, % of total CAD $)
See slides 9 & 10 to understand the methodology
8. Despite consumer startups receiving lots of media
and fanfare, VC dollars are largely invested in B2B
7 out of the 10 largest financing rounds in H1 2015 were B2B including companies like MioVision, SecureKey
Technologies, Vidyard, and Bit Stew Systems. Many of these players are unknown to average Canadian
Source: Crunchbase, Media Press Releases
72%
28%
B2B B2C
% of B2B vs B2C Startups that
received financing in H1 2015
% of Venture Capital dollars in H1 2015 that was invested in
startups with a focus on:
Consumers
29% 15% 30% 26%
Small
Businesses
Large
Businesses
Small & Large
Businesses
71%
See slides 9 & 10 to understand the methodology
9. Methodology & FAQ (1/2)
Q: How was this information collected?
A: All financing rounds were pulled from public sources including Crunchbase, AngelList, company press
releases, and media websites like Betakit and TechVibes. This creates a bottom-up approach to the market
where I have attempted to track down every publicly available financing deal I could find. As a result, this is
not a 100% complete picture of the financing landscape - many financing rounds are completed privately and
can not be included. This includes the majority of angel rounds as they are unlikely to be reported
Q: Does this capture all categories of venture capital?
A: This only includes technology (ICT) specific venture capital. This does not include venture capital related to
biopharmaceuticals, clean energy, agriculture, or other sectors. These sectors often attract larger financing
rounds due to the capital-intensive nature of their business. Also the players in these sectors tend to be
different from the investors seen in the technology sector
Q: What is included in H1 2015?
A: All financing rounds from January 1st 2015 to June 30th 2015
Amir Bashir, @amirbashir42, www.amirbashir.ca
10. Methodology & FAQ (2/2)
Q: How did you assign technology categories to each company?
A: I assigned based on which category each company derived its value from; of course not all companies fit
into just one category. For example company X can be a retail big data company (analytics) that runs on a
cloud platform (SaaS) and collects data on customer interactions through the use of in-store beacons (IOT).
For the sake of simplicity, I chose the category where the most value is being created for the company. In this
example, the analytics segment is what will drive the value proposition as the engine will turn data points into
actionable insights that will help retailers grow
Q: What do you mean by automation?
A: Taking a complex process that often involves manual input from employees and automating the process to
remove friction. One example would be Checkfront, a company based out of Victoria, BC that is automating
booking and payments for tour companies (sightseeing), accommodations and equipment rentals. These
service based companies can use Checkfront to quickly set up an availability calendar on their website,
allowing customers to choose when they want their service, and giving them the ability to pay for their
service online. This reduces a lot of friction for the customer making it a more enjoyable experience right from
the discovery stage
Amir Bashir, @amirbashir42, www.amirbashir.ca