global funding report · 2017-01-15 · diversity of the startup world while maintaining meaningful...
TRANSCRIPT
Q1 2015 Q2 2015
GLOBAL FUNDINGREPORT
2016
Emily Oster
“The key to good decision making is evaluating the available information —
the data — and combining it with your own estimates of pluses and minuses.”
GLOBAL STARTUP INVESTMENT REPORT, 2016 www.funderbe.am/Funding-2016
CONTENT
INTRODUCTION
CHAPTER 1: THE BIG PICTURE
CHAPTER 2: QUARTERLY DEVELOPMENT
CHAPTER 3: INDUSTRY TRENDS
CHAPTER 4: FUNDING BY STAGES
CHAPTER 5: TOP DEALS
ABOUT FUNDERBEAM
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INTRODUCTION
FUNDING IN 2016
GLOBAL STARTUP INVESTMENT REPORT, 2016 www.funderbe.am/Funding-2016
ABOUT THE REPORTPURPOSE
The aim of this report is to provide investors,
founders, and startup-professionals around the
world with valuable data.
We’ve chosen not to make too much analysis in this
report but focus on delivering clear unbiased data
that you can interpret yourself. We hope this is
useful for investors, founders and journalists alike.
On Funderbeam Wire, our data-focused blog, you
can find more analytical approaches to our data.
USE
All the information in the report is free to use and
share, as long as appropriate accreditation is given.
MORE SPECIFIC NEEDS?
We are always on the lookout for interesting
partners for sharing data, collaborating on content,
and strengthening the industry.
If you’d like to talk to us, please get in touch with
our Head of Data, Nicholas Vandrey via email:
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GLOBAL STARTUP INVESTMENT REPORT, 2016 www.funderbe.am/Funding-2016
DEFINITIONSREGIONS
Evaluating funding trends and aggregating numbers on a
global scale can be misleading. Due to the sheer difference
in funding activity in different regions, global sums may not
tell the full story. For example, a moderate increase or
decrease in funding activity in North America might
overpower a significant increase or decrease in European
funding activity simply because of a rift in the absolute
funding amount within each region. To reduce the effect of
these powerhouses on emerging regions, we’ve split the
data into four different regions so funding trends can be
evaluated on a more appropriate basis. Those regions are as
follows:North America: Canada, The US, and Mexico.Europe: Europe including Israel and Russia ASIA: All countries in AsiaRoW: Rest of world consists of all countries not included in
the other three regions.
RoW groups together countries like Australia with Middle
Eastern, African, and South American countries. These are
not related, but from 2012 until today, they only constitute
about 2.5% of global funding, so for meaningful comparison
of the other three regions, we’ve grouped these three
together.
INDUSTRIES (TAG CLUSTERS)
Grouping startups by industry can be a tricky process. Due
to the prevalence of tech startups, along with the inherently
disruptive nature of innovative companies, it’s difficult to
draw clear boundaries between industries. Classical industry
classifications are too broad to capture the essence of the
startup world, but allowing each startup to populate its own
space would make any comparison of trends meaningless.
To address this, we’ve used thousands of descriptive tags
and clustered them into 45 industries that capture the
diversity of the startup world while maintaining meaningful
comparability. This way, patterns and trends in funding
across different industries can be evaluated over time.
STAGES
With the exception of a few companies that burst onto the
scene with a multi-million dollar VC round, most startups
follow a fairly straightforward funding journey. They start off
with angel and seed funding as they develop their product
and find their place in the market. Afterwards, they progress
through the alphabet of Series funding leading with A and
moving forward. That being said, more and more startups
are opting to crowd fund their early development.
For the purposes of this report, we divided funding into 10
stages. Angel, seed, and crowdfunding generally indicate an
early round of capital that doesn’t usually involve large VCs.
This can come from angels, accelerators, and syndicates.
Series A, Series B, and Series C+ are later stage rounds that
usually come (at least partially) from VCs and may include
existing angel investors. The same applies for Series ?, but
we don’t have specific information on where in the Series
pipeline it came from.
Grant and debt are somewhat less common ways for
startups to raise capital. Grants are popular among university
spin-offs and startups heavily involved in fields that require
significant amounts of research (such as biotech). Debt is a
way of raising capital that doesn’t generally dilute
outstanding shares (as no new shares are issued).
Undisclosed indicates we’re aware of a funding event taking
place, but we don’t have sufficient information to distinguish
the stage of the round.
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GLOBAL STARTUP INVESTMENT REPORT, 2016 www.funderbe.am/Funding-2016
DATA SOURCESFUNDERBEAM DATA
Powering a data platform as large as Funderbeam’s
requires an extensive amount of both automatic and
manual work. In order to piece together an accurate
picture of the startup environment globally, we
collect data from a wide variety of sources, clean it
and structure it, and then run it through a number of
fine-tuned algorithms to bring out the story behind
the numbers.
COLLECTING THE DATA
Data is collected from a combination of public
sources, strategic partnerships, and the crowd.
Sources include social media profiles such as
Facebook, Twitter, and LinkedIn as well as media
outlets such as TechCrunch, FinSMEs, and PE HUB.
The webpages of the startups themselves also
provide valuable data.
Partners include CrunchBase and regional partners
across Europe.
STRUCTURING THE DATA
The amount of data available on startups has
increased dramatically over the last few years to the
point that too much data is an equal issue to the
lack of it. In order to find and make use of the data
it must be cleaned and structured.
To address this, we use both automatic processing
and manual verification to update our data.
Data coming from different sources is cross-
checked for validity. In cases where the same data
from different sources are in conflict with each
other, a thorough series of algorithms is run to
determine which data is most likely to be correct.
In addition, data on our platform is constantly being
maintained by dedicated data administrators and
analysts. Every suggested edit to the data by the
crowd only makes it to the platform once it’s been
manually verified by our team.
ANALYZING THE DATA
The data is run through a number of machine
learning algorithms that have been tuned and
statistically analyzed using hundreds of thousands
of data points. These algorithms give insight beyond
the amount of funding a startup has raised and the
number of Twitter followers they have.
Natural language processing is also leveraged to
extract meaningful data from news articles, allowing
machines to process thousands of articles in the
time it would take a human to read one.
The data in this version of the report is extracted
from our database on the 2nd of October 2016, and
rounds are still coming in, so final numbers may vary
slightly later.
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CHAPTER 1
THE BIG PICTURE
GLOBAL FUNDING IN 2016 In this chapter, we start by looking at the total funding
globally, amount of rounds, and average round size.
GLOBAL STARTUP INVESTMENT REPORT, 2016 www.funderbe.am/Funding-2016 10
READING THE CHART
The left grey column shows global funding in 2015,
while the right column show global funding in 2016.
KEY TAKE-AWAY
Year on year, global funding fell by almost a third.
More precisely, funding dropped by 28% from
$163.43bn to $117.20bn.
This is the biggest drop YoY since before we started
collecting data in 2012.
REPORT BY
GLOBAL FUNDING BY REGIONYoY COMPARISON
2015 2016
$117,2bn$163,43bn
-28.29%
GLOBAL STARTUP INVESTMENT REPORT, 2016 www.funderbe.am/Funding-2016 11
NORTH AMERICA*
$75bn (-30.40% since 2015)
REPORT BY
ASIA*
$25.8bn (-18.66% since 2015)
EUROPE+ ISRAEL*
$16.8bn (-36.18% since 2015)
20152016
READING THE CHART
Each colored circle represents the total funding in
the region in 2016. The dotted line indicates the size
of the same circle in 2015.
In each circle, is the total amount of funding in 2016,
as well as the percentage change between 2015 and
2016.
*For definitions of regions, please see definitions.
KEY TAKE-AWAY
All three regions saw significant drops in the total
amount of funding, most significantly in Europe
where funding dropped by more than a third.
Rest of World (RoW) saw an increase in funding
year on year, but as the 2016 funding in RoW only
constitutes 2% of total funding, this is not very
impactful in a global perspective.
GLOBAL FUNDING BY REGIONYoY COMPARISON
REST OF WORLD*
$2.7bn (26.61% since 2015)
GLOBAL STARTUP INVESTMENT REPORT, 2016 www.funderbe.am/Funding-2016
2.500
5.000
7.500
10.000
NORTH AMERICA EUROPE ASIA
12
READING THE CHART
The colored bars show the total amount of rounds
in each region in 2016. The grey bars represent the
total amount of rounds in 2015.
For definitions of regions, please see definitions.
KEY TAKE-AWAY
The total amount of deals dropped even more
significantly than the total amount of funding.
Globally, the drop was 43% from 14,983 in 2015 to
8,485 in 2016.
The biggest drop was in North America, where the
number of rounds shrunk by more than 45%.
TOTAL ROUNDS BY REGION
YoY COMPARISON
REPORT BY
-45.71%
-37.45%
-44.09%
GLOBAL STARTUP INVESTMENT REPORT, 2016 www.funderbe.am/Funding-2016
$5m
$10m
$15m
$20m
$25m
$30m
$35m
NORTH AMERICA EUROPE ASIA GLOBAL
13
READING THE CHART
The colored bars represent the average deal-size of
all deals in each region in 2016. The grey bars
represent the average deal-size in 2015.
For definitions of regions, please see definitions.
KEY TAKE-AWAY
Despite a global cool-down of funding as seen in
the last graphs, average deal-sizes have gone up in
all regions.
The biggest increase was in Asia, where the average
deal-size rose from just over $20 million to more
than $30 million – an increase of more than 45%.
Europe did not see the same kind of development.
AVERAGE DEAL-SIZESYOY COMPARISON
26.88%
45.48%
2.04%
28.21%
REPORT BY
GLOBAL STARTUP INVESTMENT REPORT, 2016 www.funderbe.am/Funding-2016 14
READING THE CHART
Each line is colored by region, showing total
funding in that year.
For definitions of stages and regions, please see
definitions.
KEY TAKE-AWAY
It’s clear that we saw a massive peak in funding in
2015 – especially in North America – led by The US.
In 2016, we are close to the same levels as of ’14,
and it is clear that the more funding went up in
each region, the more it subsequently dropped.
$25bn
$50bn
$75bn
$100bn
$125bn
2012 2013 2014 2015 2016
FUNDING BY REGION
TOTAL YEARLY FUNDING SINCE 2012
NORTH AMERICA EUROPE ASIA
REPORT BY
GLOBAL STARTUP INVESTMENT REPORT, 2016 www.funderbe.am/Funding-2016 15
READING THE CHART
Each line is colored by region, showing total
funding in that year indexed to 100 in 2012.
For definitions of stages and regions, please see
definitions.
KEY TAKE-AWAY
All regions follow the same pattern of peaking in
2015, and with significant drops from 2015 to 2016.
Asia has seen the most explosive growth in funding,
relative to the index year of 2012.
North America has seen the least growth. This
should be interpreted as late growth in the rest of
the world than as slow growth in North America.
INDEX 100
200
300
400
500
600
700
800
900
1.000
2012 2013 2014 2015 2016
TOTAL FUNDING BY REGION
INDEXED TO 2012
NORTH AMERICA GLOBALEUROPE ASIA
REPORT BY
GLOBAL STARTUP INVESTMENT REPORT, 2016 www.funderbe.am/Funding-2016 16
READING THE CHART
Each line is colored by region, and grouped by year
of funding.
For definitions of regions, please see definitions.
KEY TAKE-AWAY
The North America region is dominating in terms of
the amount of deals.
Interestingly, Europe + Israel has significantly more
rounds than Asia, even though we saw that there
was more total funding in Asia.
2.500
5.000
7.500
10.000
12.500
2012 2013 2014 2015 2016
ROUNDS BY REGION
GLOBAL SINCE 2012
NORTH AMERICA EUROPE ASIA
REPORT BY
GLOBAL STARTUP INVESTMENT REPORT, 2016 www.funderbe.am/Funding-2016 17
READING THE CHART
Each line is colored by region, and grouped by year
of funding. All numbers are indexed to 100 in 2012.
For definitions of regions, please see definitions.
KEY TAKE-AWAY
Relative to 2012, Asia has seen the strongest
growth in number of rounds, peaking in 2014 and
staying steady through ’15 before dropping heavily
in 2016.
Europe ends 2016 just above the level of 2012, while
North America is actually significantly lower.
50
INDEX 100
150
200
250
300
2012 2013 2014 2015 2016
ROUNDS BY REGION
GLOBAL QUARTERLY INDEXED TO 2012
REPORT BY
NORTH AMERICA GLOBALEUROPE ASIA
CHAPTER 2
QUARTERLY DEVELOPMENT
DEVELOPMENT IN QUARTERLY FUNDING In this chapter, we look at all funding rounds since the
beginning of 2012 broken down by quarter.
GLOBAL STARTUP INVESTMENT REPORT, 2016 www.funderbe.am/Funding-2016 20
READING THE CHART
Each line represents the total funding of one year,
split by quarters on the horizontal axis. The blue line
indicates the most recent year.
The purpose is to make each individual quarter easy
to compare with same quarters over the years.
For definitions of regions, please see definitions.
KEY TAKE-AWAY
Globally, the last quarter of the year has usually
been better than the same quarter in the year
before. However, in the last two years, this trend has
been broken, and 2016 ends significantly lower than
’15 and ’14.
$10bn
$20bn
$30bn
$40bn
$50bn
Q1 Q2 Q3 Q4
2012
2015
2014
2013
GLOBAL FUNDING
2016
BY QUARTER
REPORT BY
GLOBAL STARTUP INVESTMENT REPORT, 2016 www.funderbe.am/Funding-2016 21
READING THE CHART
Each line represents the total funding of one year,
split by quarters on the horizontal axis. The blue line
indicates the most recent year.
The purpose is to make each individual quarter easy
to compare with same quarters over the years.
For definitions of regions, please see definitions.
KEY TAKE-AWAY
In 2016, funding in North America has been
significantly below the levels of 2015 and most of
2014.
One positive trend to see, is that funding in 2016,
albeit lower than ’14 and ’15, didn’t drop
significantly. This might be a positive sign for
funding staying at the same level or even rising in
2017.
$10bn
$20bn
$30bn
$40bn
Q1 Q2 Q3 Q4
2012
20152014
2013
FUNDING IN NORTH AMERICA
2016
BY QUARTER
REPORT BY
GLOBAL STARTUP INVESTMENT REPORT, 2016 www.funderbe.am/Funding-2016 22
READING THE CHART
Each line represents the total funding of one year,
split by quarters on the horizontal axis. The blue line
indicates the most recent year.
The purpose is to make each individual quarter easy
to compare with same quarters over the years.
For definitions of regions, please see definitions.
KEY TAKE-AWAY
In Europe, the last quarter ends well below same
quarter of previous years, but as a positive remark,
seems to be stable, and maybe even slightly rising.
This could be a very positive sign for Europe-based
companies looking to raise funds in 2017
$2,5bn
$5bn
$7,5bn
$10bn
Q1 Q2 Q3 Q4
2012
2015
2014
2013
FUNDING IN EUROPE + ISRAEL
2016
BY QUARTER
REPORT BY
GLOBAL STARTUP INVESTMENT REPORT, 2016 www.funderbe.am/Funding-2016 23
READING THE CHART
Each line represents the total funding of one year,
split by quarters on the horizontal axis. The blue line
indicates the most recent year.
The purpose is to make each individual quarter easy
to compare with same quarters over the years.
For definitions of regions, please see definitions.
KEY TAKE-AWAY
As always, Asia has the biggest peaks and valleys of
the regions, and actually had its best quarter ever in
Q2 2016. However, this dropped straight back to the
same level as the previous quarters, and seems to
ends the year even lower than before.
This looks a bit bleak for startups looking to raise
funds in Asia in 2016.
$3bn
$6bn
$9bn
$12bn
Q1 Q2 Q3 Q4
2012
2015
2014
2013
FUNDING IN ASIA
2016
BY QUARTER
REPORT BY
GLOBAL STARTUP INVESTMENT REPORT, 2016 www.funderbe.am/Funding-2016 24
READING THE CHART
Each line is color-coded by region, and grouped by
stage of funding.
For definitions of stages and regions, please see
definitions.
KEY TAKE-AWAY
Globally, funding has been going up from 2012 to
2015, albeit with quite significant fluctuation from
quarter to quarter. However, since then, there has
been a global cool-down, and funding in 2016 has
been very slow compared to the last two years.
$5bn
$10bn
$15bn
$20bn
$25bn
$30bn
$35bn
Q1 2012 Q1 2013 Q1 2014 Q1 2015 Q1 2016
NORTH AMERICA EUROPE ASIA
FUNDING BY REGION
GLOBAL QUARTERLY SINCE 2012
REPORT BY
CHAPTER 3
INDUSTRY TRENDS
EXPLORING STARTUP INDUSTRIES Diving into what industries grew/fell the most in the
third quarter of 2016.
For an understanding of how we use machine learning
and algorithms to automatically determine industries,
please see the definitions.
OUR TAG-CLUSTERS
The size of each circle
represents the amount of
companies operating within
that circle.
In the following, we will look
into how that is developing
recently.
GLOBAL STARTUP INVESTMENT REPORT, 2016 www.funderbe.am/Funding-2016
TRANSPORTATION
HEALTHCARE
IT SERVICES
NEWS AND MEDIA
FINANCIAL
PAYMENTS
CLEAN TECHNOLOGY
DEVELOPER TOOLS
CLOUD SERVICES
BIG DATA ANALYTICS
HARDWARE
BUSINESS SERVICES
PHOTOGRAPHY
TV AND VIDEO
MESSAGING
FOOD AND DRINK
PUBLISHING
CONSUMER ELECTRONICS
ENTERTAINMENT
COLLABORATION AND PRODUCTIVITY
RETAIL
TRAVEL
WELLNESS AND FITNESS
MUSIC AND AUDIO
REAL ESTATE
MARKETING AND ADVERTISING
WEB HOSTING AND DEVELOPMENT
PEOPLE AND SOCIETY
SECURITY
AUTOMOTIVE
CUSTOMER SUPPORT
VISUAL ARTS AND DESIGN
EDUCATION
ECOMMERCE
SEO
ANDROID AND IOS
INTERNET MARKETING
LOCATION BASED SERVICES
HR
CROWDFUNDING AND CROWDSOURCING
COUPONS
SOCIAL MEDIA PLATFORMS
EVENTS
GAMES
NETWORKING
$0bn $10bn $20bn $30bn
20152016
Financial and Payments took a
huge dip but stay at the high
end of the chart.
IT Services is among the few
industries in the top of the
chart that grew YoY.
GLOBAL FUNDING BY INDUSTRY
27
2016 VS 2015
GLOBAL STARTUP INVESTMENT REPORT, 2016 www.funderbe.am/Funding-2016
GLOBAL FUNDING BY INDUSTRY
28
PHOTOGRAPHY
NEWS AND MEDIA
TV AND VIDEO
MESSAGING
COLLABORATION AND PRODUCTIVITY
IT SERVICES
PUBLISHING
CLOUD SERVICES
SEO
BIG DATA ANALYTICS
MUSIC AND AUDIOTRANSPORTATION
ENTERTAINMENT
TRAVEL
CONSUMER ELECTRONICS
WEB HOSTING AND DEVELOPMENT
DEVELOPER TOOLS
EVENTS
HARDWARE
INTERNET MARKETING
CLEAN TECHNOLOGY
SECURITY
FOOD AND DRINKEDUCATION
HEALTHCARE
ANDROID AND IOS
CROWDFUNDING AND CROWDSOURCING
VISUAL ARTS AND DESIGN
AUTOMOTIVE
MARKETING AND ADVERTISING
PEOPLE AND SOCIETY
ECOMMERCE
GAMES
BUSINESS SERVICES
REAL ESTATE
WELLNESS AND FITNESSPAYMENTS
HR
FINANCIAL
LOCATION BASED SERVICES
RETAIL
SOCIAL MEDIA PLATFORMS
CUSTOMER SUPPORT
NETWORKING
COUPONS
-100% -50% 0% 50% 100%
Looking at the top 10
industries, there seems to be
trend around digital media.
2016 has been dubbed “Year of
the bots”, so unsurprisingly
Messaging is among the top
risers.
With a drop of more than 80%,
it looks like it’s time to write
the obituary for Coupons.
CHANGE 2015 VS 2016
GLOBAL STARTUP INVESTMENT REPORT, 2016 www.funderbe.am/Funding-2016
HEALTHCARE
IT SERVICES
CLEAN TECHNOLOGY
FINANCIAL
TRANSPORTATION
BIG DATA ANALYTICS
CLOUD SERVICES
DEVELOPER TOOLS
BUSINESS SERVICES
PAYMENTS
PHOTOGRAPHY
MESSAGING
HARDWARE
CONSUMER ELECTRONICS
COLLABORATION AND PRODUCTIVITY
PUBLISHING
TV AND VIDEO
FOOD AND DRINK
ENTERTAINMENT
NEWS AND MEDIA
TRAVEL
WEB HOSTING AND DEVELOPMENT
MARKETING AND ADVERTISING
RETAIL
SECURITY
REAL ESTATE
WELLNESS AND FITNESS
AUTOMOTIVE
PEOPLE AND SOCIETY
SEO
CUSTOMER SUPPORT
INTERNET MARKETING
EDUCATION
LOCATION BASED SERVICES
VISUAL ARTS AND DESIGN
MUSIC AND AUDIO
ECOMMERCE
ANDROID AND IOS
HR
CROWDFUNDING AND CROWDSOURCING
COUPONS
SOCIAL MEDIA PLATFORMS
GAMES
EVENTS
NETWORKING
$0bn $5bn $10bn $15bn $20bn
20152016
Despite a significant drop,
Healthcare takes over Financial as
the most funded industry in North
America.
Wellness and Fitness takes the
biggest drop on the list, moving
from 12th to 27th.
NORTH AMERICA FUNDING BY INDUSTRY
29
2016 VS 2015
GLOBAL STARTUP INVESTMENT REPORT, 2016 www.funderbe.am/Funding-2016
NORTH AMERICA FUNDING BY INDUSTRY
30
MESSAGING
PHOTOGRAPHY
COLLABORATION AND PRODUCTIVITY
IT SERVICES
TV AND VIDEO
CONSUMER ELECTRONICS
BIG DATA ANALYTICS
SEO
COUPONS
CUSTOMER SUPPORT
CLOUD SERVICESBUSINESS SERVICES
MARKETING AND ADVERTISING
WEB HOSTING AND DEVELOPMENT
INTERNET MARKETING
PUBLISHING
TRAVEL
NEWS AND MEDIA
AUTOMOTIVE
DEVELOPER TOOLS
CLEAN TECHNOLOGY
ENTERTAINMENT
FOOD AND DRINKSECURITY
HARDWARE
ECOMMERCE
ANDROID AND IOS
HEALTHCARE
EDUCATION
TRANSPORTATION
MUSIC AND AUDIO
VISUAL ARTS AND DESIGN
CROWDFUNDING AND CROWDSOURCING
RETAIL
PEOPLE AND SOCIETY
EVENTSREAL ESTATE
GAMES
FINANCIAL
NETWORKING
PAYMENTS
HR
LOCATION BASED SERVICES
WELLNESS AND FITNESS
SOCIAL MEDIA PLATFORMS
-100% -50% 0% 50% 100%
Messaging tops the list,
increasing the total amount
of funding taken by 60%
compared to the year
before. Welcome to the
world of chat. interfaces.
CHANGE 2015 VS 2016
GLOBAL STARTUP INVESTMENT REPORT, 2016 www.funderbe.am/Funding-2016
DEVELOPER TOOLS
ENTERTAINMENT
CLOUD SERVICES
IT SERVICES
FINANCIAL
PAYMENTS
MUSIC AND AUDIO
HEALTHCARE
TV AND VIDEO
CLEAN TECHNOLOGY
FOOD AND DRINK
HARDWARE
COLLABORATION AND PRODUCTIVITY
CONSUMER ELECTRONICS
REAL ESTATE
BIG DATA ANALYTICS
BUSINESS SERVICES
MESSAGING
RETAIL
PUBLISHING
TRANSPORTATION
VISUAL ARTS AND DESIGN
CUSTOMER SUPPORT
PEOPLE AND SOCIETY
TRAVEL
SECURITY
PHOTOGRAPHY
MARKETING AND ADVERTISING
CROWDFUNDING AND CROWDSOURCING
GAMES
WEB HOSTING AND DEVELOPMENT
ANDROID AND IOS
HR
ECOMMERCE
SEO
AUTOMOTIVE
INTERNET MARKETING
WELLNESS AND FITNESS
NEWS AND MEDIA
LOCATION BASED SERVICES
EDUCATION
SOCIAL MEDIA PLATFORMS
COUPONS
EVENTS
NETWORKING
$0bn $2bn $4bn $6bn $8bn
20152016
Financial and payments drop
massively, but stay at the high end
of the chart.
Coupons is the biggest diver,
going to 43rd in 2016 after being
the 6th most funded industry in
2015
EUROPEAN FUNDING BY INDUSTRY
31
2016 VS 2015
GLOBAL STARTUP INVESTMENT REPORT, 2016 www.funderbe.am/Funding-2016
EUROPEAN FUNDING BY INDUSTRY
32
MUSIC AND AUDIO
ENTERTAINMENT
TV AND VIDEO
GAMES
LOCATION BASED SERVICES
PUBLISHING
CLOUD SERVICES
CROWDFUNDING AND CROWDSOURCING
FOOD AND DRINK
DEVELOPER TOOLS
HARDWAREEDUCATION
SEO
SECURITY
VISUAL ARTS AND DESIGN
COLLABORATION AND PRODUCTIVITY
EVENTS
HR
IT SERVICES
TRANSPORTATION
CLEAN TECHNOLOGY
AUTOMOTIVE
CONSUMER ELECTRONICSSOCIAL MEDIA PLATFORMS
HEALTHCARE
ANDROID AND IOS
MESSAGING
PHOTOGRAPHY
BIG DATA ANALYTICS
INTERNET MARKETING
TRAVEL
WELLNESS AND FITNESS
WEB HOSTING AND DEVELOPMENT
PEOPLE AND SOCIETY
NEWS AND MEDIA
REAL ESTATEECOMMERCE
PAYMENTS
FINANCIAL
MARKETING AND ADVERTISING
BUSINESS SERVICES
RETAIL
CUSTOMER SUPPORT
NETWORKING
COUPONS
-100% -50% 0% 50% 100% 150%
As a general trend, the top risers in
Europe seem to be focused around
Entertainment, such as Games,
Music, and Food & Drink.
Coupons drop by almost 97%, and
may not even be a industry anymore
the next time we run our machines
to define meaningful clusters.
CHANGE 2015 VS 2016
GLOBAL STARTUP INVESTMENT REPORT, 2016 www.funderbe.am/Funding-2016
TRANSPORTATION
NEWS AND MEDIA
PAYMENTS
IT SERVICES
TV AND VIDEO
FOOD AND DRINK
TRAVEL
PHOTOGRAPHY
PUBLISHING
WELLNESS AND FITNESS
FINANCIAL
HARDWARE
RETAIL
HEALTHCARE
MESSAGING
DEVELOPER TOOLS
CONSUMER ELECTRONICS
ENTERTAINMENT
ECOMMERCE
CLEAN TECHNOLOGY
CLOUD SERVICES
PEOPLE AND SOCIETY
BUSINESS SERVICES
AUTOMOTIVE
EVENTS
EDUCATION
WEB HOSTING AND DEVELOPMENT
BIG DATA ANALYTICS
SOCIAL MEDIA PLATFORMS
REAL ESTATE
MARKETING AND ADVERTISING
COUPONS
ANDROID AND IOS
COLLABORATION AND PRODUCTIVITY
CUSTOMER SUPPORT
NETWORKING
MUSIC AND AUDIO
HR
VISUAL ARTS AND DESIGN
SECURITY
LOCATION BASED SERVICES
CROWDFUNDING AND CROWDSOURCING
SEO
INTERNET MARKETING
GAMES
$0bn $3bn $6bn $9bn $12bn
20152016
The Transportation industry stays
at the top of the list, taking in
even more capital in 2016 than
2015. This is strongly driven by
Uber-rival, Didi Dache.
ASIAN FUNDING BY INDUSTRY
33
2016 VS 2015
GLOBAL STARTUP INVESTMENT REPORT, 2016 www.funderbe.am/Funding-2016
ASIAN FUNDING BY INDUSTRY
34
SOCIAL MEDIA PLATFORMS
PHOTOGRAPHY
WELLNESS AND FITNESS
NEWS AND MEDIA
TV AND VIDEO
PUBLISHING
COLLABORATION AND PRODUCTIVITY
HR
TRAVEL
EVENTS
TRANSPORTATIONIT SERVICES
WEB HOSTING AND DEVELOPMENT
HEALTHCARE
SECURITY
CLOUD SERVICES
BIG DATA ANALYTICS
PEOPLE AND SOCIETY
PAYMENTS
EDUCATION
HARDWARE
MESSAGING
SEOFINANCIAL
DEVELOPER TOOLS
ANDROID AND IOS
MARKETING AND ADVERTISING
CLEAN TECHNOLOGY
BUSINESS SERVICES
LOCATION BASED SERVICES
ECOMMERCE
FOOD AND DRINK
ENTERTAINMENT
CONSUMER ELECTRONICS
RETAIL
MUSIC AND AUDIOVISUAL ARTS AND DESIGN
REAL ESTATE
AUTOMOTIVE
CROWDFUNDING AND CROWDSOURCING
COUPONS
NETWORKING
CUSTOMER SUPPORT
GAMES
INTERNET MARKETING
-100% 100% 300%
Compared to other regions, the
most striking trend is that a lot
more industries took in more
funding this year than last.
Transportation – despite being
the most funded industry–does
not appear among the highest
risers on the list.
CHANGE 2015 VS 2016
CHAPTER 4
FUNDING BY STAGES
GLOBAL STARTUP INVESTMENT REPORT, 2016 www.funderbe.am/Funding-2016
$5bn
$10bn
$15bn
ANGEL
ROUN
D
CROW
DFUN
DIN
G
GRA
NT
SEED R
OUN
D
SERIES A
SERIES B
+
DEBT
TOTAL FUNDING BY STAGE
READING THE CHART
Each bar is colored by region, and grouped by
stage of funding.
For definitions of stages and regions, please see
definitions.
KEY TAKE-AWAY
Late-stage seed rounds (Series C+) constitute the
largest amount of funding in all three regions.
Europe is mostly the region taking in least funding,
except for Crowdfunding, which is however still a
very small portion compared to other stages.
36
REGIONAL COMPARISON
NORTH AMERICA EUROPE ASIA
$33.8bn
GLOBAL STARTUP INVESTMENT REPORT, 2016 www.funderbe.am/Funding-2016
TOTAL ROUNDS BY STAGE
READING THE CHART
Each bar is colored by region, and grouped by
stage of funding.
For definitions of stages and regions, please see
definitions.
KEY TAKE-AWAY
Late-stage seed rounds (Series C+) constitute the
largest amount of funding in all three regions.
Europe is ahead of the other regions when it comes
to Crowdfunding, including both equity and
reward-based.
37
1000
2000
ANGEL
ROUN
D
CROW
DFUN
DIN
G
GRA
NT
SEED R
OUN
D
SERIES A
SERIES B
+
DEBT
REGIONAL COMPARISON
NORTH AMERICA EUROPE ASIA
GLOBAL STARTUP INVESTMENT REPORT, 2016 www.funderbe.am/Funding-2016 38
READING THE CHART
Each bar is colored by region, and grouped by
stage of funding.
For definitions of stages and regions, please see
definitions.
KEY TAKE-AWAY
Late-stage seed rounds (Series C+) have the largest
average deal-size of equity-based funding, while
debt financing in Asia is just a few, very large,
rounds making the average deal size go off the
chart.
Crowdfunding in North America has larger deal-
sizes despite being less total funding than in
Europe.
AVERAGE DEAL SIZE BY STAGE
$16,7m
$33,3m
$50m
ANGEL
ROUN
D
CROW
DFUN
DIN
G
GRA
NT
SEED R
OUN
D
SERIES A
SERIES B
+
DEBT
REGIONAL COMPARISON
NORTH AMERICA EUROPE ASIA
$98.5m
GLOBAL STARTUP INVESTMENT REPORT, 2016 www.funderbe.am/Funding-2016
FUNDING BY STAGE
GLOBAL, YOY
READING THE CHART
Blue bars represent Funding in 2016, while the grey
bars represent total funding in the year before.
For definitions of stages, please see definitions.
KEY TAKE-AWAY
Late-stage seed rounds (Series C+) constitute the
largest amount of funding globally, but saw a
significant drop from 2015 to 2016.
However, we saw slight increases in Debt and
Crowdfunding rounds.
39
$20bn
$40bn
$60bn
$80bn
ANGEL
ROUN
D
CROW
DFUN
DIN
G
GRA
NT
SEED R
OUN
D
SERIES A
SERIES B
+
DEBT
20152016
GLOBAL STARTUP INVESTMENT REPORT, 2016 www.funderbe.am/Funding-2016
$6,7m
$13,3m
$20m
ANGEL
ROUN
D
CROW
DFUN
DIN
G
GRA
NT
SEED R
OUN
D
SERIES A
SERIES B
+
DEBT
20152016
AVERAGE DEAL SIZE BY STAGE
GLOBAL, YoY
READING THE CHART
Blue bars represent Funding in 2016, while the grey
bars represent total funding in the year before.
For definitions of stages, please see definitions.
KEY TAKE-AWAY
The average deal-sizes of early stage funding has
gone up significantly, while later stage series
funding is practically the same.
Debt has also increased dramatically, especially
driven by debt-financing of late-stage companies in
Asia.
40
GLOBAL STARTUP INVESTMENT REPORT, 2016 www.funderbe.am/Funding-2016
$20bn
$40bn
$60bn
ANGEL
ROUN
D
CROW
DFUN
DIN
G
GRA
NT
SEED R
OUN
D
SERIES A
SERIES B
+
DEBT
UNDIS
CLOSED
20152016
FUNDING BY STAGE
NORTH AMERICA, YOY
READING THE CHART
Red bars represent funding in 2016, while the grey
bars represent total funding in the year before.
For definitions of stages, please see definitions.
KEY TAKE-AWAY
Despite a significant drop, most funding still comes
through later stage series funding (Series B+).
Seed and Series A has dropped significantly, which
correlates with the general perception in the market
that investors have become more cautious in 2016.
41
GLOBAL STARTUP INVESTMENT REPORT, 2016 www.funderbe.am/Funding-2016
FUNDING BY STAGE
EUROPE & ISRAEL, YOY
READING THE CHART
Blue bars represent funding in 2016, while the grey
bars represent total funding in the year before.
For definitions of stages, please see definitions.
KEY TAKE-AWAY
Series B+ are staying at a steady level, while Debt
financing has more than doubled. Angel rounds
took a huge dive, going down by more than 60%.
Albeit small compared to traditional financing,
Crowdfunding jumps from $126m to $172.6m, a
clear indication that alternative financing will be an
increasingly important source of funds in Europe in
2017.
42
$3bn
$6bn
$9bn
$12bn
ANGEL
ROUN
D
CROW
DFUN
DIN
G
GRA
NT
SEED R
OUN
D
SERIES A
SERIES B
+
DEBT
UNDIS
CLOSED
20152016
GLOBAL STARTUP INVESTMENT REPORT, 2016 www.funderbe.am/Funding-2016
FUNDING BY STAGE
ASIA, YOY
READING THE CHART
Green bars represent funding in 2016, while the grey
bars represent total funding in the year before.
For definitions of stages, please see definitions.
KEY TAKE-AWAY
In Asia, practically all the funding is late stage or
Undisclosed (usually this also means later stage).
However, it is interesting to see that there was a
massive drop in Series A (-76%), while Debt
exploded to almost $3bn, an increase of 684%.
43
$6bn
$12bn
$18bn
ANGEL
ROUN
D
CROW
DFUN
DIN
G
GRA
NT
SEED R
OUN
D
SERIES A
SERIES B
+
DEBT
UNDIS
CLOSED
20152016
CHAPTER 5
TOP DEALS
GLOBAL STARTUP INVESTMENT REPORT, 2016 www.funderbe.am/Funding-2016
Name HQ Bio Funds raised
Uber USA The best way to get wherever you're going. $4,850,000,000
Infor USAInfor offers enterprise software for CRM, ERP, HRM, financial management, performance management, and supply chain management.
$2,500,000,000
Snapchat USA Snap, formerly Snapchat Inc, is a camera company that develops Snapchat and Spectacles. $1,975,000,000
Airbnb USAAirbnb is an online community marketplace for people to list, discover, and book accommodations around the world.
$1,555,462,100
OneWeb USA OneWeb deploys a micro-satellite constellation to provide global high-speed, low latency broadband access. $1,200,000,000
Magic Leap USAMagic Leap is a proprietary wearable technology that enables users to interact with digital devices in a completely visually cinematic way.
$793,500,000
Pivotal USA Pivotal is a software company that provides digital transformation technology and services $653,000,000
CommonBond USA CommonBond is an online lending platform that connects borrowers and investors to make education finance better. $605,000,000
hulu USA Hulu offers hit shows, movies, and documentaries through its website, Hulu.com, and other destination sites. $583,000,000
IO.com USAIO.com provides modular data center technology and services for enterprises, governments and service providers.
$505,000,000
MOST FUNDED COMPANIES
45
NORTH AMERICA, 2016
GLOBAL STARTUP INVESTMENT REPORT, 2016 www.funderbe.am/Funding-2016
Name HQ Bio Funds raised
Spotify SWESpotify is a commercial music streaming service that provides restricted digital content from a range of record labels and artists.
$1,500,000,000
Delivery Hero DEU Delivery Hero is a network of online food ordering sites with over 100 restaurant partners worldwide. $1,121,000,000
WeWork ISR WeWork is a platform for creators. $690,000,000
Deliveroo GBRDeliveroo is a technology company that focuses on marketing, selling, and delivering restaurant meals to the household or office.
$275,000,000
Future Finance IRL Future Finance is now the largest and fastest growing non-government student lender in Europe. $198,319,694
Unity Technologies DNKUnity Technologies is the creator of Unity, a high-performance end-to-end development platform that creates rich interactive experiences.
$181,000,000
Mytrah Energy GBR India's utility scale renewable energy pioneer $175,000,000
4finance LVAEurope’s largest online and mobile consumer lending group, providing convenient and responsible access to credit across 18 countries.
$165,160,144
Hibernia Networks IRL Hibernia Networks owns and operates a global network connecting North America, Europe and Asia. $165,000,000
SIGFOX FRA SIGFOX operates a cellular network dedicated to low-throughput communication for connected objects. $158,898,305
MOST FUNDED COMPANIES
46
EUROPE & ISRAEL, 2016
GLOBAL STARTUP INVESTMENT REPORT, 2016 www.funderbe.am/Funding-2016
Name HQ Bio Funds raised
Didi-Dache CHNDidi Chuxing is a mobile transportation platform that offers a range of commuting options to 400 cities in China.
$7,419,900,000
Ele.me CHN Ele.me.com is a website that offers customer-to-customer meal ordering services. $1,250,000,000
Le Sports CHN Le Sports, the sports arm of China's leading online video provider, LeEco $1,229,403,647
Lufax CHNShanghai Lujiazui International Financial Asset Exchange (“Lufax”) is an online marketplace for trading of financial assets.
$1,200,000,000
Babytree CHN Babytree is the largest and most popular parenting website in China. $881,723,007
BEST Logistics Technology CHN Best Logistics is a Chinese comprehensive logistics supply
chain service provider. $760,000,000
Grab SGPGrab is Southeast Asia's leading ride-hailing platform that offers the fastest booking service for taxis, private cars & motorbikes through one mobile app.
$750,000,000
Go-Jek IDNGO-JEK is your personal time saver. Our drivers are spread across Indonesia ready to pick you up, do your shopping, deliver your items and food orders!
$550,000,000
Miaopai CHN Miaopai is a video app China based company. $500,000,000
Beijing Weiying Technology CHN Beijing Weiying Technology is the maker of a movie ticket
booking platform . $462,000,000
MOST FUNDED COMPANIES
47
ASIA, 2016
ABOUT FUNDERBEAM
GLOBAL STARTUP INVESTMENT REPORT, 2016 www.funderbe.am/Funding-2016
ABOUT FUNDERBEAMFunderbeam is creating a world where companies
are funded and traded across borders.
Companies can raise funds through syndicated
equity crowdfunding, raising from 100’s of investors
globally, and only adding one contact point to their
cap table. All investments are tradable on the
blockchain, so investors can choose when to return
on investments instead of waiting +5 years for an
exit. On top, Funderbeam has free data on +180k
startups and investors, helping both groups make
smarter investment and business decisions.
FUNDERBEAM CONSISTS OF 3 PARTS:
• Free, world-class, data intelligence for investors
and founders.
• Funding: Private/crowd syndicates for equity
funding.
• Trading: All investments are instantly tradable;
investors choose how long to keep investment. All
trades are secured by blockchain.
To get started, go to Funderbeam.com.
49
GLOBAL STARTUP INVESTMENT REPORT, 2016 www.funderbe.am/Funding-2016
HAPPY HOLIDAYS AND A GROWTH-FILLED NEW YEAR!
50