The On-Demand ReportA data-driven review of U.S. financing activity and trends in on-demand mobile services

Issued May 14, 2015

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“Designed by a VC insider who truly knows the space and understands end-user needs.”

Greg BaeInvestments & Biz DevComcast Ventures

Jack LeeneyPortfolio ManagerTelefonica Ventures

“CB Insights are changing the way investors access private company information.”

Kevin DiestelInvestorSapphire Ventures

“We've found CBI to have the best data for the most accurate market view.”

“They have the best quality data in the market for anyone looking to get an inside look at private company financings.”

Ian SigalowPartnerGreycroft Partners

“CB Insights' intuitive user interface, analytical capabilities, and detailed investment information create a very powerful tool for our team's research needs.”

Nate D’AnnaCorporate DevelopmentCisco

“We track dealflow, understand valuation multiples, analyze industry trends and identify comparable companies. It is great to see CB Insights innovating in the venture capital data space.

Will PorteousGeneral PartnerRRE Ventures

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Table of Contents

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Highlights 5Financing TrendsMost Well-Funded CompaniesInvestor Analysis

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HIGHLIGHTS

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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. Of note, Uber raised 39% more funding than all other on-demand services combined in 2014.

UBER THE JUGGERNAUT: $3.89B RAISED BY ON-DEMAND STARTUPS EXCLUDING UBERExcluding Uber, on-demand startups have raised $3.89B across 252 deals since 2010. At the current run rate, 2015 is on pace for a new funding record that could more than double 2014’s funding total.

ON-DEMAND FUNDING MATURES. LESS SEED FUNDING.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.

SV ANGEL, ANDREESSEN HOROWITZ ARE MOST ACTIVE IN ON-DEMANDSV 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.

WHAT THIS REPORT COVERS:On-demand mobile startups 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.

ON-DEMAND DEAL SIZES BLOW PAST TYPICAL MOBILE DEAL SIZESOn-demand Seed VC, Series A and Series B deal sizes have stood higher than the average mobile software deal in each of the past three years. On-demand Series B deals were 78% larger than the typical mobile deal in 2014.

NEARLY 2/3rds OF ON-DEMAND DEALS GO TO CALIFORNIA STARTUPSSince 2010, 65% of on-demand mobile financing deals in the U.S. went to Cali-headquartered companies. 18% of deals over the period went to NY-based on-demand startups

NUMBER OF INVESTORS IN ON-DEMAND STARTUPS EXPLODESIn 2010, there were under 20 VC investors that had done a deal in on-demand mobile services. At the end of April 2015, that figure has risen to 198. Said another way, there are 14x the number of investors in the on-demand space.

On-Demand Financing Trends

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THE ON-DEMAND ECONOMY: $9.4B RAISED ACROSS 263 DEALS SINCE 2010On a year-over-year basis, funding to on-demand companies jumped 514% 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.

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Data through April 30, 2015.

THE ON-DEMAND ECONOMY WITHOUT UBER: $3.89B RAISED – 2015 ON PACE FOR NEW RECORDSince 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.

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Data through April 30, 2015. Chart does not include Uber financings.

Q1’15 SAW OVER 4X MORE FUNDING TO ON-DEMAND COMPANIES THAN Q1’14How hot is the on-demand economy? Q1’15 marked the highest quarterly funding total on record, as on-demand companies raised $787M across 22 deals. On-demand mobile companies raised over $500M in three of the past four quarters each. (note: figures are sans Uber)

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Data through Q1 2015. Chart does not include Uber financings.

UBER IS A JUGGERNAUT: HOW MUCH OF ON-DEMAND FUNDING HAS GONE TO UBER?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.

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Data through April 30, 2015.

ON-DEMAND SEED DEAL SHARE HITS FIVE-YEAR LOW IN 2014In 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.

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Where is all this data from?The CB Insights platform has the details on each and every deal in the on-demand economy. That includes

all of 250+ financings in this report.

Some of our happy customers

NEARLY 2 OF EVERY 3 ON-DEMAND MOBILE DEALS GO TO CALIFORNIA STARTUPSSince 2010, 65% of on-demand mobile financing deals in the U.S. went to California-headquartered companies. 18% of deals over the period went to New York-based on-demand startups ranging from Handy to Maple to Alfred.

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ON-DEMAND DEAL SIZES BLOW PAST TYPICAL MOBILE DEALSOn-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.

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LUDICROUS SPEED: 12 ON-DEMAND STARTUPS HAVE RAISED THREE ROUNDS WITHIN 18 MONTHSOn-demand startups are also raising at a faster velocity. Since the start of 2010, there are over 10 startups that have raised three VC funding rounds (seed VC through Series E+) in the span of 1.5 years or less.

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Company Boxed ClassPass Handy Homejoy Hotel Tonight Instacart

Total Months Between Rounds 1-3 16.8 9.5 17.2 9 12.9 17.7

Company Lyft DoorDash Sprig TaskRabbit Thumbtack Uber

Total Months Between Rounds 1-3 14 17.5 17.2 15.3 14.2 15.4

Most Well-Funded Companies

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THE MOST WELL-FUNDED ON-DEMAND STARTUPSThe top 5 most valuable startups in the on-demand economy are all part of the billion-dollar club and are valued in aggregate at a whopping $56.5B.

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Company Select Early InvestorsTotal Disclosed Funding

$5.51BFirst Round Capital, Benchmark, Lowercase Capital, Menlo Ventures, Goldman Sachs

$862.5MFloodgate, K9 Ventures, Mayfield Fund, Forerunner Ventures, Andreessen Horowitz

Y Combinator, Sequoia Capital, Y Ventures, Greylock Partners

$794.8M

Y Combinator, KhoslaVentures, Sequoia Capital, Canaan Partners, SV Angel

$275M

$197.8M European Founders Fund, SoftTech VC, Sequoia Capital

THE MOST WELL-FUNDED ON-DEMAND STARTUPS

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Company Select Early InvestorsTotal Disclosed Funding

$148.8M MHS Capital, Javelin Venture Partners, Sequoia Capital

$108.3MRockPort Capital Partners, AIG Investments, CIBC Capital Partners, Canyon Partners

Battery Ventures, AccelPartners, First Round Capital, Forerunner Ventures

$80.3M

Access Industries, KreosCapital, Vostok Nafta

$68M*

$62.1M Sherpa Ventures, Homebrew

*Gett raised $25M from Vostok Nafta in Aug 2014 as part of a larger $150M round it was raising.

THE MOST WELL-FUNDED ON-DEMAND STARTUPS

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Company Select Early InvestorsTotal Disclosed Funding

$59.7MY Combinator, SV Angel, CRV, Khosla Ventures, Sequoia Capital

$58.8MHighland Capital Partners, BoxGroup, General Catalyst Partners

SoftTech VC, Matrix Partners, Crosslink Capital, Founders Fund, Expansion VC, Spark Cap

$57.5M

MHS Capital, Battery Ventures, Accel Partners, GreylockPartners

$56.7M

$55.1M Google Ventures, August Capital, Shasta Ventures, GM Ventures

On-Demand Investors

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INVESTORS IN THE ON-DEMAND ECONOMY GROW 14X SINCE 2010In 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.

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Investors in the On-Demand Economy: Then and Now

Investor

2010 2015 YTD

SV ANGEL AND ANDREESSEN HOROWITZ ARE MOST ACTIVE IN ON-DEMAND MOBILE STARTUPSSV 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.

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Rank Investor Rank Investor

1 SV Angel 13 Google Ventures2 Andreessen Horowitz 13 Lerer Hippeau Ventures3 First Round Capital 13 Sequoia Capital4 General Catalyst Partners 19 RRE Ventures4 Slow Ventures 19 Kleiner Perkins Caufield & Byers4 CrunchFund 19 New Enterprise Associates7 Sherpa Ventures 19 Battery Ventures7 500 Startups 19 Accel Partners7 A-Grade 19 Thrive Capital

10 Greylock Partners 19 Forerunner Ventures10 Founders Fund 19 Canaan Partners10 BoxGroup 19 SoftTech VC13 Menlo Ventures 19 Expansion VC13 Redpoint Ventures 19 Lightspeed Venture Partners13 Red Swan Ventures

Most Active VC Investors in On-Demand Mobile Services, 2010 - 2015 YTD

THE MOST ACTIVE EARLY-STAGE VC INVESTORS IN ON-DEMAND MOBILE STARTUPSSV Angel also topped the most active VC investors in on-demand mobile services at the early-stage followed by First Round Capital and Andreessen Horowitz and 500 Startups. Prominent early-stage on-demand investors include both micro VCs under $100M to some of the largest multi-stage VC firms including GreylockPartners and Accel Partners.

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Rank Investor Rank Investor

1 SV Angel 5 CrunchFund2 First Round Capital 12 Redpoint Ventures3 Andreessen Horowitz 12 Lerer Hippeau Ventures3 500 Startups 14 RRE VEntures5 Sherpa Ventures 14 Menlo Ventures5 Greylock Partners 14 SoftTech VC5 General Catalyst Partners 14 Expansion VC5 A-Grade 14 Battery Ventures5 Slow Ventures 14 Google Ventures5 BoxGroup 14 Accel Partners

Most Active Early-Stage VC Investors in On-Demand Mobile Services, 2010 - 2015 YTD

MID-STAGE VC INVESTORS IN ON-DEMAND STARTUPSActively-investing VC firms at the mid-stage (Series B/Series C) include First Round Capital, Founders Fund, Sequoia Capital, Menlo Ventures and Kleiner Perkins Caufield & Byers.

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Rank Investor Rank Investor

1 First Round Capital 6 Kleiner Perkins Caufield & Byers2 Sequoia Capital 6 Canaan Partners2 Menlo Ventures 6 Andreessen Horowitz2 Founders Fund 6 Shasta Ventures2 General Catalyst Partners 6 Google Ventures6 Sherpa Ventures 6 Slow Ventures

Most Active Mid-Stage VC Investors in On-Demand Mobile Services, 2010 - 2015 YTD

APPENDIX: 67 ACTIVE VENTURE CAPITAL INVESTORS IN ON-DEMAND STARTUPS

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1 - 17 18 - 34 35 - 51 52 - 67

SV Angel Sequoia Capital Shasta Ventures Wellington PartnersAndreessen Horowitz RRE Ventures Collaborative Fund Correlation VenturesFirst Round Capital Kleiner Perkins Caufield & Byers Benchmark Capital e.venturesGeneral Catalyst Partners New Enterprise Associates Lowercase Capital Pejman Mar VenturesSlow Ventures Battery Ventures Innovation Endeavors Kima VenturesCrunchFund Accel Partners Signatures Capital Quest Venture Partners500 Startups Thrive Capital Floodgate ENIAC VenturesSherpa Ventures Forerunner Ventures SOSventures Amicus CapitalA-Grade Canaan Partners Matrix Partners Chicago VenturesBoxGroup SoftTech VC Base Ventures GGV CapitalFounders Fund Expansion VC Mayfield Fund Union Square VenturesGreylock Partners Lightspeed Venture Partners Softbank Capital CRVMenlo Ventures Bessemer Venture Partners Comcast Ventures Vayner RSERedpoint Ventures Foundation Capital Atlas Venture DAG VenturesRed Swan Ventures Khosla Ventures MHS Capital Huron River VenturesGoogle Ventures Trinity Ventures Upfront Ventures LightbankLerer Hippeau Ventures Spark Capital Montage Ventures

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Where is all this data from?The CB Insights platform has the details on each and every deal in the on-demand economy. That includes

all of 250+ financings in this report.

Some of our happy customers

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“Designed by a VC insider who truly knows the space and understands end-user needs.”

Greg BaeInvestments & Biz DevComcast Ventures

Jack LeeneyPortfolio ManagerTelefonica Ventures

“CB Insights are changing the way investors access private company information.”

Kevin DiestelInvestorSapphire Ventures

“We've found CBI to have the best data for the most accurate market view.”

“They have the best quality data in the market for anyone looking to get an inside look at private company financings.”

Ian SigalowPartnerGreycroft Partners

“CB Insights' intuitive user interface, analytical capabilities, and detailed investment information create a very powerful tool for our team's research needs.”

Nate D’AnnaCorporate DevelopmentCisco

“We track dealflow, understand valuation multiples, analyze industry trends and identify comparable companies. It is great to see CB Insights innovating in the venture capital data space.

Will PorteousGeneral PartnerRRE Ventures

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The most publicly reference’able customers of anyone in the industry. Read more at www.cbinsights.com/customer-love

Web | www.cbinsights.com

Twitter | @cbinsights

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