Here is our Q3 2018 summary report on the marketing technology startup sector. The following report includes a sector overview and recent activity.
We are excited to announce the launch of our regulatory technology (regtech) coverage!
Regtech companies help businesses automate or streamline activities around regulatory compliance. Examples include compliance for business operations, financial services, health services, and manufacturing.
This post will introduce and define the different categories that make up the regtech sector.
The definitions of the regtech categories are as follows:
Business Regulation Compliance: Companies that help businesses comply with regulations affecting their operations. Examples include compliance for HR training, equity compensation, marketing, and document management.
Compliance Tracking and Reporting: Companies that help businesses track current, changing, and emerging regulations, as well as create reports according to those regulations. Examples include regulation databases and the sending of reports to the appropriate government agencies.
Data and Privacy Compliance: Companies that help businesses comply with regulations around the integrity and security of their data. Examples include data encryption, data recovery, cloud security, and prevention of unauthorized access.
Financial Crime and Identity Compliance: Companies that help financial institutions comply with regulations focused on identity related crimes. Examples include client on-boarding (Know Your Customer), payment fraud (Anti Money Laundering), account takeover, and identity verification.
Financial Services General Compliance: Companies that help financial institutions comply with regulations. Examples include trade monitoring, loan monitoring, data management, and financial adviser compliance tools.
Governance, Risk, and Compliance: Companies that implement Governance, Risk, and Compliance (GRC) processes to help businesses reliably achieve objectives, address uncertainty, and act with integrity. Examples include performing internal audit operations to ensure compliance with internal guidelines and regulations.
Health Services General Compliance: Companies that help health service institutions, such as hospitals and medical labs, comply with regulations. Examples include health data protection and pharmaceutical tracking solutions.
Network Security Compliance: Companies that help businesses comply with regulations around cyber-security risks. Examples include the mitigation of cyber-security risks and reviews of IT infrastructure and network devices.
Quality and Sustainability Compliance: Companies that help businesses comply with Quality Management Systems (QMS) and Environment, Health, and Safety (EHS) requirements. Examples include the implementation of manufacturing best practices and safety incident report tracking.
Tax Regulation Compliance: Companies that help businesses comply with national and international tax regulations. Examples include automatically calculating taxes and submitting payments on time in the correct formats.
To learn more about our complete regulatory technology report and research platform, visit us at www.venturescanner.com or contact us at email@example.com.
Our recent insurance technology quarterly highlights provided a state of the sector summary. Now we’re performing a deep dive examination of insurtech exits to see how things are shaping up on the M&A and IPO front.
Based on analysis on our insurance technology research platform, we see that exit activity in the first half of 2018 is trending down from the previous two years.
2018 Mid-Year Insurance Technology Exit Activity Lower Than 2017 And 2016
Let’s take a closer look at the number of insurance technology exit events by year.
The above graphic shows 13 exits in the first half of 2018. For the past three years, Q3 and Q4 accounted for 53% of total exit events on average. If that trend holds, 2018 exits will finish the year lower than 2017 and 2016, but higher than 2015. We’ll see if the second half of the year changes this trend!
We’ve previously found that health technology funding is on an overall upward trend. Now we are taking a closer look on our health technology research platform to compare funding by category. Our analysis reveals two observations:
- The Genomics category leads the sector in Q2 funding
- The Digital Medical Devices category leads the sector in all-time funding
We’ll highlight these observations with some graphics and discussions below.
The Genomics Category Leads Health Technology In Q2 Funding
To start off, let’s review the amount of funding raised this quarter by each category within health technology.
The above graphic highlights that the Genomics category leads the sector in Q2 funding with just under $1B. Its funding is 1.4 times the funding of the next category, Digital Medical Devices at $700M.
Genomics companies utilize human genome data for analytics, prevention, and treatment. Some example companies in this category are 23andMe, Helix, and Counsyl.
Let’s now investigate how these categories’ funding compare with each other historically.
The Digital Medical Devices Category Leads the Sector in All-Time Funding
The graph below shows the all-time funding for different health technology categories. The Q2 funding and growth rates of these categories are also highlighted.
As the bar graph indicates, the Digital Medical Devices category leads the sector in total funding at almost $14B. The Genomics category follows in a close second place with an all-time funding of $13.6B. These two categories’ funding are more than twice the funding of the next category, IoT Fitness at $6.6B.
Digital Medical Device companies build IT-enabled medical and diagnostic devices for doctors. These devices include detection equipment, monitoring equipment, and surgical tools. Some example companies are Signostics, MediBeacon, Stimwave, and AliveCor.
In summary, it’s clear that the Genomics and Digital Medical Devices categories are leading the sector in funding. Let’s see how the the rest of 2018 shapes up for health technology!
Our latest quarterly update for real estate technology highlighted the most recent activity in the sector. Now, with over half the year complete, we’re performing a mid-year status check on how exits in the space are shaping up.
Based on analysis on our real estate technology research platform, we see that exit activity in the first half of 2018 is slightly down from 2017.
2018 Mid-Year Real Estate Technology Exit Activity Lower Than 2017 But Higher Than 2016
Let’s take a closer look at the number of real estate technology exit events by year.
The above graphic shows 20 exits in the first half of 2018. For the past three years, Q3 and Q4 accounted for 57% of total exit events on average. If that trend holds, 2018 exits will finish the year slightly lower than 2017, but higher than 2016. We’ll see if the second half of the year changes this trend!
To learn more about our complete real estate technology report and research platform, visit us at www.venturescanner.com or contact us at firstname.lastname@example.org.