Retail Technology Startup Highlights  – Q1 2018

Here is our Q1 2018 summary report on the retail technology startup sector. The following report includes an overview, recent activity, and a category deep dive.

To learn more about our complete retail technology report and research platform, visit us at www.venturescanner.com or contact info@venturescanner.com.

Fintech Sector Matures As Funding Shifts to Later Stages

As previously seen, funding into financial technology has increased significantly in recent years. Now we are going one level deeper on our fintech report and research platform to examine its funding by round. From our analysis we can conclude that the fintech sector is continuing to mature over time.

This conclusion comes from two takeaways:

  • Funding amounts are shifting from early-stage to later-stage events
  • Funding counts are dropping in the Seed round and growing elsewhere

We’ll explain these takeaways with some graphics that show fintech funding activity by round.

To help set the stage, the graphic below illustrates fintech funding amounts over time. As you can see, the sector’s overall funding showed robust growth over the past few years.

Fintech Funding by Quarter
Fintech Funding by Quarter

Fintech Funding Amounts Shifting to Later-Stage Events

Let’s examine the fintech funding amounts by round as a percentage of the total, which show changes independent of the total size.

Fintech Funding Amount Percentages
Fintech Funding Amount Percentages

As shown in the graph, the funding amounts dropped in the Seed and Series A rounds and increased in the Late Stage from 2012 to 2017. Specifically, Seed round funding amounts shrunk from 9% to 3%, and Series A amounts shrunk from 23% to 11%. On the other hand, Late Stage funding amounts grew from 2% to 24% over the same time period.

We see that the funding amount percentages by round indicate a shift from early-stage to later-stage events from 2012 to 2017, would the funding event count graph show the same trend? Let’s examine that in the next section to find out.

Fintech Funding Counts Dropping in Seed Round and Growing in All Other Rounds

The below graph shows the fintech funding counts by round as a percentage of total events.

Fintech Funding Count Percentages
Fintech Funding Count Percentages

This graph supports our previous observation from the funding amount graph. In particular, Seed round funding counts decreased from 63% to 30% from 2012 to 2017. As a result, the funding counts in all other rounds increased by various magnitudes.

Conclusion: Fintech Sector Continues to Mature Over Time

In summary, we have seen that fintech funding amounts shifted from Seed and Series A to later-stage events. Fintech funding counts also dropped in the Seed round and grew in all other rounds. These observations led us to conclude that the fintech sector is continuing to mature over time.

What are your thoughts on this? Let us know in the comments section below.

To learn more about our complete financial technology report and research platform, visit us at www.venturescanner.com or contact us at info@venturescanner.com.

Deep Learning Applications and Computer Vision Platforms Lead AI Exit Activity

Last quarter we reviewed artificial intelligence exit trends and saw strong growth. We now dig in one level deeper on our AI report and research platform to examine exits by category. We conclude that Deep Learning Applications and Computer Vision Platforms are at the forefront of AI exit activity.

This conclusion was derived from two takeaways:

  • The Deep Learning Applications category leads in the number of exits
  • The Computer Vision Platforms category leads in acquisition amount

We’ll illustrate these takeaways with some graphics that show AI exit activity by category.

To help set the stage, the graphic below shows AI exit activity over time. As you can see, the sector’s exit activity experienced strong growth over the past few years.

Artificial Intelligence Exits by Quarter
Artificial Intelligence Exits by Quarter

Deep Learning Applications Leads AI in the Number of Exits

Let’s examine the exit events for each AI category. Exit events include both acquisitions and IPOs. The below graph highlights the number of AI exit events by category.

Artificial Intelligence Exits by Category
Artificial Intelligence Exits by Category

This graph shows that the Deep Learning Applications category leads the sector with 71 exit events. Natural Language Processing comes next with 46 exit events.

Deep Learning Applications includes companies that utilize computer algorithms to optimize operations in vertically specific use cases. Examples include using deep learning technology to detect banking fraud or to identify relevant sales leads. Some example companies are Sift Science, SparkCognition, Sumo Logic, and BenevolentAI.

Let’s now see how AI categories compare with one another by acquisition amount.

Computer Vision Platforms Leads AI in Acquisition Amount

The graph below shows the acquisition amounts in different AI categories.

Artificial Intelligence Acquisition Amounts by Category
Artificial Intelligence Acquisition Amounts by Category

We can see from this graph that the Computer Vision Platforms category leads all the other AI categories by far. The total acquisition amount in this category is around $16 billion. Computer Vision Platform companies process images to algorithmically derive information from them and recognize objects. Some example companies in this category include Cortica, Blippar, Kairos, and Clarifai.

Computer Vision Platforms has seen some large acquisitions in recent years. Mobileye was acquired by Intel in March 2017 for around $15 billion. Movidius was acquired by Intel in September 2016 for $400 million. Magic Pony Technology was acquired by Twitter in June 2016 for $150 million.

The acquisition amount in Computer Vision Platforms represents 72% of all AI acquisition activity. It’s noteworthy that its acquisition amount is more than ten times the next category, Deep Learning Platforms. Additionally, Computer Vision Platforms’ acquisition amount is highly concentrated, with 15/16 of the amount coming from the $15 billion Mobileye acquisition.

Conclusion: Deep Learning Applications and Computer Vision Platforms Lead AI Exit Activity

In summary, we have examined AI exit activity by the number of exit events and acquisition amount. The Deep Learning Applications category leads the sector in the number of exit events. The Computer Vision Platforms category leads in acquisition amount. It will be interesting to see which other categories take the lead in AI exit activity in the rest of 2018.

To learn more about our complete artificial intelligence report and research platform, visit us at www.venturescanner.com or contact us at info@venturescanner.com.

Health Technology Startup Highlights  – Q1 2018

Here is our Q1 2018 summary report on the health technology startup sector. The following report includes an overview, recent activity, and a category deep dive.

To learn more about our complete health technology report and research platform, visit us at www.venturescanner.com or contact info@venturescanner.com.

Health Technology Sector Overview – Q1 2018

The Health Technology sector contains companies focused on the digitization of healthcare across the value chain from the providers, to the payers, to the patients and consumers. They often optimize existing medical practices, provide health information to individuals, or create new frontiers in medicine.

In this post we examine the different components of Health Technology and how they make up this startup ecosystem. On our Health Technology research platform, we have classified the companies into 22 categories. This blog post will illustrate what these categories are and which categories have the most companies. We will also look at how these categories compare with one another in terms of their funding and maturity.

Digital Medical Devices Is the Largest Health Technology Category

Let’s start off by looking at the Sector Map for the Health Technology sector. As of March 2018, we have classified 2139 Health Technology startups into 22 categories that have raised $64 billion. The Sector Map highlights the number of companies in each category. It also shows a random sampling of companies in each category.

Health Technology Sector Map
Health Technology Sector Map

We see that Digital Medical Devices is the largest category with 288 companies. This category contains companies that build IT-enabled medical and diagnostic devices for doctors. These devices include surgical tools, monitoring equipment, and detection equipment. Some example companies are Signostics, MediBeacon, Stimwave, and AliveCor.

We have seen what the different categories making up this sector are and the number of companies in each. What about their funding and maturity in relation to one another? Let’s look at our Innovation Quadrant to find out.

Healthcare Robotics Is the Heavyweight Category in Health Technology

Our Innovation Quadrant divides the Health Technology categories into four different quadrants.

Health Technology Innovation Quadrant
Health Technology Innovation Quadrant

We see that the Pioneers quadrant has the most Health Technology categories with 15. The Pioneer categories are in the earlier stages of funding and maturity. The Established quadrant has three categories have reached maturity with less financing. These three categories are EHR/EMR, Clinical Backend, and Population Health Management.

The Disruptors quadrant also has three categories: Genomics, Health Payments, and IoT Fitness. These three categories have acquired significant financings at a young age. The Heavyweights quadrant contains the Healthcare Robotics category. This category has reached maturity with significant financing. On a relative basis, the companies in this Heavyweight category have reached more maturity and acquired more funding.

We’ve now seen the Health Technology categories and their relative stages of innovation. How do these categories stack up against one another? Let’s look at the Total Funding and Company Count Graph.

Digital Medical Device Startups Have the Most Funding and Companies

The graph below shows the total amount of venture funding and company count in each category.

Health Technology Total Funding and Company Count
Health Technology Total Funding and Company Count

As noted earlier, the Digital Medical Devices category leads Health Technology with 288 companies. The above graphic highlights that Digital Medical Devices also leads in funding with almost $13 billion. Some of the best-funded companies in this category are HeartFlow ($477M), Proteus Digital Health ($422M), and ViewRay ($418M).

Conclusion: The Digital Medical Devices Category Leads the Sector

From the above analysis, we can see that Digital Medical Devices dominates Health Technology in funding and company count. On the other hand, Healthcare Robotics stands out as the Heavyweight category in the sector, having reached maturity with significant average funding per company versus companies in other categories. It’ll be interesting to see how the Health Technology landscape will change and develop throughout the rest of 2018.

To learn more about our complete Health Technology report and research platform, visit us at www.venturescanner.com or contact us at info@venturescanner.com.

Blockchain Technology Seeing New Paradigm With Dramatic Shift to ICOs

With all the ICO buzz in the Blockchain sector, we dove into our Blockchain Technology report and research platform to examine how significant this new financing model has been. It comes as no surprise that we can conclude that the Blockchain Technology sector is experiencing a new financing paradigm.

This conclusion comes from two takeaways:

  • Funding amounts shifted dramatically to ICOs
  • Funding counts saw a drop in early-stage events with the emergence of ICOs

We’ll explain these takeaways with some graphics that show Blockchain Technology funding activity by round.

To help set the stage, the graphic below illustrates Blockchain Technology funding amounts over time. As you can see, the sector’s overall funding skyrocketed in the past few years. Additionally, Q1 2018 is the best Q1 on record.

Blockchain Technology Funding by Quarter
Blockchain Technology Funding by Quarter

Blockchain Technology Funding Amounts Shifted Dramatically to ICOs

We’ll start off by examining the annual Blockchain Technology funding amounts by round.

Blockchain Technology Funding Amount by Round
Blockchain Technology Funding Amount by Round

As shown in the graph, the funding amounts in most rounds rose gradually from 2012 to 2015. From 2015 onwards, funding amounts shifted dramatically to ICO events. In fact, the funding amount in ICO events amounted to almost $2B in 2017.

We’ll now look at the Blockchain Technology funding amount by round as a percentage of the total, which shows changes independent of the total size.

Blockchain Technology Funding Amount Percentages
Blockchain Technology Funding Amount Percentages

The above graph supports our previous observation that funding amounts saw substantial shifts to ICOs from 2015 to 2017. Initially, early-stage events accounted for almost all of the sector’s funding amounts from 2012 to 2015. In 2016, ICOs emerged on the horizon and took over 27% of the sector’s funding amounts. By 2017, there was a complete shift, with ICO events dominating the sector’s funding amounts at 73%.

So we see that the funding amount graphs indicate a drastic shift to ICO events from 2015 to 2017. Would the funding event count graphs show the same trend? Let’s examine them in the next section to find out.

Blockchain Technology Funding Counts Saw Emergence of ICOs

Let’s now look at the annual Blockchain Technology funding event counts. The below graph shows the Blockchain Technology funding counts by round as a percentage.

Blockchain Technology Funding Count Percentages
Blockchain Technology Funding Count Percentages

This graph confirms our previous observations. Specifically, ICOs represented 3% of the sector’s funding counts in 2016 and grew to 35% in 2017. As a result, the funding counts in most early-stage rounds decreased by 2017.

Conclusion: The Blockchain Technology Sector Is Seeing a New Paradigm

In conclusion, we see that Blockchain Technology funding rounds and events shifted significantly to ICOs from 2015 to 2017.

To learn more about our complete Blockchain Technology report and research platform, visit us at www.venturescanner.com or contact us at info@venturescanner.com.

Insurance Technology Startup Highlights  – Q1 2018

Here is our Q1 2018 summary report on the Insurance Technology startup sector. The following report includes an overview, recent activity, and a category deep dive.

To learn more about our complete Insurance Technology report and research platform, visit us at www.venturescanner.com or contact info@venturescanner.com.