Startup failure rates. Most innovative consumer product. Cyber Defenders report.

Wantrepreneurs 'R Us

Hi there,

Yesterday's newsletter got clobbered by spam filters. We are unsure why.

  • Was it the reference to Trump's Innovation office?
  • Was it Mike Bloomberg and Darth Tater?
  • Was it the pic of a kid eating a brain?
In any case, it was really good. Read it.

It also had two great market maps which I've put portions of below to entice you further — AI in Fintech and The Digital Hospital. Go read it. We'll wait.

Now back to our regularly scheduled program

We just released our 71-page Cyber Defenders Report, covering 2017 cybersecurity trends to watch and high-momentum startups with the potential to shape the future of digital resilience.

You can find some highlights scattered below.

But first.

Your odds of becoming a unicorn are tiny.

Like super tiny.

Startup failure rates

We followed a cohort of over 1,000 startups from the moment they raised their first seed investment to see what happens to them. Of the 1,098 tech companies we tracked, less than half, or 46%, managed to raise a second round of funding.

0.91% of the cohort went on to become unicorns.

This dude is lazy AF

He will not build a unicorn.

Bracket time

It's March Madness for nerds once again.

Last March, we asked
who is the tech founder/CEO you admire most (winner: Elon Musk) and before that, we asked what VC would you want in your Series A (winner: Andreessen Horowitz)

Now we're asking what is the most innovative consumer product since the iPhone?

Round 1 closes April 2nd. Vote now.

Round 1 matches we expect to be close include:

  • Peloton Bike vs. The Squatty Potty
  • Thinx Period Underwear vs the Cronut
  • Doritos Locos Tacos vs Phantom I Drone
  • Google Cardboard vs Tide Pods
Vote now and change the face of product history forever.

Secure the unicorns

We looked at the private market companies valued at $1B+ in the cybersecurity space since 2012. Out of the 8 total unicorns, Tanium, valued at $3.5B, is the most valuable private cybersecurity company in the world.

Cyber Defender leaders

70% of the Cyber Defenders are located in the US, mostly in California and Massachusetts. The next highest concentration of Cyber Defenders are in Israel, followed by Switzerland, the UK, Australia, and Japan.


The Industry Standard

CB Insights data is the most trusted by those in the industry and the media. A few recent hits.

New York Times. Katie Benner (@ktbenner) writes about Kirsten Green of Forerunner Ventures and refers to the list of top VCs based on CB Insights data.

Tech in Asia. Terence Lee (@terenceleejx) digs into the world's top VCs and references CB Insights data used to compile the list.

Mashable. Jason Abbruzzese (@jasonabbruzzese) writes about Tencent's purchase of Tesla stock and references CB Insights investment data.

I love you.


P.S. Future of Fintech Conference tix go up by $1k on Saturday. Use code MarchMadness17 to get $1000 off until then.
Geographic Spotlight
Silicon Valley doesn't have a monopoly on innovation. Here's a look at startups, emerging industries, and deals elsewhere in the US and the world.

Ohio is home to Everything But The House, an online estate and consignment sale company and one of the most well-funded companies in the United States. Other companies to come out of the state include Paycor, an HR tech company; Avitae, a manufacturer of caffeinated water; and Jumpstart, an organization that supports the development of entrepreneurs. There were over 85 deals to VC-backed companies in Ohio in the last year. Here are 5 of the most notable.
  • MacroPoint, a freight tracking network, raised $44M from Susquehanna Growth Equity.
  • Everything But The House raised a $41.5M Series C from Greenspring Associates, Greycroft Partners, and Spark Capital.
  • Aerpio Pharmaceuticals, a biopharmaceutical company, raised $40M from investors including Novartis Venture Funds, Kearny Venture Partners, and Satter Investment Management.
  • Enable Injections, developer of wearable devices for injections, raised a $30M Series A from investors including Ohio Innovation Fund, ORI Fund, and CincyTech.
  • OnShift, a human capital management software company, raised $18M in Series D funding. Investors in the round included Draper Triangle Ventures, West Capital Advisors, and North Coast Angel Fund.

Cyber defenders report

2017 cybersecurity trends to watch and high-momentum startups with the potential to shape the future of digital resilience. Get the report.
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The venture capital funnel 

The venture capital funnel highlights the natural selection inherent to the venture capital process. 70% of companies are orphaned or die along the way. See the data.
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What is the most innovative consumer product since the iPhone?

Round 1 of the bracket closes Sunday, April 2nd. Vote now.
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The Blurb

A curated mix of articles on private companies, venture capital, emerging industries, and innovation.

Tech and the fake market tactic. Anil Dash (@anildash) discusses the transition from open internet markets to rigged markets to fake markets.
Anil Dash

Silicon Valley's quest to live forever. Tad Friend (@tadfriend) on whether billions of dollars worth of high-tech research can succeed in making death optional.

The New Yorker

A $100M offer. Micah Rosenbloom (@micahjay1) on what to do when you get a $100M offer for a "billion dollar" startup.

Brain computer interface. Fred Wilson (@fredwilson) digs into the concept of neural lace technology and what it could mean for society.
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