United States of unicorns. Google, Apple auto patent activity. AI deals and dollars.

Family is 2nd. Unpopular but true?

Hi there,

Yesterday, we released our 2017 Tech IPO Pipeline Report. Some highlights below.

As you'll see in the report, 2017 should see an uptick in activity. Part of that will be driven by reduced activity by hedge funds and mutual funds. In other words, late stage money is drying up and the "private IPOs" as described by Josh Kopelman of First Round Capital are not as easily possible.

Here are some of our top picks to IPO in 2017 based on our Mosaic scores (excludes folks like Snap who've publicly stated their intentions to go public).

And finally, A16Z looks well positioned if the IPO gods do smile down upon us in 2017.

Grab the entire 2017 Tech IPO pipeline report here.

Work then life

In a November newsletter, we'd highlighted the following comment by Marc Andreessen:

"Accomplishing great things by working smart but not working hard is, as far as I can tell, almost entirely a myth."

At the time, we wondered if anyone had ever built a large company while maintaining "work life balance."

Last week, VC Jason Lemkin wrote a post on the 22 reasons he won't fund you. #22 is something most VCs don't usually say. He writes that if trying to build a unicorn, family often comes second. 

We asked folks on Twitter if you could build a unicorn ($1B+ company) without making some of the sacrifices that Lemkin mentions in his post. 2/3 think the sacrifice is required.

U-S-A, U-S-A

The US is home to 98 unicorns, private companies that are each valued at $1B+. We mapped out the locations of every US-based unicorn cuz you know a map of unicorns is the gift you always wanted but were afraid to ask for.

Patents, young grasshopper

We studied the patent application trends of Amazon, Apple, Google, and Microsoft across the auto tech space. Google has led the pack in vehicular patent applications since 2009.

Brain boost

We look at financing trends in the AI space since 2012. Deals have already reached a 5-year high this year (as of 12/20/2016) and the top round went to Israel-based ride-hailing app Gett.

The Industry Standard

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

Forbes. Alex Konrad (@alexrkonrad) reports on IPO potential in 2017 and a banner year for a16z, and refers to the CB Insights 2017 Tech IPO Pipeline Report.

Silicon Labs. Alex Koepsel (@alexkoepsel) writes about smart home technology and references CB Insights research on the space.

GeekWire. Taylor Soper (@taylor_soper) names the top 5 companies that are most likely to IPO in 2017 and refers to the CB Insights 2017 Tech IPO Pipeline Report.

CNNMoney. Zahraa Alkhalisi (@zahraa1) on whether Amazon will buy the Arab unicorn, with a reference to CB Insights valuation data.

Deal Street Asia. A report on Zhongan Online P&C Insurance Co. and its decision to scrap plans for an IPO in Hong Kong or the US and instead focus on listing in mainland China.

DMN. Kim Davis (@kimdavis) writes about the marketing tech unicorns in 2017's IPO pipeline and refers to the CB Insights report.

I love you.


P.S. We're going big time. Future of Fintech is coming to Lincoln Center — June 26 to 28, 2017.

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.

Minnesota is home to Code42 Software, a SaaS provider of endpoint data protection and security; Torax Medical, a medical device company; and LeadPages, a landing page builder. The state has also produced Bright Health, a health insurance company that ranks as having one of the top deals in insurance tech in 2016 YTD. There were over 30 deals to VC-backed companies in Minnesota in 2016 year-to-date. Here are 5 of the largest.
  • CVRx, developers of a proprietary implantable technology for treatment of blood pressure and heart failure, raised a $93M Series G.
  • Bright Health raised an $80M Series A.
  • Inspire Medical Systems, developers of a neurostimulation system for treatment of Obstructive Sleep Apnea, raised a $37.5M Series F.
  • Torax Medical raised a $25M Series E.
  • Zipnosis, an online treatment and diagnosis platform, raised a $17M Series A.

The United States of Unicorns

Collectively, US unicorns are worth approximately $66B. Combined, these companies have raised just over $12B. See the map.
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Google, Apple lead top tech corporates in vehicle patent activity

We analyzed the vehicle-related patent activity of Amazon, Apple, Google, and Microsoft. See the data.
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AI deals and dollars have already reached record annual highs

Data Collective is the most active VC investor in artificial intelligence startups and has backed more than 20 companies since 2012. See the data.
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The Blurb

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

Where are we in the cycle today? Anoushka Vaswani (@anoushkavaswani) dives into the software space to illustrate where we are today.

IPOs. Ravi Mhatre (@ravi_lsvp) talks about the new "enterprise cloud companies" and where they are heading.
LinkedIn Pulse

Strategic communication. Myk Pono (@myxys) on how to develop strategic messaging and positioning.
Startup Grind

Valuation. Josh Brown (@reformedbroker) on how to respond to client concerns on valuation.
The Reformed Broker

Risk cannot be destroyed. Corey Hoffstein (@choffstein) says diversification does not destroy risk — it changes the risk you are exposed to.
Newfound Research
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