Restaurant tech startup trends. E-commerce subscription financing. Automating the last mile.
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So org charts aren't evil?

Hi there,

Congratulations to Ashley Mayer of Social Capital for this tweet which is on point. Well done. I've been saying this forever.

Seriously, one of my favorite things when a startup exits is all the self-aggrandizing blog posts and tweets by investors congratulating the startup. This is where you see lots of "humbled to have been involved" and "proud to have been part of the journey" type nonsense. Stop it. 

So remember Ashley's wise words the next time a portfolio company exits.

Soup or salad?

We look at restaurant tech startup trends since 2012. Investors have poured $403M into the category across 69 deals so far this year.

Ambition for the wrong things

When I read a comment like the one below by a Github exec, my head hurts.


It's hard enough to build a great product/business, but the thought of "hacking on the future of work" at the same time seems like a misallocation of energy/resources TBH.

Tod Sacerdoti who sold Brightroll to Yahoo for $640M nicely summarized why focusing on these other types of innovation is a distraction (see blurb for his essay).

As we've built CB Insights (hit 100 teammates last week), we've looked at these avant-garde ideas from time-to-time to see if there might be some merit in adopting them. But we've never tried any of these techniques for fear that they would not scale and because they often sounded good but couldn't find examples of orgs that actually scaled with them. Sure, some of these things might work at 25 or 50, but will they work at 250 or 500?

And now we're seeing that these innovations tend to fray or break as companies get larger. Companies who've tried the no management layer thing all pull back on it or have issues. The concept popularized by Tony Hsieh of Zappos referred to as Holocracy (or is it Teal?) or the folks at Valve has been tried in some form by Zappos, Medium, Buffer, and Github. And all have pulled back on it or ended it altogether.

Has any startup company reached scale AND completely rethought how their organization should work successfully? And no, Google's free lunches are not an example.

Growth in a box

We look at financing to e-commerce subscription companies, which we define as startups delivering nonperishable goods to customers’ doors on a predetermined schedule. Q2’16 saw deals increase for the second-consecutive quarter.

Chocolate ice

If there was a problem, yo I'll solve it.
Check out my surge algorithm, while my driver dissolves it.

Automating the last mile

We examined four early-stage startups building autonomous drones to drive down the cost and difficulty of last-mile delivery. Using the CB Insights company comparison tool, we looked at 4.

From virtual nurses to drug discovery

We identified over 90 companies that are applying machine learning algorithms and predictive analytics to reduce drug discovery times, provide virtual assistance to patients, and diagnose ailments by processing medical images, among other things.

The Industry Standard

VentureBeat. Valery Komissarov (@val_komissarov) on promising areas in space tech with a reference to CB Insights funding and deals data.

Electronics Weekly. David Manners discusses the drop in investment within the IoT realm and cites CB Insights funding data.

Tech Crunch. Qasim Mohammad (@qasimamohammad) on the opportunities and challenges in commercializing space privately with a reference to CB Insights data on frontier tech investment.

Happy Monday.

I love you.


P.S. Our insurance tech newsletter created by Matt Wong (@mlcwong) crossed 10k subscribers in less than 9 months. That is way quicker than the CB Insights newsletter got to 10k. You should subscribe to Insurance Tech Insights to stay on top of fintech's hottest area for investment.


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Stay up-to-date on reports, webinars, events, and more.

Funding to restaurant tech startups headed toward record annual high

Despite a dollar drop in Q2'16, deal count remains high to software & hardware restaurant management startups. See the data.
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Deals to subscription e-commerce companies on the rise again

Barkbox and Loot Crate saw Q2's largest deals, while Ipsy and The Honest Company drove funding last year. Read about it.
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Startups working on drone delivery by air and land

Startups working on both aerial and ground-based delivery drones take further steps towards commercialization. See the list.
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90+ artificial intelligence startups in healthcare

Khosla Ventures has backed 5 of the startups on the map. Check out the infographic.
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The Blurb

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

$0 to $640 million: Non-obvious Lessons Learned at Brightroll. Tod Sacerdoti (@todsacerdoti) pens a great essay on the lessons learned founding, building, and selling a company.

Why Github abandoned its bossless workplace. Melissa Mittelman (@melissa_mitts) of Bloomberg dives into Github's failed experiment to get rid of managers.

On receiving 'radical candor.' Kim Scott (@kimballscott) and Russ Laraway (@ral1) on asking for feedback and learning how to listen.
First Round Review

Cash. Jesse Felder's (@jessefelder) observation on how cash has become the most hated asset class out there.
The Felder Report

AI wants to make us healthier. Nan Li (@nanli) on the market opportunities that are arising as healthcare goes digital.

The need for a broad portfolio. Paul Grossinger (@pgrossinger) details the reasoning behind, and strategy for, implementing a broad basket early-stage investment strategy.

Sorry, Uber. Andy Swan looks at social data that validates the Lyft growth story and valuation demands.

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