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The venture capital funnel. NetSuite gets acquired. Google's other bets.
CB Insights celebration

Hola, 

This week saw the failure of Take Eat Easy, a restaurant delivery startup out of Brussels that had scaled up to 20 cities across Europe, 350K customers, and a team of over 100 people. 

They felt they were on the right track but they were burning money, and were not able to close a third founding round despite the founders' best efforts (see This Week In Data, below). 

That’s farther than a majority of startups get. Our venture capital funnel research, which tracks startup failure rates at every stage, shows that only 40% of startups that are able to get seed funding make it to a second round. Only 23% make it to a third, and so on.

We’ve updated our list of startup post-mortems with accounts of why Take Eat Easy and 9 other startups failed in the last 6 months. One trend we notice is that 4 of the failures — including Take Eat Easy, Kitchensurfing, and Dinner Lab — were food startups, working in a space that has seen a big pullback in deals and funding

Have a good weekend,

Marcelo

@ballve



The Week In Data
  • 3 million: Twitter added only 3 million new monthly active users in Q2’16 (it now has 313 million), compared to Facebook which added 58 million to rise to 1.71 billion in the same quarter. The two companies announced earnings results this week, with Facebook beating expectations and Twitter falling short again. 
     
  • 4: The number of non-tech corporates that have acquired US-based venture-backed companies at valuation of $1B or more this year, compared to just 1 from the tech field (Cisco, which acquired Jasper Technologies earlier this year for $1.4B). GM and Unilever (which acquired Dollar Shave Club earlier this week) are among those acquirers from non-tech fields.


     
  • 1 billion: Apple sold its 1 billionth iPhone this week, according to the company. To put that number in perspective, the iPhone first went on sale on June 29, 2007. That means an average of 302,000 iPhones a day have been sold from then to present. The company also announced earnings this week, which showed it had seen revenue drop for the second quarter in a row. The cause? Slowing iPhone sales. 
     
  • $9.3B: This week, Oracle acquired NetSuite, a business-to-business cloud services company, for $9.3B. The public-to-public acquisition was expected to bolster Oracle's cloud push, but some questioned Oracle co-founder Larry Ellison's conflict of interest since he and family members own more than 40% of NetSuite.


     
  • $2.9B: The record revenue of Amazon's AWS cloud services division in Q2'16. 
     
  • $859M: The amount of money Alphabet invested on its non-Google businesses this last quarter, including moonshot-type businesses like self-driving cars and life sciences, as well as Google Fiber, and Nest smart home hardware. We discussed Alphabet's moves in self-driving cars in our recent auto tech webinar. Get the recording and slides here.
     
  • 114: The number of VC funds that rejected restaurant food delivery startup Take Eat Easy, which was seeking a third round of funding this year after scaling their operation to 20 cities and 350,000 customers after launching in Brussels in 2013. Take Eat Easy finally inked a deal with a corporate investor earlier this year, but the deal ultimately fell through and the startup announced it is winding down
     
  • 1.2%: The US economy only grew 1.2% in the last quarter, according to new data released today. Economists had expected 2.6% growth.
     
  • 62.9%: The US home ownership rate fell to 62.9% in the last quarter, the lowest it has been since 1965, according to new data. The causes are blamed on everything from renters who can’t afford to own to millennials who are less interested in owning property than past generations.
     
  • 51.5%: The percentage of customers who prefer boneless chicken wings to the real thing, according to publicly-traded restaurant chain Buffalo Wild Wings. Boneless chicken wings may be a hit with the wing-eating majority, but recently we detailed many fast-food fails in our list of the 101 worst corporate product flops.

Tweet of The Week

Here's what the team at CB Insights has been talking about.

Mosaic Momentum Alerts

These startups saw the biggest uptick in their Mosaic momentum scores in the last week. 

The CB Insights Mosaic algorithm is a National Science Foundation-backed score that tracks the health of private companies using public data.

 
1. Fluxx+210
Fluxx is a San Francisco-based technology company focused on innovation within the grants management ecosystem.


2. Metamarkets+190
Metamarkets is a SaaS platform that provides analytics solutions for programmatic marketing.


3. Jazz+150
Jazz, previously known as, The Resumator, is a recruiting platform.

4. SiSense+140
SiSense is a business intelligence software company offering solutions in business intelligence, reporting, and business analytics. 

5. CoreDial+140
CoreDial cloud software and services allow companies to sell, deliver, manage, and invoice cloud communication services.

6. Tracx+130
Tracx is a social enterprise platform. Investors include Edison Partners and Flybridge Capital Partners.

7. Anaqua+130 
Anaqua provides intellectual asset management software and maintenance services to patent and trademark holders worldwide.

8. Noom+120
Noom, formerly WorkSmart Labs, develops fitness programs for users of smartphone-powered devices.

9. EventBoard +120
EventBoard, by Ender Labs, is a cloud-based meeting room management and facilities analytics platform.


10. Swap.com+100
Swap.com, formerly Swaptree, is an online consignment store operating in the USA for buying, selling and swapping pre-owned items.
The Week's Top Deals
 
We tracked 444 deals totaling $2.8B in the last week. Here's the top 10. Run this search on CB Insights to see them all.
 
 
The cloud cybersecurity platform is based in Dallas, Texas, and raised from ABRY Partners, among others. The company was founded by Lance Crosby who sold SoftLayer, a cloud infrastructure startup, to IBM for $2B in 2013.
 
The South Korea-based company raised from Alibaba Group, with the intentions of legitimizing e-sports (including pushing it to the Olympic Games). Alibaba reportedly plans to build e-sports stadiums in China. $5.5M of the money will go toward the purse for an upcoming tournament.
 
The specialty insurance company is based in Richmond, Virginia. 
 
Part of Columbia Pacific Management, the Malaysia-based company operates hospitals in Southeast Asia and raised from Mitsui & Co.
 
The China-based educational robotics company joined the unicorn club by raising at a $1B valuation from CDH Investments, CITIC Securities International, and Goldstone Investment.
 
The cloud storage app targets consumer photo sharing and raised from Elevation Partners, Floodgate, Google Ventures, Kleiner Perkins Caufield & Byers, NTT DoCoMo Ventures, Square 1 Bank, and Western Digital Capital.
 
Focused on therapeutics for renal disease, the biopharmaceutical firm raised from Limulus Venture Partners, Longitude Capital, OrbiMed Advisors, Sibling Capital, and Vivo Capital.
 
The Culver City, California-based mobile gaming company raised from Elephant Partners, Evolution Media Partners, Greycroft Partners, Highland Capital Partners, Participant Media, Sands Capital, Take-Two Interactive, and TPG Growth.
 
The Leesburg, Virginia-based cybersecurity company raised from Bessemer Venture Partners and Paladin Capital Group.
 
The Washington, DC-based ed tech company raised from Advance Publications, Allen & Company, Bezos Expeditions, New Enterprise Associates, Rethink Education, Rethink Impact, Silicon Valley Bank, TomorrowVentures, and War Horse.
 
 
Most Popular Search

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