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Moneyball for startups. Public-private tech fundraising gap. Food delivery startups.
CB Insights celebration
The next 50 unicorns

Hi there,

First, thanks to the awesome Matt Wong (@mlcwong) for filling in for me last week. I was pretty bummed about the whole One Direction breakup so I appreciate Matt stepping in at my time of need.

Future 50 Unicorns & Moneyball for startups

Yesterday, the NY Times business cover story unveiled a list of 50 Future Unicorns. The list was created programmatically using Mosaic - an algorithm developed by CB Insights.



In simple terms, think of Mosaic as "Moneyball for Startups," or the modern business equivalent to the FICO score. 




We received $1.15M of funding from the National Science Foundation and are happy to finally take the covers off of what we've been working on. More on Mosaic here and how it predicts private company health.

Private funding way greater than IPO funding

We dug into the amount raised in the private markets as part of "private IPOs" versus the public markets. The gap is gargantuan.

Check out these 3 charts the show the disparity in public vs private market fundraising.




So unit economics matter?

The stock market swings have suddenly made everyone in tech and VC an expert on public equities. The biggest "revelation" that has come from the current market softness is that private startup companies might eventually have to build real businesses and will not be able to burn private investor money indefinitely.

Shocking.

My favorite one-liner about Silicon Valley seems appropriate here.




In a great quarter for VC, Germany doesn't shine

Our Q2 global venture capital report highlighted strength in startup investing globally but one recent bright spot, Germany, took a bit of a break in Q2 with both deals and dollars way down vs Q1.



BTW, another recent favorite joke. I just deleted all my German friends from my mobile phone's address book. It is now Hans free.

Not sure who came up with this but if you know, let me know, and will credit them in the next newsletter.


My wife thinks I'm an idiot

The real reason Matt was filling in for me last week was the birth of my second child. When figuring out the name, we were hoping for a 3 letter name that began with A (yes - very specific I know). And for a while, I was fighting for the name Aum (more commonly spelled Om).

While pitching the name to my wife, I detailed the Sanskrit and spiritual significance of the word.  

Because I'm clearly bad at sales, I also added that Aum also stands for Assets Under Management which is particularly appropriate given CB Insights' business.

Needless to say, his name is not Aum.



Land & over-expand - Postmates, DoorDash problems ahead?

Grocery delivery company Good Eggs recently retreated from several markets it had opened up in to focus on the San Francisco / Bay Area.

We analyzed the # of markets that food delivery companies were operating in to see which other food delivery startups might be overextended and where a similar retreat might be coming


 

Grab your ankles

Devin Matthews of tech buyout firm ParkerGale had one of the more provocative arguments why Bill Gurley and top-tier VCs talk about market overheating.

They're acting out of self interest.

Devin says many of their successes are basically locked in. Downward pressure would actually make it easier for them to deploy capital and make investments at more accessible valuations.


 

I love you - truly, madly, deeply.

Anand
@asanwal

P.S. Learn more about Mosaic - moneyball for startups.

Networking on steroids: Using CB Insights to build investor contacts at scale

Lesson 1 of the CB Insights Quantitative Venture Capital Class explains how to use data to expand your network and its value. See how you can use data to increase the size of your network.
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CB Insights Top Deal Searches

CB Insights users can query our database in powerful ways. See a few below or sign up:

 


Germany VC overview: deal activity falls off, investment at $400M 

A look at the financing activity, top cities, top investors, and most well-funded companies in Germany. Read about Germany's VC activity.
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Food delivery startups at risk of overextending themselves

After Good Eggs scaled back operations to just one city, how many other food-delivery startups might be overextended? See the geographic reach of 13 of the top food delivery startups.
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The massive gap between public and private tech fundraising

The public-private tech disconnect means that there have been 5x more "private IPOs" in the first half of 2015 than actual VC-backed tech IPOs. See the gap in overall public-private tech fundraising.
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The Blurb

 A curated mix of articles on tech, media, what's next, and recent news.
 
3 reasons the global stock market meltdown won't hurt average Americans. The wealth of most Americans is tied to their homes, not stocks or mutual funds.
Fortune

Small food businesses tap into changing appetites. New food companies are giving the big food brands a run for the money as shoppers reach for small-batch products.
NY Times

New ways for patients to get a second opinion. Online services from established medical centers and independent businesses.
The Wall Street Journal

Millennials don't vote, but they do care. The emerging generation cares about civic duty. They just show it in their own way.
The Atlantic
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