HR corporates' investment activity. AI financing activity. Cybersecurity startups to watch.

Vice squad

Hi there,

Tomorrow, the 45th President of the United States will take office.

It will be a historic day.

After the election, I got a lot of questions during our monthly townhall about what the election means for us? Here is the memo I wrote about what the election means for CB Insights.

Disruption. Innovation. Synergy.

The most innovative economies in the world are led by South Korea and Sweden. It's an interesting analysis although I'm always a bit skeptical of these analyses given they don't typically normalize for size of economy and use weird measures like "concentration of high-tech public companies." That said, still interesting.

Placing HR bets

We analyzed the investment activity of 20 HR corporations, including through their venture arms or separately managed funds. Concur Technologies is the most active investor on our list with 16 investments in 12 unique companies.

We like to party

The next CB Insights conference will likely be in Laos, Honduras or Congo as that's where it seems you can get a "basket of vice" for crazy cheap.

Until then, join us in NYC at Lincoln Center at The Future of Fintech where we can promise you'll overdose on graphs.

A great post-mortem

Slava Akhmechet, the founder of RethinkDB — a MongoDB competitor — penned a great and honest post-mortem entitled "Why RethinkDB failed." 

What's great about it is the detail which Slava dives into as well as his candor.  In our compilation of 178 startup failure post-mortems, there is a lot of "woe is me" with founders blaming their demise on the "financing market" or being too early or customers not getting it.  

In Slava's writeup, there is none of that.  

It's a very honest post-mortem which is worth a read. (See Blurb)

AI highs

We tracked funding to private AI companies globally over the past five years, and looked at how deal share breaks down by geography. Nearly 62% of the deals in 2016 went to startups in the US, followed by 6.5% to UK-based startups.

Old people watch a cr^pload of TV

I'm defining old as 50+ here based on graphic below.

I know in Silicon Valley, 30 is old, so apologies to my Valley friends.

Security notice

We identified 12 startups that are working in cyber insurance, risk scoring, and threat remediation. The companies on our list all obtained funding since 2016.

For a full list of cybersecurity startups, including the ones listed in the brief above, check out the Cybersecurity Collection on the CB Insights platform.

Vroom vroom

We analyzed how financing trends in the auto tech space evolved through 2016. With more than $1B invested across 87 deals last year, 2016 represented a 30% rise in annual deal activity while funding skyrocketed 91%, both record highs.


Join 200k+ marketers on eMarketer Daily for your down-low, daily briefing on the latest digital marketing, advertising, and media trends. Stay ahead of the curve with reputable, industry-standard research right in your inbox. Every morning. Rise and shine.

The Industry Standard

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

Boston Globe. Adam Vaccaro (@adamtvaccaro) writes about drone software startup Neurala's latest funding round and cites data found in the CB Insights and PwC MoneyTree Report.

City A.M. Nell Mackenzie writes about active sovereign wealth funds and the French tech scene and refers to CB Insights research on the subject.

Crowdfund Insider. JD Alois reports on US VC-backed deals in Q4'16 and references the CB Insights and PwC MoneyTree Report.

Love you always.


P.S. For our upcoming Future of Fintech conference this June, we've created a spot for you to nominate a speaker (or yourself).

Seed/Angel Watch
Here's a look at select early-stage deals from the past week.

1. raises a second $5.89M tranche of a seed VC round
The Germany-based fintech startup raised from DN Capital, Fly Ventures, German Startups Group, La Famiglia, Point Nine Capital, and Redalpine Venture Partners.

2. TellusLabs raises $3.1M seed VC
TellusLabs combines satellite imagery with a machine learning platform to answer economic and environmental questions.

3. Hull raises $2.88M seed VC
Hull is a digital marketing platform that helps engage and profile customers.

4. Tokyo Smoke raises $2.3M seed VC
Tokyo Smoke is a premium cannabis-oriented lifestyle brand. The company raised from Chuck Rifici, Globalive Capital, and W. Brett Wilson.

5. GovInvest raises $2.17M seed VC
GovInvest helps governments visualize and understand actuarial data. The company raised from GovTech fund.

Where big HR corporates are placing their bets

Concur, Infor, and Workday had the most combined acquisitions and investments in unique companies. Read about it.
Tweet this 

2016 AI recap: startups see record high in deals and funding

Non-US deal share has gradually increased, from 21% in 2012, to nearly 40% in 2016. See the data.
Tweet this

12 tech startups transforming cyber insurance, risk scoring, and threat remediation

Top investors in these companies include New Enterprise Associates, Sequoia Capital, and Index Ventures. See the list.
Tweet this

Auto tech startup financing tops $1 billion in 2016

Deals and dollars both rocketed to annual records as investors scramble to claim their stakes in the mobility gold rush. See the data.
Tweet this

The Blurb

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

Shutting down. Slava Akhmechet (@spakhm) shares what went wrong and why RethinkDB failed.

The end of traffic. John Zimmer (@johnzimmer) says the way to end traffic is to create smart lanes everywhere, or lanes that are accessible to vehicles with three or more people.

The great unbundling. Ben Thompson (@stratechery) on the impact of the internet and how it differs considerably depending on what part of the media industry you look at.

Lessons from Real Housewives of New Jersey. Jeremy Liew (@jeremysliew) shares insights from an interview with Andy Cohen of Bravo on social media stars and the social media appeal.
Lightspeed Venture Partners

Culture and/of design. A podcast covering all things design as well as on why startups may have the ultimate design advantage.

Flat headcount. Brad Feld (@bfeld) shares his thoughts on why there will be less headcount growth in 2017 than in 2016.
Feld Thoughts

If you loved this newsletter, send it to a friend.
If you hated it, send it to an enemy.
All the data in this newsletter comes from CB Insights. Join NEA, Cisco & hundreds of other clients and get access to the industry's best private company data.

Sign up for access.
Copyright © 2017 CB Information Services, All rights reserved.