IoT funding in Q1'16. Hedge fund pullback. Race for AI.
CB Insights celebration
Beware of those bearing gifts

Hi there,

I'm hearing disturbing rumors that VCs are pawning off their 2nd-tier portfolio companies to corporate investors who are desperate for "innovation."

Actually, we're seeing this as our corporate clients use CB Insights to understand these offers. And honestly, some recent corporate investments clearly indicate that the strategy is working. 

Stay vigilant out there. 

(h/t Marc Andreessen who has heard many more disturbing rumors)


IoT breakdown

From consumer to industrial verticals, the Internet of Things is touching all types of business and use cases. We look into IoT funding trends, deal share, and most active investors from 2011 to 2016 year-to-date.

Terrible VC board members

The folks at Bessemer Venture Partners put together this handy summary of the 10 worst types of VC Board members.

Which one do you have?

Feeling sluggish

Some of the most active hedge funds in private tech are putting the brakes on new investments in the US. We look at firms including Tiger Global Management, Coatue Management, Valiant Capital Partners, and more and analyze their investment activity since 2011.

We're #1 - oh wait.

From 2004 to 2013, emerging markets lost $7.8 trillion due to illegal outflows.

The scale of the outflows is eye-popping. China, Russia, Mexico and India led the way.

The scramble for AI 

Corporate tech giants from Google, Apple, and Amazon to Facebook and Intel have snapped up more than 20 AI companies in the last three years. 

The Industry Standard

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

Washington Post. Elizabeth Dwoskin (@lizzadwoskin) reports on the newest hot job title to hit the Valley: Personality Engineer. Her Page 1 story quotes CB Insights data on virtual-assistant startups.

Bloomberg. Fintech startups threaten 250,000 jobs as Europe’s insurers cut costs to compete with emerging tech. Thoughtful piece by Oliver Suess (@OliverSuess) citing CB Insights' Insurtech funding data.

Folio. Greg Dool (@GregDool) refers to CB Insights research on St. Louis tech funding in this profile of Alive Magazine reinvesting in print.

I love you.


P.S. Dear FinTech startups - The private company track applications close in 5 days. Get in front of hundreds of buyers, investors and partners at The Future of FinTech Conference in NYC from June 8-10th.

Also, just 47 tickets left for the conference.


Funding to IoT startups rallies in Q1'16 to second-highest quarter yet

While deal count slipped to the lowest total in a year, funding dollars to Internet of Things startups jumped 31% compared to Q4'15. See the data.
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The pullback in hedge fund deals to US tech startups in two charts

If the current run-rate holds, new private tech investments by hedge funds active in private markets are set to drop over 50% in 2016 compared to the previous year. See the charts.
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The Race For AI: Google, Facebook, Amazon, Apple In A Rush To Grab Artificial Intelligence Startups

Over 60% of the AI companies acquired in the last 3 years had VC backing. There have been 4 major acquisitions already in 2016. See the M&A.
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The Blurb

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

How to choose your first VC. From looking for people who focus on early rounds to scoping out decisive investors, Charlie O'Donnell (@ceonyc) provides advice on what to look for when choosing your first VC.
This is Going to be Big

Losing money. Fred Wilson (@fredwilson) says that losing money is part of being an investor, and although it happens, there are some things you can do with the losses to drive up your performance.

Selection process. Jason Calacanis (@jason) shares insight on how first round sorting works for incubators like Y Combinator, 500 Startups, and Techstars.

Why entrepreneurs don't feel successful. Jess Ekstrom (@jess_ekstrom) says entrepreneurs don't recognize their milestones because once they hit one, they've opened a door to a new tier of entrepreneurs to compare themselves to.

Millennials don't actually want to job hop. Suneil Kamath (@suneilkamath) explains that most millennials don't like switching jobs constantly, rather they want to work for a company where they truly "fit."
LinkedIn Pulse

Raising venture capital. James Berkeley (@jamesberkeley) says knowing what VC firms want to see rather than what you want to show them is essential to build trust and to controlling the initial discussion.

Share the wealth. Groupon co-founder Andrew Mason (@andrewmason) is pushing a new equity model that would decrease the number of billionaires and increase the number of millionaires in Silicon Valley.

Disruption. Jon Westenberg (@jonwestenberg) says disruption is about experiences, not tech.

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