The Best Research Reports of Q2 2015

The Best Research Reports of Q2 2015

THE BEST REPORTS OF 2014

Table of Contents Research Brief

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Disrupting The Auto Industry: These Are The Startups Unbundling The Car

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Disrupting Food? Analyzing the Booming Food Tech Startup Landscape

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The Periodic Table Of Unicorns

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Health On-Demand: 42 Mobile Startups Disrupting Healthcare

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Disrupting Honeywell: The Startups Unbundling Honeywell in the Smart Home

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What Kind of Fin Tech Startups is JP Morgan Chase Investing In?

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Disrupting European Banking: The FinTech Startups That Are Unbundling HSBC, Santander, and BNP

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Millennial Personal Finance – The Fin Tech Startups Targeting Millennials

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Disrupting The Auto Industry: These Are The Startups Unbundling The Car From on-demand repair to vehicle-to-vehicle communication, the automotive industry is changing quickly. These are some of the companies trying to improve cars and the way we drive. (6/5/2015)

Cars are a new frontier for tech startups, now that other internet connected-device markets are more mature. The market opportunity is significant since 65 million passenger cars were sold globally in 2014. While many companies are working to connect cars to the cloud, other startups are trying to utilize that data to improve 2

driver safety, build navigation systems, or provide more accurately priced insurance plans. Using CB Insights data, we identified companies that are working to improve different services and products associated with the auto industry. Emerging technologies include autonomous car software, heads-up driving displays that improve driver safety, and using real-time traffic data to enrich navigation. Companies associated with more traditional auto components are also raising funds. EcoMotors and Pinnacle Engines are building more efficient engines, while Boston-Power and Sakti3 are developing car-battery technology. ___________________________________________________________________________ The report above was created using data from CB Insights private company database. You can start your 30-day free trial by clicking here or the button below.

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Disrupting Food? Analyzing the Booming Food Tech Startup Landscape A host of food tech companies are making it easier for us to stuff our faces. Here's how they stack up. (4/30/2015)

US Food Tech companies are on fire, raising over $1B in 2014. And the majority of these companies are looking to feed consumers in a faster/more efficient way. This has led investors like Jason Calacanis to make bold statements like “The future of restaurants is no restaurant”. 4

With this in mind, we plotted how different spaces ranging from traditional restaurants to prepared meal delivery to chefs on-demand that are all competing to feed consumers relate to each other on the premise of convenience and time to meal.  

Time to meal - this takes into account the amount of time it takes from the action of deciding you want food, to having a complete meal Convenience - this takes into account things like effort (leaving your house vs. staying in) and skill required, among others.

Meal replacement startups like Soylent, which raised $20M at a $100M valuation in January to increase production and keep up with demand, are in the top right quadrant, showing a combination of convenience and speed. Alternatively, traditional restaurants like the multi-billion dollar Darden Restaurants (which operates Olive Garden, Longhorn Steakhouse, and others) and fast casual concepts like Sweetgreen are in the top left quadrant given lower convenience due to needing to leave your home, but a relatively short time to meal.

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The Periodic Table Of Unicorns There are currently 111 private companies in the world worth $1B or more. For live Unicorn List updates click here. (6/16/2015)

The “unicorn club” of private companies worth $1B and above has become way less exclusive, and there are now currently 111 unicorns with a cumulative valuation above $400B. We put together a periodic table of unicorns to spotlight the sectors producing billion-dollar companies. E-commerce has the largest number of unicorns, with 25 companies in total. Ecommerce has also seen an explosion of foreign unicorns, including Meituan, Flipkart, and Lazada among others. Fintech and Internet Software & Services were ranked second with 14 unicorns each followed closely by Big Data (applications and infrastructure) which had 13. Despite the proliferation of on-demand companies, there have so far only been 6 which have seen billion-dollar valuations, half of which are outside the US.

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Sequoia and Accel are the top investors in unicorns, along with several non-VC investors like Goldman Sachs, T. Rowe Price, and Tiger Global Management. ___________________________________________________________________________ The report above was created using data from CB Insights private company database. You can start your 30-day free trial by clicking here or the button below.

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Health On-Demand: 42 Mobile Startups Disrupting Healthcare These mobile-centric digital-health startups have collectively raised over $1.3B. Patients can now text doctors, request house visits, and consult therapists — all from their phones. (6/19/2015)

The multi-trillion dollar healthcare industry is getting a makeover from mobile apps. Many of these startups are bringing the on-demand phenomenon to healthcare, providing app-powered services such as medical-marijuana delivery and therapist sessions. Teladoc, a telemedicine provider that recently filed for an IPO, is backed by investors including Kleiner Perkins and Trident Capital. Teladoc handled nearly

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299,000 patient consultations in 2014. Meanwhile, startups such as First Opinion allow consumers to text questions to doctors 24/7, and Pager and Medicast extend into on-demand house visits. Other sets of companies focus on diabetes-management tools and fertility tracking. The graphic below breaks down a selection of startups offering or planning to offer mobile health services. In aggregate, they have raised $1.3B across 114 deals. Below is a full list of the companies in the graphic broken down by target area. If there are other emerging companies that you think should be highlighted, let us know in the comments. Note: Mobile fitness and general health-tracking apps were not included.

The Rise of Mobile Healthcare

Company

Select Investors

Category

Glow

Founders Fund, Andreessen Horowitz, Formation 8

Fertility & Pregnancy Tracking

Bellabeat

SV Angel, Universal Music Groupe, CrunchFund, Promus Ventures

Fertility & Pregnancy Tracking

Clue

Hoxton Ventures, Joanne Wilson, Groupe Arnault, Brigitte Mohn

Fertility & Pregnancy Tracking

Ovuline

Lightbank, Techstars Ventures, LionBird, BlueCross BlueShield Venture Partners

Fertility & Pregnancy Tracking

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Alt12 Apps

InterWest Partners, Felicis Ventures

Fertility & Pregnancy Tracking

Kindara

SOSventures, Drummond Road Capital

Fertility & Pregnancy Tracking

TalkSpace

Spark Capital, Softbank Capital, Metamorphic Ventures

On-Demand Therapy

Thrive Network

Mayfield Fund, SoftTech VC

On-Demand Therapy

PillPack

Atlas Venture, Accel Partners, CRV, Menlo Ventures, Sherpa Ventures, Box Group

Pharmacy Delivery

Pager

Lux Capital, Montage Ventures, Goodwater Capital, Mayfield Fund, Summation Health Ventures

On-Demand House Visits

Medicast

-

On-Demand House Visits

Heal

Paul Jacobs, Lionel Ritchie, March Capital, Jamie McCourt

On-Demand House Visits

Dose

-

On-Demand House Visits

Go2Nurse

-

On-Demand House Visits

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CurbsideCare

-

On-Demand House Visits

Teladoc

Trident Capital, HLM Venture Partners, Cardinal Partners, Kleiner Perkins, New Capital Partners

Telemedicine / Remote Doctors & Health Assistance

Doctor On Demand

Venrock, Google Ventures, Shasta Ventures, Andreessen Horowitz, Lerer Hippeau Ventures

Telemedicine / Remote Doctors & Health Assistance

American Well

Tava Pharmaceuticals, Thomas Spiegel Family Foundation

Telemedicine / Remote Doctors & Health Assistance

MDLive

Heritage Group, Kayne Anderson Capital Advisors, Sentara Healthcare

Telemedicine / Remote Doctors & Health Assistance

TouchCare

Mosaic Health Solutions

Telemedicine / Remote Doctors & Health Assistance

Spruce Health

Kleiner Perkins, Baseline Ventures, Google Ventures, Cowboy Ventures

Telemedicine / Remote Doctors &

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Health Assistance

PingMD

Lambda Funds

Telemedicine / Remote Doctors & Health Assistance

Sherpaa Health

First Round Capital, SV Angel, Softbank Capital, O’Reilly AlphaTech Ventures, Draper Associates

Telemedicine / Remote Doctors & Health Assistance

Maven Clinic

Great Oaks VC, Box Group, Matt Mullenweg, F Cubed

Telemedicine / Remote Doctors & Health Assistance

HealthTap

Mayfield Fund, Khosla Ventures, Mohr Davidow Ventures, Innovation Endeavors

Telemedicine / Remote Doctors & Health Assistance

Better

Mayo Clinic, The Social+Capital Partnership

Telemedicine / Remote Doctors & Health Assistance

ZocDoc

Founders Fund, Khosla Ventures, Bezos Expeditions, Goldman Sachs, Digital Sky Technologies

Appointment Scheduling &

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Prep / Doctor Discovery

BetterDoctor

Commerce Ventures, Kima Ventures, SoftTech VC, NEA, Lifeline Ventures, 500 Startups

Appointment Scheduling & Prep / Doctor Discovery

Practice Fusion(Patient Fusion)

Salesforce Ventures, Felicis Ventures, Morgenthaler Ventures, Founders Fund, Kleiner Perkins, SV Angel

Appointment Scheduling & Prep / Doctor Discovery

One Medical

Oak Investment Partners, Benchmark, DAG Ventures, Maverick Capital, Google Ventures

Appointment Scheduling & Prep / Doctor Discovery

Gamgee

Vinod Khosla

Appointment Scheduling & Prep / Doctor Discovery

Zesty

Mangrove Capital Partners, Qualcomm Ventures, Innovation Capital, ABRT Venture Fund, TA Venture

Appointment Scheduling & Prep / Doctor Discovery

DocPlanner

Point Nine Capital, Piton Capital, RTAventures, Fabrice Grinda

Appointment Scheduling & Prep / Doctor Discovery

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Mango Health

Kleiner Perkins, First Round Capital

Adherence

MediSafe

Qualcomm Ventures, Pitango VC, TriVentures, Lool Ventures

Adherence

Glooko

Canaan Partners, Medtronic, Samsung Ventures, The Social+Capital Partnership

Diabetes Management

One Drop

RRE Ventures, Capital Factory, Neu VC, Box Group, Launch Fund

Diabetes Management

mySugr

Roche Venture Fund, iSeed Ventures

Diabetes Management

Eaze Solutions

Doll Capital Management, 500 Startups, Fresh VC, Casa Verde Capital

Medical Marijuana Delivery

Meadow Care

Y Combinator

Medical Marijuana Delivery

Nugg

-

Medical Marijuana Delivery

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Disrupting Honeywell: The Startups Unbundling Honeywell in the Smart Home From August to Canary to Simplisafe, a host of home automation startups are unbundling $81B conglomerate Honeywell in the home. (4/8/2015)

The promise of the fully connected smart home is arriving fast driven by a growing number of ‘smart home’ startups – companies offering services for your home ranging from home security, temperature management and lighting controls. These smart home companies are a unique combination of big data, hardware design and internet and mobile software. Many are also considered Internet of Things companies.

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One way to think about the rise of smart home startups attacking different verticals is the ‘unbundling’ of one of the largest players in home consumer products, Honeywell (NYSE: HON, Mkt Cap: $81.2B). Honeywell’s established product line for the home spans from thermostats to door chimes to fans & heaters. As tech invades home solutions, Honeywell’s product portfolio is getting attacked by a number of startups. The graphic below shows the home product section of Honeywell’s own website and the startups attacking it ranging from home monitoring and security firms including Canary, Simplisafe and Leeo, smart thermostats like Netatmo and Ecobee and smart locks including August, Lockitron and Ring. Venture investors are betting that startups can successfully take on titans in the home including Philips and Honeywell by attacking them at a product/service level. According to CB Insights data, smart home startups took $454M in investor funding in 2014, an increase of 57% on a year-over-year basis. Among the largest deals in the space over the past six months include a $38M Series B from Bessemer Venture Partners, Comcast Ventures and Qualcomm Ventures to August and a $31.8M Series B to connected home software platform Zonoff from investors including Grotech Ventures and Valhalla Partners.

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What Kind of Fin Tech Startups is JP Morgan Chase Investing In? JP Morgan's Jamie Dimon has warned that Silicon Valley is coming. His firm is meeting the challenge head-on investing in many Fin Tech startups in areas ranging from lending tech to robo-advisors. (4/16/2015) In his annual shareholder letter, JPMorgan Chase CEO Jamie Dimon sounded the alarm on a wave of Fin Tech startup competitors coming after traditional banking. While Dimon’s letter implied future partnerships with emerging Fin Tech startups, the reality is that JPMorgan has already made a number of investment partnerships to date. So using CB Insights Business Social Graph, we analyzed where JPMorgan was looking in the FinTech space (as well as the areas it has avoided). Fin Tech startups are not attacking all of JP Morgan Chase head on, of course, but rather the individual products and services of big banks e.g. small business loans, wealth management, etc. The graphic below visualizes how real the threat to traditional banks are from a number of emerging specialist startups looking to ‘unbundle’ them.

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When we look at JPM’s investments across all sectors, they have been diverse ranging from eCommerce firms such as Zalora to co-working space WeWork to consumer AI racing game Anki. It’s worth noting that JPM is investing in some startups as a financial investor primarily and some which are more strategic to their core business. The Business Social Graph below highlights the investments and credit facilities JPMorgan has made since 2009.

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But when we isolate for JPM’s FinTech moves, a few names stand out. Specifically, JPM invested in online broker Motif Investing‘s $35M Series D and mobile payments unicorn Square‘s Series B back in 2011. The efficiency of lending upstarts was mentioned by Dimon in his letter, and JPM has made a couple moves in the area. Most recently, JPM participated in a $165M growth round to Prosper, valuing the P2P lending marketplace at $1.9B, and a $650M credit facility to SMB loan company CAN Capital.

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One area where JPMorgan has been noticeably absent on the investment front is digital currency/bitcoin or the blockchain. While bitcoin funding has risen to record highs, JPM has not made an investment in the space, which Dimon has publicly called ‘a terrible store of value.’ The visualization below highlights JPM’s Fin Tech moves and the investment themes they do or don’t fall into.

___________________________________________________________________________ The report above was created using data from CB Insights private company database. You can start your 30-day free trial by clicking here or the button below.

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Disrupting European Banking: The FinTech Startups That Are Unbundling HSBC, Santander, and BNP European Banks are under attack from a number of emerging specialist FinTech startups. Here are some of the European FinTech startups unbundling banking. (4/17/2015)

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We previously dug into the US companies that were disrupting banking with a look at the startups attacking the likes of Wells Fargo, Bank of America and Citi. While the US is a major market in the FinTech landscape, the UK, and more broadly, Europe has proven to be another key market in the global boom in FinTech. With this in mind, we looked at the European FinTech companies attacking bank services ranging from lending companies like Borro, Zopa, and Auxmoney to wealth management companies like Nutmeg and eToro to money transfer companies like Azimo, WorldRemit, and Transferwise and many other areas. As we detailed in our previous analysis of companies attacking FedEx and US banks, these emerging startups that are attacking top European banks like HSBC, Santander, and BNP Paribas are not attacking them head on, but instead are attacking them across individual products and services (hence the term “unbundling”). As we’ve previously asked, could these companies out-innovate banks and inflict death by a thousand cuts?

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Millennial Personal Finance – The Fin Tech Startups Targeting Millennials Fin Tech startups targeting the millennial demographic have raised over $2.29B across 126 deals. They range from 'robo-advisors' offering lowcost alternatives to brokerages to lending firms innovating in credit risk to stock-picking and automated savings apps. (5/24/2015) Spanning a cohort born between 1980 to 2000, millennials broadly make up one of the largest generations in history (bigger than the baby boom generation). Millennials are also investing, lending and sharing money much differently than their parents, and they are assisted by a growing set of tech-driven tools to do so. The changing ways in how millennials manage their money is top of mind for many of the largest financial institutions in the world. In February, Goldman Sachs released an infographic on how millennial habits in health, marriage, housing and more are impacting the economy.

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Now, a host of Fin Tech startups, and the investors backing them, are banking on millennials as a key demographic for their success. Fin Tech startups prominent in the millennial demographic range from ‘robo-advisors’ offering low-cost alternatives to brokerages to lending firms innovating in credit risk to stock-picking and automated savings apps. Many of the Fin Tech startups are leveraging existing technologies already popular among young adults such as social networks and mobile messaging. Project crowdfunding sites GoFundMe and Andreessen Horowitz-backed Tilt, for example, mirror or take advantage of social networks and are largely popular among college audiences. Google Ventures and General Catalyst-backed HelloDigit transfers money directly via text message. The graphic below breaks down the set of Fin Tech companies appealing to the millennial generation including Robinhood, Acorns, Wealthfront, Earnest and more. In aggregate, millennial Fin Tech startups below have raised over $2.29B across 126 deals.

Fin Tech for Millennials

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Company

Select Investors

Category

Tilt

Doll Capital Management, Felicis Ventures, Andreessen Horowitz

Crowdfunding

GoFundMe

Bootstrapped

Crowdfunding

Venmo (Acqured by Braintree)

RRE Ventures, Accel Partners, Greycroft Partners, Lerer Hippeau Ventures

Payments

Square

Sequoia Capital, Khosla Ventures, JPMorgan Chase

Payments

Coin

SoftTech VC, Spark Capital, Redpoint Ventures

Connected Card

Stratos

Western Technolog Investment, Hyde Park VP, Resonant Venture Partners

Connected Card

Moven

Artemis Group, Ratpor Ventures, SBT Venture Capital, Route 66 Ventures

Mobile Banking

Osper

Horizons Ventures, Index Ventures

Mobile Banking

Level Money (Acquired by Capital One)

Kleiner Perkins Caufield & Byers

Savings & Finances Tracking

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Hello Digit

Google Ventures, Baseline Ventures, Freestyle Capital, General Catalyst Partners

Savings & Finances Tracking

Acorns

JAM Equity Partners, Greycroft Partners, e.ventures

Savings & Finances Tracking

Even

Khosla Ventures, Red Swan Ventures, Rothenberg Ventures, Homebrew, Slow Ventures

Savings & Finances Tracking

Qapital

Northzone Ventures

Savings & Finances Tracking

Homeslice

Matchfire

Savings & Finances Tracking

Loyal3

DNS Capital

Personal Investing

Motif Investing

Norwest Venture Partners, Foundation Capital, Ignition Capital, Goldman Sachs

Personal Investing

Robinhood

Google Ventures, Index Ventures, Andreessen Horowitz, Ribbit Capital, NEA

Personal Investing

Kapitall

Bendigo Partners, Linden Venture Fund

Personal Investing

Tip’d Off

Raj Parekh, Bill Crane, Shaun Coleman

Personal Investing

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DriveWealth

Route 66 Ventures

Personal Investing

Openfolio

FinTech Collective

Personal Investing

eToro

Spark Capital, BRM Group, Social Leverage

Personal Investing

Stox

SingulariTeam

Personal Investing

TradeHero

Kleiner Perkins Caufield & Byers, IPV Capital

Personal Investing

Wealthfront

DAG Ventures, Index Ventures, Greylock Partners, The Social+Capital Partnership

Wealth Management

Betterment

Bessemer Venture Partners, Athemis Group, Menlo Ventures

Wealth Management

LearnVest (Acquired by Northwestern Mutual)

Accel Partners, Circle Financial, Rose Tech Ventures

Wealth Management

SigFig

Doll Capital Management, Union Square Ventures, Bain Capital Ventures

Wealth Management

Personal Capital

Institutional Venture Partners, Venrock, Crosslink Capital

Wealth Management

WiseBanyan

VegasTech Fund

Wealth Management

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Rebalance IRA

-

Wealth Management

FutureAdvisor

Sequoia Capital, Canvas Venture Fund

Wealth Management

Affirm

Lightspeed Venture Partners, Khosla Ventures, Spark Capital, Andreessen Horowitz

Loans & Credit Risk

Earnest

Atlas Venture, First Round Capital, Maveron, Andreessen Horowitz, Collaborative Fund

Loans & Credit Risk

Tuition.io

Mohr Davidow Ventures, Neu Venture Capital, Fenway Summer, Rothenberg Ventures, MESA+

Loans & Credit Risk

Valore

Flybridge Capital Partners, Atlas Venture, North Hill Ventures

Loans & Credit Risk

Pave

-

Loans & Credit Risk

Upstart Network

Founders Fund, Khosla Ventures, First Round Capital, Google Ventures, Kleiner Perkins, NEA

Loans & Credit Risk

SoFi

Innovation Endeavors, Renren, Baseline Ventures, Doll Capital Management

Loans & Credit Risk

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Vouch Financial

Greylock Partners, First Round Capital, IDG Ventures USA, Core Innovation Capital

Loans & Credit Risk

Vested Finance

Sandleigh Ventures

Loans & Credit Risk

CommonBond

The Social+Capital Partnership, Tribeca Venture Partners, Nelnetsf

Loans & Credit Risk

___________________________________________________________________________ The report above was created using data from CB Insights private company database. You can start your 30-day free trial by clicking here or the button below.

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