Q1 2016
VentureDeal Quarterly Venture Capital Report
Internet - Digital Media - ECommerce - Software
During the first quarter of 2016, 540 companies in the Internet, Digital Media,
eCommerce and Software sectors raised $8.5 billion in venture capital funding in
the aggregate, a decrease of 14% in total funding amounts versus Q3 2015 and a 10%
decrease in the number of companies funded.
Internet
Internet sector company fundings continued their previous quarterly decrease by
registering a 36% reduction in dollar volume. The sector received $2.1 billion in
venture capital funding during the quarter, allocated among 178 companies – a decrease
in the number of companies funded by 9% vs. Q3 2015.
Virginia-based Snagajob
raised a growth round of $100 million from venture capital and private equity investors.
The company operates a website and service that is dedicated to part time and full-time
hourly oriented employment opportunities. Snagajob said that it would use the proceeds
to expand its product offerings and fund select acquisitions.
Internet Funding History - to 1st Quarter 2016
Digital Media
Digital Media funding reversed its previous quarterly result of aggregate funding
increases. Digital Media companies for the purposes of VentureDeal's definition
are generally either video/casual game developers or online advertising networks.
Total funding decreased by 37% to $736 million, with 98 companies being funded,
an increase of 20% in companies funded versus Q3 2015.
New York-based Moat
raised one of the largest funding rounds of the sector during the period, receiving
$50 million from growth stage investor
Insight Venture Partners. Moat has developed the capability
to provide display advertisers with intelligence on how users are interacting with
their display ads and where they move their mouse pointers over the ads. The company
said it planned to double staff in 2016 and continue to build out its technology
offerings.
In the video space, Replay Technologies received $13.5 million in Series
B equity capital from corporate investor
Deutsche Telekom Strategic Investments.
The company said it would use the new capital to support its expansion into more
sporting events and other types of live entertainment. Replay was subsequently acquired
for an undisclosed sum by Intel.
Digital Media Funding History - to 1st Quarter 2016
ECommerce
The ECommerce sector experienced increased quarterly funding activity, with 33 companies
receiving a total of $611 million in funding, representing a 73% increase in financing
amounts versus Q3 2015’s tally.
Boston, Massachusetts-based Toast netted $30 million in its Series B funding round
from Bessemer Venture
Partners, strategic investor
Google Capital
and others. The company has developed what it calls an “easy to use restaurant POS
system with 24/7 phone and email support.” It said the funds would be “used for
hiring talent, updating products and marketing.”
At the seed stage, Palo Alto, California-based
Salesfloor netted $3 million in equity
investment from venture capital and strategic investors led by Canada-based
BDC Capital. Salesfloor has developed tools
to connect sales associates with shoppers online and in-store. The company said
it would use the funding to “penetrate global markets and expand product development
for new features and industry-specific modules.”
ECommerce Funding History - to 1st Quarter 2016
Software
Software company fundings represented the largest sector of the grouping, raising
$3.4 billion between 255 companies. This activity represented a quarterly decrease
of 11% in total funding amounts but a 6% increase in the number of companies funded.
American Fork, Utah-based Domo raised $131 million in equity capital during the
quarter from late stage private equity firms. Domo provides business intelligence
visualization dashboards to enterprises that simplify large data sets and promises
to improve decision-making. Proceeds purposes from the financing were not disclosed
by the company.
At the seed stage, RevUp landed $5 million from a large syndicate of investors Including
Greylock Partners
(Reid Hoffman) and other venture capital and corporate investors. The academic and
non-profit software developer said it would use the funding to grow its “engineering,
data analysis and sales teams in order to further expand into the academic and nonprofit
areas.”
Software Funding History - to 1st Quarter 2016
Table 1
Venture Capital Funding - 1st Quarter 2016
|
Industry
|
Total
Disclosed Funding
|
% Change
Vs. Prior
Quarter
|
Number of
Companies Funded
|
% Change vs. Prior Quarter
|
|
Internet
|
$2.1 billion
|
- 36 %
|
178
|
- 9 %
|
|
Digital Media
|
$736 million
|
- 37 %
|
98
|
+ 20 %
|
|
ECommerce
|
$611 million
|
+ 73 %
|
33
|
+ 43 %
|
|
Software
|
$3.4 billion
|
- 11 %
|
255
|
+ 6 %
|
|
Total
|
$6.8 billion
|
- 20 %
|
564
|
+ 4 %
|
This
material has been prepared and issued by VentureDeal. The information
contained herein is based on current information that VentureDeal considers
reliable, but we make no representation that it is accurate in the future or
complete, and it should not be relied upon as such. It is provided with the
understanding that VentureDeal is not acting in a fiduciary capacity.